CAR Inc.2020 First Quarter Earnings Call
May 31, 20208:00pm Beijing
Agenda
Tony CAOChief Financial Officer
Business Overview
FinancialResults
Overview
Yifan SONGExecutive Director & Chief Executive Officer
1
Business Overview
Yifan SongExecutive Director & Chief Executive Officer
2
Q1 Achievement
(RMB)
3
878m
Car rentalrevenue
146m
547m
947m
Adj. EBITDA Rental Revenue
Gross profit
176
ADRR
Utilization rate
15% 58%
Note: (1) Margins are as percentages of rental revenue(2) Reconciliation of adjusted EBITDA can be found in CAR Inc.’s results announcement
48%
4
APP optimization
5
Commitment on safe service and work environment
Steadily expanding business base
1Q'19 1Q'20 1Q'19 1Q'20
+17% YoY Customers
+24% YoY Members
1Q'19 1Q'20
+10% YoY Average daily car rental fleet
6
1Q'19 1Q'20
-11% YoY Rental days
Efficient used car disposal
4,462
6,469
1Q'19 1Q'20
+45% YoY Number of rental vehicle disposed
7
Cost of sales of used vehicles as % of sales of used vehicles
2017
101.1%
100%
2018
103.9% 102.7%
2019 1Q’19
103.7%
1Q’20
103.1%
➢ Lower average price for disposed vehicle YoY as a result of (i) fewer higher priced ride hailing vehicles and (ii) the disposal of certain brands with lower sales prices;
➢ Higher depreciation cost as a percentage of rental revenue mainly due to the lower RevPAC as a result of COVID-19.
Financial Results Overview
Tony Cao Chief Financial Officer
8
1Q’20 Adj. net profit walk
241
Decreased tax due to the decease in
profit
Higher depreciation cost due to reduced
estimations of residual values
-156
TaxCar rental impact
Fleet rental impact
Vehicle residual adjustment & others
1Q’19 1Q’20
Weak demand due to COVID-19
UCAR fleet rental decline
9
(RMB in millions)
Healthy cash flow
(RMB in millions)
Free cash flow
Note: (1) Cash includes restricted cash and cash and cash equivalents at quarter end 10
85
1,026
1Q'19 1Q'20
Cash 3,696 3,305(1)
✓ Strong cash flow
✓ Cash position remained strong at RMB3.3 billion
Healthier financial position(RMB in millions)
Note: (1) Reconciliation of adjusted EBITDA can be found in CAR Inc.’s results announcement 11
Total debt
14,880
11,683
2019 1Q'20
2.6x 2.7x
2019 1Q'20
4.3x3.8x
2019 1Q'20
Net debt/adj. EBITDA
Total debt/adj. EBITDA
Q & A