Slide 1: Half year results presentation
Half year results presentation Half year ended 30 September 2022 10 November 2022 = AutoTrader
Slide 2: Disclaimer
Disclaimer The information and opinions provided in this presentation are provided as of the date of this presentation. Certain statements in this presentation constitute forward looking statements (including beliefs or opinions). Any statement in this presentation that is not a statement of histori
Slide 3: Strategic overview
Strategic overview » » » » » » The performance of our core Auto Trader marketplace has strengthened over the last six months, achieving double digit revenue and operating profit growth year-on-year. Our customer numbers and product uptake have exceeded expectations, and our competitive position cont
Slide 4: Group financial results
Group financial results » £m (unless otherwise specified) H12023 H12022 Change Auto Trader 238.2 215.4 1% Autorama 11.6 > > Group revenue 249.8 215.4 16% Auto Trader 168.8 151.7 1% Autorama (4.0) - - Group centralcosts (15.7) 2 2 Group operating profit/(loss) 149.1 151.7 (2%) Auto Trader 71% 70% 1%
Slide 5: Operational results
Operational results » Cross platform visits: down 10% to 67.7 million per month (H1 2022: 74.9 million). Cross platform minutes 68m were down 14% to 498 million minutes per month on average (H1 2022: 579 million minutes). However, both visits and minutes were up significantly versus pre-pandemic lev
Slide 6: Cultural KPIs (excluding Autorama)
Cultural KPls (excluding Autorama) » 93% Employees that are proud to work at Auto Trader remained high at 93% (March 2022: 95%) 40% Percentage of our employees who are women was 40% in September 2022 (March 2022: 40%). ° The percentage of women in leadership positions was 40% (March 2022: 38%) Perce
Slide 7: & O c 1e) = i = Autotrader
& 2 O c 1e) = i = Autotrader
Slide 8: Auto Trader revenue
Auto Trader revenue Revenue (£m) H1 2021 H12022 H1 2023 Trade mConsumer services =Manufacturer & Agency ises: 2m); Home Trader (: = AutoTrader Average Revenue Per Retailer (ARPR) (£) “ i) 2,199 Hi 2021 H1 2022 —_ 2,404 es > H12023 Hi 2021 H1 2022 14,161 H12023 Retailer revenue (£m) 183.3 Hi 2021 H1
Slide 9: Auto Trader ARPR, stock and retailers
Auto Trader ARPR, stock and retailers ARPR levers Physical car stock and retailer forecourts evenue Per Retailer per month (£) Y-on-Y average ® retailers (£) GD C2993 ) £205 ) Y-on-Y average @Q live physical car i o * 17,000 i 500 | 16,000 450 oO @ s 8 . oom > = 19 i 3 400% 4 72 14,000 % 49 57 iB 35
Slide 10: Auto Trader costs and Operating profit
Auto Trader costs and Operating profit Costs (£m) Operating profit (£m Six months end: Six months ended mi Y-on-Y % @® [29%] 8% Y-on-Y % (48%) wn as HI 2023 70% 71% @ 58% -- 8% 168.8 151.7 H1 2021 Hi 2022 H12023 H1 2021 H12022 H1 2023 mPeoplecosts mMarketing mOthercosts’ =D&A mmm Operating profit |
Slide 11: Autorama results
Autorama results Revenue and costs" (£m) Six months ended 30 September 2022 is shown as HI 2023 15.6 Revenue Costs Commission & Ancillary =Costs of goods sold =People costs = Vehicle & Accessory Sales = Marketing = Other costs =D&A 1 C.10% of vehicles are taken on balance sheet. Sales revenue is ! 1
Slide 12: Group profit and cash flow
Group profit and cash flow Operating profit (£m) Six months end: ptember 2022 is shown as H1 20 Cash generated from operations (£m) Six months ende mber 2022 tons o2 2 oO 70% OSCR, 173 aa ae Sa 60% es | | (70) (1) 58% . ‘s 1494 164.6 151.7 1491 ° H1 2021 H1 2022 H12023 Operating D&A —SBP(exc NI)& Mo
Slide 13: Group income statement
Group income statement [gee] el Revenue 249.8 215.4 Operating costs (101.8) (65.4) 56% Share of profit from joint ventures 11 1.7 (35%) Operating profit 149.1 151.7 (2%) Finance costs - net (1.1) (1.7) (35%) Profit before taxation 148.0 150.0 (1%) Taxation (32.8) (28.3) 16% Profit for the year attri
Slide 14: Net bank debt and capital allocation policy
Net bank debt and capital allocation policy Reconciliation of net bank debt position (£m) 164.6 (1.1) (1.6) (1.6) (31.4) (3.9) 51.3 March2022 Cash ‘generated from ops Lease payments capex Netinterest Taxpaid — changein Gross bank t som ) —— Gross bank debt increased by £75m through the period ———> t
Slide 15: UK car market
UK car market = Autotrader
Slide 16: New car registrations declined in the period due to continued levels of supply shortages
New car registrations declined in the period due to continued levels of supply shortages New car registrations!) Used car transactions(2) 3.0 60% 9.0 60% 50% 8.0 50% 28 40% 40% 7.0 30% = 30% 200 2 6.0 3 3 3 3 z 20% 3 15% 20% if 13% & § 5.0 eI 3 5 5 o% ron 55 mE ox 10x = 5 Th oy 3 3% “e 3 340 3% : TE
Slide 17: Used car prices remain strong, with prices materially above where they would have been
Used car prices remain strong, with prices materially above where they would have been in ‘normal’ market conditions Average price of used car, 2014-2022 Actual vs. projection based on historical trend oa ©@® 8&® 8s 8&® o&® 8&® & ®&® ® £20,000 40.0% £18,000 35.0% £16,000 30.0% £14,000 25.0% £12,000
Slide 18: The UK car parc remained broadly flat through calendar year 2021
The UK car parc remained broadly flat through calendar year 2021, with the average time people hold their car decreasing to 3.8 years UK car parc a ° UK Car Parc- million Calendar year Scrapped ——Car parc Total number of cars = AutoTrader 3.0 (2.0) (3.0) S 3 3 8 g A 2 Frequency of transactions (year
Slide 19: Auto Trader has maintained its position as the UK's largest and most engaged automotive marketplace
Auto Trader has maintained its position as the UK’s largest and most engaged automotive marketplace for new and used cars Cross platform visits” Average minutes spent H1 2023!2) (Average pcm- million) (Average pcm- million) Auto Trader vs. competitors H1 2023: 57.5 ° . 498 H1 2020 Hi 2021 H1 2022 H1
Slide 20: Product update
Product update = Autotrader
Slide 21: In H1 2023, we made progress against our three strategic focus areas
In H1 2023, we made progress against our three strategic focus areas = AutoTrader DIGITAL RETAILING PLATFORM CLASSIFIED MARKETPLACE H1 2023 ACHIEVEMENTS > Classified marketplace: * Enhanced our electric vehicle content and proposition, focussing on the advert view * Launched research hubs, a differe
Slide 22: We continue to improve our electric vehicle experience
We continue to improve our electric vehicle experience CLASSIFIED MARKETPLACE: ELECTRIC VEHICLE CHARGING INFORMATION Launched in September 2022 CONSUMER BENEFITS RETAILER BENEFITS AUTO TRADER BENEFITS = AutoTrader Charging information on EVs is complex - each manufacturer presents the data different
Slide 23: We have surfaced used car valuations data to retailers as part of Auto Trader Connect
We have surfaced used car valuations data to retailers as part of Auto Trader Connect PLATFORM: AUTO TRADER CONNECT - VALUATIONS MODULE Launched in October 2022 CONSUMER BENEFITS RETAILER BENEFITS MANUFACTURER BENEFITS SOFTWARE PROVIDER BENEFITS AUTO TRADER BENEFITS = AutoTrader Able to compare simi
Slide 24: 'Deal Builder' is now live on Auto Trader with a handful of customers
‘Deal Builder’ is now live on Auto Trader with a handful of customers DIGITAL RETAILING: DEAL BUILDER Launched in August 2022 + Addresses multiple consumer pain points CONSUMER . onsporeney ourney with greater BENEFITS * Increased control, do as much of the process online as they wish * Much more hi
Slide 25: Outlook
Outlook = Autotrader
Slide 26: Our H2 2023 priorities reflect our strategic focus areas
Our H2 2023 priorities reflect our strategic focus areas DIGITAL RETAILING H2 2023 PRIORITIES Classified marketplace: PHAURORI > * Data led conversations to support retailer performance and stock * Continued upsell of prominence products = > Platform: a * Integrate the next phase of Auto Trader Conn
Slide 27: Outlook
ook The Board has confidence for the second half of the year due to: * consistent trading throughout October; * the recurring nature of our revenue and delivering our main growth initiatives in the first half of the year; + the fact that our financial performancein the first half was achieved despit
Slide 28: Appendix
Appendix = Autotrader
Slide 29: Used car pricing has been following, if not ahead, of seasonal patterns throughout 2022
Used car pricing has been following, if not ahead, of seasonal patterns throughout 2022 USED CAR MONTH-ON-MONTH RETAIL PRICE MOVEMENTS Like for like, removes impact of stock mix shift to reflect true value adjustments July August September October 5% 5% 5% 5% ak ae ak ak 3% 3% 3% 3% 2% 2% 2% 2% 1% 1
Slide 30: Cashflow statement
Cashflow statement 12025 12022 lion £ million Profit before tax 148.0 150.0 Depreciation & amortisation 539) 3.6 Share-based payments charge (excl. associated NI) 17.3 3.2 Share of profit from joint ventures (1.1) (1.7) Finance costs - net 11 1.7 Other non-cash items 0.4 0.1 Changes in working capit
Slide 31: Sale of Webzone Limited
Sale of Webzone Limited On 24 October 2022, Auto Trader Group plc sold one of its subsidiaries, Webzone Limited, which trades in the Republic of Ireland under the Carzone brand. The business has been sold to Mediahuis Ireland, Ireland's leading print and digital media publisher which also owns Carsi
Slide 32: Five year record
Five year record £m (unless otherwise specified) 2022 2021 2020 2019 2018 Trade 388.3 225.2 324.3 304.6 281.2 Consumer Services oes 26.6 28.3 28.0 29.8 Manufacturer & Agency NA 11.0 16.3 22.5 19. Revenue 432.7 262.8 368.9 355.1 330.1 Costs (132.0) (104.0) (113.2) (112.3) (108.8) Share of profit from
Slide 33: Notes
Notes = Autotrader 33
Slide 34: Notes
Notes = Autotrader 34