Auto Trader : Gender & ethnicity cultural KPIs 2024 (definitions, methodology & assurance)

March 2024

Diversity & Inclusion - Gender & ethnicity cultural KPIs

This methodology document covers our Diversity and Inclusion commitments along with the KPIs (Key Performance Indicators) we use to measure them. There has been no change in methodology applied in the prior year.

The data relates to Auto Trader Group plc and its subsidiary legal entities included in the consolidated financial statements. Details of the subsidiary legal entities can be found in the

Group's Annual Report which can be found athttps://plc.autotrader.co.uk/investors/results-centre/

Our Commitments

Have a representative workforce of the communities we operate in with a focus on Women, Ethnicity, LGBT+, Disability & Neurodiversity, Age and Social Mobility across all levels of our business.

Create an environment where everyone feels included with high levels of engagement especially across the different diversity focus areas

Our Diversity KPIs

• Women representation overall: Based on the percentage of employees who are women (both cis and trans) at the end of March. In calculating this percentage we include all gender identities, including non-binary
• Ethnicity representation overall: Based on the percentage of our headcount that define themselves as ethnically diverse as at the end of March. In calculating this percentage we include those who have chosen not to specify their ethnicity in our total headcount.
• Women representation in Leadership roles: Based on the percentage of those in leadership positions who are women (both cis and trans) at the end of March. In calculating this percentage we include all gender identities, including non-binary.
• Ethnicity representation in Leadership roles: Based on the percentage of those in leadership positions that define themselves as ethnically diverse at the end of March.

Definitions

We calculate our diversity percentages using total group headcount (which excludes the Non- Executive Directors).

Gender

We use the legal gender declaration by our colleague which is stored in our payroll systems for tax purposes. Where a colleague has selected an alternative gender identity to that used for HMRC submissions, the gender identity will take precedence.

*For clarity, when calculating women representation we include both cis and trans women.

Ethnicity

When colleagues declare their ethnicity, we use the same ethnicity categories as the ONS. These are:

• Asian, Asian British or Asian Welsh: Bangladeshi
• Asian, Asian British or Asian Welsh: Chinese
• Asian, Asian British or Asian Welsh: Indian
• Asian, Asian British or Asian Welsh: Pakistani
• Asian, Asian British or Asian Welsh: Other Asian
• Black, Black British, Black Welsh, Caribbean or African: African
• Black, Black British, Black Welsh, Caribbean or African: Caribbean
• Black, Black British, Black Welsh, Caribbean or African: Other Black
• Mixed or Multiple ethnic groups: White and Asian
• Mixed or Multiple ethnic groups: White and Black African

March 2024

• Mixed or Multiple ethnic groups: White and Black Caribbean
• Mixed or Multiple ethnic groups: Other Mixed or Multiple ethnic groups
• White: British
• White: Irish
• White: Other
• Arab
• Gypsy, Roma or Traveller
• Any other ethnic group
• Not Known
• Prefer not to say

When reporting, we group White - British, White - Irish and White Other into a 'White' grouping. Not Known or Prefer not to say or yet to disclose in a 'Not Disclosed' grouping. All other ethnicity categories are grouped together under an 'Ethnically Diverse' grouping.

Senior Leadership

We include our OLT (Operational Leadership Team) and their direct reports when referring to women and ethnically diverse representation in leadership.

Why are we reporting this?

At Auto Trader, we are committed to creating a diverse and inclusive work community that enhances our culture and improves our business through our ability to attract, identify and develop talent.

We believe it is important to be accountable and transparent which is why we choose to publish both our ethnicity and gender pay gaps and monitor progress through our cultural KPIs.

We are committed to driving long-term change in both the technology and automotive industries. Our focus is on developing diverse leaders as well as representative workforces in these industries.

We believe that the presence of diversity in an organisation, coupled with an inclusive environment, can foster innovation, drive better problem-solving capabilities and lead to stronger financial performance.

Improving gender and ethnicity across our leadership will help to attract, develop, and retain talent.

Research shows that having both diverse representation and diversity in role models to be an important factor in a candidate's choice of organisation.

It supports external submissions such as the FTSE Women Leaders Review and Parker Review as well as external commitments we have signed, such as Race at Work Charter.

Timeframe

Data is taken as of the 31-March of each year to ensure consistency.

Scope

Our reporting includes everyone with an employee contract under Auto Trader Group.

Data source and process

Gender data:

Our Senior People Analyst will export the Gender data from our HRIS for a pre-built report. This field is entered upon joining the business by the People Operations team and is unavailable for editing by employees. This will only be updated if a change of gender deed is provided via email to People Operations. Gender identity is a separate field in a colleagues profile in our HRIS and can be changed or deleted on demand. Where a gender identity is provided which is different to the gender field, gender identity will replace the legal gender data used for HMRC submissions.

Ethnicity data:

Ethnicity data is also exported from the same pre-built report as gender and gender identity. Ethnicity data is voluntarily provided by all employees in the diversity section of their HRIS profile. All colleagues have access to their profile and can update or remove their data on demand.

March 2024

Data calculation:

For each KPI the number of colleagues who have identified themselves as a woman or ethnically diverse will be divided by the total number of people in the business. This will result in a percentage which we report to 1 decimal place.

Visibility of data:

Access to gender and ethnicity data is strictly limited to the People Operations team. When sharing data with the business, reports are only produced at an aggregated level to keep the data unidentifiable.

Data format

Data is extracted and manipulated in Excel

Independent Limited Assurance Report of KPMG LLP to Auto Trader Group plc

KPMG LLP ("KPMG" or "we") were engaged by Auto Trader Group plc ("Auto Trader") to provide limited assurance over the Selected Information described below as at 31 March 2024.

Our conclusion

Based on the work we have performed and the evidence we have obtained, nothing has come to our attention that causes us to believe that the Selected Information has not been properly prepared, in all material respects, in accordance with the Reporting Criteria.

This conclusion is to be read in the context of the remainder of this report, in particular the inherent limitations explained below and this report's intended use.

Selected Information

The scope of our work includes only the information included within the sustainability section ("the Report") of Auto Trader's Annual Report and Accounts ("the Report") as at 31 March 2024 marked with the symbol ("the Selected Information") and listed in Appendix 1.

We have not performed any work, and do not express any conclusion, over any other information that may be included in the Report or displayed elsewhere on Auto Trader's website for the current year or for previous periods unless otherwise indicated.

Reporting Criteria

The Reporting Criteria we used to form our judgements are Auto Trader's Reporting Criteria as set out at https://plc.autotrader.co.uk/esg/policies-reports ("the Reporting Criteria"). The Selected Information needs to be read together with the Reporting Criteria.

Inherent limitations

The nature of non-financial information; the absence of a significant body of established practice on which to draw; and the methods and precision used to determine non-financial information, allow for different, but acceptable evaluation and measurement techniques and can result in materially different measurements, affecting comparability between entities and over time. The Reporting Criteria has been developed to assist Auto Trader Group plc in producing the Selected Information in their Annual Report as at 31 March 24. As a result, the Selected Information may not be suitable for another purpose.

Directors' responsibilities

The Directors of Auto Trader are responsible for:

designing, operating and maintaining internal controls relevant to the preparation and presentation of the Selected Information that is free from material misstatement, whether due to fraud or error;

selecting and/or developing objective Reporting Criteria;

measuring and reporting the Selected Information in accordance with the Reporting Criteria; and

the contents and statements contained within the Report and the Reporting Criteria.

Our responsibilities

Our responsibility is to plan and perform our work to obtain limited assurance about whether the Selected Information has been properly prepared, in all material respects, in accordance with the Reporting Criteria and to report to Auto Trader in the form of an independent limited assurance conclusion based on the work performed and the evidence obtained.

Assurance standards applied

We conducted our work in accordance with International Standard on Assurance Engagements (UK) 3000 Assurance Engagements other than Audits or Reviews of Historical Financial Information ("ISAE (UK) 3000") issued by the Financial Reporting Council. That standard requires that we obtain sufficient, appropriate evidence on which to base our conclusion.

Independence, professional standards and quality control

We comply with the Institute of Chartered Accountants in England and Wales ("ICAEW") Code of Ethics, which includes independence, and other requirements founded on fundamental principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour, that are at least as demanding as the applicable provisions of the IESBA Code of Ethics. The firm applies International Standard on Quality Management 1 Quality Management for Firms that Perform Audits or Reviews of Financial Statements, or Other Assurance or Related Services Engagements which requires the firm to design, implement and operate a system of quality management including policies or procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

Summary of work performed

A limited assurance engagement involves planning and performing procedures to obtain sufficient appropriate evidence to obtain a meaningful level of assurance over the Selected Information as a basis for our limited assurance conclusion. Planning the engagement involves assessing whether the Reporting Criteria are suitable for the purposes of our limited assurance engagement. The procedures selected depend on our judgement, on our understanding of the Selected Information and other engagement circumstances, and our consideration of areas where material misstatements are likely to arise.

The procedures performed included:

conducting interviews with Auto Trader's management to obtain an understanding of the key processes, systems and controls in place over the preparation of the Selected Information;

Agreement of employee data used in the calculation of the Selected Information to Auto Trader's payroll and human resources records.

selected limited substantive testing, including agreeing a selection of the Selected Information to corresponding supporting information including payroll and human resources records and board minutes and organisational structures.

performing analytical procedures over the aggregated Selected Information, including a comparison to the prior period's amounts having due regard to changes in business volume and the business portfolio; and

reading the narrative within the Report with regard to the Reporting Criteria, and for consistency with our findings.

The work performed in a limited assurance engagement varies in nature and timing from, and is less in extent than for, a reasonable assurance engagement. Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the

assurance that would have been obtained had a reasonable assurance engagement been performed.

This report's intended use

Our report has been prepared for Auto Trader Group Plc solely in accordance with the terms of our engagement. We have consented to the publication of our report on the Auto Trader website for the purpose of Auto Trader showing that it has obtained an independent assurance report in connection with the Selected Information.

Our report was designed to meet the agreed requirements of Auto Trader Group Plc determined by Auto Trader's needs at the time. Our report should not therefore be regarded as suitable to be used or relied on by any party wishing to acquire rights against us other than Auto Trader for any purpose or in any context. Any party other than Auto Trader who obtains access to our report or a copy and chooses to rely on our report (or any part of it) will do so at its own risk. To the fullest extent permitted by law, KPMG LLP will accept no responsibility or liability in respect of our report to any other party.

Gunjan Narang

for and on behalf of KPMG LLP

Chartered Accountants

KPMG LLP

15 Canada Square

London

United Kingdom

30 May 2024

The maintenance and integrity of Auto Trader's website is the responsibility of the Directors of Auto Trader; the work carried out by us does not involve consideration of these matters and, accordingly, we accept no responsibility for any changes that may have occurred to the reported Selected Information, Reporting Criteria or Report presented on Auto Trader's website since the date of our report.

Appendix 1- Selected Information

Underlying selected information as at 31 March 2024

KPI	Assured Value as at 31 March 2024
Women as a % of total staff	44%
Women as a % of leadership	42%
Ethnically diverse representation as a % of	17%
total staff
Ethnically diverse representation as a % of	6%
leadership