CAR GROUP LIMITED — AGM Information 2022

Oct 27, 2022

2022 AGM Presentation

28 October 2022

Performance Summary

Delivering Strong Shareholder Returns

carsales (CAR) Total Shareholder Return (TSR) v S&P ASX200 Total Return Index (AXNT)¹

FY22 Financial Highlights

• Strong revenue growth and good earnings growth with good progress on strategy execution¹
• Results demonstrate strength of offer and market positions as well as diversification of business across industry, geography, and customer segments
• Domestic revenue growth has accelerated headlined by outstanding Private revenue growth of 26% and strong Media revenue growth of 15%
• Strong international performance with the US, Korea and Brazil all delivering excellent double-digit revenue and EBITDA growth

FY22 Operating Highlights

Metrics reflect the value we create for our customers and our growing scale

[1] Stock published for websites in Australia, South Korea, United States, Brazil, Mexico, and Chile as at 30 Jun 22. [2] Number of active dealers in Australia, South Korea, United States, Brazil, Mexico and Chile as at 30 Jun 22. [3] Page views for websites in Australia, South Korea, United States, Brazil, Mexico and Chile for period 1 Jul 21 – 30 Jun 22. [4] Google Analytics, sessions for websites in Australia, South Korea, United States, Brazil, Mexico and Chile for period 1 Jul 21 – 30 Jun 22. [5] South Korea - carsales internal data, cars inspected for period 1 Jul 21 – 30 Jun 22. [6] Study conducted by independent research agency, Nature Pty Ltd, "market brand health tracker June 2022". If you had to choose one tomorrow, which one would you most prefer for buying or selling a new / used car? carsales.com.au vs. competitors. [7] Google Analytics, unique audience for websites in Australia, South Korea, United States, Brazil, Mexico and Chile for period Jun 22. [8] Dealer leads from websites in Australia, South Korea, United States, Brazil, Mexico, and Chile for period 1 Jul 21 – 30 Jun 22. [9] Median time to sell Jun 22 v Jun 19 for Australian private and dealer inventory.

An Internationally Diversified Business

We are expanding into new geographies to access large and fast-growing addressable markets

[1] carsales "look-through" methodology: For equity accounted associates and consolidated subsidiaries, add the total adjusted revenue or adjusted EBITDA for the period of ownership within the reporting period multiplied by the ownership % relevant to the specific reporting period. Some "look-through" numbers involve the disclosure of non IFRS information - Refer to carsales' Disclosure of Non IFRS information on slide 38 of the FY22 results presentation for further details. Amounts disclosed are in constant currency to normalise FX fluctuations across international subsidiaries & associates. [2] Look-through contribution for the period 1 Jul 21 – 30 Jun 22 on a 100% ownership of Trader Interactive (TI) basis vs. 1 Jul 21 – 31 Dec 21 on a 49% ownership of TI. Excludes carsales Investments segment.

Positioned To Drive Long-Term Growth and Shareholder Value

carsales operates in large addressable markets, that have been accelerated by COVID-related digitisation

Total Addressable Market calculation methodology: Dealer advertising: 2m B2C transactions multiplied by estimated average marketing spend/car of \$250. Includes estimated non-auto advertising spend of \$200mil. Private Seller: 1.75m transaction multiplied by \$100 average marketing spend/car (carsales average yield). Media Advertising: Standard Media Index (SMI), spend on automotive advertising 2019. US non-auto: global consulting firm estimate. Korea Auto: 5.5m transactions multiplied by \$100 average marketing spend/car. LatAm Automotive: 20m transactions multiplied by estimated marketing spend of \$25 per car. Tyres: IBISWorld Tyre Retailing in Australia Market Research Report and carsales management estimates. Data & Services: carsales management estimates. Please refer to slides 43-44 of the FY22 results presentation for all TAM calculations.

Strong Strategy Execution in FY22

We continue to deliver on our strategic priorities, enabled by digital transformation

Opportunity	TAM1	Strategic Priority	FY22 Achievements
Digital Retailing	\$81 - \$135m	carsales Select	✓ Reached 2,500 cars online ✓ Integrated trade-in to the product flow
Digital Trade-in	\$225m	Instant Offer	✓ Launched improved pricing engine ✓ Reached 3,000 transactions in June
Private Ad Yield	\$175m	Dynamic pricing	✓ Launched micro-bracket tiering ✓ Increase private ad yield by 19% to \$131
Media & Membership	\$800m	Diversify revenue sources	✓ Increased non-auto contribution to 25% ✓ Increased Native and programmatic contribution to 30%
Dealer Finance	\$50m	Increase volume	✓ Reached 15,000 dealer cars with finance offer ✓ Increased revenue by 6x

Australia International and ESG

Opportunity	TAM	Strategic Priority	FY22 Achievements
South Korea: Guarantee Ads	\$53 - \$75m	Increase volume	✓ Launched 4 new branches ✓ Increased penetration to 40%
South Korea: Digital Trade in	\$240m	Dealer Direct	✓ Increased dealer participation by 32% vs. pcp ✓ Grew transaction volume 56% vs. pcp
US: Dealer Volume	30k dealers	Increase volume	✓ Grew subscribed dealer count in June by 6% vs. pcp
US: Dealer Yield	2-3x take rate	Increase yield	✓ Increased yield by 7%
Carbon Neutrality	n/a	Achieve carbon neutrality in Australian business operations	✓ Australian business operations were certified carbon neutral by Climate Active in FY22
Employee Engagement	n/a	Increase engagement score	✓ Increased employee engagement score by 6%

Leading to Excellent Results

We have delivered good financial performance with double-digit revenue and EBITDA growth

And a Positive Outlook Leading Into FY23

We have good momentum heading into FY23 with a strong track record of delivering growth through a highly resilient and diversified business model

Outlook statement¹

Pro-forma Basis²

We expect to deliver good growth in Adjusted Revenue and Adjusted EBITDA in FY23 on a Pro-forma Basis

Actual Basis³

We expect to deliver very strong growth in Adjusted Revenue, Adjusted EBITDA and Adjusted NPAT in FY23

Margin

We expect to see expansion in the carsales Group Adjusted EBITDA margin on both a pro-forma and actual basis in FY23

carsales Australia Observations

Dealer

• Underlying automotive market conditions are buoyant. We expect to deliver solid growth in dealer revenue in FY23 supported by increased penetration of premium products including depth and dealer finance along with yield increases

Private

• Anticipate good revenue growth supported by continued strength in private ad volume, private ad yield and Instant Offer

Media and new car market

• Expect good revenue growth supported by continued expansion of our native ad products, programmatic capability and non-automotive diversification

carsales investments

• Expecting strong growth in revenue and a marginal improvement in EBITDA

carsales International Observations

Korea

• We expect strong growth in revenue and good growth in EBITDA in FY23

Brazil

• We expect strong growth in revenue and EBITDA in FY23

United States

• We expect good growth in revenue and strong growth in Adjusted EBITDA in FY23
• Continued positive momentum in inventory and customer volumes since the acquisition announcement in June

Group Financial Review

Strong Track Record of Growth

Well positioned to continue delivering long-term shareholder value through world-class capability, exposure to international growth markets and investment in new products and services

Adjusted¹ Net Profit After Tax Summary

Year Ending		\$A Millions		Growth	PF Growth2
30 June 2022	FY21	FY22	\$'s	%	%
Adjusted Revenue1	437.8	509.5	71.8	16%	11%
Cost of goods sold	21.3	50.0	(28.8)	(135%)	(18%)
Gross Margin	416.5	459.5	43.0	10%	11%
Operating expense	162.3	187.8	(25.5)	(16%)	(11%)
Adjusted EBITDA1	254.2	271.7	17.5	7%	10%
Adjusted EBITDA ex Govt. Wage Subsidy	247.2	271.7	24.5	10%	13%
Depreciation & amortisation	31.9	38.6	(6.7)	(21%)
Net finance cost	13.9	13.6	0.3	2%
Income tax expense	59.4	64.1	(4.7)	(8%)
Trader Interactive	-	34.6	34.6	-
Webmotors	4.4	5.5	1.0	23%
Other Associates	(0.1)	(0.0)	0.1	(88%)
Profits from associates	4.3	40.0	35.7	826%
Non-controlling interests (NCI)	(0.5)	(0.6)	(0.1)	(26%)
Adjusted NPAT1	152.8	194.8	42.0	27%
Adjusted Earnings per share (cents)	61.5	69.0	7.5	12%
Final Dividend per share (cents)	22.5	24.5	2.0	9%
Summary of Reported Results
Reported Revenue	427.2	509.1	81.9	19%
Reported EBITDA	241.5	269.9	28.4	12%
Reported NPAT	130.7	160.8	30.1	23%
Reported Earnings per share (cents)	52.6	56.9	4.3	8%

Commentary

• Cost of goods sold and operating expenses increase due to the acquisition of tyreconnect in July-21 1
• D&A increased by \$6.7m due to increased depreciation of building fit outs and software assets. The software investment continues to support future growth initiatives 2
• Significant increase in profits from associates due to inclusion of Trader Interactive from September 2021. A reconciliation of Trader Interactive's results is provided in the appendix of the FY22 results presentation. Growth in webmotors' contribution reflects strong revenue and earnings performance in FY22 3
• Adjusted NPAT growth is stronger than Adjusted EPS growth due to the issue of 35.3m new shares in connection with the capital raise associated with the Trader Interactive acquisition 4

• Final dividend of 24.5 cents per share declared, up 9% on pcp representing an 81% dividend payout ratio 5

[1] Adjusted NPAT is post non-controlling interests and excludes certain non-recurring or non-cash items. See slide 38 regarding the disclosure of non-IFRS Information and slides 41-42 of the FY22 results presentation for a reconciliation of Reported to Adjusted Financials. [2] "PF Growth" or "Pro-forma growth" assumes 100% ownership of Trader Interactive in FY21 and FY22, and tyreconnect in FY21. 13

Strong Cash Flow and Robust Balance Sheet

[1] Operating cash flow less tax. [2] FY21 has been restated to remove payments for lease deposits included in financing activities. [3] Net debt / Adjusted EBITDA. Adjusted EBITDA stated above excludes certain non-recurring items. See slide 38 of the FY22 results presentation regarding the disclosure of non-IFRS Information and slides 41-42 of the FY22 results presentation for a reconciliation of Reported to Adjusted Financials. Ratios are based on reported financial outcomes and may vary with bank covenant definitions. [4] Net debt includes total borrowings less total cash (including term deposits) as at 30 Jun 2022 as per published balance sheet, excluding lease liabilities. Jun 21 figure excludes the cash receipt from capital raise to acquire Trader Interactive and debt paydown.

carsales Australia

Australia Revenue – Dealer & Media

Dealer Adjusted Revenue¹ up 6% to \$183.8m Media Adjusted Revenue¹ up 15% to \$54.5m

• Solid dealer performance supported by a buoyant automotive market in H2 FY22 with strong demand for new and used cars. Delivered good revenue growth of 10% in H2 through volume recovery and continued yield expansion
• Underlying key performance metrics are excellent, with audience, time to sell and lead to sale conversion rates strong. Dealer customers are continuing to generate strong gross margins
• Finance the key driver of other growth with depth still constrained by low stock levels and a fast time to sell

• Third consecutive half-year of double-digit revenue growth with media revenue up 19% in H2, despite continued new car supply constraints
• Strategy of diversifying into non-automotive segments and the development of innovative new products is paying dividends
• Our programmatic offering is also becoming a meaningful contributor to revenue, achieving substantial growth in FY22

Australia Revenue – Private & DR&S

Private Revenue up 26% to \$69.4m

• Outstanding revenue growth of 26% on pcp (H2 up 17% vs. pcp) supported by good trading conditions, strong used car prices and a leading private seller value proposition and experience
• Excellent growth in private seller revenue driven by strong volumes and a highly effective dynamic pricing strategy that increased yield by 19% on pcp
• Strong growth in Instant Offer particularly in H2 FY22. Growth underpinned by a new pricing engine, continued expansion of participating dealers, customer experience improvements and growing awareness of the product

DR&S Adjusted Revenue¹ up 3% to \$44.1m

• Resilient result given the impact of lock downs and continued inventory challenges for dealers, which puts pressure on the ability to increase the penetration of our key dealer services products
• RedBook continues to be the Australian market leader in vehicle specification services, reflected in continuing revenue growth on pcp

Australia Revenue – carsales Investments

carsales Investments Revenue up 109% to \$56.5m Performance commentary

• Revenue growth primarily driven by the inclusion of tyreconnect, an acquisition which was completed early in Q1 FY22. Underlying growth of 8% excluding the impact of acquisitions
• Whilst lockdowns impacted tyre volumes in the consumer side of the business in H1, there have been steady improvements since in volumes in H2

• RedBook Inspect achieved solid revenue growth despite the impact of lock downs in H1, reflecting the strong value proposition of our array of inspection products

• Good growth in volumes in FY22. From a profitability perspective, there were strong uplifts in rebates and purchasing efficiencies. However, these were offset by increases in freight and fitment costs

• Several initiatives have been implemented to improve profitability next year
• In H2 FY22 Redbook Inspect was accredited by the Department of Infrastructure and Transport to deliver Passenger Transport Inspections in South Australia. This will support growth in FY23 and beyond
• Good growth in revenue and EBITDA in FY22 despite impact of lock downs
• Added major global rideshare players Ola in H1 FY22 and Didi in H1 FY23
• Increased investment to drive Ola and Didi integrations and to drive consumer awareness

carsales International

Americas – Trader Interactive

Excellent revenue and EBITDA growth, recovering inventory volumes driving momentum

		\$A Millions			Growth	Constant
	Pro-forma	100%	FY21	FY22	\$'s	%	3 Currency
	Revenue		171.7	195.5	23.8	14%	11%
	Adjusted	EBITDA2	93.3	111.2	17.9	19%	16%
m D U A			10%	+14% 2%		2%

Financial summary Performance commentary ¹

• Excellent financial performance in FY22, with revenue and EBITDA growth of 11% and 16% respectively in constant currency
• Strong margin performance with EBITDA margins expanding from 54.3% to 56.8% due to the inherent operating leverage of the business and strong cost discipline
• Achieved revenue growth across all four verticals, supported by Trader Interactive continuing to provide excellent value for dealers
• RV and Powersports grew strongly in H2 FY22 driven by increase in dealer penetration, yield and inventory levels. Private seller advertising volumes and yield also a key growth driver
• Commercial verticals of Truck and Equipment delivered modest growth as inventory supply continues to be challenged. Expect improved performance as inventory levels increase. Positive momentum in inventory and customer volumes in Trucks since the acquisition announcement in June

Post Completion Update

Excellent Q1 financial performance with further FY23 upside expected from multiple growth initiatives

Post Completion Update

[1] Historical dealer subscriptions have been re-stated to reflect the splitting of corporate accounts into single dealership accounts and the recognition of single dealerships advertising on multiple Trader Interactive websites

Asia – Encar

Strong growth from Encar, underpinned by continued momentum of key products

Financial summary

	\$A Millions		Growth		Constant
	FY21	FY22	\$'s	%	2 Currency
Revenue	80.1	90.9	10.8	14%	17%
EBITDA1 Adjusted	40.7	45.7	5.0	12%	16%

Performance commentary

Strong financial performance across revenue and EBITDA which has been driven by strong growth from three key products:

Dealer Direct

• 76% revenue increase on pcp driven by continued growth in transaction volumes reflecting both a growing online trade-in market and an increasing market share. Improvements in the quality and experience of the platform, expanding the number of participating dealers and increasing consumer awareness have been the key drivers. In FY22, A\$7.1m in marketing was invested to increase consumer awareness, market penetration and drive future growth of the Dealer Direct product. This was A\$3.4m more than the \$3.7m invested in FY21

Guarantee

• Excellent performance with strong revenue growth of 30% over pcp. Driven by the continued expansion of the branch network (+4 sites in FY22) and increases in the number of inspections performed at existing sites. Guarantee inspections now represent 40% of total inventory up from 32% in FY21

Encar Home

• 65% growth in revenue driven by substantial improvements to the consumer application process and dealer management. 19,000 cars now available for Home Delivery

Americas – webmotors

Very strong revenue and EBITDA growth driven by strong volumes and yield expansion

	\$A Millions			Growth	Constant
Pro-forma 100%	FY21	FY22	\$'s	%	1 Currency
Revenue	62.8	84.1	21.3	34%	26%
EBITDA	27.7	35.8	8.1	29%	23%

Financial summary Performance commentary

• Excellent financial performance with 26% growth in revenue and 23% growth in EBITDA in constant currency
• Revenue growth was underpinned by continued dealer subscription growth, improving inventory levels and increasing dealer yield

Regional Expansion

• The regional expansion plan recommenced, with dealer subscription volumes growing 4% versus pcp with over 700 dealers added to the platform

Inventory Supply

• Inventory levels increased by 39% compared to pcp and improved to 90% of pre-pandemic levels, supporting strong growth in lead volumes

Dealer Yield

• Dealer yield was up significantly due to an increase in the price of leads, growth in the proportion of chargeable leads and increase in premium dealer products, particularly CRM +smart

Americas – chileautos and soloautos

Difficult trading conditions in Chile and Mexico partly mitigated by strong cost management

	\$A Millions		Growth		Constant
	FY21	FY22	\$'s	%	Currency
Revenue	4.7	4.8	0.1	3%	10%
EBITDA	2.0	2.2	0.2	8%	12%

• Solid revenue growth of 10% reflecting the strong value proposition for dealers and significantly improved inventory levels compared to pcp. Dealer inventory is still lower than pre-pandemic levels, so there should be good upside as supply constraints continue to be alleviated over the next 12 months
• Continued prudent cost management resulted in good double digit EBITDA growth, reflecting the strong operating leverage inherent in the business

		\$A	Millions	Growth		Constant
1		FY21	FY22	\$'s	%	1 Currency
	Revenue	1.7	1.1	(0.6)	(34%)	(40%)
	EBITDA	(2.0)	(3.0)	(1.0)	(52%)	(45%)

• Automotive market conditions in Mexico continue to be challenging with new car sales still ~30% below pre-pandemic levels
• This has impacted activity on site with leads down 21% on pcp. Continue to manage costs to minimise EBITDA downside

Published Inventory (000) Published Inventory (000)

** In H1 FY22 we discontinued our Argentinian operation demotores. [1] Constant currency growth normalises for foreign currency fluctuations across international subsidiaries & associates.

Strategy Update

Australia and International Priorities

Select is Ramping Up

We have made excellent progress in digital retailing in only twelve months since launching

increase conversion rate

and value of deal

• ✓ 7-day money back guarantee
• ✓ 3-month limited warranty

• Finance application details to be sent to dealer with

reservation

Instant Offer Momentum is Growing

carsales' Instant Offer service enables consumers to sell their car quickly and easily at a competitive price

Increase volume: Improve brand awareness through above the line advertising. In Q3 we launched our first advertising campaign which had an immediate impact on volumes, with 40% growth quarter on quarter

Improve pricing model: We upgraded the pricing engine in H2 which has resulted in more accurate pricing and higher conversion rates. The new engine also increases the breadth of vehicles able to receive an Instant Offer

Dealer Experience: Manage the Net Promoter Score (NPS) of dealers to ensure consumers are satisfied at the dealership. We have increased our NPS and expanded the dealer network by 29% vs. pcp

Key sales funnel steps Growth drivers Quarterly transaction volume