CAR GROUP LIMITED — AGM Information 2024

Oct 24, 2024

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ASX RELEASE 25 October 2024

2024 ANNUAL GENERAL MEETING CHAIR’S OPENING ADDRESS AND MANAGING DIRECTOR’S ADDRESS TO SHAREHOLDERS

Chair’s opening address

Welcome to the 2024 Annual General Meeting of CAR Group Limited. My name is Pat O’Sullivan and I am the Chair of the Company and Chair of this meeting.

On behalf of the Board and Company, I would like to acknowledge the Traditional Owners of the land on which we meet today. Here in Melbourne, that is the Wurundjeri people of the Kulin Nation. We pay our respects to their Elders, past, present, and emerging.

Today’s meeting is a hybrid meeting, being held physically here in the CAR Group offices in Richmond, Victoria and online via the Computershare Meeting platform, which allows shareholders, proxies and guests to attend the meeting virtually, ask questions and vote.

On behalf of the Board, I warmly welcome all attendees, those here with us in person and those joining us over the live webcast, we are pleased to be able to extend this meeting to you all.

The formal business of this morning’s meeting will be conducted in two parts:

• First, our CEO, Cameron McIntyre, will present to the meeting and there will be an opportunity to ask Cameron questions about his presentation.

• We will then move to the formal business of the meeting where we have a number of resolutions to put to shareholders. There will be further opportunities during this part of the meeting for shareholders to raise questions pertaining to each resolution.

Before I invite Cameron to address the meeting, I would like to acknowledge the outstanding year the company has experienced.

We made significant progress in our strategic, operational and financial objectives, as well as our evolution into a more global and diverse portfolio of businesses. In our first full year of majority ownership of Webmotors in Brazil, it was very pleasing to see outstanding performance with significant market share gains and a diversified revenue base.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Our other major recent acquisition, Trader Interactive in the US, also delivered excellent results, with improved technology, increased audience and new products delivering more value for dealers. Our Korean business, Encar, continued its double-digit revenue and earnings growth, focusing on increased premium product penetration, including its fully digital retail home delivery service. Chileautos also contributed excellent revenue growth, following the implementation of the lead model in Chile, which has been such a success in Australia and Brazil.

Our international expansion is not at the expense of our Australian business, which had an exceptional year. The business delivered double-digit revenue growth in each of our dealer, private and media segments and solidified its market leadership position.

We reached a significant milestone in FY24 by earning over $1 billion in Group revenue, and our financial results delivered double digit growth in all three key financial metrics of proforma revenue, proforma EBITDA and adjusted NPAT.

We continue to focus on building a sustainable company that future generations will be proud of, and I encourage you to review our 2024 Sustainability Report. It is no surprise that cybersecurity and protecting customer data remain critical focus areas for CAR Group and we continue to invest in those areas as well as our broader risk management framework.

But at the heart of CAR Group’s success is our people. I am personally very proud of our history of nurturing and developing talent within our company. This practice is evident from the number of our global leaders who have been with the company for over a decade, who were given the opportunity to grow with the company and have delivered outstanding results. No one is a better example of this than Cameron.

The Board and I feel that it is important to continue to develop Cameron, so he can continue to lead CAR Group to further success. Many of you would have seen the recent announcement that Cameron has been appointed as a non-executive director to the board of Brambles Ltd.

The CAR Group Board is very supportive of this appointment and it is a conversation we have been having for some time. This is an excellent opportunity for Cameron to be exposed to another successful, multi-national company and bring insights back into his role as CEO & MD of CAR Group. Brambles operates a successful global group, and Cameron and his leadership team are doing the same at CAR Group. Cameron will be able to see another global model from the inside, which will only help him make decisions for CAR Group over time.

There is no conflict between the companies, which operate in entirely different industries. Most importantly, Cameron remains wholly committed to his role at CAR Group, and this Board and

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Cameron are both confident that he will maintain his focus on CAR Group while expanding his experience and knowledge through this opportunity.

On behalf of myself and my fellow directors, I thank you for your support of CAR Group and assure you that we remain committed to continue to deliver long-term value for our shareholders.

Managing Director’s address to shareholders

Good morning everyone and welcome to the CAR Group 2024 Annual General Meeting.

Once again it has been another hugely eventful and transformational year for the company. We’ve continued to evolve nicely across many different fronts – from bedding down the acquisition of a controlling stake in Brazilian business webmotors, evolving our business in the United States in Trader Interactive and developing new products both here in Australia and across our global markets. Through all this the company has performed exceptionally well, and I look forward to taking you through our FY24 performance in just a moment.

But before I do, in keeping with tradition I’d like to play a short video for you that reflects the year we’ve had across the business.

Turning to the presentation:

Slide 4 – Delivering Strong Shareholder Returns

• As the Managing Director and a shareholder this is the place I like to start the presentation and it’s certainly one of my favourite slides as it reflects how hard we’ve continued to work in delivering strong total shareholder returns over a long period of time.

• The gap between the performance of the company (being the dark blue line) and the broader market has once again continued to widen over the last 12 months which is very pleasing to see and clearly anyone that has invested in the company since our IPO in September 2009 has outperformed the S&P ASX200 by around 4.5 times.

Slide 5 – Financial Performance

• Starting with a summary of our financial performance and it has been another great year for the Group, with excellent progress from a financial, operational and strategic perspective. This year’s result builds on the consistent growth we’ve delivered over many years, and it reflects the strength of our global marketplaces in engaging consumers and the value we’re delivering for them.

• Our more recent acquisitions in Brazil and the US are performing well, and we’re confident these businesses will continue to drive significant long-term value for shareholders.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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• The pro forma results on this page are the best reflection of the underlying performance of the company as they rebase FY23 to fully include Trader Interactive and webmotors. In constant currency, the group delivered 15% growth in revenue and 16% growth in EBITDA, which was an excellent outcome. We delivered a strong margin performance of 53% which was slightly up on last year. Adjusted NPAT was up 24% which was also a strong result.

• We reached a significant milestone of $1.1 billion in revenue and we’ve delivered double digit revenue and EBITDA growth across each of our Australian, North American, LATAM and Asian operations once again.

Slide 6 – Operational Highlights

• We’ve also had an excellent year with our operational performance especially given the ongoing high interest rate environment and weaker consumer sentiment, particularly in Australia and the United States, which demonstrates the strength of our market positions and the resilience of our business model.

Slide 7 - Our Global Portfolio of Retail Brands

• Looking at our portfolio, this demonstrates the breadth of the retail brands we operate across multiple jurisdictions combined with the large $15b total addressable market we operate across, shown at the bottom of the page.

• These large markets have attractive attributes, and our current penetration is still under 10%, which provides us with a significant long term growth opportunity in each market.

Slide 8 - Recap on First Year of Majority Ownership

• Looking at first year of majority ownership of webmotors, we’ve made strong progress across the business which has resulted in excellent financial outcomes that you’ll see more of in a moment, but some highlights are on this page.

• We’ve extended our leadership position through our national expansion strategy.

• In finance, we’re seeing strong momentum with our new finance integration with Santander delivering a 35% uplift in auto finance contracts written in the second half. This has been supported by an improving macro and credit environment in Brazil.

• Finally, we’ve got great momentum across the webmotors business heading into FY25.

Slide 9 - Compelling Growth Through Different Economic Cycles

• This slide captures the revenue and EBITDA performances of all the businesses we now own on a pro forma basis since 2007. You can see the Group has consistently delivered growth through multiple economic cycles.

• Despite interest rates remaining relatively high we’re seeing good growth in both our operational and financial performance metrics, which gives us confidence in our long-term growth potential and positive outlook for FY25.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Slide 10 – FY25 Outlook

• Turning to our outlook statement, and nearly 4 months into the new financial year we’re very pleased with how the company continues to perform, which gives us confidence in the reiteration of the outlook statement provided in mid August which was:

• On a constant currency basis we expect to deliver good growth in revenue and EBITDA once again in FY25.

• In terms of margins, with some reinvestment into the business and the significant growth we expect from businesses that have a lower margin, we expect to see a similar group EBITDA margin in FY25.

Slide 12 – Track Record of Growth

• The Group has delivered another great result in FY24 driven by strong operational execution.

• On this slide you can see the consistent growth we’ve delivered across four of our key financial metrics, which reflects our sustained investment in improving consumer experience and growing our audience.

• We’re confident in our ability to continue delivering great outcomes, given the significant size of the markets we operate in and the multiple growth levers we’ve got across each of our businesses.

Slide 13 – P&L Summary

• This is a summary of our P&L and the large percentage increases in revenue, operating expenses, EBITDA and D&A reflects the full year impact of consolidating Trader Interactive and webmotors. I’ll talk to the pro forma revenue and EBITDA performance on the next slide, which normalises for those acquisitions.

• If you normalise for recent acquisitions, depreciation and amortisation grew in line with revenue and EBITDA, reflecting our continued investment in software development.

• The increase in finance costs reflects the impact of increases in base interest rates over recent times.

• The Group’s effective tax rate in FY24 was similar to last year at c.19%. This reflects the corporate tax rates in each market except in the US where we pay minimal tax. This is due to utilising tax deductions for the amortisation of purchase price intangible assets and prior period tax losses which were inherited through acquisition.

• Adjusted net profit of $344m was up 24%, which benefited from the full year consolidation of the webmotors and Trader Interactive acquisitions.

• Adjusted EPS growth is a better representation of the underlying performance of the business as it includes the increase in shares on issue from capital raises. On this basis we delivered impressive growth of 17%.

• This growth combined with strong free cash flow generation supported the board’s decision to declare a final dividend of 38.5 cents per share, up 18% from last year, which shareholders received last week.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Slide 14 – Segment Performance

• Looking at a summary of our segment performance which shows the business on a pro forma basis, which consolidates Trader Interactive and webmotors in both current and comparative periods for the full 12 months.

• It’s great to be delivering double digit revenue and EBITDA growth across all our key regions. The results we’ve delivered really showcase the resilience of our diversified business model in a higher interest rate environment.

Slide 15 – Strong Cash Flow and Robust Balance Sheet

• As you can see here the business has very good conversion of earnings to cash due to a strong working capital profile which has continued again this year.

• The balance sheets is also in a good position, and it’s nice to see leverage reduce to 1.7 x EBITDA .

• And finally, on the right hand side you can see capex as a percentage of revenue has remained consistent over the last 12 months.

Slide 17 – Australia

• Looking at the performance of our operating segments more closely, starting with Australia. It has been another great year for our Australian business with revenue and EBITDA growth of 13% supported by the continued strength of our marketplace and audience metrics. We delivered double digit revenue growth across all our Australian segments

Dealer

• Dealer growth of 12% was driven by good demand for used cars, yield and increased penetration of depth products. It was pleasing to see depth penetration continue to increase as inventory levels and time to sell both increased.

Private

• We continue to deliver good outcomes for our private sellers and have increased our market share as a result over the last 12 months. We’ve also continued to grow our overall private yield through further optimising dynamic pricing and continuing to scale instant offer. This resulted in good revenue growth of 10%.

Media

• Strong media revenue growth of 20% is indicative of a healthy new car market with strong production and new model launches. This has been supported by the significant investment we’ve made in our media business to deliver more innovative and personalised advertising solutions.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Data Research & Services

• Data, Research and Services revenue up 10% on pcp, which was a good performance with the growth coming from our Redbook data business.

Slide 18 – North America

• It has been an excellent year for the Trader Interactive business in North America with double digit revenue and earnings growth, which is a great outcome given more challenging macro conditions, particularly in the recreational verticals.

• Growth continues to come from multiple sources. This includes higher customer numbers over the past 12 months. RVTrader customer numbers were stable, which is a great outcome given RV demand has been subdued.

• Other key growth drivers include a significant uplift in premium select transactions, yield increases, dynamic pricing and growth in media revenue.

Slide 19 – Latin America

• Our Latin American segment includes the performance of webmotors and Chileautos. This segment delivered an outstanding result, with revenue growth of 25% and EBITDA growth of 34% on a constant currency basis, which largely reflects the performance of webmotors.

• The national expansion strategy has continued to deliver excellent growth through adding new dealers, growing our audience and increasing private seller volumes.

• The implementation of dynamic pricing delivered significant growth in the private seller segment.

• Finance volumes also grew strongly, and media is starting to become a key growth driver of the business.

• The results also include the contribution of webmotors’ adjacent market subsidiaries, Car10 and Loop. Both businesses have demonstrated excellent growth in revenue and earnings over the last year.

• Chileautos also had a productive year with the successful implementation of the dealer leads model.

Slide 20 – Asia

• Encar has also had a good year with revenue and EBITDA up 15% and 11% respectively on a constant currency basis.

• Market conditions in South Korea have continued to improve over the last 12 months, which is supporting growth. We added 8 new branches over the past year which was a great result and this has supported another significant increase in penetration for the Guarantee inspection product.

• Revenue growth was supported by a 10% price rise on standard ads that was introduced at the end of the first half of the year.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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• Encar also continues to make strong progress on its mission to facilitate online car transactions, which is reflected in the strong growth of its Encar Home digital retailing service. Dealer Direct has continued to improve as the macro credit challenges experienced in FY23 have alleviated.

Slide 22 – Our Global Priorities

• You may recognise our strategic priorities on this slide. We will go into a bit more detail on those highlighted now, and talk about some of the key focus areas and growth drivers over the coming 12 to 24 months.

Slide 23 – Depth

• As many of you that have followed the company for a long time will know, depth products are an excellent way to engage potential buyers and deliver value for sellers.

• In Brazil, webmotors, in partnership with Santander, have launched an incentive program called “Wallet” where participating dealers can redeem webmotors products through cockpit. Santander can add credits to dealers’ webmotors wallets as an incentive to use them as their main finance channel. This is an exciting development as it will drive increased revenue, and also enable dealers to trial new depth and value add products

• In Korea, we’re evolving our Guarantee inspection offering. We’re adding inspection centres in regional areas, extending opening hours to service more customers and introducing new Guarantee inspection products. In July, Encar communicated a price rise of 10% on Guarantee ads, which has been implemented gradually from 1 August.

• In North America, following the successful launch of Premium Select in FY23, we’ve launched a new reporting module for dealers to get the full view of their return on investment from depth utilisation, which should improve customer acquisition and retention.

• These are just some examples of depth products that we’re launching to help dealers to reduce time to sell and/or achieve better gross margins.

Slide 24 – Private Seller Experience

• In Australia, consistent innovation in user experience has delivered a private ad yield CAGR of 11% since implementation of dynamic pricing in FY16. As a percentage of the average value of a car sold on carsales, that is approximately 0.5% which is good value given the amount of money a private seller can save compared to accepting a wholesale price.

• From an Instant Offer perspective, we’re looking to expand our eligibility criteria to address a greater proportion of the market, particularly at the upper and lower ends of the market. This will be achieved through third party partnerships and better use of data and pricing models.

• We’re constantly enhancing trust and safety and removing friction points in the private buying and selling process, which will be critical in our ability to continue growing yield.

• Some key focus areas include:

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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• launching photo assist using Generative AI to offer suggestions on how to best present photos of your car online and attract more buyers;

• verifying ID documents to highlight and instil greater confidence in verified sellers;

• introducing a new messaging platform to keep people in the carsales environment, which reduces the potential for fraud and the need to share private phone number details;

• adding a private test drive booking platform to enable bookings that best suits the seller’s schedule; and

• we are just launching our C2C payments beta which we think could be a real gamechanger in safely and securely selling cars privately online. I will talk more to this later

• From a synergy perspective, it has been great to see us bring some of our private seller IP and technology from Australia into Trader Interactive and webmotors. Our initial focus was on deploying dynamic pricing, which will continue to be optimised. But we’re also now focused on enhancing the private sell ad creation process in the US and Brazil, simplifying the process and reducing the number of steps it takes to create a private listing.

Slide 25 – Media Expansion

• We’ve talked about this over the last couple of AGMs but in Australia, we made an important decision to progress our media strategy a couple of years ago to diversify more heavily into non-automotive customer segments and introduce more innovative audience, programmatic and native product solutions.

• It has been great to see media being an excellent growth driver in all our key markets over the last year.

• Media was an area of significant potential growth we identified as part of our webmotors and Trader Interactive acquisitions, given both businesses had limited offerings in the media space.

• The media TAMs in North America and Brazil are huge and we’re very well placed to capture some share of these large markets given our strong market leadership in each of our businesses.

• We have a clear strategy to help us in this goal and it's pleasing to see us executing on the strategy.

• We’re establishing dedicated sales teams in each of our geographies to engage directly with OEMs and agencies and we’ll look to diversify the advertiser base.

• We’ve deployed sophisticated programmatic technology into both webmotors and Trader Interactive which is driving a material increase in ad viewability and yields.

• We’ll continue to deploy new technology that’s going to benefit each individual market

• • We’re at the start of our journey to penetrate these significant international media markets and gain market share and we’ve seen some of the benefits already with plenty of runway ahead of us.

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018

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Slide 26 – Future Horizons

• I mentioned we’re on the cusp of rolling out our C2C payments solution that provides a more secure option to buy and sell a vehicle and transfer funds from one party to another instantly.

• It will also instil buyer confidence that the seller of the vehicle has been checked by verifying ID documents.

• This is a great example of carsales differentiating itself in the private seller market.

Slide 27 – Sustainability – FY24 highlights

• Our mission here is to operate a sustainable business that future generations will be proud of, and as you can see here there is plenty for us to be proud over the last 12 months including Great Place to Work certification now in all geographies except South Korea.

• 86% of our people around the world would recommend CAR Group as a great place to work.

• And we have 44% female representation on CAR Group Board and 42% female representation in senior roles to name a few of our diversity achievements.

Slide 28 – Driving Long Term Shareholder Value

• This is the last slide in the deck, so just to summarise we’ve had an excellent year and we’ve got good momentum heading into FY25.

• We continue to build on our market leadership positions, building competitive advantage and delivering long term sustainable growth for shareholders.

• We remain focused on removing friction points in buying and selling, which is creating new monetisation opportunities for us.

• We’ve got a great opportunity in our international markets with new products, and we’re also focused on growing customer acquisition and take rates there over time as well.

• We’re very happy with the rate of our IP and technology transfers – and you can see from our results how we’re effectively leveraging these competencies across our different markets and there will be more to come.

• Finally, we’re a good generator of cash with a very strong balance sheet. You’ll see this continue to be a feature of the business – whilst also investing for future growth and paying attractive dividends to shareholders.

-ENDS-

Release authorised by and for further enquiries please contact: Cameron McIntyre Managing Director & CEO cameron.mcintyre@cargroup.com (03) 9093 8667

CAR Group Limited Locked Bag 9001 449 Punt Rd Richmond VIC 3121

www.cargroup.com

+61 3 9093 8600 ABN 91 074 444 018