Appendix 4D carsales.com Ltd

ABN 91 074 444 018

Results for Announcement to the Market

Half-year ended 31 December 2020

(Previous corresponding period: Half-year ended 31 December 2019)

A$'000

Revenue from continuing operations

198,908

Profit for the half-year after tax

61,300

Net profit for the period attributable to members

61,070

Adjusted net profit* for the period attributable to members

73,963

Franked

Amount per

amount per

Dividends/Distribution

security

security

2020 Interim Dividend paid

22.0 cents

22.0 cents

2020 Final Dividend paid

25.0 cents

25.0 cents

2021 Interim Dividend declared

25.0 cents

25.0 cents

2021 Interim Dividend dates

Record date for determining entitlements to the dividends

24th March 2021

Latest date for dividend reinvestment plan participation

25th March 2021

Dividend payable

21st April 2021

31 December 2020

30 June 2020

Net tangible assets backing per ordinary share**

(134.3 cents)

(138.1 cents)

Down Down Down Up

(6.78%) (10.81%) (8.35%) 16.63%

to to to to

*The presentation of adjusted net profit provides the best measure to assess the performance of the Group by excluding COVID-19 Dealer Support Packages, hedge reserve amortisation for closed out hedges, fair value gain arising from discontinuing the equity method (net of NCI), gain on disposal of subsidiary, M&A and restructure costs, changes in fair value of put option liabilities and deferred consideration, and non-cash acquired intangible amortisation from the reported IFRS measure. This is further detailed in Note 3(b) of the half-year report.

** Net tangible assets exclude all right-of-use assets leased by the Group.

Other information required by Listing Rule 4.2A

Other information requiring disclosure to comply with Listing Rule 4.2A is contained in the 31 December 2020 Financial Report.

carsales.com Ltd

Half-Year Report 2020

Half-Year Report 2020

Contents

Consolidated Financial Statements

Directors' Report 1

Auditor's Independence Declaration 3

Consolidated Statement of Comprehensive Income 4

Consolidated Statement of Financial Position 6

Consolidated Statement of Changes in Equity 7

Consolidated Statement of Cash Flows 9

Notes to the Consolidated Financial Statements

Basis of preparation 10

Corporate Information 10

Key performance measures

1. Segment information 11

2. Revenue from contracts with customers 14

3. Earnings per share 15

Financing and risk management

4. Borrowings 17

5. Financial assets and liabilities

and fair value measurement 18

Equity

6. Contributed equity 19

7. Dividends 19

Group structure

8. Interests in other entities 20

9. Discontinued operations 21

Items not recognised

10. Events occurring after the reporting period 21

Directors' Declaration 22

Independent auditor's review report

to the members of carsales.com Ltd 23

Corporate Directory 25

Lodged with the ASX under Listing Rule 4.2A. This information should be read in conjunction with the 30 June 2020 Annual Report.

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June 2020 and any public announcements made by carsales.com Ltd during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act 2001.

carsales.com Ltd

Half-Year Report 2020

ABN 91 074 444 018

Directors' Report

Your Directors present their report on the consolidated entity (referred to hereaſter as the Group) consisting of carsales.com Ltd and the entities it controlled at the end of, or during, the half-year ended 31 December 2020.

Directors

The following persons were Directors of carsales.com Ltd during the half-year ended 31 December 2020 and up to the date of this report:

Pat O'Sullivan (Non-Executive Chair)

Cameron McIntyre (Managing Director and Chief Executive Officer, CEO)

Wal Pisciotta OAM (Non-Executive Director) Kim Anderson (Non-Executive Director) Edwina Gilbert (Non-Executive Director) Kee Wong (Non-Executive Director)

David Wiadrowski (Non-Executive Director) Steve Kloss (Alternate Non-Executive Director)

Use of non-IFRS measures

The Directors believe the additional information on non International Financial Reporting Standards (IFRS) measures included in this report are relevant and useful in measuring the financial performance of the Group. In particular, the presentation of 'Adjusted Revenue', 'Adjusted EBITDA' and 'Adjusted NPAT'*.

Operational and Financial Review

The Group delivered an excellent result despite the challenges of COVID-19, highlighting the resilience and diversification of the Group's business model.

The Group reported total operating revenue from continuing operations of $198.9m down 7% on the prior corresponding period ("pcp") in FY20. Excluding $11m in rebates provided in support of our dealers, Adjusted Revenue, was only down 2% on pcp.

* Adjusted Items are further detailed in Note 3(b).

Earnings before interest, taxes, depreciation and amortisation ("EBITDA") was $113.8m up 9% on pcp, whilst Adjusted EBITDA (excluding one-off, non-cash and abnormal items) was up 18% on pcp. This earnings result reflects a resilient revenue performance enhanced by a continued focus on cost management. This translated to a similar level of growth in Adjusted net profit after tax ("NPAT") which was up 17% on pcp. Reported NPAT was down 14% reflecting the impact of $11m in dealer support measures and other non-cash gains in the prior year.

The key operational matters for the Group were: carsales Domestic

  • Dealer - Adjusted Revenue growth of 10%, reflecting healthy demand for cars, yield improvements and a strong contribution from our suite of inventory sourcing products. Reported revenue was impacted by $11m Dealer Support Package.

  • Private - Revenue was down 24% on pcp which was due to lower tyresales volumes stemming from a greater focus on profitability. Revenue excluding tyresales was in line with pcp which was a pleasing result given the first quarter was negatively impacted by social distancing measures. Instant Offer volumes recovered well showing very strong growth on pcp in Q2.

  • Media - Adjusted Revenue was down 19% on pcp, reflecting a challenging new car advertising market with new car sales down 14% in 2020.

  • Data, Research & Services - Adjusted Revenue was down 1% on pcp largely due to the exit of our low margin warranty product. Revenue was up 2% excluding this which reflects good demand for our core data product set, with solid growth in the RedBook business.

carsales International

  • Asia - Revenue growth of 18% reflects excellent performance from our Encar business in South Korea.

    The key growth drivers have been the Guarantee inspection service and Dealer Direct products.

  • Latin America - Revenue was down 25% on pcp which reflects the challenges associated with COVID-19 and a negative impact from FX rates. Our 30% stake in Webmotors (Brazil) is equity accounted and not included in EBITDA. Webmotors delivered a good result with constant currency revenue growth of 11% and EBITDA growth of 21%.

1

carsales.com Ltd

Half-Year Report 2020

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Carsales.com Limited published this content on 17 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 February 2021 21:15:08 UTC.