Car Group Limited · ASX:CAR
Car — Shareholder Meeting (October 2018)
35 slides from Car's shareholder meeting presentation, Oct 26, 2018
Slide 1: 2018 AGM Presentation
2018 AGM PRESENTATION 26 OCTOBER 2018
Slide 2: Disclaimer and Non-IFRS Information
DISCLAIMER AND NON-IFRS INFORMATION Disclaimer Non-IFRS Financial Information The material in this presentation has been prepared by carsales' results are reported under International Financial carsales.com Limited (ASX: CAR) ABN 91 074 444 018 (“carsales") Reporting Standards (IFRS). This presentat
Slide 3: Contents
CONTENTS Key Highlights 4-6 Reported Group Financial Performance 7 - 13 carsales Domestic 14 - 20 carsales International 21 - 27 Outlook 28 – 29 Appendix 30 - 35 3
Slide 4: Key Highlights
z KEY HIGHLIGHTS TO 30 JUNE 2018 4
Slide 5: FY18 Highlights
FY18 HIGHLIGHTS Reported revenue Reported EBITDA Adjusted NPAT* Up Up Up 19% 16% 10% to to to $444m $205m $131m Financial summary International highlights Solid full year result with the Group delivering pleasing growth against last year • Continued evolution of our international growth strategy wit
Slide 6: Strong Track Record of Financial Performance
STRONG TRACK RECORD OF FINANCIAL PERFORMANCE carsales continues to demonstrate consistent solid returns to its shareholders. FY18 Adjusted NPAT growth rate is the highest in the last four years. Revenue ($m) EBITDA ($m) Adjusted NPAT* ($m) 204.6 444.0 131.0 176.5 119.1 170.3 110.5 372.1 344.0 154.3
Slide 7: Reported Group Financial Performance
z REPORTED GROUP FINANCIAL PERFORMANCE TO 30 JUNE 2018 7
Slide 8: Summary Revenue & EBITDA Performance
SUMMARY REVENUE & EBITDA PERFORMANCE Revenue $A Millions Growth Year Ending 30 June 2018 FY17 FY18 $'s % • Very good full year revenue performance of $444.0m, up 19% on pcp. • Revenue growth of 12% excluding the acquisition of SK Encar. Revenue Online Advertising 269.1 295.6 26.5 10% • Solid underly
Slide 9: EBITDA Margin Performance
EBITDA MARGIN PERFORMANCE Core EBITDA margin continues to expand, offset by high revenue growth domestic and international investments. • Reported Group margins moved from 47.4% in FY17 to 46.1% in FY18, 0.9% (0.6%) (1.6%) with domestic core business margin increases offset by a decline in 47.4% Str
Slide 10: Look Through Summary
LOOK THROUGH SUMMARY Growing contribution from carsales International reflecting the strength of the international growth strategy. International look through revenue and EBITDA grew 54% and 76% respectively in FY19. Look Through Revenue Look Through EBITDA 209.9 426.8 26.0 67.6 181.5 360.0 171.4 14
Slide 11: Adjusted Net Profit After Tax Summary
ADJUSTED NET PROFIT AFTER TAX SUMMARY • The analysis adjacent reflects the Adjusted net profit after tax results of the business for FY18. Details of the reconciliation between Adjusted $A Millions Growth and Reported results are shown on slides 36-37. The proceeding Year Ending 30 June 2018 analysi
Slide 12: Reported Debt and Cash Flow
REPORTED DEBT AND CASH FLOW Reported Operating Cash flow (column) $A Millions Growth and conversion from EBITDA to cash (line) Year Ending 30 June 2018 FY17 FY18 $'s % 140.0 120% 124.8 Cash Capital expenditure 2.9 8.6 5.7 200% 119.5 119.3 120.0 100% 100.0 100.2 Capitalised labour costs 9.2 11.7 2.5
Slide 13: Capital Management
CAPITAL MANAGEMENT • The Group continues to review its capital structure to maximise shareholder Drawn at 3 Maturity returns. Commitment July 2018 • SK Encar acquisition completed in January 2018 with short term bridging facility. Tranche A $335m $335m 3 years • The company entered into a competitiv
Slide 14: carsales Domestic (Australia)
CARSALES DOMESTIC (AUSTRALIA) TO 30 JUNE 2018 14
Slide 15: Domestic Revenue Performance - Summary
DOMESTIC REVENUE PERFORMANCE - SUMMARY $A Millions Growth Year Ending 30 June 2018 FY17 FY18 $'s % Revenue Dealer 133.5 143.9 10.4 8% Private 65.0 78.9 13.9 21% Display 70.6 72.8 2.2 3% Online Advertising 269.1 295.6 26.5 10% Data, Research and Services 39.3 41.9 2.6 7% Finance and Related Services
Slide 16: Dealer Performance Summary
DEALER PERFORMANCE SUMMARY Dealer revenue up 8% on pcp to $143.9m $143.9 $133.5 $123.8 $112.9 $105.2 $m FY14 FY15 FY16 FY17 FY18 Solid growth in core dealer advertising products driven by both low single digit lead volume growth and yield improvements. Our ability to deliver growth in this area of t
Slide 17: Private Performance Summary
PRIVATE PERFORMANCE SUMMARY Private revenue up 21% on pcp to $78.9m $78.9 $65.0 $51.1 $43.0 $39.9 $m FY14 FY15 FY16 FY17 FY18 Pleasingly, the good revenue growth observed in core private listing products in H1 was maintained in H2. This largely reflected the positive yield from tiered pricing and an
Slide 18: Display Performance Summary
DISPLAY PERFORMANCE SUMMARY Display revenue up 3% to $72.8m $70.6 $72.8 $65.8 $58.7 $60.6 $m FY14 FY15 FY16 FY17 FY18 Model Showcases Recorded display revenue growth of 3% on pcp, which was a resilient result in a competitive market. Our insights and analytics capability as well as sponsored content
Slide 19: Domestic Revenue Performance by Category
DOMESTIC REVENUE PERFORMANCE BY CATEGORY Data, Research and Services revenue up 7% to $41.9m $41.9 $39.3 $35.8 $33.0 $29.1 $m FY14 FY15 FY16 FY17 FY18 Solid pcp revenue growth reflecting continued demand for Data, Research and Services from OEMs, with the business continuing to draw on its investmen
Slide 20: Finance and Related Services
FINANCE AND RELATED SERVICES $A Millions Variance Finance and related services revenue up 24% to $68.4m Year Ending 30 June 2018 FY17 FY18 $'s % Core Finance 42.2 46.5 4.3 10% Core finance broking revenue was up 10% on pcp reflecting both increased volumes and higher average net amount financed, whi
Slide 21: carsales International
CARSALES INTERNATIONAL TO 30 JUNE 2018 21
Slide 22: International Summary
INTERNATIONAL SUMMARY Consolidated Entities Constant Summary $A Millions Growth International - reported results • Pleasing progress in our international expansion strategy with a significant FY17 FY18 $'s % Currency (%) increase in our revenue and EBITDA contribution from our international Revenue
Slide 23: carsales Asia – SK Encar
CARSALES ASIA – SK ENCAR The acquisition of SK Encar was completed in January 2018. Financial commentary: Pro-Forma (100%) FY17 FY18 PCP KRWb KRWb % • Solid underlying revenue and EBITDA growth for the financial year. H2 revenue growth of 17% and EBITDA growth of 10% provides a good platform heading
Slide 24: carsales Latin America – Webmotors
CARSALES LATIN AMERICA – WEBMOTORS Financial commentary: • Outstanding financial performance in FY18. Pro-Forma (100%) FY17 FY18 PCP • The key driver of the result was a 43% growth in dealer revenue, which was BRLm BRLm % supported by the continued education of dealers regarding the value Webmotors
Slide 25: carsales Latin America – carsales Chile
CARSALES LATIN AMERICA – CARSALES CHILE Financial commentary: FY17 FY18 PCP • Excellent financial performance in FY18 as the business further strengthened CLPm CLPm % its market leadership position. The revenue result was positively impacted by the integration of the demotores Chile business. Report
Slide 26: carsales Latin America – Demotores Argentina
CARSALES LATIN AMERICA – DEMOTORES ARGENTINA • Strategy in Argentina is to focus on establishing demotores as the clear and FY17 FY18 PCP dominant market leader from a vertical auto classifieds perspective. ARS '000 ARS '000 % • There has been significant progress made on this goal during the year a
Slide 27: carsales Latin America - Soloautos
CARSALES LATIN AMERICA - SOLOAUTOS • Completed the acquisition of the remaining 35% of soloautos in FY18. Pro-Forma (100%) FY17 FY18 PCP • Significant progress made on our goal to become the clear and dominant market MXPm MXPm % leader in Mexico. Reported revenue 9.1 16.5 82% • There was excellent g
Slide 28: Outlook
OUTLOOK TO 30 JUNE 2019 28
Slide 29: Performance Outlook
PERFORMANCE OUTLOOK carsales Domestic Outlook Domestic core business performance in the first quarter of FY19 has remained solid, with the exception of display advertising which has experienced disappointing trading to date. Our domestic adjacent businesses of tyresales and Redbook Inspect continue
Slide 30: Appendix
APPENDIX TO 30 JUNE 2018 30
Slide 31: Overview of carsales Non-IFRS Financial Information
OVERVIEW OF CARSALES NON-IFRS FINANCIAL INFORMATION What is IFRS and non-IFRS financial information? • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial information that is present
Slide 32: Reconciliation of Reported to Adjusted NPAT
RECONCILIATION OF REPORTED TO ADJUSTED NPAT $A Millions Growth Year Ending 30 June 2018 FY17 FY18 $'s % Reported NPAT 109.5 184.8 75.3 69% Interest Adjustments Option Discounting Unwind - 0.3 Option Movement in Fair Value - (4.0) Finance Cost Write-off - 0.4 Investment Adjustments SK Encar one-off t
Slide 33: Adjusted Financials
ADJUSTED FINANCIALS $A Millions FY17 FY18 Growth % Year Ending 30 June 2018 Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted Revenue Online Advertising 269.1 269.1 295.6 295.6 10% 10% Data, Research and Services 39.3 39.3 41.9 41.9 7% 7% carsales Asia 3.4 3.4 29.9 29.9 7
Slide 34: carsales “Look Through” P&L Analysis
CARSALES “LOOK THROUGH” P&L ANALYSIS FY17 FY18 Growth Days Look Days Look Look % Owned Owned Reported Underlying Through % Owned Owned Reported Underlying Through Reported % Underlying % Through % Revenue carsales International iCar Asia 20.1%,16.5%,15.6%* 365 Financial Asset* 3.0 0.5 13.10% 365 Fin
Slide 35: Slide 35