Slide 1: Full Year Results Presentation
Full Year Results Presentation Year ended 30 June 2023
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: Agenda
Agenda 1 2 3 4 5 FY23 Financial Operating Strategy Appendix Highlights Performance Segments Update Review 4 - 11 12 - 17 18 - 24 25 - 34 35 - 42 3
Slide 4: 1. FY23 Highlights
carsales (@)com lid 1. FY23 Highlights
Slide 5: Excellent Full Year Results
Excellent Full Year Results • Outstanding financial performance with 18% proforma1 revenue growth, 19% proforma1 EBITDA growth and margin expansion to 53% • Excellent progress on strategic priorities and continued investment in long-term growth initiatives • Creating substantial value through delive
Slide 6: Operational Highlights
Operational Highlights Excellent operational metrics reflect strength of our global marketplaces Marketplace Highlights Dealer Highlights Consumer Highlights 2.2 million 48 thousand 18 billion Vehicles online1 Subscribed dealers2 Page views3 1.2 billion 410 thousand 11x more preferred Total sessions
Slide 7: Market Opportunity
Market Opportunity We operate in large markets with significant opportunity for future long-term growth Market Share (revenue / TAM) $2.6 billion Market Share $3.2 billion $2.0 billion 1 9% 4% FY15 FY23 $2.5 billion 1 7 Refer to slide 41 for calculation methodology. (1) Brazil and Korea re-stated to
Slide 8: Strong US Growth Since Acquisition
Strong US Growth Since Acquisition Key Revenue Synergies Being Delivered Revenue Growth Has Increased Revenue (USDm) and Growth vs pcp (%) by Half October Lead Amplifier 2022 Revenue (USDm) Growth v pcp • Audience extension product with 75% dealer uptake • Price of 99USD per month +16% • Delivering
Slide 9: Strong webmotors Progress
Strong webmotors Progress National expansion driving increased audience and new initiatives gaining traction National Expansion Dynamic Pricing Private Ad Yield Investment in increasing brand presence is yielding strong benefits • Dynamic pricing engine 12% implemented mid-June Curitiba (Pop. 3.7m)
Slide 10: Delivered Compelling Double-Digit Growth Over Years Through Different Economic Cycles
Delivered Compelling Double-Digit Growth Over 16 Years Through Different Economic Cycles Highly resilient and Group Proforma Financial Performance (AUDm) countercyclical business model 46% growth Revenue EBITDA through pandemic 1,000 • carsales is more geared to used vehicle buy & sell transactions
Slide 11: Positive Outlook for FY24
Positive Outlook for FY24 Outlook statement Proforma Basis We expect to deliver good growth in Revenue and EBITDA in FY24 Actual Basis We expect to deliver very strong growth in Revenue and Adjusted EBITDA and strong growth in Adjusted NPAT in FY24 Margin We expect to see expansion in the carsales G
Slide 12: 2. Financial Performance
carsales @)com lid 2. Financial ’ Performance ce
Slide 13: Strong Track Record of Growth
Strong Track Record of Growth Proforma Proforma Revenue1 ($m) EBITDA1 ($m) 496 942 820 428 386 698 619 640 330 312 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23 Adjusted Adjusted NPAT ($m) EPS2 (cents) 278 78.1 195 66.5 153 58.4 130 138 53.6 50.6 FY19 FY20 FY21 FY22 FY23 FY19 FY20 FY21 FY22 FY23
Slide 14: P&L Summary
P&L Summary Actual Basis $A Millions FY22 FY23 Growth % • Very strong increase in revenue and EBITDA reflects strong underlying Revenue 509.5 781.0 53% double-digit growth and the consolidation of Trader Interactive and webmotors in FY23 Operating expense 238.4 356.1 49% Adjusted EBITDA 271.2 424.9
Slide 15: Segment Performance
Segment Performance Delivering double-digit revenue and earnings growth in all key segments Proforma Basis $A Millions FY22 FY23 Growth % CC %1 • Australia2 – excellent revenue and EBITDA result driven by continuing to provide a compelling value proposition for our Australia2 351.7 399.1 13% 13% cus
Slide 16: EBITDA Margin Summary
EBITDA Margin Summary • Overall, reflects a strong revenue result and continued discipline in managing costs. Margins continue to grow despite an inflationary cost environment and continued investment in key growth initiatives • Increase in Australian margin reflects continued benefits of operating
Slide 17: 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 • Key investments in digital retailing reflects the attractive working capital reflects incremental debt drawn down and trade-in, dyn
Slide 18: 3. Operating Segments Review
3. Operating Segments Review
Slide 19: Strong Marketplace Metrics
Strong Marketplace Metrics +15% +21% +49% +2% Traffic1 FY19 FY23 FY19 FY23 FY19 FY23 FY19 FY23 +10% +41% +10% +57% Leads FY19 FY23 FY19 FY23 FY19 FY23 FY19 FY23 250 1.5 200 500 Inventory2 200 1.0 150 400 150 100 100 300 0.5 50 000s m 000s 000s 0 0.0 50 200 Feb-20 Apr-21 Aug-22 Oct-21 Nov-20 Oct-21 J
Slide 20: Australia - carsales
Australia - carsales Excellent execution on key priorities supported by strength and resilience in the used car market Financial summary Performance commentary $A millions FY22 FY23 % • Outstanding FY23 result with double digit growth in Dealer, Private Dealer 183.8 203.0 10% and Media segments Priv
Slide 21: North America - Trader Interactive
North America - Trader Interactive Outstanding first year of full ownership with strong progress on synergies driving growth Financial summary (proforma) Performance commentary FY22 FY23 % • Strong financial performance reflects delivery of new product, acquiring new customers and investing in techn
Slide 22: Latin America - webmotors
Latin America - webmotors Excellent financial performance with strong growth in all key areas and margin expansion Financial summary (proforma) Performance commentary FY22 FY23 % • Excellent financial performance in Brazil reflecting strong execution of the national expansion plan driving lead volum
Slide 23: Asia - Encar
Asia - Encar Continued execution on penetrating premium products driving good growth Financial summary Performance commentary FY22 FY23 % • Good growth in revenue and EBITDA which was a pleasing result given tight credit market conditions experienced throughout the Revenue 79.3 88.2 11% KRWb year Ad
Slide 24: Latin America & Investments
Latin America & Investments Latin America ex. Brazil1 Investments FY22 FY23 % FY22 1 FY23 % Revenue 6.1 8.0 31% Revenue 56.5 60.9 8% 1 CCm AUDm EBITDA (1.3) (1.3) (1%) EBITDA (1.9) (3.0) n.m. • Strong growth in revenue reflects increasing customer penetration • Solid revenue result reflects double-d
Slide 25: 4. Strategy Update
carsales @)com lid 4. Strategy Update
Slide 26: Our Global Priorities
Our Global Priorities We have a clear set of priorities across our global marketplaces arket Leadersh M ip 1. 1. Market 2. Digital 2. Leadership Retailing s on Dig uture Horiz Expand the Increase digitisation ital R leadership positions of the vehicle of our online buying and selling marketplaces pr
Slide 27: 1. Market Leadership
1. Market Leadership Expand the leadership positions of our online marketplaces Lead vs. #21 Lead vs. #22 7.5x 5.4x Increased marketing Continued focus on organic investment, expanding traffic generation and inventory choice and new investment in Dealer Direct product delivery driving brand drove si
Slide 28: 2. Digital Retailing
2. Digital Retailing Increase digitisation of the vehicle buying and selling process Our strategy is to adapt key digital retailing features to cater to local market’s conditions $ Car buying steps Search Fixed Price Inspection Trade-in Finance & Payment Delivery Own NEW NEW > 4mil monthly > No-hagg
Slide 29: 3. Dynamic Pricing
3. Dynamic Pricing Alignment of price to value in the most structured and automated way • carsales continued rollout of new pricing engine features, with area-based pricing (metro/rural) recently launched • Implemented value-based dynamic pricing in Trader Interactive and webmotors which is driving
Slide 30: 4. Media
4. Media Connect advertisers to our audience through the most sophisticated data products Australian double-digit growth continues and adtech is being leveraged into international markets New audience match Agency re-brand is We are deploying technology is increasing driving new customer Australian
Slide 31: 5. Future Horizons
5. Future Horizons Leverage insights and trends to explore new ideas and opportunities In-house product Adjacent International carsales development and marketplace M&A early-stage innovation opportunities opportunities investments • Our culture of innovation • Explore horizontal and • Invest in high
Slide 32: Artificial Intelligence
Artificial Intelligence AI supports innovation to drive customer experience and efficiency to deliver improved productivity Our Artificial Intelligence Strategy Enrich the Consumer Enhance Security, Trust Optimise Engineering Experience & Safety & Processes • Deploy artificial intelligence to make •
Slide 33: Sustainability
Sustainability We are committed to driving improvement across our Sustainability focus areas Environment Social Governance • Published our first TFCD report in • Certified as a Great Place to Work for • Implemented subsidiary boards with FY23 the sixth year in a row and independent directors in each
Slide 34: How carsales Creates Shareholder Value
How carsales Creates Shareholder Value carsales presents a highly compelling investment proposition with multiple growth large opportunities across large addressable markets 1 2 3 4 5 Clear leadership Digitising Underpenetrated Transferrable, Strong cash flows positions in each vehicle international
Slide 35: 5. Appendix
carsales (@)com lid 5. Appendix _ —_
Slide 36: 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 37: Segment Details
Segment Details Proforma Basis Actual Basis $A Millions FY22 FY23 Growth % CC %1 FY22 FY23 Growth % CC %1 Dealer 183.8 203.0 10% 10% 183.8 203.0 10% 10% Private 69.4 89.9 30% 30% 69.4 89.9 30% 30% Media 54.5 60.6 11% 11% 54.5 60.6 11% 11% Online Advertising 307.7 353.4 15% 15% 307.7 353.4 15% 15% Da
Slide 38: Reconciliation of Adjusted to Reported Financials
Reconciliation of Adjusted to Reported Financials FY22 FY23 Growth % $A Millions Adjusted Adj's Reported Adjusted Adj's Reported Adjusted Reported Revenue 509.5 (0.5) 509.1 781.0 0.3 781.2 53% 53% Operating expense 238.4 1.7 240.1 356.1 (24.8) 331.3 49% 38% EBITDA 271.2 (2.2) 268.9 424.9 (24.5) 400.
Slide 39: Reconciliation of Adjusted to Reported Financials
Reconciliation of Adjusted to Reported Financials FY22 FY23 $A Millions Revenue EBITDA NPAT Revenue EBITDA NPAT Adjusted Financials 509.5 271.2 194.8 781.0 424.9 278.2 Gain on step acqusition - - - - - 486.5 Acquired intangible amortisation - - (23.0) - - (49.0) Impairment of investments - - - - - (
Slide 40: Exchange Rates
Exchange Rates FY22 FY23 FX rates, full year ended June Average Closing Average Closing AUD / USD 0.73 0.69 0.67 0.67 AUD / KRW 872.39 888.61 894.52 877.04 AUD / BRL 3.78 3.63 3.46 3.19 AUD / CLP 589.78 634.44 576.38 534.01 AUD / MXN 14.73 13.88 12.84 11.41 • For the presentation, constant currency
Slide 41: Total Addressable Markets
Total Addressable Markets Volume Yield TAM Country Segment (m) (AUD) (AUDm) B2C 2.0 250 500 Digital Retailing 0.2 700 110 Dealer Digital trade-in 0.5 500 225 Finance 0.1 490 50 Non-auto - - 200 Private 1.8 100 175 Media - - 800 Data & Services - - 500 Australia Total 2,560 RV 0.8 667 500 Powersports
Slide 42: Thank you
carsales @)com lid Thank you