Key events in Automobile Distribution January 2007

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16 - Automobile Distribution Key events in Automobile Distribution January 2007 D Ieteren Auto participates in the Brussels Motor Show for Commercial and Leisure vehicles.

1 16 - Automobile Distribution Key events in Automobile Distribution January 2007 D Ieteren Auto participates in the Brussels Motor Show for Commercial and Leisure vehicles. The new Cross range of Volkswagen is a.o. presented. March 2007 Skoda Belgium receives the Importer of the year 2006 award from Skoda. Inauguration of the new facilities at D Ieteren Vilvoorde following transformations aimed at ensuring the separation of VW and Audi. September 2007 D Ieteren Sport becomes importer of Zodiac boats, thereby strengthening its Marine division. November 2007 Inauguration of the new facilities at Rue du Mail, also intended to separate the VW and Audi makes. December 2007 The D Ieteren Magazine, the oldest publication by D Ieteren, is discontinued and replaced by two magazines, Audi Magazine for Audi and Carma for Volkswagen, each conveying the values specific to each make. D Ieteren Sport wins the representation of the e-solex which it will start marketing in the Benelux in The model is presented at the Brussels' Car and Motorcycle Show. D Ieteren Auto closes the year on a record number of more than 120,000 new vehicles delivered, Volkswagen and Yamaha finish as N 1 of their respective market while the makes Audi, Skoda, Porsche and Bentley achieve records. January 2008 At the Brussels' Car and Motorcycle Show, D Ieteren Auto presents a.o., the new models Volkswagen Tiguan and Audi A4, as well as the BlueMotion range. As far as commercial vehicles are concerned, the Maxi Caddy is presented in worldwide premiere. The Metroproject Quattro, basis for the future Audi A1, which will be exclusively manufactured by Audi Brussels from 2010 onwards, is also revealed. Inauguration of the new facilities of D Ieteren Expo.

2 17 Record results! More than 120,000 new vehicles delivered in 2007 D Ieteren Auto Financial Report Belron s.a. Avis Europe plc D Ieteren Auto Corporate citizenship Corporate Governance The Group Message

3 18 - Automobile Distribution 5% 2% 2% 5% 4% 82% Sales breakdown by activity Financial key events 524,795 Belgian new car market of 524,795 registrations, almost equal (-0.26%) to the 2006 historical peak. 120,774 Record level of 120,774 deliveries of new vehicles % Market share up at 19.97% with Skoda, Seat and Audi registering significant share gains. +6.1% Sales up 6.1% as a result of new vehicle sales growth % Current operating result up 20.5% due to profitable sales growth % Current result before tax, group s share, up 25.5% to EUR 74.7 million. Total: EUR 2,642.4 million % CHANGE New vehicles +7.5% Used vehicles -2.1% Spare parts and accessories -1.0% D Ieteren Car Centers (after-sales) +4.1% D Ieteren Sport -5.2% D Ieteren Lease +8.3% D Ieteren Auto +6.1% Financial highlights (EUR million) Activities and results D Ieteren Auto has had an excellent year Sales grew by 6.1% to EUR 2,642.4 million, as a result of sales growth in new vehicles. Total new vehicles delivered by D Ieteren Auto achieved a record level of 120,774 units. New vehicles For the full year 2007, new car registrations in Belgium amounted to 524,795 units, almost equal (-0.26%) to the historical peak of 2006, thanks to a record second half of the year. % CHANGE New vehicles delivered (in units) 120, , % External sales 2, , % Current operating result % Current operating margin 3.7% 3.3% Current net finance costs % Current result before tax % Unusual items and re-measurements, before tax Current result before tax, group s share % The makes distributed by D Ieteren Auto achieved 19.97% market share, up from 19.43% for the full year 2006 due to Skoda, Seat and Audi market share gains. Despite a slight decline of its market share, Volkswagen remains n 1 on the Belgian market. Thanks to its new TT and A5 models, Audi registrations achieved a historical level, despite a supply shortage upon the introduction of the new A4. Skoda, Porsche and Bentley also achieved records. Seat market share increased due to the demand for the Altea XL launched in December The light commercial vehicles market was up 12.5% in 2007 at a record level of 66,081 new registrations. D Ieteren Auto achieved 8.93% market share (9.75% in 2006) due to a production shortage of the VW Crafter. Total new vehicles, including commercial vehicles, delivered by D Ieteren Auto in 2007 were up by 6.9% to 120,774 units. New vehicles sales, up 7.5%, amounted to EUR 2,135.8 million.

19 Other activities Used car sales amounted to EUR 115.7 million, down 2.1%. Sales of spare parts and accessories were almost stable at EUR 139.7 million. After-sales activities of D Ieteren Car Centers were up 4.

At 31 December 2007, its fleet amounted to more than 21,800 rented vehicles, up 16%. D Ieteren Sport sales, mainly Yamaha motorbikes, quads and scooters, were down 5.2% to EUR 56.

4 19 Other activities Used car sales amounted to EUR million, down 2.1%. Sales of spare parts and accessories were almost stable at EUR million. After-sales activities of D Ieteren Car Centers were up 4.1% to EUR 48.5 million. Sales of D Ieteren Lease, the long-term car rental arm of D Ieteren Auto, increased by 8.3% to EUR million. At 31 December 2007, its fleet amounted to more than 21,800 rented vehicles, up 16%. D Ieteren Sport sales, mainly Yamaha motorbikes, quads and scooters, were down 5.2% to EUR 56.2 million, due to a less favourable product mix. In a 10.5% growing record market, Yamaha s share amounted to 16.86% compared to 18.14% in Nevertheless the make took the first place on the Belgian market thanks to an active presence in all market segments as well as the decline of its main competitor. My Way Network, a network serving the dealers 72% of the time, the buyer of a new vehicle asks his dealer for a proposal to take over his used vehicle. Relying on this, D Ieteren Auto has equipped its network with tools in order to stimulate the sales of new vehicles by increasing the number of voluntary takeovers of used vehicles, and enhance used car buyers loyalty to the after-sales service network of each make. To meet these objectives, a support software for the expertise, evaluation and resale of vehicles considered for trade-in, has been made available to the entire network, notably through the access to the Business to Business resale channel. Moreover, the My Way label which is recognised for the resale of quality used vehicles has been granted to 62 dealers. By concurring with the label My Way Authorized Distributor, the dealer guarantees, in a space dedicated to used cars, the compliance of the sold vehicles to a strict set of technical and quality requirements. Ultimately, some 85 dealers will carry the label in Belgium. Authorized Distributor D Ieteren Auto Financial Report Belron s.a. Avis Europe plc D Ieteren Auto Corporate citizenship Corporate Governance The Group Message

5 20 - Automobile Distribution Results Benefiting from the profitable sales growth, the current operating result amounted to EUR 98.7 million, up 20.5%. Total net finance costs amounted to EUR 26.7 million (2006: EUR 25.3 million). Excluding re-measurements of financial instruments (mainly interest rate swaps) at fair value, current net finance costs amounted to EUR 23.7 million (2006: EUR 22.2 million), as a result of higher interest rates. Market share of the distributed makes (new car registrations - in %) Market of new cars and market share of D Ieteren Auto Market share Registrations 550, Market Volkswagen Audi Seat Skoda Bentley/Lamborghini Porsche D Ieteren Auto % Market share 20 The current result before tax, group s share, was up 25.5% to EUR 74.7 million (2006: EUR 59.5 million). Key developments In 2007, D Ieteren Auto almost finalised its separate distribution policy of the Volkswagen and Audi makes in the network. The Company thus meets the specific requirements of each make both in terms of brand image and customer reception. The independent network also pursues this objective aimed at satisfying specific customer and car manufacturer expectations. The Seat and Skoda networks have also been strengthened both quantitatively and qualitatively. The customer satisfaction of our D Ieteren Car Centers in the Brussels region has improved significantly. 450, , , ,000 50, Light commercial vehicle market and market share of D Ieteren Auto Market share Registrations 70,000 60, Market % Market share D Ieteren Auto undertook several actions to enhance customer loyalty, thereby stimulating new vehicle as well as after-sales activities. In 2007, these actions included mainly the implementation of new processes to improve voluntary used vehicle trade-in by dealers in order to stimulate the sales of new vehicles and enhance used car buyers loyalty to the after-sales service network of each make. 62 dealers of our makes, recognised for the resale of quality used vehicles, have been granted the My Way Authorized Distributor label. 50,000 40,000 30,000 20,000 10, ,606 57,496 60,616 58,730 66,

The year 2008 will benefit from the first deliveries of the new VW Tiguan and Audi A4, and from the introduction or renewal of the Volkswagen Passat Coupé Confort, Audi A3 cabrio, A4 Avant and Q5,

6 21 Outlook 2008 The Belgian car market is expected to decrease in 2008 by about 5% compared to 2007 to reach around 500,000 new car registrations. D Ieteren Auto keeps up its objective of a continuous market share improvement. The year 2008 will benefit from the first deliveries of the new VW Tiguan and Audi A4, and from the introduction or renewal of the Volkswagen Passat Coupé Confort, Audi A3 cabrio, A4 Avant and Q5, the New Skoda Fabia Combi and New Skoda Superb, the Seat Ibiza and the Porsche 911 GT2 and Cayenne GTS. A specialization by make The opening of the Audi Center Zaventem in 2003 was the first step of an investment plan aimed at modernising and specializing the distribution of Volkswagen and Audi in Brussels. Since then, D Ieteren Auto has pursued its programme for the complete separation of the show-rooms of the two makes and nearly finalised this in The Company thus meets the specific requirements of each make both in terms of brand image and customer reception. The independent network also pursues this objective aimed at satisfying specific customer and car manufacturer expectations. Today there are about 150 Volkswagen show-rooms and 80 Audi show-rooms, which previously combined both makes. The Seat and Skoda networks have also been strengthened both quantitatively and qualitatively. About 120 show-rooms exist today, equally distributed between both makes. D Ieteren Auto started the implementation of a separation programme of the makes for its after-sale service. This project should be finalised by D Ieteren Auto Belron s.a. Avis Europe plc D Ieteren Auto Corporate citizenship Corporate Governance The Group Message Financial Report

7 Volkswagen Tiguan

8 Audi A4

9 New Škoda Superb

10 SEAT Altea Freetrack

11 Bentley Continental GT Speed

12 Lamborghini Gallardo LP 560-4

13 Porsche 911 GT2

14 Yamaha XT660Z Tenere

AUTOMOBILE DISTRIBUTION

AUTOMOBILE DISTRIBUTION 18 D IETEREN - ANNUAL REPORT 2006 D IETEREN AUTO 9 WELL-KNOWN MAKES, 113,000 NEW VEHICLES DELIVERED, NEARLY 1,000,000 CUSTOMERS WHO WE ARE D Ieteren Auto distributes in Belgium