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Update on Business Transformation

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Update on Business Transformation Doug Clarke President, Trader Corporation
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Page 1: Update on Business Transformation

Update on Business TransformationDoug ClarkePresident, Trader Corporation

Page 2: Update on Business Transformation

p.2

Business Overview

Automotive Real Estate Generalist

67%

Page 3: Update on Business Transformation

p.3

Automotive

Strong brands

Customer relationships

National sales plateform

Business Overview

Page 4: Update on Business Transformation

p.4

Market Segments

300 Dealer Groups

with 1,200 dealerships

15,500Single Stores

PASSENGER VEHICLEDEALERS:

10,500

PASSENGER VEHICLEDEALERS:

10,500

NON-PASSENGER VEHICLE

DEALERS:

6,200

NON-PASSENGER VEHICLE

DEALERS:

6,200

CAR MANUFACTURERS:

25

CAR MANUFACTURERS:

25

Addressable Automotive Market in Canada

Trader Penetration

62%

29%

80%

Page 5: Update on Business Transformation

p.5

Canadian Consumer Purchasing Behaviour

They use automotive media and search engines They use automotive media and search engines

Page 6: Update on Business Transformation

p.6

Opportunity to expand into a one-stop shop solutionOpportunity to expand into a one-stop shop solution

Automotive Dealer Needs

Easy to use Back-end Tools

Expertise and Benchmarking

OnlineMarketing

Dealer GroupEfficiencies

WebsiteManagement

Reporting Data Capture & Service

Media that Generate Leads

Page 7: Update on Business Transformation

p.7 7

Expanding the Business Model

Trader Media Trader Solution

Marketplace for Buyers and Leads Generator for Sellers

Media Solution Provider and Trusted Advisor for Sellers

Page 8: Update on Business Transformation

p.8

Trader Automotive Media Strategy

MAINTAIN

Keep Relevancy of Print Titles

GROW

#1 Marketplace with Expansion in Social Media

INTRODUCE

Initial Focus on User Acquisition

Page 9: Update on Business Transformation

p.9

Trader network reaches almost 5M unique visitorsTrader network reaches almost 5M unique visitors

Leadership in Automotive Marketplace

Dealer Penetration

Auto

Trad

er

Drivin

g

Auto

123

Whe

els

Auto

net

Unique Visitors ('000)

0

500

1,000

1,500

2,000

2,500

LesPac.c

om

Autotrader.c

a

Auto123.com

Driving.ca

Sites

Autonet.ca

Whee

ls.ca

9,000

7,500

6,000

4,500

3,000

1,500

0

Page 10: Update on Business Transformation

p.10

A unique integrated solution supported by expertsA unique integrated solution supported by experts

Creating Dealer Smart Solutions

4

1 2

3

Improved

Expanded

NEW!

NEW!

Page 11: Update on Business Transformation

p.11

Dealer.com Partnership

Relationship since January 2009

Long-term Commercial Agreement on technology

Path to ownership control

(in US$ millions)

7

2005

13

2006

17

2007

32

2008

51

2009

CAGR : 67%

13,500 US dealers

80% of top 125 dealer groups

Best-in-class solution provider in North AmericaBest-in-class solution provider in North America

Page 12: Update on Business Transformation

p.12

AWARD WINNING

WEBSITES*

Best-in-class website built to drive traffic and leadsBest-in-class website built to drive traffic and leads

“Smart” Website

Search engine optimized

Built to generate leads

Scalable

Page 13: Update on Business Transformation

p.13

Print Online Network 3rd Party Network

Media

Exposure to Trader and third party media networkExposure to Trader and third party media network

Page 14: Update on Business Transformation

p.14

Inventory acquired

Leads delivered to dealerships /Conversion to customers

Service & Capture

Ensure quality of content and lead generation Ensure quality of content and lead generation

Page 15: Update on Business Transformation

p.15

Cutting Edge Intelligence

Understand what works and what doesn’tUnderstand what works and what doesn’t

Inventory management

Media performance management

Cost per lead tracking

Website performance analytics

Search engine analytics

Page 16: Update on Business Transformation

p.16

Additional Products Creates Growth Opportunities

Video Online display

Call trackingSearch engine marketing Mobile smart site

Media up-sell

Page 17: Update on Business Transformation

p.17

Trader media is the main traffic generator for Dealer Smart sitesTrader media is the main traffic generator for Dealer Smart sites

Traffic

Bing2%

Direct Hits24%

Google Traffic26%

Trader Traffic31%

Dealer Group4%

Yahoo1%

Other12%

Driving Traffic and Leads to Customers

Page 18: Update on Business Transformation

p.18

Phone represents 2/3 of leads received by dealersPhone represents 2/3 of leads received by dealers

Trader Phone37%

DSS - Web16%

Trader Web20%DSS - Phone

27%

Lead Generation

Driving Traffic and Leads to Customers

Page 19: Update on Business Transformation

p.19

0

500

1000

1500

2000

2500

3000

Q1

-20

09

Q2

-20

09

Q3

-20

09

Q4

-20

09

Q1

-20

10

Q2

-YTD

Successful Rollout of Dealer Smart Solution

Successfully stabilized revenue with room to grow share of walletSuccessfully stabilized revenue with room to grow share of wallet

Number of DSS Customers

Commercial80%

Private/National/Circulation

20%

DSS Bundle / Recurring Revenue

60%

AdditionalMedia Upsell

40%

Revenue Breakdown

Page 20: Update on Business Transformation

p.20

Key Learnings

1. Sales transformation: From order takers to trusted advisors

2. Continued education of customers

3. Servicing solutions versus media

Empowering the sellerEmpowering the seller

Page 21: Update on Business Transformation

p.21 21

Non-Passenger Vehicle Solutions

Recent expansion of solution in nine categoriesRecent expansion of solution in nine categories

Page 22: Update on Business Transformation

p.22 22

Evolution of the Solution

Objective is to create a unique and unparalleled solutionObjective is to create a unique and unparalleled solution

InventoryOptimization

Vehicle EvaluationProvider

B2BServices

Current Focus

Financial& Insurance Services

MarketingServices

EmploymentServices

CRMProvider

DMSProviders

Future Opportunities

SyndicationServices

Media & LeadsManagement

WebsiteProvider

2009 Dealer Smart Solution

Page 23: Update on Business Transformation

p.23

Evolution of the Solution to Other Segments

Automotive

Passenger Vehicle

Real Estate Generalist

Non Passenger Vehicle

Resale Brokers& Resale Agents

Builders

Property Managers

Page 24: Update on Business Transformation

p.24

Concluding Remarks

Trader has undergone a significant transformation

Diversified revenue stream

Opportunity to expand Dealer Smart Solution to other verticals


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