CL8 Holdings Limited · ASX:CL8
CL8 — Carly Holdings — Investor Presentation (March 2021)
33 slides from CL8's investor presentation, March 2021
Slide 1: Leading the Transition to Car Subscription
Leading the Transition to Car Subscription Investor Presentation March 2021
Slide 2: Disclaimer
Disclaimer The material herein is a presentation of non- information that might reasonably be required looking statements are reasonable, such specific background information about the to complete a detailed assessment of Carly statements involve risks and uncertainties current activities of Carly Ho
Slide 3: Carly Holdings Overview
Carly Holdings Overview The Company The Ideal Solution Market Opportunity Carly Holdings is innovating in the Carly, Australia’s first flexible car subscription 38% of Australians* would rapidly evolving automotive and service launched in March 2019. consider subscribing to a car mobility markets in A
Slide 4: What is a Carly Car Subscription?
What is a Carly Car Subscription? A fast, flexible and low-risk way for individuals and businesses to access quality new or used vehicles online for 30 days+ The key benefits of Carly Subscription are: ● one simple monthly subscription fee includes registration, insurance, maintenance and roadside ass
Slide 5: Key milestones
Key milestones $1m strategic investment from NZ auto leader Turners Automotive DriveMyCar expands fleet over 20% with 101 Subaru Imprezas Hyundai chooses Carly for car subscription in Australia Launched in Carly Holdings receives $1m Sydney SG Fleet invests DriveMyCar enters strategic investment from
Slide 6: The way people access cars is changing rapidly
The way people access cars is changing rapidly 38% 59% 10% 10% Shift from Car Rise in use of Automotive Uptake of Multiple Ownership to Access Subscription Services Industry Disruption Mobility Solutions Ownership is increasingly From mobile phones to New car sales are in decline, Individuals and bu
Slide 7: Carly website
Carly website *NEW* Homepage Results page Car details page 7
Slide 8: A start-up with a head start
A start-up with a head start 38% Carly is a first-mover in the Australian Carly has strong market DriveMyCar operates in key car subscription market; leveraging potential: rental markets: the experience, partnerships and ● No dominant competitors ● Long-term car rental proprietary technology develope
Slide 9: Subscription fills a large gap in the mobility market
Subscription fills a large gap in the mobility market 5.22 months Average subscription period (Dec 2020) Cost Car Share 1 hr – 1 day Car Rental 1 – 14 days Car Subscription 30 days – 1 year Outright Purchase & Long-term Finance 1+ year Time 9
Slide 10: Carly connects subscribers with suppliers of vehicles
Carly connects subscribers with suppliers of vehicles Supply Marketing Demand Automotive manufacturers Online discovery Families Automotive dealers Insurance Contractors ID verification Fleet management companies Relocators Sales Corporate fleets Experience Seekers Fleet mgt Strategic partners De-risk
Slide 11: Car subscription market potential
Car subscription market potential The new and used car sales market in Australia is valued at $55 billion p.a AFR - Apr 2020 38% 59% 10% Car Subscription Market of Australians ‘Probably Would’ of all new vehicle would consider a or ‘Definitely sales in the US and Penetration Potential car subscriptio
Slide 12: The right time for Car Subscription
The right time for Car Subscription Many businesses have been severely impacted by COVID-19, however Carly 76% MAR 2020 increased revenue as people sought Growth in subscribers lower risk, vehicle access solutions that do Subscription growth continued DEC 2020 despite COVID-19 and not require long-t
Slide 13: Car subscription grows despite COVID-19
Car subscription grows despite COVID-19 COVID-19 lockdown Rental and Subscription Receipts Lock down impacts car rental and rideshare rental $900,000 $800,000 $700,000 $600,000 Consistent growth of $500,000 Carly Car Subscription $400,000 Exceeds pre-COVID 19 $300,000 revenue $200,000 $100,000 Mar Q
Slide 14: The auto industry and consumers realise the value of Car Subscription
The auto industry and consumers realise the value of Car Subscription “ CARLY, the Australian car subscription provider has had all-time record subscription sales in the quarter to June 2020 in spite of, or possibly because of, the challenging sales numbers in the ‘conventional’ car market. The comp
Slide 15: Media Coverage
Media Coverage Sophia Lust Liquor Sunrise A Current Affair Consumer Case Study Business Case Study Carly featured on Sunrise Carly featured on A Current Affair Featured on A Current Affair After Carly was featured on Sunrise and A Current Affair, Featured on Sunrise the number of people searching for Ca
Slide 16: Carly in the News
Carly in the News Car Subscriptions soaring Subscribing to a car could help you survive the pandemic and save on your finances Tax win for Carly subscribers The $700 million fleet management group SG Fleet has taken a stake in Carly Australians are swapping their Netflix Style Car Subscription Company
Slide 17: Australians' attitudes towards Car Subscription
of Australians would consider Australians’ 38% subscribing to a car rather than purchasing or leasing attitudes towards 47% of people with children would consider subscribing to, rather than purchasing Car Subscription their next car Interest in Car Subscription has increased since COVID-19... 69% +
Slide 18: ATO Product Ruling
ATO Product Ruling Carly has secured a product ruling from the Australian Taxation Office that provides a clear framework for Carly subscribers using cars for business or work purposes to claim tax deductions. The ATO Product Ruling is exclusive to Carly and does not apply to any other car subscriptio
Slide 19: Experience delivers lower risk and higher conversion
Experience delivers lower risk and higher conversion Competitors compensate by charging large upfront fees that restrict customer uptake or ignore risk altogether. The experience of completing over 4,000 monthly recurring vehicle transactions means that Carly can deliver: LOWER HIGHER MORE fraud ris
Slide 20: Industry leading partnerships
Industry leading partnerships Rentals for rideshare drivers and Supply of new Mitsubishi, Supply of new and the first accident replacement Renault, KIA, Subaru, ex-lease vehicles rental solution for Uber Nissan vehicles Carly launched the first Integrated subscription DriveMyCar is preferred car manuf
Slide 21: Turners Automotive launch car subscription in New Zealand, powered by Carly
Turners Automotive launch car subscription in New Zealand, powered by Carly The key benefits of Carly Subscription are: ● Follows on from AUD $1M in investment from Turners Automotive Group - the largest seller of cars in NZ ● The platform was launched in September 2020 as Turners Subscription - ‘Pow
Slide 22: SG Fleet strategic investment, vehicle supply and B2B referral partnership
SG Fleet strategic investment, vehicle supply and B2B referral partnership ● SG Fleet invested A$2.2 million in Carly Holdings in November 2019 ● A dominant player in fleet management and leasing, SG Fleet manage over 140,000 vehicles and supply Carly and DMC with vehicles ● The B2B collaboration ena
Slide 23: The first subscription service to partner with a manufacturer and their dealer network
The first subscription service to partner with a manufacturer and their dealer network ● Hyundai is the third largest car brand in Australia ● Working with Carly to offer a co-branded subscription offering for its vehicle range ● Includes participation of Hyundai dealer network to provide broad market
Slide 24: Improving subscription plan economics
Improving subscription plan economics REVENUE SHARE Increase in average Carly revenue share from new subscription plans* 2.1% New subscription plans were launched on 1 Sep 2020. The 2.1% increase will support improvements in profit margin in future quarters AVERAGE RETENTION PERIOD 5.0 5.2 4.4% Longe
Slide 25: Upselling to Higher Price Subscription Plans
Upselling to Higher Price Subscription Plans Through sales and marketing initiatives, Carly upsold a higher proportion of customers from ‘Entry’ to SEPTEMBER QUARTERS YEAR ON YEAR ‘Medium’ subscription plans, resulting in revenue and margin improvements. 2019 62% 22% 16% ENTRY MEDIUM LARGE 2020 44%
Slide 26: Revenue and margins are improving
Revenue and margins are improving Upselling to higher value subscription COMPARISON OF QUARTERLY RESULTS plans, as well as increases in average AVERAGE SUBSCRIPTION VALUE COST OF SALES GROSS MARGIN end user prices supported by lower SEP cost of sales, have driven material 2019 $799 $169 $93 increase
Slide 27: Improving insurance metrics
Improving insurance metrics YEAR ON YEAR 7 MONTHS CLAIMS PER 4.8 4.2 3.7 2.6 10,000 DAYS Rental only Rental + Rental + Subscription Subscription Subscription only April 18 – Mar 19 April 19 – Mar 20 April 20 – Oct 20 April 20 – Oct 20 Improvements to the performance of the motor fleet insurance polic
Slide 28: Carly's competitive advantage
Carly’s competitive advantage 10+ years experience in the industry Substantial industry partnerships Direct and licensing income Online customer acquisition Industry enabler, not a competitor Capital light business model Mass market proposition Proprietary technology platform PeerPass verification pl
Slide 29: FY21 Growth Opportunities
FY21 Growth Opportunities White Label Opportunities Business & Government Carly will leverage the capability developed to launch Hyundai subscription in Australia, and Turners Carly will leverage the relationship with SG Fleet Subscription in New Zealand, to pursue platform to offer subscription to i
Slide 30: Corporate Structure
Corporate Structure As at 29 January 2021 Board, management Shares on issue 56.5 m* and related parties Other Options on issue 4.3 m* shareholders 23.8% Market capitalisation $9.9 m 27% Cash at bank 31 Dec 2020 $1.325 m Top Shareholders Willoughby Capital Pty Ltd 24.7% SG Fleet Management Pty Limite
Slide 31: Carly Holdings Board of Directors
Carly Holdings Board of Directors Chris Noone Robbie Blau Todd Hunter Adrian Bunter Stephen Abolakian Michelle Vanzella Chief Executive Officer Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director and Director Chris has led the evolution Ro
Slide 32: Why invest in Carly Holdings?
Why invest in Carly Holdings? Consumers & businesses are ready Car Subscription is gaining traction Access to vehicles is increasingly preferred to Carly has grown steadily since launch in ownership. Carly provides flexible and cost- March 2019 and has secured partnerships effective ways to access veh
Slide 33: Investor contact details
W: www.carly.co/investors E: shareholder@carly.co Sign up to our investor newsletter http://carly.co/investors/newsletter 33 33