Slide 1: Full Year Results
Full Year Results Year ended 31 March 2017 8 June 2017
Slide 2: Disclaimer
Disclaimer Not for publication, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, distribution or release of this document would be unlawful. By attending the meeting where this presentation is made or by reading this document, you agree to be bou
Slide 3: Financial highlights
Financial highlights +9% Revenue: up 9%* to £311.4 million (2016: £281.6 million) +19% Underlying operating profit: up 19%* to £207.2 million (2016: £171.3 million) Operating profit up 18%* to £203.1m (2016: £169.6 million) 67% Underlying operating profit margin: up 6% points to 67% (2016: 61%) +18%
Slide 4: Key drivers
Key drivers +12% Cross platform minutes: up 12% to 582 million per calendar month (2016: 521 million); Cross platform visits up 16% to 55.4 million per calendar month (2016: 47.9 million), 4 times larger than our nearest competitor +55m Advert views: up 2% to 247.4 million per calendar month (2016:
Slide 5: Revenue
Number of retailer forecourts (1) YoY% Revenue 2.5% 0.5% (1.6%) Revenue (£m) Year ended March 2017 is shown as 2017 13,452 13,514 13,296 13,452 13,514 13,296 8% 10% 9% 2015 2016 2017 16% 17.5 Average Revenue Per Retailer (ARPR) (£) (1) 14.9 31.8 4% 12.1 30.3 YoY £71 £132 £162 29.0 £ pcm +12% +11% 26
Slide 6: Costs
FTEs (including contractors) (2) YoY% Costs (12%) (6%) (4%) Costs (1) (£m) Year ended March 2017 is shown as 2017 915 859 824 (4%) (1%) (7%) (26%) Marketing as a % of revenue 12.5 10.6 8.0 32.2 32.5 30.7 (7%) 15.4 15.7 16.0 1% 51.7 51.5 49.5 (5%) Capital expenditure (£m) 3.6% 1.1% 1.2% (1) 2017: Adm
Slide 7: Profit & Cash flow
Profit & Cash flow Underlying operating profit (1) (£m) Cash generated from operations (1) (£m) Year ended March 2017 is shown as 2017 Year ended March 2017 is shown as 2017 Margin 56% 61% 67% YoY Growth 14% 19% 19% YoY Growth 18% 207.2 8.0 (2.2) (0.1) 212.9 5.4 203.1 169.6 133.1 (1) Underlying oper
Slide 8: Income statement
Income statement Year ended Year ended March 2017 March 2016 £m £m Revenue 311.4 281.6 Administrative expenses (108.3) (112.0) Operating profit before share-based payments, associated NI and exceptional items 207.2 171.3 Share-based payments and associated NI (4.5) (2.5) Exceptional items 0.4 0.8 Op
Slide 9: Net external debt & capital allocation
Net external debt & capital allocation Reconciliation of net external debt (1) (£m) Capital allocation • The policy outlined in the 2016 full year results announcement remains 2.2x Leverage (2) 1.6x unchanged Repayment of gross borrowings in the period £40m • The Group will continue to invest in the
Slide 10: Key drivers & outlook
Key drivers & outlook = AutoTrader
Slide 11: Market
Market New car registrations (1) Used car transactions (2) 3,000 30.0% 30.0% 8,000 25.0% 25.0% 2,750 7,000 Number of New Car Registrations (000s) 20.0% 20.0% 2,500 Number of Used Car Transactions (000s) 15.0% 15.0% 6,000 2,250 10.0% 10.0% YoY Growth YoY Growth 5,000 2,000 5.0% 5.0% 0.0% 4,000 0.0% 1
Slide 12: Audience & engagement
Audience & engagement Visits to automotive classified sites (1) Minutes spent on autotrader.co.uk (1) (Average pcm – million) (Average pcm – million) YoY Growth% 37% 12% 4x 6x 22x 47x 55.4 521 582 +16% 380 15.2 9.0 2.5 1.2 2015 2016 2017 Advert views (2) (12 month rolling average - million) Visitors
Slide 13: Product innovation: dealer reviews
Product innovation: dealer reviews Over 5,000 retailers featuring over 325,000 reviews 12
Slide 14: Product innovation: trust & transparency
Product innovation: trust & transparency XXXXX Price Indicator in search listings Price Indicator in full page advert view Consumers can find out more 13
Slide 15: Historical selling package
Historical selling package (1) Level 1 Level 2 Level 3 Level 4 Level 5 Reach in-market buyers on a Stand out from competitors and Make sure it’s your vehicle buyers Connect with more buyers out Polish your cars’ online presentation variety of devices anywhere 24/7 influence buyer decisions see first
Slide 16: FY18 selling package
FY18 selling package (1) Starter Basic Standard Advanced Premium Engage your buyers through the Stand out and encourage Improve visibility of your stock on Boost your ad views with our Enjoy the greatest share of desktop essentials of modern online engagement through trust and mobile and drive more
Slide 17: FY18 selling package: package staircase and rate card
FY18 selling package (1) Package staircase FY18 selling package rate card Relative prices between packages based on average across the rate card Average rate card Price per Economies of scale for retailer +28% Premium listing slot (car) +20% Advanced +19% Standard +15% Basic Starter x2 (1) For car r
Slide 18: ARPR levers
Retailer ARPR levers (1) Physical car stock on site (Growth in Average Revenue Per Retailer per calendar month) (12 month rolling average) 460 20% (£) £71 £132 £162 440 15% YoY 11.7% 420 Stock on Site - Cars ('000) 6.0% 10.5% Growth % 400 10% YoY Growth 86 380 5% 360 58 48 340 41 0% 28 30 33 28 320
Slide 19: Retailing solutions
Retailing solutions Retailing solutions revenue (£m) Managing forecourts (#) Year ended March 2017 is shown as 2017 Average number in the month of March YoY Penetration 8% 14% 19% 21% 11% (4%) Growth % 22.0 24.5 23.9 5.2 41 2,500 3.1 7.3 1,900 1,100 2015 2016 2017 18.9 19.3 16.6 41 Physical car stoc
Slide 20: FY18 Outlook
FY18 Outlook (1) The industry expects new car registrations to plateau or decline but anticipates growth in used car transactions as past observations suggest that the recent strong growth in new car sales will continue to stimulate demand for used cars Retailer forecourt numbers set to be flat
Slide 21: Questions
Questions = Autotrader
Slide 22: Appendices
Appendices = AutoTrader
Slide 23: New car registrations
New car registrations Private (1) Fleet (1) 4.9% 4.0% (0.9%) 9.5% 9.2% 6.3% (1) Source: Society of Motor Manufacturers & Traders (SMMT) – 12 month rolling total The sum of Private plus Fleet does not equal total New Car Registrations as there is a third, much smaller, category for registrations by B
Slide 24: Car market – 2007 to 2011
Car market – 2007 to 2011 New car registrations (1) Used car transactions (2) 3,000 8,000 40.0% 40.0% 2,750 7,000 30.0% 30.0% 2,500 Number of New Car Registrations (000s) 6,000 Number of Used Car Transactions (000s) 20.0% 20.0% 2,250 10.0% 10.0% 5,000 YoY Growth YoY Growth 2,000 0.0% 0.0% 4,000 1,75
Slide 25: New car registrations with year lag & used car transactions
New car registrations (1) with 3 year lag & used car transactions (2) 9,000 3,000 Financial YoY Growth 8,000 Year NCR UCT 2,500 2007 (2%) 2010 (6%) Number of New Car Registrations (000s) Number of Used Car Transactions (000s) 7,000 2008 1% 2011 3% 6,000 2,000 2009 (20%) Period distorted 2012 (1%) 20
Slide 26: Automotive marketplace
Automotive marketplace Sineten | >? D>>>>>>>>D>DD>DDD Newnes recttoconsumer >>> > >, 9.4m / 32" \ Trade- consumer- 17>>>> Caen > >>>>>>> tame > >>> carssol umers Y_to-consumer transactions inewand used) transactions / CREEK KEELE EE Parvenchanawotvsedcan € << Thoroleweplay © classified advertising F
Slide 27: Cash flow statement
Cash flow statement • Changes in working capital includes growth in receivables and higher VAT payments on account Year ended Year ended March 2017 March 2016 • Tax paid lags the charge to the income statement £m £m by c. 6 months Profit before taxation 193.4 155.0 • Capital expenditure includes con
Slide 28: Five year record
Five year record 2017 2016 Year to March 2015 2014 2013 £m £m £m £m £m Revenue 311.4 281.6 255.9 237.7 218.9 Administrative expenses (108.3) (112.0) (122.8) (139.0) (109.8) Operating profit before share-based payments and associated NI, management 207.2 171.3 144.1 126.2 116.1 incentive plans, excep
Slide 29: Notes
Notes = AutoTrader
Slide 30: Notes
Notes = AutoTrader
Slide 31: Notes
Notes = AutoTrader