Car Group Limited · ASX:CAR
Car — H1 FY22 Earnings Presentation
43 slides from Car's earnings presentation, Feb 14, 2022
Slide 1: Half Year Results Presentation
Half Year Results Presentation HALF YEAR ENDED 31 DECEMBER 2021
Slide 2: Disclaimer and Non-IFRS Information
Disclaimer and Non-IFRS Information Disclaimer Non-IFRS Financial Information The material in this presentation has been preparation of such statements, actual carsales' results are reported under prepared by carsales.com Limited (ASX: results may vary in a material manner. International Financial R
Slide 3: Contents
Contents Performance Summary 4–8 Group Financial Review 9 – 15 carsales Australia 16 – 19 carsales International 20 – 24 Strategy Update 25 – 32 FY22 Outlook 33 – 34 Appendix 35 – 43 3
Slide 4: Performance Summary
Performance Summary
Slide 5: Executing on Our Strategic Plans
Executing on Our Strategic Plans $ We continue to deliver excellent growth in revenue and earnings with significant long term growth potential Our dynamic pricing model is delivering significant value upside, contributing to 38% revenue growth in the private segment (highest since 2011) Australia We
Slide 6: H1 FY22 Financial Highlights
H1 FY22 Financial Highlights • Strong revenue result and solid earnings result excluding the impact of government wage subsidies which were received in H1 FY21 • Results demonstrate a resilient and diverse business across multiple industries, geographies and customer segments • Pleasing domestic res
Slide 7: Outstanding Operating Metrics
Outstanding Operating Metrics Metrics reflect the value we create for our customers and our leading position in key markets Marketplace Highlights Dealer Highlights Consumer Highlights 1.7 million 45 thousand 9.2 billion Vehicles online1 Subscribed dealers2 Vehicle page views3 632 million 178 thousa
Slide 8: Market Observations
Market Observations carsales is a resilient business through different economic cycles MACRO FACTORS SUPPLY CHAIN CONSUMER TRENDS Observations Observations Car Ownership • Australia is seeing inflation increase and a • Demand for auto and lifestyle assets • Car usage has become the preferred method
Slide 9: Group Financial Review
Group Financial Review
Slide 10: Strong Track Record of Growth
Strong Track Record of Growth Well positioned to continue delivering long-term shareholder value through world-class capability, exposure to international growth markets and investment in new products and services ADJUSTED REVENUE1 ADJUSTED EBITDA1 ADJUSTED NPAT1 CAGR 9% CAGR 9% CAGR 10% 89 242 74 1
Slide 11: Segment Revenue & EBITDA
Segment Revenue & EBITDA Half-Year Ending Growth Constant Revenue 31 December 2021 H1 FY21 H1 FY22 $'s % Currency • Delivered 16% growth in Adjusted Revenue, 10% underlying growth excluding tyreconnect acquisition Dealer 85.5 86.1 0.6 1% • Solid Online Advertising growth reflects the strength of the
Slide 12: EBITDA Margin Summary
EBITDA Margin Summary 1 Strong underlying margin performance in the core business Commentary -1.8% 56.5% 1.0% (1.1%) (1.3%) 1• Underlying margin expansion reflects solid revenue (0.4%) 54.7% (2.5%) 52.2% result combined with diligent cost control, whilst continuing to invest in future growth initiat
Slide 13: Adjusted Net Profit After Tax Summary
Adjusted Net Profit After Tax Summary Commentary Half-Year Ending $A Millions Growth 31 December 2021 H1 FY21 H1 FY22 $'s % 1• D&A increased by $3.0m due to increased depreciation of 1 building fit outs and software assets. The software Adjusted EBITDA 125.5 126.7 1.2 1% investment continues to supp
Slide 14: Look-through Growth
Look-through1 Growth Strong track record of Look-through Revenue & EBITDA growth, with increasing contributions from existing international business and the inclusion of Trader Interactive LOOK-THROUGH1 REVENUE LOOK-THROUGH1 EBITDA carsales Australia carsales International carsales Australia carsale
Slide 15: Strong Cash Flow and Robust Balance Sheet
Strong Cash Flow and Robust Balance Sheet CASHFLOW CONVERSION CAPEX ($m) Commentary Cashflow1 Reported EBITDA to cash conversion 22.0 127 125 1.7 1.7 • Good conversion of EBITDA to cash flow 130.0 114 170% reflects the attractive working capital profile 160% 17.3 105 150% 20.3 110.0 140% 130% of the
Slide 16: carsales Australia
carsales Australia
Slide 17: Australia Revenue – Dealer & Media
Australia Revenue – Dealer & Media DEALER ADJUSTED REVENUE1 UP 1% TO $86.1m MEDIA ADJUSTED REVENUE1 UP 11% TO $25.9m 85.5 86.1 25.9 23.4 1% 11% H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Extended lockdowns in Eastern states impacted trading activity. As • Improvement in media performance continued, with exce
Slide 18: Australia Revenue – Private & DR&S
Australia Revenue – Private & DR&S PRIVATE REVENUE UP 38% TO $31.5m DR&S ADJUSTED REVENUE1 UP 1% TO $21.8m 31.5 21.6 21.8 22.8 38% 1% H1 FY21 H1 FY22 H1 FY21 H1 FY22 • Excellent revenue growth of 38% on pcp supported by good trading • Resilient result given the impact of prolonged lock downs and con
Slide 19: carsales Investments
carsales Investments CARSALES INVESTMENTS REVENUE UP 120% TO $26.9m H1 FY22 PERFORMANCE COMMENTARY • Integration of the tyreconnect acquisition is 26.9 progressing well • Tyres business now achieving positive earnings with continued growth to be 12.2 supported by material improvement in volume rebat
Slide 20: carsales International
carsales International
Slide 21: Asia – Encar
Asia – Encar Strong growth from Encar, underpinned by continued momentum of key products FINANCIAL SUMMARY H1 FY22 PERFORMANCE COMMENTARY • Strong financial performance across revenue and EBITDA. Encar $A Millions Growth Constant invested 4.7m (AUD) to increase penetration and drive future H1 FY21 H
Slide 22: Americas – Trader Interactive
Americas – Trader Interactive Excellent revenue and EBITDA growth, recovering inventory volumes driving momentum FINANCIAL SUMMARY H1 FY22 PERFORMANCE COMMENTARY Pro-forma $A Millions Growth Constant • Excellent financial performance over the last six months, 1 with revenue and EBITDA growth of 12%
Slide 23: Americas – webmotors
Americas – webmotors Outstanding revenue and EBITDA growth driven by strong volumes and yield expansion FINANCIAL SUMMARY H1 FY22 PERFORMANCE COMMENTARY • Excellent financial performance with 20% growth in Pro-forma $A Millions Growth Constant revenue and 19% growth in EBITDA 100% H1 FY21 H1 FY22 $'
Slide 24: Americas – chileautos and soloautos
Americas – chileautos and soloautos Difficult trading conditions in Chile and Mexico partly mitigated by strong cost management CHILE – CHILEAUTOS MEXICO – SOLOAUTOS $A Millions Growth Constant $A Millions Growth Constant H1 FY21 H1 FY22 $'s % Currency H1 FY21 H1 FY22 $'s % Currency Revenue 2.3 2.3
Slide 25: Strategy Update
Strategy Update
Slide 26: Australian Priorities
Australian Priorities Significant growth opportunities in large addressable markets2 Digital Digital Dynamic Media & Dealer Retailing Trade-ins Pricing Membership Finance $81-$135m TAM $225m TAM $175m TAM 3 $800m TAM $50m TAM H1 FY22 Achievements H1 FY22 Achievements H1 FY22 Achievements H1 FY22 Ach
Slide 27: carsales Select is Gaining Momentum
carsales Select is Gaining Momentum Average Typical Digital 15 - $81 - The digital retailing opportunity is large Volume 150k x used $3,585 x ecomm. 25% = TAM1 $135m margin margin Our focus is on customer acquisition Inventory is growing Inventory growth through customer acquisition with all Cumulat
Slide 28: Dynamic Pricing Model Is Driving Growth
Dynamic Pricing Model Is Driving Growth Phase 1 of dynamic pricing significantly enhanced private ad yield with private ad revenue up 38% in H1 LOCATION-BASED PRICING HAS DELIVERED VALUE MICRO-BRACKETING IS NEXT • Location based dynamic pricing has enabled a more nuanced and value- • Micro-bracket p
Slide 29: Trader Interactive Priorities
Trader Interactive Priorities Expanding our market leadership and enhancing the buying and selling experience Market New Products Value Proposition Digital Leadership and Services and ROI Retailing H1 FY22 Achievements H1 FY22 Achievements H1 FY22 Achievements H1 FY22 Achievements • Increased market
Slide 30: Strong Business Fundamentals Heading into 2022
Strong Business Fundamentals Heading into 2022 Published inventory is improving Leads per dealer is increasing Unique listings/month (thousands, December) Leads/dealer/month 2x 397 1,154 330 328 2.3x 294 856 242 775 1.9x 228 222 198 148 133128138 2.2x 1.2x 19 21 19 21 19 21 19 21 19 21 19 20 21 19 2
Slide 31: Encar Priorities
Encar Priorities Transforming Encar from a classifieds model to an online car transaction platform Guarantee Cars Encar Home Dealer Direct H1 FY22 Achievements H1 FY22 Achievements H1 FY22 Achievements Digital Retailing • Increased Guarantee • Increased Encar Home • Nearly doubled transaction penetr
Slide 32: Digital Trade-ins Ramping Up
Digital Trade-ins Ramping Up Improving user experience, expanding the network and growing transaction volume KOREAN TRADE-IN MARKET DEALER DIRECT PRODUCT PERFORMANCE • The trade-in market is a significant • Auction platform for consumers to list cars. • Dealer Direct volumes have been growing opport
Slide 33: FY22 Outlook
FY22 Outlook
Slide 34: FY22 Outlook
FY22 Outlook Outlook statement Excluding recent acquisitions1 We expect to deliver solid growth in Group Adjusted revenue, Adjusted EBITDA and Adjusted NPAT 2 in FY22. Including recent acquisitions1 We expect to deliver strong growth in Group Adjusted revenue, solid growth in Group Adjusted EBITDA a
Slide 35: Appendix
Appendix
Slide 36: Overview Of carsales Non-IFRS Financial Information
Overview Of carsales Non-IFRS Financial Information What is IFRS and non-IFRS financial information presented is sourced directly presentations in order to allow the reader to information? from financial information prepared in clearly reconcile between the IFRS and non- accordance with all relevant
Slide 37: Look-through P&L (AUD)
“Look-through1” P&L (AUD) Look-through 1 Excluding Acquisitions2 Pro forma3 $A Millions H1 FY21 H1 FY22 Growth % H1 FY21 H1 FY22 Growth % H1 FY21 H1 FY22 Growth % Australia 162.8 189.8 17% 162.8 177.3 9% 174.9 189.8 9% International 53.7 92.3 72% 53.7 61.5 14% 95.1 108.1 14% Brazil 9.7 11.5 18% 9.7
Slide 38: Look-through P&L (Constant Currency)
“Look-through1” P&L (Constant Currency) Look-through 1 Excluding Acquisitions2 Pro forma3 $A Millions H1 FY21 H1 FY22 Growth % H1 FY21 H1 FY22 Growth % H1 FY21 H1 FY22 Growth % Australia 162.8 189.8 17% 162.8 177.3 9% 174.9 189.8 9% International 52.4 92.3 76% 52.4 61.5 17% 94.0 108.1 15% Brazil 9.6
Slide 39: Reconciliation of Reported to Adjusted Financials
Reconciliation of Reported to Adjusted Financials H1 FY21 H1 FY22 Growth % $A Millions Reported Adj's Adjusted Reported Adj's Adjusted Reported Adjusted Revenue Online Advertising 123.5 8.2 131.7 143.1 0.4 143.5 0.2 0.1 Data, Research and Services 19.2 2.4 21.6 21.8 - 21.8 0.1 (0.0) carsales Investm
Slide 40: Reconciliation of Reported to Adjusted Financials
Reconciliation of Reported to Adjusted Financials Consolidated carsales Group H1 FY21 H1 FY22 $A Millions Revenue EBITDA NPAT Revenue EBITDA NPAT Reported Financials 198.9 113.8 61.1 241.9 125.3 74.6 Dealer Support Package 10.6 10.6 7.4 0.4 0.4 0.3 Restructuring and M&A transaction costs - 1.1 0.8 -
Slide 41: Total Addressable Markets
Total Addressable Markets carsales operates in large addressable markets, that have been accelerated by COVID-related digitisation Core International Emerging Opportunities Non-Marketplace Dealer Private Media US Korea LatAm Digital Digital Dealer Data & Tyres Advertising Seller Advertising Non-auto
Slide 42: Total Addressable Markets – Emerging Digital Opportunities
Total Addressable Markets – Emerging Digital Opportunities Australia Auto – Emerging Digital Opportunities Market Digital Retailing Digital trade-in Finance Commissions Product Dealer Finance Annual transaction volume1 1.0m 2.25m 2.0m (B2C - used) (trade-in + C2C) (B2C) x Addressable share 15%2 20%2
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