TONY GEORGE GROUP BUSINESS DEVELOPMENT & HR DIRECTOR

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Neal Horton
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4 TONY GEORGE GROUP BUSINESS DEVELOPMENT & HR DIRECTOR Multi industry experience: FMCG, Retail, Chemicals & Telecoms Member of the Group Executive Committee since 2007

5 Inchcape as strategic partner to the world s leading car brands MANUFACTURER DISTRIBUTOR VEHICLES & PARTS RETAILER VEHICLES, F&I,* PARTS & SERVICE INCHCAPE CUSTOMER Inchcape owns the value chain ex manufacturing as a Distributor Inchcape creates and manages the network of retail sites (Dealers) Selective capital allocation: Inchcape typically runs 10-20% of the network Inchcape appoints 3rd party dealers (B2B sales of New Vehicles & Parts) to complete the network * F&I: Finance & Insurance

6 Pro forma Distribution Country Head office Inchcape owned sites (x4) Dealer sites (x25)

Europe North Asia South Asia Australasia EM 17 23 9 45 53 182 - - 101 49 199 23 9 146 102 VIR

7 Light asset intensity - Inchcape s Distribution Footprint Distribution and Vertically Integrated Retail (VIR) markets Inchcape owned and operated sites* 3 rd party dealers* Total Europe North Asia South Asia Australasia EM VIR in city state markets where a small footprint covers the territory Support As at Dec 2013

8 Years Long standing relationships Inchcape length of brand relationships Subaru BMW VW Mercedes JLR Toyota Inchcape delivers on market share and customer service excellence Established relationships with brand partners across multiple continents

9 Strategic role of 3rd Party Dealers Our route to market where we are appointed as Distributor Highly efficient route to market / capital light Appointing dealer network to leverage local retail expertise from partners / dealers Managing, motivating and incentivising dealer network

10 Developing and managing the right dealer network Location (zone the country) Investment Standards in Facilities, Operations, Management, IT People Training Quality Control

11 Growing our Distribution presence New Distribution and VIR contracts Q Q Q Q Q Q Q Q Bulgaria Bulgaria Romania Romania Albania Albania Macedonia Macedonia Toyota Lexus Toyota Lexus Toyota Lexus Toyota Lexus Q Q Q Q Q Q Q Q Latvia Latvia Lithuania Lithuania Lithuania Chile Hong Kong Hong Kong BMW Ford Mitsubishi Hyundai Ford Rolls Royce Land Rover Ford Inchcape is well positioned for attractive consolidation opportunities in the fragmented global automotive market

12 Strategic priorities for expanding our distribution footprint Premium / Luxury Brand APAC / EM Aspirational and growing middle class Strict discipline on fulfilling hurdle requirements: Post tax IRR >15% for an APAC / EM transaction Regional and Group expertise to complete due diligence

15 ARIS ARAVANIS MD GREECE & BALKANS Joined the Group in 1991 Multi industry finance experience

Distribution / VIR is a highly efficient route to market Area Dealers Outlets Athens 9 12 Salonica 1 2 Rest Mainland 18 22 Islands 7 8

16 Distribution / VIR is a highly efficient route to market Area Dealers Outlets Athens 9 12 Salonica 1 2 Rest Mainland Islands 7 8 Total Owned (30% vehicle share) Athens: 2 Toyota 3S outlets, 1 Lexus showroom Salonica: 2 Toyota 3S outlets Authorized Repairers: 38

Strategic direction: Fewer, Bigger, Better In the past decade, Toyota Hellas Dealers have remained strong and established an undisputed leading position in the Greek Market Fewer

17 Strategic direction: Fewer, Bigger, Better In the past decade, Toyota Hellas Dealers have remained strong and established an undisputed leading position in the Greek Market Fewer and Stronger Dealers: from 77 in 2000 to 35 in Consistent high scores in all Dealer Relationship Surveys (DRS) conducted by Toyota Europe

18 Renewing the Network in Greece New installations (60%) and extensive renovation (40%) of older facilities Total investment of 100m Excellent visibility, accessibility and competition density

19 The evolution of sales for the Network 32,042 Sales per Dealer 31, Vs ,141 Sales per Dealer +125% Dealer Sales Sales per Dealer Rightsizing of network led to a sustainable sales volume per Dealer

Managing the downturn in Greece Early detection of the Greek

and actions aiming to: Fortify Dealers against new

further the quality of services offered to customer Strong

20 Managing the downturn in Greece Early detection of the Greek market s sharp declining trend led to a series of measures and actions aiming to: Fortify Dealers against new conditions, Improve their competitiveness and elevate further the quality of services offered to customer Strong Financial status Lean and Agile organisational structure Operational Excellence

vehicle insurance income Focus on more profitable models and increase consumption in Aftersales Lean and Agile

21 Strong control of the financials Strong Financial status Liquidity support Enhanced credit control Rigorous financial monitoring: Yearly Budget and Business Plan per Dealer Expanded revenue opportunities: Significant vehicle insurance income Focus on more profitable models and increase consumption in Aftersales Lean and Agile organisational structure Reduction of secondary outlets Headcount rightsizing Business roles enrichment - Multitasking

22 Maintaining operational excellence Operational Excellence Unwavering focus on front-line effectiveness: Enhanced role of Field Force Sales Managers Continuous support & guidance to network sales force Advanced Training Introduction of Inchcape Advantage +, in order to enhance retail processes and intensify field force support Benchmarking through KPIs Customer Satisfaction Survey in both Sales and After Sales

23 Dealer performance vs. competition The Toyota Hellas Dealer Network demonstrated excellent resilience during the period of crisis Defaults remained remarkably low despite the fact that in the sector 39% of outlets have shut-down and employment decreased by 53%

24 Stronger network stronger share in Greece Toyota Hellas alongside our strong dealer network has managed to increase market share during the downturn ( ) 35,000 30,000 25,000 20,000 15,000 10,000 28, % 11.3% 19, % 7, % 11.5% 11.0% 10.5% 10.0% 9.5% 5, % Ready to seize the recovery in the market Annual Average Volume Market Share 8.5%

25 Greek automotive market recovery since H The Greek Economy is stabilising and is ready to grow 2014 onwards Q1 2014: Greek car market is up 19% YoY Car Market Evolution E

26 Ageing of the Car Parc to fuel the replacement cycle Average age: 10yrs Average age: 13 yrs Size of Car Parc 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 4.9m units 5.4m units 33.4% 28.6% 30.9% 32.8% 14.6% 19.8% 22.0% 23.5% 28.1% 28.6% 27.4% 27.6% 23.8% 23.0% 19.6% 16.0% > 15 years years 5-10 years < 5 years

27 Inchcape in pole position in Greece Customer 1st Strategy Toyota & Lexus: Strong Brands and models Well organised and highly professional network Efficient and highly competitive processes Improved competitive position

Peter Johnson. Group Chief Executive

Peter Johnson. Group Chief Executive Peter Johnson Group Chief Executive Australia Operating profit * 16.1m; up 13.4% Market up by 5.4% on last year s record Subaru outperformed the market Achieved highest ever market share of 3.8% Strong