CL8 Holdings Limited · ASX:CL8
CL8 — Carly Holdings — Investor Presentation (April 2021)
39 slides from CL8's investor presentation, Apr 28, 2021
Slide 1: Leading the Transition to Car Subscription
Leading the Transition to Car Subscription Investor Presentation 28 April 2021
Slide 2: Disclaimer
Disclaimer The material herein is a presentation of non-specific background information about the current activities of Carly Holdings Limited (Carly Holdings or the Company). It is information given in summary form and does not purport to be complete. All persons should seek appropriate professional
Slide 3: Key updates – April 2021
Key updates – April 2021 Subscription Transaction Value Growth 85% Mar 21 Qtr vs Mar 20 Qtr Growth in Subscribers 74% Mar 2020 to Mar 2021 Continual Subscription Retention Period 5.31 mths Mar 2021 Improvement in Key Metrics Corporate Vehicle Utilisation 83% Mar Qtr 2021 Reduction in insurance claim
Slide 4: Carly Holdings Overview
Carly Holdings Overview The Company The Ideal Solution Market Opportunity Carly Holdings is innovating in the Carly, Australia’s first flexible car subscription 38% of Australians* would rapidly evolving automotive and service launched in March 2019. consider subscribing to a car mobility markets in A
Slide 5: What is a Carly Car Subscription?
What is a Carly Car Subscription? A fast, flexible and low-risk way for individuals and businesses to access quality new or used vehicles online for 30 days+ The key benefits of Carly Subscription are: ● one simple monthly subscription fee includes registration, insurance, maintenance and roadside ass
Slide 6: Key milestones
Key milestones $1m strategic investment from NZ auto leader Turners Automotive DriveMyCar expands fleet over 20% with 101 Subaru Imprezas Hyundai chooses Carly for car subscription in Australia Launched in Carly Holdings receives $1m Sydney SG Fleet invests DriveMyCar enters strategic investment from
Slide 7: Carly Holdings Board of Directors
Carly Holdings Board of Directors Chris Noone Robbie Blau Todd Hunter Adrian Bunter Stephen Abolakian Michelle Vanzella Chief Executive Officer Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director Non-Executive Director and Director Chris has led the Robbie is CE
Slide 8: Corporate Structure
Corporate Structure As at 31 March 2021 Board, management and related parties Other Shares on issue 56.5 m shareholders Options on issue 4.3 m 23.8% 27% Market capitalisation $5.9 m Carly has no debt Top Shareholders Willoughby Capital Pty Ltd 24.7% SG Fleet Management Pty Limited 19.6% 20.7% Turner
Slide 9: The way people access cars is changing rapidly
The way people access cars is changing rapidly 38% 59% 10% 10% Shift from Car Rise in use of Automotive Uptake of Multiple Ownership to Access Subscription Services Industry Disruption Mobility Solutions Ownership is increasingly From mobile phones to New car sales are in decline, Individuals and bu
Slide 10: Carly website
Carly website *NEW* Homepage Results page Car details page 10
Slide 11: A start-up with a head start
A start-up with a head start 38% Carly is a first-mover in the Australian Carly has strong market DriveMyCar operates in key car subscription market; leveraging potential: rental markets: the experience, partnerships and ● No dominant competitors ● Long-term car rental proprietary technology develope
Slide 12: Subscription fills a large gap in the mobility market
Subscription fills a large gap in the mobility market 5.3 months Average subscription period (Mar 2021) Cost Car Share 1 hr – 1 day Car Rental 1 – 14 days Car Subscription 30 days – 1 year Outright Purchase & Long-term Finance 1+ year Time 12
Slide 13: Carly connects subscribers with suppliers of vehicles
Carly connects subscribers with suppliers of vehicles Supply Marketing Demand Automotive manufacturers Online discovery Families Automotive dealers Insurance Contractors ID verification Fleet management companies Relocators Sales Corporate fleets Experience Seekers Fleet mgt Strategic partners De-risk
Slide 14: Car subscription market potential
Car subscription market potential The new and used car sales market in Australia is valued at $55 billion p.a AFR - Apr 2020 38% 59% 10% Car Subscription Market of Australians ‘Probably Would’ of all new vehicle Penetration Potential would consider a or ‘Definitely Would’ sales in the US and car subs
Slide 15: The right time for Car Subscription
The right time for Car Subscription Many businesses have been severely impacted by COVID-19, however Carly car subscription revenue increased as people sought lower risk, 74% MAR 2020 Growth in subscribers vehicle access solutions that do not require Subscription growth continued MAR 2021 despite CO
Slide 16: Car subscription grows despite COVID-19
Car subscription grows despite COVID-19 COVID-19 lockdown Rental & Subscription Receipts Lock down impacts car rental and rideshare rental $900,000 $800,000 $700,000 $600,000 Consistent growth of $500,000 Carly Car Subscription $400,000 Exceeds pre-COVID19 revenue, limited primarily by $300,000 vehi
Slide 17: Vehicle Supply Market Conditions
Vehicle Supply Market Conditions The onset of the Covid-19 pandemic has not dampened consumer and business demand for vehicles; however, it has had a negative impact on vehicle supply, caused by manufacturing plant closures and shortages of microchips which are now prevalent in all new vehicles. Whi
Slide 18: Addressing the Supply Challenge
Addressing the Supply Challenge Increasing Vehicle Supply In addition to the existing vehicle supply model whereby vehicle providers retain ownership, Carly will secure a number of vehicles by leveraging its own capital. This may involve indirect control of vehicle supply, direct purchase, lease or
Slide 19: Realising Opportunities
Realising Opportunities Vehicle supply restrictions also present significant demand opportunities for Carly. The lack of suitable new vehicles and the increased cost of used vehicles means customers that previously wished to buy or finance vehicles are seeking other options, such as subscription. Ca
Slide 20: ESG & benefits of Car Subscription
ESG & benefits of Car Subscription Subscription is positively positioned relative to Environmental, Social & Corporate Governance (ESG) concerns Subscription increases utilisation of existing vehicles • Subscription enables more efficient use of under-utilised vehicles • Increasing existing vehicle
Slide 21: Australians' attitudes towards Car Subscription
of Australians would consider Australians’ 38% subscribing to a car rather than purchasing or leasing attitudes towards 47% of people with children would consider subscribing to, rather than purchasing Car Subscription their next car Interest in Car Subscription has increased since COVID-19... 69% 5
Slide 22: ATO Product Ruling
ATO Product Ruling Carly has secured a product ruling from the Australian Taxation Office that provides a clear framework for Carly subscribers using cars for business or work purposes to claim tax deductions. The ATO Product Ruling is exclusive to Carly and does not apply to any other car subscriptio
Slide 23: Industry leading partnerships
Industry leading partnerships Rentals for rideshare drivers and Supply of new Mitsubishi, Supply of new and the first accident replacement Renault, KIA, Subaru, ex-lease vehicles rental solution for Uber Nissan vehicles Carly launched the first Integrated subscription DriveMyCar is preferred car manuf
Slide 24: Turners Automotive Group grows car subscription in New Zealand
Turners Automotive Group grows car subscription in New Zealand Turners subscription is achieving significant traction in New Zealand: ● Turners Subscription powered by Carly launched in September 2020 ● Followed on from AUD $1M in investment from Turners Automotive Group - the largest seller of cars
Slide 25: SG Fleet strategic investment, vehicle supply and B2B referral partnership
SG Fleet strategic investment, vehicle supply and B2B referral partnership ● SG Fleet invested A$2.2 million in Carly Holdings in November 2019 ● A dominant player in fleet management and leasing, SG Fleet manage over 140,000 vehicles and supply Carly and DMC with vehicles ● The B2B collaboration ena
Slide 26: The first subscription service to partner with a manufacturer and their dealer network
The first subscription service to partner with a manufacturer and their dealer network “The future of personal mobility will not be based solely around vehicle ownership and Hyundai will adapt to changing consumer demands. Through this partnership we will provide ● Hyundai is the third largest car br
Slide 27: Revenue and margins per subscription are improving
Revenue and margins per subscription are improving Upselling to higher value subscription plans, as COMPARISON OF QUARTERLY RESULTS well as increases in average end user prices supported by lower cost of sales, have driven AVERAGE SUBSCRIPTION VALUE COST OF SALES GROSS MARGIN material increases in r
Slide 28: Improving insurance metrics
Improving insurance metrics YEAR ON YEAR 7 MONTHS CLAIMS PER 4.8 4.2 3.7 2.6 10,000 DAYS Rental Rental + Rental + Subscription only Subscription Subscription only April 18 – Mar 19 April 19 – Mar 20 April 20 – Oct 20 April 20 – Oct 20 9.1% reduction in motor fleet insurance premium costs achieved fo
Slide 29: Carly's competitive advantage
Carly’s competitive advantage 10+ years experience in the industry Substantial industry partnerships Direct and licensing income Online customer acquisition Industry enabler, not a competitor Capital-light business model supplemented Mass market proposition by direct control of vehicle supply Propri
Slide 30: FY21 Growth Opportunities
FY21 Growth Opportunities Increased Control Over Vehicle Supply Business & Government Carly will supplement the existing vehicle fleet provided by automotive manufacturers, dealers and Carly will leverage the relationship with SG fleet management companies with vehicles that are Fleet to offer subscr
Slide 31: Why invest in Carly Holdings?
Why invest in Carly Holdings? Consumers & businesses are ready Car Subscription is gaining traction Access to vehicles is increasingly preferred to Carly has grown steadily since launch in March ownership. Carly provides flexible and cost- 2019 and has secured partnerships with leading effective ways
Slide 32: Investor contact details
W: www.carly.co/investors E: [email protected] Sign up to our investor newsletter http://carly.co/investors/newsletter
Slide 33: Appendices
Appendices I. Improving Subscription Plan Economics II. Upselling to Higher Price Subscription Plans III. Experience Delivers Lower Risk and Higher Conversion IV. Media Coverage V. Carly in the News VI. The Auto Industry and Consumers Realise the Value of Car Subscription 33
Slide 34: Improving subscription plan economics
Improving subscription plan economics REVENUE SHARE Increase in average Carly revenue share from new subscription plans* 2.1% New subscription plans were launched on 1 Sep 2020. The 2.1% increase will support improvements in profit margin in future quarters AVERAGE RETENTION PERIOD 5.0 5.3 6% Longer
Slide 35: Upselling to higher price subscription plans
Upselling to higher price subscription plans Through sales and marketing initiatives, Carly upsold a higher proportion of customers from SEPTEMBER QUARTERS YEAR ON YEAR ‘Entry’ to ‘Medium’ subscription plans, resulting in revenue and margin improvements. 2019 62% 22% 16% ENTRY MEDIUM LARGE 2020 44%
Slide 36: Experience delivers lower risk and higher conversion
Experience delivers lower risk and higher conversion Competitors compensate by charging large upfront fees that restrict customer uptake or ignore risk altogether. The experience of completing over 4,000 monthly recurring vehicle transactions means that Carly can deliver: LOWER HIGHER MORE fraud ris
Slide 37: Media Coverage
Media Coverage Sophia Lust Liquor Sunrise A Current Affair Consumer Case Study Business Case Study Carly featured on Sunrise Carly featured on A Current Affair Featured on A Current Affair After Carly was featured on Sunrise and A Current Affair, Featured on Sunrise the number of people searching for Ca
Slide 38: Carly in the News
Carly in the News Car Subscriptions soaring Subscribing to a car could help you survive the pandemic and save on your finances Tax win for Carly subscribers The $700 million fleet management group SG Fleet has taken a stake in Carly Australians are swapping their Netflix Style Car Subscription Company
Slide 39: The auto industry and consumers realise the value of Car Subscription
The auto industry and consumers realise the value of Car Subscription “ CARLY, the Australian car subscription provider has had all-time record subscription sales in the quarter to June 2020 in spite of, or possibly because of, the challenging sales numbers in the ‘conventional’ car market. The comp