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    Daniela Haigian • Morgan Stanley

    Daniela Haigian's questions to Carvana Co (CVNA) leadership

    Daniela Haigian's questions to Carvana Co (CVNA) leadership • Q4 2024

    Question

    Daniela Haigian from Morgan Stanley asked about the progress of conversations with credit rating agencies to improve Carvana's rating and questioned what the biggest near-term gating factors are for unit growth.

    Answer

    CFO Mark Jenkins responded that delivering strong financial metrics, such as their net debt to adjusted EBITDA of 2.8x and interest coverage above 2x, is the most important factor for improving their credit profile. CEO Ernie Garcia identified the entire operational chain as a factor for growth, with reconditioning being the most intensive part, but noted they have real estate capacity for 3 million units, mitigating a major historical bottleneck.

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    Daniela Haigian's questions to Carvana Co (CVNA) leadership • Q2 2025

    Question

    Daniela Haigian of Morgan Stanley inquired about the sustainability of Carvana's high incremental adjusted EBITDA margin and questioned if the company sees opportunities to expand its Total Addressable Market (TAM) beyond used cars, similar to autonomous fleet management partnerships in the industry.

    Answer

    CEO Ernie Garcia affirmed that the strong margin reflects business leverage and aligns with their long-term goal of selling 3 million units with a 13.5% EBITDA margin. Regarding TAM expansion, Garcia stated that while they see many opportunities, their primary focus remains on executing and improving the core used car retail business.

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    Daniela Haigian's questions to Carvana Co (CVNA) leadership • Q2 2025

    Question

    Daniela Haigian of Morgan Stanley inquired about the sustainability of the quarter's high incremental adjusted EBITDA margin and asked about the potential for Carvana's Total Addressable Market (TAM) to expand beyond used cars, citing the company's reconditioning and logistics infrastructure.

    Answer

    CEO Ernie Garcia explained that while the incremental margin was strong, the company's primary focus remains on its long-term goals of selling 3 million units annually with a 13.5% adjusted EBITDA margin. Regarding TAM expansion, Garcia acknowledged seeing many opportunities but stressed that the company is staying focused on its core mission of improving the customer experience and efficiency in the used car market.

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    Daniela Haigian's questions to Carvana Co (CVNA) leadership • Q1 2025

    Question

    Daniela Haigian asked for commentary on the drivers behind the strong sequential increase in gain on sale of loans, particularly across Carvana's various monetization channels.

    Answer

    CFO Mark Jenkins explained that the strength in finance GPU and gain on sale is driven by continuous fundamental gains. These gains come from two main areas: improving the credit platform's sophistication in scoring and pricing, and lowering the cost of funds, partly by bringing new buyers to the platform. While wider interest rate spreads were a factor year-over-year, he stressed that the primary driver is the team's ongoing work to optimize the lending and monetization systems.

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    Daniela Haigian's questions to Lithia Motors Inc (LAD) leadership

    Daniela Haigian's questions to Lithia Motors Inc (LAD) leadership • Q2 2025

    Question

    Daniela Haigian from Morgan Stanley asked about used car availability, the mix across CPO, core, and value segments, and competition from online retailers. She also inquired about the M&A environment and the impact of policy uncertainty on deal flow.

    Answer

    President & CEO Bryan DeBoer highlighted strong growth in the value auto segment (vehicles over 9 years old), up 50% YoY, and noted that sourcing over two-thirds of vehicles from consumers provides a GPU advantage. On M&A, he stated the company expects to achieve the low end of its $2-4 billion annual acquired revenue target as seller expectations normalize.

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    Daniela Haigian's questions to Lithia Motors Inc (LAD) leadership • Q1 2025

    Question

    Daniela Haigian asked about the parts and service business, specifically focusing on capacity, technician availability, and how the company plans to continue growing the segment.

    Answer

    President and CEO Bryan DeBoer responded that significant capacity exists, with current service stall utilization below 50%, allowing for growth through extended hours or additional shifts. He noted that technician staffing is strong as the company 'grows its own.' The key growth driver is a mindset shift at the store level to actively pursue both warranty and customer-pay work simultaneously, thereby increasing technician productivity and overall throughput.

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    Daniela Haigian's questions to AutoNation Inc (AN) leadership

    Daniela Haigian's questions to AutoNation Inc (AN) leadership • Q2 2025

    Question

    Daniela Haigian from Morgan Stanley asked about the capacity and top-line growth outlook for the parts and service segment over the next few years, considering vehicle affordability. She also inquired about the competitive landscape in the used vehicle market.

    Answer

    CEO Michael Manley identified affordability as a key focus, noting that pent-up demand and a robust after-sales market provide significant future opportunities. CFO Thomas Szlosek confirmed that the company has ample physical capacity for service growth. Regarding used vehicles, Manley asserted that the market is large enough for all players to grow and highlighted AutoNation's unique advantage in leveraging its franchise brands to sell certified pre-owned vehicles, which builds customer confidence.

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    Daniela Haigian's questions to AutoNation Inc (AN) leadership • Q1 2025

    Question

    Daniela Haigian asked about the age mix of AutoNation's used vehicle inventory and whether there was an opportunity to focus more on older vehicles to meet affordability-driven demand. She also inquired about the current state of after-sales capacity and the potential for future growth.

    Answer

    CEO Mike Manley confirmed that demand for vehicles under $20,000 remains strong and is a focus area, noting they intentionally increased used inventory in Q1. On after-sales, he stated that while they have plenty of physical capacity (service bays), the key constraint is technician headcount, which they are actively growing. He sees significant growth opportunity by better penetrating the 7-year-plus vehicle park, which requires more technicians and tailored service offerings.

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    Daniela Haigian's questions to Group 1 Automotive Inc (GPI) leadership

    Daniela Haigian's questions to Group 1 Automotive Inc (GPI) leadership • Q2 2025

    Question

    Daniela Haigian from Morgan Stanley asked about the key drivers and risks for the parts and service business over the next one to three years, and how Group 1 views competition from online used car retailers.

    Answer

    CEO Daryl Kenningham stated that future aftersales growth depends on capturing a larger share of the market for vehicles older than four years through competitive pricing and targeted marketing using first-party data. CFO Daniel McHenry added that older vehicles generate higher repair order values. Regarding competition, Kenningham said Group 1 learns from online retailers and sees significant opportunity to grow its own used business digitally within its existing footprint.

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    Daniela Haigian's questions to Group 1 Automotive Inc (GPI) leadership • Q1 2025

    Question

    Daniela Haigian asked about the efficiencies seen from the cluster marketing initiative and the key learnings from the U.K. branding effort. She also questioned if the current environment and policy uncertainty have shifted the company's capital allocation strategy or impacted the M&A pipeline.

    Answer

    CEO Daryl Kenningham explained that it's still early for the marketing initiative, but the goal is to leverage in-house data for proactive, local customer management. On capital allocation, he stated that some discretionary capital projects have been deferred by about six months and spending has been reviewed, but nothing has been canceled. He added that policy uncertainty has not yet materially impacted the M&A environment.

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    Daniela Haigian's questions to Penske Automotive Group Inc (PAG) leadership

    Daniela Haigian's questions to Penske Automotive Group Inc (PAG) leadership • Q1 2025

    Question

    Daniela Haigian questioned the strategy for used vehicle sourcing, asking if there's an opportunity in older vehicles, and inquired about the capacity and growth potential within the parts and service business.

    Answer

    Chair and CEO Roger Penske firmly stated the company will maintain its focus on 1-4 year old used vehicles, citing better profitability and lower brand risk. EVP Rich Shearing confirmed they have existing capacity in the service business and are focused on hiring more technicians to increase utilization before adding facilities, noting they grew technician headcount by 94 in Q1.

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    Daniela Haigian's questions to Sonic Automotive Inc (SAH) leadership

    Daniela Haigian's questions to Sonic Automotive Inc (SAH) leadership • Q1 2025

    Question

    Daniela Haigian of Morgan Stanley asked if EchoPark might pivot to selling older used vehicles to address affordability concerns, especially if tariffs tighten the supply of newer models.

    Answer

    President Jeff Dyke acknowledged that while they sold older vehicles during the COVID period and have the capability to do so again, they prefer to avoid it. He explained that selling older cars adds complexity to reconditioning and operations, which runs counter to the streamlined EchoPark model. He stated they can currently source enough 1-4 year old vehicles for their existing 17 stores.

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