Autotrader Group Plc · LSE:AUTO
Autotrader — FY2024 Earnings Presentation
37 slides from Autotrader's earnings presentation, May 30, 2024
Slide 1: Full year results presentation
Auto Trader Group plc Full year results presentation Full year ended 31 March 2024 30 May 2024
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, this “presentation” shall include these slides, any oral presentations by the management of Auto Trader Group plc and any question and answer session with Auto Trader Group plc’s management. This presentation is for informational purposes only. The informa
Slide 3: Strategic overview
Strategic overview Group revenue increased by 14% and Group operating profit increased by 26%. Core Auto Trader revenue grew 12% driven by double digit revenue growth across all segments. Core Auto Trader operating profit grew by 14%, with operating profit margins expanding to 71% Average revenue pe
Slide 4: Financial results
Financial results £M (UNLESS OTHERWISE SPECIFIED) 2024 2023 % Change 1 Auto Trader 529.7 473.0 12% Autorama2 41.2 27.2 51% Group revenue 570.9 500.2 14% Auto Trader1 378.6 332.9 14% 2 Autorama (8.8) (11.2) 21% Group central costs3 - relating to Autorama acquisition (21.1) (44.1) 52% Group operating
Slide 5: Operational results
Operational results Over 75% of all minutes spent on automotive classified sites were spent on Auto Trader (2023: over 75%). >75% Cross platform visits were up 11% to 77.5 million per month (2023: 69.6 million) while minutes were up 8% to 553 million per month (2023: 514 million minutes) The average
Slide 6: Cultural KPIs
Cultural KPIs 97% Employees that are proud to work at Auto Trader remained high at 97% (March 2023: 91%) At year end we had more women than men on our Board (March 2023: five women and four men) and one 56% ethnically diverse Board member (March 2023: one). From the start of May, we increased to six
Slide 7: Financials
Auto Trader Group plc Full year results presentation Financials
Slide 8: Auto Trader: revenue
Auto Trader: revenue Average Revenue Per Retailer (‘ARPR’) per month (£)1 Revenue (£m) Y-on-Y % 67% 10% 12% +£227 +£284 Year ended 31 March is shown as 2024 Y-on-Y % 65% 9% 12% 2,721 2,210 2,437 529.7 Y-on-Y % 473.0 2022 2023 2024 432.7 14.4 30% 11.1 39.6 Number of retailer forecourts1 11.1 34.5 15%
Slide 9: Auto Trader: ARPR, stock and retailer forecourts
Auto Trader: ARPR, stock and retailer forecourts ARPR levers Live car stock and retailer forecourts Growth in Average Revenue Per Retailer per month (£) Y-on-Y average £ £886 £227 £284 retailers 5% (0%) (1%) % 67% 10% 12% Y-on-Y average live (11%) 2% 2% car stock 639 18,000 500 17,000 16,000 450 Liv
Slide 10: Auto Trader: costs and operating profit
Auto Trader: costs and operating profit Costs (£m) Operating profit (£m) Year ended 31 March is shown as 2024 Year ended 31 March is shown as 2024 Y- o n - Y % 27% 8% 8% Y- o n - Y % 88% 10% 14% Y-on-Y % 153.9 71% 70% 70% 142.6 132.0 5.9 (12%) 6.7 7.2 44.2 12% 39.6 34.5 22.3 0% 22.3 20.5 378.6 332.9
Slide 11: Autorama: revenue and costs
Autorama: revenue and costs Revenue and costs (£m) Year ended 31 March is shown as 2024 Vehicle deliveries1 £m 2024 20231 % Change Vehicle & Accessory sales 28.4 16.0 78% c.15% of vehicles were 4,295 4,616 taken on balance Commission & Ancillary 12.8 11.2 14% sheet in 2024 (2023: c.10%). Sales reven
Slide 12: Group: profit and cash flow
Group: profit and cash flow Operating profit (£m) Cash generated from operations (£m) Year ended 31 March is shown as 2024 Year ended 31 March is shown as 2024 Y- o n - Y % 88% (9%) 26% 26% 16% 70% 61% 10.4 0.2 18.3 7.5 55% 3.3 2.8 379.0 348.7 348.7 303.6 277.6 Operating D&A SBP (excl. NI) Deferred
Slide 13: Group: income statement
Group: income statement £ M ( UN L ES S O T H ER W I S E S P E C I F I E D ) 2024 2023 % Change Revenue 570.9 500.2 14% Operating costs1 (225.0) (225.1) (0%) Share of profit from joint ventures 2.8 2.5 12% Operating profit 348.7 277.6 26% Net finance costs (3.5) (3.1) 13% Profit on disposal of subsi
Slide 14: Group: net bank debt and capital allocation policy
Group: net bank debt and capital allocation policy Reconciliation of net bank debt position1 (£m) Capital allocation policy 43.4 379.0 (3.8) (2.7) (2.9) (91.5) 3.9 (80.4) (170.8) 1.3 11.3 During the period, a total of 25.2m shares (2023: 25.3m) were purchased for a consideration of £169.9m (2023: £1
Slide 15: UK car market
Auto Trader Group plc Full year results presentation UK car market
Slide 16: We have seen a record number of buyers on Auto Trader over the period
We have seen a record number of buyers on Auto Trader over the period Auto Trader consumer engagement Year ended 31 March is shown as 2024 Cross platform visits1 Average minutes spent 20242 Average per month, millions Auto Trader and other automotive websites. Average per month Y- o n- Y % 7% 1% 11%
Slide 17: Supply has gradually improved in both new and used car markets
Supply has gradually improved in both new and used car markets New car registrations (1) Used car transactions (2) 3.0 60% 9.0 60% 50% 8.0 50% 2.5 40% 40% 7.0 Number of used car transactions (m) Number of new car registrations (m) 30% 30% 2.0 6.0 20% 20% 16% 15% YoY change YoY change 13% 5.0 10% 7%
Slide 18: The average price of a used car in 2024 was £17,833
The average price of a used car in 2024 was £17,833; a like-for-like decrease of 1.3%. Days to sell remains fast Used car retail pricing Used car days to sell Year ended 31 March is shown as 2024 Year ended 31 March is shown as 2024 Like-for-like Full year 21.4% 11.0% (1.3%) 40% 45 30 days 32 days 3
Slide 19: A focused and consistent strategy
Auto Trader Group plc Full year results presentation A focused and consistent strategy
Slide 20: Since Auto Trader's IPO the business has displayed consistent execution and performance
Since Auto Trader’s IPO the business has displayed consistent execution and performance Group revenue and operating profit (£m) Cash returned to shareholders (£m) Total shareholder returns since IPO 543 Auto Trader: 225% FTSE 350 (excluding investment trusts): 60% 484 433 170 369 164 147 355 349 330
Slide 21: The car market is relatively stable and likely to grow in both volume and value
The car market is relatively stable and likely to grow in both volume and value UK car parc Used car retail pricing 37.0 3.0 £20,000 25% 36.0 £18,000 2.0 20% 35.0 £16,000 £14,000 34.0 1.0 New / (scrapped) - million 15% UK Car Parc - million Average used car price £12,000 33.0 YoY change 0.0 £10,000
Slide 22: Heritage of innovation – multiple products built on a well-invested technology platform
Heritage of innovation – multiple products built on a well-invested technology platform Reviews Price Flags Finance Messaging Valuations New Car Vehicle Check EV Hub Deal Builder CLOUD INFRASTRUCTURE PLATFORM DATA PLATFORM PRODUCT DELIVERY PLATFORM • Hos ted in G oogle C loud and deployed • Modern b
Slide 23: We're uniquely placed to support the automotive industry with our market leading position
We're uniquely placed to support the automotive industry with our market leading position Auto Trader UK and Google UK monthly search volumes1 Average last 12 months. Sample: 10 largest selling used car models in 2023 89% 13x prompted brand awareness2 8 in 10 24x 6x car buyers use Auto 6x Trader dur
Slide 24: Our strategy is consistent and we continue to make good progress on our three focus areas
Our strategy is consistent and we continue to make good progress on our three focus areas 2024 Achievements DIGITAL RETAILING Marketplace: PLATFORM • Record levels of car buyers and retailers on Auto Trader • Executed a successful pricing and product event • Enabled retailers, manufacturers and leas
Slide 25: We are well placed to support structural changes in the new car market
We are well placed to support structural changes in the new car market 2024 new car highlights Retailer: • Successfully implemented a ‘slot-based’ commercial model • Introduced pipeline stock, allowing retailers to advertise stock yet to arrive on their forecourt • Ended the year with c.2,100 paying
Slide 26: Trended valuations, our latest AT Connect module
Trended valuations, our latest AT Connect module, provides greater contextual insight on vehicle pricing Taxonomy Rich vehicle taxonomy with detailed specification Advert performance Key conversion metrics through proprietary AI benchmarks to Historic valuations understand performance relative to th
Slide 27: We have continued to scale Deal Builder
We have continued to scale Deal Builder, with c.1,100 retailers on the trial and c.16,000 deals submitted in the year Consumers can reserve a vehicle for a refundable £99, The reservation is then managed through the retailer’s portal, with the options to attach finance and part-exchange including cu
Slide 28: Culture has been a fundamental part of the changes we've made
Culture has been a fundamental part of the changes we’ve made and the results we’ve achieved Parker Review Diverse Target for Ethnic All Diversity in Senior talent engineering Leadership accelerator brought in Re-launched Evolved programme house Practical purpose - Passed 40% Connected expanded laun
Slide 29: 2025 outlook
Auto Trader Group plc Full year results presentation 2025 outlook
Slide 30: Outlook for 2025
Outlook for 2025 The new financial year has started well. We anticipate another good year of ARPR growth across all three levers. In FY24 there was some positive ARPR benefit from the Webzone disposal as on average their retailers were lower yielding, which won’t be replicated in FY25. We expect ARP
Slide 31: AutoTrader
@) & A = AutoTrader
Slide 32: Appendix
Auto Trader Group plc Full year results presentation Appendix
Slide 33: Cash flow statement
Cash flow statement £M (UNLESS OTHERWISE SPECIFIED) 2024 2023 Profit before tax 345.2 293.6 Depreciation & amortisation 18.3 14.1 Share-based payments (excl. associated NI) & deferred consideration 17.9 44.6 Share of profit from joint ventures (2.8) (2.5) Finance costs - net 3.5 3.1 Profit on dispos
Slide 34: Five year record
Five year record £M UN LES S OTH ERWIS E S TA TED 2024 2023 2022 2021 2020 Auto Trader 529.7 473.0 432.7 262.8 368.9 Autorama 41.2 27.2 - - - Revenue 570.9 500.2 432.7 262.8 368.9 Operating Costs (203.9) (181.0) (132.0) (104.0) (113.2) Group central costs1 (21.1) (44.1) - - - Share of profit from jo
Slide 35: The UK car parc increased through calendar year 2023
The UK car parc increased through calendar year 2023. The average time people hold their car decreased to 3.9 years UK car parc Frequency of transactions (years) Total number of transactions (millions) 37.0 3.0 4.2 4.2 36.0 2.0 3.9 3.8 35.0 3.5 3.5 3.5 3.5 3.4 3.4 3.3 3.4 3.5 New / (scrapped) - mill
Slide 36: Auto Trader Connect modules have been included in retailer packages over time
Auto Trader Connect modules have been included in retailer packages over time, which retailers access in our Retailer Portal or via APIs Retailer Portal APIs Auto Trader Connect Mod ul e 1 : Retail Es s ential s Mod ul e 2: Val uations Mod ul e 3: Retail Check (new) • Taxonomy / vehicle reference da
Slide 37: We issue regular market insight reports
We issue regular market insight reports which are growing in authority and profile - these are shared widely across industry and government MONTHLY MARKET INTELLIGENCE ROAD TO 2030 (2035 USED CAR RETAIL now) PRICE INDEX A report tracking the health of the new and A report tracking the used markets A