Autotrader Group Plc · LSE:AUTO
Autotrader — H1 2021 Earnings Presentation
35 slides from Autotrader's earnings presentation, Nov 5, 2020
Slide 1: Half year results presentation
Half year results presentation Half year ended 30 September 2020 5 November 2020 = AutoTrader
Slide 2: Disclaimer
Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of this document would be unlawful. By attending the meeting where this presentation is made (including via elect
Slide 3: Our response to the latest lockdown restrictions
Our response to the latest lockdown restrictions ro ay Looking after our people Supporting our customers Protecting our business = AutoTrader Tighter restrictions in England from 5 November until 2 December that will force car retailers to close. Restrictions in other parts of the UK are similar Hom
Slide 4: Results split into two quarters
The variation in our results between how we started the period and how we ended are in such contrast that we have split the summary into two quarters April - June 2020 (Q1 2021) July —- September 2020 (Q2 2021) Q12021 Q2.2021 Monthly cross platform visits (m) 49.5 (3%) Monthly cross platform visits
Slide 5: Financial performance
Financial performance £118m £69m 58% Revenue: down 37% to £118.2 million (H1 2020: £186.7 million). Trade revenue down 38% to £100.2 million (H1 2020: £161.8 million) Operating profit: down 48% to £68.5 million (H1 2020: £131.4 million) Operating profit margin: down 12% points to 58% (H1 2020: 70%).
Slide 6: Operational performance
Operational performance 57m 557m 13,056 £1,206 478,000 893 = AutoTrader Cross platform visits: up 12% to 57.3 million per month on average (HI 2020: 51.2 million) Cross platform minutes: up 12% to 556.6 million per month on average (HI! 2020: 496.4 million). Our share of cross platform minutes remai
Slide 7: Financials
Financials = AutoTrader
Slide 8: Revenue
Revenue Revenue (£m) six months ended 30 September 2020 is shown as H1 2021 ‘—§ @ © 186.7 9.0 15.9 176.8 H1 2019 Trade H12020 H1 2021 = Consumer services = Manufacturer & Agency ade revenue comprises Consumers ! venue comprises | H1 2021: Retailer (€94.5m); Home Trader (£2.7m); Other (£3.0m) |, Hi 2
Slide 9: ARPR, live physical car stock and retailers
ARPR, live physical car stock and retailers ARPR levers Growth in Average Revenue Per Retailer per month (£) 142 55 50 80 = = © = (5) (45) H1 2019 H1 2020 @ (156) (695) H1 2021 mPrice =Stock =Product #COVID related discounts = AutoTrader Physical car stock and retailer forecourts Y-on-Y average Q re
Slide 10: Costs
Costs Costs (£m) Six months ended 30 September 2020 is shown as H1 2021 Y-on-Y % @ 56.2 571 50.8 Q@ 000 H1 2019 H12020 H1 2021 =Peoplecosts =Marketing = =Othercosts” =D&A People costs include share-based payments and associated national insurance costs of £2.6m in HI 2021 (HI 2019:£3.2m; HI2020: £3.
Slide 11: Profit and cash flow
Profit and cash flow Operating profit (£m) six months ended 30 September 2020 is shown as H1 2021 io @ © oem ss 58% 68.5 H12019 H1.2020 H12021 mmm Operating profit —— = Operating profit margin Operating profit includes the Group's share of profit from SAutolrader Joint ventures: HI 2021 £1.1m, Hi 20
Slide 12: Income statement
Income statement H1 2021 H1 2020 Year-on-year £ million % Revenue 118.2 186.7 (37%) Administrative expenses (50.8) (57.1) (11%) Share of profit from joint ventures 14 1.8 (39%) Operating profit 68.5 131.4 (48%) Net finance costs (2.3) (3.7) (38%) Profit before taxation 66.2 127.7 (48%) Income tax ex
Slide 13: Net bank debt and capital allocation policy
Net bank debt and capital allocation policy Reconciliation of net bank debt") (£m) ti) Leverage?) ® * On 31 July 2020, the Group acquired AutoConvert (legal name BlueOwl 275.4 66.4 (0.2) (1-2) (0.1) (1-7) (18.0) (0.5) 182.9 (10.0) 58.4 Network Limited) for the consideration || of £18.2m, of which £8
Slide 14: Market
Market = AutoTrader
Slide 15: Audience growth has been strong as a result of heightened demand
Audience growth has been strong as a result of heightened demand for vehicles Cross platform visits Autotrader.co.uk" Total minutes spent H1 2021!) (Average pcm - million) (Average pem- million) 578 49.3 51.2 cht) HI 2019 H12020 Hi 2021 Cross platform minutes Autotrader.co.uk" (Average poem - millio
Slide 16: Strong demand saw stock on site fall
Strong demand saw stock on site fall, as vehicles sold far quicker than they could be replenished Cross platform visits and live cars on site (rolling 7 day average) Auto Trader Retail Price Index 5% Stock offer 15% £14,100 9.0% implemented 8.0% 40% £13,900 10% 30% 7.0% £13,700 eon 20% 5% < 5.0% E o
Slide 17: Product
Product = AutoTrader
Slide 18: Annual pricing event embedded data and insight into packages
Through our annual pricing event we embedded our data and insight into the automotive ecosystem, with three products made available through our packages Retail Check Gives retailers the broadest, most accurate view of the market, helping them make better and faster pricing decisions on cars they are
Slide 19: Our new car marketplace continues to grow
Our new car marketplace continues to grow delivering more value for retailers ZAutotrader 9 2 | wed Search 1 5 re) fe) Retailers paying for the ' product in September 2020. (March 2020: 1,000) BRAND NEW CARS Get your '70' reg plate Make Physical new cars were 46,000 advertised on site per month 1 3
Slide 20: Instant offer launched in July
Instant offer launched in July, providing a guaranteed and trusted way for consumers to dispose their car Instant Offer enables private sellers to sell their car at a guaranteed price, powered by Cox Automotive No fees to the seller, price guaranteed for 7 days Instant Offer is a key first step into
Slide 21: We have acquired AutoConvert
We have acquired AutoConvert, a finance platform connecting retailers and brokers with lenders Auto®)Convert Integrated with over 50 lenders via API to enable information to flow between AutoConvert and lenders Enables automation to increase efficiency Increases efficiency of customer management and
Slide 22: Strategy & Outlook
Strategy & Outlook = AutoTrader
Slide 23: Assembling the component parts of the online car buying journey
We are making progress on our strategy by assembling the component parts of the online car buying journey Find the right car Dispose of your Finance and pay Collect your car or for you current car for your car have it delivered * Largest and most trusted * Trade-in through ‘Guaranteed + Online appli
Slide 24: Outlook for the remainder of the year
Outlook for the remainder of the year * Given the continued uncertainty surrounding COVID-19 and further customer support in December, it is difficult to provide sensible revenue guidance for the balance of the year. Looking at the past month, we have started the second half well: « Audience volumes
Slide 25: Appendix
Appendix = AutoTrader
Slide 26: Quarterly trading
Quarterly trading Key performance indicators Q12021 Q2 2021 H1 2021 H1 2020 Average retailers 13,005 (2%) 13,107 (2%) 13,056 13,316 (2%) Live car stock (‘000) 520 7% 436 (8%) 478 481 (1%) onthly cross platform visits (m) 49.5 (3%) 65.0 27% 57.3 51.2 12% Average Revenue Per Retailer ‘orecourt (8) 477
Slide 27: Our strategy with reference to three growth horizons
Our strategy with reference to three growth horizons HORIZON 3 HORIZON 2 HORIZON 1 — an Kore Adjacent Future We look to continually improve our core by: * — Evolving our search experience, and enabling customers to increase their prominence * Embedding our data &insight to enable buyers and retailer
Slide 28: New and used car transactions
New and used car transactions New car registrations Year-on-year @ (10.9%) 3.0 - 15 Number of new car registrations (m) ° 2 a RESEPOEERESERESESOSEE ER 5 3 8 P55 = 3 SSSS788SR 58 BSS 3S E58 2019 2020 {1) Society of Motor Manufacturers & Traders (SMMT) - 12 month rolling total = AutoTrader (20.0%) (40
Slide 29: UK car parc and frequency of transactions
The UK car parc continued to grow through calendar year 2019. The average time people hold their car for has increased to 3.5 years UK Car Pare Frequency of transactions (years) Total number of transactions (millions) 36.0 3.0 m@NCRs sUCTs 35.0 2.0 34.0 6 5 10 = 35353535 Ez 35.0 7 fi 4 5.4 $8 , 3 §
Slide 30: Auto Trader Retail Price Index: used car pricing
Auto Trader Retail Price Index: used car pricing Like-for-like price increase £14,000 £13,500 £13,000 £12,500 £12,000 £11,500 vow GOT il £10,500 £10,000 2018 mmm Yeor-on-year price growth = AutoTrader 4% 2019 Year-on-year impact caused by mix 2020 Average advertised price Apr May Jun Jul Aug Sep Oct
Slide 31: The automotive ecosystem
The automotive ecosystem 0.9m = AutoTrader DEFLEET gerdilers | 5.5m } ‘TRADE USED CAR SALES Gop 1.8m eceawoeo 1.2m — folo Contract hie deals "| LO 2.2m C20 TRANSACTIONS. Consumers Insurance, warranty and finance —— 0.9m —-+» NEWCARSALES. 3.7m PART EXCHANGE 1.4m 1.0m [ 2.8m Sources (FY2020): New car
Slide 32: Independent advertising package structure
Independent advertising package structure Starter Engage your buyers through the essentials of modern online retailing Relative prices between package levels: = AutoTrader Basic Stand out and encourage engagement through trust and transparency Standard Advanced Improve visibility of your stock Boost
Slide 33: Cashflow statement
Cashflow statement H1 2021 H12020 Profit before tax 66.2 127.7 Depreciation & amortisation 34 3.3 Share-based payments charge (excl. associated NI) 1.8 2.7 Share of profit from joint ventures (1.1) (1.8) Finance costs - net 2.3 3.7 Other non-cash items 0.1 (0.3) Changes in working capital (6.3) (2.6
Slide 34: Notes
Notes = AutoTrader 34
Slide 35: a AutoTrader
a AutoTrader