Slide 1: Half Year Results
Half Year Results Six months ended 25th September 2016 10th November 2016
Slide 2: Disclaimer
Disclaimer Not for distribution or release, directly or indirectly, in or into This presentation is for information only. This presentation No reliance may be placed for any purposes whatsoever on any jurisdiction in which the distribution or release of this does not constitute or form part of and s
Slide 3: Financial highlights
Financial highlights + 11% Revenue: up 11% to £153.9 million (H1 2016: £138.2 million) + 23% Underlying operating profit: up 23% to £102.3 million (H1 2016: £83.0 million) 66% Underlying operating profit margin: up 6% points to 66% (H1 2016: 60%) Operating cash flow: up 17% to £100.8 million (H1 201
Slide 4: Key drivers
Key drivers + 36% Cross platform visits: up 36% to 58.5 million per month, 4 times larger than our nearest competitor + 59m Advert views: up 4% to 250.2 million per calendar month (H1 2016: 240.4 million), generating extra response for our customers with 59 million more views over the period - 1% Cu
Slide 5: Revenue
Revenue Number of retailer forecourts (1) YoY% 0.3% (1.0%) Revenue (£m) Six months ended September 2016 is shown as H1 2017 13,456 13,503 13,374 8% 11% YoY growth H1 2015 H1 2016 H1 2017 153.9 19% Average revenue per retailer (ARPR) (£) (1) 138.2 8.2 127.5 17.1 13.3% 6.9 6% YoY% 8.9% 5.6 16.1 +£179
Slide 6: Costs
Costs Employees & contractors (average) Costs(1) (£m) YoY% (6%) (4%) Six months ended September 2016 is shown as H1 2017 (3%) (7%) YoY growth 919 863 830 H1 2015 H1 2016 H1 2017 56.7 55.2 51.6 6.4 5.6 Marketing % of revenue (23%) 4.3 6.6% 5.5% 4.8% 16.2 16.4 15.8 (4%) 8.4 7.6 7.4 (3%) H1 2015 H1 201
Slide 7: Profit & cash flow
Profit & cash flow Underlying operating profit (1) (£m) Operating cash flow (£m) Six months ended September 2016 is shown as H1 2017 Six months ended September 2016 is shown as H1 2017 H1 2015 H1 2016 H1 2017 Margin 56% 60% 66% Cash conversion (Operating cash flow as % of 76% 97% 95% Adjusted Underl
Slide 8: Income statement
Income statement Six months ended Six months ended September 2016 September 2015 £m £m Revenue 153.9 138.2 Administrative expenses (53.3) (55.3) Operating profit before share-based payments, associated NI and exceptional items 102.3 83.0 Share-based payments (2.1) (1.0) Exceptional items 0.4 0.9 Ope
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 unchanged. Leverage 2.2x 1.8x The Group will continue to invest in the business but ability to grow organically means sign
Slide 10: Additional trading days in financial year 2017
Additional trading days in financial year 2017 Financial Year Change to calendar reporting . 1st April 31st March Due to our publishing heritage, the business has always reported on a 52 week (364 day) basis to the closest Sunday to 31st March 2015 31st March to 29th March 52 weeks / 364 days No
Slide 11: Key drivers & outlook
Key drivers & outlook
Slide 12: Market
Market New car registrations (1) Used car transactions (2) 3,000 45.0% 8,000 45.0% 2,750 7,000 35.0% 35.0% Number of New Car Registrations (000s) 2,500 Number of Used Car Transactions (000s) 6,000 25.0% 25.0% 2,250 5,000 YoY Growth YoY Growth 2,000 15.0% 15.0% 4,000 1,750 5.0% 5.0% 3,000 1,500 (5.0%
Slide 13: Audience & engagement
Audience & engagement Visits to automotive classified sites (1) Y-o-Y growth in visits (1) (2) (6 month average to September - million) 60% 50% comScore methodology 40% 58.5 change 30% +36% x4 x6 x18 x22 20% 10% 2.6 - 14.0 3.2 9.2 (10%) Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Slide 14: Trust & transparency
Trust & transparency Dealer Reviews Retailer invites a Consumers can Reviews are displayed 3rd party reviews write their review on on the dealerships buyer to leave a any device advertising across all add content 13 review by email devices
Slide 15: New car in discovery
New car in discovery New cars available to “Virtual” advert allows Consumers choose which order listed in search consumers to set preferences retailer to send their details to 14
Slide 16: Retailer ARPR growth by lever
Retailer ARPR growth by lever Car stock on site (12 month rolling total) (£) £110 £132 £179 YoY 460 20% Growth 8.9% 10.5% 13.3% % 440 15% 86 Stock on Site - Cars ('000) 420 400 YoY Growth 10% 58 59 380 43 41 5% 360 30 28 340 22 15 18 15 0% 320 6 300 (5%) Oct Oct Nov Dec Nov Dec Feb Feb Apr May Jun J
Slide 17: Cross sell
Cross sell Retailing Solutions revenue (£m) Managing pillar forecourts (#) Six months ended September 2016 is shown as H1 2017. Average number in the month of September YoY 16% Penetration (1) 2% 12% growth 11% 3% % 11.8 12.2 10.6 2,100 2.1 3.3 1,600 1.2 293 Sept 14 Sept 15 Sept 16 9.4 9.7 8.9 Car s
Slide 18: FY17 outlook
FY17 outlook (1) Automotive trends showing little noticeable impact from the Brexit vote Retailer forecourt numbers set to be flat to marginally down year-on-year ARPR growth for the year expected to be low double-digit and similar to the previous year Consumer Services revenue growth to rem
Slide 19: Questions
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Slide 20: Appendices
Appendices”
Slide 21: Car market - 2007 to 2011
Car market - 2007 to 2011 New car registrations (1) Used car transactions (2) 3,000 45.0% 8,000 45.0% 2,750 35.0% 35.0% 7,000 25.0% 25.0% 2,500 Number of New Car Registrations (000s) Number of Used Car Transactions (000s) 6,000 15.0% 15.0% 2,250 5,000 5.0% YoY Growth 5.0% YoY Growth 2,000 (5.0%) (5.
Slide 22: Trading – 2007 to 2011
Trading – 2007 to 2011 Online & Magazine selling revenue (GB) (1) (£m) Cars stock (1) Year ended March 2011 is shown as 2011 Year ended March 2011 is shown as 2011 YoY% 5% 8% 4% (5%) 17% 16% 2% (10%) 3% Growth / (Decline) - £m 25.8 17.6 19.2 14.6 10.0 401 408 367 378 (5.5) 345 (9.0) (9.0) (14.8) (15
Slide 23: Cash flow statement
Cash flow statement Six months ended Six months ended Movement in working capital: represents c.2% of revenue September 2016 September 2015 £m £m Capital expenditure totalled £2.4m with the majority of the spend Adjusted underlying EBITDA 106.6 88.6 relating to continuing hardware and telephony
Slide 24: Five year record
Five year record Six months to September Year to March 2016 2015 2014 2016 2015 2014 2013 2012 £m £m £m £m £m £m £m £m Revenue 153.9 138.2 127.5 281.6 255.9 237.7 218.9 209.1 Administrative expenses (53.3) (55.3) (60.0) (112.0) (122.8) (139.0) (109.8) (101.4) Operating profit before share-based paym
Slide 25: Notes
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Slide 26: Notes
= Autotrader Notes 25