Annual Report FY24

Financial

OperationalSustainability

Growth and Company Evolution

Over the past few years, we have evolved into an increasingly global and diverse portfolio of businesses. Accordingly, it made sense to differentiate the listed entity from the Australian marketplace brand carsales.com.au. In October 2023, we changed our listed company name to CAR Group Ltd (CAR Group) to support this evolution. Whilst we operate in a diverse number of markets,

the Group is united by a shared vision - to create

#1 digital marketplaces for vehicles around the world.

We have achieved excellent financial results in FY24, demonstrating resilience in a more challenging macro environment. Our strong operational performance has enabled us to extend and solidify our market leadership positions

in each region. Our robust balance sheet and conservative leverage supports our ability to keep driving technology innovation and investing in growth to support improved customer outcomes and strong shareholder returns.

Industry Context and Macroeconomic Environment

Despite higher interest rates in Australia, we continued to see very good levels of used car trading activity and healthy gross margins for our dealer customers. Time to sell has normalised which has resulted in higher inventory levels on carsales.com.au. New and used car prices have moderated from their peaks but remain ~30% above pre-COVID levels. We have observed a similarly robust used car market in South Korea over the last 12 months with solid inventory levels on Encar and healthy demand.

Demand in our RV and powersports marketplaces in the US was more subdued, impacted by higher interest rates and weaker consumer sentiment. Nevertheless, the business performed well, underpinned by our strong value proposition and subscription-based business model as well as increased investment in marketing to drive performance. Demand in our US commercial industry segments of trucks and equipment were less impacted by elevated interest rates and also performed well.

Counter to the global trend, interest rates are declining in Brazil, driving increased credit appetite which has positively impacted webmotors in numerous ways. These include higher levels of buyer demand, improved dealer profitability and more finance transactions being originated through webmotors.

Financial Performance

The Group has delivered an excellent financial result with double-digit growth in all three key financial metrics of Proforma Revenue, Proforma Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) and Adjusted Net Profit After Tax (NPAT). We delivered double-digit revenue and earnings growth in all of our key geographies, and we have also reached a significant milestone of over $1 billion in Group revenue. This is a great outcome and shows the resilience of the Group and the strategic focus and effort of the team.

Proforma Revenue was up 17% on prior comparative period (pcp) to $1.1b. Proforma EBITDA was up 17% to $581m with a strong EBITDA margin of 53%. On a constant currency basis, Proforma Revenue growth was 15% and Proforma EBITDA growth was 16%. Adjusted NPAT of $344m was up 24%. Whilst we are making significant investments in future growth initiatives, we continue to do so with discipline, which is firmly embedded in our culture.

Reported Net Profit After Tax (NPAT) decreased 61% to $250m largely due to the one-off gain recognised in FY23 on moving to majority ownership of Trader Interactive and webmotors. Adjusted earnings per share (EPS) was up 17% to 91.3¢ reflecting strong earnings growth. The Board has declared a final FY24 dividend of 38.5¢ per share, bringing total dividends for FY24 to 73.0¢ per share, up 20% on pcp which is a good outcome for shareholders.

Strong Operational Execution

Across CAR Group, we have made significant progress in our objective to extend and solidify our market leading positions across our portfolio of vehicle marketplaces.

Our first year as majority owner of webmotors in Brazil has been outstanding and our partnership with Santander is stronger than ever. webmotors has seen significant market share gains due to the continued success of our national expansion strategy. Our revenue base is diversifying as we grow the proportion of private, media and finance revenues through investment in better technology and improved consumer experiences. We have also launched a new finance integration with Santander which supports

the strong momentum we have in the Brazilian business.

At Trader Interactive in North America, we delivered excellent results by investing in growing our audience and improving our technology. This has supported growth in dealer numbers and average revenue per account. Our priority ranking premium select product is driving a lot of value for dealers through increased prominence, which has resulted in higher customer penetration. We have also rebuilt the private seller ad creation process to remove friction points to improve conversion. Our media business is growing strongly, through the establishment of a new media team and better technology.

Our Australian business has had an exceptional year, solidifying our market leadership position and delivering double-digit revenue growth in each of our dealer, private and media segments. We have rebuilt our carsales retail website and app, which will make it easier for consumers to find the vehicle they are looking for and contact the seller. Our premium depth advertising product penetration has grown through an improved product mix, better go-to-market and a slower time to sell. We have expanded our market share in the private seller segment and increased yield through dynamic pricing and improved uptake of instant offer. Finally, our consistent and sustained investment in new media product and a more diverse customer set has driven another strong media revenue outcome in FY24, with more upside to come.

In Asia, Encar has delivered double-digit revenue and earnings growth through increased penetration of our Guarantee Inspection product. We have opened 8 new inspection sites over FY24 and improved the utilisation of existing sites. Encar Home, which is a fully digital retail home delivery service continues to scale well.

Our People

The success of the Group is driven by our team of

2,000+ dedicated, innovative and talented people.

Our global business is providing opportunities for our people to further develop their experience and skills. A great example of this is our Global Talent Exchange Program, which allows team members to work for a month in another country. This program benefits both businesses involved by building global connections, sharing insights, collaborating on new ideas, and exchanging intellectual property. We also held our second global hackathon this year, encouraging innovation and collaboration across our global marketplaces. These hackathons showcase our commitment to innovation and our focus on continually improving our customer experience.

Diversity and inclusion are very important to CAR Group across all our global businesses. We want people to feel valued, respected and to have equal access to opportunities. We continue to remain focused on retaining our culture and heritage as an innovative disruptor - maintaining this will ensure our continued success as a business.

Powering a Sustainable Future

Our sustainability approach reflects who we are and what we stand for, and we seek to operate a sustainable business that future generations will be proud of. We are focused on reducing the Group's impact on the environment and responding to risks associated with climate change. In FY24, we achieved carbon neutrality across our global business. This year we have continued to build on reporting against the recommendations of the recently retired Task Force on Climate-related Financial Disclosures (TCFD) via our Climate Disclosures Report. We invite you to read this in addition to our 2024 Sustainability Report, to gain a holistic understanding of our progress in this area.

From a risk management perspective, cybersecurity and protecting customer data are critical focus areas. We are investing heavily in our security team and infrastructure

to ensure the safety and integrity of the data entrusted to us. Educating and training our employees on responsible data use and cybersecurity is a key priority. Whilst no company can fully mitigate these risks, an effective risk and governance framework can help reduce the impact of any event.

Looking Forward to FY25

While we remain cautious about the broader macro environment over the next 12 months, we are well placed to continue to deliver growth. The diversity of our businesses, our strong market leading positions and the counter-cyclical nature of our products position us well to deliver excellent outcomes for our customers and shareholders in FY25.

Finally, we want to personally extend our sincere appreciation to our employees, whose dedication and hard work drive our success, and our customers for their partnership and trust. To our shareholders, thank you for your continued support and encouragement.

We look forward to continuing to work with you all in FY25.

1997

carsales domain name registered (Australia)

2016

Acquired controlling stake in chileautos (Chile), acquiring remaining stake in 2019

2023

Acquired further 40% of webmotors

10% Investments

11% Asia

17% Latin

America

72% Australia

6% Investments

41% Australia

FY24

REVENUE

$1,099m

F O C U S A R E A S

D R I V E R S

Our Customers

Building seamless digital experiences

Our People

Build a world-class

culture to attract and retain

the best talent

Future Horizons

Investing in new growth

opportunities

Sustainable Growth

Investing in emerging

technology, trust & safety, our industries and communities