Carmax Inc · NYSE:KMX
Carmax — Oppenheimer New York Investor Meetings 2014
19 slides from Carmax's conference presentation, Apr 29, 2014
Slide 1: Oppenheimer New York Investor Meetings
Tom Folliard President and Chief Executive Officer Oppenheimer New York Investor Meetings April 29-30, 2014 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements, which are subject to risks and uncertainties. Additional discussion of factors that could cause actual results to differ materially from management’s projections and estimates is contained in the CarMax, Inc. SEC filin
Slide 3: Key Points
Key Points Competitive advantages Compelling growth opportunity Strong financial performance Focused competitive initiatives 3
Slide 4: Competitive Advantages
Competitive Advantages Unique consumer offer Competitively low, no-haggle prices Huge selection Guaranteed quality Customer-friendly sales process 4
Slide 5: Competitive Advantages
Competitive Advantages Well-tested proprietary processes/systems Proven adaptable to changing market conditions Well-trained, engaged associates Award winning culture Fortune’s “100 Best Companies to Work For” (10 yrs) Training Magazine’s Top 125 5
Slide 6: Current CarMax Locations
Current CarMax Locations CarMax at 4/4/14: 133 superstores 66 markets 6
Slide 7: Compelling Growth Opportunity
Compelling Growth Opportunity Today: Stores reach only ≈ 57% of population In current CarMax markets: Average 5% market share in age 0-10 vehicles First or second purchase cycle in most markets Expansion and share gains will drive future growth 7
Slide 8: Compelling Growth Opportunity: Used Car Superstores at FYE
Compelling Growth Opportunity 10 to 15 store 200 openings 175 174 # of Used Car Superstores at FYE 159 164 150 154 144 125 131 118 100 108 100 100 103 89 75 77 50 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 8
Slide 9: Financial Summary
Financial Summary Total revenues EPS (diluted) $15.0 $2.50 Total Revenues (in billions) $12.6 $12.0 $11.0 $2.00 $10.0 EPS $9.0 $9.0 $7.5 $1.50 $6.0 $3.0 $1.00 FY10 FY11 FY12 FY13 FY14 9
Slide 10: Diversified Profit Base (FY14)
Diversified Profit Base (FY14) Percentages represent breakdown of gross profit dollars, including CAF income 10
Slide 11: Retail Used Vehicles
Retail Used Vehicles Used unit sales Used GP$/unit 600 $2,600 527 Unit sales (in thousands) 500 448 $2,400 GP $ per Unit 396 408 400 357 $2,200 300 $2,000 200 100 $1,800 FY10 FY11 FY12 FY13 FY14 11
Slide 12: Wholesale Vehicles
Wholesale Vehicles Wholesale unit sales Wholesale GP$/unit 400 $1,100 343 Unit sales (in thousands) 350 325 317 300 263 $1,000 GP $ per Unit 250 197 200 $900 150 100 $800 50 0 $700 FY10 FY11 FY12 FY13 FY14 12
Slide 13: CarMax Auto Finance
CarMax Auto Finance CAF income Managed receivables $350 $336 $7.5 CAF Income (in millions) Avg Rec'bles (in billions) $299 $7.0 $300 $262 $6.5 $250 $220 $6.0 $200 $175 $5.5 $150 $5.0 $4.5 $100 $4.0 $50 $3.5 $0 $3.0 FY10 FY11 FY12 FY13 FY14 13
Slide 14: Gross Profit vs. SG&A (per unit)
Gross Profit vs. SG&A (per unit) $3,500 $3,316 $3,218 $3,214 $3,083 $3,011 $3,000 Gross Profit per unit* SG&A per Retail Unit $2,500 $2,263 $2,263 $2,173 $2,161 $2,171 $2,000 FY10 FY11 FY12 FY13 FY14 *Does not include CAF income 14
Slide 15: Areas of Focus
Areas of Focus In-store experience On-line experience Optimize operations 15
Slide 16: On-Line Experience
On-Line Experience Mobile app 16
Slide 17: On-Line Experience
On-Line Experience carmax.com Improved search capability, more personalization, vehicle listings redesign, high definition photos with zoom Web visits FY14: Average monthly visits grew 32% YOY to an average of 12 mil/mo At quarter end: Average monthly visits to mobile site represented
Slide 18: Optimize Operations
Optimize Operations Grow stores efficiently Enhance execution Culture of continuous improvement 18
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