Cazoo Group Ltd · OTC:CZOOF
Cazoo — FY2022 Earnings Presentation
17 slides from Cazoo's earnings presentation, Mar 30, 2023
Slide 1: Investor Presentation Q4 and FY 2022
Investor Presentation Q4 and FY 2022 30 March 2023
Slide 2: Disclaimer: Forward-Looking Statements
Disclaimer 2 Forward - Looking Statements This communication contains “forward - looking statements” within the meaning of the “safe harbour” provisions of the Private Securities Litigation Reform Act of 1995. The expectations, estimates, and projections of the business of Cazoo may differ from its
Slide 3: Contents
Co n t e n t s Progress to date and opportunity FY 2022 and Q4 2022 Performance Highlights FY 2022 Financial Performance and Guidance Summary remarks Focus on unit economics, reducing fixed cost base and maximizing cash runway 3
Slide 4: Achieved since launch in December 2019
Achieved since launch in December 2019: Note: Vehicles sold to retail consumers online since launch in December 2019 through to the end of February 2023. The UK market size as per OC&C report, Jun 2021. UK Brand Awareness as of July 22 per Engage Survey among potential used car buyers in the UK . Ad
Slide 5: Further progress over 2022 and YTD 2023
Further progress over 2022 and YTD 2023 Laser focused on optimizing unit economics Enabled end - to - end in - house retail reconditioning Grew direct car buying channel to ~50% of retail units sold Rightsizing of operational footprint and headcount largely completed 2022 Record £1.25bn revenue & 65
Slide 6: Near-term focus on unit economics to achieve profitable growth in large UK market
Near - term focus on unit economics to achieve profitable growth in large UK market Size ~£100bn Transactions ~7m Medium and Long - Term Targets Today Medium term Long term ~1% 2% 5% ~40 - 50k ~160k ~400k ~£1,000 ~£1,500 ~£2,000 ~£50m ~£250m >£750m Market Share Retail Units Retail GPU GP Potential 7
Slide 7: Q4 2022 & FY 2022 Highlights
Q4 2022 & FY 2022 Highlights Note: Financial infformation for three months and full year ended December 31, 2022 is unaudited. Note: Retail GPU (Gross Profit per Unit) is derived from UK retail and ancillary product revenues, divided by UK retail units sold (net of returns). EU operations are classi
Slide 8: Better car selection and ancillary revenue opportunities
Better car selection and ancillary revenue opportunities Actions to improve the unit economics of the business in 2022 and Q1 2023 Improving purchasing channel mix, car selection and margins with growth of direct buying channel C o r p o r a t e C o n s u m e r A u c t i o n Other Cars retailed by s
Slide 9: Optimizing the operational footprint and managing fixed cost base
Optimizing the operational footprint and managing fixed cost base; focus on the UK opportunity Actions to improve the unit economics of the business in 2022 and Q1 2023 (cont.) Reducing our fixed cost base through optimizing the network and headcount 1511 D e c - 31 - 2 2 M a r - 20 - 2 3 Reduction
Slide 10: The building blocks to further increase Retail GPU in 2023
The building blocks to further increase Retail GPU in 2023 Retail GPU (£/unit) Better stock selection Q4 2022 More purchasing direct from consumer Greater r e f u r b i s h m e n t efficiencies Decreasing number of d a y s - to - sal e Increasing finance attachment rate G r o wi n g a n ci ll ary re
Slide 11: 2022 Operational and Financial results
1 Cost of sales includes £10 million (2021: £5 million) of depreciation on subscription vehicles which is excluded in the Adjusted EBITDA calculations. 2 SG&A excludes depreciation of property, plant and equipment and right - of - use assets, amortization of intangible assets, impairment of intangib
Slide 12: 2022 Cash flow
1 Adjustments include depreciation of property, plant and equipment and right - of - use assets; amortization and impairment of intangible assets; finance income; finance expense; share - based payment expense; IFRS 2 expense on the business combination with Ajax; fair value movement in the Converti
Slide 13: 2023 guidance reiterated
Note: Forward - looking projections are for illustrative purposes and should not be relied upon as being necessarily indicative of future results. Retail units 40 – 50k + wholesale units of 10K Approaching £1,200/unit ~3x from £403/unit in 2022 Retail GPU £110 - £130m Year - end cash + ~ £15 - 25m S
Slide 14: In summary
In summary We have accomplished an enormous amount in the three years since launch We have established a market leading platform, team, brand and infrastructure in the UK Near - term focus on unit economics, optimization of operational footprint and maximizing cash runway Swift delivery on the restr
Slide 15: Appendix
Appendix 15
Slide 16: UK used car market
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 6 . 9 7 .0 8 .0 9 .0 6.0 5.0 4.0 3.0 2.0 1.0 - 200 5 200 6 200 7 200 8 200 9 201 0
Slide 17: Adjusted EBITDA reconciliation
1 Amortization and impairment of intangible assets includes a non - cash impairment charge of £299 million largely related to actions taken in the Group's Revised Business Plans. 2 Exceptional items of £7 million include restructuring costs of £6 million with the remainder primarily related to trans