Slide 1: Full year results presentation
Full year results presentation Year ended 31 March 2019 6 June 2019 = 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Disclaimer Not for publication, transmission, distribution or release, directly or indirectly, in or into any jurisdiction in which the publication, transmission, distribution or release of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 or by reading this d
Slide 3: Financial highlights
Financial highlights* +8% +10% 69% +18% +13% £151m £30m Revenue: up 8% to £355.1 million (2018: £330.1 million) Operating profit:* up 10% to £243.7 million (2018: £221.3 million) Operating profit margin:* up 2% points to 69% (2018: 67%). Operating cost growth of 3% Earnings and distribution:* Basic
Slide 4: Operational highlights
Operational highlights +£149 +2% +0% 239m 49.1m 804 ARPR: up £149 to £1,844 on average per month (2018: £1,695), with growth from product and price offsetting an expected reduction from stock Physical car stock on site: up 2% to 461,000 cars (2018: 453,000) on average. Our new car listings product c
Slide 5: Leading digital player in automotive market provides multiple horizons of growth
Our position as the leading digital player in the automotive market provides multiple horizons of growth with our customers over time Horizon3 Horizon 2 Horizon1 an aa Core Adjacent Future We look to continually enhance our Become to new cars what we are in Help consumers transact online core throug
Slide 6: Strategic highlights
Strategic highlights Gra Stock penetration of our Advanced and Premium packages has reached 19% from 12% in March 2018 and 15% in September 2018, as retailers continue to see the benefits of paying more to appear with a greater level of prominence on site We successfully monetised our Dealer Finance
Slide 7: Financials
Financials = AutoTrader
Slide 8: Revenue
Revenue Revenue (£m) Year ended 31 March 2019 is shown as 2019 oUlCUDeCO 355.1 330.1 311.4 8% 2017 2018 2019 Trade =Consumer services = Manufacturer & Agency ear percentages have been adjusted to give like-for-like growth rates irrespective of the number of trading days in the year. (2017:369 days;
Slide 9: ARPR increase driven by product growth has offset the anticipated stock headwind
ARPR increase driven by product growth has offset the anticipated stock headwind ARPR levers Growth in Average Revenue Per Retailer per month (£) (£) ~ & & O 121 86 86 50 48 43 28 tT U : (22) 2017 2018 2019 mPrice =Stock =Product BAvtotTrader 11207/:20ercentage growih aojusted for the numberof days
Slide 10: Costs
Costs Costs (£m)* Year ending 31 March 2019 is shown as 2019 Year-on- year growth 107.5 112.3 8.9 56.4 Fx) (0.4) 2017 2018 2019 People costs = Marketing = Other costs” =D&A wExceptionals 2017: £4.5m; 2018:£3.7m) “Note: Costs for 2017 ond 2018 have been restated following the MmAUOTLAder ser siss oie
Slide 11: Profit and cash flow
Profit and cash flow Operating profit (£m)* Year ended 31 March 2019 is shown as 2019 * Note: Operating profit for 2017 and 2018 has been restated following the implementation of IFRS 16 o oo 67% 69% 65% Year-on- year growth = AutoTrader 243.7 221.3 2017 2018 2019 mms Operating profit ——— Operating
Slide 12: Income statement
Income statement 2019 2018* (restated) Revenue 355.1 330.1 Administrative expenses (112.3) (108.8) Share of results of joint ventures 0.9 - - Operating profit 243.7 221.3 10% Finance costs-—net (10.2) (10.6) 4% Profit on disposal of subsi 8.7 - - Profit before taxation 242.2 210.7 15% Taxation (44.5
Slide 13: Net external debt and capital allocation
Net external debt and capital allocation Reconciliation of net external debt " (£m) © Leverage (2) @® 338.7 258.5 (2.3) (19.7) (3.1) (6.6) (42.2) (3.3) 1.9 (57.6) (94.0) 307.1 March2oie Gash Capex _Netcash Lease, NetinterestTaxpoid Refinancing | Proceeds, Dividends share buy- March 2019 generated ou
Slide 14: UK car market
UK car ~ od) —~ Se e) = = AutoTrader
Slide 15: New and used car market trends
ine 30% fter a period of decl . using a . Used car transactions 2) 9.0 30% ions" 3.0 The new and used car markets both look to be stab New car registrat yjUOW 84} Ul] YIMOIB ADeK-UO-1DE,_ (20%) (30%) 8 ° 2019 3 ° 2018 ro 2 oO 2017 ry ° ” ° ” o oO N Nn oo (w) suonopsup.3 409 pasn yo sequin 6.0 yjuow
Slide 16: The UK car parc continues to grow with 34.9 million cars
The UK car parc continues to grow with 34.9 million cars on UK roads. New and used transactions have moderated but owners still transact every 3.4 years UK Car Pare Frequency of transactions (years) Total number of transactions (millions) 36.0 3.0 35.0 2.0 § 5 34.0 s 5.4553535353. 455 384 = 33.0 10
Slide 17: Share of minutes vs competitive set
(1) Share of minutes is a custom metric based on Comscore minutes (MM) and is calculated by dividing Auto Trader’s total minutes volume by the entire custom-defined competitive set’s total minutes volume. Comscore MMX® Multi-Platform, Total Audience, Custom-defined list includes: Auto Trader, Gumtre
Slide 18: Product update
Product update = AutoTrader
Slide 19: Both Managing products totally redesigned and replatformed
During the year both of our data analytics ‘Managing’ products were totally redesigned and replatformed with the underlying analytics dramatically improved, enabling further growth opportunity Retail Accelerator (formerly i-Control) Managing forecourts Average number in the month of March Year ended
Slide 20: Over 30,000 physical new cars available on our site
Over 30,000 physical new cars are available on our site for consumers to search AutoTrader Buyingnew&used Sellyourcar Carreviews &more Finance, insurance & more 9 out of 10 153 cars found car buyers would like a site where they could compare brand new cars available at local retailers & Save search
Slide 21: Dealer Auction has got off to a good start in disrupting B2B marketplace
Dealer Auction has got off to a good start in disrupting the B2B marketplace 4) dealerauction Sell faster. Buy smarter. wel Smart Buying ot ' Manheim (@) Dealer-Auction.com | ! (formerly Autotrade-mail) | | online 58,000 vehicles advertised between tt >30,000 vehicles transacted ' ' January and Marc
Slide 22: First steps towards facilitating an online transaction
We are making our first steps towards facilitating an online transaction ee ae, = AutoTrader '382.9292 (07441) 912190, Find your next car and then build your deal to obtain a monthly price AutoTrader Finance this car 22
Slide 23: Outlook
Outlook = AutoTrader
Slide 24: Year off to a good start with Vehicle Check package
The year is off to a good start with the April event introducing our Vehicle Check proposition as a package option, offering an attractive feature for consumers and a valuable one for retailers For consumers Vehicle check shown on the retailers FPAs The percentage of independent retailers paying for
Slide 25: 2020 outlook
2020 outlook * The financial year has started well with the success of our annual pricing event and the launch of a new Vehicle Check product for independent retailers. * We expect another strong year of ARPR growth. This will be underpinned by our product lever, albeit the growth in productis not l
Slide 26: A
A = AutoTrader
Slide 27: Appendix
Appendix = AutoTrader
Slide 28: Cashflow statement
Cashflow statement 2019 2018* (restated) Profit before tax 242.2 210.7 Depreciation & amortisation 8.9 9.0 Share-based payments charge (exc NI) 4.7 3.3 Profit on sale of subsidiary (8.7) - Share of profit from joint ventures (0.9) - Finance costs- net 10.2 10.6 Other non-cash items 0.4 0.0 Changes i
Slide 29: Unlocking these horizons opens up long-term market opportunities
Unlocking these horizons opens up long-term market opportunities The core business and the future Adjacent Ge Ly Hy Automotive finance commissions New car marketing £1.0bn £900m Total used car retailer operating costs £3.8bn Used car marketing £0.5bn B2B auction fees £600m Auto Trader £0.3bn 29
Slide 30: The automotive ecosystem
The automotive ecosystem Pa Manufacturers = AutoTrader Dispose New car leasing Newand used car oo Retailers Part-exchange im Banks, lenders and brokers Auctions Car buying schemes - Insurers, underwriters and comparisons sites Source Dispose 30
Slide 31: Underlying prices of used cars advertised by retailers continue to increase
Underlying prices of used cars advertised by retailers continue to increase Like-for-like price increase £14,000 @ £12,000 — 2 ! 5 1 > £10,000 1 | o 2 ‘ ' © £8,000 i ' g 3 1 1 3 £6,000 ! 1 o ‘ | D ' : £ £4,000 H 1 : | TT | 2 9000 = ———— LLL ! 1 1 £0 : ' 1 e€osy FE SFEBUBoua gt eFoefcCH FE FEReEBOAPR
Slide 32: Auto Trader advertising package structure
Auto Trader advertising package structure Starter Engage your buyers through the essentials of modern online retailing [=] 1001mages KBB Part-excuide ik” Dealer Reviews Relative prices between package levels: = AutoTrader Standard Improve visibility of your stock onmobile and drive more ad views Bas
Slide 33: Impact of IFRS 16 on the income statement
Impact of IFRS 16 on the income statement Year ended 31 March 2019 Year ended 31 March 2018 Income statement Before Before adoption of Impact of adoption of Impact of 2018 IFRS 16 IFRS 16 IFRS 16 IFRS 16 restated (£m) (£m) (£m) (£m) (£m) Revenue 355.1 = 355.1 330.1 - 330.1 People costs (56.4) - (56.
Slide 34: Notes
Notes = AutoTrader 34
Slide 35: Notes
Notes = AutoTrader 35
Slide 36: a
a AutoTrader