Car Group Limited · ASX:CAR
Car — carsales.com — FY2016 Earnings Presentation
34 slides from Car's earnings presentation, Aug 9, 2016
Slide 1: Full year results presentation to 30 June 2016
1 For personal use only Full year results presentation to 30 June 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 4–7 Reported Group Financial Performance 8 – 11 carsales Domestic 12 – 16 carsales International 17 – 21 Outlook 22 – 23 New Product Releases 24 – 28 Appendix 29 – 34
Slide 4: Key Messages
4 For personal use only Key Messages to 30 June 2016
Slide 5: Organisational Structure
5 Organisational Structure For personal use only
Slide 6: Overview of FY16
6 Overview of FY16 For personal use only FINANCIAL OVERVIEW • Pleasing full year results. REPORTED REVENUE up • FY16 pcp growth in revenue of 10%, EBITDA of 10% and adjusted NPAT* of 9%. 10% to $344m Reported NPAT** up 6% to $109m. DOMESTIC OVERVIEW • Strong H2 revenue growth across all online adver
Slide 7: FY16 Operational Highlights
7 FY16 Operational Highlights For personal use only * Figures stated are for all websites in the carsales Network globally
Slide 8: Reported Group Financial Performance
8 For personal use only Reported Group Financial Performance to 30 June 2016
Slide 9: Financial Overview
9 Financial Overview $A Millions Growth Year Ending 30 June 2016 FY15 FY16 $'s % • Solid growth in revenue rising to $344.0m, up by 10% on pcp. Revenue • Operating expenses (before Interest and D&A) up 10% on pcp. Online Advertising 216.5 240.7 24.2 11% For personal use only • EBITDA up 10% on pcp t
Slide 10: Strong track record of financial performance
10 Strong track record of financial performance For personal use only REPORTED REVENUE REPORTED EBITDA ADJUSTED NPAT Millions Millions Millions CAGR 16.9% CAGR 13.9% CAGR 11.5% Once again carsales continues to demonstrate consistent high returns to its shareholders.
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 Reported Leverage Ratio conversion from EBITDA to cash (line) (Net debt / Annualised EBITDA) Millions Reported Net Interest Cover (Annualised E
Slide 12: carsales Domestic
12 For personal use only carsales Domestic to 30 June 2016
Slide 13: Domestic Revenue Performance - Summary
13 Domestic Revenue Performance - Summary $A Millions Growth For personal use only Year Ending 30 June 2016 FY15 FY16 $'s % Domestic Revenue Dealer 112.8 123.8 11.0 10% Private 43.0 51.1 8.1 19% Display 60.6 65.8 5.2 9% Total Online Advertising 216.4 240.7 24.3 11% Data, Research and Services 33.0 3
Slide 14: Domestic Revenue Performance by Category: Dealer and Private
14 Domestic Revenue Performance by Category Dealer For personal use only Millions Millions Dealer revenue up 10% on pcp to $123.8m Solid new and used car dealer enquiry volumes. Full year used enquiry volumes up 3% and in H2 new car enquiry volumes saw pcp growth. Pleasing used and new inventory gro
Slide 15: Domestic Revenue Performance by Category: Display and Data
15 Domestic Revenue Performance by Category Display For personal use only Millions Display revenue up 9% to $65.8m Continued improvement in revenue trend growth to 9% on pcp (FY15 3% on pcp). Refreshed new car showroom launched to provide new opportunities for display. Despite ongoing changes in OEM
Slide 16: Domestic Revenue Performance by Category: Finance
16 Domestic Revenue Performance by Category Finance and Related Services Revenue up 6% For personal use only to $63.0m Strong growth in core finance broking revenue up 31% on pcp. $A Millions Growth All About Finance acquisition integrated into core Stratton Year Ending 30 June 2016 FY15 FY16 $'s %
Slide 17: carsales International
17 For personal use only carsales International to 30 June 2016
Slide 18: International Portfolio
18 International Portfolio For personal use only $A Millions Growth • International Key Highlights Year Ending 30 June 2016 FY15 FY16 $'s % • Strong double digit revenue growth rates across International. • Business model progression continues in all of our businesses Revenue 2.9 4.4 1.5 54% to supp
Slide 19: Asia – Underlying Results
19 Asia – Underlying Results SKENCARSALES Financials (49.9% Owned - Equity Accounted by CAR) 12 months to 30 12 months to 30 For personal use only Pro-Forma (100%) PCP June 2015 June 2016 KRWb KRWb % Underlying Revenue* 24.9 30.0 20.6% Underlying EBITDA* 14.5** 15.6 7.6% Strong Financial Results. Un
Slide 20: Latin America – Underlying Results (WebMotors)
20 Latin America – Underlying Results WebMotors Financials (30% owned - Equity Accounted by CAR) For personal use only 12 Months to 30 12 Months to 30 Pro-Forma (100%) PCP June 2015 June 2016 BRLm BRLm % WebMotors continuing solid growth Underlying Revenue* 87.7 99.4 13.3% Pleasing double digit grow
Slide 21: Latin America – Underlying Results (SoloAutos)
21 Latin America – Underlying Results SoloAutos Financials (65% owned – Consolidated by CAR) 2 Oct 2014 to 30 2 Oct 2015 to 30 For personal use only Pro-Forma (100%) PCP June 2015 June 2016 MXPm MXPm % Reported Revenue N/A 5.9 N/A Reported EBITDA N/A (7.5) N/A SoloAutos Reported EBITDA (%) N/A N/A N
Slide 22: Outlook
22 For personal use only Outlook to 30 June 2016
Slide 23: Performance Outlook
23 Performance Outlook For personal use only carsales Domestic Outlook Domestic core business performance in the first month of FY17 has remained solid. Domestic adjacencies continue to build scale and breadth with a number of promising opportunities. We continue to monitor our performance and marke
Slide 24: New Product Releases
24 For personal use only New Product Releases to 30 June 2016
Slide 25: Redbook Inspections
25 Redbook Inspections For personal use only
Slide 26: Motoring.com.au Refresh
26 Motoring.com.au Refresh For personal use only
Slide 27: New Car Showroom
For personal use only New Car Showroom 27
Slide 28: Native Advertising
For personal use only Native Advertising 28
Slide 29: Appendix
29 For personal use only Appendix to 30 June 2016
Slide 30: Overview of carsales Non-IFRS Financial Information
30 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 31: Reconciliation of Reported to Adjusted NPAT
31 Reconciliation of Reported to Adjusted NPAT $A Millions Growth For personal use only Year Ending 30 June 2016 FY15 FY16 $'s % Reported NPAT 103.2 109.3 6.1 6% Gain on disposal of business - (1.0) Gain on associate dilution (3.5) (1.0) NPAT before one-off gains 99.7 107.3 7.6 8% Acquired intangibl
Slide 32: Look Through Revenue and EBITDA Performance
32 Look Through Revenue and EBITDA Performance For personal use only Look Through Revenue ($m) Look Through EBITDA ($m) Millions Millions CAGR 15.7% CAGR 14.1% NOTE: carsales “Look Through” methodology is: For equity accounted associates: Add the total revenue or EBITDA for the period of ownership w
Slide 33: carsales Look Through P&L Analysis
33 carsales “Look Through” P&L Analysis For personal use only * Investments in Tyresales (owned 50% from 1 July 2013), Auto Exchange (owned 50% from 1 July 2013), Stratton Finance (owned 50.1% from 15th July 2014), Auto Inspect (owned 50.1% from 26 June 2015), Ratesetter (owned 15% from 12 March 201
Slide 34: For personal use only
For personal use only