Car Group Limited · ASX:CAR
Car — carsales.com — H1 FY2017 Earnings Presentation
37 slides from Car's earnings presentation, Feb 8, 2017
Slide 1: Half year results presentation to 31 December 2016
1 For personal use only Half year results presentation to 31 December 2016
Slide 2: Disclaimer and Non-IFRS Information
2 Disclaimer and Non-IFRS Information For personal use only Disclaimer The material in this presentation has been prepared by carsales.com Limited (ASX: CAR) ABN 91 074 444 018 (“carsales") and is general background information about carsales’ activities current as at the date of this presentation.
Slide 3: Table of Contents
3 Table of Contents For personal use only Key Messages 4–6 Reported Group Financial Performance 7 – 11 carsales Domestic 12 – 16 carsales International 17 – 22 Outlook 23 – 24 New Product Releases 25 – 31 Appendix 32 – 36
Slide 4: Key Messages
4 For personal use only Key Messages to 31 December 2016
Slide 5: Organisational Structure
5 Organisational Structure For personal use only SERVICES CLASSIFIEDS CONTROLLED DOMESTIC INVESTMENTS CONTROLLED INTERNATIONAL INVESTMENTS AUTO NEW Announced 31 January Argenti na 2017 – not formally Col ombia completed Chi l e MARINE MINORITY INTERNATIONAL INVESTMENTS MINORITY DOMESTIC INVESTMENTS
Slide 6: Overview of H1 FY17
6 Overview of H1 FY17 FINANCIAL OVERVIEW For personal use only • Solid half year results. Excluding Finance and Related Services segment, H1 FY17 pcp revenue growth of 14% and EBITDA growth of 9%. REPORTED REVENUE up • H1 FY17 pcp growth in reported revenue of 7%, reported EBITDA of 2% and Adjusted
Slide 7: Reported Group Financial Performance
7 For personal use only Reported Group Financial Performance to 31 December 2016
Slide 8: Financial Overview
8 Financial Overview $A Millions Growth • Solid growth in revenue rising to $178.6m, up by 7% on pcp. Half Year Ending 31 December 2016 H1 FY16 H1 FY17 $'s % • Excluding Finance and Related Services revenue pcp growth of 14% and Revenue** For personal use only EBITDA growth of 9%. Online Advertising
Slide 9: Segment Performance
9 Segment Performance Online Advertising Data, Research and Services International carsales Group Exc F&RS Finance and Related Services carsales Group For personal use only H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 $millions $'s % $'s % $'s % $'s % $'s % $'s % FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16
Slide 10: Strong track record of financial performance
10 Strong track record of financial performance For personal use only Revenue EBITDA ADJUSTED NPAT* 178.6 167.3 $m $m $m 3.5 83.2 54.4 81.5 51.6 150.9 1.7 72.9 0.5 46.7 26.1 0.6 43.9 1.3 4.5 33.4 63.5 0.8 8.9 11.1 37.6 19.2 5.6 28.5 53.9 0.8 10.2 8.1 112.3 6.2 17.4 102.1 1.3 5.3 - 15.2 - 12.7 12.5 6
Slide 11: Reported Debt and Cash flow
11 Reported Debt and Cash flow Continued strong operating cash flows Improved credit metrics For personal use only Reported Operating Cash flow (column) and conversion from Reported Leverage Ratio EBITDA to cash (line) (Net debt / Annualised EBITDA**) 60.0 120% 53.2 H1 FY17 50.3 1.03 50.0 100% 44.6
Slide 12: carsales Domestic (Australia)
12 For personal use only carsales Domestic (Australia) to 31 December 2016
Slide 13: Domestic Revenue Performance - Summary
13 Domestic Revenue Performance - Summary $A Millions Growth For personal use only Half Year Ending 31 December 2016 H1 FY16 H1 FY17 $'s % Revenue Dealer 58.8 64.6 5.8 10% Private 24.4 30.7 6.3 26% Display 31.6 34.5 2.9 9% Total Online Advertising 114.8 129.8 15.0 13% Data, Research and Services 17.
Slide 14: Domestic Revenue Performance by Category
14 Domestic Revenue Performance by Category Dealer revenue up 10% on pcp to $64.6m For personal use only Millions Dealer $m Solid used car dealer enquiry volumes, up 3% on pcp which is ahead of used $80 car inventory growth on pcp. New car enquiry volumes similarly performed well against the decline
Slide 15: Domestic Revenue Performance by Category
15 Domestic Revenue Performance by Category For personal use only $m Display Display revenue up 9% to $34.5m $40 $34.5 Maintained strong revenue trend growth at 9% on pcp, consistent with FY16, $30.9 $31.6 despite decline in new car inventory levels. $30.1 $30 $27.7 Good growth contribution across b
Slide 16: Domestic Revenue Performance by Category
16 Domestic Revenue Performance by Category Finance and Related Services Revenue down For personal use only Finance and Related Services Revenue 22% to $26.1m Half Year Ending 31 December 2016 $A Millions Variance Volume capacity reductions experienced at a major lender in Q4 H1 FY16 H1 FY17 $'s % F
Slide 17: carsales International
17 For personal use only carsales International to 31 December 2016
Slide 18: International Portfolio
18 International Portfolio For personal use only “With the acquisition of DeMotores carsales is the number one online automotive classified network operating across the Latin American region” International Highlights $A Millions Growth • Strong growth in SK Encar underlying revenue – up 26% on pcp H
Slide 19: Asia – Underlying Results
19 Asia – Underlying Results SKENCARSALES Financials (49.9% Owned - Equity Accounted by CAR) 6 months to 6 months to Pro-Forma (100%) 31 Dec 2015 31 Dec 2016 PCP For personal use only KRWb KRWb % Underlying revenue* 14.2 17.9 26% Strong Financial Results. Underlying EBITDA* 7.2 8.6 18% Strong contin
Slide 20: Latin America – Underlying Results
20 Latin America – Underlying Results WebMotors Financials (30% owned - Equity Accounted by CAR) For personal use only 6 months to 6 months to Pro-Forma (100%) 31 Dec 2015 31 Dec 2016 PCP WebMotors continuing evolution Brazilian economic conditions remain poor which is impacting BRLm BRLm % Webmotor
Slide 21: Latin America – Underlying Results
21 Latin America – Underlying Results soloautos Financials (65% owned – Consolidated by CAR) 2 Oct 2015 to 6 months to For personal use only Pro-Forma (100%) 31 Dec 2015 31 Dec 2016 PCP MXPm MXPm % soloautos Reported revenue 1.9 4.3 123% Solid revenue performance since acquisition of soloautos. Repo
Slide 22: DeMotores.com
22 DeMotores.com Extended coverage of Latin America For personal use only carsales sees the Latin American region as an attractive market from a growth and macro perspective and this provides another exciting opportunity to capitalise on the work being done to roll out a Spanish version of our techn
Slide 23: Outlook
23 For personal use only Outlook to 31 December 2016
Slide 24: Performance Outlook
24 Performance Outlook For personal use only carsales Domestic Outlook H2 FY17 has commenced well with January once again proving to be an attractive month for car buyers in the domestic business. Domestic adjacencies continue to build scale and breadth with a number of promising opportunities. We c
Slide 25: New Product Releases
25 For personal use only New Product Releases to 31 December 2016
Slide 26: Ryvuss powered new carsales search experience
26 Ryvuss powered new carsales search experience For personal use only Currently in beta
Slide 27: Pay Protect
For personal use only Pay Protect 27
Slide 28: Cyclops - Automated Image Recognition Capability
28 Cyclops - Automated Image Recognition Capability For personal use only
Slide 29: New soloautos retail site
29 New soloautos retail site For personal use only
Slide 30: New chileautos retail site
30 New chileautos retail site For personal use only
Slide 31: New mobile and app design
31 New mobile and app design For personal use only
Slide 32: Appendix
32 For personal use only Appendix to 31 December 2016
Slide 33: Overview of carsales Non-IFRS Financial Information
33 Overview of carsales Non-IFRS Financial Information What is IFRS and non-IFRS financial information? For personal use only • IFRS financial information is financial information that is presented in accordance with all relevant accounting standards. • Non-IFRS financial information is financial in
Slide 34: Reconciliation of Reported to Adjusted NPAT
34 Reconciliation of Reported to Adjusted NPAT For personal use only $A Millions Growth Half Year Ending 31 December 2016 H1 FY16 H1 FY17 $'s % Reported NPAT 51.3 47.2 (4.1) (8%) Gain on associate dilution (0.9) (0.3) Associate fair value revaluation loss - 7.1 SK Encar one-off tax gain - (0.8) NPAT
Slide 35: Look Through Revenue and EBITDA Performance
35 Look Through Revenue and EBITDA Performance For personal use only Look Through Revenue ($m) Look Through EBITDA ($m) 173.3 Millions Millions 159.4 84.5 81.1 146.2 73.5 20.4 116.8 16.5 64.4 5.7 14.0 5.4 102.1 4.3 53.9 6.6 1.8 1.1 0.6 142.9 152.9 78.8 132.2 69.2 75.7 110.3 62.6 101.0 53.3 H1 FY13 H
Slide 36: carsales Look Through P&L Analysis
36 carsales “Look Through” P&L Analysis HY15 HY16 HY17 Days Look Days Look Days Look % Owned Owned Reported Underlying Through % Owned Owned Reported Underlying Through % Owned Owned Reported Underlying Through For personal use only Revenue carsales International iCar Asia 22.9%, 20.3% 141, 42 Equit
Slide 37: carsales
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