Corporate Update. Mark O Neil. CEO Dealertrack Technologies. Copyright 2015 Dealertrack, Inc. All rights reserved.

Transcription

1 Corporate Update Mark O Neil CEO Dealertrack Technologies 1

2 Deliver the market leading suite of integrated technologies capable of transforming automotive retailing globally Revolutionized automotive 1999 credit. Elevate the role of digital in car buying Offered end-to-end tools to drive efficiency Provided our clients with the power to transform automotive retail Global expansion. Copyright 2015 Dealertrack, 2015 Dealertrack, Inc. Inc. All rights reserved. 2

3 Who Are We Doing it For? Dealers Shoppers OEMs Lenders/Partners 3

4 We Have Unique Capabilities To Enable Change Connecting 20,600+ Dealerships 94%+ of U.S. franchise dealers with 20+ OEMs 1,500+ Lenders over 4,500+ Team members worldwide in 90+ Countries supporting Touching 3 of 4 Cars sold in the U.S. and Canada and 100M+ Transactions Annually and Generating $1B+ In Expected 2015 Revenue hosting 45M+ Unique visitors / month on 13,000+ Dealer Websites and Managing 41M+ Financed Titles 3M+ Vehicles Transported and Insight into 1 out of 4 Buy/Sell Lists & 5M+ Inventory Listings by Investing $175M+ In R&D / IDS 4

5 Strong Growth. $1, $ Annual Revenue ($ and Transactions in Millions) $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ Subscription Revenue Transaction Revenue Advertising and Other Revenue Number of Transactions 5

6 Strong Adj. EBITDA and Cash Flow Trends Annual Adj. EBITDA and Margin ($ in millions) $193 $200 $150 $118 $86 $97 $100 25% 24% 24% $50 23% 40% 35% 30% 25% ($ in millions) $100 $80 $60 $40 $20 Annual Cash Flow from Operations $134* $82 $71 $65 $30 18% 18% 17% 50% 40% 30% 20% 10% $0 $ Adj. EBITDA Adj. EBITDA Margin ($ in millions) ($ in millions) $60 $57 $50 $55 60% $100 $45 $30 Quarterly Adj. EBITDA and Margin $33 $33 $28 $31 $40 20% 45% 30% $0 $75 $ % Cash Flow from Operations Operating Cash Flow Margin $43 Annual Adjusted Net Income $49 $59 $82 0% $15 $0 22% 27% 26% 22% 19% 22% 24% 23% 16% 1Q'13 2Q'13 3Q'13 4Q'13 1Q'14 2Q'14 3Q'14 4Q'14 1Q'15 Adj. EBITDA Adj. EBITDA Margin 15% 0% $25 $ * After adjusting for the impact of acquisition and acquisition-related costs. 6

7 We Believe Technology is Transformative. Today Controlled Dealerships Driving the Process Transformed Self Directed Personalized Shopping Experience Tedious 3 to 4 Hours in the Dealership Fast Process is Measured in Minutes Not Hours Rigid/Profitable Limited Options Flexible/Profitable Transparent and Predictable Uncomfortable Unpleasant Interactions and Negotiation Enjoyable Building and Strengthening Relationships 7

8 How will Dealer Operations Evolve? Key Predicted Changes 1 SFI roles merge. Functions centralized (e.g. Inventory). Fixed Ops investment on the rise. 4 Increase in technology reliance; less staffing required. Increasing data security demands. Need for technical competence/team increases. More data driven decision making. 2 Rise of dealer group brand. Price transparency and simplification. Margin compression. 5 Increased use of kiosk/mobile. Rise of digital retailing. Connected car increases dealer engagement (CRM). 3 OEM pressure to improve in-store process. Consumer pressure to shorten process. Focus on customer loyalty/retention. 6 Dramatic increase in used supply. Emergence of uber used car dealer. Technology drives shorter ownership lifecycle. 8

9 Anticipated Changes in Indirect Auto Lending-2018 Stakeholders Dealers Consumers OEMs Lenders Competitors Regulation Anticipated changes Expanded use of online, as well as in-store wireless and tablet Extend retail financing workflows directly to consumers Consolidation/integration around major dealer players Softer automotive demand from Millennials Social and peer-to-peer lending Increased OEM-branded online to in-store technology and integration Provide customers with demonstrated time savings in-store, for increased CSI, & consistent consumer experience Integration of digital retailing and CRM tools Leverage digital properties for direct or direct to indirect lending Direct to Consumer portals expand o TrueCar Level of scrutiny on indirect auto and across F&I likely to rise 9

10 Outlook for Lenders Healthy Market (Steady SAAR) Online Opportunities Direct and Direct to Indirect New Dealer/Lender Workflow Innovations Digital Contracting and DDS Hybrid Accelerated Title Mobility More insight & analytics Regulations & Enforcement Increased Lender Competition Peer to Peer Speed of Change 10

11 Innovation Through Integration Originations Contracting Title Management 11