Carsales.Com Ltd Annual Report 2022

FY2022 Annual Report · Carsales.Com Ltd
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Annual Report 2022

CONTENTS

1   Our Operational Highlights

17   International Highlights

2   Our Strategy

20   Our People. Our Culture.

3   The Evolution of our Strategy

26   Directors’ Report

4   Chair and CEO Letter

30    Corporate Governance

8   What We Do 

8  Our Markets

9   Our Australian Business

13   Australian Highlights 

16   International Businesses

30 

 Sustainability Report

32 

 Our Board

34 

 Our People and Culture  
Chair’s Message

36 

 Remuneration Report

56 

  Other Directors’ Report  
Disclosures

60 

 Auditor’s Independence  
Declaration

62 

 Financial Statements 

131  Directors’ Declaration

132   Independent Auditor’s Report

138   Shareholder Information 

140  Corporate Directory

Founded in 1997, carsales.com Ltd (ASX: CAR) is the number one online automotive classifieds 
business in Australia with a growing global presence in Asia and the Americas. carsales.com Ltd also 
operates a number of market leading websites in non-automotive verticals including motorcycles, 
boats, caravans, trucks and heavy machinery.

We seek to empower our customers, making buying and selling vehicles as easy as possible for 
everyone – consumers, dealers and manufacturers alike. Headquartered in Melbourne, Australia 
carsales employs over 1700 people across the world and is a member of the S&P/ASX100.

carsales Annual Report 2022

OUR OPERATIONAL HIGHLIGHTS
(FY22 METRICS COMPARED TO FY21 UNLESS OTHERWISE STATED)

1.3 billion

Total sessions

46 thousand

2.1 million

Subscribed dealers

Vehicles online

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Launched Select

Great place to work®

carsales’ digital retail 
product in August 2021

Awarded for the fifth consecutive 
year

385 thousand

Cars inspected by Encar

6% increase

In employee engagement 
per our Employee 
Opinion Survey

Nifty Fifty

Trader Interactive 
Innovation award for 
digital retail product

Carbon Neutral

In our Australian  
Operations

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carsales Annual Report 2022

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OUR STRATEGY 

Our Purpose

Make Buying and Selling A Great Experience

Our Strategic Pillars

Digital 
Marketplaces

Grow our leadership in 
digital marketplaces 

Value-added 
Services

Build a compelling 
ecosystem of services 
that support our 
customers through 
the buying, selling and 
ownership of vehicles

Future  
Horizons

Leverage consumer 
insights and emerging 
industry trends 
to explore new 
opportunities

Our Drivers

Data

People

Technology

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carsales Annual Report 2022THE EVOLUTION OF OUR STRATEGY 

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Y

1997
carsales domain 
name registered

2005
carsales acquires 
PBL Media’s 
websites

2006
carsales hits 
100,000  
cars online

2009
carsales lists  
on the ASX

2010
carsales hits 
200,000  
cars online

2015
Launched digital  
trade-in product  
Instant Offer

2014
Acquired 49.9% 
stake in Encar 
(Korea)

2013
Launched  
ecommerce platform 
tyresales.com.au

2013
Acquired 30% stake  
in webmotors (Brazil)

2016
Launched vehicle 
inspection service 
RedBook Inspect

2016
Acquired controlling 
stake in chileautos 
(Chile) and soloautos 
(Mexico)

2017
Acquired remaining 
stake in Encar

2020
Launched  
mobility-as-a  
service transport 
aggregator Placie

2022
Acquired remaining 
stake in Trader 
Interactive*

2021
Launched buy online 
service Select

2021
Acquired digital 
tyre wholesaler 
tyreconnect

2021
Acquired 49% stake  
in non-auto 
marketplace group 
Trader Interactive (US)

* Transaction due to complete in late Q1/early Q2 of FY23

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURES 
 
 
 
CHAIR AND CEO LETTER

Pat O’Sullivan
Non-Executive Chair

Cameron McIntyre
Managing Director and CEO

FY22 has been a transformational year for carsales as  
we celebrate our 25th anniversary. We have delivered 
outstanding results despite ongoing disruptions and 
volatility caused by COVID-19. The acquisition of the 
remaining 51% of Trader Interactive in North America is  
an incredibly exciting evolution of our international growth 
strategy and strengthens carsales’ position as a truly global 
leader in digital vehicle marketplaces. From a group 
strategy perspective, we are committed to delivering on  
our purpose of making ‘buying and selling a great 
experience’ across all our marketplaces. COVID has 
accelerated digitisation, which is creating new growth 
opportunities for carsales as we strive to bring more and 
more of the vehicle buying journey online. At the start of 
the pandemic, carsales adopted three core decision making 
principles which it continues to abide by: supporting our 
customers, protecting our people and driving the long term 
objectives of the company. This has enabled us to emerge 
as a stronger business which is reflected in the breadth  
of opportunities in front of us as we move into FY23.

Industry context 
Automotive and non-automotive vehicle inventory levels 
continue to be impacted by supply chain constraints, 
primarily due to ongoing semi-conductor chip and other 
component shortages, freight costs, production and 
logistics constraints. As a result, used car prices have risen 
at unprecidented rates and we expect inventory levels to 
be an ongoing challenge for the next 6-12 months at least. 
With less new cars being sold, there have also been fewer 
trade-ins, driving more competition for used car supply 
between dealers. Despite these challenges as well as the 

impact of inflation and rising interest rates, we have 
continued to see robust levels of demand in all our key 
markets, reflecting the resilience of marketplace business 
models through economic cycles. 

Trader Interactive Acquisition and 
Capital Raising
During the course of the last 12 months we have become 
even more excited about the value of the Trader Interactive 
business and its growth potential. As a result we chose to 
exercise our call option in June to acquire the remaining 
51% of Trader Interactive for US$809m or approximately 
A$1,172m. Trader Interactive is a leading platform of 
branded non-automotive marketplaces in the United 
States, providing digital marketing solutions across the 
commercial truck, recreational vehicle, power sports and 
equipment industries. Trader Interactive is a clear leader in 
large markets that have upside from both a digital adoption 
and monetisation perspective. Culturally, there is strong 
alignment between the carsales and Trader Interactive 
teams and we have demonstrated an excellent track  
record of delivering shareholder value by diversifying into 
international markets. Moving to 100% ownership will 
enable shareholders to capture the significant upside 
potential in the Trader Interactive business. 

We successfully executed a $1,207m accelerated  
non-renounceable entitlement offer to fund the transaction 
which was very well supported by our retail and institutional 
shareholders. We anticipate completing the deal late in the 
first quarter or early in the second quarter of FY23. 

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carsales Annual Report 2022

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FY22 has been a transformational year for the 
company as we celebrate our 25th anniversary. 
We have delivered outstanding results despite 
ongoing disruptions and volatility caused  
by COVID-19.

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CHAIR AND CEO LETTER CONTINUED

The growth in our media business has also been very 
pleasing this year. Our strategy of diversifying into more 
native ad placements as well as into non-automotive 
segments is paying dividends and is reflected in our third 
consecutive half year of double digit revenue growth. From 
a dealer perspective, there is strong momentum with our 
digital car buying experience, carsales Select and we are 
making steady progress in developing our value proposition 
for both consumers and dealers alike. With rising interest 
rates it is important for dealers to be able to showcase their 
finance offerings to potential car buyers to differentiate 
their vehicles from those of their competitors and our 
finance offering has continued to make good progress  
and has excellent momentum heading into FY23. 

International
Our international growth strategy continues to deliver.  
We have an enviable portfolio of assets, which are key 
pillars of our long term growth strategy. Our three largest 
international assets in South Korea, the United States and 
Brazil continue to demonstrate impressive growth profiles, 
with each delivering double digit growth in revenue and 
EBITDA in FY22. 

In South Korea, we had another outstanding year from a 
business performance perspective, with constant currency 
revenue up 17% and Adjusted EBITDA up 16%. The key 
strategic focus areas of the business are to increase  
the penetration of Guarantee Inspection, Dealer Direct  
and Home Delivery products and the business has been 
successful in growing all three of these in the last  
twelve months. 

In the US, we have delivered excellent constant currency 
revenue and Adjusted EBITDA growth of 11% and 16% 
respectively. This reflects a very strong performance in  
RVs, a good and improving result in Powersports and flat 
growth in Trucks due to ongoing inventory issues. There is 
significant upside potential for the business, particularly 
under 100% carsales ownership moving forward. 

In Brazil, the business has performed very strongly over  
the last twelve months and has increased its market 
leadership and grown its number of dealer customers.  
The business has executed a regional expansion program 
which will grow the brand in regions outside of Sao Paulo 
and Rio de Janeiro where the webmotors brand has not 
been as strong over the coming financial year. There is 
significant long term financial upside if we execute this  
plan well. 

In Chile, business conditions and financial performance 
have started to improve with inventory growing strongly. 
Mexico remains challenging with new car sales and 
inventory levels still remaining suppressed.

Financial Performance and Capital 
Management 
The Group’s results reflect the strength of our business 
model and core value proposition. The Group delivered 
excellent growth across our three primary financial metrics 
of Adjusted Revenue, Adjusted EBITDA and Adjusted NPAT, 
demonstrating the continued strength of our Australian 
and International businesses. FY22 Adjusted Revenue was 
up 16% on pcp to $510m, driven by solid performance  
in our Australian business and excellent growth in our 
International businesses. Adjusted Earnings Before Interest, 
Tax, Depreciation and Amortisation (EBITDA) was up  
7% to $272m with EBITDA margins of 53%. The earnings 
performance reflects the ongoing strength of our business 
model as the company continues to utilise its operating 
leverage and exercise strong cost discipline, whilst 
continuing to invest in key growth projects. 

Adjusted Net Profit After Tax (NPAT) increased 27%  
to $195m driven by our EBITDA growth and the profit 
contribution from our 49% ownership of Trader Interactive. 
The Board has declared a final FY22 dividend of 24.5c per 
share bringing total dividends paid to shareholders for 
FY22 to 50.0c per share for the year.

From a balance sheet perspective, the Trader Interactive 
acquisition will be partly funded by replacing debt at the 
Trader Interactive level with debt at the carsales level. We 
are looking to increase our facility size from $900m to 
$1,400m which provides us with ongoing funding flexibility 
post completion of the acquisition. We expect to maintain  
a strong balance sheet post acquisition with leverage of 
approximately 2.7x net debt to EBITDA. We will also retain 
our existing dividend payout policy of 80% of Adjusted NPAT. 

Operational Highlights
Australia
Growth has accelerated in our Australian business which  
is predicated on our ability to continuously innovate and 
deliver product improvements for consumers, dealers and 
manufacturers.

A good illustration of this is the continued development, 
enhancement and growth of our private seller value 
proposition through the traditional private sell process  
as a well as our ‘Instant Offer’ selling option for consumers. 
Volumes have grown strongly in each of these areas, with 
units sold increasing by more than 16% in FY22, a result  
of continued user improvements, a strong trust and safety 
environment, enhancements to our pricing engine, adding 
more dealers to the Instant Offer platform, expanding  
the range of cars covered by Instant Offer and developing 
consumer awareness through our recent advertising 
campaigns. We only see continued upside potential over 
the next few years for this area of our business, particularly 
given it is digitising the sale of vehicles which is becoming 
increasingly attractive for consumers. 

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carsales Annual Report 2022Our people 
Our success is directly attributable to the capability,  
loyalty and culture of our team. I am proud that our people 
continue to remain highly engaged, showing resilience and 
determination in what has been another challenging year.

In a highly competitive talent market, we have remained 
focused on retaining our incredibly talented people as well 
as continuing to attract new talent to support our growth.

As a business we have always prided ourselves on our 
inclusive work environment. This has enabled us to 
successfully introduce a new way of working this year, 
providing our people the autonomy to choose where they 
do their best work – office, hybrid or anywhere. This 
approach has seen many added benefits for our people 
and the business, including providing us access to even 
wider and more diversified talent pools outside of our 
traditional office locations. 

A few highlights from the last year include: 

on climate change and this year we achieved carbon 
neutral status in our Australian business operations.  
Our focus now turns to achieving this in our international 
businesses as well as providing the best available 
information for our consumers to make environmentally 
friendly vehicle purchases, to support Australia’s transition 
to an electric vehicle future. 

The Audit Committee has overseen the competitive tender 
for carsales’ external auditor and has reappointed PwC.  
The Board Risk Committee continues to focus on identifying 
and monitoring our key risks as a business. As an online  
vertical marketplace business, cybersecurity and protecting 
customer and consumer data are critical focus areas for 
carsales. We continue to invest heavily in our security 
infrastructure to ensure the integrity of our customer  
data and provide policies, training and education to our 
employees on responsible data use and cyber security.  
We cannot become complacent in this area and will 
continue to invest to ensure we keep pace with the 
changing risk management and security landscape.

•  Being recognised as a Great Place to Work® for the fifth 

consecutive year;

•  Maintaining our Workplace Gender Equality Agency 

(WGEA) Employer of Choice for an eighth consecutive year 
and becoming a certified Family Inclusive Workplace™;

•  Being named as an Australian Association of Graduate 

Employers (AAGE) Top Graduate Employer; and

•  Achieving a 6% uplift in overall employee engagement  

in our 2022 employee opinion survey. 

Towards a successful FY23
We are incredibly proud of our achievements in FY22 and 
even more excited about the year ahead as we move to 
100% ownership of Trader Interactive. Thank you to our 
wonderful carsales people who are responsible for all  
we have achieved in the last twelve months. And finally,  
on behalf of the board, thank you to our customers and 
shareholders for their continued support and we look 
forward to working with you all in FY23. 

Governance 
Environmental, Social and Governance (‘ESG’) issues are 
rightly taking a more prominent role in the corporate  
world and community more broadly. We take these matters 
very seriously and as a result have recently established  
a new Sustainability Board Sub-Committee to oversee the  
Group’s ESG strategy. We are dedicated to building an 
environmentally friendly business that has a strong social 
conscience. We are focused on reducing carsales’ impact 

Pat O’Sullivan 
Non-Executive Chair 

Cameron McIntyre 
Managing Director and CEO

We are dedicated 
to building an 
environmentally 
friendly business that 
has a strong social 
conscience.

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carsales Annual Report 2022 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
WHAT WE DO

carsales.com Ltd is the #1 online automotive marketplace business in Australia with a growing global presence in Asia and 
the Americas. carsales.com Ltd also operates a number of market leading websites in non-automotive verticals including 
motorcycles, boats, caravans, trucks and heavy machinery.

Our aim is to make buying and selling vehicles a great experience. We achieve this by leveraging our consumer  
audience and technology platform to bring together dealers, consumers and Original Equipment Manufacturers  
(OEMs) in one environment. 

OUR MARKETS

carsales built its name in Australia but over the last 10 years we have increasingly become a global player. Our global 
markets have a combined population of 750 million people and car sales volumes of approximately 25 million per annum. 
The markets we have entered have been carefully selected based on criteria including macroeconomic attractiveness, 
digital maturity and market dynamics. We leverage our world-class technology and intellectual property to accelerate  
the growth in these businesses and have a strong track record of delivery. 

Our recent acquisition of Trader Interactive, has allowed us to deepen our exposure to the very attractive non-automotive 
vehicle markets in the US including caravans, powersports, trucks and commercial equipment. 

Expected completion 
Sep 2022

8

carsales Annual Report 2022OUR AUSTRALIAN BUSINESS

In Australia, we are market leaders in online classifieds in a number of industries including cars, motorbikes, boats, 
trucks and commercial equipment.

Our ecosystem

Dealers

>6K dealers

Sell direct 
to dealer

Technology platform 
for dealers

Consumer  
enquiries

>1m ads/year

Our classifieds websites

Instant Offer

>500K ads/year

20bn+ ad impressions

Sell

28m visits/month

>100 advertisers

Consumers

OEMs

Buy

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURES 
 
 
 
 
 
 
 
 
 
 
OUR AUSTRALIAN BUSINESS CONTINUED

Dealers

DEALER BUSINESS
Our dealers are key stakeholders and a critical part of carsales’ success. Our more than  
6,000 dealers advertise over 1 million new and used vehicles per year on which they receive  
over 3 million enquiries from consumers. 

Our proprietary inventory and lead management technology platform, called AutoGate, allows 
dealers to: 

•  manage, publish and promote inventory items to our network of websites; 

•  receive and manage enquiries from consumers; and

•  analyse and understand their market by accessing digital insights and reporting from carsales.

Our dealer community

Value-added  
Services

•  Pricing and valuation tools
•  Photography
•  Web Services

> 6,000 
dealers

Inventory  
Promotion

•  Depth (ranking)
•  Media solutions
•  Main Event

> 1m items 
published 
annually

> 3m customer 
enquiries sent  
to Autogate

> 28m website visits / month

10

carsales Annual Report 2022Consumers

PRIVATE BUSINESS
Approximately 5 million consumers visit our network of websites every month – that’s  
~20% of the Australian population! We aim to make buying and selling a great experience  
for our consumers. 

A private seller on carsales can choose to run the sales process by themselves, utilising our 
suite of value-added tools including pricing analysis and vehicle inspections. Alternatively,  
they can sell directly to dealers through our Instant Offer program which facilitates a quick  
sale at a transparent price.

Our private seller platform

Post an ad

Hide your  
personal number 
from buyers

Tools to help  
you price your  
car to sell

Get car information  
you won’t find 
anywhere else

Build buyer 
confidence with a 
vehicle inspection

OR

Instant Offer

We sell it for you

If you don’t have the time to sell your car, we can sell it fast for you.
We price the car, our dealer network buys it.

Get your price

We collect the car

Get paid fast

Enter in your details and answer  
a few questions to get your  
official Instant Offer

You can drop off your car  
for free or we’ll pick it  
up for you

Payment is made the  
next business day,  
once the car is collected

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURES 
 
 
 
 
 
 
 
 
  
 
 
 
OUR AUSTRALIAN BUSINESS CONTINUED

OEMs

MEDIA BUSINESS
The quality and quantity of our audience has made carsales the number one destination to buy  
new and used cars. 

We help our 100+ OEMs to achieve their goals by ensuring they’re reaching consumers at each  
stage of the vehicle buying journey. We do this by leveraging our editorial program, our online  
new car showroom as well as specialised audience targeting in our listings environment.

Our media offering

Building Brand   
Awareness

Gaining 
Consideration

Converting   
Into   
Buyers

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Homepage buyout

Model showcase

New car showroom

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AUSTRALIAN HIGHLIGHTS

Multiple Domestic Growth Opportunities

Marketplaces

Dynamic Pricing

carsales has extended its lead as the most 
preferred website to buy and sell cars  
in Australia.

Our dynamic pricing strategy aims to better align 
the price charged with value delivered. This has 
enabled us to charge more for higher priced  
cars where the value we deliver is very strong, 
resulting in a significant uplift in private ad yield.

Most Preferred Website1

Private Ad Yield ($)

#2

carsales

40%

31%

2.6x

12%

6.7x

6%

145

125

105

85

65

45

25

FY21

FY22

FY16

FY17

FY18

FY19

FY20

FY21

FY22

Media & Membership

Dealer Finance

We are executing on our strategy to diversify our 
media customer base and improve our mobile 
and native advertising products.

Helping dealers to increase their finance 
penetration through integrated finance 
placements on carsales is a key priority.

Media Revenue ($m)

Dealer Finance Listings

29

26

23

24

21

H2 FY20

H1 FY21

H2 FY21

H1 FY22

H2 FY22

H1 FY21

H2 FY21

H1 FY22

H2 FY22

1.  Study conducted by independent research agency, Nature Pty Ltd, “market brand health tracker June 2022”. If you had to choose one tomorrow, 

which one would you most prefer for buying or selling a new / used car?

13

carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURES 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
AUSTRALIAN HIGHLIGHTS CONTINUED

•  Demand for a fully online buying experience is increasing and in response we launched online buying service  

‘carsales Select’ in August 2021

•  More than 2,000 cars are currently listed on the Select platform and time to sell is approximately 2x faster  

than a standard listing

•  Trade-in pricing has now been integrated into Select and dealer finance is being integrated now

Pre-negotiated 
price

Certified 
inspection report

Instantly  
reserve online

7-day money-back 
guarantee

3-month limited 
warranty

Using carsales’ pricing 
algorithm to ensure 
pricing is competitive

Car accompanied by 
Inspection & Facts+ 
Report and  
imperfection photos

carsales holds 
refundable 
reservation fee and 
listing is de-listed

Instils confidence 
by replicating test 
drive experience

Showcase dealer 
statutory 
warranties 

Ref:DSH352004

Dealer inspection report
Date completed: 02/03/2021

$60,990

$3,510

Dealer Demo
WA - Distance from me?

$60,990

$3,510

$60,990

$3,510

$60,990

$3,510

Dealer Demo
WA - Distance from me?

Dealer Demo
WA - Distance from me?

Dealer Demo
WA - Distance from me?

Money back guarantee

Money back guarantee

Money back guarantee

Money back guarantee

•  Instant Offer provides a fast, convenient and transparent way for people to sell their car. Consumers can sell their car 

quickly at a price offered by carsales, and drop-off at one of our participating dealers

•  FY22 transaction volume grew 19% vs pcp, and we released our new pricing engine which allows broader and more 

accurate pricing of cars, improving conversion

Key Sales Funnel Steps

Growth Drivers

FY22 Quarterly volumes

Consumer 
acquisition 
to offer

Increase volume: Improve brand 
awareness through above the line 
advertising to target a broader 
audience

Offer to 
acceptance

Improve pricing model: Evolve 
our machine learning capability to 
optimise our pricing engine

Acceptance  
to sale

Dealer Experience: Manage  
the Net Promoter Score (NPS)  
of dealers to ensure consumers  
are satisfied at the dealership

14

Q1 FY22

Q2 FY22

Q3 FY22

Q4 FY22

carsales Annual Report 2022Demand for a fully online buying experience  
is increasing and in response we launched  
our online buying service ‘carsales Select’  
in August 2021

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURES 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
INTERNATIONAL BUSINESSES

We have an international portfolio of market-leading, fast-growing businesses 
that present a significant long-term growth opportunity.

•  Market leading platform of non-automotive 
marketplaces across RV, powersports, truck 
and equipment industries in the US

•  Clear market leader in automotive classifieds 
in South Korea with a strong track record of 
growth over the last 7 years

•  Non-automotive classifieds are less digitally 

•  Strategy is to increase the penetration of 

mature than automotive markets, meaning the 
business is well positioned to capture upside 
from further dealer penetration, monetisation 
and synergies across its key verticals

premium services for dealers, consumers  
and OEMs. Key growth drivers include 
Guaranteed inspection, Dealer Direct  
and Home Delivery products

14m

763k

23m

152k

Monthly visits

Published inventory

Monthly visits

Published inventory

•  No.1 position in the large Brazil automotive 

•  Chileautos is a profitable and strong  

market, with very strong growth over  
the last 4 years since the major recession  
in Brazil ended

•  Substantial growth opportunity given the size 
and immaturity of the market. Key growth 
drivers include increased dealer and consumer 
penetration particularly in areas outside  
Sao Paulo and Rio. Dealer Finance is also  
a significant revenue opportunity

number one player in the Chile market with  
a strong growth trajectory through increased 
penetration and monetisation of dealers

•  Mexico is an earlier stage investment.  
The focus is to grow market leadership

28m

407k

8m

133k

Monthly visits

Published inventory

Monthly visits

Published inventory

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carsales Annual Report 2022INTERNATIONAL HIGHLIGHTS

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In June 2022, we exercised the call option over the remaining 51% stake  
in Trader Interactive with completion expected in late Q1/early Q2 of FY23

FY22 key highlights
•  Excellent financial performance with constant  

currency Adjusted Revenue and EBITDA up 11% and  
16% respectively 

•  Good progress in enhancing our technology and product 
capability, highlighted by the launch of an end-to-end 
digital retailing product on cycletrader.com

•  Grown our audience market leadership position in RVs 

•  Increased our customer base by 7% and improving 

and Powersports and strong progress in closing the gap 
in our Commercial verticals

inventory levels 

Published Inventory (000)1

Subscribed Dealers (000)

500

400

300

200

100

0

3.5

3.0

2.5

2.0

1.5

1.0

0.5

0.0

RV

Power Sports

Trucks

Equipment

RV

Power Sports

Trucks

Equipment

Jun-21

Jun-22

Jun-21

Jun-22

1.   Monthly Unique Listings

17

carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSDIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
 
 
 
 
 
 
 
 
 
INTERNATIONAL HIGHLIGHTS CONTINUED

Excellent FY22 performance, achieving double-digit revenue growth and 
continued expansion of key products and services

FY22 key highlights
•  Good growth in our consumer audience

•  Digital trade in product, Dealer Direct, continued to grow 

strongly supported by a growing number of  buyers  
and sellers

•  Excellent growth in the number of cars inspected through 

our “Guarantee” inspection program 

Visits (m)

Dealer Direct Volume

Guarantee Inspection Penetration

+5%

+56%

+12%

50%

40%

30%

20%

10%

0%

FY21

FY22

Jun-21

Jun-22

Jun-21

Jun-22

300

250

200

150

100

50

0

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carsales Annual Report 2022I

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webmotors’ growth accelerated in FY22 driven by the continued enhancement  
of our consumer and dealer value proposition

FY22 key highlights
•  Inventory and dealer volumes increased significantly with 
private volumes doubling and dealer volumes up 30% vs. 
pcp. Regional expansion plan continued successfully with 
~750 new dealers signed. Total subscribed dealers are 
approximately 18,000

•  Excellent growth in our value added CRM and  

training products

•  Increased monetisation with revenue per dealer  

up 28% vs. pcp, with increasing contribution  
from listing depth products which is becoming  
a material contributor

Inventory (000)

Dealer Yield

Subscribed Dealers (000)

500

400

300

200

100

0

+39%

+28%

+4%

20

15

10

5

0

FY21

FY22

FY21

FY22

Jun-21

Jun-22

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
OUR PEOPLE. OUR CULTURE.

269

1001

people joined the  
carsales group

graduate program 
applications

91%

50%

of our people would 
recommend carsales  
a great place to work

of promotions and internal 
appointments went to 
female team members

93%

138

of our people feel 
genuinely supported 
to make use of flexible 
working arrangements

mentors and mentees 
across two Mentor 
Program intakes

3,125 hours

of formalised training sessions and professional 
development workshops delivered to

2,191 attendees globally

300

AI 
Hackathon

Over 300 #wearecarsales 
Award nominations across 
the carsales group

 203 participants, 
18 projects

20

carsales Annual Report 2022Things that make us incredibly proud
Over the past year, we have worked hard to deliver  
on our goal of being a destination for talent by continuing 
to attract and retain incredible people. We have been:

•  Great Place to Work® certified for five consecutive years;

•  A Workplace Gender Equality Agency (WGEA) Employer of 
Choice and certified Breastfeeding Friendly Workplace for 
eight consecutive years;

•  An Australian Association of Graduate Employers (AAGE) 
Top Graduate Employer in 2019, 2020 and 2022; and

•  Most recently we became a Family Inclusive Workplace™ 
and were named on the 2022 AAGE Top Intern Programs 
list, placing 5th across all of Australia. 

Additionally, our Australian business operations were 
recently certified carbon neutral under the Australian 
Government’s carbon-neutral certification program  
Climate Active.

Many of these accolades have been achieved through  
our people being surveyed and sharing their experiences  
of working at carsales, which makes them particularly 
meaningful.

Be a big part of something big 
One of the best things about carsales is that our people get 
to be a big part of something big. We may be a global 
ASX100 business, but we’re still small enough for everyone 
to be heard, work on projects with meaning and make real 
impact. Our uniqueness comes from having the rare 
combination of being able to provide all the benefits of a 
big tech company – being growth, security and resource – 
coupled with the feeling of a small organisation, which gives 
agility, opportunity and autonomy to our people. Our 
openness to new thinking coupled with our flat structure 
and accessible leadership team means that every good idea 
can become a reality. 

For the past 25 years we’ve backed our people to make 
new ideas happen and have created an environment in 
which every team member has the chance to do work that 
delivers significant customer value. We aim to provide our 
people with a dynamic workplace experience which 
transcends a mere list of perks and benefits.

This, in conjunction with our caring and inclusive culture,  
is what we believe sets us apart and makes us a great  
place to work. Whether we are talking about our people, 

our customers or our community, the initiatives and 
programs that we run considers whether what we are 
doing is going to be equally accessible to all. Why do  
we do it? Not only is it the right thing to do, but we know 
that if our team feels cared for and a sense of belonging, 
then so will our customers.

Autonomy to choose
One of our key learnings from the COVID-19 pandemic  
was that our people can work from anywhere successfully 
- which is why we now give our Australian and New Zealand 
team members the autonomy to choose their working 
location. Our people have three working options:

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSDIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
 
OUR PEOPLE. OUR CULTURE. CONTINUED

We believe in creating a culture where our people can do 
their best work, irrespective of their physical location. We 
recognise that some of us do our best work in an office 
setting, and some of us work best from somewhere else. 
The reason Autonomy to Choose works for us is because  
of the trust that we have in one another. 

To ensure that we can still nurture the human connection 
that we all care about so much, we bring our whole team 
together in-person at various points throughout the  
year for companywide events. These events are a great 
opportunity to collaborate and learn from each other, 
foster team connection, and get together for some relaxed, 
social fun. 

An added benefit of Autonomy to Choose is that because 
there is no longer a requirement to work from an office,  
our team members have the opportunity to work from 
overseas for periods of time. This is particularly beneficial  
to those who have family living overseas. We’ve also seen 
some team members permanently relocate regionally and 
interstate, and it’s opened up our ability to hire incredible 
talent outside of the cities where our offices are located. 

The response from our team since implementing Autonomy 
to Choose has been overwhelmingly positive. In our March 
2022 Employee Opinion Survey, we saw a 6% uplift in our 
overall engagement score. Other highlights included:

•  “I would recommend carsales as a great place to work” 

91% favourable response (+7% YoY) 

•  “We are genuinely supported if we choose to make use of 
flexible working arrangements” 93% favourable response 
(+13% YoY) 

•  “We have enough autonomy to perform our jobs 
effectively” 92% favourable response (+7% YoY)

22

As we move forward as a team – whether we work together 
in-person, virtually or a mix of both – we know that it’s 
crucial that we’re mindful of others and continue to be 
inclusive of everyone, no matter where they choose to  
work from. To support our leaders through this transition 
and ensure we reset as we move forward, our people 
managers have been undertaking a bespoke training 
program called Leading for Inclusion and Belonging. This 
training addresses how we can continue to foster a sense 
of inclusion and belonging in geographically dispersed 
teams and helps our leaders think about how their 
leadership style may need to adapt to ensure that our 
teams continue to perform at their full potential. 

Investment in our people
This year, we were proud to introduce an Employee Share 
Plan (ESP) for all permanent Australian team members.  
We want our people to be able to share in the success and 
growth of carsales. Our ESP is a matched plan which allows 
team members the opportunity to sacrifice pre-tax salary to 
purchase carsales shares, and this investment is matched 
by the company. 63% of eligible team members opted into 
our ESP in year one. This result shows us that our people 
believe in our business and what we are collectively  
working towards.

In early 2022 we welcomed our fifth cohort of Technology 
graduates into the business, and we were recognised  
as a Top Graduate Employer for the third time by the 
Australian Association of Graduate Employers. Our 
program gives graduates broad carsales experience  
and provides formal mentoring and support from our 
talented leaders who are passionate about investing in 
their development. We were also pleased to see all our 
2021 graduates be offered permanent roles within carsales 
at the conclusion of their 18-month graduate program.

carsales Annual Report 2022product innovation for our customers is another  
reason why they are so important to us.

We have continued to embed our behaviours into 
everything we do through the #wearecarsales Awards. 
These quarterly awards are peer nominated and designed 
to recognise those living our carsales behaviours and 
bringing them to life. Throughout the year we received  
over 300 nominations across the carsales group and 
celebrated 20 worthy winners – five per quarter. 

In 2022, we announced three members of the carsales 
team as recipients of our annual CEO Scholarship – two 
from Australia and one from Chile. The CEO scholarship  
is open to all team members globally and is an opportunity 
to receive a grant to complete a further education or 
learning opportunity of their choice. This year’s winners  
will be undertaking a wide range of learning opportunities 
including Graduate Certificates in Marketing, Professional 
Certificates in Digital Transformation and courses in Design 
Strategy and Service Futures.

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As we continue to operate in a tight talent market, we 
explore new and alternate pathways to attract highly 
talented individuals to carsales. One of the ways in which 
we are fostering a pipeline of digital talent is through 
internships – both at the early and mid-career level.  
This year we welcomed 13 interns through three  
different programs:

•  The Victorian Government’s Digital Jobs program  
– which aims to build the state’s digital workforce  
by training and upskilling mid-career Victorians  
so they can transition into digital careers;

•  CareerSeekers - a non-profit organisation supporting 

refugees and asylum seekers, who are either mid-career 
or university students, to transition into professional 
careers in Australia; and

•  The Monash University Industry Based Learning (IBL) 
program - providing undergraduate IT students with  
work opportunities in a corporate setting, allowing  
them to develop sought-after employability skills.

Of the interns who have completed their internships 
to-date, 100% have resulted in permanent employment 
opportunities within carsales. This demonstrates that 
investing in internships is proving to be a successful  
talent pathway for us. We were also thrilled to learn that 
carsales was named on the 2022 Australian Association  
of Graduates Employers Top Intern Programs list, placing  
in the top five employers across Australia.

Our annual hackathon this year was AI themed with 203 
team members across the globe working on 18 different 
projects. We’re passionate about hackathons because  
they bring our people together to collaborate, invent, 
innovate, experiment with new ideas and learn.  
Seeing many hackathon ideas develop into tangible  

The Victorian Digital Jobs Program gave me the opportunity to pivot my career, explore and 
deep dive into the world of Tech and Product Management. Securing a Product Management 
internship with carsales is a greatly desired position to be in, and I feel so fortunate to be 
here. As soon as I joined I felt welcomed and part of the carsales family, and have been  
well supported in my career journey thus far. Working within the Retail team helped setup  
a strong foundation of knowledge and experience, and I was able to explore the many facets 
of Product Management. It felt great adding value and contributing to projects, even at this 
early stage of my new career path. To my delight I was offered a permanent position and  
look forward to continually learning and developing my career within the Dealer tribe with 
such skilled and wonderful group of people.

— Rose Peart, Associate Product Manager

23

carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSDIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
 
OUR PEOPLE. OUR CULTURE. CONTINUED

Women in Tech
Our Women in Tech group is made up of females  
across the carsales group in technical, non-technical 
and general business roles. The group has gone from 
strength to strength with the introduction of our  
new Women on the Move program. The goal of this  
program is to provide practial skills development 
workshops covering personal brand, career goal  
setting, optimising strengths, communicating with 
assertiveness, generating influence, and building 
networks and visibility. 

The Women in Tech group has also attended external 
events such as the recent Girls In Tech conference  
and we have re-signed as a sponsor of the Go Girl  
Go For IT conference – a free one-day technology 
conference for girls in years 5-12 across Australia.  
We look forward to continuing to support initiatives 
such as these which aim to encourage students to 
pursue a career in technology.

Diversity, Equity and Inclusion
We continue to foster a workplace that values diversity, 
equity and inclusion and are proud to have scored a 95% 
favourable response to the Diversity statements posed in 
our March 2022 engagement survey. In 2022 we were 
awarded the WGEA Employer of Choice citation for a 
further two years. We have been awarded the citation every 
year since 2015 and are one of only 120 organisations in 
Australia to hold it at present. Our CEO, Cameron McIntyre, 
has continued to lead our efforts in this space as a WGEA 
Pay Equity Ambassador and board member for Inclusive 
Australia. We are also proud to have maintained 40% 
female representation at the Australian Senior Leadership 
Team level.

In addition, we remain a Best Practice Breastfeeding 
Friendly Workplace and a business that is inclusive  
and welcoming of the LGBTIQA+ community via the 

Welcome Here Project. We have continued to celebrate 
important events such as International Women’s Day  
and International Day Against Homophobia, Biphobia, 
Interphobia and Transphobia with guest speakers who 
inspire and educate our people.

This year, we also became a certified Family Inclusive 
Workplace™ for the first time. Family Friendly Workplaces™ 
is a partnership between Parents At Work and UNICEF 
Australia to improve work life wellbeing, inclusion and 
equity outcomes for families by introducing a set of six 
certifiable standards for employers. Our certification 
submission outperformed the cohort in five of the six 
standards. Achieving this accolade recognises that our 
policies, practices, guidelines, leadership and culture 
support our people regardless of what stage of life they  
are at in their family. We are thrilled to be one of the first 
70 organisations to be certified as a Family Inclusive 
Workplace™ in Australia.

24

carsales Annual Report 2022Climate Active certified

This year, our Australian business operations were  
certified carbon neutral under the Australian Government’s 
carbon-neutral certification program Climate Active. Climate 
Active curates what is considered one of the world’s most  
rigorous carbon neutrality certifications programs and  
this achievement solidifies our commitment to minimising 
environmental impact, reducing emissions, and 
championing positive climate action.

We achieved carbon neutrality by offsetting 100% of our 
Australian carbon emissions by investing in four important 
carbon offset projects. As a global business, our approach 
to carbon offsetting is to support a mix of community, 
conservation, and renewable energy projects both locally 
and internationally. In Australia, it was important for 
carsales to align with a project that provides environmental, 
cultural, economic and social benefits to the Traditional 
Custodians of our lands - the Aboriginal and Torres Strait 
Islander communities. The Karlantijpa North Savanna 
Burning project does just this by combining traditional 
knowledge with innovative techniques to reduce emissions 
associated with savanna fires.

Overseas, we have invested in two conservation projects 
being NIHT Topaiyo REDD+ and Pacajai REDD+. The former 
conserves endangered tropical rainforests in Papua  
New Guinea, which is Australia’s closest neighbour and  
a country with whom Australia shares a rich history and 
strong bilateral relationship. The latter is helping to reduce 
deforestation in the Amazonian rainforests of Brazil.  
Brazil is a country that we have had close ties to since  
2013 when we acquired a 30% stake in webmotors.  
From a renewable energy perspective, we have invested  
in the Midilli Hydroelectric Power Plan in Turkey. This 
project demonstrates our commitment to supporting  
low emission electricity generation. This is important  
to us given the continued rise of electric, hybrid and low  
emission vehicle sales around the globe and the role that 
we play in partnering with manufacturers, dealers and 
consumers as this transformation takes place.

We are taking a number of steps towards reducing 
emissions, which includes developing a detailed emissions 
reduction strategy with time-bound targets. Our head office 
building in Melbourne is also certified carbon neutral 
through the National Australian Built Environment Rating 
System (NABERS). We continue to work with our building 
owners and landlords around Australia to explore ways that 
we can continue to reduce our energy consumption and 
waste impact. We also intend to be strategic when looking 
at any future tenancies in terms of their location and 
proximity to public transport and ensuring they have  
high NABERS base building ratings.

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Commmunity
We are proud to have continued our partnership with  
CS in Schools for a third consecutive year. CS in School’s 
mission is to create sustainable change in Australian digital 
technical education by providing a complete DigiTech 
pathway for secondary students and developing teacher 
confidence in relation to delivering digital technology 
classes. Our team enjoy volunteering their time to support 
this cause, and we were thrilled to be recognised by CS  
in Schools at their 2021 awards night as their Supporter  
of the Year.

We have also continued to mentor students via the Monash 
Postgraduate Industry Experience mentoring program,  
and this year for the first time have supported headspace’s 
Work and Study support program. headspace provides 
early intervention mental health services to 12-25 year-olds, 
and we have volunteered our time by participating in mock 
interviews with their clients who are being supported to 
find employment opportunities.

Our partnership with Swinburne University has also 
continued through our sponsorship of a second female 
student to undertake a degree in Computer Science and 
Information Technology at Swinburne University through 
our carsales Foundation Women in IT scholarship. Similarly, 
our partnership with The Smith Family has continued and 
we have sponsored seven school children around Australia 
through the Learning for Life program and raised much 
needed funds for their Christmas Appeal.

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSDIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
 
DIRECTORS’ REPORT

Your Directors present their report  
on the consolidated entity (referred  
to hereafter as the Group or carsales) 
consisting of carsales.com Ltd and  
the entities it controlled at the  
end of, or during, the year ended  
30 June 2022 (FY22).

Operational and Financial Review
Principal Activities
carsales is the leading digital automotive and non-
automotive vehicle marketplace in Australia, with a  
growing global presence in Asia, Latin America and  
North America. We are the go-to place to buy and  
sell cars, bikes, boats, trucks, caravans and much more 
across our network of sites. 

Our key services, customers and geographies for 
continuing operations include: 

Online Advertising Services
carsales’ Online Advertising Services can be broken into  
two key product sets – classified advertising and display 
advertising services. 

•  Classified advertising allows our private and dealer 

customers to advertise automotive and non-automotive 
goods and services for sale across the carsales network. 
This segment includes products such as subscriptions, 
lead fees, listing fees and priority placement services 
(depth products). 

•  Display advertising involves carsales’ corporate 
customers, such as automotive manufacturers  
and finance companies, placing display advertising  
for their brand or vehicle on carsales’ websites.  
These advertisements typically display the product or 
service offerings of the corporate advertiser as banner 
advertisements, video content or other sponsored links. 

Data, Research and Services
This segment comprises a diverse range of solutions for 
our customers including software as a service, research 
and reporting, valuations, appraisals, website development 
and hosting and photography services.

International
carsales has multiple operations in overseas countries 
through subsidiaries, equity accounted associate 
investments and available-for-sale financial assets  
as set out below (subsidiaries unless otherwise stated):

carsales Asia
•  South Korea – Encar.com. This is our major business  
in this segment. Encar.com is the market leading  
digital automotive classified business in South Korea 
(100% owned).

•  Redbook Asia – provides automotive data services  

in New Zealand, Malaysia, Thailand and China. 

carsales Americas
carsales operates digital non-automotive marketplaces  
in the United States and Canada through its subsidiary 
Trader Interactive. carsales owned 49% of Trader Interactive 
during FY22 but has recently exercised a call option to 
acquire the remaining 51% which will complete in late Q1/
early Q2 of FY23. carsales also operates digital automotive 
marketplaces in Brazil, Mexico and Chile. carsales owns 30% 
of webmotors S.A., our operating entity in Brazil and equity 
accounts this interest accordingly. carsales owns 100% of its 
operating entities in Mexico and Chile. 

carsales Investments 
This segment comprises our standalone investments in the 
consumer and wholesale tyre markets, vehicle inspections 
and mobility as a service. The subsidiaries included in this 
segment are tyresales.com.au, tyreconnect, Redbook 
Inspect and Placie. 

In addition the Group has investment stakes in Plenti Ltd, 
PromisePay Pte Ltd and MX51 Pty Ltd, all of which are 
accounted for as financial asset investments. These three 
businesses provide innovative fintech products to 
consumer and commercial customers.

carsales is the leading digital automotive 
and non-automotive vehicle marketplace in 
Australia, with a growing global presence in 
Asia, Latin America and North America.

26

carsales Annual Report 2022Review of Results and Operations

$A Millions

Growth

Adjusted Revenue

Total operating expenses

Adjusted EBITDA

EBITDA margin

Depreciation & amortisation

EBIT

Net finance costs

Profit Before Tax

Income tax expense

Profits from associates

Fair Value Revaluation

Non-controlling interests (NCI)

Adjusted NPAT

Adjusted Earnings per share (cents)

Final Dividend per share (cents)

Summary of Reported Results 

Reported Revenue 

Reported EBITDA 

Reported NPAT

Reported Earnings per share (cents)

FY21

437.8

183.6

254.2

58%

31.9

222.3

13.9

208.4

59.4

4.3

-

(0.5)

152.8

61.5

22.5

427.2

241.5

130.7

52.6

FY22

509.5

237.8

271.7

53%

38.6

233.1

13.8

219.3

64.1

40.0

0.2

(0.6)

194.8

69.0

24.5

509.1

269.9

160.8

56.9

$'s

71.7

(54.2)

17.5

-

(6.7)

10.8

0.1

10.9

(4.7)

35.7

0.2

(0.1)

42.0

7.4

2.0

81.9

28.4

30.1

4.3

%

16%

(30%)

7%

-

(21%)

5%

1%

5%

(8%)

826%

-

(26%)

27%

12%

9%

19%

12%

23%

8%

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Financial Summary
In FY22, the Group achieved Reported Revenue growth  
of 19%, Reported EBITDA growth of 12% and Reported  
Net Profit After Tax (Reported NPAT) growth of 23% 
compared to the year ended 30 June 2021 (FY21 or  
the prior comparative period (pcp)). In FY22, the Group 
achieved Adjusted Revenue growth of 16%, Adjusted 
EBITDA growth of 7% and Adjusted Net Profit After  
Tax (Adjusted NPAT) growth of 27% compared to FY21. 

The Directors believe the additional information on 
International Financial Reporting Standards (IFRS)  
measures included in this report is relevant and useful  
in measuring the financial performance of the Group.  
In particular, the presentation of  ‘Adjusted Revenue’,  
‘Adjusted EBITDA’, ‘Adjusted NPAT’ and ‘Adjusted earnings 
per share’ provides the best measure to assess the 

performance of the Group by excluding certain non-
recurring or non-cash items relating to rebates, M&A  
costs, restructuring, financing, investments and acquired 
intangible amortisation from the reported IFRS measures.  
A reconciliation of reported net profit to adjusted net profit 
is set out in Note 4(b).

Key drivers

Adjusted Revenue growth of 16% reflects the continued 
strength of the Group’s operating model through all 
economic environments. Adjusted EBITDA growth of 7% 
reflects this excellent revenue performance combined with 
a good balance of investing in key strategic growth areas 
while sensibly managing discretionary costs. Adjusted  
NPAT was up 27% which reflects the EBITDA growth  
as well as the contribution from Trader Interactive’s profit 
throughout the year.

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.CORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
DIRECTORS’ REPORT CONTINUED

Adjusted Revenue

Online Advertising

Dealer

Private

Media

Data, Research and Services

Carsales investment

Asia

Americas

Adjusted Revenue

Adjusted EBITDA

Online Advertising

Data, Research and Services

Carsales investment

Asia

Americas

Adjusted EBITDA

EBITDA Margin

Online Advertising Services
•  Overall Adjusted Revenue for the segment was up 11%, 
reflecting excellent growth in our key Dealer, Private and 
Media businesses, recording double digit revenue growth 
in each segment in H2. Adjusted EBITDA growth of 9% 
is lower than revenue growth due to receiving a ~$6m 
wage subsidy via the JobKeeper program in FY21. 
Excluding this impact, margins have grown which  
reflects good cost management whilst continuing to 
invest in key growth projects. 

•  Dealer Adjusted Revenue was up 6% on pcp to $183.8m 
reflecting both solid growth in revenue from traditional 
transactional revenue products (particularly leads), a 
resilient result for premium listing and depth products 
and the growth in our dealer finance product. We have 
continued to provide a compelling return on investment 
for our dealer customers throughout FY22. 

•  Private revenue was up 26% on pcp to $69.4m reflecting 

strong growth in private ad volumes and yield and 
increasing penetration of our Instant Offer product. 

•  Media revenue was up 15% to $54.5m which is testament 
to the execution of our strategy to diversify our product 
and customer portfolio. 

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Segment Review

$A Millions

Growth

FY21

FY22

$’s

276.9

174.1

55.3

47.5

42.8

27.1

84.3

6.7

307.7

183.8

69.4

54.5

44.1

56.5

95.4

6.0

437.8

509.5

182.3

198.4

28.6

1.0

43.1

(0.8)

28.8

(1.9)

48.1

(1.6)

254.2

271.7

30.8

9.7

14.1

7.0

1.3

29.4

11.1

(0.7)

71.7

16.0

0.2

(2.9)

(5.0)

(0.8)

17.5

%

11%

6%

26%

15%

3%

109%

13%

(11%)

16%

9%

1%

(292%)

12%

(100%)

7%

58%

53%

-

(5%)

Data, Research and Services
Data, Research and Services revenue was up 3% to $44.1m, 
reflecting the continued demand for our Data, Research 
and Services from OEMs, dealers and corporate customers. 
There was solid growth from our core Redbook data 
business which continued to grow volume and yield. 
Segment Adjusted EBITDA was up 1% on pcp reflecting 
continued prudent cost management and operating  
cost leverage. 

carsales International 
carsales Asia

carsales Asia revenue was up 13% to $95.4m primarily 
reflecting the performance of the Encar.com business in 
South Korea. Revenue growth in South Korea was driven by 
the increased uptake of the Guarantee vehicle inspection 
service, more vehicles listed on the site and increasing 
penetration of the Dealer Direct (online trade-in) product. 
Lower growth in Adjusted EBITDA of 11% reflects growth in 
underlying margins, offset by brand marketing investment 
in the online trade in market which should deliver long term 
shareholder value. 

carsales Annual Report 2022carsales Americas

The Company holds controlling interests in online 
automotive advertising companies operating in Chile and 
Mexico. Combined constant currency revenue growth of 
7% in the region reflects good growth in Chile offset by 
weakness in Mexico. Revenue growth rates in all countries 
have been impacted by constrained inventory since the 
onset of COVID-19, but there are positive signs of recovery 
in Chile, whilst Mexico remains challenging. Combined 
losses in the region of $1.6m in FY22, reflecting continued 
investment to grow our customers, product and audience. 

The Group holds equity stakes in Trader Interactive  
(49%) and webmotors (30%). These businesses are not 
consolidated for accounting purposes, and accordingly the 
revenue and EBITDA contributions are not included in the 
financial performance above. Nevertheless, we will provide 
some commentary on the underlying performances of the 
businesses as they do materially contribute to our net 

profit results. In June 2022, we announced that we would 
be exercising our call option to acquire the remaining 51% 
of Trader Interactive for US$809m. This will complete in  
late Q1/early Q2 FY23.

Trader Interactive constant currency revenue was up  
11% to $195.5m primarily reflecting the excellent growth  
in dealer volume, dealer yield and private ads. All sites  
are consistently delivering strong audience traffic growth 
on pre-COVID levels. Excellent constant currency growth  
in Adjusted EBITDA of 16% reflects the strong operating 
leverage potential of the business as it continues to  
build scale. 

webmotors recorded strong underlying constant currency 
revenue growth of 26% on pcp reflecting the continued 
expansion of dealer numbers and website traffic as well  
as an increasing contribution from finance revenues. 

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.CORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
CORPORATE
GOVERNANCE

SUSTAINABILITY
REPORT

carsales is committed to being ethical, transparent and 
accountable in everything we do.

At carsales, we take our ability to have a positive impact on 
society extremely seriously.

We believe this is essential for the long-term performance 
and sustainability of our Company and supports the 
interests of our shareholders and other stakeholders.  
The Board of Directors is responsible for ensuring that  
the Company has an appropriate corporate governance 
framework to protect and enhance Company performance 
and build sustainable value for shareholders. 

carsales is pleased that many of its shareholders are 
interested to learn more about the Company’s approach  
to governance, and its social and environmental impact.  
To this end, carsales has published its 2022 Sustainability 
Report, available on our Corporate Governance page of  
our investor website at https://shareholder.carsales.com.
au/governance/. 

This corporate governance framework acknowledges  
the ASX Corporate Governance Council’s Corporate 
Governance Principles and Recommendations (ASX 
Principles and Recommendations) and is designed to 
support our business operations, deliver on our strategy, 
monitor performance and manage risk. Our FY22 
Corporate Governance Statement addresses the 
recommendations contained in the fourth edition  
of the ASX Principles and Recommendations and is 
available on our website at https://shareholder.carsales.
com.au/governance/.

This report outlines the Company’s approach to assessing, 
mitigating and managing a range of social, environmental 
and governance ESG risks, which is overseen by the 
Company’s Board and managed by the carsales’ Executive 
Leadership Team. It provides insight into our unique 
culture, how we attract and retain the very best talent,  
and seek to have a positive impact on our industry and 
community. Finally, while we have a low environmental 
impact as an online business, it addresses the Company’s 
environmental efforts. 

30

carsales Annual Report 2022At carsales, we  
take our ability to  
have a positive impact 
on society extremely 
seriously. carsales is 
pleased that many 
of its shareholders 
are interested to 
learn more about the 
Company’s approach  
to governance, 
and its social and 
environmental impact. 

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.OUR BOARDOUR PEOPLE AND CULTURE CHAIR’S MESSAGEREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
OUR BOARD

Pat is the Chair of the carsales Board of Directors, a position he has held since 2019, having been a Director 
of the Company since 2007. 

Pat is a member of The Institute of Chartered Accountants in Ireland and Australia, and a graduate of the 
Harvard Business School’s Advanced Management Program. 

Pat is currently the Chair of the Board of Technology One Limited and SiteMinder Ltd and a non-executive 
director of The Little Company of Mary Health Care Limited.

Previously Pat was the Chief Operating Officer and Finance Director of Nine Entertainment Co Pty Limited 
(formerly PBL Media Pty Ltd), a position he held from February 2006 until June 2012. He also served as  
a Director and Company Secretary of Nine Entertainment Co Pty Limited and was Chair of Ninemsn.

Patrick O’Sullivan

Non-Executive Chair

Pat brings immense financial, regulatory and governance expertise to the Board, and was the Chair of the 
Audit and Risk Management Committee prior to being appointed as Chair of the Board. Pat also provides 
the Board with valuable insights relating to operations of global companies.

Cameron was appointed Managing Director and CEO of carsales.com Ltd in 2017. Prior to this, 
Cameron held the positions of Chief Operating Officer (from October 2014), and Chief Financial Officer 
and Company Secretary for the previous seven years, including for the IPO of the Company in 2009. 
Cameron has over 29 years’ of finance and operational experience. 

Cameron holds a degree in Economics from La Trobe University, Melbourne, is a graduate of the 
General Management Program at Harvard Business School and is a Fellow Certified Practising 
Accountant (FCPA).

Cameron brings unparalleled knowledge of the business and significant experience in strategy, 
mergers and acquisitions and management to the Board.

Wal has more than 35 years’ experience in supplying computer services to the automotive industry 
and was Chair of the Company’s Board from its inception until August 2015. 

Wal holds a Bachelor of Science degree in Business Administration from the University of Alabama 
(United States). He was recognised with the Medal of the Order of Australia for his services to the 
Australian Automotive Industry in the 2016 Queen’s Birthday Honours.

Wal brings to the Board consummate knowledge of the IT needs of the automotive industry as well  
as his extensive knowledge of the business, having been a driving force from its founding.

Kim has more than 30 years’ of experience as a CEO and senior executive in a range of marketing and 
media companies including Southern Star Entertainment, PBL and Ninemsn and Reading Room Inc 
(bookstr.com) of which she was CEO and founder.

Kim is currently a Non-Executive Director of Invocare Limited, Infomedia Limited, SiteMinder Limited 
and the Sax Institute, a national not-for profit leader in promoting the use of research evidence in 
health policy. She was formerly a Non-Executive Director of Marley Spoon AG and WPP AUNZ until the 
completion of its takeover by WPP PLC in April 2021. She has also served as a Fellow of the University 
of Sydney Senate. 

Kim holds a Bachelor of Arts from the University of Sydney and a Graduate Diploma in Library 
Information Science from UTS. 

Kim provides an abundance of experience and knowledge in the marketing, media and entertainment 
industries. Kim also has extensive experience on ASX listed Boards, including as Chair of Remuneration 
Committees and is the Chair of the Company’s People & Culture Committee. 

Cameron McIntyre

Chief Executive Officer 
and Managing Director

Wal Pisciotta OAM

Non-Executive Director 
and Co-Founder

Kim Anderson

Non-Executive  
Director

32

carsales Annual Report 2022Edwina holds a Bachelor of Laws and Bachelor of Arts from Sydney University, practising commercial 
law before transitioning into the automotive industry. Edwina has worked in the automotive industry 
since 2003 as Managing Director until 2020 and is currently the Executive Chair of the Phil Gilbert 
Motor Group. 

Edwina has held numerous Industry Advisory positions including NSW Chair of the Hyundai Dealer 
Council from 2010 to 2015. She is currently on the Board of the peak industry body representing 
franchised new car dealers in Australia, the Australian Automotive Dealer’s Association and joined the 
Board of emerging digital fintech Till Payments in December 2021.

Edwina Gilbert

Non-Executive Director

Edwina brings significant OEM knowledge along with executive experience operating dealerships with  
a digital first marketing approach and has deep operational and commercial acumen. Edwina has 
chaired the Company’s Risk Committee since it was established in January 2019.

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Kee Wong

Non-Executive Director

Kee is an entrepreneur with a Bachelor of Engineering (Hons.), a Graduate Diploma in Computing and 
an MBA. Kee was awarded a Fellow of Monash University in 2010 and Distinguished Alumni in 2014. He 
has started several businesses and has made investments across a number of industries which include 
technology services, retail, food and beverage, trading and property.

Kee was a senior executive at IBM running part of its e-business group in the Asia Pacific region, 
including Australia and New Zealand. He is founder and managing director of e-Centric Innovations, an 
IT/Management consulting firm operating in Australia, Malaysia and Singapore. Kee is currently a 
Non-Executive Director of the Australian Institute of Company Directors and InvoCare Limited and is 
the Chair of the Company’s Sustainability Committee. 

Kee expands the Board’s knowledge of technology and product, and enhances the entrepreneurial 
spirit of the Board, as well as providing valuable insight into markets outside of Australia in which the 
Company operates.

David has over 25 years’ experience as a partner of PwC, including 5 years as the Chief Operating Officer 
of PwC Assurance where he was responsible for managing the firm’s largest business unit, and 5 years 
practicing in the firm’s Indonesian office, where in addition to his responsibility as an audit partner he 
was responsible for the firm’s IT platform. 

David has extensive experience working with companies in the technology, infocoms and entertainment 
and media industries, having been the lead audit partner for clients including Network Ten, APN News  
& Media and Yahoo during his time with PwC.

David Wiadrowski

Non-Executive Director

David holds a Bachelor of Commerce from the University of NSW and is currently a Non-Executive 
Director of oOh!Media Ltd and Life 360 Inc and Chair of WageSplitter Pty Ltd.

In addition to his outstanding financial credentials, David brings strong commercial acumen to the 
Board, derived from his extensive experience at PwC and board roles.

Steve has 30 years’ experience in the innovation and services industries, including more than  
25 years’ experience in supplying computer services to the automotive industry.

Steve holds a Bachelor of Business degree from Monash University and is an experienced board 
Director. He is currently Chief Executive Officer at Pentana Solutions Pty Ltd. 

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Nicole is an experienced General Counsel and Company Secretary with 20 years’ experience in the 
law, primarily working with online businesses and intellectual property. 

Nicole holds a Bachelor of Laws (Hons) and Bachelor of Arts from Monash University. Before joining 
carsales, Nicole was in-house legal counsel for Medibank Private Ltd and REA Group Ltd. Prior to 
this Nicole worked for Minter Ellison, one of Australia’s premier legal firms.

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Steve Kloss

Alternate Non-Executive 
Director

Nicole Birman

Company Secretary

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33

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OUR PEOPLE AND CULTURE CHAIR’S MESSAGE

Dear Shareholders,

On behalf of the Board, I am pleased to present the 
Remuneration Report for the year ended 30 June 2022 
(FY22).

The business has again delivered strong financial growth 
during FY22 and the Board remains committed to taking  
a remuneration approach that enables us to attract, 
motivate and retain the best talent that is aligned to 
long-term shareholder value creation. 

Company performance
The Company has again produced strong results in FY22, 
summarised as follows:

•  19% Reported Revenue growth, 12% Reported EBITDA 

growth and 23% NPAT growth.

•  36% Look through revenue growth and 25% look through 

EBITDA growth on a constant currency basis.

•  69.0 cents Adjusted Earnings Per Share (EPS) from 
continuing operations, up 12% compared to the  
prior year.

•  77% Total Shareholder Return (TSR) in FY22.

Executive KMP Changes in FY22
In March 2022, the Company announced changes to its 
leadership structure which reflects the increasing profile  
of its international businesses and delivery of Australian 
growth opportunities.

As part of these changes, the Board was pleased to appoint 
Paul Barlow to Managing Director – carsales Australia on  
1 April 2022. Paul has assumed responsibilities for all 
carsales’ Australian operations. Paul is a highly experienced 
leader and has a proven track record of strong 
performance during his 13 years with the Company. 

William Elliott, carsales’ Chief Financial Officer, assumed 
responsibility for carsales’ Investments from 1 April 2022, 
which includes Tyresales, TyreConnect, Redbook Inspect 
and iMotor. This expanded portfolio provides further 
breadth and growth opportunities for William, as well as 
increased focus for the Investments area of the business.

The Board was pleased to be able to make these changes 
following Ajay Bhatia’s, formerly MD – carsales Australia, 
resignation in March 2022. These changes are a testament  
to the depth of talent we have in the business and the clear 
succession plans we have in place. 

Remuneration Outcomes
The FY22 remuneration outcomes align with the strategic 
objectives and performance outcomes of the Company  
for the fiscal year. The Board’s approach to remuneration 
ensures alignment between employee and shareholder 
outcomes. No discretion, either positive or negative,  
has been applied by the Board.

Below is a summary of Fixed Remuneration, STI and  
LTI outcomes:

FY22 Remuneration Changes
•  Managing Director & Chief Executive Officer  

Cameron McIntyre’s fixed remuneration remained 
unchanged in FY22. 

•  Chief Financial Officer, William Elliott, received a  

22.2% increase on 1 July 2021, better aligning his fixed 
remuneration to market in accordance with his continued 
strong performance in the role. On 1 April 2022, William 
received a 9.1% increase, recognising additional 
responsibility for areas of carsales Investments, including 
Tyresales, Tyreconnect, Redbook Inspect and iMotor. 

•  Whilst MD – International, Paul Barlow received a 4.9%  
increase on 1 July 2021, reflecting strong performance  
in the role and better market alignment. In April 2022, 
upon commencement of his new role as MD – carsales 
Australia, Paul received a further 23.1% increase, 
recognising an increase in his role and responsibilities 
and reflecting his industry skills and experience.

•  In FY22, the Board also reviewed the Executive KMP  
Short Term Incentive Plan design and introduced an 
accelerator to the financial component of that plan.  
This was designed to drive outperformance in financial 
achievement, over and above the Company’s 5-year CAGR 
growth rate. This is aligned with shareholder outcomes, 
and rewards Executive KMP for delivering even stronger 
financial results.

FY22 STI
•  Financial (70% of the plan) – The Company has delivered  

a strong result for shareholders, exceeding target  
for look through revenue and delivering on target 
performance for look through EBITDA. 119% achievement 
for the financial objective measure resulted in an 83% 
payment outcome.

•  Strategic (30% of the plan) – A measured scorecard 

outcome of 67%, resulting in a 20% achievement for the 
strategic objectives measure was achieved.

•  A total outcome of 103% payout was achieved compared 

to an FY21 STI outcome of 100% payout.

34

carsales Annual Report 2022Our focus remains on continuing to 
engage, motivate and retain Executives in 
a highly competitive talent market, whilst 
also aligning with shareholder interests. 

FY20-22 LTI
•  Financial (70% of the plan) – Achieved solid performance 

for look through revenue and strong CAGR growth  
in Adjusted EPS, resulting in 79.5% achievement  
for the measure and a 55.7% vesting outcome  
of performance rights.

•  Strategic (30% of the plan) – A scorecard outcome of 67% 
was achieved for the measure, resulting in 20% of options 
vesting under the plan. 

•  A total vested outcome of 75.7% was achieved compared 

to an FY19-21 outcome of 30%.

When assessing strategic objectives in both the LTI and STI 
plans, the Board uses a scorecard of three key measures: 
on-time delivery, on budget, and a positive contribution to 
the bottom line.

We believe this approach fairly recognises the outcomes 
and value creation that our Executive KMP’s and leadership 
team have delivered for the business and shareholders.

Company culture
We would like to acknowledge the exceptional talent we 
have throughout the business, and our appreciation for  
the strong leadership and engagement of our Executive 
team, who continue to deliver great outcomes each year  
for our shareholders. 

The Company’s culture continues to strengthen with 
increased engagement levels and we are proud to be 
recognised again as a Workplace Gender Equality Agency 
Employer of Choice, a certified Great Place to Work® in 
Australia, an AAGE Top Intern program employer, Top 
Graduate Employer and a certified Family Inclusive 
Workplace™. The strength of leadership and culture  
within the Company is a credit to the Group.

Committee priorities for FY23
The People and Culture Committee will continue to 
closely monitor the effectiveness of the Executive KMP 
remuneration framework. Our focus remains on continuing 
to engage, motivate and retain Executives in a highly 
competitive talent market, whilst also aligning with 
shareholder interests. 

As always, we welcome your feedback on our Remuneration 
Report and look forward to discussions with many of you 
over the coming year.

M
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Yours sincerely

Kim Anderson 
Chair of the People and Culture Committee

35

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carsales Annual Report 2022AUDITOR’S  INDEPENDENCE  DECLARATIONOUR STRATEGYCHAIR AND  CEO LETTERWHAT WE DOOUR MARKETSOUR AUSTRALIAN  BUSINESSAUSTRALIAN  HIGHLIGHTSOUR  INTERNATIONAL  BUSINESSINTERNATIONAL  HIGHLIGHTSOUR PEOPLE.  OUR CULTURE.DIRECTORS’ REPORTCORPORATE GOVERNANCESUSTAINABILITY REPORTOUR BOARDREMUNERATION REPORTOTHER DIRECTORS’ REPORT  DISCLOSURESOUR  OPERATIONAL HIGHLIGHTS 
 
 
 
 
REMUNERATION REPORT 2022

In this Report

1  Who is Covered in this Report 

2  Summary of the Executive KMP Remuneration Framework 

3  Remuneration Outcomes and Link to Performance 

4  Remuneration Governance 

5  Executive KMP Statutory Remuneration Disclosure 

6  Executive KMP Service Agreements 

7  Executive KMP Equity Disclosures 

8  Non-Executive Director Fees 

36

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49

50

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50

53

Independent Audit of the Report
The information provided in this remuneration report has been audited as required by section 308(3C) of the Corporations 
Act 2001.

1. Who is Covered in this Report
This remuneration report details the performance and remuneration of Key Management Personnel (KMP), comprising 
Non-Executive Directors and members of the Executive Leadership Team (herein referred to as Executive KMP) who had 
the authority and responsibility for planning, directing, and controlling the activities of the Company during FY22.

1.1 Key Management Personnel
As detailed in the People and Culture Commitee Chair’s opening letter, the Board was pleased to appoint Paul Barlow to 
Managing Director – carsales Australia on 1 April 2022. As a highly experienced leader, Paul assumed responsibilities for  
all carsales’ Australian operations.

William Elliott, carsales’ Chief Financial Officer, assumed responsibility for carsales’ Investments, which includes Tyresales, 
TyreConnect, Redbook Inspect and iMotor, on 1 April 2022. This change provides further breadth to William’s role, as well 
as increased focus for the Investments area of the business.

The Board were pleased to be able to make these changes to the Executive KMP following Ajay Bhatia’s, formerly MD – 
carsales Australia, resignation. Ajay ceased as a KMP on 1 April 2022 and commenced gardening leave until July 2022.

The Company’s KMP in FY22 are listed in the table below:

Name
Non-Executive Directors
Patrick O’Sullivan
Walter Pisciotta
Kim Anderson
Edwina Gilbert
Kee Wong
David Wiadrowski
Steve Kloss
Executive KMP
Cameron McIntyre
Paul Barlow

William Elliott
Ajay Bhatia

36

Position

Term as KMP

Non-Executive Chair
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Non-Executive Director (Alternate)

Managing Director (MD) and Chief Executive Officer (CEO)
Managing Director – carsales Australia (from 1 April 2022)  
Managing Director – International (until 31 March 2022)
Chief Financial Officer (CFO)
Managing Director – Australia (ceased as KMP 1 April 2022)

Full year
Full year
Full year
Full year
Full year
Full year
Full year

Full year
Full year

Full year
Part year

carsales Annual Report 20222. Summary of the Executive KMP Remuneration Framework

2.1 Executive remuneration strategy and link to Company performance
When designing remuneration plans and making decisions within our remuneration framework, we are guided by our 
remuneration principles which support the execution of our business strategy.

The strategic measures for our Company’s remuneration plans are taken from areas of focus from our Company  
Global Positioning Strategy (GPS) 2022 strategy. This ensures we align priorities across the wider company in both 
remuneration and strategy.

Purpose: Making buying and selling a great experience

Delivered through three strategic pillars:

Enabled by:

Grow digital 
marketplaces

Build value-added 
services

Seek future 
mobility horizons

Our 
people

Best-in-class
data

Best-in-class 
technology

Underpinned by our Remuneration Principles 

Market competitive

Ensure the Company has the flexibility to attract, motivate and retain high-calibre  
talent in a competitive market.

Alignment

The alignment of Executive KMP and Senior Executive interests with those of shareholders’ and our 
customers are paramount to business success. We believe in a pay for performance culture and 
through this encourage Senior Executives to build and maintain a reasonable shareholding.

Link to Company strategy

Our focus is on value-add objectives that contribute to achieving our purpose so that we reward 
what truly impacts business growth. 

Reward the right outcomes

We encourage responsible decision making that is made in the best interests of our customers and 
shareholders and align reward outcomes accordingly. 

Reinforcing business goals and objectives via our Remuneration Framework 

Remuneration Component

Alignment to performance

Alignment to principles and strategy

Fixed Remuneration (FR)
Comprises base salary and superannuation.

Short-Term Incentive (STI)
Annual incentive opportunity.  
Delivered as 75% cash and 25%  
deferred performance rights for  
a 12-month period, subject to  
continued service.

Long-Term Incentive (LTI)
Granted in 70% performance rights  
and 30% options with a three-year  
vesting period for FY20-22.

Granted in 100% Performance rights  
for FY21-23 and FY22-24. 

Set at a market competitive level in relation to 
the scope, complexity, capabilities and individual 
performance in the role.

Provides recognition for day to day, operational 
activities in the role.

Set to attract, retain and engage the best people 
to design and lead the delivery of our strategy.

Performance assessed using a Group 
Performance scorecard against:

•  Financial measures (70%) – Look through 

EBITDA and Look through revenue,  
weighted equally.

•  Strategic measures (30%) – Pre-determined 
projects, business and people objectives. 

Linked to the Company’s key strategic priorities 
which directly contribute towards the execution 
of long-term strategy each year. 

The 25% of the award that is deferred  
into equity supports Executives’ alignment with 
shareholder interests, as well as Executive 
retention. 

Performance assessed against:

•  Financial measures (70%) comprising 

Targeting profitable, sustained growth in 
revenue and shareholder wealth creation.

Cumulative Annual Growth Rate (CAGR) for: 
Look through revenue and Adjusted NPAT 
(FY20-22), Adjusted EPS and Relative TSR 
(FY21-23 and FY22-24).

The three-year vesting period encourages 
consideration of long-term decision making  
and value creation, as well as operating as a 
retention tool. 

•  Strategic milestone measures (30%) including 

International revenue growth, growth in 
Australian non-classified automotive products 
and projects that address development in the 
auto industry. 

With a significant portion of potential 
remuneration based on carsales equity,  
the Board provides alignment between the 
interests of Executives with shareholders.

Non-monetary benefits: Employees are provided with salary continuance insurance cover. It is not allocated on an individual basis. 

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carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

To ensure remuneration is market competitive to retain high-calibre talent, the Company will seek advice from external 
remuneration consultants on an as needs basis to benchmark Executive KMP remuneration against relevant peers, being 
ASX listed companies that are relative in size, structure and industry to that of carsales. The Company accepts that while 
this peer group is small, it is the most relevant group from which the competition for talent arises. Increasingly, the 
Company also considers global competitors for talent to be relevant, but has focused on companies with an Australian 
presence for the purpose of this remuneration framework in the current year.

In FY22, the Board engaged Ernst & Young (EY) and Mercer Consulting as its independent Remuneration Advisors.  
While carsales sought input from EY and Mercer Consulting, no remuneration recommendations, as defined by the 
Corporations Act 2001, were provided by our Remuneration Advisors. External advice is used as a guide only and does  
not serve as a substitute for Directors’ thorough consideration of remuneration outcomes.

2.2 Remuneration Mix (percentage of total remuneration)
Within the remuneration framework, a focus has been on strengthening the levels of performance-based remuneration.  
As such, our remuneration mix (at maximum) includes at least 50% in the form of variable remuneration.

The figure below shows the remuneration mix at maximum opportunity for FY22, comprising Fixed Remuneration, STI cash, 
STI deferred and LTI granted.

The actual remuneration mix will vary based on Group and individual performance each year.

2.3 Timeline for Delivery of Remuneration
The diagram below provides a summarised timeline of when the FY22 remuneration opportunity is delivered.

Fixed Remuneration

Base salary/Super (100%)

Short-Term Incentive

Cash (75%)

Deferred performance 
rights (25%)

Long-Term Incentive

Performance rights/
Options (100%)

Performance Year

Year 1

Year 2

Year 3

38

Fixed RemunerationMD & CEOMD carsales AustraliaCFOSTI CashSTI DeferredLTI27%30%10%11%33%42%33%14%42%28%9%21%carsales Annual Report 20223. Remuneration Outcomes and Link to Performance
One of the key principles of the Company’s remuneration framework is to align Executive KMP remuneration outcomes 
with Company performance. This section provides a summary of the Company’s five-year financial performance outcomes 
and the link to remuneration outcomes over this period.

3.1 Company Five-year Financial Performance
The Company’s financial performance over the past five years along with how that performance has translated to shareholders 
in the form of earnings per share (EPS) and total shareholder return (TSR) is demonstrated in the graphs below.

Remuneration Performance Measures

Look through1 Revenue2 ($m)

Look through EBITDA ($m)

Adjusted EPS and KMP remuneration

700

600

500

400

300

200

100

0

CAGR 8%

580 

36%

521 

35%

462 

488 

28%

32%

426 

23%

77%

72%

68%

65%

64%

FY18

FY19

FY20

FY21

FY22

400

350

300

250

229 

200

20%

CAGR 9%

324 

32%

300 

30%

249 

25%

266 

27%

150

100

50

0

80%

75%

73%

70%

68%

FY18

FY19

FY20

FY21

FY22

)
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t
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c
(
S
P
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d
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t
s
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A

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80

60

40

20

0

69.0

61.5 

56.4 

52.4 

53.4

FY18

FY19

FY20

FY21

FY22

10

8

6

4

2

%
o
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a
R

carsales Domestic

carsales International

carsales Domestic

carsales International

Adjusted EPS

KMP % of Adjusted NPAT

Other Performance Metrics

Dividend and payout ratio

Share price year end ($)2

Cumulative TSR (last 5 years)

)
s
t
n
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c
(
S
P
D

60

50

40

30

20

10

0

100

25.0

47.0

47.5

50.0

90

20.0

44.2

45.5

19.8

18.4

17.5

%
o
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a
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80

70

60

15.0

15.1

13.5

10.0

5.0

0.0

FY18

FY19

FY20

FY21

FY22

FY18

FY19

FY20

FY21

FY22

100%

80%

60%

40%

20%

0%

77%

76%

56%

15%

47%

22%

FY18

FY19

FY20

FY21

FY22

Dividend
per share

Dividend payout
ratio (%)

Five-year Incentive Outcomes

Share price

carsales

ASX200 Total Returns

Executive KMP Remuneration Outcomes
STI outcome (average % of maximum)
LTI vesting outcome (% of maximum)

FY18
85.3%
72.9%

FY19
31.9%
49.4%

FY20
28.0%
76.0%

FY21
100.0%
30.0%

FY22
103.1%
75.7%

1.   carsales “look through” methodology: For equity accounted associates and consolidated subsidiaries, add the total revenue or EBITDA for the 
period of ownership within the reporting period multiplied by the % ownership over the period. Some “look through“ numbers involve the 
disclosure of non-IFRS information. Look through revenue and EBITDA includes 49% of Trader Interactive in each period to show the 
performance of the business on an underlying basis. TyreConnect revenue and EBITDA is excluded.

2.  No adjustment has been made for the potential dilutive impact for the issue of 35.3 million shares that occurred in FY21 as part of a capital 

raise for the purchase of 49% of Trader Interactive.

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39

carsales Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

 3.2 Executive KMP Realised Remuneration Snapshot – FY22
The table below provides actual amounts received by the Executive KMP for FY22. This table is an additional disclosure to 
those required under the Australian Accounting Standards and the Corporations Act 2001. It has been provided to assist 
shareholders in understanding realised outcomes.

Name
Executive Director
Cameron McIntyre

Other Senior Executives
Paul Barlow

William Elliott

Year

FY22
FY21

FY22
FY21
FY22
FY21

Former Senior Executives
Ajay Bhatia5

FY22
FY21

Total FY22
Total FY21

Other 
$

Cash STI 
earned2 
$

Vested 
deferred  
STI3 
$

Vested  
LTI4 
$

Total 
$

1,280,348
1,241,325

389,202
96,864

1,556,227
868,620

4,725,777
3,706,809

Fixed 
remun-
eration1 
$

1,500,000
1,500,000

685,000
619,500
562,500
450,000

-
-

-
-
-
-

385,731
345,945
278,223
243,750

642,454
850,000
3,389,954
3,419,500

573,004
-
573,004
-

549,141
525,000
2,493,443
2,356,020

108,467
33,039
76,425
13,713

164,607
50,961
738,701
194,577

207,931
128,685
-
19,301

1,387,129
1,127,169
917,148
726,764

-
225,199
1,764,158
1,241,805

1,929,206
1,651,160
8,959,260
7,211,902

1.   Fixed remuneration earned in the financial year (base salary and superannuation). Pro rata fixed remuneration figures provided for Paul Barlow 
and William Elliott in accordance with their newly appointed roles and associated new remuneration effective 1 April 2022. Ajay Bhatia resigned 
from the business with his last day as KMP being 1 April 2022. From this date Ajay commenced gardening leave that concluded in July 2022.  
A further breakdown of Ajay’s remuneration following termination is provided in section 5.1.

2.   Cash STI earned in relation to performance under the STI plan during the financial year. A prorata STI figure has been provided for Paul Barlow 

and William Elliott, reflecting their change in remuneration effective 1 April 2022. 

3.   Vested deferred STI is the value of deferred STI earned as a result of performance in the prior financial year, subject to a restriction period that 
ends in August 2022. The STI value is calculated as the number of rights that vested multiplied by the 30 June 2022 closing share price (30 June 
2021 closing share price for the FY21 financial year).

4.   Vested LTI is the value of performance rights and options that vest in August 2022. Values are calculated as the number of rights and options 

received multiplied by the 30 June 2022 closing share price (30 June 2021 closing share price for the FY21 financial year), less the exercise cost 
of converting options to shares. For example, FY22 is reported as the FY20 LTI grant which vest in August 2022. William Elliott did not participate 
in the FY20-22 LTI plan because he was not in the CFO role at the time of the grant.

5.  Ajay Bhatia ceased to be KMP effective 1 April 2022. From this time, Ajay remained on gardening leave concluding on 29 July 2022. The ‘Other’ 

column includes the gardening leave and all other payments that were expensed in FY22.

3.3 Fixed Remuneration Outcomes
Fixed remuneration is generally positioned between the median and the 75th percentile of the relevant market, which 
allows flexibility required to attract and retain high calibre Executives. The annual fixed remuneration entitlements of the 
Executive KMP for FY22 is set out below:

Name
Cameron McIntyre
Paul Barlow
William Elliott
Ajay Bhatia

Annual fixed remuneration from  
1 July 2021 to 31 March 2022 
$
1,500,000
650,000
550,000
850,000

Annual fixed remuneration from  
1 April 2022 to 30 June 2022 
$
1,500,000
800,000
600,000
n/a

Actual fixed remuneration paid to members of the Executive KMP is shown in the remuneration tables in section 3.2  
of this report.

A benchmarking exercise was undertaken in FY22. Mercer Consulting were engaged to extract market data based on 
outcomes from an agreed ASX-listed peer group. This peer group consisted of 23 ASX-listed companies that were selected 
with consideration to organisation size and industry. Market data was presented in accordance with appropriate job size  
of each role, allowing for a relevant market review to be undertaken.

40

carsales Annual Report 2022In the FY22 annual review, effective 1 July 2021, there was no change made to the CEO’s fixed remuneration.  
Whilst in the former role of MD – International, Paul Barlow received an increased fixed remuneration of 4.9% on 1 July 
2021 to position him competitively to market and in accordance with strong performance in the role. On 1 April 2022,  
upon commencement of the role of MD – carsales Australia, Paul received a 23.1% increase, recognising the increased 
accountability in his role, along with Paul’s broad business knowledge and extensive skillset. William Elliott, the Company’s 
CFO received a 22.2% increase on 1 July 2021, better aligning his fixed remuneration to market in accordance with his 
continued strong performance in the role. On 1 April 2022, William received a 9.1% increase, recognising additional 
responsibility for areas of carsales Investments, including Tyresales, Tyreconnect, Redbook Inspect and iMotor. 

3.4 Short-Term Incentive Plan – Key Features and Outcomes
The key features of the STI plan for the year ended 30 June 2022 are detailed in the table below.

Feature
Description

Performance 
period
STI Opportunity

Approach
Eligible Executive KMPs participate in the annual STI plan with an earning opportunity that is ‘at 
risk’ subject to specific pre-determined Group measures being met. All performance measures 
chosen support the delivery of our strategy and create sustainable value for all stakeholders.
Aligned with the financial year, 1 July 2021 to 30 June 2022.

The STI opportunity varies in accordance with role size, complexity and direct accountability. 
Market benchmarking references are also taken into consideration. The STI Target opportunity 
represents expected performance for the Group. The maximum (capped) opportunity represents 
outstanding levels of performance. Executive KMP capped levels, referenced as a percentage of 
Fixed Remuneration (FR) are:

Role
CEO
Other Executive KMP

Target STI1
110.4%
Between 60.0% to 83.5%

Maximum STI2
149.0%
Between 87.5% to 112.8%

Delivery of 
award

Performance 
measures and 
weightings

The STI award is delivered 75% in cash and 25% in equity (performance rights) that is deferred for 
an additional 12 months subject to a continued service condition. No dividends are payable until 
the performance rights vest into ordinary shares at the conclusion of the 12-month hold period.
The STI plan incorporates both financial and non-financial performance measures. The performance 
measures and their relative weightings are:

Category
Financial

Non-financial

Measures
Adjusted look through revenue
Adjusted look through EBITDA
Strategic objectives
People & Culture

Weighting
35%
35%
20%
10%

Performance 
threshold and 
maximum

These measures are calculated on a constant currency basis to remove the effect of fluctuations  
in FX rates when assessing performance outcomes.

A minimum performance threshold must be achieved in the performance period prior to any 
award vesting. The threshold and maximum performance for FY22 have been set as follows:

Measure
Look through revenue
Look through EBITDA

Threshold
3.0% growth
3.0% growth

Maximum
12.0% growth
12.0% growth

1.  The Target STI opportunity is represented as a percentage of fixed remuneration. In FY22 the Board introduced an accelerator to the financial 
component of the STI Plan. This was designed to drive outperformance in financial achievement, over and above the Company’s 5-year CAGR 
growth rate. This change aligns with shareholder outcomes and rewards Executive KMP for delivering even stronger financial results.

2. FY22 maximum STI is capped at 135% of the target opportunity. 

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41

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

Feature
Selection of 
Performance 
Measures

Approach
Financial Measures:

Adjusted Look through revenue
Adjusted look through revenue is the ordinary 
revenue from continuing operations reported for 
the consolidated Group, adjusted for the 
ownership percentage held by the group of 
consolidated subsidiaries, and adding in the 
Group’s ownership share of the underlying 
revenue for equity accounted associates. 

Adjusted Look through Earnings  
Before Interest, Tax, Depreciation and, 
Amortisation (EBITDA)
Adjusted look through EBITDA is the Group 
earnings before interest, tax, depreciation  
and amortisation, adjusted for the ownership 
percentage held by the group of consolidated 
subsidiaries, and adding in the Group’s 
ownership share of the underlying EBITDA  
for equity accounted associates.

Link of 
performance  
and reward

Non-financial measures within the plan recognise the importance of key strategic priorities  
and employee engagement in achieving business transformation. The Board decides on  
pre-determined strategic performance objective targets at the beginning of the performance 
period, which are linked to our longer-term strategy and value creation for our shareholders.  
The strategic objective outcomes are provided within the STI outcomes section of the report.
For each measure, there is a minimum threshold of performance required which needs to be met 
before any pay-out is awarded for that portion of the STI.

An incremental scale applies in accordance with achievement of financial measures, with the 
intention to motivate and fairly reward exceptional performance outcomes. The achievement  
of non-financial performance measures is assessed through a rating scale, with Satisfactory 
performance allocated 50%, Above Expectations allocated 75% and Exceptional allocated 100%.

Maximum 150%
(Financial)

Maximum 100%
(Non-ﬁnancial)

Target 100%
(Financial)

Threshold 50%
(Non-ﬁnancial)

Threshold 25%
(Financial)

Minimum 0%

Threshold

Stretch

Financial

Non-ﬁnancial

Cessation of 
employment

If an Executive KMP ceases employment with the Company prior to any awards being paid, unless 
the Board determines otherwise, the Executive KMP will forfeit any awards to be paid for the 
performance period.

42

carsales Annual Report 2022Performance outcomes against STI Measures for FY22

STI outcomes are calculated using a performance scorecard with 70% weighting on financial measures and 30% weighting 
on non-financial measures. All outcomes are measured on Group performance.

The Board’s assessment of the Executive KMP’s performance in the 2022 financial year is outlined below.

Measure

Weighting

Threshold

Actual 
Performance

Payout  
(as a % of 
Maximum)

Commentary

Adjusted look 
through 
revenue
Adjusted look 
through 
EBITDA

Strategic
Media Strategy

Global 
Integration

People
Engagement 
and Sentiment 

35%

$537m

$580m

48%

•  Strong performance achieved, 

well above threshold

35%

$309m

$324m

35%

•  Target performance achieved 

10%

10%

10%

Exceeds 
Expectations

10%

•  Key customer data and self-serve 

technology platforms were 
delivered on time and on budget, 
which support current and future 
media revenue growth

•  Did not implement the specified 
services due to operational and 
strategic reasons. As such, 
objective was not achieved

Does not meet 
expectations

0%

Exceeds 
Expectations

10%

•  Achieved an EOS rating of 78%, 

above target of 71%

•  Recognised as a Workplace 

Gender Equality Agency Employer 
of Choice, and certified as a Great 
Place To Work®

Total

100%

103%

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43

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

Overall STI Financial Outcomes

The following table provides the FY22 STI outcomes awarded to Executive KMP. Under the FY22 STI plan, 25% of  
the awarded STI is provided in equity with vesting deferred for an additional 12 months, subject to a continued  
service condition.

2022
Cameron McIntyre
Paul Barlow
William Elliott
1. Number of performance rights to be awarded is based on the 20 trading day VWAP up to and including 30 June 22

Actual STI 
awarded 
$
1,707,131
514,308
370,964

75% 
Cash 
$
1,280,348
385,731
278,223

Number of 
performance 
rights awarded1
22,653
6,825
4,923

STI  
Target 
$
1,655,400
498,723
359,723

25% 
Deferred  
in Equity 
$
426,783
128,577
92,741

STI actual 
as a %  
of STI 
Target 
%
103%
103%
103%

2021 Deferred STI Outcome

The 2021 deferred STI will qualify to vest upon release of this Annual Report to the ASX by the Board. The table below 
provides the award value based on the accounting Black Scholes valuations, as well as the cash value to each Executive 
KMP of their STI based on the 30 June 2022 share price.

2022
Cameron McIntyre
Paul Barlow
William Elliott

DSTI value  
(Black Scholes)

DSTI value  
(30 June 2022 share price)

Vested 
$
437,244
121,855
85,858

Vested 
%
100%
100%
100%

Vested 
$
389,202
108,467
76,425

Vested 
%
100%
100%
100%

3.5 FY20-22 Long-Term Incentive Plan – Key Features

Feature

Approach

Description

Opportunity

Eligible Executive KMPs participate in the LTI plan, with an opportunity that is ‘at risk’ subject  
to specific pre-determined Group performance measures being met over a three-year period.  
The plan is designed to align Executive KMPs interests with those of shareholders.
The LTI opportunity reflects accountabilities and influence over the Company’s long-term 
performance within each role. Market benchmarks are also referenced in determining the LTI 
opportunity. The maximum face value of LTI that can be granted, referenced as a percentage  
of Fixed Remuneration (FR) is:

Role
CEO
Other Executive KMP

Maximum (cap)
94.7% of Fixed Remuneration
Between 29.0% and 40.0% of Fixed Remuneration

Performance is measured over three financial years. The expiry date of the award is fifteen years 
from the grant date.

Performance 
and vesting 
period

44

carsales Annual Report 2022Feature

Approach

Delivery 

The number of performance rights and options granted for the FY20-FY22 plan are allocated as 
follows: Seventy percent (70%) of the opportunity is granted as performance rights (PRs), with 
vesting subject to financial performance measures and ongoing service. The remaining thirty 
percent (30%) is granted as options, with vesting subject to strategic objectives being met and 
ongoing service. No dividends are paid during the performance period, until the rights or options 
vest and are exercised.

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Allocation 
approach

Performance 
measures and 
weightings 

In FY21 the Board decided to simplify the FY21-23 LTI plan to have only one equity vehicle, rather 
than two. As such, one hundred percent (100%) of the opportunity in FY22 will be granted as 
performance rights (PRs), with vesting subject to financial metrics and strategic objectives being met 
as well as ongoing service. No dividends are paid during the performance period, until the rights vest.
The number of performance rights and options granted are calculated as follows:

$ Fixed 
Remuneration 
(FR)
(At time  
of grant)

x

Award face value
(% FR)

÷

$ Share price 
(Performance rights) 

=

Number of PRs 
(70% of Award)

$ Black Scholes price 
(Options)

=

Number of Options 
(30% of Award)

The share price used was the Volume Weighted Average Price of the Company’s ordinary shares for 
the 20 trading days up to and including 30 June 2022.
The performance measures and their relative weightings are:

Category
Financial
(PRs)

Strategic
(Options)

Measures
Look through revenue
Adjusted EPS
Growth in international business performance metrics that 
reflect the strategic importance of this segment to the Group  
as a whole
Trust and brand metrics that represent the importance of 
reputation to the Group’s success
Domestic business milestones that indicate successful 
implementation of the Group’s strategic roadmap

Weighting
35%
35%

10%

10%

10%

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45

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

Feature

Approach

Performance 
Threshold and 
Maximum

A minimum performance threshold must be achieved in the performance period prior to any award 
vesting. The threshold and maximum performance for FY20-22 and other currently operating LTI 
plans (for further information) have been set as follows:

Year
FY20-22

FY21-23

FY22-24

Measure
Look through revenue
Adjusted EPS
Relative TSR
Adjusted EPS
Relative TSR
Adjusted EPS

Threshold
3.0% CAGR
3.0% CAGR

Maximum
10.0% CAGR
10.0% CAGR
50th percentile 75th percentile
10.0% CAGR
50th percentile 75th percentile
10.0% CAGR

3.0% CAGR

3.0% CAGR

Financial metrics used exclude corporate activity (such as acquisitions) made after the AGM notice 
date, with the exception of any disposal of businesses or acquisitions of additional equity stakes in 
any existing businesses, where the CAGR targets will be altered to maintain the underlying CAGR 
growth rates targeted for the financial year. The Board retains discretion to adjust the CAGR growth 
rates to include the impact of any strategically important acquisitions made during the performance 
period, such that management is not materially advantaged or disadvantaged from entering into 
further acquisitions when it is in shareholders’ interests to do so.

Strategic Targets: The release of targets that were used to assess performance will be provided 
upon completion of each three-year performance period, due to competitive advantage information 
being withheld.

Vesting 
Schedule

Performance Level
Financial
Below Threshold
Between Threshold and Maximum: Both Look through  
revenue and Adjusted EPS
Strategic
Not achieved
Partial achievement 
Full achievement

Vesting %

0% 
From 25% to 100%

0%
50%
100%

46

carsales Annual Report 2022Feature

Approach

Selection of 
Performance 
Measures

Malus and 
Clawback

Ceasing 
Employment

Hedging Policy

Financial Measures:

Adjusted EPS
Adjusted EPS is defined as earnings per share calculated  
by dividing the Adjusted NPAT attributable to equity holders 
of the Company during the relevant period by the weighted 
average number of ordinary shares outstanding during the 
relevant period. The Board also retains discretion to alter 
the Adjusted EPS hurdle in exceptional circumstances to 
ensure there is no material advantage or disadvantage  
due to matters outside management’s influence that  
would materially affect Adjusted EPS. 

Look through revenue
Look through revenue is the ordinary 
revenue from continuing operations 
reported for the consolidated  
Group, adjusted for the ownership 
percentage held by the group of 
consolidated subsidiaries, and adding 
in the Group’s ownership share of 
the underlying revenue for equity 
accounted associates.

The Board believes that the chosen measures ensure alignment of LTI vesting outcomes to 
shareholder interests. In determining the financial measures’ targets, the Board considers the 
historical revenue and earnings performance of the Company, forward looking market consensus 
revenue and earnings expectations, the overall purpose of the award and the long-term best 
interests of the Company. Based on these factors, the Board believes that the growth targets  
that have been set are appropriate in all the circumstances.

Non-financial measures within the plan recognise the importance that key strategic priorities and 
people engagement have in achieving ongoing business transformation and evolution. The Board 
has selected pre-determined strategic performance objectives which are linked to the Company’s 
long-term strategy and are therefore key in improving long-term financial performance and value 
for our shareholders. Key factors in determining these outcomes are delivery on time, on budget 
and contribution to the bottom line.

For the FY21-23 and the FY22-24 plans, the Board has retained Adjusted EPS as a performance 
measure to support alignment with company specific financial outcomes, whilst introducing Relative 
Total Shareholder Return (RTSR) as a new market based performance measure, to enhance 
alignment of Executive remuneration outcomes with that of shareholders. Additionally, there  
are three international peer companies in the peer group (full listing of peer group provided in the 
2021 Notice of Annual General Meeting documentation on the Company’s Investors web page).
If the Board, in its reasonable opinion, determines that a plan participant has engaged in any  
of the following conduct, the Board may declare that all, or some, of the participant’s options  
or performance rights held under the plan are forfeited:

(a)   Cessation of employment, other than for special circumstances, redundancy or by mutual 

agreement between the Board and the participant;

(b)  Material breach of the participant’s obligations to the Company or a Subsidiary;

(c)  Behaviour that brings the Company or Group into disrepute.
Executive KMPs who leave the Company have 30 days from their date of departure to exercise any 
vested options they may have, unless such departure is under adverse conditions. In exceptional 
circumstances, and at the Board’s discretion, Executive KMPs may be allowed to retain unvested 
options (from current prior year operating LTI plans) and performance rights in a future period 
when they vest. This would be subject to testing against performance criteria.
The Company’s Equity Plan specifically prohibits a plan participant from entering into any scheme, 
arrangement, agreement (including options and derivative products) or other hedging transaction 
under which the participant may alter or limit the economic benefit or risk to be derived from 
options, irrespective of future changes in the market price of any Company shares. Where a plan 
participant enters, or purports to enter, into any such scheme, arrangement or agreement without 
prior authorisation from the Company, such options will immediately lapse.

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47

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

Feature

Approach

Change of 
Control

While the Board maintains discretion in relation to unvested options and performance rights, the 
default treatment for unvested options subject to performance conditions is that a pro-rata number 
will vest based on the extent to which applicable performance conditions have been satisfied.  
For unvested options and performance rights subject to only continuing service conditions,  
the pro-rata number will vest based on the proportion of the period that has lapsed.

There are currently three years of unvested LTI awards with performance periods that include the 2022 financial year.

Financial year of grant 
FY20-22
FY21-23
FY22-24 

 Performance period
1 July 2019 – 30 June 2022
1 July 2020 – 30 June 2023
1 July 2021 – 30 June 2024

Performance year to 
determine vesting
FY22
FY23
FY24

Vesting dates
August 2022
August 2023
August 2024

FY20-22 Performance outcomes against LTI Measures

LTI performance and awarded outcomes

The Board’s assessment of performance against the FY20-22 LTI performance measures is outlined below.

Measure

Financial
Look through revenue1

Weighting

Performance 
outcome

Vesting 
outcome

Commentary

35%

Achieved

22.4%

Adjusted EPS

35%

Achieved

33.3%

Strategic
International revenue growth

10%

Full  
achievement

10%

•  Solid performance with 6% CAGR 
achieved across the LTI period.  
Key item preventing a higher growth  
rate was the decline in media revenue
•  Strong CAGR growth of 10% in Adjusted 
EPS which reflects solid revenue growth 
and good cost control

•  Strong double digit revenue growth 
across the international portfolio 
supported by excellent performance  
in Korea and Brazil over the last  
three years

Maintain brand preference 
and trust metrics at  
June 2019 levels

50% of automotive dealers 
using depth product by  
30 June 2022

10%

Not achieved

0%

•  Brand preference and trust metrics 

10%

Full  
achievement

remain strong, however the objective 
was not achieved and as such did  
not vest

•  50% of our dealers are now using  
our depth products to enhance  
their offerings

10%

75.7%

Total

100%

1. Look through revenue for LTI purposes excludes the impact of Trader Interactive and TyreConnect acquisitions.

48

carsales Annual Report 20224. Remuneration Governance 
The Board has ensured robust governance processes are in place for remuneration matters within the Company.  
The below diagram provides a summary of the remuneration governance framework.

Board
The Board takes guidance and reviews recommendations from the People and Culture Committee and makes 
decisions on remuneration strategy and outcomes for Executive KMP and Non-Executive Directors.

People and Culture Committee
The People and Culture Committee reviews recommendations made by management where appropriate and 
makes recommendations to the Board on remuneration and other terms of employment applicable to Executive 
KMP and Non-Executive Directors. In addition, the People and Culture Committee will facilitate an efficient 
mechanism for examination of the selection and appointment practices of the Company as well as cultural, 
diversity and inclusion practices.

Management
The CEO makes recommendations  
to the People and Culture  
Committee on performance  
and remuneration outcomes for  
direct reports.

Management may attend Committee 
meetings as required, however do not 
participate in formal discussions or 
decision making involving their own 
remuneration. 

Independent remuneration  
advisors
The People and Culture Committee 
may engage independent 
remuneration advisors if needed 
to assist the Board in making 
remuneration decisions.  
Any advice is used as one of  
many factors taken into 
consideration by the Board. 

Other Board committees
The Risk Management Committee 
and Audit Committee may advise 
the People and Culture Committee 
on relevant risk and reputation or 
relevant financial outcome matters 
that arise. 

Further information on the purpose and duties of the People and Culture Committee is contained in its Charter,  
which is available from the Company’s investor website: https://shareholder.carsales.com.au/charters.

4.1 Engagement with shareholders and proxy advisors 
Members of the Board have proactively engaged with several of its largest shareholders throughout the year.  
Meetings with proxy advisors have also occurred to try to ensure they have a good understanding of the Company’s 
remuneration structure and decisions, and are in a position to provide insightful advice to their clients. The Company  
views these meetings as an opportunity to receive valuable feedback on issues of importance to its shareholders and to 
ensure it is across the trends being seen in the market.

O
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B
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M
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A
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Over the course of FY22, representatives of the Company met with the following proxy advisors:

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•  Ownership Matters;

•  CGI Glass Lewis; and

•  ACSI – Australian Council of Superannuation Investors.

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49

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

5. Executive KMP Statutory Remuneration Disclosure
5.1 Accounting based benefits
The table below has been prepared in accordance with the requirements of the Corporations Act 2001 and relevant 
Australian Accounting Standards. The figures provided under the share-based payments columns are based on accounting 
values and do not reflect actual cash amounts received by members of the Executive KMP in FY22.

Short-term benefits

Post 
Employ-
ment

Long-
term 
benefits

Share-based payments

Name
Executive Director
Cameron McIntyre

Year

FY22

FY21

Salary and 
fees
$

Cash STI
$

Super-
annu-
ation

 1,476,432 

1,280,348

23,568

 1,478,306 

1,241,325

 21,694 

William Elliott

Other Senior Executives
Paul Barlow

FY22
FY21
FY22
FY21
Former Senior Executives
Ajay Bhatia1
FY22
FY21

Total KMP FY22
Total KMP FY21

 661,432 
597,806
538,932
428,306

385,731
345,945
278,223
243,750

624,778
828,306
3,301,574
3,332,724

549,141
525,000
2,493,443
2,356,020

23,568
21,694
23,568
21,694

17,676
21,694
88,380
86,776

Long 
Service 
Leave
$

Deferred 
STI 
$

LTI 
perform-
ance  
rights 
$

LTI 
options
$

23,595

39,462

50,387
6,526
27,300
17,181

416,269

296,893

4,645

262,235

680,644

395,480

120,473
75,799
85,878
49,107

43,566
104,399
44,961
50,100

1,036
53,627
355
5,044

Other
$

Total
$

 - 

 - 

 - 
 - 
 - 
 - 

3,521,750

4,119,146

1,286,193
1,205,796
999,217
815,182

(11,553)
26,865
89,729
90,034

92,463
115,410
715,083
502,551

(258,804)
237,529
126,616
1,072,672

(54,187)
93,847
(48,151)
547,998

573,004
 - 
573,004
 - 

1,532,518
1,848,651
7,339,678
7,988,775

1.   Ajay Bhatia ceased to be KMP effective 1 April 2022. From this time, Ajay remained on gardening leave concluding on 29 July 2022.  

The ‘Other’ column includes the gardening leave and all other payments that were expensed in FY22.

6. Executive KMP Service Agreements
All Executive KMP have service agreements determining fixed remuneration (cash salary and superannuation), and 
performance based variable reward, comprising STI opportunity and participation in the Company’s LTI Plan.

They have no fixed employment terms and no special termination payment conditions. All agreements provide for 
dismissal due to gross misconduct. The termination notice period is six months by either party and there is a six month 
non-compete period.

7. Executive KMP Equity Disclosures
7.1 STI and LTI payments (cash, options and performance rights) achievement against  
maximum entitlement
All Executive KMP received grants that were equal to or less than their maximum potential STI entitlements. The relative 
proportions of remuneration which are linked to performance and those that are fixed based on the accounting values 
table in section 5.1 are as follows:

Cash salary and 
superannuation

2022 
%

2021 
%

43

57
58

79

37

52
57

47

At risk – STI

At risk – DSTI

At risk – LTI

2022 
%

2021 
%

2022 
%

2021 
%

2022 
%

2021 
%

36

30
28

36

31

29
30

29

12

9
9

6

6

6
6

6

9

4
5

(21)

26

13
7

18

Name
Executive Director
Cameron McIntyre
Other Senior Executives
Paul Barlow
William Elliott
Former Senior Executives
Ajay Bhatia

50

carsales Annual Report 2022O
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2
7

.

carsales Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

Notes to table on previous page:
1.  $0.00 exercise price represents performance rights.
2.  Percentage of the available grant that vested in the financial year.
3.  Percentage of the available grant that was forfeited due to not meeting the service and performance criteria set.
4.   When exercisable, each option is convertible into one ordinary share upon payment of the exercise price by the option holder, provided that the 
option holder complies with the rules of the carsales.com Ltd Employee Option Plan. Performance rights will automatically be converted to one 
ordinary share upon the vesting date provided the holder complies with the rules of carsales.com Ltd Employee Option Plan.

5.   No options and performance rights will vest if the conditions are not satisfied, hence the minimum value of the options and performance rights 
yet to vest is nil. The value of the options and performance rights yet to vest has been determined as the amount of the grant date fair value of 
the options and performance rights that is yet to be expensed. Options and performance rights not exercised expire at the earliest of (a) the 
expiry date applicable to the option or performance rights, (b) 30 days post the employee ceasing to be employed by carsales.com Ltd, (c) where 
EPS or RTSR vesting conditions are not met at the relevant date, or (d) where there has been a special circumstance, then within 90 days after 
that special circumstance has occurred or as specified by the Board.

Further information on the options and performance rights is set out in Note 26 to the financial statements.

7.3 Shares provided on exercise of options and performance rights
Details of ordinary shares in the Company provided as a result of the exercise of options by each member of the  
Executive KMP are set out below.

Number of 
ordinary shares 
issued on 
exercise of 
options and 
performance 
rights during  
the year

Date of exercise 
 of options and 
 performance 
rights

Value at  
exercise date* 
$

Cost to exercise 
options 
$

Net benefit 
$

Aug-21

182,534

4,565,666

2,641,388

1,924,278

Aug-21
Sep-21
Aug-21

1,672
 26,316 
4,641

41,984
649,216
116,141

-
391,319
58,692

41,984
257,897
57,449

Aug-21

 48,632 

1,216,544

684,808

531,736

Name
Executive 
Director
C McIntyre
Other Senior 
Executives
P Barlow
P Barlow
W Elliott
Former Senior 
Executives
A Bhatia

*  The value at the exercise date of options and performance rights that were granted as part of remuneration and were exercised during the 

year has been determined as the intrinsic value of the options and performance rights at that date.

7.4 Equity holdings
The number of shares in the Company held during the financial year by Executive KMP, including their personally related 
parties, are set out below. There were no shares granted during the reporting period as compensation.

Name
Executive Director
C McIntyre
Other Senior Executives
P Barlow
W Elliott
Former Senior Executives
A Bhatia

52

Received during 
the year on the 
exercise of 
options/rights

Balance  
1 July 2021

Other changes 
during the year

Balance  
30 June 2022

 328,392 

 182,534 

(177,632)

 333,294 

 91,638 
 5,014 

 27,988 
 4,641 

(15,815)
(2,368)

 103,811 
 7,287 

 69,095 

 48,632 

(46,053)

 71,674 

carsales Annual Report 20227.5 Shares under option and performance rights
Unissued ordinary shares of carsales.com Ltd under option at the date of this report are as follows:

Date options/rights granted
Oct-16
Oct-17
Oct-18
Oct-19
Oct-19
Oct-19
Oct-19
Oct-20
Aug-21
Feb-22

Expiry date
Oct-31
Oct-32
Aug-36
Oct-34
Oct-34
Oct-35
Oct-35
Oct-35
Aug-22
Aug-24

Issue price  
of shares  
$
$12.23
$11.41
$14.87
$0.00
$13.54
$0.00
$13.54
$0.00
$0.00
$0.00

Number under 
options
 69,961 
 28,442 
 51,449 
 - 
 95,843 
 - 
 148,871 
 - 
 - 
 - 
394,566

Number under 
performance 
rights
 - 
 - 
 - 
 56,672 
 - 
 73,412 
 - 
 161,491 
 58,697 
190,727
540,999

No option or performance rights holder has any right under the options or performance rights to participate in any other 
share issue of the Company. No options or performance rights have been issued post 30 June 2022.

7.6 Shares issued on the exercise of options and performance rights
The following ordinary shares of carsales.com Ltd were issued during the year ended 30 June 2022 on the exercise  
of options granted under the carsales.com Ltd Employee Option Plan. No amounts are unpaid on any of the shares.

Date options and performance rights exercised
Aug-21

Aug-21
Sep-21
Oct-21
Nov-21
Dec-21
Feb-22
Mar-22

Issue price  
of shares  
$
$0.00

$11.41 - $14.87
$11.41 - $14.87
$0.00
$11.41 - $14.87
$11.41 - $14.87
$11.41 - $14.87
$12.23

Number  
of shares
14,461

304,344
62,370
8,519
9,608
10,070
22,377
1,818

8.Non-Executive Director Fees
Non-Executive Directors receive fees within an aggregate Directors’ fee pool limit, which is periodically proposed for 
approval by shareholders. The maximum payable to be shared by all Non-Executive Directors currently stands at 
$2,000,000 per annum. The current base remuneration pool was approved by shareholders at the Annual General  
Meeting held on 29 October 2021.

Fees and payments to Non-Executive Directors are determined by the demands that are made on their time, as well as 
their responsibilities. The annualised fees paid to the Board are below the $2,000,000 pool approved by shareholders.  
No changes to fees were made in FY22.

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53

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REMUNERATION REPORT 2022 CONTINUED

The following fee table applies:

Appointment
Chair fee
Base Director fee
Committee Chair fee
Committee Member fee

1 January 2021  
fee table 
$
370,000
147,000
35,000
15,000

Minimum Shareholding Requirements

The Company requires all Board members to hold the equivalent of one year’s base Director’s fees in equity after  
24 months’ Board membership. All Board members currently meet this requirement.

8.1 Accounting based benefits
The table below has been prepared in accordance with the requirements of the Corporations Act 2001 and relevant 
Australian Accounting Standards. The figures provided under the share-based payments columns are based on accounting 
values and do not reflect actual cash amounts received by Non-Executive Directors in FY22.

Short-term 
benefits

Post 
Employ-
ment

Long-
term 
benefits

Share-based payments

Salary 
and fees
$

Cash  
STI
$

Super-
annuation
$

Long 
Service 
Leave
$

Deferred 
STI 
$

LTI 
perform-
ance  
rights 
$

LTI 
options
$

Other
$

Total
$

FY22  346,432 
FY21  333,345 
FY22  147,273 
FY21  144,749 
FY22  183,584 
FY21  176,712 
FY22  192,727 
FY21  190,411 
FY22
171,393
FY21  158,448 
FY22
183,584 
FY21  171,589 
1,224,993
 1,175,254 

 - 
 - 
 - 
 - 
 - 
 - 
 - 

 - 
 - 
 - 
 - 
 - 
 - 

 23,568 
 21,773 
 14,727 
 13,751 
 18,358 
 16,788 
 19,273 
 18,089 
17,139
 15,053 
 18,358 
 2,774 
111,423
 88,227 

 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 

 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 

 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 

 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 
 - 

 370,000 
 - 
 355,118 
 - 
 162,000 
 - 
 158,500 
 - 
 201,942 
 - 
 193,500 
 - 
 212,000 
 - 
 208,500 
 - 
188,532
 - 
 173,501 
 - 
201,942
 - 
 - 
 174,363 
 -  1,336,416
 -   1,263,482 

Name
Year
Non-Executive Directors
Patrick O’Sullivan

Walter Pisciotta

Kim Anderson

Edwina Gilbert

Kee Wong

David Wiadrowski

Total FY22
Total FY21

54

carsales Annual Report 20228.2 Share holdings
The numbers of shares in the Company held during the financial year by each Director of carsales.com Ltd, including their 
personally related parties, are set out below.

Name
Non-Executive Directors
P O'Sullivan
W Pisciotta
K Anderson
E Gilbert
K Wong
D Wiadrowski
S Kloss (Alternate) 

Balance  
1 July 2021

Other changes 
during the year

Balance  
30 June 2022

26,597
8,499,990
18,229
31,394
14,626
10,000
2,774,500

-
(221,071)
-
666
-
102
-

26,597
8,278,919
18,229
32,060
14,626
10,102
2,774,500

8.3 Other transactions
Conflicts and transactions with KMP are handled in accordance with the Board Charter available at  
http://shareholder.carsales.com.au/Investor-Centre/.

(i) Directors of carsales.com Ltd

W Pisciotta and S Kloss are shareholders of Pentana Solutions Pty Ltd, which has a commercial relationship with the 
Company. Mr Pisciotta and Mr Kloss were absent from all Board discussions related to any commercial arrangement  
of Pentana Solutions and only those directors who are independent of Pentana Solutions were involved in the approval  
of the agreement. The total amount paid by carsales to Pentana Solutions Pty Ltd in FY22 was approximately $1,754,843.

E Gilbert is a Director of automotive dealerships which utilised the Group’s services under terms and conditions no more 
favourable than dealing with other customers at arm’s length in the same circumstances. The total amount paid to carsales 
by automotive dealerships of which E Gilbert is a Director in FY22 was approximately $803,497. E Gilbert did not receive 
any additional benefits to her dealerships from her participation on the Company Board.

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55

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER DIRECTORS’ REPORT DISCLOSURES

Directors
The following persons were Directors of carsales.com Ltd during the financial year and up to the date of this report 
unless indicated otherwise:

Pat O’Sullivan  

Non-Executive Chair 

Cameron McIntyre   Managing Director

Wal Pisciotta  

Non-Executive Director

Kim Anderson  

Non-Executive Director

Edwina Gilbert  

Non-Executive Director

Kee Wong  

Non-Executive Director 

David Wiadrowski   Non-Executive Director 

Steve Kloss  

Alternate Non-Executive Director

The number of full Board meetings attended, and sub-committee meetings attended where a Board member is a 
member of that sub-committee are set out below:

Director name

Full scheduled meetings of 
directors

Short teleconference 
meetings of directors

Ad hoc meetings of 
directors

A
1
Pat O’Sullivan 
1
Cameron McIntyre
1
Wal Piscotta
1
Kim Anderson
1
Edwina Gilbert
1
Kee Wong
1
David Wiadrowski 
Steve Kloss (alternate director)
1
A = Number of meetings held during the time the director held office during the year
B = Number of meetings attended

A
11
11
11
11
11
11
11
11

B
11
11
10
11
11
11
11
11

B
1
1
0
1
1
1
1
0

A
5
5
5
5
5
5
5
5

B
5
5
3
5
5
5
4
2

Director name

David Wiadrowski (Chair)
Kim Anderson
Edwina Gilbert 

Director name

Edwina Gilbert (Chair)
David Wiadrowski
Kee Wong

Director name

Kim Anderson (Chair)
Edwina Gilbert
Kee Wong
Wal Pisciotta

56

Number of Audit Committee 
meetings during tenure
3
3
3

Number of Audit Committee  
meetings attended
3
3
3

Number of Risk Management 
Committee meetings  
during tenure
3
3
3

Number of People and Culture
Committee meetings  
during tenure
3
3
3
3

Number of Risk Management 
Committee meetings attended

3
3
3

Number of People and Culture
Committee meetings attended

3
3
3
1

carsales Annual Report 2022Dividends – carsales.com Ltd
Dividends paid to members during the financial year were as follows:

Final fully franked dividend for the year ended 30 June 2021 of 22.5 cents (2020: 25.0 cents)  
per fully paid ordinary share paid on 18 October 2021 (2020: 7 October 2020).

Interim fully franked dividend for the year ended 30 June 2022 of 25.5 cents (2021: 25.0 cents) 
per fully paid share paid on 19 April 2022 (2021: 21 April 2021) 

2022
$’000

2021
$’000

63,527

61,523

72,068

135,595

61,597

123,120

At the end of the financial year the Directors have recommended the payment of a fully franked final ordinary dividend 
of $85,958,000 (24.5 cents per share) to be paid on 17 October 2022 out of retained earnings at 30 June 2022.

Significant changes in the state of affairs
During the financial year the Company continued to deliver on its strategy both domestically and internationally. 

Further details are set out in the Operational and Financial Review on page 26.

Matters subsequent to the end of the financial year
On 27 June 2022, the Group announced that it had exercised its call option to acquire the remaining 51% in Trader 
Interactive LLC and the launch of an approximately AUD $1,207.0 million fully underwritten pro-rata accelerated 
renounceable entitlement offer (with retail rights trading) to fund the acquisition.

The entitlement offer was completed in July 2022, resulting in the issue of 68,001,706 additional ordinary shares and 
cash raised of AUD $1,182.0 million (net of transaction costs).

On 8 July 2022, the AUD $651.0 million drawn down amount was repaid to the Tranche A and Tranche B financiers.

No other matters or circumstances have occurred subsequent to period end that have significantly affected, or may 
significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or 
economic entity in subsequent financial years. 

Insurance of officers
During the financial year, carsales.com Ltd paid a premium to insure the Directors and officers of the Company and  
its Australian-based controlled entities. The contract of insurance prohibits disclosure of the nature of the liability and 
the amount of the premium.

Indemnification of Directors and officers
All current Directors and officers are indemnified under a deed of indemnity, insurance and access.

Non-audit services
The Company may decide to employ the auditor on assignments additional to their statutory audit duties where  
the auditor’s expertise and experience with the Company are important. Details of the amounts paid or payable  
to the auditor (PwC) for non-audit services provided during the year are set out below. 

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57

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
OTHER DIRECTORS’ REPORT DISCLOSURES CONTINUED

As PwC has been the company’s external auditors for many years, consistent with best corporate governance practices, 
the Board undertook a tender for the Company’s external audit provider during FY22. 

The Board established a selection committee consisting of two independent Non-Executive Directors and three 
members of the Company’s management team. Four firms were invited to participate in the tender, and three firms 
submitted responses. Responding firms provided a written proposal and participated in an oral presentation with  
the selection committee. At the conclusion of the process, the selection committee recommended the re-appointment 
of PwC. This recommendation was accepted by the Board and PwC has been re-appointed as the Company’s  
external auditor. 

The Board of Directors has considered the position and, in accordance with advice received from the Audit Committee, 
is satisfied that the provision of the non-audit services is compatible with the general standard of independence for 
auditors imposed by the Corporations Act 2001. The Directors are satisfied that the provision of non-audit services  
by the auditor, as set out below, did not compromise the auditor independence requirements of the Corporations Act 
2001 for the following reasons:

•  all non-audit services have been reviewed by the Audit and Risk Management Committees to ensure they do not impact 

the impartiality and objectivity of the auditor; and

•  none of the services undermine the general principles relating to auditor independence as set out in APES 110 Code  

of Ethics for Professional Accountants.

During the year the following fees were paid or payable for non-audit services provided by the auditor of the parent entity:

Other assurance services
  Due diligence services
  Other assurance services
Total remuneration for other assurance services

Taxation services

Tax compliance services, including review of Company income tax returns

Total remuneration for taxation services

Total remuneration for non-audit services 

2022
$’000

250,700

126,498

377,198

2021
$’000

697,175 

57,320 

754,495 

149,004
149,004

136,000 

136,000 

526,202

890,495 

58

carsales Annual Report 2022 
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is set 
out on page 60.

Rounding of amounts
The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 
2016/191, issued by the Australian Securities and Investments Commission, relating to the ‘rounding off’ of amounts in 
the Director’s Report. Amounts in the Director’s Report have been rounded off in accordance with that Class Order to 
the nearest thousand dollars or, in certain cases, to the nearest dollar.

Auditor
PwC continues in office in accordance with section 327 of the Corporations Act 2001.

Corporate governance report
As allowed under the ASX Corporate Governance Principles and Recommendations (Fourth Edition) the Company has 
included its report on compliance with the principles in the year to 30 June 2022 in the Corporate Governance section  
of the Investor Centre on the carsales website. The full report can be found at the following URL: https://shareholder.
carsales.com.au/governance/. 

This report is made in accordance with a resolution of Directors.

Pat O’Sullivan 
Chair  

Melbourne 
14 August 2022

Cameron McIntyre 
Managing Director and CEO

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59

carsales Annual Report 2022 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
AUDITOR’S INDEPENDENCE DECLARATION

Auditor’s Independence Declaration

As lead auditor for the audit of carsales.com Limited for the year ended 30 June 2022, I declare that to the best of my 
knowledge and belief, there have been: 

(a)  no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

(b)  no contraventions of any applicable code of professional conduct in relation to the audit.

This declaration is in respect of carsales.com Limited and the entities it controlled during the period.

Lisa Harker 
Partner 
PricewaterhouseCoopers   

Melbourne
14 August 2022

PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

60

carsales Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
O
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61

carsales Annual Report 2022 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
FINANCIAL STATEMENT CONTENTS

CONSOLIDATED FINANCIAL STATEMENTS 

OTHER ASSETS AND LIABILITIES 

Consolidated statement of comprehensive income 

Consolidated statement of financial position 

Consolidated statement of changes in equity 

Consolidated statement of cash flows 

NOTES TO THE CONSOLIDATED 
FINANCIAL STATEMENTS

Basis of preparation 

Key estimates and judgements 

Corporate information 

KEY PERFORMANCE

1.   Segment information 

2.   Revenue from contracts with customers 

3.   Other income and expenses 

4.   Earnings per share 

5.  

Income tax 

6.   Reconciliation of profit after income tax to

net cash inflow from operating activities 

FINANCING AND RISK MANAGEMENT

7.   Borrowings 

8.   Changes in assets and liabilities arising 

from financing activities 

9.   Financial assets and liabilities and fair 

value management 

10.  Financial risk management 

EQUITY

11.  Contributed equity 

12.  Reserves 

13.  Dividends 

63

64

65

67

68

68

68

69

72

74

75

77

83

84

85

87

90

95

96

99

14.  Trade and other receivables 

15.  Property, plant and equipment 

16.  Leases 

17.  Intangible assets 

18.  Payables and provisions 

GROUP STRUCTURE 

19.  Interests in other entities (including  

Trader Interactive) 

20.  Business combination 

21.  Parent entity financial information 

22.  Deed of cross guarantee 

23.  Related party transactions 

100

101

103

106

110

111

119

120

121

124

ITEMS NOT RECOGNISED 

24.  Events occurring after reporting period 

125

OTHER 

25.  Remuneration of auditors 

26.  Share-based payments 

27.  Other significant accounting policies 

DIRECTORS’ DECLARATION 

INDEPENDENT AUDITOR’S REPORT TO 
THE MEMBERS OF CARSALES.COM.LTD 

SHAREHOLDER INFORMATION 

CORPORATE DIRECTORY 

126

127

129

131

132

138

140

62

carsales Annual Report 2022  
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the Year Ended 30 June 2022

Continuing operations
Revenue from contracts with customers
Total revenue from continuing operations
Expenses
Costs of sale
Sales and marketing expenses
Service development and maintenance
Operations and administration
Earnings before interest, taxes, depreciation and amortisation
Depreciation and amortisation expense
Finance income
Finance costs
Changes in fair value of put options
Share of net profit from associates accounted for using the equity method
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income
Items that may be reclassified to profit or loss:
Exchange differences on translation of foreign operations
Remeasurement of post-employment benefit obligations
Movement in net investment hedge (net of tax)
Movement in cash flow hedge (net of tax)
Items that will not be reclassified to profit or loss:
Changes in financial assets at fair value (net of tax) through other 
comprehensive income
Other comprehensive income for the year

Total comprehensive income for the year

Profit for the year is attributable to:
Owners of carsales.com Ltd
Non-controlling interests

Total comprehensive income for the year is attributable to:
Owners of carsales.com Ltd
Non-controlling interests

Notes

2

2022  
$’000

2021  
$’000

509,077
509,077

427,164
427,164

3

19(c)

5(a)

(50,026)
(87,640)
(34,849)
(66,623)
269,939
(46,691)
 477 
(17,720)
 289 
 17,176 
 223,470 
(62,016)
161,454

30,105
(919)
-
(14,004)

(21,266)
(72,532)
(34,067)
(57,809)
241,490
(40,218)
608
(19,291)
-
3,946
186,535
(55,323)
131,212

(12,279)
251
17,575
25,593

12,372

2,139

27,554

33,279

189,008

164,491

160,816
638
161,454

188,370
638
189,008

130,704
508
131,212

163,983
508
164,491

Earnings per share for profit from continuing operations, attributable 
to the ordinary equity holders of the parent entity:
Basic earnings per share
Diluted earnings per share

Notes

2022  
Cents

2021  
Cents

4
4

56.9
56.8

52.6
52.5

The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.

63

F
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E

carsales Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2022

ASSETS

Current assets
Cash and cash equivalents
Trade and other receivables
Derivative assets
Inventory
Total current assets
Non-current assets
Investments accounted for using the equity method
Financial assets at fair value through other comprehensive income
Property, plant and equipment
Right-of-use assets
Deferred tax assets
Intangible assets
Other receivables
Total non-current assets
Total assets

LIABILITIES
Current liabilities
Trade and other payables
Lease liabilities
Borrowings
Current tax liabilities
Provisions
Contract liabilities
Total current liabilities
Non-current liabilities
Other payables
Lease liabilities
Borrowings
Other financial liabilities
Deferred tax liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets

EQUITY
Contributed equity
Reserves
Retained earnings
Non-controlling interests
Total equity

Notes

2022  
$’000

2021  
$’000

14
9

19(c)
19(d)
15
16
5
17
14

18
16
7

18

16
7
9
5
18

11
12

117,452
74,741
5,526
3,222
200,941

917,648
36,896
14,654
56,475
17,215
603,320
13,968
1,660,176
1,861,117

48,758
8,061
113
36,717
10,996
11,022
115,667

1,241
56,370
649,626
1,153
18,994
4,657
732,041
847,708
1,013,409

284,004
46,755
33,658
-
364,417

55,953
49,529
12,815
55,614
17,841
597,105
10,317
799,174
1,163,591

38,674
6,636
35
19,849
9,962
10,627
85,783

771
56,716
43,195
1,172
31,775
3,678
137,307
223,090
940,501

769,959
(1,865)
243,466
1,849
1,013,409

755,357
(21,440)
204,819
1,765
940,501

The above consolidated statement of financial position should be read in conjunction with the accompanying notes.

64

carsales Annual Report 2022CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the Year Ended 30 June 2022

F
I
N
A
N
C
A
L

I

S
T
A
T
E
M
E
N
T
S

C
O
N
S
O
L
I
D
A
T
E
D

Balance at 1 July 2021
Profit for the year
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign 
operations
Remeasurement of post-employment  
benefit obligations
Movement in cash flow hedge (net of tax)

Items that will not be reclassified to profit or loss
Changes in financial assets at fair value (net of 
tax) through other comprehensive income
Total comprehensive income for the year
Transfer of gain on disposal of equity 
investment at fair value through other 
comprehensive income to retained earnings 
Transactions with owners in their
capacity as owners:
Contributions of equity upon exercise 
of employee share options
Contributions of equity net of transaction 
costs and tax
Increase in share-based payment reserve 
inclusive of tax
Dividends paid to company shareholders
Dividends paid to non-controlling interests
Transactions with non-controlling interests
Balance at 30 June 2022

Attributable to owners  
of carsales.com Ltd

Notes

Contributed 
equity  
$’000
 755,357 
-

Reserves 
$’000
(21,440)
-

Retained 
earnings 
$’000
204,819 
 160,816 

Non-
controlling 
interests  
$’000
 1,765 
 638 

Total  
equity  
$’000
 940,501 
 161,454

-

-
-

 30,105 

(919)
(14,004)

-

-
-

- 

-
-

 30,105 

(919)
(14,004)

-
 - 

 12,372 
27,554

- 
160,816 

-
 638 

 12,372 
 189,008 

11

11

12

 6,120 

(1,436) 

-
9,918
-
-
769,959

-

(13,426)

 13,426 

-

-

-

-

-

-

-

 - 

 6,120 

(1,436)

5,690
-
-
(243)
(1,865)

-
(135,595)
-
-
243,466

-
-
(549)
(5)

 5,690 
(125,677)
(549)
(248)
1,849 1,013,409

65

carsales Annual Report 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSKEYPERFORMANCEFINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORYCONSOLIDATED STATEMENT OF CHANGES IN EQUITY CONT.
For the Year Ended 30 June 2022

Balance at 1 July 2020
Profit for the year
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign 
operations
Remeasurement of post-employment benefit 
obligations
Movement in cash flow hedge net of tax
Movement in net investment hedge net of tax

Items that will not be reclassified to profit  
or loss
Changes in financial assets at fair value (net of 
tax) through other comprehensive income
Total comprehensive income  
for the year
Transactions with owners in their 
capacity as owners:
Contributions of equity upon exercise of 
employee share options
Contributions of equity net of transaction 
costs and tax
Increase in share-based payment reserve 
inclusive of tax
Dividends paid to company shareholders
Dividends paid to non-controlling interests
Transactions with non-controlling interests
Balance at 30 June 2021

Attributable to owners  
of carsales.com Ltd

Notes

Contributed 
equity 
$’000
149,817
-

Reserves 
$’000
(56,253)
-

Retained 
earning 
$’000
197,235
 130,704

Non-
controlling 
interests 
$’000
763
508

Total 
equity 
$’000
291,562
131,212

(12,279)

251
25,593
17,575

2,139

(12,279)

251
25,593
17,575

2,139

-

-
-
-

-

-

-
-
-

-

-

-
-
-

-

-

33,279

130,704

508

164,491

11

11

12

4,563

591,117

-
9,860
-
-
755,357

-

-

-

-

-

-

4,563

591,117

3,633
-
-
(2,099)
(21,440)

-
(123,120)
-
-
204,819

-
-
(210)
704
1,765

3,633
(113,260)
(210)
(1,395)
940,501

The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.

66

carsales Annual Report 2022CONSOLIDATED STATEMENT OF CASH FLOWS
For the Year Ended 30 June 2022

F
I
N
A
N
C
A
L

I

S
T
A
T
E
M
E
N
T
S

C
O
N
S
O
L
I
D
A
T
E
D

Cash flows from operating activities
Receipts from customers (including GST)
Payments to suppliers and employees (including GST)
Income taxes paid
Net cash inflow from operating activities

Cash flows from investing activities
Payment for investment in non-controlling interests, associates and 
subsidiaries (net of cash acquired and loans to associate)
Investment in term deposits with maturity greater than 3 months
Proceeds from financial instruments held for investing activities
Proceeds from sale of/(payment for) financial assets at fair value through 
other comprehensive income
Payments for property, plant and equipment
Payments for intangible assets
Interest received
Proceeds from sale of property, plant and equipment
Dividends received from associates
Net cash outflow from investing activities

Cash flows from financing activities
Proceeds from issues of shares and other equity securities  
(net of transaction costs)
Proceeds from borrowings
Repayment of borrowings
Payment of loan establishment fees
Principal elements of lease payments
Deposits paid for leases
Proceeds from financial instruments held for financing activities
Dividends paid to company shareholders
Dividends paid to non-controlling interests
Interest paid
Net cash inflow/(outflow) from financing activities

Effects of exchange rates on cash and cash equivalents
Net increase in cash and cash equivalents

Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year

Notes

2022 
$’000

2021 
$’000

 549,461 
 (282,938)
 (62,880)
 203,643 

471,703
(214,852)
(56,347)
200,504

6

19(c)

13
19(b)

(849,036)
 (14,593)
54,472

25,385
 (7,882)
 (40,391)
 477 
 511 
 - 
(831,057)

 4,930
716,403
 (112,141)
 (699)
 (7,836)
(2,166)
-
 (125,677)
 (549)
 (10,175)
462,090

(18,892)
-
-

(2,169)
 (4,570)
 (28,780)
608
236
2,217
(51,350)

591,844
-
(500,298)
(2,364)
(8,242)
(2,223)
2,450
 (113,260)
 (210)
(11,343)
(43,646)

(1,228)
(166,552)

(1,441)
104,067

284,004
117,452

179,937
284,004

The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.

67

carsales Annual Report 2022NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSKEYPERFORMANCEFINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORYNOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
30 June 2022

Basis of preparation
carsales.com Ltd is a for-profit entity for the purpose of preparing the financial statements. The consolidated financial 
statements incorporate the assets and liabilities of all subsidiaries of carsales.com Ltd (‘Company’ or ‘parent entity’) as at  
30 June 2022 and the results of all subsidiaries for the year then ended. carsales.com Ltd and its subsidiaries together are 
referred to in this Financial Report as ‘the Group’ or ‘the consolidated entity’.

These general purpose financial statements:

(i)  Have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian 

Accounting Standards Board and the Corporations Act 2001.

(ii)  Comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards 

Board (IASB).

(iii) Have been prepared on a going concern basis.

(iv) Have been prepared under the historical cost convention except for the revaluation of financial assets and liabilities 

(including derivative instruments) measured at fair value through other comprehensive income.

Amounts in the financial statements are presented in Australian dollars with all values rounded to the nearest thousand 
dollars, or in certain cases, the nearest dollar, in accordance with the Australian Securities and Investments Commission 
Corporations Instrument 2016/191.

Key estimates and judgements
The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. 
It also requires management to exercise its judgement in the process of applying the Group’s accounting policies.

The estimation uncertainty is predominantly related to the fair value measurement and recoverable amount assessments 
for intangible assets (Note 17), the fair value measurement of acquired intangibles and their useful lives for equity 
accounted investments (Note 19), financial assets and liabilities at fair value through other comprehensive income (Note 9) 
and trade receivables (Note 14).

Other areas with a level of estimation includes deferred tax assets relating to tax losses, uncertain tax positions  
and Research and Development (R&D) claim (Note 5).

Corporate Information
carsales.com Ltd (the ‘Company’) is a company limited by shares, incorporated and domiciled in Australia. Its registered 
office and principal place of business is:

carsales.com Ltd 
Level 4, 449 Punt Road 
Richmond Vic 3121

The Financial Report was authorised for issue by the Directors on 14 August 2022. The Directors have the power to amend 
and reissue the Financial Report.

All press releases, Financial Reports and other information are available at our shareholders’ centre on our website:  
www.carsales.com.au. For queries in relation to our reporting, please call +61 (3) 9093 8600.

These financial statements have been streamlined where key information is grouped together for ease of understanding 
and readability. The notes include information which is required to understand the financial statements and is material and 
relevant to the operations, financial position and performance of the Group. Information is considered material and 
relevant if, for example:

•   the amount in question is significant because of its size or nature;

•   it is important for understanding the results of the Group;

•   it helps to explain the impact of significant changes in the Group’s business – for example, acquisitions; or

•   it relates to an aspect of the Group’s operations that is important to its future performance.

68

carsales Annual Report 2022KEY PERFORMANCE
This section provides information that the Directors consider most relevant to understanding performance and 
shareholder returns for the year and summarises the accounting policies, judgements and estimates relevant to 
understanding these line items.

1. Segment information

Accounting policy
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating 
decision maker. The chief operating decision maker has been identified as the Chief Executive Officer (‘CEO’).

Management has determined the operating segments based on the reports reviewed by the CEO that are used to 
make strategic decisions.

The Group’s operating segments are determined firstly based on location, and secondly by function, of the Group’s 
operations. Effective for the year ended 30 June 2022, the Group has a new reporting segment called “Australia – 
carsales Investments” which comprises the stand-alone investments in tyresales, Tyreconnect, RedBook Inspect and 
Placie. The rationale behind changing operating and reporting segments is to better align with the operating group 
structure and to separate stand-alone investments that have similar economic characteristics. Retaining these 
businesses within the previous segment view could potentially misrepresent the underlying performance of the 
higher margin core marketplace businesses. The Group has also aggregated investments in the USA, Chile, Mexico 
and Brazil into one segment called Americas. The prior year comparatives have also been restated to reflect this.

The Group principally operates in five business segments which are described below:

Operating  
segment

Nature of operations and primary source of 
revenue

Geographical  
location

Australia – Online 
Advertising Services

Online Automotive Classifieds and Display Advertising 
services.

Australia – Data, 
Research and Services

Automotive Data Services including software, analysis, 
research and reporting, valuation services, website 
development, hosting and photography services.

Australia

Australia

This segment also includes display and consumer 
advertising related to these divisions.

Australia – carsales 
Investments

Online Tyre Retail and Wholesale, Mobility Services and 
Inspection Services.

Australia

Americas

Asia

Online Automotive Classifieds, Display Advertising 
services and Automotive Data Services.

Brazil, Chile, Mexico and  
United States of America

Online Automotive Classifieds, Display Advertising 
services and Automotive Data Services.

South Korea, Malaysia, 
Thailand, China and Indonesia

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carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

1. Segment information continued
Segment analysis

Australia 
– Online 
Advertising  
Services  
$’000
 307,208 
 195,878 

Australia 
– Data, 
Research 
and 
Services 
$’000
 44,068 
 28,792 

Australia 
– carsales 
Investments 
$’000
 56,489 
 (1,877)

Americas 
$’000
 5,957 
 (1,640)

Asia 
$’000
 95,355 
48,786 

 (14)

 - 

 - 

 17,190 

 - 

 204,495 

 17,013 

 30,852 

940,051 

446,973 

Total 
$’000
 509,077 
 269,939 

 (46,691)
 (17,243)

289

 17,176 
 (62,016)
 (638)

160,816
 1,639,384 
 17,215 
 117,452 
 87,066 
 1,861,117 

2022
Segment revenue
EBITDA
Depreciation and amortisation 
expense
Net finance costs
Changes in fair value  
of put options
Share of net profit/(loss)  
from associates accounted  
for using the equity method
Income tax expense
Non-controlling interests
Profit for the year 
attributable to owners  
of carsales.com Ltd
Segment assets
Deferred tax assets
Cash and cash equivalents
Unallocated assets
Total assets

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Total  
$’000
427,164
241,490

(40,218)
(18,683)

3,946
(55,323)
(508)

130,704
784,224
17,841
284,004
77,522
1,163,591

*Australia 
– Online 
Advertising 
Services 
$’000
268,652
172,328

*Australia 
– Data, 
Research 
and 
Services 
$’000
40,392
25,943

Australia 
- carsales 
Investments 
$’000
27,138
974

Americas 
$’000
6,686
(815)

Asia  
$’000
84,296
43,060

(111)

-

-

4,057

-

222,641

16,930

3,317

78,331

463,005

RESTATED**  
2021
Segment revenue
EBITDA
Depreciation and amortisation 
expense
Net finance costs
Share of net profit/(loss)  
from associates accounted  
for using the equity method
Income tax expense
Non-controlling interests
Profit for the year 
attributable to owners  
of carsales.com Ltd
Segment assets
Deferred tax assets
Cash and cash equivalents
Unallocated assets
Total assets

*   Revenue includes the impacts of the COVID-19 Dealer Support Package. Refer Note 2 for details.
**   Balances for year ended 30 June 2021 have been restated with the change to operating segments.

Segment assets are measured in the same way as in the financial statements. Segment assets include goodwill, trade and 
other receivables, brands, customer relationships, property, plant and equipment, right-of-use assets, financial assets at 
fair value through other comprehensive income and investments accounted for using equity method. Unallocated assets 
include intangible and other assets utilised across multiple segments. All unallocated assets are assessed by the chief 
operating decision maker at a consolidated entity level.

Liabilities are not reported to the chief operating decision maker by segment. All liabilities are assessed at a consolidated 
entity level.

71

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

2. Revenue from contracts with customers

Accounting policy
The group derives revenue from the transfer of goods and services over time and at a point in time in the following 
product and reporting segment. Amounts disclosed as revenue are net of returns, agency commissions, trade 
allowances, rebates and amounts collected on behalf of third parties. Where services have not been provided but 
the Group is obligated to provide the services in the future, a contract liability is recognised.

Type of revenue

Reporting segment

Recognition criteria

Dealer leads

Online Advertising (Dealer)/
Americas/Asia

Dealer listings

Online Advertising (Dealer)/
Americas/Asia

Listing depth 
products

Online Advertising (Dealer/
Private)/Americas/Asia

Private listing

Online Advertising (Private)/
Americas/Asia

Bundled products

Online Advertising (Dealer)/
Americas/Asia

Sponsorship 
advertising

Online Advertising (Media)/
Americas/Asia

Performance 
advertising and 
contracts

Online Advertising (Media)/
Americas/Asia

Subscription services Online Advertising (Dealer/
Media)/Data, Research and 
Services/Americas/Asia

Sale of goods

carsales Investments

Inspection services

carsales Investments/Asia

R&D tax rebate

Online Advertising

Lead revenues are recognised at a point in time upon 
delivery of the lead to the dealers’ lead management 
system.

Dealer listings usually have a definite end date to the 
advertisement and where they do not, an average duration 
is calculated. Revenues are recognised over the period 
during which the listing is displayed on the carsales 
network.

Transaction value is allocated to customer service 
obligations based on the fair value and revenue is 
recognised over the period during which the product  
is displayed on the carsales network.

Private listings remain effective until the consumer 
removes the advertisement. Revenues are recognised over 
the average number of days advertisements are displayed 
(based on historical trends). 

Includes the combination of dealer advertising products 
and corporate media services under one single contractual 
price. Whilst the products are bundled, each individual 
service has its own distinct performance obligations and 
stand-alone selling prices (used to determine the fair value 
of each service). Revenue is recognised over time as 
performance obligations are fulfilled.

Revenues from sponsorship advertising are recognised in 
the period over which the advertisements are placed or 
displayed, depending on the type of contract.

Revenues from performance advertising and performance 
contracts are recognised when the performance measure 
occurs and is generated (e.g. cost per click).

Subscription revenues are recognised over the 
subscription period.

Revenues are recognised at a point in time when goods 
have been provided to a customer.

Revenue from vehicle inspection services are recognised 
when the inspection service is performed.

The research and development claim of the Company 
gives rise to a tax offset and this tax offset is recognised  
as other income.

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Disaggregation of revenue from contracts with customers
The Group derives revenue from the transfer of goods and services over time and at a point in time in the following  
major segments:

2022

Dealer

Private

Media

Total revenue from 
external customers

Revenue is recognised:

At a point in time

Over time

RESTATED*  
2021

Dealer

Private

Media

Total revenue from 
external customers

Revenue is recognised:

At a point in time

Over time

Australia 
– Data, 
Research 
and 
Services 
$’000

Australia 
– carsales 
Investments 
$’000

Americas 
$’000

Asia 
$’000

Total
$’000 

Australia 
– Online 
Advertising 
Services 
$’000

183,314

69,391

54,503

307,208

44,068

56,489

5,957

95,355

509,077

169,770

137,438

7,928

36,140

56,489

-

495

5,462

42,694

52,661

277,376

231,701

Australia 
– Data, 
Research 
and 
Services 
$’000

Australia 
– carsales 
Investments 
$’000

Americas 
$’000

Asia 
$’000

Total 
$’000

Australia 
– Online 
Advertising 
Services 
$’000

166,333

55,303

47,016

268,652

40,392

27,138

6,686

84,296

427,164

150,624

118,028

7,970

32,422

27,138

-

507

6,179

27,291

57,005

213,530

213,634

* The allocation of revenues for the year ended 20 June 2021 between the group’s operating segments have been restated to align with the  

new operating segments.

As part of a Dealer Support Package offered to customers in response to COVID-19 during FY21, carsales provided a  
100% rebate for all fixed and variable fees for Victorian Metropolitan dealer customers incurred during Stage 4 lockdown  
(6 August 2020 – 27 October 2020). The total support provided to dealers was $10.6 million. Revenue above is net  
of these rebates.

73

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

3. Other income and expenses

Accounting Policy

(i) Defined benefit obligations

ENCARSALES.COM Ltd, the Group’s subsidiary in South Korea, operates a defined benefit plan, under which 
amounts to be paid as retirement benefits are determined by reference to a formula based on employee’s earnings 
and years of service. The defined benefit asset or liability comprises the present value of the defined benefit 
obligations, less past service costs and actuarial gains and losses not yet recognised and less the fair value of plan 
assets out of which the obligations are to be settled. The cost of providing benefits under the defined benefit plan  
is determined using the projected unit credit method. The discount rate used in calculating the present value of 
defined benefit obligations is determined by reference to market yields at the end of the reporting period on  
high quality corporate bonds of a term consistent with the term of the post-employment benefit obligations. 
Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding net interest,  
and the return on plan assets, are recognised immediately in the statement of financial position with a 
corresponding debit or credit to reserves through OCI in the period in which they occur.

Remeasurements are not reclassified to profit or loss in subsequent periods. Past service costs are recognised  
in profit or loss on the earlier of:

•  the date of the plan amendment or curtailment; and

•  the date that the Company recognises restructuring-related costs.

(ii) JobKeeper

Receipts from the Australian JobKeeper program are accounted for as government grants and are included  
in personnel expenses as a contra amount. There are no unfulfilled conditions or other contingencies attached  
to these grants.

(iii) Finance costs

Fees paid on the establishment of loan facilities are recognised net against the loan and amortised on a straight-line 
basis over the term of the facility. Borrowing costs incurred for the construction of any qualifying asset are 
capitalised during the period of time that is required to complete and prepare the asset for its intended use or sale. 
Other borrowing costs are expensed. The unwinding of the discount on put option liabilities are recognised as a 
finance expense.

Lease payments are allocated between principal and finance cost. The finance cost is charged to profit or loss over 
the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for 
each period.

Total profit before income tax includes the following specific expenses:
Employee benefits
JobKeeper grants
Defined benefit expense – ENCARSALES.COM, Ltd.

Interest – borrowings
Interest – leases
Other finance costs
Hedging costs
Amounts reclassified to income statement from Cash Flow Hedge Reserve
Total finance costs

74

2022  
$’000

96,109
-
1,562

9,378
1,563
3,119
-
3,660
17,720

2021 
$’000

96,577
(6,048)
1,415

8,450
1,577
2,929
1,541
4,794
19,291

carsales Annual Report 2022 
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4. Earnings per share

Accounting Policy
Basic earnings per share is calculated by dividing:

•  the profit attributable to equity holders of the Company, excluding any costs of servicing equity other than 

ordinary shares;

•  by the weighted average number of ordinary shares outstanding during the financial year, adjusted for bonus 

elements in ordinary shares issued during the year.

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take  
into account:

•  the post income tax effect of interest and other financing costs associated with dilutive potential ordinary  

shares; and

•  the weighted average number of additional ordinary shares that would have been outstanding assuming the 

conversion of all dilutive potential ordinary shares.

Options and performance rights granted to employees under the carsales.com Ltd Employee Option Plan are 
considered to be potential ordinary shares and have been included in the determination of diluted earnings  
per share to the extent to which they are dilutive. The options and performance rights have not been included  
in the determination of basic earnings per share. Details relating to the options are set out in Note 26.

(a) Reported earnings per share

Earnings per share for profit attributable  
to the ordinary equity holders of the Company:
Reported profit attributable to equity holders  
of the Company
Weighted average number of ordinary shares
Dilutive impact of options
Dilutive impact of performance rights
Total weighted average number of ordinary shares  
used in EPS calculation
Reported earnings per share/cents

Basic earnings  
per share

Diluted earnings  
per share

2022

 2021

2022

 2021

160,816,000
282,482,797
-
-

130,704,000
248,343,705
-
-

160,816,000
282,482,797
85,592
336,695

130,704,000
248,343,705
156,884
379,307

282,482,797
56.9

248,373,705
52.6

282,905,084
56.9

248,879,896
52.5

75

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

4. Earnings per share continued
(b) Adjusted earnings per share*

Reported profit attributable to equity holders  
of the Company
Add: Dealer Support Packages (net of tax)
Add: restructuring and M&A transaction costs (net of tax)
Add: hedge close-out and FX
Add: one-off tax adjustment
Add: acquired intangibles amortisation (net of tax)
Add / Less: fair value revaluations (net of NCI)
Add: Trader Interactive non-recurring costs
Adjusted profit attributable to equity holders of the 
Company for continuing operations
Adjusted earnings per share/cents for continuing 
operations*

Basic earnings  
per share

Diluted earnings  
per share

2022

2021

2022

2021

160,816,000
321,000
1,327,000
3,222,000
-
23,050,000
(339,000)
6,431,000

130,704,000 
7,456,000
1,459,000
4,793,000
1,306,000
6,662,000
400,000
-

160,816,000
321,000
1,327,000
3,220,000
-
23,050,000
(339,000)
6,431,000

130,704,000
7,456,000
1,459,000
4,793,000
1,306,000
6,662,000
400,000
-

194,828,000

152,780,000

194,828,000

152,780,000

69.0

61.5

68.8

61.4

*   The Directors believe the presentation of “adjusted earnings per share” provides a useful measure to assess the performance of the Group by 

excluding significant one-off items of income and expense to arrive at an adjusted profit measure which reflects the underlying financial 
performance of the Group.

76

carsales Annual Report 20225. Income tax

Accounting Policy
The income tax expense or benefit for the period is the tax payable on the current period’s taxable income based 
on the applicable income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities 
attributable to temporary differences and to unused tax losses. The current income tax charge is calculated on  
the basis of the tax laws in the countries where the Company’s subsidiaries and associates operate and generate 
taxable income. The Group establishes provisions where appropriate on the basis of amounts expected to be paid 
to tax authorities.

Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax 
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, the 
deferred income tax is not accounted for if it arises from initial recognition of an asset or liability in a transaction 
other than a business combination that at the time of the transaction affects neither accounting nor taxable profit 
or loss. Deferred income tax is determined using tax rates (and laws) that are expected to apply when the related 
deferred income tax asset is realised or the deferred income tax liability is settled.

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable 
that future taxable amounts will be available to utilise those temporary differences and losses. Deferred tax 
liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of 
investments in controlled entities where the Company is able to control the timing of the reversal of the temporary 
differences and it is probable that the differences will not reverse in the foreseeable future. Where there are current 
and deferred tax balances attributable to amounts recognised directly in equity, they are also recognised directly  
in equity.

The Group parent entity, carsales.com Ltd, and the controlled entities in the tax consolidated group account  
for their own current and deferred tax amounts. These tax amounts are measured as if each entity in the tax 
consolidated group continues to be a standalone taxpayer in its own right.

Adoption of Voluntary Tax Transparency Code
On 3rd of May 2016, the Australian Treasurer released a Voluntary Tax Transparency Code (the TTC). The TTC 
recommends additional tax information be publicly disclosed to help educate the public about large corporate 
compliance with Australia’s tax laws. The Group fully supports the TTC and signed up to it from the financial year 
ended 30 June 2019. Accordingly, the income tax disclosures in this Note include all relevant recommended 
additional disclosures of Part A of the Code.

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carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

5. Income Tax continued

Key Assumption/Accounting Estimates
Deferred tax assets relating to tax losses

The Group recognises deferred tax assets relating to carry forward tax losses to the extent there are sufficient 
taxable temporary differences relating to the same taxable authority and the same subsidiary against which the 
unused tax losses can be utilised. However, utilisation of the tax losses also depends on the ability of the entity  
to satisfy certain tests at the time the losses are recouped.

Uncertain tax positions

The Group applies its current understanding of the tax law to estimate tax liabilities where the ultimate tax position 
is uncertain. When the tax position is ultimately determined or tax laws change, the actual tax liability may differ 
from this current estimate.

Research and development (R&D) claim

The research and development claim available to the Company is estimated in the accounts because a full 
assessment of the position cannot be made by the year end. It is the policy of the Company to only bring to account 
that preliminary portion of expenses that is reasonably expected to be claimable at period end.

(a) Income tax expense

Current tax
Adjustments for current tax of prior periods
Deferred tax
Adjustments for deferred tax of prior periods

Deferred income tax expense included in income tax expense comprises:
Increase in deferred tax assets
Decrease in deferred tax liabilities

2022  
$’000
 65,120 
 (684)
 (2,517)
 97 
 62,016 

 (678)
 (1,839)
 (2,517)

2021  
$’000
61,920
(1,564)
(5,079)
46
55,323

(3,247)
(1,832)
(5,079)

78

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(b) Numerical reconciliation of income tax expense 

Profit from continuing operations before income tax expense
Tax at the Australian tax rate of 30.0% (2021 – 30.0%)
Tax effect of amounts which are not deductible/(taxable) in calculating taxable income:
Non-assessable income (R&D tax offset) (a)
Share options (b)
Sundry items
Non-deductible amortisation
Adjustment for prior periods
Current year losses for which no deferred tax has been recognised or tax losses written off (c)
Tax relating to net profit from associates (d)
Other assessable income
Income tax differential (effect of foreign tax rates) (e)
Income tax expense

2022  
$’000
 223,470 
 67,041 

2021 
$’000
186,535
55,960

 (395)
 (1,523)
3,084 
 1,098 
 (587)
 1,591 
 (5,153)
-
 (3,140)
 62,016 

(315)
(597)
1,809
1,438
(1,517)
1,420
(1,184)
1,126
(2,817)
55,323

(c) Amounts recognised directly into equity
Aggregate current and deferred tax arising in the reporting period and not recognised in the income statement or other 
comprehensive income but directly (credited) or debited to equity:

Current tax – (credited) directly to equity
Net deferred tax – debited/(credited) directly to equity (f)

2022  
$’000
 (31)
 9,913 
 9,882 

2021  
$’000
(588)
(13,870)
(14,458)

Explanation of key tax items:
(a)  Group’s utilisation of research and development tax incentives.

(b)  Amount relating to the provision of equity incentives.

(c)  Amount relating to tax losses for which a deferred tax asset has not been recognised. The majority of these 

losses may be carried forward for between 5 and 10 years. Also includes amount relating to the write-off of tax 
losses for which a deferred tax asset had previously been recognised.

(d)  The Group’s share of associates’ results taken up in Group results, net of tax expense.

(e)  The Group’s profits are taxed at prevailing statutory rates which vary to the Australian statutory tax rate (as  

noted in the table below).

(f)   Related to equity incentives, capitalised equity raising costs and cross-currency interest rate swap.

79

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

5. Income Tax continued
Statutory tax rates:

Country
Australia
New Zealand
Malaysia
China
Thailand
South Korea
USA
Argentina
Chile
Mexico

(d) Effective tax rate

Profit before income tax expense (A)
Income tax expense (B)
Effective tax rate (B/A)

2022
30%
28%
24%
25%
20%
22%
21%
35%
27%
30%

2021
30%
28%
24%
25%
20%
22%
21%
35%
27%
30%

2022  
$’000
 223,470 
 62,016 
28%

2021  
$’000
186,535
55,323
30%

The effective tax rate for 2022 was affected by tax relating to net profit from associates, without which the effective tax rate 
for the year would have been 30%.

The effective tax rate for 2021 was affected by net non-deductible items relating to the terminated cross-currency swaps, 
without which the effective tax rate for the year would have been 28%.

Tax losses

Unused tax losses for which no deferred tax asset has been recognised
Potential tax benefit

2022 
$’000
 29,287 
9,203

2021 
$’000
23,525
7,451

The unrecognised tax losses were incurred by loss making subsidiaries that are not likely to generate taxable income in the 
foreseeable future.

80

carsales Annual Report 2022F
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(e) Deferred tax assets
The balance comprises temporary differences attributable to:

Employee 
benefits 
$’000
 3,328 

Employee 
Share 
Trust  
$’000
 2,109 

Doubtful 
debts  
$’000
 658 

Expense 
accruals 
$’000
4,511 

Intan- 
gibles  
$’000
 (3,079)

Tax  
losses 
$’000
 2,219 

Derivatives 
$’000
 - 

Total 
Other 
$’000
$’000
 8,095  17,841 

 219 

 965 

 (363)

 (1,760)

 540 

-

 (919)

-

-

-

-

-

 (81)
 3,466 

-
 2,155 

-
 295 

-
 2,751 

-
 (2,539)

 (56)
 2,163 

-

 1,077 

 678 

 - 

-
 - 

 (246)  (1,165)

(2)

 (139)
 8,924  17,215 

3,758

1,910

733

703

(1,693)

2,155

4,254

3,884 15,704

(397)

153

(75)

3,808

(1,386)

-

46

(33)
3,328

-
2,109

-

-
658

2

-

-

1,142

3,247

(4,254)

3,069

(1,139)

-

-

-
4,511

-
(3,079)

62
2,219

-
-

-

29
8,095 17,841

At 1 July 2021
(Charged) / 
credited to profit 
or loss
Credited / 
(charged) directly 
to equity
Exchange 
differences
At 30 June 2022

At 1 July 2020
(Charged) / 
credited to profit 
or loss
Credited / 
(charged) directly 
to equity
Exchange 
differences
At 30 June 2021

Deferred tax assets expected to be recovered within 12 months
Deferred tax assets expected to be recovered after more than 12 months

2022  
$’000
 10,375 
 6,840 
 17,215 

2021  
$’000
10,977 
6,864
17,841

Certain liability balances are shown as part of deferred tax assets, as they originate in the same jurisdiction as, and can be 
offset against, other deferred tax assets. The liability balance for intangibles shown as part of deferred tax assets relates  
to in-house developed and capitalised software in Australia. 

81

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

5. Income Tax continued
(f) Deferred tax liabilities
The balance comprises temporary differences attributable to:

At 1 July 2021
Charged/(credited) to the profit or loss
Charged/(credited) directly to equity 
Acquired intangibles
Exchange differences
At 30 June 2022

At 1 July 2020
Charged/(credited) to the profit or loss
Charged directly to equity
Acquired intangibles
Exchange differences
At 30 June 2021

Intangibles 
$’000
 16,766 
 (1,839)
-
 (1,366)
 (827)
 12,734 

Fair Value 
Investment 
$’000
 4,911 
-
 (309)
-
-
 4,602 

Derivatives 
$’000
 10,098 
-
 (8,440)
-
-
 1,658 

Withholding 
Tax 
$’000
 - 
-
-
-
-
 - 

15,564
(1,832)
-
3,529
(495)
16,766

-
-
4,911
-
-
4,911

-
-
10,098
-
-
10,098

Total 
$’000
 31,775 
 (1,839)
 (8,749)
 (1,366)
 (827)
 18,994 

15,564
(1,832)
15,009
3,529
(495)
31,775

2021  
$’000
11,930
 19,845
 31,775

-
-
-
-
-
-

2022  
$’000
 3,498 
 15,496 
 18,994 

Deferred tax liabilities expected to be settled within 12 months
Deferred tax liabilities expected to be settled after more than 12 months

82

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6. Reconciliation of profit after income tax to net cash inflow from  

operating activities

Profit for the year
Depreciation and amortisation
Non-cash employee benefits expense – share-based payments
(Gain)/loss on disposal of assets
Net finance related costs
Share of net profit from associates accounted for using the equity method
Bad debts written-off/(recovered)
Changes in fair value of put options
Building refurbishment incentive income
Adjustments relating to purchase of non-controlling interests and subsidiaries
Foreign exchange differences

Change in operating assets and liabilities:

(Increase)/decrease in trade debtors
(Increase) in inventory

  Decrease/(increase) in deferred tax assets

Increase in trade creditors and other liabilities
Increase/(decrease) in contract liabilities
Increase in provision for income taxes payable
(Decrease) in deferred tax liabilities
Increase in other provisions

Net cash inflow from operating activities

2022 
$’000
161,454
46,691
2,098
(145)
17,243
(17,176)
182
(289)
(584)
-
-

(10,219)
(2,256)
129
7,410
395
596
(2,903)
1,017
203,643

2021
$’000
131,212
40,218
3,001
260
18,683
(3,946)
(401)
-
(597)
(323)
208

4,037
-
(2,690)
5,306
(426)
1,785
(1,248)
5,425
200,504

83

carsales Annual Report 2022FINANCING ANDRISK MANAGEMENTEQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

FINANCING AND RISK MANAGEMENT
This section provides information about the capital management practices of the Group, the Group’s exposure and 
management of various financial risks and explains how these affect the Group’s financial position and performance.

7. Borrowings

Accounting policy
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently 
measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption 
amount is recognised in the profit or loss over the period of the borrowings using the effective interest method.

Fees paid on the establishment of loan facilities are recognised net against the loan and amortised on a straight- 
line basis over the term of the facility.

Borrowings are derecognised from the consolidated statement of financial position when the obligation specified in 
the contract is discharged, cancelled or expired. The difference between the carrying amount of a financial liability 
that has been extinguished or transferred to another party and the consideration paid, including any non-cash 
assets transferred or liabilities assumed, is recognised in other income or other expenses.

Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement  
of the liability for at least 12 months after the balance sheet date.

Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that  
is required to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed  
in the period in which the expense is incurred.

Current borrowings
Non-current borrowings

2022  
$’000
113
649,626
649,739

2021  
$’000
35
43,195
43,230

At 30 June 2022 carsales.com Ltd had a syndicated revolving loan facility and established a $900.0 million debt facility 
under a Common Terms Deed (CTD) documentation structure as follows:

Facility
Tranche A
Tranche B
Total

Commitment 
$’000
690,000
210,000
900,000

Drawn  
at close  
$’000
441,000
210,000
651,000

Maturity 
date
5 July 2024
4 July 2023

Seven financiers are part of the syndicate and each of these financiers entered into a bilateral facility agreement with  
the Company under the CTD documentation structure. The syndicate comprises National Australia Bank Limited (NAB), 
Australia and New Zealand Banking Group Limited (ANZ), Hongkong and Shanghai Banking Corporation Limited (HSBC), 
Westpac Banking Corporation (WBC), Commonwealth Bank of Australia (CBA), MUFG Bank Limited and Bank of China 
(BOC).

Borrowings under this loan facility bear interest at a floating rate of BBSY Bid plus a margin, with margin based on  
a net leverage ratio of the Group. The Group has complied with all debt covenants throughout the reporting period.

On 8 July 2022, the $651.0 million drawn down amount was repaid to the Tranche A and Tranche B financiers. 

84

carsales Annual Report 2022 
 
 
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The Group has access to the following undrawn borrowing facilities at the end of the reporting period:

Floating rate
– Expiring within one year
– Expiring within two to five years

2022 
$’000
-
249,000
249,000

2021 
$’000
-
855,000
855,000

Bank guarantee facility
Guarantees in respect of bank facilities drawn down but not included in the accounts of the Group are $4.0 million  
(2021: $2.4 million).

8. Changes in assets and liabilities arising from financing activities
The table below shows cash and non-cash changes in assets and liabilities for which cash flows were, or will be, classified 
as financing activities in the Consolidated Statement of Cash Flows.

Liabilities from  
financing activities

Other financial  
liabilities/assets

2022
Opening balance

Borrowings 
$’000
(43,230)

Lease 
liabilities 
$’000
(63,352)

Other 
financial 
liabilities 
$’000
(1,172)

Derivative 
(liabilities)/
assets  
$’000
33,658

Lease 
deposits 
$’000
10,464

Net cash flows from financing activities
Acquisitions – leases
Modification – leases
Fair value through OCI (net of tax)
Fair value through P&L
Foreign exchange adjustments
Other changes
Closing balance

 (604,262)
-
-
-
-
-
(2,247)
 (649,739)

 7,836 
 (7,617)
 (1,652)
-
-
 354 
-
 (64,431)

-
-
-
 (243)
 289 
-
 (27)
 (1,153)

-
-
-
(33,658)
-
-
-
-

2,166
-
-
-
-
(505)
-
12,125

Total  
$’000
(63,632)

(594,260)
 (7,617)
 (1,652)
(33,901)
 289 
(151)
(2,274)
(703,198)

85

carsales Annual Report 2022EQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

8. Changes in assets and liabilities arising from financing activities
continued

Liabilities from  
financing activities

Other financial  
liabilities/assets

Borrowings 
$’000
(544,244)

Lease 
liabilities 
$’000
(60,971)

Other 
financial 
liabilities 
$’000
-

Derivative 
(liabilities)/
assets 
$’000
(14,179)

Other 
finance 
receiv- 
ables/ 
(payables) 
$’000
(899)

Lease 
Deposits 
$’000
8,443

Total 
$’000
(611,850)

500,298
-
-
-
-

8,242
(4,263)
(6,487)
270
-

-

-

-
-
-
-
-

-

-
716
(43,230)

(143)
-
(63,352)

-
(1,172)
(1,172)

(4,772)
-
-
-
-

52,609

-
-
33,658

2,322
-
-
-
(1,423)

-

-
-
-

2,223
-
-
-
-

508,313
(4,263)
(6,487)
270
(1,423)

-

52,609

(202)
-
10,464

(345)
(456)
(63,632)

2021
Opening balance

Net cash flows from 
financing activities
Acquisitions – leases
Modification – leases
Termination – leases
Finance costs
Fair value through OCI  
(including tax)
Foreign exchange 
adjustments
Other changes
Closing balance

86

carsales Annual Report 20229. Financial assets and liabilities and fair value measurement

Accounting Policy
Derivatives

Classification of derivatives

The Company designates derivatives as hedging instruments in respect of foreign currency risk and interest rate risk 
in fair value hedges, cash flow hedges, or hedges of net investments in foreign operations as appropriate. Hedges  
of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

Derivatives are only used for economic hedging purposes and not as speculative investments. However, where 
derivatives do not meet the hedge accounting criteria, they are classified as ‘held for trading’ for accounting 
purposes and are accounted for at fair value through profit or loss. The hedges are presented as current assets  
or liabilities to the extent they are expected to be settled within 12 months after the end of the reporting period.

Cash flow hedges

Cash flow hedges are accounted for as follows: the fair value gain or loss associated with the effective portion of the 
derivative is recognised initially in other comprehensive income (cash flow hedge reserve – CFHR) and then recycled 
to the income statement in the same period that the hedged item affects the income statement. Any ineffective 
portion of the gain or loss on the hedging instrument is recognised in the income statement immediately.

Hedge effectiveness

Hedge effectiveness is determined at the inception of the hedge relationship, and through periodic prospective 
effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging 
instrument.

For the cross-currency swaps, the Company enters into hedge relationships where the critical terms of the hedging 
instrument match exactly with the terms of the hedged item. Therefore, it has adopted a 1:1 ratio. The Company 
therefore performs a qualitative assessment of effectiveness. If changes in circumstances affect the terms of the 
hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument,  
a hypothetical derivative method is used to assess effectiveness.

For the interest rate swaps that have similar critical terms as the hedged item, such as reference rate, reset dates, 
payment dates, maturities and notional amount, as all critical terms matched during the year, the economic 
relationship was 100% effective.

Trade and other receivables

Trade and other receivables are recognised initially at fair value and subsequently measured at amortised cost, less 
the loss allowance. Due to the short-term nature of the receivables, the carrying amount is assumed to approximate 
their fair value. The balance of trade and other receivables are disclosed in Note 14.

Financial assets at fair value through other comprehensive income

Refer Note 19(d) for the accounting policy on financial assets at fair value through other comprehensive income.

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carsales Annual Report 2022EQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

9. Financial assets and liabilities and fair value measurement continued
Financial assets and liabilities that are carried at fair value are measured by the following fair value measurement hierarchy:

Level 1: the fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity 
securities) is based on quoted market prices at the end of the reporting period;

Level 2: the fair value of financial instruments that are not traded in an active market is determined using valuation 
techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. 
If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2; and

Level 3: if one or more of the significant inputs is not based on observable market data, the instrument is included  
in level 3.

Financial asset/liability
Financial assets measured at fair value through OCI
Quoted equity instruments which are listed on the Australian Securities 
Exchange (“ASX”) (i)
Derivative financial assets (ii)
Unquoted financial assets (iii)
Financial liabilities measured at fair value through profit or loss
Other financial liabilities (iv)

Level

2022  
$’000

2021 
$’000

1
2
3

3

10,455
5,526
26,441

35,267
33,658
14,262

(1,153)

(1,172)

(i)  During the year, the Group sold its investment in iCar Asia, refer to Note 19 for more details.

(ii)  The balance at 30 June 2022 represents forward foreign exchange contracts held for the purpose of hedging the Trader 
Interactive purchase. The forward exchange contracts are valued at the present value of future cash flows based on  
the forward exchange rates at the balance sheet date. 

(iii) Investments in unquoted financial assets are measured at fair value through other comprehensive income and  

includes PromisePay Pte Ltd, mx51 Group Pty Ltd and other equity investments, refer Note 19(d). The fair value of the 
investments in PromisePay Pte Ltd and mx51 has been calculated after strategic investors injected capital into the 
businesses during the year. The fair value of other equity investments is based on capital contributions and adjusted 
for independent valuation performed by the fund managers on a quarterly basis.

(iv)  Other financial liabilities are put option liabilities which are based on a contractual multiple of future earnings of an 
acquired subsidiary for a defined period and were valued at financial year end based on forecast of earnings for the 
acquired subsidiary.

88

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a) Derivative assets and liabilities
At June 2022, the Group holds forward foreign exchange contracts for USD with a total notional value of $1,213.4 million 
and a maturity of September 2022. These contracts are designated as a cash flow hedge to protect against foreign 
exchange fluctuations relating to purchase of the remaining 51% of Trader Interactive (refer note 24). Unrealised hedge 
gains and losses are recognised in the cash flow hedge reserve net of tax.

In May 2021, the Group entered into forward foreign exchange contracts for USD with a total notional value of $812.8 
million and a maturity of December 2021. These contracts were designated as a cash flow hedge to protect against foreign 
exchange fluctuations relating to the initial investment in Trader Interactive and unrealised hedge gains and losses were 
recognised in the cash flow hedge reserve net of tax. In August 2021, the forward contracts were settled resulting in a net 
cash inflow of $54.5 million. The net gain was recycled from the cash flow hedge reserve and the effective portion was 
capitalised to the investment in Trader Interactive. The ineffective portion ($2.0 million) was recognised in the income 
statement in net finance costs.

In the prior year, the Company also closed out its AUD:KRW Non-Deliverable Cross-Currency Swaps resulting in a net cash 
inflow of $4.8 million. During the year, $5.7 million (2021: $4.8 million) was recycled from the cash flow hedge reserve  
to the income statement as a finance cost.

The following tables detail information regarding forward foreign exchange (FX) contracts and the cross-currency interest 
rate swaps designated in cash flow hedge or net investment hedge relationships at the end of the reporting period and 
their related hedged items. All derivative assets and liabilities were closed out as at 30 June 2022. 

Carrying 
amount of 
hedging 
instrument 
Assets/ 
(Liabilities) 
$’000

Current 
notional 
amount 
$’000

Change in 
value of 
hedging 
instrument 
$’000

Change in 
value of 
hedged 
item  
$’000

Ineffec-
tiveness 
$’000

CFH 
Reserve 
opening 
balance 
before tax 
Dr/(Cr)  
$’000

Movement 
in CFH 
Reserve  
Dr/(Cr)  
$’000

Closing CFH 
Reserve 
before tax 
Dr/(Cr)  
$’000

-

-

-

-

-

11,376

(5,688)

5,688

1,213,375
1,213,375

5,526
5,526

(28,132)
(28,132)

(28,132)
(28,132)

(2,029)
(2,029)

(33,658)
(22,282)

28,132
22,444

(5,526)
162

Carrying 
amount of 
hedging 
instrument 
Assets/ 
(Liabilities) 
$’000

Current 
notional 
amount 
$’000

Change in 
value of 
hedging 
instrument 
$’000

Change in 
value of 
hedged 
item  
$’000

Ineffec-
tiveness 
$’000

CFH
Reserve 
opening 
balance 
before
tax Dr/(Cr)
$’000

Movement
in CFH 
Reserve  
Dr/(Cr)
$’000

Closing
CFH
Reserve
before
tax Dr/(Cr)
$’000

-

-

-

-

812,845
812,845

33,658
33,658

33,658
33,658

33,658
33,658

-

-
-

19,156

(7,780)

11,376

-
19,156

(33,658)
(41,438)

(33,658)
(22,282)

89

2022
Cash flow 
hedges 
Cross-
currency 
interest rate 
swap
Forward 
foreign 
exchange 
contracts
Total

2021
Cash flow 
hedges
Cross-
currency 
interest rate 
swap
Forward 
foreign 
exchange 
contracts
Total

carsales Annual Report 2022EQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

10. Financial risk management 

Accounting Policy
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at 
call with financial institutions, other short-term highly liquid investments with original maturities of three months or 
less that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in 
value and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the consolidated 
statement of financial position.

The Company’s exposure to interest rate risk is discussed below.

The Group’s activities expose it to a variety of financial risks: foreign exchange risk, price risk, credit risk, interest rate risk 
and liquidity risk. The Group’s overall risk management program focusses on the unpredictability of financial markets and 
seeks to minimise potential adverse effects on the financial performance of the Group. The Group uses different methods 
to measure different types of risk to which it is exposed.

Risk management is the responsibility of the Head of Tax, Treasury and Risk and the Chief Financial Officer (CFO) and 
follows approved policies of the Board of Directors. They identify, evaluate and hedge financial risks in close cooperation 
with the Group’s operating leaders. 

(a) Market risk
(i) Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, 
primarily with respect to the Brazilian Real (BRL), the South Korean Won (KRW), the Mexican Peso (MXP), the US Dollar 
(USD), the Chilean Peso (CLP) and the Argentinian Peso (ARS). Foreign exchange risk arises from future commercial 
transactions and recognised assets and liabilities denominated in a currency that is not the functional currency of the 
relevant group entity.

Risk management policy

Hedging contracts are sometimes used to manage foreign currency exchange risk. The Company has a treasury strategy 
and a treasury policy and will actively hedge any major known commitments using forward exchange contracts. Trading 
and dividend cash flows between associates, subsidiaries and the Group are not hedged unless the cash flows are 
significant and the amount and future payment date are certain.

Material arrangements in place at reporting date

In June 2022, the Group entered into forward foreign exchange contracts for USD with a total notional value of  
$1,213.4 million and a maturity of 30 September 2022. These contracts were entered into to protect against foreign  
exchange fluctuations relating to the acquisition of the remaining 51% interest in Trader Interactive, which will be completed 
in FY23 (refer to Note 24 for more details). They have been designated as a cash flow hedge for accounting purposes.

90

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Material exposures and sensitivity

The analysis below reflects management’s view of possible movements in relevant foreign currencies against the Australian 
dollar. The table summarises the range of possible outcomes that would affect the Group’s net profit and equity as a result 
of foreign currency movements (excluding derivatives):

Impact on profit:
AUD to KRW
AUD to BRL
AUD to MXP
AUD to CLP
AUD to ARS
AUD to USD
Net Movement

Impact on equity:
AUD to KRW
AUD to BRL
AUD to MXP
AUD to CLP
AUD to ARS
AUD to USD
Net Movement

Hedge Sensitivity

(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)

(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)
(+5% to -5%)

2022  
$’000 
-5%

 1,096 
 261 
(123)
 69 
(13)
 417 
1,707

 21,333 
 2,771 
(1,048)
 201 
(98)
 40,814 
63,973

2021  
$’000 
-5%

1,052
193
(124)
9
(38)
n/a
1,092

21,408
2,551
(897)
248
(30)
n/a
23,280

2022 
$’000 
+5%

(1,096)
(261)
 123 
(69)
 13 
(417)
(1,707)

(21,333)
(2,771)
 1,048 
(201)
 98 
(40,814)
(63,973)

2021 
$’000 
+5%

(1,052)
(193)
124
(9)
38
n/a
(1,092)

(21,408)
(2,551)
897
(248)
30
n/a
(23,280)

There are no active hedges at 30 June 2022. In the prior year, management calculated the impact on the balance sheet for 
the year as a result of a +/- 5% variance change in the forward foreign exchange contracts held, noting the position would 
decrease by $58.0 million or increase by $64.2 million respectively.

(ii) Price risk

The Group’s exposure to equity securities price risk arises from the 9.5% of Plenti Group Ltd held by the Group and 
classified in the balance sheet as a financial asset at fair value through other comprehensive income (see Note 19(d)). 
Changes in the fair value are recognised directly in other comprehensive income as an irrevocable election was made  
by the Group on adoption of AASB 9 Financial Instruments. A movement in the value of this asset upwards or downwards 
by 5% would increase or decrease the carrying value by $0.5 million with a corresponding debit or credit recognised in 
other comprehensive income.

Other than the investments above, the Group is not exposed to significant price equities risk.

91

carsales Annual Report 2022EQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

10. Financial risk management continued
(b) Credit risk
Credit risk of the Group arises predominantly from outstanding receivables from customers and from its financing 
activities, including deposits with financial institutions.

Risk management policy

It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures, 
which may include an assessment of their financial position, past experience and industry reputation, depending on the 
amount of credit to be granted.

Receivables balances are monitored on an ongoing basis. The Group applies the AASB 9 simplified approach to measuring 
expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To measure the expected credit 
losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The expected 
loss rates are based on the payment profiles of sales over a period of 24 months before reporting date and the 
corresponding historical credit losses experienced within this period. The historical loss rates are adjusted to reflect current 
and forward-looking information on macroeconomic factors affecting the ability of the customers to settle the receivables.

Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and 
financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted by carsales.com Ltd.

Material arrangements in place at the reporting date

The net trade receivables balance at 30 June 2022 was $44.3 million (2021: $39.3 million). See below for the aging profile  
of net trade receivables.

2022 
$’000

Expected 
loss rate
0-0.5%
1%
2.5-5%
7.5-10%
50-80%
80-100%

Gross 
   Receiv- 
ables*
 35,163 
 8,378 
 798 
 298 
 427 
 461 
 45,525 

Note

14

Loss 
  allowance**

 68 
 58 
 31 
 38 
 100 
 950 
 1,245 

  Gross 
  Receiv- 
ables*
36,233
2,463
585
295
196
2,119
41,891

2021 
$’000

Expected 
loss rate
0-0.5%
1.0%
2.5-5.0%
7.5-10%
50-80%
80-100%

Current
More than 30 days past due
More than 60 days past due
More than 90 days past due
More than 120 days past due
More than 180 days past due
Total

*   Gross receivables includes unapplied credits.
**   Loss allowance is calculated on gross receivables balance excluding unapplied credits.

The loss allowance for trade receivables as at 30 June reconciles to the opening loss allowance as follows:

Opening loss allowance as at 1 July
Increase in loss allowance recognised in profit or loss during the year
Receivables written off during the year as uncollectible
Closing loss allowance at 30 June

2022  
$’000
2,633
576
(1,964)
1,245

Loss 
 allowance**

29
24
29
22
118
2,411
2,633

2021 
$’000
2,925
476
(768)
2,633

Trade receivables are written-off when there is no reasonable expectation of debt recovery. Indicators that there is no 
reasonable expectation of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with  
the Group, and a failure to make contractual payments for a period greater than 180 days past due. Impairment losses  
on trade receivables are presented as net impairment losses within operating profit. Subsequent recoveries of amounts 
previously written-off are credited against the same line.

92

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Material exposures and sensitivity

The Group’s maximum exposures to credit risk at balance date in relation to each class of recognised financial assets  
is the carrying amount of those assets.

(c) Interest rate risk
The consolidated entity’s exposure to the cash flow risk of changes in market interest rates relates primarily to cash  
at bank and long-term borrowings. Cash and cash equivalents draw interest at variable interest rates.

Risk management policy

carsales.com Ltd has a Board-approved treasury policy and treasury strategy for the management of interest rate risk.  
The Board keeps the decision to actively hedge interest rate risk under regular review. Any derivative contracts will be 
entered into solely for interest rate risk and currency risk management and no speculative hedging is permitted under  
the policy.

Material arrangements in place at the reporting date

The Group has $651.0 million (2021: $45.0 million) variable rate borrowings at a weighted average interest rate of 1.8%  
(2021: 1.6%). The borrowings are periodically contractually repriced every three months and to that extent are also 
exposed to the risk of future changes in market interest rates.

Material exposures and sensitivity

The following table summarises the sensitivity of the Group’s financial assets and financial liabilities to interest rate risk.

At 30 June 2022
Financial assets
Cash and cash equivalents
Financial liabilities
Variable rate borrowings
Total increase/(decrease)

At 30 June 2021
Financial assets
Cash and cash equivalents
Financial liabilities
Variable rate borrowings
Total increase/(decrease)

Interest rate risk

-100 bps

+100 bps

Carrying 
amount 
$’000

Note

Profit  
$’000

Other 
equity 
$’000

Profit 
$’000

Other 
equity 
$’000

 117,452 

(1,261)

(1,261)

 1,261 

 1,261 

7

(649,532) 

 5,973 
 4,712 

 5,973 
 4,712 

 (5,973)
 (4,712)

 (5,973)
(4,712)

284,004

(1,754)

(1,754)

1,754

1,754

7

(43,195)

4,407
2,653

4,407
2,653

(4,407)
(2,653)

(4,407)
(2,653)

93

carsales Annual Report 2022EQUITYOTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

10. Financial risk management continued
(d) Liquidity risk
Prudent liquidity risk management entails maintaining sufficient cash and marketable securities, the availability of funding 
through an adequate amount of committed credit facilities and the ability to close out market positions.

Risk management policy

The Group manages liquidity risk by continuously monitoring forecast and actual cash flows and matching the maturity 
profiles of financial assets and liabilities. The Group maintains borrowing facilities to enable the Group to borrow funds 
when necessary.

Material arrangements in place at reporting date

Borrowings (Note 7)
Lease liabilities (Note 16)
Less: cash and cash equivalents
Less: term deposits (Note 14)
Net debt

2022 
$’000
 649,739 
 64,431 
(117,452)
(14,593)
 582,125 

2021 
$’000
43,230
63,352
(284,004)
-
(177,422)

Material exposures – Contractual maturities of financial liabilities

The following table sets out the Group’s exposure to liquidity risk. The amounts disclosed in the table are the contractual 
undiscounted cash flows.

At 30 June 2022
Non-derivatives
Non-interest bearing payables
Variable rate borrowings
Fixed rate borrowings
Lease liabilities
Other financial liabilities
Total non-derivatives

At 30 June 2021
Non-derivatives
Non-interest bearing payables
Variable rate borrowings
Fixed rate borrowings
Lease liabilities
Other financial liabilities
Total non-derivatives

0–12 
Months 
$’000

Between 1 
and 2 years 
$’000

Between 2 
and 5 years 
$’000

Over 5 
Years  
$’000

Total 
contractual 
cash flows 
$’000

Carrying 
amount 
liabilities 
$’000

 48,758 
 - 
119
 9,379 
 - 
58,256

 1,241 
 213,400 
98
8,655
 1,153 
224,547

-
 449,233 
 - 
20,820
 - 
470,053

 - 
 - 
 - 
 34,576 
 - 
 34,576 

 49,999 
 662,633 
217
 73,430 
1,153
787,432

49,999 
 649,532 
 207 
 64,431 
 1,153 
 765,322 

0–12 
Months 
$’000

Between 1 
and 2 years 
$’000

Between 2 
and 5 years 
$’000

Over 5 
Years  
$’000

Total 
contractual 
cash flows 
$’000

Carrying 
amount 
liabilities 
$’000

38,674
-
46
8,239
-
46,959

-
-
-
7,656
-
7,656

771
45,163
-
17,729
1,172
64,835

-
-
-
38,557
-
38,557

39,445
45,163
46
72,181
1,172
158,007

39,445
43,195
35
63,352
1,172
147,199

Net fair value of financial assets and liabilities

The net fair value of cash and cash equivalents, non-interest bearing monetary financial assets and non-interest bearing 
financial liabilities of the consolidated entity approximates their carrying amounts. There are no off-balance sheet financial 
instruments in place.

94

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EQUITY
This section provides information about the capital management practices of the business.

11. Contributed equity

Accounting Policy
Ordinary shares are classified as equity.

Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in 
proportion to the number of, and amounts paid on, the shares held.

On a show of hands every holder of ordinary shares present at a meeting in person or by proxy is entitled to one 
vote, and upon a poll, each share is entitled to one vote.

Ordinary shares have no par value and the Company does not have a limited amount of authorised capital.

Incremental costs directly attributable to the issue of new shares, options or performance rights are shown in equity 
as a deduction, net of tax, from the proceeds. Incremental costs directly attributable to the issue of new shares or 
options or performance rights for the acquisition of a business are not included in the cost of the acquisition as part 
of the purchase consideration.

Movement in ordinary fully paid shares during the period
Balance at 1 July 2021
Issue of shares and exercise of options and performance rights under the carsales.com Ltd 
Employee Option and Share Plan
Dividend Reinvestment Plan
Less: transaction costs arising on share issues
Deferred tax recognised directly in equity
Balance at 30 June 2022

Balance at 1 July 2021
Exercise of options and performance rights under the carsales.com Ltd Employee Option Plan
Dividend Reinvestment Plan
Capital raised
Less: transaction costs arising on share issues
Deferred tax recognised directly in equity
Balance at 30 June 2021

Number of 
shares
281,966,582

450,847
428,040
-
-
282,845,469

245,613,817
540,755
513,916
35,298,094
-
-
281,966,582

$’000
755,357

6,120
9,918
(1,190)
(246)
769,959

149,817
4,563
9,860
600,068
(12,787)
3,836
755,357

Information relating to the carsales.com Ltd Employee Option Plan, including details of options and performance rights 
issued, exercised and lapsed during the financial year and options and performance rights outstanding at the end of the 
financial year, is set out in Note 26.

95

carsales Annual Report 2022OTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

12. Reserves

Nature and purpose of reserves
The share-based payments reserve is used to recognise the fair value of options and performance rights issued 
and vested.

Exchange differences arising on translation of the foreign operations are taken to the foreign currency 
translation reserve, as described in Note 27 and accumulated within a separate reserve within equity. The reserve 
is recognised in profit or loss when the net investment is disposed of.

The Group had put options over some of its non-controlling interests. The amount that may become payable under 
the option on exercise is initially recognised at the present value of the redemption amount within other financial 
liabilities with a corresponding charge directly to equity in the NCI acquisition reserve. The liability is subsequently 
accreted through finance charges up to the redemption amount that is payable at the date at which the option first 
becomes exercisable.

The Group also had a cash flow hedge reserve and net investment hedge reserve. Refer to Note 9 and 10 for 
more details.

96

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(a) Reserves

Balance at  
1 July 2021
Items that may be 
classified to profit or loss
Exchange differences on 
translation of foreign 
operations
Remeasurement of 
post-employment benefit 
obligations
Movement in cash flow 
hedge (net of tax)

Items that will not be 
reclassified to profit  
or loss
Changes in financial 
assets at fair value (net of 
tax) through other 
comprehensive income
Total comprehensive 
income for the year
Transfer of gain on 
disposal of equity 
investment at fair value 
through other 
comprehensive income 
to retained earnings 
Transactions with 
owners in their 
capacity as owners:
Increase in share-based 
payment reserve 
inclusive of tax
Transaction with non-
controlling interests
Balance at  
30 June 2022

Share- 
based 
payment 
$’000

Foreign 
currency 
trans-  
lation  
$’000

Post- 
employ- 
ment 
benefits 
$’000

Financial 
Asset  
FVOCI 
$’000

NCI 
acquisi-
tion 
$’000

Cash  
flow 
hedge 
$’000

Other 
Reserves 
$’000

Total 
Reserves 
$’000 

 33,467 

(25,045)

(125)

3,786

(40,686)

 12,184 

(5,021)

(21,440)

 30,105 

-

-

-

-

(919)

-

-

-

-

-

-

-

-

-

 12,372 

 - 

 30,105 

(919)

12,372

-

5,690

-

-

-

-

-

(13,426)

-

-

-

-

-

-

-

-

-

-

-

(243)

-

-

(14,004)

-

-

-

 30,105 

(919)

(14,004)

-

(14,004)

-

 - 

 12,372 

27,554 

-

-

-

-

(13,426)

-

-

5,690

(243)

 39,157 

 5,060 

(1,044)

2,732 

(40,929)

(1,820)

(5,021)

(1,865)

97

carsales Annual Report 2022OTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

12. Reserves continued

Share- 
based 
payment 
$’000

Foreign 
currency 
trans- 
lation 
$’000

Post- 
employ- 
ment 
benefits 
$’000

Financial 
Asset 
FVOCI 
$’000

NCI 
acquisi-
tion  
$’000

Cash 
flow 
hedge 
$’000

Net 
invest- 
ment 
hedge 
$’000

Other 
Reserves 
$’000

Total 
Reserves 
$’000

29,834

(29,493)

(376)

1,647

(38,587)

(13,409)

(848)

(5,021)

(56,253)

-

-

-

-

-

-

(12,279)

-

-

-

16,727

251

-

-

-

-

-

-

-

-

2,139

4,448

251

2,139

3,633

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(2,099)

-

-

25,593

-

-

-

-

848

-

-

25,593

848

-

-

-

-

-

-

-

-

-

-

-

-

-

(12,279)

251

25,593

17,575

2,139

33,279

3,633

(2,099)

(5,021)

(21,440)

33,467

(25,045)

(125)

3,786

(40,686)

12,184

Balance at  
1 July 2020
Items that may be 
classified to profit or loss
Exchange differences 
on translation of 
foreign operations
Remeasurement of 
post-employment 
benefit obligations
Movement in cash flow 
hedge (net of tax)
Movement in net 
investment hedge  
(net of tax)

Items that will not  
be reclassified to  
profit or loss
Changes in financial 
assets at fair value (net 
of tax) through other 
comprehensive income
Total comprehensive 
income for the year
Transactions with 
owners in their 
capacity as owners:
Increase in share-
based payment 
reserve inclusive of tax
Transaction with 
non-controlling 
interests
Balance at  
30 June 2021

98

carsales Annual Report 2022F
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13. Dividends

Accounting Policy
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the 
discretion of the entity, on or before the end of the financial year but not distributed at balance date.

The dividends were proposed / payable as follows:
Interim dividend paid for the half year ended 31 December – fully franked at the tax rate  
of 30%
Final dividend proposed / paid for the year ended 30 June – fully franked at the tax rate  
of 30%

Dividends paid in cash or satisfied by the issue of shares under the dividend  
reinvestment plan
Paid in cash
Satisfied by issue of shares
Proposed but not yet paid or issued

Interim dividend paid for the half year 31 December
Final dividend declared / paid for the year ended 30 June

The group has $15.7 million of franking credits as at 30 June 2022 (2021: $20.4 million).

FY 2022  
$’000

FY 2021
$’000

72,068

61,597

85,958
158,026

63,527
125,124

67,764
4,304
85,958
158,026

56,713
4,884
63,527
125,124

Cents per 
share
25.5
24.5

Cents per 
share
25.0
22.5

Dividend Reinvestment Plan (DRP)
The carsales.com Ltd DRP will be maintained for the 2022 final dividend, offering shareholders the opportunity to acquire 
further ordinary shares in carsales. The DRP will not be offered at a discount and the price will be calculated using the daily 
volume weighted average sale price of carsales.com Ltd shares sold in the ordinary course of trading on the ASX during  
the five days after, but not including, the Record Date 19 September 2022. The last date for shareholders to nominate  
their participation in the DRP is 5:00pm (AEST) on 20 September 2022. Shares issued under the DRP will rank equally with 
carsales.com Ltd existing fully paid ordinary shares. Shareholders eligible to participate in the DRP are currently limited  
to those whose registered address on the carsales.com Ltd share registry is in Australia or New Zealand.

Eligible shareholders who wish to participate in the DRP can make their elections online at www.computershare.com.au/ 
easyupdate/CAR or complete the DRP form, which will be sent to shareholders for completion and submission to 
Computershare Investor Services Pty Ltd (carsales share registry). Further information can be obtained from 
Computershare on 1300 850 505.

99

carsales Annual Report 2022OTHER ASSETS AND LIABILITIESGROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

OTHER ASSETS AND LIABILITIES
This section provides information on other balance sheet assets and liabilities that do not materially affect performance or 
give rise to material financial risk.

14. Trade and other receivables

Accounting Policy
(a) Classification of trade receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course  
of business. They are generally due for settlement within 30 to 45 days following the provision of advertising, data 
services and sale of goods and therefore are all classified as current.

Trade receivables are recognised initially at fair value and subsequently measured at amortised cost, less the loss 
allowance. Details about the Group’s impairment policies and the calculation of the loss allowance are provided  
in Note 10.

(b) Accrued income

Services provided in the current reporting period are recognised on an accrual basis. Settlement is generally within 
30 days.

(c) Other receivables

These amounts generally arise from transactions outside the usual operating activities of the Group. Interest is not 
charged and collateral is not normally obtained.

The other classes within trade and other receivables do not contain impaired assets and are not past due. Based on 
the credit history of these other classes, it is expected that these amounts will be received when due.

Other non-current receivables include deposits paid in relation to long-term property leases by ENCARSALES.COM Ltd.

(d) Fair value and credit risk

Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value. 
Information about the impairment of trade receivables and the Group’s exposure to credit risk, foreign currency risk 
and interest rate risk can be found in Note 10.

Current assets
Trade receivables
Loss allowance (see Note 10)
Trade receivables
Accrued income
Other receivables
Term deposits*
Prepayments
Trade and other receivables
Non-current assets – other receivables

*Term deposits are short term in nature with the average period being 6 months.

100

2022  
$’000

 45,525
(1,245)
44,280
955
5,585
14,593
9,328
74,741
13,968

2021  
$’000

41,891
(2,633)
39,258
624
2,850
-
4,023
46,755
10,317

carsales Annual Report 202215. Property, plant and equipment

Accounting Policy
Property, plant and equipment is stated at historical cost less accumulated depreciation. Historical cost includes 
expenditure that is directly attributable to the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, 
only when it is probable that future economic benefits associated with the item will flow to the Group and the cost 
of the item can be measured reliably. All other repairs and maintenance expenses are charged to the profit or loss 
during the financial period in which they are incurred.

The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount  
is greater than its estimated recoverable amount.

Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included  
in the consolidated statement of comprehensive income.

Depreciation on assets is calculated using the straight-line method to allocate their cost, net of their residual  
values, over their estimated useful lives, as follows:

•  Motor vehicles  

3 – 5 years

•  Plant and equipment 

3 – 10 years

•  Leasehold improvements  3 – 10 years or minimum lease period if shorter

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101

carsales Annual Report 2022GROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT.
30 June 2022

15. Property, plant and equipment continued

Plant and  
equipment  
$’000

Motor  
vehicles  
$’000

Leasehold  
improvements  
$’000

3,401
2,083
(29)
(2,012)
(34)
3,409

528
896
(188)
(480)
(11)
745

8,886
5,195
(145)
(3,252)
(184)
10,500

Total  
$’000

12,815
8,174
(362)
(5,744)
(229)
14,654

15,434
(12,025)
3,409

2,081
(1,336)
745

27,878
(17,378)
10,500

45,393
(30,739)
14,654

3,068
2,103
(5)
(1,713)
(52)
3,401

819
211
(134)
(361)
(7)
528

9,914
2,330
-
(3,224)
(134)
8,886

13,801
4,644
(139)
(5,298)
(193)
12,815

14,022
(10,621)
3,401

1,663
(1,135)
528

23,475
(14,589)
8,886

39,160
(26,345)
12,815

Year ended 30 June 2022
Opening net book amount
Additions
Disposals
Depreciation charge
Exchange differences
Closing net book amount

At 30 June 2022
Cost
Accumulated depreciation
Net book amount

Year ended 30 June 2021
Opening net book amount
Additions
Disposals
Depreciation charge
Exchange differences
Closing net book amount

At 30 June 2021
Cost
Accumulated depreciation
Net book amount

102

carsales Annual Report 2022 
16. Leases

The Group leases properties (commercial office premises and retail properties), motor vehicles and equipment.  
The Group’s leases are typically for fixed periods between two to fifteen years and may include extension options.  
Lease terms are negotiated on an individual lease basis and may contain a wide range of different terms and 
conditions. None of the Group’s lease agreements impose any covenants, however leased assets may not be used 
as security for borrowing purposes.

Payments made under operating leases, less any incentives received from the lessor, were previously charged  
to profit or loss on a straight-line basis over the period of the lease pursuant to the requirements of AASB 117.  
In applying AASB 16, a right-of-use asset representing the right to use the underlying asset and a corresponding 
lease liability representing the obligation to make lease payments are recognised at the date at which the leased 
asset is available for use by the Group.

Right-of-use assets are measured at cost comprising the following:

•  the initial measurement of the lease liability;

•  any lease payments made in advance of the lease commencement date less any incentives received;

•  any initial direct costs; and

•  an estimate of any costs to dismantle and remove the asset at the end of the lease.

The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the 
earlier of the end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses 
the right-of-use assets for impairment when such indicators exist.

At the lease commencement date, the Group measures the lease liability at the present value of the lease payments 
unpaid at that date, discounted using the interest rate implicit in the lease where that rate is readily available or 
using the Group’s incremental borrowing rate at the time the lease was entered into.

Lease payments included in the measurement of the lease liability consist:

•  fixed payments less any incentives receivable;

•  variable payments based on an index or rate;

•  amounts expected to be payable under a residual value guarantee; and

•  payments arising from options reasonably certain to be exercised.

Subsequent to initial measurement, the liability is reduced for payments made and increased for interest incurred. 
The liability is remeasured to reflect any reassessment or modification, or if there are changes to in-substance fixed 
payments. When the lease liability is remeasured, a corresponding adjustment is made to the value of the right-of-
use asset.

Deferred tax accounting
Lease payments are generally deductible whilst interest and depreciation expenses on these leases remain non-
deductible. As a result, a net deferred tax asset has been recognised in relation to the temporary differences arising  
from the right-of-use assets and lease liabilities.

Depreciation on assets is calculated using the straight-line method to allocate their cost, net of their residual values,  
over their estimated useful lives, as follows:

•  Properties 

Expected lease period

•  Motor vehicles   

Contractual lease period

•  Leased plant and equipment 

Contractual lease period

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103

carsales Annual Report 2022GROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

16. Leases continued

Key Assumption/Accounting Estimates

Extension and termination options are included in a number of the Group’s property leases. The extension and 
termination options are exercisable only by the Group and not by the respective lessor. In determining the lease 
term, which forms part of the initial measurement of the right-of-use asset and lease liability, management 
considers all facts and circumstances that create an economic incentive to exercise an extension option, or not 
exercise a termination option. Extension options (or periods after termination options) are only included in the lease 
term if the lease is reasonably certain to be extended (or not terminated).

The following factors are normally the most relevant when assessing the extension options on the property lease:

•  If there are significant penalties to terminate (or not extend), the Group is typically reasonably certain to extend  

(or not terminate).

•  If any leasehold improvements are expected to have a significant remaining value, the Group is typically 

reasonably certain to extend (or not terminate).

•  Otherwise, the Group considers other factors including historical lease duration and the costs and business 

disruption required to replace the leased properties.

Most extension options in properties have been included in the lease liability because the Group could not replace 
the assets without significant cost or business disruption.

The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to 
exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant event or change in 
circumstances occurs, which affects this assessment and that is within the control of the lessee Group.

Right-of- 
use 
Properties 
$’000

Right-of-
use Motor 
vehicles / 
Equipment 
$’000

 55,080 
 8,017 
 2,190 
 (8,838)
 (358)
 56,091 

 534 
 287 
12 
 (451)
2
 384 

Total 
$’000

 55,614 
 8,304 
2,202 
 (9,289)
(356)
 56,475 

 96,541 
 (40,450)
 56,091 

 2,985 
 (2,601)
 384 

 99,526 
 (43,051)
 56,475 

Right-of-use assets:

Year ended 30 June 2022
Opening net book amount
Additions
Remeasurement of lease modification
Depreciation charge
Exchange differences
Closing net book amount

At 30 June 2022
Cost
Accumulated depreciation
Net book amount

104

carsales Annual Report 2022 
Year ended 30 June 2021
Opening net book amount
Additions
Terminations
Remeasurement of lease modification
Depreciation charge
Exchange differences
Closing net book amount

At 30 June 2021
Cost
Accumulated depreciation
Net book amount

Lease Liabilities:

Year ended 30 June
Opening lease liabilities
Additions
Terminations
Remeasurement of lease modification
Lease payments
Interest charge
Exchange differences
Closing lease liabilities

At 30 June
Current lease liabilities
Non-current lease liabilities
Total lease liabilities

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C
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I

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P
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F
O
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A
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I

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I
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A
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G
A
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D

R
I
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A
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A
G
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M
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U
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Y

O
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A
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S

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A
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I
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S

Right-of-use 
Properties 
$’000

Right-of-use 
Motor 
vehicles/ 
Equipment 
$’000

52,063
4,025
(236)
6,487
(7,007)
(252)
55,080

898
238
-
-
(602)
-
534

Total  
$’000

52,961
4,263
(236)
6,487
(7,609)
(252)
55,614

89,689
(34,609)
55,080

2,934
(2,400)
534

92,623
(37,009)
55,614

2022 
$’000

 63,352
 7,617
 - 
 1,652
 (9,399) 
 1,563
(354)
64,431

 8,061
56,370
 64,431

2021 
$’000

60,971
4,263
(270)
6,487
(9,819)
1,577
143
63,352

6,636
56,716
63,352

105

carsales Annual Report 2022GROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

17. Intangible assets

Accounting Policy
Goodwill

Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net 
identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries 
is included in intangible assets. Goodwill is not amortised. Instead, goodwill is tested for impairment annually,  
or more frequently if events or changes in circumstances indicate that it might be impaired, and is carried at cost 
less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount  
of goodwill relating to the entity sold. Goodwill is allocated to cash generating units for the purpose of impairment 
testing.

Computer software

Software includes capitalised development costs being an internally generated intangible asset.

Capitalised development costs are recorded as an intangible asset and amortised from the point of which the asset 
is ready for use on a straight-line basis over four years. Internally capitalised labour costs are treated as an investing 
cash outflow in the consolidated statement of cash flows.

Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to 
the design and testing of new or improved services) are recognised as intangible assets when it is probable that the 
project will, after considering its commercial and technical feasibility, be completed and generate future economic 
benefits and its costs can be measured reliably. The expenditure capitalised comprises all directly attributable costs, 
including costs of materials, services, direct labour and an appropriate proportion of overheads. Other development 
expenditures that do not meet these criteria are recognised as an expense as incurred.

Development costs previously recognised as an expense are not recognised as an asset in a subsequent period.

Brands and customer relationships

Acquired brands represent the value of brands in acquired subsidiaries and businesses that are separately fair 
valued at the date of acquisition from the remaining goodwill. Acquired brands are amortised over a 10-year period.

Acquired customer relationships have a finite useful life and are carried at fair value at acquisition date less 
accumulated amortisation and impairment losses. Amortisation is calculated using the straight-line method to 
allocate the cost of the asset over its estimated useful life, which is between 7–12 years.

The following intangible assets have finite lives and are subject to amortisation on a straight-line basis. The useful 
lives for these assets are as follows:

•  Computer software  

•  Brands  

•  Customer relationships   

4 years

10 years

7–12 years

•  Other (domain names and database) 

5–10 years

106

carsales Annual Report 2022 
 
 
 
 
 
 
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O
T
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R
A
S
S
E
T
S

A
N
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L
I
A
B
I
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I
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I
E
S

Year ended 30 June 2022
Opening net book amount
Additions
Transfer/measurement period adjustments
Disposals
Amortisation charge
Exchange differences
Closing net book amount

At 30 June 2022
Cost
Accumulated amortisation and impairment
Net book amount

Year ended 30 June 2021
Opening net book amount
Additions
Disposals
Goodwill impairment
Amortisation charge
Exchange differences
Closing net book amount

Computer 
software 
$’000

Brands and 
customer 
relationships 
$’000

Other 
intangible 
assets  
$’000

49,410
41,490

(498) 
(4)
 (23,272)
 (376)
 66,750 

 66,110 
1,184
 (3,909)
-
 (8,318)
 (2,646)
 52,421 

 1,577 
6
 (1,122)
-
 (119)
 (127)
 215 

Goodwill 
$’000

480,008
19,240
 3,868 
-
 - 
 (19,182)
 483,934 

Total 
$’000

 597,105 
61,920
(1,661) 
(4)
(31,709) 
 (22,331)
 603,320 

 484,454 
 (520)
 483,934 

 159,917 
 (93,167)
 66,750 

 88,182 
 (35,761)
 52,421 

 4,902 
 (4,687)
 215 

 737,455 
(134,135) 
 603,320 

Computer 
software 
$’000

Brands and 
customer 
relationships 
$’000

Other 
intangible 
assets 
$’000

Goodwill 
$’000

477,633
11,294
-
(520)
-
(8,399)
480,008

39,439
29,504
(444)
-
(18,782)
(307)
49,410

65,684
9,934
-
-
(7,858)
(1,650)
66,110

389
1,122
-
-
(259)
325
1,577

Total  
$’000

583,145
51,854
(444)
(520)
(26,899)
(10,031)
597,105

At 30 June 2021
Cost
Accumulated amortisation and impairment
Net book amount

480,528
(520)
480,008

117,084
(67,674)
49,410

95,088
(28,978)
66,110

6,043
(4,466)
1,577

698,743
(101,638)
597,105

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carsales Annual Report 2022GROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

17. Intangible assets continued
(a) Impairment testing

Key Assumption/Accounting Estimates

Goodwill and intangible assets that have an indefinite useful life are allocated to a cash-generating unit (‘CGU’) or  
a group of CGUs and are tested annually for impairment. Other assets are tested for impairment whenever events 
or changes in circumstances indicate that the carrying amount may not be recoverable, which includes carsales’ 
interests in associates. An impairment loss is recognised for the amount by which the asset’s carrying amount 
exceeds its recoverable amount.

Both value in use and fair value less cost to sell valuation methods have been employed in determining the 
recoverable amounts of CGUs. Both methods are predicated on cash flow projections which necessitates the 
adoption of assumptions and estimates.

The key assumptions and estimates used in management’s calculations primarily relate to:

•  Five or 10-year cash flow forecasts sourced from internal budgets and long-term forecasts;

•  terminal value growth rates applied to the period beyond the five to 10-year cash flow forecasts; and

•  post-tax discount rates, used to discount the cash flows to present value.

The cash flow projections have been:

•  derived from management forecasts based on next year’s budgeted result, with the remaining years based on 

management forecasts; and

•  compiled using a combination of past experience, current performance and market position as well as structural 

changes and economic factors which have been derived based on external data and internal analysis.

Each of these assumptions and estimates are based on a ‘best estimate’ at the time of performing the valuation. 
However, increases in discount rates or changes in other key assumptions, such as operating conditions or financial 
performance, may cause the recoverable amount of CGUs to fall below their carrying amounts, resulting in an 
impairment loss being recognised.

Cash generating units
Goodwill is allocated to the Group’s cash generating units (CGUs) which are then tested annually to determine whether 
they have suffered any impairment. For the purposes of assessing impairment, assets are grouped at the lowest levels for 
which there are separately identifiable cash inflows which are largely independent of the cash inflows from other assets or 
groups of assets (cash generating units).

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A segment and CGU-level summary of the goodwill allocation is presented below.

Australia – Online Advertising Services Segment
Australia – Data, Research and Services Segment
tyres CGU (Australia – carsales Investments)

Mexico
Chile
Americas Segment

South Korea
RedBook International
Asia Segment

2022  
$’000
 86,421 
 15,941 
 20,058 

 4,112 
 13,914 
 18,026 

 343,089 
 400 
 343,489 
 483,935 

2021  
$’000
82,552
15,941
818

3,817
16,092
19,909

360,388
400
360,788
480,008

Key assumptions
As well as management cash flow projections, other key assumptions for each significant CGU are detailed as follows:

CGU
Australia – Online Advertising Services
Australia – Data, Research and Services
tyres CGU (Australia – carsales Investments)

Chile
South Korea

Valuation 
method
Value in use
Value in use
Fair value less 
costs to sell
Value in use
Fair value less 
costs to sell

Years of 
cash flow 
projection
5
5
10

5
10

Terminal  
growth rate

Post-tax  
discount rate

2022
2.3%
2.3%
2.3%

2.7%
2.0%

2021
2.0%
2.0%
n/a

3.1%
2.5%

2022
8.8%
8.8%
10.7%

11.3%
10.7%

2021
8.4%
8.4%
n/a

9.2%
9.5%

Impact of reasonable possible changes in key assumptions
The Tyreconnect (Australia – carsales Investments CGU) business was acquired on 1 July 2021 and carsales has only owned 
this business for 12 months at balance date. As such the Tyres CGU has minimal headroom at 30 June 2022, however no 
impairment is required and a reasonably possible change in key assumptions would result in an  
insignificant impairment.

The Directors and management have considered and assessed reasonably possible changes for the key assumptions  
and have not identified any instances that could cause the carrying amount of the other CGUs to exceed their  
recoverable amount.

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carsales Annual Report 2022GROUPSTRUCTUREITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

18. Payables and provisions

Accounting Policy
Payables

These amounts represent liabilities for goods and services provided to the Group prior to the end of financial year 
that are unpaid. The amounts are unsecured and are usually paid within 30 days of recognition.

Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within  
12 months after the end of the period in which the employees render the related service. They are recognised in 
respect of employees’ service up to the end of the reporting period and are measured at the amount expected to 
be paid when the liabilities are settled. The liability for annual leave is recognised in the provision for employee 
benefits. All other short-term employee benefit obligations are presented as payables.

Other long-term employee benefit obligations

The liability for long service leave and annual leave that is not expected to be settled within 12 months after the  
end of the period in which the employees render the related services is recognised in the provision for employee 
benefits and measured as the present value of expected future payments to be made in respect of services 
provided by employees up to the end of the reporting period using the projected unit credit method. Consideration 
is given to expected future wage and salary levels, experience of employee departures and period of service.

Expected future payments are discounted using market yields at the end of the reporting period on high-quality 
corporate bonds with terms to maturity and currency that match, as closely as possible, the estimated future  
cash outflows.

Bonus plans

The Group recognises a liability and an expense for bonuses based on a formula that takes into consideration the 
profit attributable to the Company’s shareholders after certain adjustments as well as other metrics set out in the 
Remuneration Report. The Company recognises a provision where contractually obliged or where there is a past 
practice that has created a constructive obligation.

Trade and other payables
Trade payables
Accrued expenses
Other payables
Total trade and other payables

Provisions
Employee benefits – current
Employee benefits – non-current
Other provisions – current
Other provisions – non-current
Total provisions

2022 
$’000
10,986
34,010
3,762
48,758

9,879
1,269
1,117
3,388
15,653

2021 
$’000
8,397
26,224
4,053
38,674

9,870
1,161
92
2,517
13,640

Contingent liabilities
The Group and the parent entity from time to time may incur obligations arising from litigation or other contracts entered 
into in the normal course of business. Neither the Group nor the parent entity have any material contingent liabilities 
where the probability of outflow in any settlement is greater than remote as at 30 June 2022 or 30 June 2021 other than 
the associates’ contingent liabilities as set out in Note 19(c).

Other commitments
The Group has other contractual commitments of $3.1 million at 30 June 2022 (2021: $4.1 million).

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GROUP STRUCTURE
This section explains aspects of the group structure, such as our portfolio of associate accounted investments and 
acquisitions and how these have affected the financial position and performance of the Group.

19. Interests in other entities
(a) Material subsidiaries

(i) Subsidiaries

Subsidiaries are all entities over which the Group has the power to govern the financial and operating policies, 
generally accompanying a shareholding of more than half of the voting rights. The existence and effect of potential 
voting rights that are currently exercisable or convertible are considered when assessing whether the Group 
controls another entity.

Subsidiaries are fully consolidated from the date on which control is transferred to the Group. The purchase 
method of accounting is used to account for the acquisition of subsidiaries by the Company. Subsidiaries disposed 
of are de-consolidated from the date that control ceases.

Intercompany transactions, balances and unrealised gains on transactions between companies are eliminated. 
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset 
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with  
the policies adopted by the Company.

Non-controlling interests in the results and equity of subsidiaries are presented separately in the consolidated 
statement of comprehensive income, consolidated statement of changes in equity and consolidated statement  
of financial position respectively.

(ii) Employee Share Trust

The Group has formed a trust to administer the Group’s employee share scheme. This trust is consolidated,  
as the substance of the relationship is that the trust is controlled by the Group.

The Group’s principal subsidiaries at 30 June 2022 are set out on the next page. Unless otherwise stated, they have share 
capital consisting solely of ordinary shares that are held directly by the Group and the proportion of ownership interests 
held equals the voting rights held by the Group. The country of incorporation or registration is also their principal place  
of business.

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carsales Annual Report 2022ITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

19. Interests in other entities continued 

Ownership 
interest held 
by the Group*

Ownership 
interest held 
by non-
controlling 
intersts

Place of 
business/ 
country of 
incorporation
Australia
Australia
Australia
Australia
New Zealand

China

Name of entity
Webpointclassifieds Pty Ltd
Equipment Research Group Pty Ltd
Discount Vehicles Australia Pty Ltd 
Automotive Data Services Pty Ltd
Auto Information Limited
RedBook Automotive Services (M) Sdn Bhd Malaysia
RedBook Automotive Data Services 
(Beijing) Limited
Automotive Data Services (Thailand) 
Company Limited
tyresales Pty Ltd
Auto Exchange Holdings Pty Ltd
Automotive Exchange Pty Ltd
carsales.com Investments Pty Ltd
carsales Holdings Pty Ltd
carsales.com Ltd Employee 
Share Trust
carsales North America Holdings Pty Ltd 
(formerly “carsales Finance Pty Ltd”)
RedBook Inspect Pty Ltd
carsales Latam Pty Ltd
carsales Mexico SAPI de CV
carsales Chile SpA
Chileautos SpA
carsales Foundation Pty Ltd
carsales Argentina Pty Ltd
Demotores Holdings LLC

Thailand
Australia
Australia
Australia
Australia
Australia

Australia

Demotores Chile SpA
Demotores S.A.
ENCARSALES.COM, Ltd
AS1 Holdings Pty Ltd
Appraisal Solutions Pty Ltd
CS Motion Technologies Pty Ltd
CS Motion Development Pty Ltd
Tyreconnect Pty Ltd
Transport Ventures Pty Ltd
carsales Tyre Holding Pty Ltd
carsales Holding US, LLC (USA)

Australia
Australia
Australia
Mexico
Chile
Chile
Australia
Australia
United States 
of America
Chile
Argentina
South Korea
Australia
Australia
Australia
Australia
Australia
Australia
Australia
United States 
of America

2022 
%
100.0
100.0
100.0
100.0
100.0
100.0

2021 
%
100.0
100.0
100.0
100.0
100.0
100.0

100.0

100.0

100.0
100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0

100.0

100.0

100.0
80.0
100.0
100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0
97.3
100.0
100.0
100.0
100.0

100.0
80.0
100.0
100.0
100.0
100.0
100.0
100.0

100.0
100.0
100.0
100.0
100.0
100.0
97.3
100.0
-
-
-

100.0

-

2022 
%
-
-
-
-
-
-

2021 
%
-
-
-
-
-
-

Principal 
activities
(1)
(2)
(1)
(2)
(2)
(2)

Operating 
Segment
(i)
(ii)
(i)
(ii)
(v)
(v)

-

-
-
-
-
-
-

-

-
20.0
-
-
-
-
-
-

-
-
-
-
-
-
2.7
-
-
-
-

-

-

-
-
-
-
-
-

-

-
20.0
-
-
-
-
-
-

-
-
-
-
-
-
2.7
-
-
-
-

-

(2)

(2)
(3)
(4)
(1)
(4)
(4)

(5)

(4)
(6)
(4)
(1)
(4)
(1)
(7)
(4)

(4)
(1)
(1)
(1)
(4)
(2)
(1)
(1)
(3)
(4)
(4)

(4)

(v)

(v)
(iii)
(i)
(i)
(iv)
(v)

n/a

(iv)
(iii)
(iv)
(iv)
(iv)
(iv)
n/a
(iv)

(iv)
(iv)
(iv)
(v)
(i)
(ii)
(iii)
(iii)
(iii)
(iii)
(iii)

(iv)

* The proportion of ownership interest is equal to the proportion of voting power held.

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Principal activities

(1)   Classified advertising

(2)   Data and research

(3)   Online retail

(4)   Holding company

(5)   Share trust company

(6)   Vehicle inspection services

(7)   Trustee company

Operating segment

(i)   Australia – Online Advertising Services

(ii)   Australia – Data, Research and Services

(iii)   Australia – carsales Investments

(iv)   Americas

(v)   Asia

(b) Non-controlling interests (NCI) for continuing operations
Set out below is summarised financial information for each subsidiary that has non-controlling interests which are  
material to the Group. The amounts disclosed for each subsidiary are before intercompany eliminations.

For the year ended 30 June 2022
Summarised balance sheet
Current assets
Non-current assets
Current liabilities
Non-current liabilities
Net assets
Accumulated NCI

Summarised statement of comprehensive income
Profit for the year
Other comprehensive income
Total comprehensive income
Profit for the year allocated to NCI
Dividends paid to NCI

Summarised cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents

2022  
$’000

44,183
5,589
(9,346)
(1,697)
38,729
1,849

1,050
-
1,050
638
(549)

7,865
(2,529)
(2,607)
2,729

2021  
$’000

43,388
3,211
(6,206)
(424)
39,969
1,765

1,020
-
1,020
508
(210)

4,790
(1,322)
(3,449)
19

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

19. Interests in other entities continued
(c) Interests in Associates

Accounting Policy
Associates are all entities over which the Group has significant influence but no control or joint control, generally 
accompanying a shareholding of between 20% and 50% of the voting rights. Investments in associates are 
accounted for using the equity method of accounting, after initially being recognised at cost. The Group’s investment 
in associates includes goodwill identified on acquisition. Acquisition-related costs of acquiring an interest in an 
associate are capitalised.

The Group’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share  
of post-acquisition other comprehensive income is recognised in other comprehensive income. The cumulative 
post-acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable 
from associates are recognised as reduction in the carrying amount of the investment.

When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other 
unsecured long-term receivables, the Group does not recognise further losses unless it has incurred obligations or 
made payments on behalf of the associate.

At each reporting date, the Group determines whether there is objective evidence that the investment in the 
associate or joint venture is impaired. If there is such evidence, the Group recognises the loss as share of profit  
of an associate or joint venture in the Consolidated Statement of Comprehensive Income.

On 1 September 2021, the Group acquired 49% of Trader Interactive LLC and promissory notes for $813.8 million 
(excluding transaction costs and hedging impacts). Trader Interactive is a leading platform of branded marketplace in the 
United States, providing digital marketing solutions and services across the recreational vehicle, powersports, commercial 
truck and equipment industries. The acquisition was funded through a combination of a $600.0 million fully underwritten 
pro-rated accelerated renounceable entitlement offer and an upsize of the Group’s existing debt facilities. 

On 27 June 2022, the Group exercised its call option to acquire the remaining 51% interest in Trader Interactive for 
USD$809.0 million. The acquisition is to be funded via a fully underwritten 1 for 4.16 pro-rata accelerated non-renounceable 
entitlement offer and upsizing of carsales debt facility from A$900.0 million to A$1,400.0 million. Refer Note 24 for further 
details on equity raising. 

The acquisition remains subject to conditions, which are expected to be completed in late Q1 or early Q2 FY23.

Name of entity
Webmotors S.A.
Skedgo Pty Ltd
Trader Interactive LLC

Place of business / country  
of incorporation
Brazil
Australia
United States of America

2022 
%
30.0
20.6
49.0

2021 
%
30.0
20.0
-

Nature of 
relationship
Associate
Associate
Associate

Measurement 
method
Equity method
Equity method
Equity method

% of ownership interest

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Name of entity
Webmotors S.A.
Skedgo Pty Ltd
Trader Interactive LLC
Total equity accounted 
investments

Quoted fair value

2022  
$’000
-
-
-

2021 
$’000
-
-
-

Carrying amount
2022 
$’000
58,191
2,358
857,099

2021 
$’000
53,581
2,372
-

Share of profit/(loss)
2021 
$’000
4,057
(111)
-

2022 
$’000
5,090
(14)
12,100

-

-

917,648

55,953

17,176

3,946

(i) Movement in the carrying amount of significant equity accounted investments.

For the year ended 30 June 2022
Carrying amount at 1 July 2021
Acquisition of investment using equity method (cash)
Acquisition of promissory notes receivable (cash)*
Transaction costs capitalised
Gain on acquisition hedge (net of tax)
Share of profit for the year
Amortisation expense relating to fair value adjustments  
(net of tax)
Foreign exchange impact –
other comprehensive income
Dividends receivable
Carrying amount at 30 June 2022

Trader Interactive LLC 
49% ownership $’000
-
794,708
19,084
15,849
(36,101)
28,092

Webmotors S.A. 30% 
ownership $’000
53,581
-
-
-
-
5,478

(15,992)

51,459
-
857,099

(388)

1,776
(2,256)
58,191

*  The Group acquired 49% of interest bearing promissory notes in the entity to the value of $19.0 million at the acquisition date, which will be 

extinguished upon completion of the acquisition of the 51% remaining interest in Trader Interactive. 

For the year ended 30 June 2021
Carrying amount at 1 July 2020
Share of profit for the year
Amortisation expense relating to fair value adjustments (net of tax)
Foreign exchange impact –
other comprehensive income
Dividends received
Adjustment to dividends
Carrying amount at 30 June 2021

Webmotors S.A. 30%  
ownership $’000
48,842
4,439
(382)

(478)
(2,217)
3,377
53,581

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

19. Interests in other entities continued
(ii) Summarised financial information for significant associates
The tables below provide summarised financial information for the associate that is material to the Group. The information 
disclosed reflects the amounts presented in the financial statements of the relevant associate and not the Company’s 
share of those amounts.

For the year ended 30 June 2022
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets
Group's share in %
Group's share in $
Goodwill and capitalised transaction costs
Acquired intangibles (net of tax)
Share-based payments recognised directly in equity
Promissory notes receivable acquired
Foreign exchange impacts
Carrying amount

Revenue
Profit from continuing operations
Other comprehensive income
Total comprehensive income
carsales’ share
Profit from continuing operations
Foreign exchange impacts – other comprehensive income
Total comprehensive income

Trader Interactive LLC 
49% ownership $’000
52,604
17,192
(18,018)
(606,717)
(554,939)
49.0%
(271,920)
902,424
207,900
(3,300)
20,267
1,728
857,099

Webmotors S.A. 30% 
ownership $’000
62,150
63,123
(45,064)
(198)
80,011
30.0%
24,003
31,001
3,187
-
-
-
58,191

158,639
24,695
-
24,695

12,100
51,459
63,559

92,726
16,966
-
16,966

5,090
1,776
6,866

116

carsales Annual Report 2022For the year ended 30 June 2021
Total current assets
Total non-current assets
Total current liabilities
Total non-current liabilities
Net assets
Group’s share in %
Group’s share in $
Goodwill and capitalised transaction costs
Acquired intangibles (net of tax)
Carrying amount

Revenue
Profit from continuing operations
Other comprehensive income
Total comprehensive income
carsales’ share
Profit from continuing operations
Foreign exchange impacts – other comprehensive income
Total comprehensive income
Dividends receivable/received from associates and joint venture entities

(iii) Contingent liabilities in respect of associates

Contingent liabilities – associates
Contingent liabilities relating to liabilities of Webmotors S.A. for which the Company is 
severally liable

Contingent liabilities relating to liabilities of Trader Interactive LLC for which the Company  
is severally liable

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Webmotors S.A. 30%  
ownership $’000
47,026
39,387
(18,501)
(235)
67,677
30.0%
20,303
29,829
3,449
53,581

62,796
13,526
-
13,526

4,057
(478)
3,579
2,217

2022  
$’000

2021  
$’000

186

-

209

n/a

117

carsales Annual Report 2022ITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

19. Interests in other entities continued
(d) Financial assets at fair value through other comprehensive income

Accounting Policy

Investments are designated as financial assets at fair value through other comprehensive income if they do not 
have fixed maturities and fixed or determinable payments, and management intends to hold them for the medium 
to long-term. The Group has irrevocably elected to account for investments which are not held for trading at fair 
value through other comprehensive income. These are strategic investments and the Group considers this 
classification to be more relevant. Financial assets that are carried at fair value are measured by the fair value 
measurement hierarchy referred to in Note 9.

On disposal of these equity investments, any related balance with the FVOCI reserve is reclassified to retained 
earnings.

Key Assumption/Accounting Estimates

The fair value of financial instruments that are not traded in an active market is determined using valuation 
techniques. The Group uses a variety of methods and makes assumptions that are based on market conditions 
existing at each balance date. Refer to Note 9 for details of the valuation techniques used to value the investment.

% of ownership

Carrying amount

2022  
%

-
9.5

18.4
3.3
n/a

2021  
%

11.4
9.5

7.9
3.8
n/a

2022 
$’000

-
10,455

4,101
4,409
17,931

2021 
$’000

13,601
21,666

2,237
2,002
10,023

36,896

49,529

2022  
$’000
49,529
1,313
(26,698)
 698 
12,054
36,896

2021  
$’000
40,718
2,169
-
(409)
7,051
49,529

Name of entity
Quoted financial assets
iCar Asia Limited
Plenti Group Ltd (formerly ‘RateSetter Australia Pty Ltd’)

Unquoted financial assets
PromisePay Pte Ltd
mx51 Group Pty Ltd
Other equity investments
Total financial assets at fair value through other 
comprehensive income

At 1 July
Acquisition of financial assets at fair value through other comprehensive income
Sale of financial assets at fair value through other comprehensive income
Exchange differences recognised through other comprehensive income
Gain recognised through other comprehensive income
At 30 June

118

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(i) iCar Asia Limited
On 11 February 2022, the Group sold its interest in iCar. The sale resulted in cash received of $26.7 million and the $13.4 
million gain on disposal was recycled from the Financial Asset FVOCI reserve to retained earnings. The Group utilised 
capital losses to offset the tax payable on the gain resulting in a nil tax payable.

(ii) PromisePay and mx51 Group
Following the finalisation of a business restructure, the Group has interests in both PromisePay Pte Ltd and mx51  
Group Pty Ltd. The Group reviewed the valuation of its interest in both entities. Refer to Note 9 for details of the  
valuation approach.

(iii) Other equity investments
This balance relates to investments in unlisted US based venture capital fund assets.

20. Business combination
On 1 July 2021 carsales.com Ltd acquired 100% of Transport Ventures Group, which consists of Tyreconnect Pty Ltd and  
its holding company Transport Ventures Pty Ltd. Tyreconnect is a B2B tyre distributor with a specialisation in servicing the 
OEM car dealership market. Its supply network includes tyre manufacturers and third-party wholesaler distributors, with  
a footprint throughout Australia.

(a) Purchase consideration

Cash paid

(b) Details of net assets and liabilities acquired

Cash and cash equivalents
Trade and other receivables
Plant and equipment
Software
Inventory
Customer relationships
Trade and other payables
Provisions
Borrowings
Current tax receivable
Deferred tax liabilities
Net identifiable assets acquired
Goodwill
Net assets acquired

$’000
19,739

Fair value recognised  
on acquisition  
$’000
344
3,120
279
1,104
966
1,184
(4,074)
(228)
(1,910)
69
(355)
499
19,240
19,739

The goodwill is attributable to the workforce and synergistic benefits that are expected to be created by this acquisition.

The goodwill is not expected to be deductible for tax purposes.

119

carsales Annual Report 2022ITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

20. Business combination continued
(c) Acquired receivables
The fair value of trade and other receivables include trade receivables which are expected to be collected in full.

(d) Acquisition related costs
Acquisition related costs of $0.2 million have been accounted for as expenses within consultant and contractor expenses 
and operations and administration expenses in the period in which they were incurred. 

(e) Revenue and profit before tax from continuing operations
From the date of acquisition, Transport Ventures Group contributed $31.0 million of revenue and $0.5 million loss to  
the profit before tax from continuing operations of the Group. 

There were no material acquisitions in the prior year. 

21. Parent entity financial information

Accounting Policy
The financial information for the parent entity, carsales.com Ltd, has been prepared on the same basis as the 
consolidated financial statements, except as set out below:

Investments in subsidiaries are accounted for at cost in the financial statements of carsales.com Ltd. Dividends 
received from subsidiaries are recognised in the parent entity’s profit or loss, rather than being deducted from the 
carrying amount of these investments. Investments in subsidiaries are tested for impairment whenever changes in 
events or circumstances indicate that the carrying amount may not be recoverable. Such events may include receipt 
of dividends. Refer to Note 17 for details of impairment accounting policies.

In addition to its own current and deferred tax amounts, carsales.com Ltd also recognises the current tax liabilities 
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from 
controlled entities in the tax consolidated group.

The entities have also entered into a tax funding agreement under which the wholly owned entities fully 
compensate the company for any current tax payable assumed and are compensated by the company for any 
current tax receivable and deferred taxes relating to unused tax losses or unused tax credits that are transferred to 
carsales.com Ltd under the tax consolidation legislation.

The funding amounts are determined by reference to the amounts recognised in the wholly owned entities’ financial 
statements. Assets or liabilities arising under tax funding agreements with the tax consolidated entities are 
recognised as amounts receivable or payable to other entities in the Group. Any difference between the amounts 
assumed and amounts receivable or payable under the tax funding agreement are recognised as a contribution to 
(or distribution from) wholly owned tax consolidated entities.

Where the parent entity has provided financial guarantees in relation to loans and payables of subsidiaries for no 
compensation, the fair values of these guarantees are accounted for as contributions and recognised as part of the 
cost of the investment.

120

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2022  
$’000

2021  
$’000

73,890
1,619,823
1,693,713
18,852
771,242
790,094
903,619

769,959
26,289
107,372
903,619
113,067
111,434

286,669
1,026,041
1,312,710
211,068
190,063
401,131
911,579

755,357
39,746
116,476
911,579
109,986
146,206

Financial year entered 
into agreement
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2015
30 June 2016
30 June 2016
30 June 2017
30 June 2018
30 June 2018
30 June 2021
30 June 2021
30 June 2022
30 June 2022
30 June 2022
30 June 2022
30 June 2022

(a) Summary financial information

Balance sheet
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Issued capital
Reserves
Retained earnings
Total equity
Profit for the year
Total comprehensive income

(b) Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2022 or 30 June 2021.

22. Deed of cross guarantee
The following controlled entities have entered into a Deed of Cross Guarantee:

Company
carsales.com Ltd
carsales Holdings Pty Ltd
carsales North America Holdings Pty Ltd (formerly carsales Finance Pty Ltd)
Auto Exchange Holdings Pty Ltd
Automotive Data Services Pty Ltd
carsales.com Investments Pty Ltd
Discount Vehicles Australia Pty Ltd
Equipment Research Group Pty Ltd
Webpointclassifieds Pty Ltd
carsales Latam Pty Ltd
carsales Foundation Pty Ltd
carsales Argentina Pty Ltd
Automotive Exchange Pty Ltd
AS1 Holdings Pty Ltd
Tyresales Pty Ltd
Appraisal Solutions Pty Ltd
carsales Tyre Holding Pty Ltd
Transport Ventures Pty Ltd
Tyreconnect Pty Ltd
Programmatic Holdings Pty Ltd
CS Motion Holdings Pty Ltd

The companies that are party to this deed guarantee the debts of the others and represent the ‘Closed Group’ from the 
date of entering into the agreement. These wholly-owned entities have been relieved from the requirement to prepare a 
Financial Report and Directors’ Report under Class Order 98/1418 (as amended) issued by the Australian Securities and 
Investments Commission.

121

carsales Annual Report 2022ITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

22. Deed of cross guarantee continued
(a) Consolidated statement of comprehensive income

Revenue from continuing operations
Revenue from contracts with customers
Revenue from continuing operations
Expenses
Operating expenses 
Earnings before interest, taxes, depreciation and amortisation
Depreciation and amortisation expense
Finance income
Finance costs
Fair value in put options
Dividends income
Profit before income tax
Income tax expense
Profit from continuing operations
Total comprehensive income for the year

2022 
$’000

2021 
$’000

391,568
391,568

324,750
324,750

(173,043)
218,525
(25,331)
996
(18,193)
289
4,371
180,657
(52,906)
127,751
140,426

(144,730)
180,020
(31,538)
995
(19,181)
-
2,471
132,767
(48,344)
84,423
112,157

122

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(b) Consolidated statement of financial position
Set out below is a consolidated statement of financial position as at 30 June 2022 of the Closed Group.

Consolidated statement of financial position
Current assets
Cash and cash equivalents
Trade and other receivables
Derivative assets
Inventory
Total current assets

Non-current assets
Investments accounted for using the equity method and subsidiaries
Financial assets at fair value through other comprehensive income
Property, plant and equipment
Right-of-use assets
Deferred tax assets
Intangible assets
Other receivables
Total non-current assets
Total assets

Current liabilities
Trade and other payables
Lease liabilities
Current tax liabilities
Provisions
Contract liabilities
Total current liabilities

Non-current liabilities
Trade and other payables
Borrowings
Lease liabilities
Deferred tax liabilities
Derivative liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets

Equity
Contributed equity
Reserves
Retained earnings
Total equity

2022 
$’000

2021 
$’000

42,075
56,833
5,526
3,222
107,656

537,689
36,896
4,349
38,076
15,226
158,734
793,072
1,584,042
1,691,698

37,142
3,303
29,560
9,036
4,216
83,257

-
649,533
45,017
6,615
1,153
1,069
703,387
786,644
905,054

769,959
27,021
108,074
905,054

238,862
40,441
33,658
-
312,961

537,689
49,529
5,194
41,810
15,086
123,436
13,905
786,649
1,099,610

26,122
3,366
13,034
8,036
3,707
54,265

37,723
43,195
48,220
15,009
-
1,014
145,161
199,426
900,184

755,357
41,870
102,957
900,184

123

carsales Annual Report 2022ITEMS NOTRECOGNISEDOTHERDIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

23. Related party transactions
The Group has identified the parties it considers to be related and the transactions conducted with those parties. Other 
than those disclosed below, no other related party transactions have been identified.

(a) Key Management Personnel compensation

Short-term employee benefits
Deferred short-term employee benefits
Post-employment benefits
Long-term employment benefits
Share-based payments

2022  
$
7,593,015
715,083
199,803
89,729
78,466
8,676,096

2021  
$
6,683,998
502,551
175,003
90,034
1,620,670
9,072,256

(b) Transactions with other related parties
The following transactions occurred with related parties, the nature of which are described in the Remuneration Report.

Sale of goods and services to related parties
Purchase of goods and services from related parties

2022 
$
1,282,428
1,731,952

2021 
$
1,458,813
775,180

All transactions were made on normal commercial terms and conditions, at market rates and includes transactions with 
associates.

(c) Outstanding balances arising from sales/purchases of goods and services
The following balances are outstanding at the end of the reporting period in relation to transactions with related parties:

Current receivables (sale of goods and services)
Other related parties
Current payables (purchase of goods and services)
Other related parties

2022  
$

2021  
$

83,115

98,070

12,718

73,093

There is no allowance accounted for impaired receivables in relation to any outstanding balances, and no expense has 
been recognised in respect of impaired receivables due from related parties.

124

carsales Annual Report 2022ITEMS NOT RECOGNISED
This section of the notes provides information about material items that are not recognised in the financial statements  
as they do not yet satisfy the recognition criteria.

24. Events occurring after the reporting period
On 27 June 2022, the Group announced that it had exercised its call option to acquire the remaining 51% in Trader 
Interactive LLC and the launch of an approximately AUD $1,207.0 million fully underwritten pro-rata accelerated 
renounceable entitlement offer (with retail rights trading) to fund the acquisition. The acquisition remains subject  
to conditions, which are expected to be completed in late Q1 or early Q2 FY23.

The entitlement offer was completed in July 2022, resulting in the issue of 68,001,706 additional ordinary shares  
and cash raised of AUD $1,182.0 million (net of transaction costs). 

On 8 July 2022, the AUD $651.0 million drawn down amount was repaid to the Tranche A and Tranche B financiers. 

No other matters or circumstances have occurred subsequent to period end that have significantly affected, or may 
significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group  
or economic entity in subsequent financial years.

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

OTHER
This section provides information on items which require disclosure to comply with Australian Accounting Standards and 
other regulatory pronouncements, however, are not considered critical in understanding the financial performance or 
position of the Group.

25. Remuneration of auditors
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its related 
practices and non-related audit firms:

(a) PricewaterhouseCoopers Australia

Audit and other assurance services

Audit and review of Financial Reports

  Due diligence services
  Other assurance services
Total remuneration for audit and other assurance services

Taxation services

2022  
$

2021  
$

820,590
 250,700 
 126,498 
 1,197,788 

477,000
697,175
57,320
1,231,495

Tax compliance services, including review of Company income tax returns
Tax consulting and tax advice on mergers and acquisitions

Total remuneration for taxation services

149,004
-
149,004

136,000
-
136,000

Other services
  Other services
Total remuneration for other services
Total remuneration of PricewaterhouseCoopers Australia

(b) Network firms of PricewaterhouseCoopers Australia 
Audit and other assurance services

Audit and review of Financial Reports

Total remuneration for audit and other assurance services

-
-
1,346,792

-
-
1,367,495

217,014
217,014

144,000
144,000

Taxation services

Tax compliance services, including review of Company income tax returns

Total remuneration for taxation services
Total remuneration of network firms of PricewaterhouseCoopers Australia

-
-
217,014

18,722
18,722
162,722

Total remuneration for PricewaterhouseCoopers

1,563,806

1,530,217

(c) Non-PwC audit firms

Audit and review of Financial Reports
Tax compliance services

Total remuneration for Non-PwC audit firms

Total auditors’ remuneration

296,529 
 22,382 
 318,911 

13,818
19,897
33,715

1,882,717

1,563,932

It is the Company’s policy to employ PwC on assignments additional to their statutory audit duties where PwC’s expertise 
and experience with the Company are important. These assignments are principally tax advice and due diligence reporting 
on acquisitions, or where PwC is awarded assignments on a competitive basis. It is the Company’s policy to seek 
competitive tenders for all major consulting projects.

126

carsales Annual Report 2022 
 
 
 
 
 
 
 
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26. Share-based payments
Share-based compensation benefits are provided to employees via the carsales.com Ltd Employee Option Plan.

Total expenses arising from share-based payment transactions recognised during the period as part of employee benefit 
expense were $2,097,675 (2021: $3,001,000).

Employee Option Plan
Set out below are summaries of options and performance rights granted under the plan:

2022

Exercise 
price

Grant date
Options
Oct 2016
Oct 2017
Oct 2018
Oct 2019
Total options
Weighted average exercise price

$12.23
$11.41
$14.87
$13.54

Performance rights
Oct 2018
Oct 2019
Aug 2020
Oct 2020
Aug 2021
Feb 2022
Total performance rights
Weighted average exercise price
Total of plan
Weighted average exercise price

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Opening 
balance

Granted 
during the 
year

Exercised 
during the 
year

Expired or 
lapsed 
during the 
year

88,221
51,491
426,452
285,056
851,220
$13.94

152,563
153,938
14,461
201,820
-
-
522,782
$0.00
1,374,002
$8.64

-
-
-
-
-
-

-
-
-
-
58,697
226,533
285,230
$0.00
285,230
$0.00

(18,260)
(22,588)
(369,739)
-
(410,587)
$14.56

(8,519)
-
(14,461)
-
-
-
(22,980)
$0.00
(433,567)
$13.79

-
(461)
(5,264)
(40,342)
(46,067)
$13.67

(144,044)
(23,854)
-
(40,329)
-
(35,806)
(244,033)
$0.00
(290,100)
$2.17

Closing 
balance

69,961
28,442
51,449
244,714
394,566
$13.33

-
130,084
-
161,491
58,697
190,727
540,999
$0.00
935,565
$5.62

Vested 
and 
exercis-
able at  
30 June

69,961
28,442
51,449
-
149,852
$12.98

-
-
-
-
-
-
-
$0.00
149,852
$12.98

127

carsales Annual Report 2022DIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

26. Share-based payments continued

2021

Exercise 
price

Grant date
Options
Oct 2015
Oct 2016
Oct 2017
Oct 2018
Oct 2019
Total options
Weighted average exercise price

$10.24
$12.23
$11.41
$14.87
$13.54

Performance rights
Oct 2017
Oct 2018
Feb 2019
Aug 2019
Oct 2019
Aug 2020
Dec 2020
Total performance rights
Weighted average exercise price
Total of plan
Weighted average exercise price

$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
$0.00

Opening 
balance 

Granted 
during  
the year

Exercised 
during  
the year

Expired or 
lapsed 
during  
the year

Closing 
balance

Vested and 
exercisable 
at 30 June

45,610
218,110
295,990
445,532
139,245
1,144,487
$13.13

186,281
159,387
-
19,784
82,335
-
-
447,787
$0.00
1,592,274
$9.43

-
-
-
-
148,871
148,871
$13.54

-
(235)
-
-
73,412
14,461
201,820
289,458
$0.00
438,329
$4.60

(44,599)
(115,344)
(236,201)
-
-
(396,144)
$11.52

(124,827)
-
-
(19,784)
-
-
-
(144,611)
$0.00
(540,755)
$8.44

(1,011)
(14,545)
(8,298)
(19,080)
(3,060)
(45,994)
$13.22

-
88,221
51,491
426,452
285,056
851,220
$13.94

(61,454)
(6,589)
-
-
(1,809)
-
-
(69,852)
$0.00

-
152,563
-
-
153,938
14,461
201,820
522,782
$0.00
(115,846) 1,374,002
$8.64

$5.25

-
88,221
51,491
-
-
139,712
$11.93

-
-
-
-
-
-
-
-
$0.00
139,712
$11.93

The estimate of the weighted average share price at the date of exercise of options exercised regularly during the year 
ended 30 June 2022 is estimated to be approximately $24.92 (2021: approximately $20.80).

The weighted average remaining contractual life of share options and rights outstanding at the end of the period was  
9.72 years (2021: 9.11 years).

The establishment of the carsales.com Ltd Employee Option Plan was undertaken under a prospectus lodged with ASIC  
in 2000. Staff eligible to participate in the plan are those invited by the Board of Directors.

Options and performance rights are granted under the plan for no consideration with conditions including a vesting period 
and expiry date. Senior Executives’ vesting conditions, including EPS targets, are noted in the Remuneration Report on 
page 36.

Options and performance rights granted under the plan carry no dividend or voting rights. When exercisable, each option 
is convertible into one ordinary share in return for payment of the option’s exercise price. Each performance right is 
convertible into one ordinary share for $0.00 exercise price, upon satisfaction of all vesting requirements.

128

carsales Annual Report 2022Fair value of options and performance rights granted
The fair value of the performance rights was determined using a Black Scholes model for those rights with non-market 
based vesting conditions and using the Monte Carlo method for those rights with market-based vesting conditions. 

The model inputs for performance rights granted during the year ended 30 June 2022 included:

Grant date
Share price at grant date
Fair value
Term
TSR rank
Expected price volatility of the Company’s shares
Expected dividend yield
Risk-free interest rate

21 Aug 21 
Non-Market Based
$21.20
$20.66
1.00
 n/a
43%
3%
1%

25 Feb 22
Market Based 
(35%)
$20.40
$14.31
2.35
6 out of 32
28%
3%
1%

25 Feb 22 
Non-Market Based 
(65%)
$20.40
$18.31
2.35
n/a
44%
3%
3%

The expected price volatility is based on historical volatility adjusted for any expected changes to future volatility due to 
publicly available information. No performance rights have a cost to exercise.

27. Other significant accounting policies
(a) Foreign currency translation
(i) Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary 
economic environment in which the entity operates (‘the functional currency’). The consolidated financial statements  
are presented in Australian dollars, which is carsales.com Ltd’s functional and presentation currency.

(ii) Transactions and balances

Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the  
dates of the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and  
from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies  
are recognised in the consolidated statement of comprehensive income.

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129

carsales Annual Report 2022DIRECTORS’DECLARATIONINDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS CONT. 
30 June 2022

(iii) Group companies

The results and financial position of foreign operations (none of which has been restated for a hyperinflationary economy) 
that have a functional currency different from the presentation currency are translated into the presentation currency  
as follows:

•   assets and liabilities for each consolidated statement of financial position presented are translated at the closing rate  

at the date of that balance sheet;

•   income and expenses for each consolidated statement of comprehensive income are translated at average exchange 
rates (unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transaction 
dates, in which case income and expenses are translated at the dates of the transactions); and

•   all resulting exchange differences are recognised as a separate component of equity.

On consolidation, exchange differences arising from the translation of any net investment in foreign entities and of 
borrowings are recognised as other comprehensive income. When a foreign operation is sold or any borrowings forming 
part of the net investment are repaid, a proportionate share of such exchange differences are recognised in the 
consolidated statement of comprehensive income as part of the gain or loss on sale where applicable.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities 
of the foreign operation and translated at the closing rate.

(b) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not 
recoverable from the tax authority. In this case, it is recognised as part of the cost of acquisition of the asset or as part  
of the expense.

Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST 
recoverable from, or payable to, the tax authority is included with other receivables or payables in the consolidated 
statement of financial position.

Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities 
which are recoverable from, or payable to the tax authority, are presented as operating cash flow.

(c) New and amended Accounting Standards and Interpretations
(i) New and amended Accounting Standards and Interpretations issued and effective

The Group has not adopted any new or amended Accounting Standards and Interpretations this year that have had  
a material impact on the Group or the Company.

(ii) Accounting standards and Interpretations issued but not yet effective

Certain new accounting standards and interpretations have been published that are not mandatory for 30 June 2022 
reporting periods and have not been early adopted by the Group. These standards are not expected to have a material 
impact on the entity in the current or future reporting periods and on foreseeable future transactions.

130

carsales Annual Report 2022DIRECTORS’ DECLARATION

In the Directors’ opinion:

(a)  the financial statements and notes set out on pages 62 to 130 are in accordance with the Corporations Act 2001, 

 including:

(i)  Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional 

reporting requirements.

(ii)  Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2022 and of its performance 

for the financial year ended on that date.

(b)  there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become 

due and payable.

The basis of preparation confirms that the financial statements also comply with International Financial Reporting 
Standards as issued by the International Accounting Standards Board.

The Directors have been given the declarations by the Managing Director and CEO, and Chief Financial Officer required 
by section 295A of the Corporations Act 2001.

Cameron McIntyre 
Managing Director and CEO

Melbourne 
14 August 2022

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131

carsales Annual Report 2022INDEPENDENT AUDITOR’SREPORT TO THE MEMBERSOF CARSALES.COM LTDSHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF CARSALES.COM LTD

Report on the audit of the financial report
Our opinion

In our opinion:

The accompanying financial report of carsales.com Limited (the Company) and its controlled entities (together the Group) 
is in accordance with the Corporations Act 2001, including:

(a) giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its financial performance for the 

year then ended 

(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.

What we have audited

The Group financial report comprises:

•  the consolidated statement of financial position as at 30 June 2022

•  the consolidated statement of comprehensive income for the year then ended

•  the consolidated statement of changes in equity for the year then ended

•  the consolidated statement of cash flows for the year then ended

•  the notes to the consolidated financial statements, which include significant accounting policies and other explanatory 

information

•  the directors’ declaration.

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are 
further described in the Auditor’s responsibilities for the audit of the financial report section of our report.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 
2001 and the ethical requirements of the Accounting Professional & Ethical Standards Board’s APES 110 Code of Ethics for 
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial 
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au

Liability limited by a scheme approved under Professional Standards Legislation.

132

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’

Our audit approach

An audit is designed to provide reasonable assurance about whether the financial report is free from material 
misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in aggregate, 
they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial report.

We tailored the scope of our audit to ensure that we performed enough work to be able to give an opinion on the financial 
report as a whole, taking into account the geographic and management structure of the Group, its accounting processes 
and controls and the industry in which it operates.

Materiality

•  For the purpose of our audit we used overall Group materiality of $11.2 million, which represents approximately 5% of 

the Group’s profit before income tax from continuing operations.

•  We applied this threshold, together with qualitative considerations, to determine the scope of our audit and the  

nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial report  
as a whole.

•  We chose Group profit before income tax from continuing operations because, in our view, it is the benchmark against 

which the performance of the Group is most commonly measured and is a generally accepted benchmark.

•  We selected a 5% threshold based on our professional judgement, noting that it is within the range of commonly 

acceptable profit related thresholds.

Audit Scope

•  Our audit focused on where the Group made subjective judgements; for example, significant accounting estimates 

involving assumptions and inherently uncertain future events.

•  carsales.com Limited operates across five reporting segments, being Australia - Online Advertising Services, Australia - 
Data, Research and Services, Australia - carsales Investments, Americas and Asia, as described in note 1 of the financial 
report. Its head office function is based in Melbourne, Australia.

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the 
financial report for the current period. The key audit matters were addressed in the context of our audit of the financial 
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. 
Further, any commentary on the outcomes of a particular audit procedure is made in that context. We communicated  
the key audit matters to the Audit Committee.

133

carsales Annual Report 2022SHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF CARSALES.COM LTD CONTINUED

Key audit matter

Carrying value of intangible assets for South Korea

(Refer to note 17 Intangible assets)

The Group’s intangible assets included $483.9 million of goodwill and $52.4m of brands and customer relationships at 30 
June 2022. The South Korea cash generating unit (CGU) contains $343.1 million of goodwill and $43.7 million of brands and 
customer relationships. Goodwill was required to be tested for impairment in accordance with Australian Accounting 
Standards. 

In order to test for impairment of goodwill, the Group prepared an impairment model which forecast cash flows, 
discounted to their present value. The valuation method used to test for impairment was fair value less costs to sell for the 
South Korea CGU.

The carrying value of intangible assets for South Korea was a key audit matter given it was financially significant to the 
Group and there were judgements and assumptions involved in estimating the cash flow forecasts and other key 
assumptions, particularly discount rate and terminal growth rate.

How our audit addressed the key audit matter

We performed the following procedures, amongst others:

•  Tested the mathematical accuracy of the calculations made in the impairment model.

•  Compared the forecast cash flows used in the impairment model with the FY23 budget.

•  Assessed the historical accuracy of the Group’s cash flow forecasts by comparing prior budgets to actual performance.

•  Assessed the appropriateness and supportability of the cash flow forecasts by considering the key factors upon which 

they were based and the underlying drivers for growth.

•  Compared growth rate assumptions used in the impairment model to historical results and economic and industry 

forecasts.

•  Assessed the allocation of assets and liabilities to the CGU.

•  Considered whether it would be possible to determine a reliable estimate of the amount obtainable in an arm’s length 

transaction between knowledgeable and willing parties, by determining fair value less costs to sell. 

•  With the assistance of our internal valuation experts, we assessed the discount rate and terminal growth rate used  

in the impairment model by comparing them to market data, comparable companies and industry research.

•  Considered the disclosures made in note 17, in light of the requirements of Australian Accounting Standards.

134

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Key audit matter

Acquisition of Trader Interactive LLC

(Refer to note 19(c)) Interests in associates and note 24 Events occurring after the reporting period)

On 1 September 2021 the Group acquired 49% of Trader Interactive LLC (“Trader Interactive”) for $794.7 million (excluding 
transaction costs and hedging impacts) and 49% of promissory notes receivable for $19.1 million. The transaction was 
accounted for in accordance with AASB 128 Investments in Associates as an equity accounted investment.

The Group undertook a preliminary notional purchase price allocation (PPA) exercise in order to calculate the Group’s 
share of Trader Interactive’s profit and the make-up of the investment carrying value, including fair value adjustments.

On 27 June 2022, the Group exercised its call option to acquire the remaining 51% in Trader Interactive for $1,172 million 
and the transaction is expected to complete late in the first quarter of FY23. 

The acquisition was funded by an entitlement offer which was completed in July 2022, resulting in the issue of 68,001,706 
additional ordinary shares and cash raised of $1,182 million (net of transaction costs).

Equity accounting for Trader Interactive and the subsequent announcement of the acquisition of the remaining 51% are 
considered to be a key audit matter as both transactions are significant to the Group and there were judgements and 
assumptions made in estimating the preliminary notional fair value of acquired intangible assets and the resulting 
amortisation expense, which formed part of carsales’ share of Trader Interactive’s profit for the year. 

How our audit addressed the key audit matter

We performed the following procedures, amongst others: 

•  Read the sale and purchase agreements and considered the adoption of equity accounting for the initial 49% interest as 

at 1 September 2021 and the timing of recognition of the remaining 51%, as an event subsequent to 30 June 2022.

•  Evaluated the preliminary notional PPA including accounting for the acquisition hedge gain, capitalised transaction costs 

and the valuation and useful life of acquired intangible assets. 

•  Tested the mathematical accuracy of the calculations made in the PPA.

•  With the assistance of our internal valuation experts, we assessed the valuation methodologies and key assumptions 

determined by the independent valuer and adopted by management, to value acquired intangible assets and estimate 
their useful lives in order to calculate amortisation expense.

•  Assessed the reasonableness of the Group’s share of Trader Interactive’s profit after tax for the ten months from 

transaction date to 30 June 2022. 

•  Considered the disclosures made in note 19(c) and note 24, in light of the requirements of Australian  

Accounting Standards. 

Other information

The directors are responsible for the other information. The other information comprises the information included in the 
annual report for the year ended 30 June 2022, but does not include the financial report and our auditor’s report thereon.

135

carsales Annual Report 2022SHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
INDEPENDENT AUDITOR’S REPORT TO
THE MEMBERS OF CARSALES.COM LTD CONTINUED

Our opinion on the financial report does not cover the other information and accordingly we do not express any form of 
assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, 
consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in 
the audit, or otherwise appears to be materially misstated.

If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s 
report, we conclude that there is a material misstatement of this other information, we are required to report that fact.  
We have nothing to report in this regard.

Responsibilities of the directors for the financial report

The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in 
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the 
directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free 
from material misstatement, whether due to fraud or error.

In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as a going 
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless 
the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material 
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable 
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian 
Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error 
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the 
economic decisions of users taken on the basis of the financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance 
Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part 
of our auditor’s report.

Report on the remuneration report
Our opinion on the remuneration report

We have audited the remuneration report included in pages 36 to 55 of the directors’ report for the year ended 30 June 
2022.

In our opinion, the remuneration report of carsales.com Limited for the year ended 30 June 2022 complies with section 
300A of the Corporations Act 2001.

136

carsales Annual Report 2022Responsibilities

The directors of the Company are responsible for the preparation and presentation of the remuneration report in 
accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the 
remuneration report, based on our audit conducted in accordance with Australian Auditing Standards. 

PricewaterhouseCoopers

Lisa Harker 
Partner

Melbourne 
14 August 2022

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137

carsales Annual Report 2022SHAREHOLDERINFORMATIONCORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SHAREHOLDER INFORMATION

The shareholder information set out below was applicable as at 30 June 2022.

A. Distribution of equity securities

Holding
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over

Class of equity security

Ordinary shares

Shares
No. of holders
11,456
6,291
772
472
77
19,068

Options and 
performance 
rights
No. of holders
1
15
2
16
1
35

Redeemable 
preference 
shares
No. of holders
-
-
-
-
-
-

Convertible 
notes
No. of holders
-
-
-
-
-
-

There were 569 holders of less than a marketable parcel of ordinary shares. There were no redeemable preference shares 
or convertible notes outstanding.

B. Equity security holders
Twenty largest quoted equity security holders
The names of the twenty largest holders of quoted equity securities are listed below:

HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMS PTY LTD 
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD 
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED-GSCO ECA
GREG ROEBUCK
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 
GRANT TAYLOR
STEVEN KLOSS PTY LTD 
CS THIRD NOMINEES PTY LIMITED 
BILLKAREN PTY LTD 
NETWEALTH INVESTMENTS LIMITED 
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED - A/C 2
MUTUAL TRUST PTY LTD
MILTON CORPORATION LIMITED
AUSTRALIAN FOUNDATION INVESTMENT COMPANY LIMITED
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD 

Ordinary shares

Number 
held
89,460,527
48,456,611
31,192,863
9,503,027
8,558,327
6,086,929
5,154,342
4,164,634
3,302,796
2,717,212
2,664,000
2,481,900
2,250,434
1,875,000
1,821,866
1,642,195
1,547,540
1,368,245
1,316,389
1,304,714
226,869,551

Percentage 
of issued 
shares
31.63
17.13
11.03
3.36
3.03
2.15
1.82
1.47
1.17
0.96
0.94
0.88
0.80
0.66
0.64
0.58
0.55
0.48
0.47
0.46
80.21

138

carsales Annual Report 2022 
 
 
  
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Options and performance rights issued under the carsales.com Ltd
Employee Option Plan to take up ordinary shares

C. Substantial holders 
Substantial holders in the Company are set out below: 

Bennelong Funds Management Group Pty Ltd

D. Voting rights 
The voting rights attaching to each class of equity securities are set out below: 

Number on 
issue

Number of 
holders

935,565

35

Number 

held Percentage
7.02

19,863,952

(a) Ordinary shares
On a show of hands every member present at a meeting in person or by proxy shall have one vote and upon a poll each 
share shall have one vote.

(b) Options
No voting rights.

139

carsales Annual Report 2022CORPORATEDIRECTORY 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CORPORATE DIRECTORY

Directors
Pat O’Sullivan 
(Non-Executive Chair)

Cameron McIntyre 
(Managing Director and CEO)

Wal Pisciotta OAM 
(Non-Executive Director)

Kim Anderson 
(Non-Executive Director)

Edwina Gilbert 
(Non-Executive Director)

Kee Wong 
(Non-Executive Director)

David Wiadrowski 
(Non-Executive Director)

Steve Kloss 
(Alternate Non-Executive Director)

Company secretary
Nicole Birman

Registered office
Level 4, 449 Punt Road Richmond Vic 3121

T +61 3 9093 8600 
F +61 3 9093 8697

carsales.com.au

Share registry
Computershare Ltd 
452 Johnston Street Abbotsford Vic 3067 
T +61 3 9415 4000 
F +61 3 9473 2500 
computershare.com

External auditor
PricewaterhouseCoopers 
2 Riverside Quay Southbank Vic 3006

Stock Exchange
carsales.com Ltd is a public company listed with 
the Australian Securities Exchange Limited

ASX: CAR

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