24/06/2022 - Auto Trader Group plc: Annual Report and financial statements 2022

FINANCIAL

Revenue		Operating profit
£m		£m
2022	£432.7m	2022	£303.6m
2021	£262.8m	2021	£161.2m
2020	£368.9m	2020	£258.9m

Operating profit margin		Basic EPS
%		Pence per share
2022	70%	2022	25.61p
2021	61%	2021	13.24p
2020	70%	2020	22.19p
FINANCIAL KPIS P24
OPERATIONAL
Cross platform visits		Cross platform minutes
Monthly average visits spent		Monthly average minutes spent
across all platforms		across all platforms
2022	63.8m	2022	588.1m
2021	58.3m	2021	561.1m
2020	50.8m	2020	492.5m
Live car stock		Number of retailer forecourts
Average number per month		Average number per month
2022	430,000	2022	13,964
2021	485,000	2021	13,336
2020	478,000	2020	13,345
OPERATIONAL KPIS P26
CULTURAL
Employee engagement		Women as a % of total staff
% of employees who are proud		As at March each year
to work at Auto Trader
2022	95%	2022	40%
2021	93%	2021	39%
2020	89%	2020	39%
Ethnically diverse representation	Total CO2 emissions
as a % of total staff		Tonnes of carbon dioxide equivalent
As at March each year
2022	14%	2022	11,659
2021	11%	2021	6,673
2020	10%	2020	10,094

CULTURAL KPIS P28

2

STRATEGIC REPORT

1. Strategic highlights

1. Chair's statement

1. Chief Executive Officer's statement

1. Market overview

1. How we create value

1. Our purpose-driven strategy

1. The digital car buying journey

1. Non-financialinformation statement
2. Section 172(1) statement

1. Material decisions made

1. Key performance indicators

1. Operational review

1. Financial review

1. Make a difference

1. How we manage risk

1. Principal risks and uncertainties

70

GOVERNANCE

1. Governance overview

1. Board of Directors

1. Corporate governance statement

1. Report of the Nomination Committee

1. Report of the Audit Committee

1. Report of the Corporate Responsibility Committee

1. Directors' remuneration report

1. Directors' report

112

FINANCIAL STATEMENTS

112 Independent auditor's report to the members of Auto Trader Group plc

1. Consolidated income statement
2. Consolidated statement of comprehensive income
3. Consolidated balance sheet
4. Consolidated statement of changes in equity
5. Consolidated statement of cash flows
6. Notes to the consolidated

financial statements

1. Company balance sheet
2. Company statement of changes in equity
3. Notes to the Company financial statements

1. Unaudited five-year record
2. Shareholder information

STRATEGIC HIGHLIGHTS

We continue to execute against our strategy

We aim to grow our core

marketplace, bring more of the car buying journey online through digital retailing and become the industry standard data platform; whilst maintaining our commitment to all aspects of ESG via our make

a difference strategy.

OUR STRATEGIC PILLARS

Marketplace	Digital retailing
Data as a platform	Make a difference
OUR PURPOSE-DRIVEN STRATEGY P12	MAKE A DIFFERENCE P36

  Auto Trader Connect

We launched Auto Trader Connect as part of our April 2022 pricing event, which has gone well. This gives customers access to our most fundamental and powerful taxonomy data, improving advert quality, pricing decisions and enabling stock to be updated on

Auto Trader in real-time.

c.40%

of third-party software providers are now integrated with Auto Trader Connect

OUR PURPOSE-DRIVEN STRATEGY P12

• Consumer engagement and retailer numbers are at record levels

Our financial performance, customer numbers, consumer engagement and product uptake are at record levels. Throughout the year we have also strengthened our competitive position.

+5%

increase in the average number of retailer forecourts advertising on our platform during 2022

• Individual online car buying components live in trial

We continue to focus on supporting an increasingly online car buying journey and have made good progress in developing both the component parts which will form our end-to- end deal builder journey and scaling some of the key enablers to support digital retailing.

OPERATIONAL REVIEW P30

STRATEGIC REPORT

• Acquisition
  of Autorama

In March 2022, we announced that we have agreed to acquire all the share capitalofAutorama(UK)Limited,subject to regulatory approvals. Autorama's online marketplace and fulfilment capabilitieswilltransformAutoTrader's existing leasing proposition helping meet the demands of the growing number of consumers who might considerleasingtheirnextnewvehicle.

MATERIAL DECISIONS MADE P22

• April 2021
  pricing event

We successfully executed our annual pricing event in April 2021, including the launch of Retailer Stores, which provide retailers their own dedicated, customisable location on Auto Trader.

58m

visits to Retailer Stores pages during 2022

OUR PURPOSE-DRIVEN STRATEGY P12

• Becoming net zero before 2040

In June 2021, we signed up to the Science Based Targets initiative Business Ambition for 1.5°C. By doing so we have committed to achieving net zero before 2040 and will halve carbon emissions before the end of 2030.

GOVERNANCE

FINANCIAL STATEMENTS

• Welcoming Jasvinder Gakhal to the Board

Jasvinder was appointed as an Independent Non-Executive Director to the Board, with effect from 1 January 2022. Following Jasvinder's appointment, the Board comprises five Independent Non-Executive Directors, three ExecutiveDirectorsandaNon-ExecutiveChair.

BOARD OF DIRECTORS P72

• Evolved our advertising package structure

Early in the year, we evolved our advertising package structure, giving a consistent cross platform search experience powered by a relevancy algorithm. We also launched Market Extension, a product that allows our retailers to reach car buyers outside their local area.

31%

retailer stock on a package above Standard in March 2022

OPERATIONAL REVIEW P30

• Our audience performance has strengthened

64m

cross platform visits a month,onaverage,in2022