CAR GROUP LIMITED — Earnings Release 2013

Aug 13, 2013

==> picture [158 x 23] intentionally omitted <==

MEDIA RELEASE carsales.com Ltd keeping the pedal to the metal

August 14, 2013

carsales.com Limited (ASX: CRZ) today announced its financial results for FY2013.

For the 2013 financial year, the company once again delivered a strong performance, with earnings before interest, tax depreciation and amortisation (EBITDA) up 19% to $120.1 million, while net profit after tax (NPAT) rose to $83.5 million . This represents an increase of 17 per cent compared to the same period in FY2012 (FY2012, $71.6m). An Earnings per Share (EPS) amount of 35.5 cents represents growth of 16% from FY2012 to FY2013.

Total operating revenue of $215.1 million was up 17% per cent. carsales.com Ltd’s EBITDA margin increased slightly to just under 56 per cent.

carsales.com Ltd’s Board of Directors has declared a fully franked final dividend of 15.6 cents per share (FY2012 final dividend of 13.2 cents per share). The dividend will be paid on September 25, 2013. The record date for the dividend payment is September 11, 2013. Total dividends paid for the FY2013 year will be 28.3 cents per share.

RESULTS OVERVIEW

Year Ending 30 June 2013FYOperating Revenue(Excluding Interest Revenue)Online Advertising1	Year Ending 30 June 2013FYOperating Revenue(Excluding Interest Revenue)Online Advertising1	2012FY2013$'s%60.2187.227.017%$A MillionsGrowth	2012FY2013$'s%60.2187.227.017%$A MillionsGrowth
	Year Ending 30 June 2013FY	2012FY2013$'s%$A MillionsGrowth
	Operating Revenue(Excluding Interest Revenue)Online Advertising1	60.2187.227.017%
	Data & Research2	4.027.93.916%
	Total Operating Revenue1	84.2215.130.917%
	Operating Expenses(Before Interest and D&A)8EBITDA1	2.995.012.115%01.3120.118.819%
	EBITDA Margin5D&A	5%56%325(08)(24%)
	EBIT9	...8.0117.619.620%
	Net Interest Expense(Profit Before Tax9	1.3)(1.3)0.0-%9.3118.919.620%
	Income Tax Expense2Losses in Associates	7.635.27.627%0202
	..
	Net Profit After Tax71.683.511.917%
	Earnings Per Share (cents)30.635.54.916%
	Net Operating Cashflow (Before Capex)74.290.816.622%Capex5.62.8(2.8)(50%)

carsales.com Ltd CEO and Managing Director, Greg Roebuck said the strength in the financial performance of the business once again demonstrated the commitment and ability to execute innovation across a range of verticals, while at the same time focusing on the core automotive and classified marketplaces.

“The FY13 results are indicative of the continued long-term potential of carsales’ established business model, engaging the spectrum of dealer, private and display advertising customers in auto and similar verticals. Key metrics across these customer groups improved when compared to PCP (previous corresponding period), while our business to business, retail sites and data businesses also all performed well,” Mr Roebuck stated.

“FY2013 was a period where we continued our strategy of evolution through innovation and took to market a wide range of new products and initiatives.

“MediaMotive’s growth was achieved in a competitive environment, so it’s a great demonstration of how the online display space continues to provide significant opportunity,” he said.

“The period also saw a launch of our restructured general classifieds business, quicksales.com.au. Though this is still just a small part of the carsales ‘family’, the marketplace and its potential is large – and therefore remains a priority,” Mr Roebuck concluded.

This year carsales.com Ltd invested in two overseas companies that operate online automotive sites. The first of these investments was in iCar Asia (South East Asia), an ASX listed operator of online automotive classified sites in Thailand, Malaysia and Indonesia. The company acquired a 19.9% interest in the equity of iCar Asia. In late June, carsales.com Ltd also acquired 30% of the equity in Webmotors SA (Brazil), the largest online automotive classifieds site in Brazil.

In commenting on carsales.com Ltd's acquisitions during FY13, Mr Roebuck added: "As much as our focus has, and will continue to be, on our domestic verticals, we have for many years looked offshore in high growth markets for appropriate opportunities to invest.

“This year we were pleased to have taken the next step on two such opportunities via investments in iCar and Webmotors. We believe we can add substantial value to these two great businesses.”

Mr Roebuck also stated trading for the first six weeks since 30 June has shown solid pcp growth. carsales.com Ltd will provide a further trading update at its October AGM .

For further information, please contact:

Greg Roebuck CEO and Managing Director 03 9093 8600

Cameron McIntyre Chief Financial Officer 03 9093 8600