Slide 1: Full Year Results Presentation
Full Year Results Presentation Full year ended 30 June 2024
Slide 2: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer The material in this presentation has been prepared by CAR Group Limited (ASX: CAR) ABN 91 074 444 018 (“CAR Group") and is general background information about CAR Group’s activities current as at the date of this presentation. The information is given
Slide 3: Agenda
Agenda 1 2 3 4 5 FY24 Financial Operating Strategy Appendix Highlights Performance Segments Update Page 4 - 20 21 - 26 27 - 32 33 - 39 40 - 45 3
Slide 4: FY24 Highlights
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Slide 5: Financial Performance
Financial Performance Excellent operating and financial performance with double digit revenue and earnings growth in all key markets Proforma1 Adjusted2 Reported Consolidation of acquisitions in both periods Actual ownership excluding abnormal items In accordance with IFRS Revenue 17% Revenue Revenu
Slide 6: Operational Highlights
Operational Highlights Excellent operational metrics reflect the strength of our global marketplaces 2.6 million 49 thousand 18 billion Vehicles online1 Subscribed dealers2 Page views3 1.3 billion 48 million 22 million Unique audience Total sessions4 Dealer leads delivered6 per month5 All arrows sho
Slide 7: Increased Diversification in Attractive Markets
Increased Diversification in Attractive Markets Revenue Contribution Australia North America Latin America Asia Investments 2% 6% 10% 11% 16% 17% 41% 72% 25% carsales.com ltd in FY19 CAR Group in FY24 7
Slide 8: Our Global Portfolio Of Retail Brands
Our Global Portfolio Of Retail Brands Market Leading Positions in Large Addressable Markets $2.6 billion $8.4 billion 1 $2.5 billion $2.0 billion Refer to slide 45 for Total Addressable Market (TAM) calculation methodology. North America TAM re-stated to include private and media. Brazil and South K
Slide 9: CAR Group Strategy
CAR Group Strategy Our Purpose To make buying and selling a great experience Our Vision To create #1 digital marketplaces for vehicles around the world Our Focus areas Building seamless Investing in new digital experiences growth opportunities Our Drivers People Sustainable Growth Investing in attra
Slide 10: Delivering Excellent Returns For Shareholders
Delivering Excellent Returns For Shareholders Organic growth momentum complemented by accretive global acquisitions Adjusted Earnings per Share (cents)1 16% CAGR 91.3 7% CAGR 78.1 66.5 58.4 53.6 50.6 FY19 FY20 FY21 FY22 FY23 FY24 (1) In accordance with AASB 133, historical EPS has been restated base
Slide 11: Recap On First Year Of Majority Ownership
Recap On First Year Of Majority Ownership Substantial market share gains1 Market share of 2.2 unique visitors times webmotors Revenue (BRL)2 continues to grow +24% Jun-23 Dec-23 Jun-24 webmotors #2 +21% CAGR Strong finance momentum Seamless finance integration with H2 FY24 Santander and improving ma
Slide 12: Our Global Priorities
Our Global Priorities We have a clear set of priorities across our global marketplaces Market Leadership 1. 2. 1. Market 2. Digitising Di s 3. Depth on gi Leadership Services tis riz ing 6. Future Ho Expand the Remove friction Deliver value for leadership positions points in the vehicle Services sel
Slide 13: Key Highlights - Market Leadership
Key Highlights - Market Leadership Strong market leadership1 6.8x 3.0x #2 #2 7.3x 2.2x #2 #2 2.6 million 18 billion 1.3 billion 48 million Vehicles online2 Page views2 Total Sessions2 Monthly unique audience2 (1) Market leadership is shown vs nearest vertical competitor. carsales.com.au based on Jun
Slide 14: Key Highlights - Digitising Services
Key Highlights – Digitising Services We are facilitating an increasingly digital buying and selling processes Home Transactions Powersports Direct Encar Home listings increased, demonstrating a rise in Powersports Direct leads increased, demonstrating the consumer demand for online transactions inte
Slide 15: Key Highlights - Depth
Key Highlights - Depth Depth products provide superior inventory ranking or features – these have driven value for sellers in a more challenging market Strong growth in Dealer depth uptake Premium Select increases Premium Select transactions Depth usage +16% >100% Launched in Global Inventory Q3FY23
Slide 16: Key Highlights - Media Expansion
Key Highlights – Media Expansion Leveraging technology and IP effectively across the Group Australia North America & Latin America Revenue growth driven by the introduction of new products, diversification into non-automotive International Media categories and higher new car Revenue inventory levels
Slide 17: Key Highlights - Future Horizons
Key Highlights – Future Horizons Excellent progress on marine launch Marine We are making excellent progress on expanding our marine footprint in the US Dealers Inventory Up 81% Up 52% 1.5k+ 80k Jun-23 Jun-24 Jun -23 Jun-24 Visits Leads Up 49% Up 53% Q4 FY23 Q4 FY24 Q4 FY23 Q4 FY24 17
Slide 18: Multiple Marketplace Growth Drivers
Multiple Marketplace Growth Drivers Australia International Asia North America Latin America Dealer Private Media Auto Auto Non-Auto New Volume customers Dealer Auto Premium ad penetration Traditional Growth Drivers Yield diversification penetration Yield Product Native ads Yield Product Depth expan
Slide 19: Compelling Growth Through Different Economic Cycles
Compelling Growth Through Different Economic Cycles Group Proforma Financial Performance ($AUDm) Revenue Revenue EBITDA CAGR: 15% Highly resilient and countercyclical business model • CAR Group is more geared to used vehicle buy & sell transactions which have less cyclicality than new vehicle buy tr
Slide 20: FY25 Outlook
FY25 Outlook Outlook Statement We expect to deliver good growth in Revenue, Adjusted EBITDA and Adjusted NPAT on a constant currency basis. Margin We expect to see similar Adjusted EBITDA margins in FY25. Australia Observations International Observations Dealer North America • We expect to deliver g
Slide 21: Financial Performance
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Slide 22: Track Record of Growth
Track Record of Growth Proforma Proforma Revenue1 EBITDA1 14% CAGR 15% CAGR ($AUDm) ($AUDm) 1,099 957 581 833 499 707 431 648 390 334 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Adjusted Adjusted NPAT EPS2 14% CAGR 26% CAGR ($AUDm) (cents) 91.3 344 78.1 278 66.5 53.6 58.4 195 138 153 FY20 FY21
Slide 23: P&L Summary
P&L Summary $AUDm FY23 FY24 Growth % • Excellent underlying revenue and EBITDA growth enhanced by the full year consolidation of Trader Interactive and Revenue 781 1,099 41% webmotors in FY24. Operating expense (356) (518) (45%) 1 • D&A reflects depreciation of building fit-outs and software Adjuste
Slide 24: Segment Performance
Segment Performance Double-digit revenue and earnings growth in all key segments Proforma • Australia – Core Australian marketplace delivered 1 $AUDm FY23 FY24 Growth % CC % excellent revenue and earnings growth through Australia 2 399 450 13% 13% continued enhancement of our customer value proposit
Slide 25: EBITDA Margin Summary
EBITDA Margin Summary Expansion in group margin while investing for future growth Australia – Small margin improvement while investing in future growth initiatives, including site simplification, C2C payments, private sell experience and new media technology. North America – Good margin growth throu
Slide 26: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet Cash flow conversion Leverage2, net debt Capex • 99% EBITDA to cash conversion • Further reduction in leverage • Capex investment continues to reflects the attractive working ratio on a proforma2 support growth. Key investments capital profile of marketplace
Slide 27: Operating Segments
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Slide 28: Australian Market Observations
Australian Market Observations The Australian used car market remains robust VFACTS1 new vehicle sales Used car inventory on site2 New vehicle sales have increased Used car inventory on site has increased +33% +27% +13% +18% 1,267 215,514 +18% 1,125 +8% 183,242 951 169,425 FY20 FY23 FY24 Jun-19 Jun-
Slide 29: Australia
Australia $AUDm vs pcp% Excellent operational execution in all segments supported by a robust used car market Revenue 450m 13% • Increase in Dealer revenue driven by lead volumes, yield and expanded depth penetration. Depth benefitted from strong Adjusted EBITDA product value and an increase in inve
Slide 30: North America
North America Business model strength in more challenging $AUDm vs pcp% market conditions Proforma Revenue 277m 16% • Delivered double-digit revenue growth. This was an excellent outcome given more challenging macro conditions, particularly in the recreational verticals. Proforma EBITDA 166m 18% • S
Slide 31: Latin America
Latin America $AUDm vs pcp% CC % Strong operational execution delivers excellent financial performance Proforma Revenue 182m 31% 25% • Excellent progress made across all strategic initiatives in first full year of webmotors majority ownership. Proforma EBITDA • Delivered higher average revenue per d
Slide 32: Asia
Asia Increasing adoption of premium and digital retailing products $AUDm vs pcp% CC % • Excellent growth in revenue and EBITDA driven by increasing premium Revenue product penetration, yield increases and continued increase in Home 121m 17% 15% delivery transactions. • Guarantee inspections reached
Slide 33: Strategy Update
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Slide 34: Our Global Priorities
Our Global Priorities We have a clear set of priorities across our global marketplaces Market Leadership 1. 2. 1. Market 2. Digitising Di s 3. Depth on gi Leadership Services tis riz ing 6. Future Ho Expand the Remove friction Deliver value for leadership positions points in the vehicle Services sel
Slide 35: Depth
Depth Deliver value for sellers through new premium depth products Wallet attracts incremental spend Guarantee evolution Premium Select Reporting Module In-depth inspection Report • Santander loyalty program launched H2 • 10% Guarantee Inspection price rise to be • Detailed depth ROI reporting FY24
Slide 36: Private Seller Experience
Private Seller Experience Create a seamless experience for private buyers and sellers Through continual innovation Expanding our service offering and enhancing trust and safety private yield has increased at 11% CAGR Lower Car value Higher Broadening the eligibility criteria of vehicles that can uti
Slide 37: Media Expansion
Media Expansion Connect advertisers to our audience through the most sophisticated data products Total addressable markets for advertising are significant $0.8 billion $4.8 billion $1.5 billion $70 million Diversify Customer Expand Media Explore Key Grow Direct Base Product Set Technologies for Loca
Slide 38: Future Horizons
Future Horizons Leverage insights and trends to explore new ideas and opportunities C2C payments Seller Seller Buyer Buyer Buyer Payment preference Enter account Offer and pay Add funds Release payment Select "pay with Verify identity Create an offer Add funds into Instantly release carsales" when m
Slide 39: Driving Long Term Shareholder Value
Driving Long Term Shareholder Value CAR Group has multiple growth opportunities across large addressable markets Clear leadership Digitising Underpenetrated Transferrable, Strong cash positions in each vehicle international scaled IP and flows with of our markets transactions markets technology robu
Slide 40: Appendix
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Slide 41: Overview of CAR Group Non-IFRS Financial Information
Overview of CAR Group Non-IFRS Financial Information What is IFRS and non-IFRS financial from financial information prepared in clearly reconcile between the IFRS and non- information? accordance with all relevant accounting IFRS financial information. standards and has been subject to either • IFRS
Slide 42: Segment Details
Segment Details Proforma Adjusted $AUDm FY23 FY24 Growth % CC %1 FY23 FY24 Growth % CC %1 Dealer 203 228 12% 12% 203 228 12% 12% Private 90 99 10% 10% 90 99 10% 10% Media 61 73 20% 20% 61 73 20% 20% Online Advertising 353 399 13% 13% 353 399 13% 13% Data, Research and Services 46 50 10% 10% 46 50 10
Slide 43: Reconciliation of Adjusted to Reported Financials
Reconciliation of Adjusted to Reported Financials A. M&A and other significant items include South Korea IPO $AUDm FY23 FY24 process, closure of Mexico, and webmotors transaction Adjusted EBITDA 425 581 costs. Restructuring, M&A and FX items (25) (13) A B. Gain on step acquisition reflects the one-o
Slide 44: Exchange Rates
Exchange Rates FY24 FX rates, full year ended June Average Closing AUD / USD 0.66 0.67 AUD / KRW 875.04 925.00 AUD / BRL 3.28 3.65 AUD / CLP 594.44 621.00 For the presentation, constant currency growth rates have been derived by applying FY24 average rates to convert historical financials. 44
Slide 45: Total Addressable Markets
Total Addressable Markets Volume Yield TAM Country Segment (m) (AUD) (AUDm) B2C 2.0 250 500 Digital retailing 0.2 700 110 Dealer Digital trade-in 0.5 500 225 Finance 0.1 490 50 Non-auto - - 200 Private 1.8 100 175 Media - - 800 Data & Services - - 500 Australia Total 2,560 RV 0.8 667 500 Powersports