Car Group Limited · ASX:CAR
Car — carsales.com — FY2018 Earnings Presentation
39 slides from Car's earnings presentation, Aug 22, 2018
Slide 1: Full Year Results Presentation
For personal use only FULL YEAR RESULTS PRESENTATION YEAR ENDED 30 JUNE 2018
Slide 2: Disclaimer and Non-IFRS Information
DISCLAIMER AND NON-IFRS INFORMATION For personal use only 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
Slide 3: Contents
CONTENTS For personal use only Key Highlights 4-6 Reported Group Financial Performance 7 - 13 carsales Domestic 14 - 22 carsales International 23 - 31 Outlook 32 - 33 Appendix 34 - 39 3
Slide 4: Key Highlights to June 2018
z For personal use only KEY HIGHLIGHTS TO 30 JUNE 2018 4
Slide 5: FY18 Highlights
FY18 HIGHLIGHTS Reported revenue Reported EBITDA Adjusted NPAT* For personal use only Up Up Up 19% 16% 10% to to to $444m $205m $131m Financial summary International highlights Solid full year result with the Group delivering pleasing growth against last year • Continued evolution of our internation
Slide 6: Strong Track Record of Financial Performance
STRONG TRACK RECORD OF FINANCIAL PERFORMANCE carsales continues to demonstrate consistent solid returns to its shareholders. For personal use only FY18 Adjusted NPAT growth rate is the highest in the last four years. Revenue ($m) EBITDA ($m) Adjusted NPAT* ($m) 204.6 444.0 131.0 176.5 119.1 170.3 11
Slide 7: Reported Group Financial Performance to June 2018
z For personal use only REPORTED GROUP FINANCIAL PERFORMANCE TO 30 JUNE 2018 7
Slide 8: Summary Revenue & EBITDA Performance
SUMMARY REVENUE & EBITDA PERFORMANCE Revenue $A Millions Growth For personal use only 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
Slide 9: EBITDA Margin Performance
EBITDA MARGIN PERFORMANCE For personal use only 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
Slide 10: Look Through Summary
LOOK THROUGH SUMMARY Growing contribution from carsales International reflecting the strength of the international growth strategy. For personal use only 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.
Slide 11: Adjusted Net Profit After Tax Summary
ADJUSTED NET PROFIT AFTER TAX SUMMARY For personal use only • 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 Endin
Slide 12: Reported Debt and Cash Flow
REPORTED DEBT AND CASH FLOW Reported Operating Cash flow (column) $A Millions Growth For personal use only 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 labo
Slide 13: Capital Management
CAPITAL MANAGEMENT For personal use only • 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 ent
Slide 14: carsales Domestic (Australia) to June 2018
For personal use only CARSALES DOMESTIC (AUSTRALIA) TO 30 JUNE 2018 14
Slide 15: Domestic Revenue Performance - Summary
DOMESTIC REVENUE PERFORMANCE - SUMMARY For personal use only $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
Slide 16: Our Domestic Business Strategy
OUR DOMESTIC BUSINESS STRATEGY Our domestic strategy: For personal use only Growing our core advertising solutions, expanding into adjacent markets and addressing future opportunities across our two key customer divisions of Commercial and Consumer. OUR CUSTOMERS STRATEGIC OPPORTUNITIES Commercial C
Slide 17: Clear Leader Across All Metrics of Reputation, Site Engagement and Inventory
CLEAR LEADER ACROSS ALL METRICS OF REPUTATION, SITE ENGAGEMENT AND INVENTORY Average Daily Inventory2 Most Preferred Most Trusted Place For personal use only Unique Audience1 Place to Buy & Sell3 to Buy & Sell4 +62% +53% +154% +73% nearest carsales nearest carsales nearest carsales nearest carsales
Slide 18: Dealer Performance Summary
DEALER PERFORMANCE SUMMARY Dealer revenue up 8% on pcp to $143.9m For personal use only $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 gr
Slide 19: Private Performance Summary
PRIVATE PERFORMANCE SUMMARY Private revenue up 21% on pcp to $78.9m For personal use only $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
Slide 20: Display Performance Summary
DISPLAY PERFORMANCE SUMMARY Display revenue up 3% to $72.8m For personal use only $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 wel
Slide 21: Domestic Revenue Performance by Category
DOMESTIC REVENUE PERFORMANCE BY CATEGORY Data, Research and Services revenue up 7% to $41.9m For personal use only $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
Slide 22: Finance and Related Services
FINANCE AND RELATED SERVICES $A Millions Variance Finance and related services revenue up 24% to $68.4m For personal use only 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 ne
Slide 23: carsales International to June 2018
For personal use only CARSALES INTERNATIONAL TO 30 JUNE 2018 23
Slide 24: International Summary
INTERNATIONAL SUMMARY Consolidated Entities For personal use only 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
Slide 25: Our International Strategy
OUR INTERNATIONAL STRATEGY For personal use only 1. 1. Increase sustainable quality audience and traffic through SEO optimisation and brand marketing ESTABLISH CLEAR MARKET-LEADING 2. Deploy key technology programs to drive optimal consumer and dealer user experience POSITION 3. Aggressive customer
Slide 26: Global Platform
GLOBAL PLATFORM For personal use only carsales continues to invest in its global technology LATAM platform to drive future international growth: Tech Hub (Santiago) • Significant upside from building a standardised platform of products that subsidiaries are able to utilise as required. • Global plat
Slide 27: carsales Asia – SK Encar
CARSALES ASIA – SK ENCAR The acquisition of SK Encar was completed in January 2018. For personal use only 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
Slide 28: carsales Latin America – Webmotors
CARSALES LATIN AMERICA – WEBMOTORS Financial commentary: • Outstanding financial performance in FY18. For personal use only 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 regardin
Slide 29: carsales Latin America – carsales Chile
CARSALES LATIN AMERICA – CARSALES CHILE For personal use only 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
Slide 30: carsales Latin America – Demotores Argentina
CARSALES LATIN AMERICA – DEMOTORES ARGENTINA For personal use only • 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
Slide 31: 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 For personal use only • 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% •
Slide 32: Outlook to June 2018
For personal use only OUTLOOK TO 30 JUNE 2018 32
Slide 33: Performance Outlook
PERFORMANCE OUTLOOK For personal use only carsales Domestic Outlook Our domestic core business performance in July has remained solid. We expect our domestic adjacent businesses to continue to build scale and complement this growth similar to FY18. We also expect our premium listing and promote prod
Slide 34: Appendix to June 2018
For personal use only APPENDIX TO 30 JUNE 2018 34
Slide 35: Overview of carsales Non-IFRS Financial Information
OVERVIEW OF CARSALES NON-IFRS FINANCIAL INFORMATION For personal use only 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 infor
Slide 36: Reconciliation of Reported to Adjusted NPAT
RECONCILIATION OF REPORTED TO ADJUSTED NPAT $A Millions Growth For personal use only 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 Adjustme
Slide 37: Adjusted Financials
ADJUSTED FINANCIALS $A Millions FY17 FY18 Growth % For personal use only 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 As
Slide 38: 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 % For personal use only Revenue carsales International iCar Asia 20.1%,16.5%,15.6%* 365 Financial Asset*
Slide 39: For personal use only
For personal use only