Slide 1: Half Year Results Presentation
Half Year Results Presentation Half year ended 31 December 2022
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 1 Performance Summary 4 - 13 2 Group Financial Review 14 - 19 3 Operating Segments Review 20 - 29 4 Strategy Update 31 - 37 5 Appendix 38 - 45 3
Slide 4: Performance Summary
Performance Summary
Slide 5: Strong First Half Results
Strong First Half Results Strategy execution has underpinned strong revenue and earnings growth along with margin expansion • Strong pro-forma1 revenue and EBITDA growth combined with EBITDA margin expansion to 54.4% • Results reflect continued execution of strategy and long-term growth initiatives
Slide 6: Operational Highlights
Operational Highlights Metrics demonstrate the value being delivered by our global marketplaces Marketplace Highlights Dealer Highlights Consumer Highlights 2.2 million 48 thousand 9 billion Vehicles online1 Subscribed dealers2 Page views3 Arrows show change vs. pre-pandemic 610 million 200 thousand
Slide 7: We Operate in Huge Addressable Markets
We Operate in Huge Addressable Markets Increasing our penetration of large addressable markets Market Share (revenue / TAM1) $2.6 billion TAM: $16 billion $9 billion $3.2 billion $550 million 12% 6% FY15 LTM Market Share $500 million 7 Refer to slides 45-46 for Total Addressable Market (TAM) calcula
Slide 8: With Strong Leadership Positions
With Strong Leadership Positions Our leadership positions generate meaningful network effects delivering the strongest value proposition for consumers and dealers Traffic (m) Traffic (m)1 Traffic (m) Traffic (m) 25 9 4 16 7.2x 2.9x 10 4.3x 1.6x 3 3 1 #2 carsales #2 TI #2 Encar #2 webmotors Inventory
Slide 9: Our Strategy
Our Strategy Our purpose: Making buying and selling a great experience Digital Marketplaces Digital Marketplaces Value-added Services Value-added Services Future Horizons Future Horizons To grow our leadership in digital To build a compelling ecosystem of Leveraging consumer insights and classified
Slide 10: Drives Clear Key Priorities
Drives Clear Key Priorities Our strategy guides our priorities across our global marketplaces Market Digital Dynamic Media & Future Leadership Transactions Pricing Membership Horizons Expand the leadership Increase the Alignment of price Connect advertisers to Leverage insights and positions of our
Slide 11: With Strong Execution
With Strong Execution We have executed on our key growth initiatives with new products released and more to follow in H2 ✓ March 1 Lead Amplifier 2 Price Rise • New feature in the automated email that consumers receive • In February all dealers notified of a when placing a lead high single-digit pri
Slide 12: Delivered Compelling Double-Digit Growth Over 15 Years Through Different Economic Cycles
Delivered Compelling Double-Digit Growth Over 15 Years Through Different Economic Cycles Pro-forma1 Financial Performance (AUDm) 800 Revenue EBITDA Revenue CAGR: 700 15% 600 500 EBITDA 400 CAGR: 16% 300 200 100 0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 12 (1)
Slide 13: Strong Results Reinforce a Positive Outlook for FY23
Strong Results Reinforce a Positive Outlook for FY23 Outlook statement1 Pro-forma Basis2 We expect to deliver good growth in Adjusted Revenue4 and Adjusted EBITDA4 in FY23 on a Pro-forma Basis Actual Basis3 We expect to deliver very strong growth in Adjusted Revenue4, Adjusted EBITDA4 and Adjusted N
Slide 14: Group Financial Review
carsales @)com lid Group Financial Review
Slide 15: 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 Pro-forma1 Revenue ($m) Pro-forma1 EBITDA ($m) Adjusted NPAT2 ($m) Adjusted EPS3 (cent
Slide 16: P&L Summary
P&L Summary Actual Basis1 Pro-forma Basis1 • Excellent growth in underlying revenue and EBITDA represented by double digit growth in $A Millions H1 FY222 H1 FY23 Growth% H1 FY22 H1 FY23 Growth% pro-forma1 metrics Adjusted Revenue 3 242.2 331.7 37% 337.6 388.4 15% Operating expense 116.1 153.9 33% 15
Slide 17: Segment Performance
Segment Performance Expanding margins and delivering double digit revenue and earnings growth Pro-forma Basis1 • Australia2 - strong revenue and EBITDA result driven by double digit growth across the Private, Dealer and $A Millions H1 FY22 H1 FY23 Growth % CC %4 Media revenue segments. Achieved marg
Slide 18: EBITDA Margin Summary
EBITDA Margin Summary • Reflects a strong revenue result and continued discipline in managing costs. Margins continue to expand in spite of an inflationary cost environment, a low comparative cost base in H1 FY22 and continued investment in key growth initiatives including Instant Offer marketing •
Slide 19: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet Cash flow conversion Leverage2 and Net debt Capex • Good conversion of EBITDA to cash • Net debt and leverage ratio increase • Continued investment in new reflects the attractive working capital reflects incremental debt drawn down products and technology to
Slide 20: Operating Segments Review
carsales@)com lid Operating <a Segments Satan, Review
Slide 21: Australia - Market Observations
Australia - Market Observations Inventory is normalising and demand is strong with growth on pre-pandemic levels and pcp New Car Sales (m)1 Inventory (000)2 Private & Dealer Leads +2% -6% +10% +3% +35% +5% 202 1.06 1.05 1.08 191 141 2019 2021 2022 Dec-19 Dec-21 Dec-22 H1 FY19 H1 FY22 H1 FY23 Time to
Slide 22: Australia - Dealer & Private
Australia - Dealer & Private Dealer Private Revenue Revenue $94.6m $43.9m 10% 39% • Strong performance driven by resilient demand for used cars • Record private seller ad volumes due to a strong private seller and yield growth which included the benefit from the market and increasing our market shar
Slide 23: Australia - Media & Data, Research & Services
Australia - Media & Data, Research & Services Media Data, Research & Services Revenue Revenue $28.3m $22.3m 10% 2% • Delivered double digit revenue growth for the fourth • Resilient result reflects the continued strength of the Redbook consecutive half year brand as the market leader in vehicle spec
Slide 24: carsales Investments
carsales Investments carsales Investments Revenue $29.9m 11% • Good revenue result reflects double digit growth in our adjacent inspections and tyres markets. Continue to build a strong value proposition in the wholesale tyre market • Profitability in the segment impacted by investment in Placie and
Slide 25: International Market Observations
International Market Observations Inventory levels improving in the US and Brazil where consumer engagement remains strong against pre- pandemic levels. Solid consumer engagement in a tighter Korean credit market Visits (m)1 Leads (m)2 Inventory (000)3 1,400 1,200 1,000 +19% +50% 800 600 400 Jan-19
Slide 26: Americas - Trader Interactive
Americas - Trader Interactive Improving inventory levels, strong customer acquisition and yield improvements Financial summary (Pro-Forma 100%)1 Performance commentary H1 FY22 H1 FY23 Growth% • Excellent financial performance supported by strong yields and Revenue 69.6 77.3 11% continued growth in c
Slide 27: Asia - Encar
Asia - Encar Increased adoption of premium products driving continued growth Financial summary Performance commentary H1 FY221 H1 FY23 Growth% Strong financial performance across revenue and EBITDA which has Revenue 38.5 43.2 12% been driven by strong growth from three key products: KRWb Adjusted EB
Slide 28: Americas - webmotors
Americas - webmotors Very strong revenue and EBITDA growth driven by strong volumes and yield expansion Financial summary (Pro-forma 100%) Performance commentary H1 FY22 H1 FY23 Growth% • Another strong financial performance recording 23% growth in Revenue 152.3 186.6 23% revenue and 8% growth in EB
Slide 29: Americas - chileautos & soloautos
Americas - chileautos & soloautos Very strong performance in Chile as market conditions improve and revenue growth delivered in Mexico Chile – chileautos Mexico – soloautos 1 H1 FY22 H1 FY23 Growth% H1 FY22 H1 FY23 Growth% Revenue 1.4 1.9 37% Revenue 7.9 8.2 4% CLPm MXNm EBITDA 0.6 0.9 37% EBITDA (2
Slide 30: Strategy Update
Strategy Update
Slide 31: Australia - Priorities
Australia - Priorities Significant growth opportunities in large addressable markets Digital Digital Dynamic Media & Dealer Retailing Trade-ins Pricing Membership Finance H1 FY23 Achievements H1 FY23 Achievements H1 FY23 Achievements H1 FY23 Achievements H1 FY23 Achievements ✓ Reached 3,000 cars ✓ I
Slide 32: Australia - Private Seller
Australia - Private Seller • Ensuring our customers have a great experience on carsales underpins our value proposition. Trust and safety is crucial to this, so we do everything we can to build customer trust in carsales – by keeping their data secure, respecting their privacy and providing valuable
Slide 33: Australia - Media
Australia - Media We have invested in media technology to strengthen our leadership position. carsales match and the Customer Data Platform (CDP) mitigates risk from 3rd party cookie deprecation and opens new opportunities to deliver sector leading media solutions • carsales match provides advertise
Slide 34: Australia - Digital Transactions
Australia - Digital Transactions We are improving the digital transaction experience for dealers and consumers Quarterly De-listings Trade-in Finance Pre-approval Deal Builder NEW 6,000 5,000 4,000 3,000 2,000 1,000 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 FY22 FY23 run-rate carsales Select Timeline Launched Reached
Slide 35: Americas - Trader Interactive Priorities
Americas - Trader Interactive Priorities We are delivering on key strategic priorities Market New Products ROI and Value Digital Retailing Cost Leadership and Services Proposition & Trade-ins Synergies Key priorities Key priorities Key priorities Key priorities Key priorities 1• RV & Powersports 1•
Slide 36: Asia - Encar Priorities
Asia - Encar Priorities Transforming Encar from a classifieds model to an online car transaction platform Guarantee Digital Digital Adjacent Cars Trade-ins Retailing Markets Double the penetration Increase Encar’s market Increase the number of Leverage automotive of Guarantee cars on site share of d
Slide 37: Americas - webmotors Priorities
Americas - webmotors Priorities Excellent momentum on key strategic priorities Regional Media Dealer Lead Finance Expansion Products Yield Penetration Increase dealer and Improve media product Increase yield Expand finance commissions traffic volumes in Brazil’s offering attracting greater of dealer
Slide 38: Appendix
Appendix
Slide 39: 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 40: Segment Details
Segment Details Pro-forma Basis1 Actual Basis1 3 3 $A Millions H1 FY22 H1 FY23 Growth % CC % H1 FY22 H1 FY23 Growth % CC % Dealer 86.1 94.6 10% 10% 86.1 94.6 10% 10% Private 31.5 43.9 39% 39% 31.5 43.9 39% 39% Media 25.9 28.3 10% 10% 25.9 28.3 10% 10% Online Advertising 143.5 166.8 16% 16% 143.5 166
Slide 41: Reconciliation of Reported to Adjusted Financials
Reconciliation of Reported to Adjusted Financials H1 FY22 H1 FY23 Growth % $A Millions Reported Adj's Adjusted Reported Adj's Adjusted Reported Adjusted Revenue 241.9 0.4 242.2 331.8 (0.1) 331.7 37% 37% Operating expense 116.5 (0.4) 116.1 167.0 (13.1) 153.9 43% 33% EBITDA 125.4 0.8 126.2 164.9 13.0
Slide 42: Reconciliation of Reported to Adjusted Financials
Reconciliation of Reported to Adjusted Financials H1 FY22 H1 FY23 $A Millions Revenue EBITDA NPAT Revenue EBITDA NPAT Reported Financials 241.9 125.4 74.6 331.8 164.9 416.5 Dealer Support Package 0.4 0.4 0.3 - - - M&A and Restructuring costs - 0.4 0.4 - 12.1 10.1 Financing Cost, Hedge and FX - - 1.5
Slide 43: Total Addressable Markets
Total Addressable Markets Australia Auto – Emerging Digital Opportunities Market Digital Retailing Digital trade-in Finance Commissions Product Dealer Finance Annual transaction volume1 1.0m 2.25m 2.0m (B2C - used) (trade-in + C2C) (B2C) x Addressable share 15%2 20%2 5%2 = Total addressable volume 1
Slide 44: Total Addressable Markets
Total Addressable Markets Recreational Commercial Total Powersports Equipment Vehicles (RVs) Trucks Key Brand Annual sales volume 15m 0.75m 1.5m 10m 2.5m x Average unit price $35k $32k $10k $35k $60k = Annual sales value $516bn $24.5bn $16bn $335bn $140bn x Marketing % of sales 0.6% 2% 2% 0.5% 0.5%
Slide 45: rae
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