Carsales com : Annual Report FY22

Annual Report 2022

CONTENTS

1	Our Operational Highlights	17	International Highlights	56	Other Directors' Report
2	Our Strategy	20	Our People. Our Culture.		Disclosures
60	Auditor's Independence
3	The Evolution of our Strategy	26	Directors' Report
	Declaration
4	Chair and CEO Letter	30	Corporate Governance	62	Financial Statements
8	What We Do	30	Sustainability Report	131	Directors' Declaration
8	Our Markets	32	Our Board	132	Independent Auditor's Report
9	Our Australian Business	34	Our People and Culture	138	Shareholder Information
13	Australian Highlights		Chair's Message	140	Corporate Directory
36	Remuneration Report
16	International Businesses

Founded in 1997, carsales.com Ltd (ASX: CAR) is the number one online automotive classifieds business in Australia with a growing global presence in Asia and the Americas. carsales.com Ltd also operates a number of market leading websites in non-automotive verticals including motorcycles, boats, caravans, trucks and heavy machinery.

We seek to empower our customers, making buying and selling vehicles as easy as possible for everyone - consumers, dealers and manufacturers alike. Headquartered in Melbourne, Australia carsales employs over 1700 people across the world and is a member of the S&P/ASX100.

carsales Annual Report 2022

OUR OPERATIONAL HIGHLIGHTS

(FY22 METRICS COMPARED TO FY21 UNLESS OTHERWISE STATED)

1.3 billion	46 thousand	2.1 million
Total sessions	Subscribed dealers	Vehicles online

Launched Select	Great place to work®	385 thousand
carsales' digital retail	Awarded for the fifth consecutive	Cars inspected by Encar
product in August 2021	year

6% increase	Nifty Fifty		Carbon Neutral
In employee engagement	Trader Interactive		In our Australian
per our Employee	Innovation award for		Operations
Opinion Survey	digital retail product

carsales Annual Report 2022

1

HIGHLIGHTS	OPERATIONAL	OUR
STRATEGY OUR
AND CHAIR LETTER CEO
MARKETS OUR	DO WE WHAT
BUSINESS	AUSTRALIAN OUR
HIGHLIGHTS	AUSTRALIAN
BUSINESS	INTERNATIONAL	OUR
HIGHLIGHTS	INTERNATIONAL
CULTURE OUR	.PEOPLE OUR
REPORT	DIRECTORS'
GOVERNANCE	CORPORATE
REPORT	SUSTAINABILITY
BOARD OUR
AND PEOPLE OUR CHAIR'S CULTURE MESSAGE
REPORT	REMUNERATION
DISCLOSURES	REPORT	DIRECTORS' OTHER
DECLARATION	INDEPENDENCE	AUDITOR'S

OUR STRATEGY

Our Purpose

Make Buying and Selling A Great Experience

Our Strategic Pillars

Digital		Value-added		Future
Marketplaces		Services		Horizons
Grow our leadership in		Build a compelling		Leverage consumer
digital marketplaces		ecosystem of services		insights and emerging
		that support our		industry trends
		customers through		to explore new
		the buying, selling and		opportunities
		ownership of vehicles

Our Drivers

Data

People

Technology

2 carsales Annual Report 2022

THE EVOLUTION OF OUR STRATEGY

1997	2005	2006	2009	2010
carsales domain	carsales acquires	carsales hits	carsales lists	carsales hits
name registered	PBL Media's	100,000	on the ASX	200,000
	websites	cars online		cars online

2015	2014		2013	2013
Launched digital	Acquired 49.9%	Launched	Acquired 30% stake
trade-in product	stake in Encar	ecommerce platform	in webmotors (Brazil)
Instant Offer	(Korea)	tyresales.com.au

2016		2016				2017		2020
Launched vehicle	Acquired controlling	Acquired remaining	Launched
inspection service	stake in chileautos	stake in Encar	mobility-as-a
RedBook Inspect	(Chile) and soloautos				service transport
		(Mexico)				aggregator Placie

2022

2021

2021

2021

Acquired 49% stake

Acquired remaining

Launched buy online

Acquired digital

in non-auto

stake in Trader

service Select

tyre wholesaler

marketplace group

Interactive*

tyreconnect

Trader Interactive (US)

* Transaction due to complete in late Q1/early Q2 of FY23

carsales Annual Report 2022

3

HIGHLIGHTS	OPERATIONAL	OUR
STRATEGY OUR
AND CHAIR LETTER CEO
MARKETS OUR	DO WE WHAT
BUSINESS	AUSTRALIAN OUR
HIGHLIGHTS	AUSTRALIAN
BUSINESS	INTERNATIONAL	OUR
HIGHLIGHTS	INTERNATIONAL
.PEOPLE OUR CULTURE OUR
.
REPORT	DIRECTORS'
GOVERNANCE	CORPORATE
REPORT	SUSTAINABILITY
BOARD OUR
AND PEOPLE OUR CHAIR'S CULTURE MESSAGE
REPORT	REMUNERATION
DISCLOSURES	REPORT	DIRECTORS' OTHER
DECLARATION	INDEPENDENCE	AUDITOR'S