Slide 1: Full Year Results Presentation
Full Year Results Presentation Year Ended 30 June 2021
Slide 2: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer Non-IFRS Financial Information The material in this presentation has been preparation of such statements, actual carsales' results are reported under prepared by carsales.com Limited (ASX: results may vary in a material manner. International Financial R
Slide 3: Contents
Contents Performance & Market Summary 4–6 Financial Review 7 – 13 carsales Australia 14 – 19 carsales International 20 – 27 Strategy Update 28 – 36 FY22 Outlook 37 – 38 Appendix 39 – 45 3
Slide 4: Performance & Market Summary
Performance & Market Summary
Slide 5: FY21 Highlights
FY21 Highlights REVENUE EBITDA NPAT $438m $254m $153m Adjusted1 4% Adjusted1 10% Adjusted1 11% $427m $241m $131m Reported 8% Reported 20% Reported 9% • Good earnings growth across our Domestic and International businesses despite the impact of COVID-19 lockdowns • Expanded Group Adjusted EBITDA1 mar
Slide 6: Operating Metrics
Operating Metrics Metrics reflect the value we create for our customers and our leading position in key markets 672k 28% 1.1bn 42m Online @ 30 Jun 12% Improvement Worldwide 17% Worldwide 35% CARS ONLINE1 TIME TO SELL2 SESSIONS3 LEADS4 614k 280k 88% 10x In Garage 27% Cars inspected 38% More than no.2
Slide 7: Group Financial Review
Group Financial Review
Slide 8: Strong Track Record of Growth
Strong Track Record of Growth Well positioned to continue delivering long-term shareholder value through world-class capability, exposure to international growth markets and investment in new products and services ADJUSTED REVENUE1 ADJUSTED EBITDA1 ADJUSTED NPAT1 CAGR 8% CAGR 11% CAGR 7% 153 254 422
Slide 9: Look-through Results
Look-through Results 1 International look-through1 revenue and EBITDA grew 18% and 20% respectively LOOK-THROUGH1 ADJUSTED REVENUE2 LOOK-THROUGH1 ADJUSTED EBITDA2 CAGR 8% CAGR 10% 450 261 413 424 237 385 220 19% 24% 212 20% 22% 18% 326 15% 179 14% 15% 11% 8% 82% 81% 85% 80% 78% 76% 86% 85% 89% 92% F
Slide 10: Summary Revenue & EBITDA
Summary Revenue & EBITDA Year Ending $A Millions Growth Constant Revenue 30 June 2021 FY201 FY21 #039;s % Currency • Delivered 4% growth in Adjusted Revenue2 2 Adjusted Revenue • Solid results from Dealer segment reflecting continued market leadership Online Advertising 296.7 304.0 7.3 2% 2% • Growth i
Slide 11: Good domestic & international margin performance
Good domestic & international margin performance Strong margin performance across Domestic and LATAM segments, Asia impacted by one-off marketing investment 2.1% (0.8%) 1.0% 58.1% Domestic • Domestic core margin expansion by good growth in high incremental margin products and strong operating cost 0
Slide 12: Adjusted Net Profit After Tax Summary
Adjusted Net Profit After Tax Summary Year Ending $A Millions Growth 1 30 June 2021 FY20 FY21 #039;s % 2 • D&A increased by $3.7m due to increased depreciation of Adjusted Revenue 421.6 437.8 16.2 4% building fit outs and software assets. The software Operating expense 189.8 183.6 6.2 3% investment con
Slide 13: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet (Excludes Trader Interactive Acquisition Impact and Capital Raise) CASHFLOW CONVERSION CAPEX ($m) Cashflow1 EBITDA to cash conversion • Excellent conversion of EBITDA to cash flow 255 reflects the attractive working capital profile of the business and good c
Slide 14: carsales Australia
carsales Australia
Slide 15: Domestic Revenue - Dealer & Media
Domestic Revenue - Dealer & Media DEALER ADJUSTED REVENUE1 UP 6% TO $178.1m MEDIA ADJUSTED REVENUE1 DOWN 5% TO $47.5m 178.1 168.7 50.2 47.5 170.3 (reported) 47.0 (reported) 6% 5% FY20 FY21 FY20 FY21 • Solid dealer performance supported by a buoyant automotive market, • Reduction in revenue reflects
Slide 16: Domestic Revenue - Private & DR&S
Domestic Revenue - Private & DR&S 3 PRIVATE REVENUE UP 1% TO $78.5m DR&S3 ADJUSTED REVENUE1 DOWN 1% TO $42.8m 77.8 78.5 43.3 42.8 40.4 (reported) 1% 1% FY20 FY21 FY20 FY21 • Core Private2 revenue growth of 26%, driven by strong growth in • Revenue growth impacted by intentional exit of our lower mar
Slide 17: Market Observations
Market Observations Strong profit environment for dealers despite fluctuating inventory 1. LOW BUT GROWING INVENTORY 2. IMPROVING NEW CAR SALES VOLUMES 3. INCREASING DEALER PROFITABILITY • Automotive supply conditions improved • New car sales remain below historical • Strong demand for new and used
Slide 18: Extending Our Market Leadership
Extending Our Market Leadership Quarterly Lead Over Competitor B1 Full Year Lead Over Competition2 carsales had a record traffic year recording the following metrics 6.8x 375m 8.1x Sessions 7.5x 7.0x 6.0x Total sessions in FY21 up 21% on pcp1 Q1 Q2 Q3 Q4 C B A carsales 4.4m Average monthly unique au
Slide 19: Australia FY21 Key Focus Areas
Australia FY21 Key Focus Areas Continuing to deliver on our strategic objectives Key Strategic Objectives FY21 Focus Areas • Grow ROI for dealers on core transaction products Launch dealer ratings on details pages to improve lead conversion • Increase penetration and usage of listing depth Expand us
Slide 20: carsales International
carsales International
Slide 21: USA - Trader Interactive
USA - Trader Interactive Anticipated completion in early September 2021 TI is a leading platform of non-automotive marketplaces, providing digital marketing solutions and services across RV, powersports, truck and equipment industries in the United States H1 CY21 FINANCIAL SUMMARY (UNAUDITED) FY21 P
Slide 22: South Korea - Encar
South Korea - Encar Another excellent year for Encar, supported by expansion of new products and services FINANCIAL SUMMARY FY21 PERFORMANCE COMMENTARY • Strong financial performance with revenue growth of 21%2 and $A Millions Growth Constant EBITDA growth of 12%2 1 FY20 FY21 #039;s % Currency • Encar
Slide 23: Brazil - webmotors
Brazil - webmotors webmotors continues clear no. 1 position by accelerating core volume and expanding services FINANCIAL SUMMARY FY21 PERFORMANCE COMMENTARY • Excellent financial performance in local currency with Pro-forma $A Millions Growth Constant unfavourable exchange rates impacting AUD growth
Slide 24: Latin America
Latin America Strong operating metrics and cost control help improve profitability in our Latin American markets Financial Performance Visits Leads Commentary +66% +112% • Solid revenue performance with $A Millions Growth Constant improving Q4 run-rates. Sound cost discipline led to excellent EBITDA
Slide 25: Market Observations
Market Observations International markets have been resilient through challenging conditions SOUTH KOREA (ENCAR) US (TRADER INTERACTIVE) BRAZIL (WEBMOTORS) • Strong pandemic response has resulted • With the number of new COVID cases • Despite difficult COVID conditions in minimal disruption to the t
Slide 26: Strong International Market Leadership
Strong International Market Leadership Key industry metrics are positive during challenging trading conditions SOUTH KOREA (ENCAR) US (TRADER INTERACTIVE) BRAZIL (WEBMOTORS) • More than 24% of the Korean • TI is the clear market leader in • webmotors extended its lead over the population visited Enc
Slide 27: International FY21 Key Focus Areas
International FY21 Key Focus Areas Investing in new products and leveraging global technology platform has driven growth Key Strategic Objectives FY21 Focus Areas Open new Guarantee sites in strategic locations and continue increasing utilisation by enhancing efficiency at sites to allow • Increase
Slide 28: Strategy Update
Strategy Update
Slide 29: carsales' Strategy
carsales’ Strategy Our purpose: Making buying and selling a great experience Digital Marketplaces Value-added Services Future Horizons To grow our leadership in digital To build a compelling ecosystem of Leveraging consumer insights and classified advertising markets services that support our custom
Slide 30: Australia FY22 Key Focus Areas
Australia FY22 Key Focus Areas Investing in improved customer experience and value-based outcomes to underpin future growth Key Strategic Objectives FY22 Focus Areas • Grow ROI for dealers on core transaction products • Depth product enhancements, and expand usage of recurring, no- • Increase penetr
Slide 31: Private – Dynamic Pricing
Private – Dynamic Pricing Our dynamic pricing strategy aims to better align the price charged with value delivered DYNAMIC PRICING PHASE 1 DYNAMIC PRICING PHASE 2 • carsales has delivered strong yield growth from tiered pricing of its private • Change the ad creation process to ask for the listings
Slide 32: Digital Car Retailing
Digital Car Retailing COVID-19 has accelerated the willingness of consumers to buy and sell used cars online Demand for a full digital retail We have conducted research We are creating carsales Select, experience is growing to understand the drivers a new digital used car offering • 37% of consumers
Slide 33: Digital Car Retailing
Digital Car Retailing In FY22, carsales will launch a differentiated digital product experience called carsales Select. We are focused on helping dealers to bring more of the car buying process online Pre-negotiated Certified Instantly 7-day money-back 3-month price inspection report reserve online
Slide 34: Digital Car Retailing
Digital Car Retailing Encar’s home delivery service builds on inspection services, moving more of the buying process online Find cars Car undergoes Deposit is The vehicle is Consumer has 7 eligible for 105 point made to Encar delivered to days to decide to home delivery inspection who hold in consum
Slide 35: International FY22 Key Focus Areas
International FY22 Key Focus Areas Investing in products and leveraging global technology platform to underpin the growth Key Strategic Objectives FY22 Focus Areas • Reposition Encar as a vehicle trading platform • Increase the number of Guarantee sites and optimise the • Increase penetration and us
Slide 36: Our Focus on Sustainability
Our Focus on Sustainability We are committed to driving continuous improvement across our six sustainability pillars FY21 Highlights Our People Environment • 95% of our people have confidence in • We embarked on attaining Climate carsales’ response to the COVID-19 Active certification, with the goal
Slide 37: FY22 Outlook
FY22 Outlook
Slide 38: FY22 Outlook
FY22 Outlook The outlook statement provided below excludes the impact of the acquisition of Trader Interactive. In FY21, the carsales Domestic business recovered the declines in leads and private ad volumes following prolonged lockdowns and retail closures in the first half of the year. While curren
Slide 39: Appendix
Appendix
Slide 40: Overview Of Carsales Non-IFRS Financial Information
Overview Of Carsales Non-IFRS Financial Information What is IFRS and non-IFRS financial information presented is sourced directly presentations in order to allow the reader to information? from financial information prepared in clearly reconcile between the IFRS and non- accordance with all relevant
Slide 41: Reconciliation Of Reported To Adjusted
Reconciliation Of Reported To Adjusted FY201 FY21 $A Millions Reported Adjustments Adjusted Reported Adjustments Adjusted Revenue 394.1 27.5 421.6 427.2 10.7 437.8 Operating expense 192.1 (2.3) 189.8 185.7 (2.0) 183.6 EBITDA 202.0 29.8 231.8 241.5 12.7 254.2 EBITDA margin 51.3% 55.0% 56.5% 58.1% Dep
Slide 42: Reconciliation Of Reported To Adjusted NPAT
Reconciliation Of Reported To Adjusted NPAT 1 FY20 FY21 $A Millions Revenue EBITDA NPAT Revenue EBITDA NPAT Reported Financials 394.1 202.0 119.9 427.2 241.5 130.7 Dealer Support Package 27.5 27.5 19.3 10.7 10.7 7.5 Restructuring and M&A transaction costs - 2.3 2.0 - 2.0 1.5 Hedge Close out - - - -
Slide 43: Look-through P&L (AUD)
“Look-through4” P&L (AUD) FY201 FY21 Growth % $A Millions Consolidated Look-through Consolidated Look-through Consolidated Look-through Domestic Core 299.9 299.9 313.3 313.3 4% 4% 3 Domestic Investments 40.2 31.3 33.6 27.0 (17%) (14%) Total Domestic 340.1 331.2 346.9 340.3 2% 3% Brazil n/a 22.4 n/a
Slide 44: Look-through P&L (Constant Currency)
“Look-through4” P&L (Constant Currency) FY20 FY21 Growth % $A Millions Consolidated Look-through Consolidated Look-through Consolidated Look-through Domestic Core 299.9 299.9 313.3 313.3 4% 4% 3 Domestic Investments 40.2 31.3 33.6 27.0 (16%) (14%) Total Domestic 340.1 331.2 346.9 340.3 2% 3% Brazil
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