BERTRAND MALLET CEO BELGIUM & LUXEMBOURG

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4 BERTRAND MALLET CEO BELGIUM & LUXEMBOURG Previously the Group MD for EM and Group Strategy Director Senior Bain Consultant: Retail and Distribution focus

5 Inchcape Performance Management cycle Rigorous performance management ingrained in Inchcape s culture through timely implementation of key processes - centrally, locally and at every level of the organisation Leading indicators are monitored on a daily basis throughout the Group

6 Daily Customer Metrics At a Daily level, the key areas of focus are leading indicators: Showroom & Web Traffic, Test Drives Conversion (Sales) Enquiries and Bookings (Aftersales)

7 Daily Customer Metrics This Dynamic information gives us clear and early insights, thanks to the depth and breadth of the data: Global / regional / local focus enables us to differentiate - national, regional or local trends Traffic / leads / test drives / offers - identify and differentiate opportunities: Traffic building actions Dealer focus Attractiveness of commercial conditions

8 Weekly P&L / Cash On a weekly basis our scorecards provide detailed P&L and Cash Flow forecasts for all entities, with a specific focus on leading indicators such as Ordertake Delivery Momentum Working Capital Level Versus monthly Rolling Forecasts Corrective actions vs. deviations can be implemented immediately (e.g. ordertake momentum, stock management, etc ) Belgium and Luxembourg MONTH Prior Week Week 9 Budget Var Budget Prior Year Var PY CURRENT MONTH FORECAST Units Orderbank end of month # units 5,580 5,362 5,567 (3.7)% 5, % No ageing analysis # units Orderbank month +1 # units 1,876 2,419 2, % 2, % Orderbank month +2 # units 1,921 1,224 1,381 (11.4)% 1,668 (26.6)% Orderbank month +3 # units 1,184 1,111 1,813 (38.7)% 1,421 (21.8)% Orderbank month +4 # units % % Orderbank month +5 # units % % NEW Ordertake full month - External # units 2,400 2,409 2, % 2, % Ordertake full month - Total # units 2,994 3,031 2, % 2, % Volumes # units 3,036 2,831 3,035 (6.7)% 2, % Revenue k 50,861 47,099 50,982 (7.6)% 35, % ASP /unit 16,753 16,637 16,798 (1.0)% 16, % Gross profit k 2,181 2,126 2,197 (3.2)% 1, % GPU /unit % 753 (0.3)% GM% % 4.3% 4.5% 4.3% 0.2ppt 4.6% (0.1)ppt USED Ordertake full month - External # units % % Ordertake full month - Total # units % % Volumes # units % 180 (2.8)% Revenue k 1,695 1,598 1, % 1,761 (9.2)% ASP /unit 10,148 9,131 9, % 9,781 (6.6)% Gross profit k % 161 (28.0)% GPU /unit % 896 (25.9)% GM% % 6.8% 7.3% 7.2% 0.0ppt 9.2% (1.9)ppt SERVICE Hours # hours 7,785 7,903 8,005 (1.3)% 7, % Revenue k (5.2)% % Recovery Rate /hour (3.8)% % Gross Profit k (6.1)% % GM % % 54.1% 54.2% 54.7% (0.6)ppt 50.3% 3.9ppt BODYSHOP Hours # hours 1,213 1,220 1,380 (11.6)% 1,324 (7.9)% Revenue k (4.5)% % Recovery Rate /hour % % Gross Profit k (7.6)% % GM % % 29.6% 29.8% 30.8% (1.0)ppt 32.2% (2.4)ppt PARTS Revenue k 6,062 5,585 6,276 (11.0)% 5,664 (1.4)% Gross Profit k 1,908 1,793 1,913 (6.3)% 1, % GM % % 31.5% 32.1% 30.5% 1.6ppt 31.4% 0.7ppt AFTERSALES Total Revenue k 6,772 6,288 7,015 (10.4)% 6, % Total Gross Profit k 2,240 2,122 2,264 (6.3)% 2, % GM % % 33.1% 33.7% 32.3% 1.5ppt 0 1.0ppt OTHER Revenue k % % Gross Profit k % % GM % % 37.6% 37.6% 37.6% 0.0ppt 100.0% (62.4)ppt SUMMARY Total Revenue k 59,923 55,581 60,109 (7.5)% 44, % Revenue elim (-ve) k (9,746) (9,294) (9,013) 3.1% (6,699) 38.7% Revenue external k 50,178 46,286 51,097 (9.4)% 37, % Revenue L4L k 50,178 46,286 51,097 (9.4)% 37, % Gross profit k 4,760 4,588 4,794 (4.3)% 4, % % Margin (% Ext Rev) % 9.5% 9.9% 9.4% 0.5ppt 10.8% (0.9)ppt Expenses k (4,014) (3,959) (4,047) 2.2% (3,703) (6.9)% Operating profit k (15.9)% % ROS% (% Ext Rev) % 1.5% 1.4% 1.5% (0.1)ppt 0.9% 0.5ppt JV post acq P/L k (14) (100.0)% Finance Costs k (47) (47) (48) 2.2% (50) 7.1% PBT k (16.8)% %

9 Monthly Balance Scorecard On a monthly basis our balance scorecard monitors Customer Scores P&L Operational Effectiveness Capital Employed (including Stock) Cash Flow indicators Rolling Forecast All items are reviewed along 3 dimensions: Versus Targets Versus Last Year Versus Best In Class benchmark The 3-dimensional benchmarking helps to identify opportunities for growth, in particular with regards to Network League Table Management

10 Belgian Market Volumes Belgium has been a resilient automotive market 600, , , , , , , affected by the end of government incentives 250, , Fcst

11 Strong opportunity to grow share in core segments Constant stream of key new product launches in the next 3 years Hybrid as key competitive advantage in both private and fleet markets Improved value proposition at the heart of each segment Increased petrol demand across segments Improved diesel line-up thanks to partnership with BMW

12 Market Share PC Belgium The Share Growth Opportunity in Belgium Rigorous performance management of the network A constant focus on customer experience 4.5% 4.0% Growth of Toyota Market Share Successful marketing and sales efforts, - We have an opportunity to continue to grow Toyota and Lexus market shares in Belgium 3.5% 3.0% 2.5% 3.3% 3.6% 4.2% 2.0% Q1

13 Product range significantly extended H H H H H NG Yaris H NG Auris NG Auris H MC Verso ProAce Auris TS Auris TS H Verso 1,6d NG Aygo MC Yaris MC Yaris H Particular focus on new Hybrid models as well as a new diesel powertrain NG Rav4 NG Corolla IS 300h GS 300h MC CT200h NX 300h

14 % loyalty Excellent customer experience and loyalty in the Toyota network providing a strong platform for future growth #1 Hyundai Toyota Toyota #2 Toyota Hyundai Peugeot #3 Peugeot Peugeot Ford #4 Nissan Nissan Citroën Source: NCBS Survey Best in class retailer recommendation High aftersales loyalty Maintenance Quick fit Body repair Tyres

15 Our Hybrid strategy has been supported by strong and consistent communication Example of Brussels Motorshow 2014 Strategy: Hybrid= affordable with the Hybrid passport ( 3,000 or Peace of mind) 360 integrated mass communication during Brussels Motorshow Add Emotional element to communication in order to change the image of Hybrid driving ( Cool Driving)

16 This strategy has enabled our Hybrid share to increase significantly over the past 12 months % 80 Hybrid Share Evolution per Model Q Yaris Auris Auris TS Toyota PC

17 Profitable Revenue growth ahead in Toyota Belgium Strength of Toyota brand Strong market positioning Solid foundations of Toyota dealer network Differentiated customer experience in Sales & Aftersales Quality of product line up Market share growth in petrol, diesel and hybrid

18 GEORGE ASHFORD CEO AUSTRALASIA Previously the MD of European Retail and CEO of Toyota Belgium 10 years of experience at Yum Restaurants International

19 Inchcape performance management As a scale distribution and retail business performance management is focused on: Driving effective management of the brand Driving site by site performance across Third party dealer network AND Inchcape network Leveraging scale to drive cost efficiencies across the group

20 Brand performance metrics Brand performance metrics focus on: Long term health of the brand Effectiveness of each campaign Share performance Premiumisation

21 1. Long term health of the brand Key measurable Brand Drivers Benchmarked with competitive brands Q1 Q2 Q3 Q CONSIDERATION (12mma) LOYALTY (12mma) 6.5% 7.8% 8.2% 8.2% 45% 50% 55% 56% Brand Premium Desirability

22 2. Effectiveness of each campaign Campaign Marketing Effectiveness Aligned Go to market process Early bird reporting & ROI tracking

23 3. Share performance : VFACTS VEHICLE MARKET REVIEW - AUSTRALIA VFACTS SEGMENT MONTH % MONTH % MARKET % YTD % YTD % MARKET % Mar-14 Mar-14 GROWTH Mar-14 Mar-14 GROWTH MICRO 1, , , , , LIGHT 9, , , , , , SMALL 21, , , , , MEDIUM 6, , , , LARGE 4, , , , , UPPER LARGE PEOPLE MOVERS , , SPORTS 2, , , , TOTAL PASSENGER 47, , , , , , SUV 30, , , , , OTHER COMMERCIAL 19, , , , , TOTAL COMMERCIAL 50, , , , , , TOTAL MARKET 97, , , , , SUBARU PASSENGER , , , SUV 3, , , , TOTAL SUBARU 3, , , ,

24 4. Premiumisation Clear Model USP Strong and sustained Premium grade/suffix mix $40,000 $38,000 $36,000 $34,000 $32,000 $30,000 $28,000 $26,000 $24,000 $22,000 XV DUALIS ASX TIGUAN

25 Performance Management site by site applies same philosophy in third party and owned sites High Octane Performance Management Accelerate Best in class/ performance potential Reduce Span of Performance: - Daily traffic and conversion - Weekly profitability and stock control Grow Manage Middle Performance Low performance - Monthly benchmarking group wide, dealership level - Monthly Best Practice Sharing - Clear communication

26 Site by site performance metrics third party dealers Daily and weekly Traffic Leads Conversion Monthly Share Volume New cars Aftersales Customer People Profitability

27 Monthly Performance Measurement

28 Site by site performance metrics Inchcape sites Daily and weekly Traffic Leads Test drives Conversion Weekly Profitability Customer Stock Monthly OEM performance Sales funnel Customer People Stock Profitability

29 Performance Management sales funnel and customer IA Benchmarking based on daily, weekly and monthly metrics

30 Performance Management IA Benchmarking daily metrics Weekly balanced scorecard 3 dimensional approach: Performance vs target, past year and YTD Monthly balanced scorecard 3 dimensional approach: Performance vs target, past year and Best in Class

31 Performance Management - people Behavioural performance review and people planning FULL YEAR REVIEW Jan and Feb My Performance My Behaviour Leadership Skills Values My Grow with Inchcape Plan MID YEAR REVIEW - Jul and Aug My Performance My Behaviour Leadership Skills Values My Grow with Inchcape Plan FULL YEAR PLANNING - Jan and Feb My Performance My Behaviour Leadership Skills Values My Grow with Inchcape Plan MONTHLY REVIEW - - Sales (Sales Consultants) - Service (Service Advisors, Workshop Controllers

32 Performance Management leveraging scale Granular trend and benchmarking across Overheads Cost of sales Productivity Delivering scale advantage through Supplier consolidation/negotiation Consolidation of back office functions Process re-engineering

33 Scale advantages realized Supplier consolidation and negotiation Shipping F&I Back office consolidation Shared services Centralized PDI Process re-engineering Stock control

34 Performance Management ingrained in our culture Centricity of Performance Management across the Group and a relentless pursuit of high performance throughout Inchcape Delivering premium growth and premium returns

35 Australian market robust with shift to SUV and premium brands Total Market Sales SUV Growth vs PC Premium Share 1,136,227 1,112,032 1,035,574 1,012,164 1,008, ,328 % % %

36 Inchcape brand portfolio uniquely positioned to capitalise on SUV and premium growth DISTRIBUTION SUBARU: Dominance in SUV Premium sporty image in Passenger RETAIL Leading Premium Brands with great SUV pedigree Class leading aftersales facilities to exploit Car Parc growth SUV XV Passenger BRZ Forester WRX SUPER LUXURY DOMINANCE Outback Impreza