Carmax Inc · NYSE:KMX
Carmax — Investor Presentation (2023)
26 slides from Carmax's investor presentation, 2023
Slide 1: Strategy and Responsibility Overview 2023
Strategy and Responsibility Overview 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements Our statements today regarding the company’s future business plans, prospects, and financial performance are forward-looking statements that we make pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are based o
Slide 3: Company Update, Corporate Governance, Corporate Responsibility, Executive Compensation
Company Update Corporate Governance Corporate Responsibility Executive Compensation
Slide 4: CarMax is Positioned for Growth
CarMax is Positioned for Growth LEADER DIFFERENTIATED CUSTOMER-CENTRIC EFFICIENCIES SHAREHOLDER The leader in a Differentiated scale, The most customer-centric Highly focused on VALUE massive, highly technology, data and omni-channel experience in driving additional Strong, diversified fragmented ma
Slide 5: Unmatched Scale and Infrastructure
Unmatched Scale and Infrastructure Leading Used Nationwide Unmatched Auto Retailer Retail Footprint Customer Reach CarMax Peer 1 808K units 240+ Stores Peer 2 109 Peer 3 Peer 4 Television Markets covering… Peer 5 Peer 6 Peer 7 ~30,000 Associates ~85% of the U.S. Population CarMax FY23 vs Public Peer
Slide 6: Technology and Data Advantages Drive Key Metrics
Technology and Data Advantages Drive Key Metrics Technology and Data Advantages Key Metrics >300M >80% Customers utilize online Web Visits Annually Finance Based Shopping Tool (1) >3M >95% Credit Applications Annually Credit Approval Rate >10M >70% Vehicles Appraised Annually Self-Sufficiency (2) ~2
Slide 7: Diversified and Resilient Business Model
Diversified and Resilient Business Model (1) Resilient: Proven Ability to Adapt Diversified Profit Base in Changing Market Conditions Retail 53% • Experienced management team • Data advantage in identifying trends Finance 19% • Industry-leading vehicle sourcing capability Wholesale 17% • Diligent fo
Slide 8: Leveraging Edmunds Editorial Authority and Product Expertise to Establish Leading Position in EVs
Leveraging Edmunds Editorial Authority and Product Expertise to Establish Leading Position in EVs Editorial team has extensively covered Launched new products to address the EVs and is a leading voice trusted by challenges shoppers face in buying both consumers, press, and industry new and used elec
Slide 9: Enhancing the Most Customer-Centric Offering
Enhancing the Most Customer-Centric Offering We’ve Made Significant Investments over the Past 5 – 7 Years Core Omni-Channel Capabilities Independent • Allow customers to engage with us how, where & when they want, giving us the largest total addressable market Up Close Provide simple & seamless digi
Slide 10: Omni-channel offering is resonating with consumers
Omni-channel offering is resonating with consumers 14% 55% 31% Online (1) retail sales Omni (2) retail sales Total revenue resulting account for 14% of account for 55% of from online retail unit sales. retail unit sales. transactions. Data as of Q2 FY24 1) An online retail sale is defined as a sale
Slide 11: Corporate Governance
Company Update Corporate Governance Corporate Responsibility Executive Compensation
Slide 12: Best-in-Class Board of Directors
Best-in-Class Board of Directors Highly Talented and Experienced Board Possess the Key Competencies for CarMax’s Long-Term Strategy Thomas Folliard Mitchell Steenrod Ronald Blaylock Non-Executive Chair of the Peter Bensen Lead Independent Director; Founder and Managing Board; Retired President and R
Slide 13: Our Board of Directors Possesses Deep Experience
Our Board of Directors Possesses Deep Experience Summary of Skills / Expertise Public Company Leadership (CEO, CFO or Public Directorships) ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 10 of 11 directors Relevant Industry Experience ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ 8 of 11 directors Accounting & Finance ✓ ✓ ✓ ✓ 4 of 11 directors Innovation
Slide 14: Key Corporate Governance Practices
Key Corporate Governance Practices 4 75% 2023 Governance Developments New Independent Of Committees are Directors in Chaired by Women or Leveraged recently formed Technology and Past 5 Years Racially/Ethnically Innovation Committee to oversee compliance Diverse Directors with SEC’s newly adopted cyb
Slide 15: Tenured and Experienced Management Team
Tenured and Experienced Management Team Diverse Management Team focused on delivering on CarMax’s Long-Term Strategy Diane Cafritz Bill Nash Jim Lyski EVP, Human Resources, General President and Chief Executive Officer EVP, Chief Innovation & Strategy Officer Counsel & Chief Compliance Officer Mr. N
Slide 16: Corporate Responsibility
Company Update Corporate Governance Corporate Responsibility Executive Compensation
Slide 17: CarMax's Commitment to Responsible Practices
CarMax’s Commitment to Responsible Practices When CarMax first opened its doors in 1993, we made a commitment to conduct business in an ethical, honest, and transparent way Three working groups support the strategy We organize our approach to responsibility set by our internal ESG Leadership team: a
Slide 18: Putting People First
Putting People First Our diversity and inclusion vision Highlights from Fiscal Year 2023 include: is for everyone, everywhere, to have the same opportunity to Enhancing our employee benefits program to expand reach their full potential parental leave and educational assistance based on feedback gath
Slide 19: Caring for Our Communities
Caring for Our Communities CarMax and The CarMax Foundation are committed to investing in philanthropic organizations that ensure access to opportunity for everyone $100 million 100% of our locations allocated since 100 participated in 2003 given to help playgrounds built local our communities with
Slide 20: Protecting the Environment
Protecting the Environment Our Environmental Strategy ✓ Avoid and reduce emissions through energy conservation measures ✓ Apply on and off-site renewable energy generation During calendar year 2022, we realized a ~14% reduction ✓ Implement renewable energy procurement strategies, including renewable
Slide 21: Responsibility Reporting & ESG Governance
Responsibility Reporting & Our Responsibility Report includes a comprehensive ESG Governance discussion of the initiatives and programs we have implemented to support our commitment to having a positive impact on our people, communities, and the environment Several of the metrics and narrative discl
Slide 22: Executive Compensation
Company Update Corporate Governance Corporate Responsibility Executive Compensation CarMax Confidential
Slide 23: Pay-for-Performance Centric Compensation Philosophy
Pay-for-Performance Centric Compensation Philosophy “CarMax has a pay-for-performance philosophy. The Committee believes that the best way to implement this philosophy is by tying a significant portion of our executives’ total direct compensation to the attainment of our financial goals and multi-ye
Slide 24: Understanding and Addressing Shareholder Compensation-Related Sentiment
Understanding and Addressing Shareholder Compensation- Related Sentiment In connection with the 2023 say-on-pay outcome, CarMax’s Compensation and Personnel Committee has committed to the following enhancements to the Company’s executive compensation program: • CarMax will return to a three-year mea
Slide 25: CEO closing quote on revolutionizing the used car industry
“CarMax revolutionized the used car industry by offering integrity, honesty and transparency in every interaction. Looking ahead, we are once again revolutionizing the industry with a uniquely personalized car-buying experience that will further differentiate us in the used market and positions us t
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