CAR GROUP LIMITED — Capital/Financing Update 2016

Mar 28, 2016

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carsales acquires Chile’s number one automotive classifieds site

25 March, 2016

carsales.com Limited (ASX:CAR) (carsales) has acquired a controlling shareholding in Chileautos (www.chileautos.cl), the number one automotive classifieds website in Chile. Through this transaction, carsales acquired an 83% stake in Chileautos, with the existing owners retaining the remaining 17% stake.

“Chileautos represented a great opportunity to continue our Latin American growth,” said Paul Barlow, carsales Director International. “Chile is the strongest LatAm economy as measured by GDP per capita and with Chileautos being the clear number one in its market there is significant upside that will come from utilising carsales’ expertise, experience and technology”.

“We look forward to partnering with Chileautos and utilising carsales’ IP, technology and knowhow to capitalise on Chileautos’ already excellent market position. This is a prime strategic opportunity to take another Spanish speaking business to the next level,” said carsales CEO Greg Roebuck.

“We view Latin America as an extremely attractive market for carsales and Chileautos is a great addition to our portfolio of international assets, providing another significant stepping stone for growth. Our aim is to be a compelling number one in all our markets around the world, not just an interesting player,” continued Roebuck.

“Importantly, this investment increases our global footprint and capitalises on the work we have begun in Mexico rolling out Spanish language technology and now starts to deliver us economies of scale in Latin America,’ said Barlow. “Our Latin American investments are still at an early stage, but carsales is excited by the medium and longer term opportunity.”

carsales’ initial investment was US$15m, funded from existing cash reserves and existing syndicated debt facilities. carsales also retains an option to purchase the remaining 17% stake in Chileautos at its election at any time during the next four years. This investment is expected to make a positive contribution to EBITDA, albeit not material, and is expected to be EPS accretive to carsales shareholders after the first year of ownership.

ENDS

For further information, please contact: Will Clarke Communications and PR Manager 03 9093 4505 / 0468 971 536 will.clarke@carsales.com.au @willclarkeinoz

About carsales.com Ltd

carsales.com Ltd (ASX: CAR) is the largest online automotive, motorcycle and marine classifieds business in Australia. Attracting more Australians interested in buying or selling cars, motorcycles, trucks, caravans and boats than any other classified group of websites. The carsales network of websites includes carsales.com.au, Australia's number one automotive classified website, motoring.com.au, bikesales.com.au, boatsales.com.au, RedBook.com.au as well as leading caravan, truck and machinery classified websites. Together with its subsidiaries employing more than 700 people in Australia.

In addition to its Australian operations carsales develops world leading technology and advertising

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solutions that drive its business around the world. The carsales network has operations across the Asia Pacific region and has interests in leading automotive classified businesses in Brazil, Mexico, South Korea, Malaysia, Indonesia and Thailand.

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