For personal use only Business Overview Investor Presentation - PowerPoint PPT Presentation

#1 online auto classifieds platform in Mexico, Ecuador and Peru For personal use only Business Overview Investor Presentation (3Q17) LatAm Autos (ASX: LAA) October 2017

Contents Executive summary 3 What we do 4 For personal use only Business and revenue model 5 Key investment considerations 6 Strong growth in organic traffic 7 Strong revenue growth momentum 8 Visible path to positive cash flows 9 Business turnaround and transformation 11 High growth in sales of finance, insurance and telematics 12 Growth driver #1 - rising internet penetration 13 Growth driver #2 – increasing market share 14 Growth driver #3 - high upsell leverage 16 Significant addressable market opportunities 17 Attractive relative valuation 19 Leading market positions 20 Significant upside potential in core markets 21 Mexican Customer Testimonial 22 Company overview 23 Summary P&L 24 Outlook and key catalysts 25 Board of directors 26 Key milestones to date 27 2 Appendices: Upsell Products. Bitauto case study. 28

Executive summary • LAA has consolidated its lead as the #1 dedicated online auto classifieds platform in Mexico with record For personal use only organic online traffic 1 growth of +107%, as well strong growth in Ecuador (64%) and Peru (31%) • Exponential growth in finance and insurance product sales, providing a defined path to operational cash positive around 2H18 Underlying 2 group cash receipts in A$ terms were up +50% since December quarter 2016, representing a + 46% • improvement in net monthly cash outflows improvement vs pcp 3 Significant revenue upside potential . Mexico alone is estimated to present a A$232m 4 revenue opportunity, • with its population 7x Australia • Significant upsell volume growth, with +794% volume growth in upsell products YTD in Ecuador and Mexico 5 • Finance and insurance generate high margins , with one auto finance product (MotorCredit) generating up to 6.3x revenue of traditional monthly dealer subscription revenue • Strong long-term macro tailwinds support revenue growth, with increasing internet penetration and rising motor vehicle ownership driving rapid growth of the Latin American auto-classifieds industry • Highly experienced, shareholder-aligned Board and management team (shareholding of c. 43%) have continued investing for growth 1. SEO & Direct traffic for Sep-17 compared to Sep-16 2. Refers to core markets of Mexico, Ecuador and Peru 3. Including monthly capex related to IT expenses, excludes one off severance costs of A$229k during 3Q 4. Source: AFR article 9-August-17. 5. Finance and insurance launched in Ecuador in Jan-17 and in Mexico Jun-17 3

What we do LAA provides a Latin American online automotive classifieds platform with upsell products For personal use only Strong Momentum: The Company delivered strong cashflow inflows for the September 2017 quarter, +50% since Dec-16 quarter in core markets of Mexico, Ecuador and Peru 1 2 Clear leading market positions vs. no. 2 2 Latin America focus 1 3 Monetising its customer network LAA Mexico 3.8 Mexico 5.6x LAA’s is executing the 3rd stage of its strategy: #2 0.7 % of total Revenue Traffic (‘000) 2 • Stage 1 – Acquiring cornerstone businesses 2017E: 38% #3 0.1 2018E: 56% • Stage 2 – Building leading market positions LAA Ecuador 1.0 13.9x #2 0.07 • Stage 3 – Monetising customer networks % of total Revenue This is a positive inflection point in LAA’s Ecuador 2017E: 50% LAA Peru 2.2 2018E: 40% business life cycle, where cashflows grow in line 1.4x #2 1.6 with upsell product revenues. Peru LAA Mexico 62.2 1.7x #2 Upsell Products: 33.6 % of total Revenue Listings (‘000) 3 2017E: 7% #3 1.2 • Finance and transaction services 2018E: 4% LAA Ecuador 24.3 • Connected car and data analytics 4.5x #2 5.4 Other markets • Insurance Products Panama % of total Revenue LAA Peru 17.6 Argentina 2017E: 6% 1.9x #2 9.5 2018E: 0% Content: Regional 1. Revenue by country percentage estimated using FY 2017E. 2. Traffic source: Similar web, traffic for Sep-2017, Similarweb.com third party service provider that provides estimates only, actual results may be significantly different to similarweb estimates. Analysis excludes autocosmos.com.mx as it is considered a content site 3.Listings – Each website as at Oct-17 4

Business and revenue model Investment highlights LAA provides an online automotive marketplace which connects car buyers with car sellers (both private sellers and car dealers) For personal use only • LAA generates “traditional” revenues from its online car classified business through advertising, car dealer subscriptions an d private listing fee revenues • LAA supplements its traditional revenues with a range of highly profitable upsell offerings called “Upsell Products” High Margin Upsell Traditional online classified revenue Products streams Telematics Advertising Auto finance Dealers Private listings (GPS tracking) • Users pay listings fees • MotorCredit auto • Data • Display banners • Subscription services • Content and • Upsell Products finance aggregation - Gold premium content - Silver generation - Bronze • Communication • Advertising Car certification General Insurance • Lead generation tools • Add-on services (i.e • Recurring revenue search results • Mechanical guarantees source through ranking, photos) estimated high renewal rates • +794% growth in unit sales since January, see page 12 5

Key investment considerations Market Company For personal use only Significant addressable market Visible path to breakeven cash flows • Mexico’s 128m population over 7x Australia and presents a revenue • Mix of cost reduction and revenue growth (growth in core classifieds opportunity of ~A$232m 1. and upsell revenues) expected to accelerate path to cash breakeven - Mexico and Ecuador being managed for cashflow growth - Peru currently approx. cashflow breakeven Strong revenue growth outlook Positive leading indicators point to strong outlook • Increasing internet penetration and regional GDP per capita growth • Record organic online traffic growth in the 12 months to 30 driving rapid growth of the Latin American auto-classifieds industry September 2017 of +107% (Mexico), 64% (Ecuador) and 31% (Peru) • SEO & Direct traffic for Sep-17 compared to Sep-16 2. Strong revenue growth momentum driven by: • ➢ Partnerships with dealer associations driving new dealer customer Strong organic online traffic flows numbers ➢ Strong sales momentum in high margin upsell products ➢ Signing two large dealer associations in Mexico as potential customers (combined ~600+ dealers) Leading market positions Leveraged to fast growing, high margin upsell products • • First mover advantage, leading market positions and high barriers to +794% growth in upsell product unit volumes since Jan 2017 entry in key geographies • Outlook is strong, as existing dealers increase take-up rates and new • Number 1 dedicated online auto classifieds platform in Mexico, dealers sign onto the LAA platform Ecuador and Peru • Upsell products are high margin and expected to substantially contribute to revenue and EBITDA growth 6 1. Source: AFR article 9-Aug-17, 2. SEO & Direct traffic for Sep-17 compared to Sep-16.

Strong growth in organic traffic Investment highlights Organic traffic growth has grown significantly, benefitting from network effects in core markets and strategic For personal use only partnerships Organic Traffic Growth (SEO & Direct rebased to 100) 220 Mexico 200 +107% • Record organic online traffic growth in the 180 12 months to 30 September 2017 of +107% (Mexico), 64% (Ecuador) and 31% 160 Total Growth (%) Ecuador (Peru) 1 +64% 140 • Peru Strategic partnership with ANCA driving 120 +31% new dealer subscriptions 2 100 80 60 3Q2016 4Q2016 1Q2017 2Q2017 3Q2017 Mexico Ecuador Peru 1. SEO & Direct traffic for Sep-17 compared to Sep-16. 2. anca.com.mx, one of the largest used car dealer associations in Mexico with over 500 members 7

Strong revenue growth momentum Investment highlights Key revenue Trends For personal use only Revenue – Mexico (MXNm) Historical revenue growth momentum was over 80% since 1H15. 20.0 Upsell Products are expected to provide an even greater 18.0 inflection point in revenue and profitability growth. 16.0 3.9 0.2 14.0 12.0 MXNm 10.0 8.0 16.0 13.6 13.6 MEXICO REVENUE PERFORMANCE 12.9 6.0 10.2 4.0 7.6 • Strong revenue growth. 83% growth from 1H15 until 1H17 2.0 – 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 (Estimated) Traditional Revenue Depth Products Revenue – Ecuador (USDm) 1.4 1.2 1.0 ECUADOR REVENUE PERFORMANCE 0.4 0.3 USDm 0.8 • Strong revenue growth. 88% growth from 1H15 until 1H17 0.6 0.9 0.8 0.8 0.4 0.8 0.7 0.6 0.2 – 1H 2015 2H 2015 1H 2016 2H 2016 1H 2017 2H 2017 (Estimated) Traditional Revenue Depth Products 8 1. SEO & Direct traffic for Sep-17 compared to Sep-16. 2. anca.com.mx, one of the largest used car dealer associations in Mexico with over 500 members 3. There is some seasonality to the business so comparisons should generally be made to the previous corresponding period