Autotrader Group Plc · LSE:AUTO
Autotrader — FY2021 Earnings Presentation
34 slides from Autotrader's earnings presentation, 2021
Slide 1: Full year results
ac é Full year results is, i ah a vst AutoTrader |
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Disclaimer + Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of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 (including via ele
Slide 3: Strategic Overview
Strategic Overview We have made good progress in developing important aspects of our online car buying journey, namely the Fal launch of guaranteed part-exchange, the trial of vehicle reservations and the acquisition of a financing = platform, AutoConvert. The shift online in automotive retailing ha
Slide 4: Financial Results
Financial Results £262.8m £161.2m 61% 13.24p £152.9m (£15.7m) 5.0p Revenue: down 29% to £262.8 million (2020: £368.9 million). Trade revenue down 31% to £225.2 million (2020: £324.3 million) Operating profit: down 38% to £161.2 million (2020: £258.9 million) Operating profit margin: down 9% to 61% (
Slide 5: Operational Results
Operational Results 58m 561m 13,336 £1,324 485,000 909 Cross platform visits: up 15% to 58.3 million per month on average (2020: 50.8 million) Cross platform minutes: up 14% to 561.1 million per month on average (2020: 492.5 million). Our share of cross platform minutes remains strong at over 75% (2
Slide 6: Introducing our Cultural KPIs
Introducing our Cultural KPls 93% 50:50 39% 1% 6,673 Employees that are proud to work at Auto Trader: remained high at 93% (2020: 89%) due to both the support we've provided, and as a result of having maintained clear and open communication with our people throughout the last 12 months 50:50 gender
Slide 7: Financials
Financials = AutoTrader
Slide 8: Revenue
Revenue Revenue (£m) 31 Mare Ye 021 is shown as 2021 Y-on-Y % 8% 355.1 16.3 2019 2020 2021 m= Trade mConsumer services = Manufacturer & Agency nprises: = AutoTrader Average Revenue Per Retailer (ARPR) (£) nt @ © £pcm +6% -_—> . - | 2019 2020 Number of retailer forecourts™ Y-on-Y % 13,240 13,345 2019
Slide 9: ARPR, stock and retailers
ARPR, stock and retailers ARPR levers in Ave 121 82 89 50 53 50 = = = — -_ = (22) (30) (52) (712) 2019 2020 2021 mPrice mStock sProduct =COVIDrelated discounts = AutoTrader Physical car stock and retailer forecourts Y-on-Y average @® retailers Y-on-Y average @ live physical car stock 16,000 Impact o
Slide 10: Costs
Costs Costs (£m) Year ending 31 March 2021 is s Y-0-Y % C 3x ) as 2021 8% 2019 2020 2021 mPeoplecosts mMarketing s=Other costs” =D&A and associated of £4.3m in 2021 (2019:£5.9m; 2020: £3.7m) = AutoTrader FTEs (including contractors)?! 804 853 2019 2020 2021 Capital expenditure (excluding acquisition
Slide 11: Profit and cash flow
Profit and cash flow Operating profit (£m) Ma Tis shown as — @ © 69% ___70% a mT ~ sl 61% 243.7 161.2 2019 2020 2021 mmm Operating profit |--- Operating profit margin erating profit includes the Group's share of profit from t ventures: 202): £2.4m, 2020: £3.2m; 2019: £0.9M = AutoTrader Cash generate
Slide 12: Income statement
Income statement 2021 2020 Year-on-year £ million £ million % Revenue 262.8 368.9 (29%) Administrative expenses (104.0) (113.2) 8% Share of profit from joint ventures 2.4 3.2 (25%) Operating profit 161.2 258.9 (38%) Finance costs - net (3.8) (7.4) 49% Profit before taxation 157.4 251.5 (37%) Taxatio
Slide 13: Net bank debt and capital allocation policy
Net bank debt and capital allocation policy Reconciliation of net bank debt “! (£m) 275.4 152.9 (1.4) (2.5) (3.0) (28.2) (0.5) 182.9 1.0 Leverage 2) (10.0) (15.7) — = March 2020 Cash capex Lease Netinterest Taxpaid Refinancing Netproceeds_ Proceeds Netcash March 2021 generated payments fees fromsale
Slide 14: UK Car Market
UK Car Market = AutoTrader
Slide 15: There were significant declines in the new and used car markets to March 2021
There were significant declines in the new and used car markets to March 2021 as a result of lockdown restrictions New cor registrations “ 3.0 y in td ° Number of new car registrations (m) a 2 a ° et — = . . 1 — = — — (i) Society of Motor Manufacturers & Traders (SMMT)-12 month rolling total = Autot
Slide 16: Total number of cars ÷ Frequency cars are changed = Number of transactions
Total number of cars ÷ Frequency cars are changed = Number of transactions Source: Society of Motor Manufacturers & Traders (SMMT) and Auto Trader analysis
Slide 17: Strong demand and restricted supply has led to consecutive months of price growth
Strong demand and restricted supply has led to 12 consecutive months of price growth for used cars Like-for-like price increase 14,500 14,000 13,500 13,000 12,500 12,000 11,500 11,000 10,500 10,000 16.0% 14.0% 12.0% 10.0% 8.0% 6.0% 4.0% THT . 0.0% (2.0%) (4.0%) . (6.0%) 2ag gf a5 238028383 2018 2019
Slide 18: Heightened demand has underpinned exceptionally strong audience growth
Heightened demand has underpinned exceptionally strong audience growth Cross platform visits Autotrader.co.uk (Average pcm - million) 2019 2020 2021 Cross platform minutes Autotrader.co.uk (Average pem - million) oo GG = 6® 561.1 485.0 492.5 2019 2020 2021 = AutoTrader Source of traffic to Autotrade
Slide 19: Advertising Products
Advertising Products = AutoTrader
Slide 20: We have evolved our advertising package structure and default sort order
Following year end, we have evolved our advertising package structure and our default sort order for vehicles The goal of this change was to deliver a consistent cross- platform search experience powered by a relevancy algorithm We have discontinued our Basic package, introduced a oP ultra higher le
Slide 21: Our New Car proposition: delivering increasing value to retailers
Our New Car proposition: delivering increasing value to retailers 9 fe) Retailers paying for the ,00 productin March 2021. (March 2020: over 1,000) Physical new cars were 47,000 advertised on site per alae ail month (2020: 31,000) hod Within 50 mil 1 4 m Unique visitors on average ° each month in 20
Slide 22: Enabling Digital Retailing
Enabling Digital Retailing = AutoTrader
Slide 23: New product Market Extension allows retailers to sell outside their local area
We've recently launched a new product, Market Extension, that allows retailers to sell outside their local area, a key product for the increasing number of retailers looking to sell online Our newly launched product, Market Extension, looks at the UK as ten distinct regions for retailers to target c
Slide 24: Changes underway in car retailing to bring more of the buying process online
Changes are underway in the car retailing industry to bring more of the buying process online, meeting the increased demand of car buyers (a) Search Reserve (t)portexchange Finance Delivery oko WAG buyers would consider buying online 60%: would 80%: wanta pay a deposit part-exchange value online onl
Slide 25: Our digital retailing journey will launch this financial year
Having worked towards a vision of selling online for many years, we have developed our digital retailing journey which will launch this financial year (a) Search Reserve G-')partexchanae Finance Delivery 561M minvres spent on Auto Trader on average per month = AutoTrader 14.1M iecas 120K guorantees
Slide 26: Outlook
Outlook = AutoTrader
Slide 27: Outlook
Outlook Auto Trader has started the new financial year in a strong position as a result of the actions taken in the last year. This is reflected in our recent trading performance, a strong pipeline of product innovations and improved relationships with customers. In the longer term, we will be benef
Slide 28: Appendix
Appendix = AutoTrader
Slide 29: Cashflow statement
Cashflow statement 2021 £m n Profit before tax 157.4 251.5 Depreciation & amortisation 6.3 6.5 Share-based payments charge (exc NI) 3.3 3.4 Share of profit from joint ventures (2.4) (3.2) Finance costs — net 3.8 74 Other non-cash items 0.3 (0.1) Changes in working capital (15.8) = Cash generated fro
Slide 30: Five year record
Five year record 2021 2020 2019 £ million £ million £ million Trade PIAA) 324.3 304.6 : 262.1 Consumer Services 26.6 28.3 28.0 . 31.8 Manufacturer & Agency 11.0 16.3 22.5 , 17.5 Revenue 262.8 368.9 355.1 330.1 311.4 Costs (104.0) (113.2) (112.3) (108.8) (108.3) Share of profit from joint ventures 2.
Slide 31: The automotive ecosystem
The automotive ecosystem NewoaR sates —> PART-EXCHANGE | DerLeet TRADEUSED (CARSALES = Autotrader
Slide 32: Our position as market leader is unchanged with over 75% of time spent
Our position as market leader is unchanged with over 75% of total automotive time spent on our platforms Share of minutes vs. main competitor set Auto Trader vs. & (Average pom ) competitors 2021: sox Auto Trader Gumtree/ CarGurus/ Motors/Ebay Pistonheads 80% ~~ f/ 70% _ 60% 50% 40% 30% 20% 10% \ —
Slide 33: Notes
Notes Z Autotrader * Financial year 2017 has not been restated for IFRSI6 33
Slide 34: Auto Trader
a AutoTrader = AutoTrader