2016 FAST LUBE OPERATOR

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1 The National Oil & Lube News 2016 FAST LUBE OPERATOR SURVEY RESULTS GENERAL The Fast Lube Operator Survey is one of the most in-depth studies of the fast oil change industry available. Much-requested by both newcomers to the fast lube industry and seasoned operators who use it to evaluate the success of their own operations the survey contains current and historical data for almost every operational metric. Survey data was gathered from questionnaires, via phone interviews and mailed directly to operators. The responses for the 2016 Fast Lube Operator Survey account for 5,837 facilities and include fast lubes operating in all 50 states. OPERATIONS Independently owned facilities... 24%...30%...2 Franchised facilities %...74% Number of bays per facility Facilities that also have a carwash... n/a...62%...54% Cost of goods for standard, full-service LOF...$ $ $15.34 Average ticket total...$ $ $71.36 Average number of oil changes per day State inspections per day (by facilities that offer) Total number of cars serviced per day (including inspections, repair work, etc.) Break-even car count Average bay time minutes minutes minutes Days open per week Hours open per day... n/a Operators who own their building/land Operators who lease their building/land % Average length of ownership/operation... n/a years...13 years Building/land costs for most recent fast lube (if owned)...$1,107, $847, $749,697 Cost for leasing building/land (per month)...$4, $5, $4,604 Equipment costs for fast lube...$62, $81, $94,000 Facilities offering free Wi-Fi for customers... n/a...64% NOLN

2 DEMOGRAPHICS Miles customers drive between oil changes...4, , ,532 Portion of overall sales made up of fleet accounts Average number of vehicles per fleet Average age of vehicles serviced years years years Vehicles serviced that have less than 5,000 miles... 7%... Average number of miles on vehicles serviced...83, , ,112 Customers who drive domestic vehicles... 63%...57%...63% Customers who drive foreign vehicles... 37%...43%...37% Customers who drive luxury vehicles... 17% Customers who drive light trucks % Percentage of repeat customers... n/a % PRICES Price of oil change with 5 quarts of conventional oil...$ $ $41.18 Price charged for an additional quart of bulk conventional oil... n/a... $ $4.82 Price charged for an additional quart of bottled conventional oil... n/a... $ $5.02 Operators who offer semi-synthetic oil change... n/a Price, if offered, with 5 quarts of oil... n/a... $ $53.97 Price charged for an additional quart of bulk semi-synthetic oil... n/a... $ $5.73 Price charged for an additional quart of bottled semi-synthetic oil... n/a... $ $6.17 Operators who offer a full synthetic oil change %...100%...100% Price, if offered, with 5 quarts of oil...$ $ $75.45 Price charged for an additional quart of bulk full synthetic oil... n/a...n/a... $9.20 Price charged for an additional quart of bottled full synthetic oil... n/a...n/a... $8.91 Operators who offer a European full synthetic oil change... n/a...n/a...8 Price, if offered, with 5 quarts of oil... n/a...n/a... $ Price charged for an additional quart of bulk European full synthetic oil... n/a...n/a... $8.81 Price charged for an additional quart of bottled European full synthetic oil... n/a...n/a... $9.24 Operators who offer a premium, full synthetic oil change... n/a...n/a...42% Price, if offered, with 5 quarts of oil... n/a...n/a... $85.87 Price charged for an additional quart of bulk premium full synthetic oil... n/a...n/a... $8.59 Price charged for an additional quart of bottled premium full synthetic oil... n/a...n/a... $8.71 Operators who offer diesel oil change Price for a GM ( ) 6.6L engine... n/a... $ $96.26 Price for a Dodge ( ) 6.7L engine... n/a... $ $96.75 Price for a Ford 6.4L engine... n/a... $ $97.54 Price for a Ford 6.7L engine... n/a... $ $97.08 Price for a passenger car... n/a... $ $67.47 Operators increasing LOF price in the past 12 months % Amount of increase...$ $ $1.94 Operators discounting their own oil changes Amount of discount...$ $ $ NOLN

3 SALES Percentage of annual sales comprised solely of oil change services... n/a Yearly sales per store:...$683, $694, $646,330 Portion of gross sales used for: Payroll % % Lease/Mortgage % % COGS % % Net Profit % % Operations % % %...1.4%...5.0% 1 Includes all payroll (taxes included), salary of owner (if hands-on employee), unemployment taxes, Workers Compensation, health insurance, bonuses, etc. 2 Includes materials and supplies necessary to perform services. 3 Includes utilities, maintenance, company insurance, advertising, franchise fees, uniforms, freight, postage, administrative costs, office supplies, non-income taxes, training, company vehicle, etc. used to operate business on a day-to-day basis. 4 Dues, subscriptions, warranties, travel/entertainment, etc. OIL & EQUIPMENT Total sales represented by house motor oil brand... 90% % Operators being paid for their used oil If paid for used oil, amount receiving per gallon...$ $ $0.50 Amount charged per gallon for removal... n/a...n/a...$0.50 Per-gallon cost of highest volume bulk oil...$ $ $9.96 Overall breakdown of motor oil sales: Conventional... 47%...53%...42% Semi-synthetic Full synthetic High mileage %...n/a Diesel % <1%...2%...2% Overall breakdown of motor oil sales by weight/grade: 0W n/a...0%...0% 0W %...23% 5W %...32% 5W % 10W % 5W %... 15W % <1%...2%...2% : figure from small sampling September 2016 NOLN 17

4 Best Selling Motor Oil in Fast Lubes 2 20% 2 23% Private Label 7% Mobil 4% Service Pro 1 Private Label 1 7% Service Pro 14% Best Selling Synthetic Motor Oil in Fast Lubes % Mobil 7% Amsoil Private Label 21% 13% 21% 3%, Private Label 3%, Amsoil, Service Pro, Kendall Best Selling Oil Filter in Fast Lubes % Service Champ 24% 1 Mobil 13% 1 Purolator 1 33% 18 NOLN 1 Service Champ

5 14% Best Selling Air Filter in Fast Lubes 22% 1 Service Champ 2 17% Service Champ 17% Premium Guard 1 Promotive 14% 1 Best Selling Additive Brand in Fast Lubes 34% Lucas Oil 21% 52% Lucas Oil Gumout ITW Professional Automotive Products Soid Start/ True Brand ITW Professional Automotive Products Solid Start EMPLOYEES Length of employment for managers years years years Length of employment for technicians years years years Average number of employees per store Average annual salary paid to manager...$49, $37, $ Average annual salary paid to owner...$57, $67, $61,032 Average starting wage for lube techs...$ $ $9.28 Average hourly wage for lube techs...$ $ $10.62 Average number of hours per week a technician works... n/a...n/a...33 Companies that drug test employees % September 2016 NOLN 19

6 SERVICES % of respondents who offer: Additive sales %...$ %... n/a Air conditioner odor removal service %...$ % Air conditioner recharge $ % % Air filter replacement %...$ % % Brake pad replacement %...$ % % Brake fluid flush %...$ % Breather replacement %...$ % % Cabin air filter replacement %...$ % Check batteries n/a...n/a... n/a Diesel exhaust fluid service $ % % Differential service %...$ % % Fuel filter replacement %...$ % % Fuel injector cleaning (multi-part) $ % Headlight restoration $ % Lightbulb replacement %...$ % % Manual drain and refill of radiators $ % % Mechanical ATF exchange $ % % Mechanical engine flush/cleaning %...$ % % Mechanical full-block coolant flushes %...$ Minor mechanical repairs n/a % % Nitrogen-based tire inflation %... n/a...n/a... n/a Oil changes on Class 4 or larger commercial vehicles %...$ % % Oil changes on RVs $ % % PCV replacement $ % Power steering flushes %...$ % % Radiator, heater, A/C hose replacement $ % Rock chip windshield repair n/a...n/a... n/a Sell batteries %...$ % % Sell extended drain oil filters %...$ % % Serpentine belt replacement $ % % Shock replacement $ Smog checks/emissions testing %...$ % % Spark plug replacement %...$ % Strut replacement %...$ Tire rotation %...$ % % Tire sales %... n/a n/a Transmission service (drain/refill manually) $ % Water-repellent glass treatments %...$ % % Wheel alignment %...$ % % Wheel balancing %...$ % Wiper blades (beam) %...$ % Wiper blades (conventional) %...$ % Avg. Charge % of Customers Who Purchase Change from 2014/2015 in % of Customers Who Purchase 20 NOLN : figure from small sampling

7 4% Fuel Injection Cleaning Best Selling Add-on Services in Fast Lubes 30% Air Filter Replacement 1 30% Air Filter Replacement Differential Service Tire Rotation Transmission Service Additives 23% Wiper Blade Replacement Tire Rotation Transmission Service 14% Additives 22% Wiper Blade Replacement

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