Slide 1: Half Year Results
Half Year Results Six months ended 30 September 2017 9 November 2017
Slide 2: Disclaimer
Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of this document would be unlawful. By attending the meeting where this presentation is made or by reading this d
Slide 3: Financial highlights
Financial highlights +7% Revenue: up 7% to £165.0 million (H1 2017: £153.9 million) +9% Operating profit: up 9% to £109.6 million (H1 2017: £100.6 million) +11% Cash generated from operations: up 11% to £114.2 million (H1 2017: £103.2 million) +14% Earnings and distribution: basic EPS up 14% to 8.72
Slide 4: Key drivers
Key drivers +£148 ARPR: up £148 to £1,674 on average per month (H1 2017: £1,526), driven by growth in stock, price and product +3% Physical car stock on site: up 3% to 451,000 cars (H1 2017: 439,000) on average -1% Retailer forecourts: the average number of forecourts in the period (13,213) was 1% l
Slide 5: Revenue
Revenue Number of retailer forecourts (1) YoY% 0% (1%) (1%) Revenue (£m) Six months ending 30 September 2017 is shown as H1 2018 8% 11% 7% 10% Average Revenue Per Retailer (ARPR) (£) (1) (3%) YoY £110 £179 £148 £ pcm +10% +13% 8% Retailer revenue (£m) YoY% 9% 12% 8% Trade revenue comprises: H1 2018:
Slide 6: ARPR: balanced growth between price, stock and product
ARPR: balanced growth between price, stock and product ARPR levers Physical car stock and retailer forecourts Growth in Average Revenue Per Retailer per month (£) £110 £179 £148 16,000 480 Stock continues to grow Year-on-year 10% 9% 13% 460 growth 15,000 £32 in H1 2017 and We expect 440 Live physica
Slide 7: Costs
Costs FTEs (including contractors)(2) YoY% (6%) (4%) (1%) Costs (£m) Excluding the impact of MTD Six months ending 30 September 2017 is shown as H1 2018 acquisition, costs grew 2.3% 863 830 818 Year-on-year (8%) (4%) 4% growth H1 2016 H1 2017 H1 2018 (14%) 55.3 53.3 55.4 Marketing as a % of revenue
Slide 8: Profit and Cash flow
Profit and Cash flow Operating profit (£m) Cash generated from operations (£m) Six months ending 30 September 2017 is shown as H1 2018 Six months ending 30 September 2017 Year-on-year Year-on-year growth 23% 21% 9% 11% growth 3.6 1.6 (0.6) 114.2 109.6 Operating Depn & SBP (exc NI) Movement Cash prof
Slide 9: Income statement
Income statement Year-on-year H1 2018 H1 2017 growth £ million £ million % Revenue 165.0 153.9 7% Administrative expenses (55.4) (53.3) (4%) Operating profit 109.6 100.6 9% Finance costs - net (4.2) (5.1) 17% Profit before taxation 105.4 95.5 10% Taxation (20.7) (19.3) (7%) Profit for the period att
Slide 10: Net external debt and capital allocation
Net external debt and capital allocation Reconciliation of net external debt (1) (£m) Capital allocation • The policy outlined in the 2017 full year results announcement remains unchanged 1.65x Leverage (2) 1.55x • The Group will continue to invest in the business, but the ability to grow 355.0 114.
Slide 11: UK car market
~ 1) 4 Se .@) = Se @) O ~ =) = AutoTrader
Slide 12: The used car market is flat whilst the new car market has declined from previous highs
The used car market is flat whilst the new car market has declined from previous highs Used car transactions (1) New car registrations (2) 1.3% (4.6%) 5.3% 6.2% 6.3% 2.3% YTD YTD (1) DVLA transaction data – 12 month rolling total (2) Society of Motor Manufacturers & Traders (SMMT) – 12 month rolling
Slide 13: The number of used car transactions is driven by the size of the car parc and how often it turns
The number of used car transactions is driven by the size of the car parc and how often it turns 1 2 3 The UK car parc is in long term growth Consumers change their car every three …of which c.25% are new car sales and because cars are lasting longer and years or so (less frequently in an c.75% are
Slide 14: Like-for-like used car prices have continued to increase
Like-for-like used car prices have continued to increase Year-on-Year LFL price growth: 2% 1% 5% 5% 4% 2% 4% Source: Auto Trader analysis based on all adverts provided by Trade customers 13
Slide 15: Key drivers & outlook
Key drivers & outlook = AutoTrader
Slide 16: We maintain our strong audience engagement and leadership
We maintain our strong audience engagement and leadership Share of visits vs. main competitor set (1) Auto Trader vs. 3X 7X 19X 37X (Average pcm - million) competitors H1 2018: Auto Trader Gumtree Pistonheads Motors.co.uk CarGurus 80% Motors 70% 60% 50% 40% Gumtree retagging 30% 20% 10% 0% Sep Oct N
Slide 17: A good uptake in our new Advanced and Premium packages since launch in April
A good uptake in our new Advanced and Premium packages since launch in April has underpinned strong ARPR growth Starter Basic Standard Advanced Premium Improve visibility of your stock Boost your ad views with our Enjoy the greatest share of desktop ad Engage your buyers through Stand out and encour
Slide 18: Managing products: i-Control and Retail Check
Managing products: i-Control and Retail Check Number of forecourts with one of our Managing products Physical car stock from forecourts with a Managing product Average number in the month of September Trade stock number (000s) - September 2017 Penetration 12% 16% 20% 14 +600 36% of trade stock +500
Slide 19: Dealer finance and search by monthly payment
Dealer finance and search by monthly payment Users will have the ability to search Buyers can then compare Buyers can then choose And finally tailor their deposit on the basis of the monthly price affordability between a total retail between a PCP and HP option and monthly payment options to price a
Slide 20: Manufacturer & Agency: InSearch gives prominence to new car adverts
Manufacturer & Agency: InSearch gives prominence to new car adverts User lands on the Auto Trader InSearch creative is served directly into User clicks on the InSearch ad and is Homepage and searches for the the search results feed across desktop, redirected to the Manufacturer desired Make & Model.
Slide 21: FY18 Outlook
FY18 Outlook1 Our Trade business (representing over 80% of revenues) continues to perform well We now expect ARPR improvement to be at or above £140pcm for the year (ahead of our £130pcm target) with product as the largest contributor to ARPR growth. This means that ARPR for the year will grow f
Slide 22: Appendices
Appendices = AutoTrader
Slide 23: Cash flow statement
Cash flow statement H1 2018 H1 2017 • Tax paid lags the charge to the income statement £ million £ million by c. 6 months Profit before taxation 105.4 95.5 Depreciation & amortisation 3.6 4.3 • Capital expenditure includes continued spend on Share-based payments charge (excl. NI) 1.6 2.1 hardware an
Slide 24: Five year record
Five year record Six months to September Year ended March 2017 2016 2015 2017 2016 2015 2014 2013 £m £m £m £m £m £m £m £m Revenue 165.0 153.9 138.2 311.4 281.6 255.9 237.7 218.9 Administrative expenses (55.4) (53.3) (55.3) (108.3) (112.0) (122.8) (139.0) (109.8) Operating profit before share-based p
Slide 25: Notes
Notes = AutoTrader 24