Car Group Limited · ASX:CAR
Car — Shareholder Meeting (October 2020)
40 slides from Car's shareholder meeting presentation, Oct 30, 2020
Slide 1: 2020 AGM Presentation
2020 AGM PRESENTATION 30 October 2020
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: Delivering Strong Shareholder Returns
DELIVERING STRONG SHARHOLDER RETURNS Carsales (CAR) Total Shareholder Return (TSR) v S&P ASX200 Total Return Index (AXNT) 1 carsales S&P ASX200 600% 556% 500% 400% 300% 200% 113% 100% 0% 14-Apr-10 14-Apr-11 14-Apr-12 14-Apr-13 14-Apr-14 14-Apr-15 14-Apr-16 14-Apr-17 14-Apr-18 14-Apr-19 14-Apr-20 14-
Slide 4: FY20 Highlights
FY20 HIGHLIGHTS • Delivered growth across Domestic and International businesses despite the impact of COVID-19 in H2 • Reported financial metrics lower than pcp2 primarily due to COVID-19 dealer support package • Expanded Group Adjusted EBITDA1 margin to 55%, whilst continuing to invest for the futu
Slide 5: Market-Leading Operational Metrics
MARKET-LEADING OPERATIONAL METRICS carsales is one of the largest digital automotive advertising businesses in the world ~ 760,000 cars time to sell ~ 31 million ~ 1 billion for sale reduced by 34% leads sessions around the world at any point In Australia compared to on all carsales sites around on
Slide 6: Extending Our Australian Market Leadership
EXTENDING OUR AUSTRALIAN MARKET LEADERSHIP carsales is consolidating its market leadership position in Australia 1. Daily Unique Audience1 2. Monthly Avg. time on site2 3. Total sessions3 +1.72x +2.15x +2.91x +1.69x +1.71x +2.29x 37m +2x FY18 FY19 FY20 FY18 FY19 FY20 carsales Competitor 1 Competitor
Slide 7: Response to COVID-19 and Emerging Trends
RESPONSE TO COVID-19 AND EMERGING TRENDS 7
Slide 8: Carsales' Response to COVID-19
CARSALES’ RESPONSE TO COVID-19 Our Australian customers and people have endured an extremely difficult FY20, first through the severe bushfire season and later the global pandemic. Throughout the pandemic, the business has been focused on three priorities: 1. Protecting our people 2. Supporting our
Slide 9: Trends Emerging from COVID-19
TRENDS EMERGING FROM COVID-19 Strong growth in car ownership demand and traffic to our platform through COVID-19 is attributable to three broad factors 1. Online migration has 2. Alternative transport 3. Government accelerated options initiatives Key observations from a recent carsales Key observati
Slide 10: Group Financial Review
GROUP FINANCIAL REVIEW 10
Slide 11: Strong Track Record of Sustained Growth
STRONG TRACK RECORD OF SUSTAINED 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 ($m) Adjusted EBITDA1 ($m) Adjusted NPAT 1 ($m) CAGR CAGR
Slide 12: Increasing International Contribution Driving Growth
INCREASING INTERNATIONAL CONTRIBUTION DRIVING GROWTH • International now contributes more than 24% of look-through1 revenue and 19% of look-through1 EBITDA. • International look-through1 revenue and EBITDA grew 13% and 20% respectively in FY20 despite the impact of COVID-19 in H2. Look-through 1 Adj
Slide 13: Summary Revenue & EBITDA Performance
SUMMARY REVENUE & EBITDA PERFORMANCE Full Year Ending $A Millions Growth Revenue 1 30 June 2020 FY19 FY20 $'s % • Full year Adjusted Revenue2 up 1% • Solid underlying Data, Research Adjusted Revenue 2 on pcp. and Services result excluding exit of some low margin contracts, Online Advertising 300.1 2
Slide 14: Good Expansion in Domestic and International Margins
GOOD EXPANSION IN DOMESTIC AND INTERNATIONAL MARGINS Good growth in overall margin from 52% to 55%, driven by expansion across all segments, particularly in the Domestic core business. 0.4% 54.8% 2.0% 0.1% 0.2% 52.2% FY192 Adjusted Domestic Core Business Other Domestic Investments Asia Latin America
Slide 15: Adjusted Net Profit After Tax Summary
ADJUSTED NET PROFIT AFTER TAX SUMMARY Full Year Ending $A Millions Growth 1 • D&A increased by $4.8m due to increased depreciation of 30 June 2020 FY19 FY20 $'s % 2 building fit outs, software assets and other growth capex - Adjusted Revenue 417.5 423.1 5.6 1% this investment supports Group wide gro
Slide 16: Strong Cash Flow from Operations and Robust Balance Sheet
STRONG CASH FLOW FROM OPERATIONS AND ROBUST BALANCE SHEET Cash Flow2 (column) and conversion Capital expenditure ($’m) • Excellent conversion of EBITDA to cash from Reported EBITDA to cash (line) flow demonstrates attractive working capital profile of the business, good cash 230.0 210.0 216.1 140% c
Slide 17: Carsales Australia
CARSALES AUSTRALIA 17
Slide 18: Dealer
DEALER Dealer Adjusted Revenue1 up 10% to $168.7m +10% Depth Revenue CAGR ($m) 153.9 168.7 146.4 (reported) 21% FY19 FY20 • Breadth of product offering and resilience of used car business FY15 FY16 FY17 FY18 FY19 FY20 underpinned solid Dealer performance. • The used car lead volumes a key growth dri
Slide 19: Private
PRIVATE Private revenue down 5% to $77.8m -5% Instant Offer optimisation Net promoter score1 Lead to sale conversion1 ($m) +5.8x +33% 82.1 77.8 FY19 FY20 • Solid growth of 7% in H1 and a decline of 17% in H2. Growth in H1 reflective of growth in core private business, Instant Offer FY19 FY20 FY19 FY
Slide 20: Media
MEDIA Media Adjusted Revenue2 down 22% to $50.2m VFACTS reported new car sales1 -14% -22% 1.13 1.18 1.18 1.20 1.10 0.95 ($m) FY15 FY16 FY17 FY18 FY19 FY20 64.1 49.0 New car sales in FY20 declined 14% on pcp. 50.2 (reported) Programmatic inventory sales volume2 FY19 FY20 + 4.2x • Very challenging adv
Slide 21: Data Research & Services
DATA RESEARCH & SERVICES DR&S Adjusted Revenue1 flat on pcp to $43.3 It’s Odometer Day! +0% Update the odometer reading for your Mazda in your carsales garage to find out how much it's worth and more We'll keep you updated on your car’s demand... ($m) 39.3 43.2 43.3 (reported) FY19 FY20 • Revenue gr
Slide 22: Carsales International
CARSALES INTERNATIONAL
Slide 23: Asia – Encar (South Korea)
ASIA –ENCAR (SOUTH KOREA) Impressive performance given challenging macroeconomic conditions $A Millions Growth Constant • While South Korea has clearly been impacted by COVID-19, FY191 FY20 $'s % Currency (%) economic activity to date has been significantly less impacted than most other countries. R
Slide 24: Latin America – Webmotors (Brazil)
LATIN AMERICA – WEBMOTORS (BRAZIL) Pro-forma $A Millions Growth Constant Strong underlying growth rates as webmotors 100% FY19 FY20 $'s % Currency (%) consolidates its no.1 market position. H2 Revenue1 67.8 74.6 6.8 10% 17% impacted by COVID-19. 1 EBITDA 29.3 30.4 1.1 4% 10% • Finance revenue now a
Slide 25: Latin America
LATIN AMERICA Strong growth in Mexico, performance in Chile and Argentina impacted by macro conditions Visits 2 Leads 2 -9% • Weaker results in Chile driven by $A Millions Growth Constant macroeconomic challenges posed by the +15% Currency (%) pandemic and civil unrest. Lead volumes FY191 FY20 $'s %
Slide 26: Strategy Update
STRATEGY UPDATE
Slide 27: Carsales Strategy
CARSALES STRATEGY OUR PURPOSE: We empower people to move freely through our world-leading marketplaces Value added services Digital marketplaces Future horizons We are focused To build a compelling ecosystem To grow our global leadership Leveraging consumer insights and of services that support deal
Slide 28: Introducing Placie
INTRODUCING PLACIE An app that helps customers seamlessly combine, compare, & book 8+ modes of transport to get from place to place faster, cheaper & smarter. More than a regular journey planner: • One stop (mobility) shop for consumers to save time, money and effort • Real-time data for on-demand a
Slide 29: Growth in the Mobility Marketplace
GROWTH IN THE MOBILITY MARKETPLACE Transport mega trends are carsales is a world leader in Strong Mobility as a Service changing how we move digital marketplaces (MaaS) growth outlook globally • Proliferation of new transport options • One of Australia’s biggest tech enabled businesses • Global Tran
Slide 30: Transport Partners and Demand Relationships
TRANSPORT PARTNERS AND DEMAND RELATIONSHIPS • Helps local and state governments build smarter cities; using technology to make our cities more liveable • Enables private transport operators to drive volume and brand recognition • Market leading channel and technology brand relationships Private Tran
Slide 31: FY21 Trading Observations
FY21 TRADING OBSERVATIONS
Slide 32: FY21 Trading Observations - Update
FY21 TRADING OBSERVATIONS - UPDATE Overall Summary • COVID-19 continues to create uncertainty in our operating environment • We will continue to focus on managing costs • Remain committed to investing in product and market leading positions • Business is well diversified across geography and product
Slide 33: Specific Trading Observations - Update
SPECIFIC TRADING OBSERVATIONS - UPDATE Given the continuing uncertainty due to COVID-19, we are not providing specific guidance on our financial expectations for FY21. We do, however provide the following current trading observations. Australia • Dealer: • Overall lead volumes in Q1 FY20 have been i
Slide 34: Appendix
APPENDIX
Slide 35: 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 36: Reconciliation of Reported to Adjusted NPAT
RECONCILIATION OF REPORTED TO ADJUSTED NPAT FY191 FY20 $A Millions Revenue EBITDA NPAT Revenue EBITDA NPAT Reported Financials (continuing operations) 417.5 212.9 132.1 395.6 202.0 119.9 Dealer Support Package2 - - - 27.5 27.5 19.3 2 Restructuring and M&A transaction costs - 1.8 1.3 - 2.3 2.0 2 Bad
Slide 37: Adjusted Financials - Continuing Operations
ADJUSTED FINANCIALS - CONTINUING OPERATIONS FY191 FY20 Growth % $A Millions Reported Adjustments Adjusted Reported Adjustments Adjusted Reported Adjusted Revenue 417.5 - 417.5 395.6 27.5 423.1 (5.2%) 1.3% Total operating expenses 204.6 (5.0) 199.6 193.6 (2.3) 191.3 5.4% 4.2% EBITDA 212.9 5.0 217.9 2
Slide 38: Carsales Look-Through P&L Analysis
CARSALES “LOOK-THROUGH4” P&L ANALYSIS FY191 FY20 Growth % Look Look Look $A Millions % Owned Reported Underlying5 4 % Owned Reported Underlying5 4 Reported Underlying5 4 Through Through Through Adjusted Revenue2 carsales International Brazil 30% Equity Acc'ted 67.8 20.3 30% Equity Acc'ted 74.6 22.4
Slide 39: Impact of AASB 16 Leases Adoption
IMPACT OF AASB 16 LEASES ADOPTION FY19 FY20 Excluding AASB16 Including Excluding AASB16 Including $A Millions AASB16 Adjustment AASB16 AASB16 Adjustment AASB16 1 Adjusted Revenue 417.5 - 417.5 423.1 - 423.1 1 Adjusted EBITDA Online Advertising 158.4 4.1 162.6 164.0 4.2 168.3 Data, Research and Servi
Slide 40: 40
40