Autotrader Group Plc · LSE:AUTO
Autotrader — H1 2019 Earnings Presentation
29 slides from Autotrader's earnings presentation, Nov 8, 2018
Slide 1: Half year results presentation
Half year results presentation Six months ended 30 September 2018 8 November 2018 = 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Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of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 or by reading this d
Slide 3: Financial highlights
Financial highlights* +7% +10% 68% 412% 412% 1.31x £81m Revenue: up 7% to £176.8 million (H1 2018: £165.0 million) Operating profit*: up 10% to £120.6 million (H1 2018: £109.9 million) Operating profit margin*: up 1% point to 68% (H1 2018: 67%). Operatingcost growth of 2% Earnings and distribution*:
Slide 4: Key drivers
Key drivers +£152 -3% -0% 247m 585m 802 ARPR: up £152 to £1,826 on average per month (HI 2018: £1,674), with growth from product and price offsetting a reduction from stock Physical car stock on site: as anticipated, down 3% to 437,000 cars (H1 2018: 451,000) on average Retailer forecourts: the aver
Slide 5: Revenue
Hi Hi Hi rade reven Revenue Revenue (£m) Six months ending 30 September 2018 is shown as HI! 2019 176.8 165.0 153.9 ~ H12017 H12018 H12019 Trade »Consumer services = Manufacturer & Agency Consumer services 28) 1 2019: Retailer (£144,Im); Home Trader (£5.4m|; Other (£0.6m) 4: Hi 2019: Private (et1.0m
Slide 6: ARPR growth underpinned by product growth which offset an anticipated stock headwind
ARPR growth underpinned by product growth which offset an anticipated stock headwind ARPR levers Physical car stock and retailer forecourts Growth in Average Revenue Per Retailer per month (£) 16,000 480 o @& Da @ aso o & > > 700 ag Live physical car stock ('000) 142 $ 14,000 420 g © 13,000 “ee 86 >
Slide 7: Costs
Costs Costs (£m)* Six months ending 30 September 2018 is shown as HI! 2019 *Note: Costs for HI 2017 and HI 2018 have been restated following the implementation of IFRS 16 wis o °° year growth 52.9 55.1 56.2 © eee (0.4) H12017 H12018 H12019 = People costs = Marketing = Other costs") aD&A mExceptional
Slide 8: Profit and cash flow
Profit and cash flow Operating profit (£m)* Six months ending 30 September 2018 is shown as HI! 2019 * Note: Operating profit for H1 2017 and HI 2018 has been restated following the implementation of IFRS 16 iu @ O@ © year growth 68% 66% 67% H12017 H12018 H12019 mums Operating profit === Operating p
Slide 9: Income statement
Income statement H12019 H12018* on-year (restated) % Revenue 176.8 165.0 7% Administrative expenses (56.2) (55.1) (2%) Operating profit 120.6 109.9 10% Finance costs - net (6.1) (4.6) (33%) Profit before taxation 114.5 105.3 9% Taxation (21.9) (20.7) (6%) Profit for the year attributable to equity o
Slide 10: Net external debt and capital allocation
Net external debt and capital allocation Reconciliation of net external debt " (£m) 338.7 129.0 (0.8) (1.6) Leverage (2) (3.3) (19.8) (3.3) (37.9) (43.1) 0.1 319.4 March 2018 Cash Capex Lease Netinterest_ Taxpaid Refinancing Dividends Sharebw- Proceeds September generated payments fe backs\inc from
Slide 11: = AutoTrader
= AutoTrader
Slide 12: The new car market remains under pressure but used car transactions look to be stabilising
The new car market remains under pressure but used car transactions look to be stabilising New car registrations" Used car transactions 2) 3,000 30% 9,000 3 3 8,500 S 2,500 20% 2% ra Fa Fa s 5 3 € 3 2,000 tox g 8,000 8 2 3 | | é g 2 500 a8 _ Neal BL I_. - &€ 5 7,500 5 I iT | s 8 2 2 od z 2 3 2 1,000
Slide 13: Underlying used car trade prices are still increasing through petrol vehicles whilst diesel remains stable
Underlying used car trade prices are still increasing through petrol vehicles whilst diesel remains stable Auto Trader Retail Price Index Like-for-like price growth (%) £12,000 £10,000 £8,000 £6,000 Average car price £4,000 £2,000 £0 ag < 5 2 33 < oa» oO a 0 ¢ 2 5 a's mummn Year-on-year like for lik
Slide 14: Key drivers
Key drivers
Slide 15: Share of visits
(1) Share of visits is a custom metric based on Comscore visits (000) and is calculated by dividing Auto Trader’s total visit volume by the entire custom-defined competitive set’s total visit volume. Comscore MMX® Multi-Platform, Total Audience, Custom-defined list includes: Auto Trader, Gumtree - M
Slide 16: Audience and cross platform minutes versus competitors
(1) Comscore MMX® Multi-Platform, Total Audience, Custom-defined list includes: ‘Other Motoring Portals’ - Pistonheads, Parkers, AutoExpress, What Car?, CarGurus, Motors.co.uk, TopGear, Carwow, Exchange and Mart, RAC Cars, Carsnip, eBay Motors UK, Trusted Dealers, VCars, ‘Dealer Sites’ - Evans Halsh
Slide 17: Product growth driven by higher level packages and Dealer Finance
Product growth has been driven by increased penetration of our higher level packages and the monetisation of Dealer Finance through our April event Dealer Finance Retailers paying for Dealer Finance, average September 2018 > 5,000 car retailers paying to advertise their own Dealer Finance > 300 van
Slide 18: Managing forecourt penetration continues to increase
Managing forecourt penetration continues to increase Number of forecourts with one of our Managing products New Retail Check product Average number in the month of September Six months ended 30 September 2018s shown as HI 2019 Information ona specification adjusted _ Penetration @ C 20%) @® model -
Slide 19: Delivering greater value for car manufacturers through InSearch
Delivering greater value for car manufacturers through InSearch InSearch impressions served Total impressions servedin the period Period ended 30 September 2018 is shownas HI 2019 a 3.2x more impressions 7 / / / / / Helping manufacturers and retailers engage with in-market consumers at the early sta
Slide 20: Outlook
Outlook = AutoTrader
Slide 21: 2019 outlook
2019 outlook The strong first half means revenue growth for the full year is likely to exceed previous guidance. ARPR growth to date has outperformed our expectations despite the anticipated stock headwind. Product will continue to be the largest contributor to growth in ARPR, with growth for the fu
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A = AutoTrader
Slide 23: Appendices
Appendices = Autotrader
Slide 24: The UK car parc continues to grow and transactions remain at near record highs
The UK car parc continues to grow and whilst turn has increased transactions remain at near record highs The UK car parcisin long term growth because cars are lasting longer and scrappage rates have fallen significantly below new car sales levels Consumers change their car every three years or so (l
Slide 25: Impact of IFRS on the income statement
Impact of IFRS 16 on the income statement Six months ended 30 September 2018 Six months ended 30 September 2017 Income statement Before Before adoption of Impact of Amounts adoption of Impact of Amounts IFRS 16 IFRS 16 reported IFRS 16 IFRS 16 reported (£m) (£m) (£m) (£m) (£m) (£m) Revenue 176.8 = 1
Slide 26: Cash flow statement
Cash flow statement H1 2019 H1 2018* (restated) £m £m Profit before tax 14.5 105.3 Depreciation and amortisation 4.5 4.6 Share-based payments charge (exc NI) 2.6 1.6 Finance costs - net 61 4.6 Changes in working capital 1.3, (1.0) Cash generated from operations 129.0 115.1 Tax paid (19.8) (18.6) Cap
Slide 27: Notes
Notes = AutoTrader 27
Slide 28: Notes
Notes = AutoTrader 28
Slide 29: a AutoTrader
a AutoTrader