E Automotive Inc · OTC:EICCF
E Automotive — Investor Presentation (February 2023)
22 slides from E Automotive's investor presentation, February 2023
Slide 1: Disrupting the Automotive Digital Marketplace
DISRUPTING THE AUTOMOTIVE DIGITAL MARKETPLACE February 2023
Slide 2: Forward-Looking Information
Forward-Looking Information 2 This presentation contains “forward-looking information” within the meaning of applicable Canadian securities laws. Forward-looking information may relate to future plans, expectations and intentions, results, levels of activity, performance, goals or achievements, and
Slide 3: E Inc: Established Market Leader
3 E INC: ESTABLISHED MARKET LEADER GROWTH SCALE OPPORTUNITY $107M $3.0B ~$16B Total Addressable Market LTM Q3 2022 Revenue LTM Q3 2022 GTV1 in North America 61 % 195kLTM Q3 2022 64 % Of Used Car Dealers LTM Q3 2022 YoY Revenue Growth Vehicles Transacted Currently Buy Vehicles Offline2 Note: All figu
Slide 4: The Wholesale Auction Market
4 THE WHOLESALE AUCTION MARKET A vital component of a dealership’s inventory management ecosystem DIGITAL AUCTIONS – Low Cost & Efficient 1 23.9M – Less Pricing Risk RETAIL LOT WHOLESALE – Greater Reach and Exposure TRANSACTIONS – Better Inventory Management – Complete Dealer Control TRADE IN VEHICL
Slide 5: #1 Challenge / Solution
5 #1 CHALLENGE INCREASING MORE MORE NEW COMPETITION INFORMED SOPHISTICATED DIGITAL CONSUMERS DEALERS DISRUPTORS $ SOLUTION BETTER $ INVENTORY $ SELL INCREASE SAVE EFFICIENTLY PROFITABILITY TIME MANAGEMENT
Slide 6: Land-Meets-Tech
6 ● One platform for physical and digital auctions ● Land & Logistics to LAND-MEETS-TECH support digital and Fleet ● Profitable businesses to build around ● Meeting clients where they are
Slide 7: 2022: A Perfect Negative Storm in Auto and for E Inc
7 2022: A PERFECT NEGATIVE STORM IN AUTO AND FOR E INC 2022 HEADWINDS 2023 TAILWINDS MACRO MACRO ● Used car prices peaked Feb 2022, 60% ● 23% decline in used car prices in Dec higher than pre-pandemic levels 2022 compared to peak ● Macro backdrop and higher prices drove ● Conversion rates stabilized
Slide 8: E Inc Underpinned by Strong Net Asset Value
8 E INC UNDERPINNED BY STRONG NET ASSET VALUE 165.8 $107M LTM Q3 2022 Revenue Canadian revenue 29.0 $74.5M (Digital + Retail) 10.1 112.2 14.5 vs. $112.2M Remaining value Enterprise value1 FastLane acquisition ESP acquisition Louisiana First Remaining acquisition value (USD millions) 1) Enterprise va
Slide 9: The Digital Addition
9 THE DIGITAL ADDITION Technology disruption in the auto market
Slide 10: E Inc Product Line
10 E INC PRODUCT LINE Effective allocation of R&D spend that will propel E INC to long-term success WHOLESALE EXPERIENCE CONDITION LIVE POST AUCTION REPORTS AUCTIONS SERVICES LiveLanes $18,995 RETAIL EXPERIENCE Guaranteed Offer WEBSITES ADVERTISING & SEO INVENTORY SOLUTIONS
Slide 11: Self-Reinforcing Network Effects
11 SELF-REINFORCING NETWORK EFFECTS Our scale helps dealers achieve greater inventory selection, liquidity, and efficiency DATA ADVANTAGE - Includes dealer, transaction, market, vehicle condition, More Marketplace More Vehicle And consumer interest and other Participants Market Data data from variou
Slide 12: One Destination, One Consistent Experience
12 ONE DESTINATION, ONE CONSISTENT EXPERIENCE The industry’s first hybrid auction experience that seamlessly blends digital and physical inventory in a single auction event. Seller Journey In Store Appraisals Closed Group > Open Auctions Sell Online or In Lane PROVIDE RETAIL CONSUMER SELL WITHIN THE
Slide 13: Accelerating Profitability with Our Land-Meets-Tech Acquisition Strategy
ACCELERATING PROFITABILITY 13 WITH OUR LAND-MEETS-TECH ACQUISITION STRATEGY E INC acquisition playbook Cost-Effective Gateway Well-Established, ● Incorporate our into New Markets Profitable technology with existing physical physical auction networks bring infrastructure and immediate established loc
Slide 14: LiveLanes
WESTERN US AUCTION OOOO, A32 15 Ford F-1S0 4WD SuperCrew 145" XLT 13 Chevrolet Silverado 1500 4WD Reg Cab... 181,034 k 14 Kia Forte Koup 2dr Cpe Auto SX. 44 Toyota Tundra 4WD Crewmax 146", LIVE AUCTION Bi2 14Ram 1500 Big Horn 4x4 Crew Cab 08 Nissan Altima 2dr Cpe l4 CVT 2.5 S ’08 Ford Escape 4WD 4dr
Slide 15: Attractive Economics of Our Platform
15 ATTRACTIVE ECONOMICS OF OUR PLATFORM WHOLESALE MARKETPLACE RETAIL FEATURES VEHICLE TRANSACTION BASED SUBSCRIPTION SALE PRICE Fee Per Transaction Monthly Recurring ANCILLARY SERVICES 一 Transportation Services 一 Vehicle Inspection Services 一 Assurance Products ~$15,573 $304 $191 一 Title Processing
Slide 16: US$16B Total Addressable Market
16 TOTAL ADDRESSABLE MARKET US$16B TOTAL ADDRESSABLE MARKET WHOLESALE MARKET TAM Expansion Opportunities US$12 Billion2 - International Expansion RETAIL MARKET - Automotive Financing 1 US$4 Billion - Expand Product Suite and Additional Service Offerings PENETRATION TO DATE REMAINING MARKET OPPORTUNI
Slide 17: One Destination, One Consistent Experience
ONE DESTINATION, ONE 17 CONSISTENT EXPERIENCE WHY WE WIN THE DIGITAL AUTOMOTIVE MARKETPLACE The right experience with market-leading technology PHYSICAL WHOLESALE Set auction times with a single platform combining LiveLanes & digital lanes for a consistent auction experience Driving confidence with
Slide 18: Competitive Analysis
18 COMPETITIVE ANALYSIS Manheim ACV KAR Global EBlock Digital Auctions Physical Auctions Streaming Simulcast Land Meets Tech LiveLanes Financing Post Sale Services Reconditioning
Slide 19: Consistent Customer Expansion and Engagement on the Wholesale Marketplace
19 CONSISTENT CUSTOMER EXPANSION AND ENGAGEMENT ON THE WHOLESALE MARKETPLACE 194,613 3,032 163,523 GROSS TRANSACTION VEHICLES TRANSACTED DEALERS USING SUBSCRIPTION VALUE PER YEAR1 2,192 PER YEAR1 RETAIL FEATURES (In US$ Millions) (# of Transactions) (# of Unique Dealers, as at the end of the period)
Slide 20: Digital Disruption Delivering Growth
20 DIGITAL DISRUPTION DELIVERING GROWTH Market share gains through manageable investment in a large addressable market evidenced by top line growth REVENUE PROFILE ADJUSTED EBITDA & MARGIN 106.9 ADJUSTED EBITDA ADJUSTED EBITDA MARGIN 61 % 80.0 2018 2019 2020 2021 Q3 2021 Q3 2022 Q3 LTM 2022 - 2021 (
Slide 21: Priorities for the Next 12-18 Months
21 Priorities for the Next 12-18 Months 1 2 3 4 INCREASE EDEALER CORE ATTRACT NEW LEVERAGE WALLET SHARE MIGRATION CUSTOMER OUR DATA IN CORE SEGMENT MARKETS Launch LiveLanes technology Complete our new retail As the fleet and Combine data across digital in our physical auctions to platform, setting u
Slide 22: Moving Metal Faster in the Digital Economy
22 MOVING METAL FASTER in the digital economy WITH OUR LAND-MEETS-TECH STRATEGY INVESTMENT HIGHLIGHTS Large addressable market undergoing digital disruption Proprietary tech platform with an accompanying efficient and transparent marketplace that delivers a differentiated auction experience with spe