Cazoo Group Ltd · OTC:CZOOF
Cazoo — Investor Presentation (June 2022)
20 slides from Cazoo's investor presentation, Jun 7, 2022
Slide 1: Investor Presentation June 2022
Investor Presentation June 2022 1
Slide 2: Disclaimer: Forward-Looking Statements
2 Investor Presentation Disclaimer Forward - Looking Statements The statements contained or referred to in this Presentation may include “forward - looking statements” within the meaning of the “safe harbour ” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, esti
Slide 3: Contents
3 Investor Presentation Contents Progress to date and opportunity Current macroeconomic reality Our business realignment plan Trading update and 2022 guidance
Slide 4: We have proven we can buy/sell cars at scale
4 Investor Presentation We have proven we can buy/sell cars at scale, with a world - class brand and customer experience Note: Vehicles sold since launch in Dec 19, as of May 22. UK Brand Awareness as of Mar 22 per Engage Brand Tracker . Trustpilot reviews for Cazoo.co.uk. Retail Units Sold 70,000+
Slide 5: The huge market opportunity remains unchanged
5 Investor Presentation £100bn+ £200bn+ £300bn+ UK "EU Big 4" TAM Source: OC&C estimate for Europe and UK retail Used Cars market in 2019 and number of used cars sold per annum as of 2018. OC &C, CCFA, L’Argus , KBA, DAT, UNRAE, Autobiz , Faconauto , Febiac , Statistik Austria, VWE, Samar, Omnipret
Slide 6: But we are not immune to the current macroeconomic reality
6 Investor Presentation But we are not immune to the current macroeconomic reality Despite strong start to the year, we are planning for a weaker macro environment • Strong retail unit sales growth of over 80% YoY in recent months, and the continued expansion of our market share • Keenly aware of ra
Slide 7: The three goals of our business realignment plan
7 Investor Presentation The three goals of our business realignment plan Lower SG&A costs per unit while minimising the impact on growth and customer experience Achieve UK cash flow breakeven with lower retail unit sales with a stronger focus on GPU and working capital Manage costs and expenditure t
Slide 8: Reduced cash outflow between today and end of full-year 2023
8 Investor Presentation Reduced cash outflow between today and the end of full - year 2023 Overview of the key elements of our business realignment plan (1) It is expected that the combination of the initiatives included in our business realignment plan will result in cash savi ngs to our budget of
Slide 9: Headcount reduction and lower brand marketing spend
9 Investor Presentation • Making necessary rightsizing adjustments to operate near capacity on lower near - term growth assumptions • Immediate hiring freeze for all non - essential roles • Quality of our customer proposition to remain market leading Reducing existing employee headcount by c.15% and
Slide 10: Limiting capex and rationalising vehicle preparation sites
10 Investor Presentation • Freezing all non essential capex investments with stronger focus on efficiencies from current infrastructure • Growth in capacity re - aligned to match revised near - term growth expectations • Strategic decision to lease rather than own properties Limiting our capital exp
Slide 11: Modifying consumer proposition and driving GPU growth
11 Investor Presentation • Modest revisions to consumer retail proposition while mitigating impact on consumer experience • Continuing to offer best - in - class proposition with ongoing benchmarking against closest peers • No longer offer subscription service to new customers in any market from end
Slide 12: Procurement efficiencies and slower near-term growth
12 Investor Presentation • Thorough examination of suppliers to ensure optimal pricing and terms • Strategic projects underway to improve efficiencies across the entire supply chain • Clear focus on improving unit economics and reducing SG&A per retail unit sold Increasing procurement efficiencies a
Slide 13: Business update
13 Investor Presentation Q1 2022 Business update Note: The Company’s results for the fiscal quarter ended March 31, 2022, and for the period from April 1, 2022 to May 31, 202 2, are preliminary, unaudited and subject to change. (1) UK Retail GPU (Gross Profit per Unit) is derived from UK retail and
Slide 14: Liquidity position
14 Investor Presentation Cash and cash equivalents of over £400m in addition to self - financed inventory of over £200m Liquidity position Note: The Company’s results for the fiscal quarter ended March 31, 2022, and for the period from April 1, 2022 to May 31, 202 2, are preliminary, unaudited and s
Slide 15: Performance and revised 2022 guidance
15 Investor Presentation 2020 Performance and revised 2022 guidance Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of futur e results. 2021 financial information and data is unaudited and subject to change. (1) Retail G
Slide 16: UK cash flow breakeven now at earlier stage of market penetration
16 Investor Presentation UK cash flow breakeven now at earlier stage of market penetration Accelerated point of UK breakeven Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of futur e results. (1) ) UK Retail GPU (Gross
Slide 17: Summary
17 Investor Presentation Summary We have accomplished an enormous amount in the two and a half years since launch We have established a market leading platform, team, brand, and infrastructure in the UK We are acting decisively to de - risk the Company’s path to break - even and lengthen runway beyo
Slide 18: Appendix
18 Investor Presentation Appendix
Slide 19: The building blocks to increase GPU
19 Investor Presentation 2,000 Retail GPU (1) (£) The building blocks to increase GPU Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of futur e results. (1) Retail GPU defined as retail and ancillary gross profit divide
Slide 20: UK used car market
20 Investor Presentation Source: Auto Trader and Society of Motor Manufacturers & Traders (SMMT) UK used car transactions UK used car market 7.6 7.6 7.5 7.1 6.9 7.0 7.0 7.0 7.2 7.4 7.6 8.2 8.1 7.9 7.9 6.8 7.5 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Total