Winning With Texas Hispanics: Your Sales Growth Opportunity. July 24, 2017

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1 Winning With Texas Hispanics: Your Sales Growth Opportunity July 24, 2017

2 58M 1 In 5 Americans Are Hispanic Hispanics in the U.S. in % of the total population Source: 2016 U.S. Census Population Projections Released in

3 Non-Hispanic White Population Declining % of Total U.S. Population Non-Hispanic White 64% 60% 55% 51% 47% 44% 182 Million Hispanic African American Asian Other 26% 29% 24% 22% 19% 16% 12% 13% 9% 5% 6% 3% Million Source: U.S. Census Bureau 2014 National Projections. *Other includes: AIAN, NHPI, Two or more races. 3

4 Births Drive Population Growth, Not Immigration % of Total U.S. Hispanic Population Growth Births 65% 67% 69% 70% 72% 74% Immigration 35% 33% 31% 30% 28% 26% Source: U.S. Census Bureau 2014 National Projections. *Other includes: AIAN, NHPI, Two or more races. Source: U.S. Census Race & Hispanic projections by age

5 Texas Has The 2 nd Largest Hispanic Population in The U.S. Hispanic % of Total Texas Population, CY Million Hispanics Represent 40% Hispanics of Texas Population Geoscape. American Marketscape Datastream 2016 Series. Produced by the Geoscape Intelligence System (GIS). The data herein contained will be used exclusively for advertising/media decisions related to Univision. Any other use must be explicitly licensed from Geoscape. Texas

Hispanics 18-49 Are A Significant Part of The

6 Hispanics Are A Significant Part of The Population In Texas Markets Hispanic % of Population Dallas-Ft. Worth 31% El Paso 79% Houston 40% Harlingen 92% Source: The Nielsen Company, 2017 TV Universe Estimates. A

7 More Value: Driven By Life Stages 3.8 people per Hispanic Household vs. 2.9 for Non-Hispanic More Likely to be Getting Married More Likely to Have Their 1 st Child More Likely to Buy 1 st Home 24% 26% 34% Source: Simmons NCS/NHCS Fall 2016 US A18+; Filter: Texas State. Life events expected to experience in next 12 months, index to total population, 7

8 Hispanic New Vehicles Purchases Have More Than Doubled 802K 2010 More than 2X 1.9M 2016 Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S. 8

9 Vehicles Purchased in 2016 In 2016, U.S. Hispanics purchased: 8.8 Million New and Used vehicles Representing 17% of total new & used sales Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases), CY16, U.S.; Polk Used Vehicle Registrations ( ), Enhanced Ethnic Data, CY16, U.S. 9

10 Hispanics are Split on Their Next Vehicle Purchase Next Vehicle Purchase: New or Used? New Used Hispanic 50% 50% Non-Hispanic 45% 55% Among Used Vehicle Intenders % who agree: A used car is just as good as a new car 50% Hispanic 61% Non-Hispanic Source: Simmons Adult Study 18+, Fall 2016 (10/25/15-11/29/16) 10

11 Texas New Vehicle Sales Overview

12 Hispanic % of Used Vehicle Sales, Largest Minority Group in Key Texas Markets Multi-Cultural % of Total Used Vehicle Sales, 1Q CY17 % of Total Used Vehicle Sales to: DMA Hispanic African American Asian Other Dallas-Ft. Worth 31% 16% 3% 50% El Paso 79% 1% 1% 19% Houston 91% 1% 0% 8% Harlingen 40% 16% 4% 40% Texas Total 42% 14% 3% 41% Source: IHS Automotive Driven by Polk, New Vehicle Personal Registrations (Sales & leases) Enhanced Ethnic Data, 1QCY17 vs. 1Q CY16; Dallas, El Paso, Harlingen, Houston; African American figures based on Polk s Inferred African American Data. 12

13 Leading Brands In Texas Total Vs. Hispanics Brand Total SOM 1Q CY17 Share of Market (SOM) 1Q CY17 HP Rank Hispanic SOM 1Q CY17 Difference +/- % of Brand Sales to Hispanics 12.3% #1 14.3% % 14.7% 13.0% 8.9% 7.9% 4.3% 4.0% 2.7% 3.7% 3.1% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, 1Q CY17 vs. 1Q CY16, Texas State; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) #2 #3 #4 #5 #6 #7 #8 #9 # % % 13.7% % 12.2% % 7.2% % 4.5% % 4.3% % 3.9% % 3.5% % 2.9% % % of Industry Sales to Hispanics 27.5% 13

14 Hispanic Share of New Vehicle Market in Texas DMAs Hispanic Share of Market, 1Q CY17 Hisp Rank Dallas #1 Toyota 16.1% #2 Chevrolet 14.9% #3 Nissan 13.1% #4 Ford 12.0% #5 Honda 9.1% #6 GMC 4.1% #7 Jeep 3.9% #8 Kia 3.2% #9 RAM 2.9% #10 Dodge 2.6% El Paso Harlingen Houston Nissan 14.2% Ford 18.5% Toyota 15.4% Chevrolet 13.2% Nissan 17.7% Chevrolet 13.6% Ford 12.6% Chevrolet 14.8% Ford 12.7% Toyota 10.3% Toyota 9.5% Nissan 11.1% Honda 8.3% GMC 6.6% Honda 8.3% Hyundai 6.6% Honda 5.0% Jeep 4.8% Jeep 5.4% Jeep 3.2% GMC 4.5% Kia 3.9% Hyundai 3.1% Dodge 3.5% Dodge 3.9% Dodge 2.5% RAM 3.2% RAM 3.4% RAM 2.1% Hyundai 2.8% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, 1Q CY17 vs. 1Q CY16, Dallas, El Paso, Harlingen and Houston; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) 14

15 Hispanic Total Texas: New Trucks Dominate in Both Total and Hispanic Industry New Car/Truck Sales Ratio, Texas State Cars 63% 65% 57% 60% 58% 55% 56% 56% 30 Points 42% 45% 43% 44% 44% 40% 37% 35% Jan-Apr 2017 Trucks 54% 46% 54% 46% 56% 59% 51% 52% 52% 62% 24 Points 48% 48% 49% 44% 41% 38% Jan-Apr 2017 Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, , Jan-April 2017, Texas State *Note: Trucks include (CUVs, Pickup Trucks, SUVs, and Vans) 15

16 49% of Hispanic New Vehicle Sales are In Top 3 Segments Segment Share of New Vehicle Sales, TX 1Q CY17 16% 17% 17% 15% 15% Total Hispanic 11% 10% 10% 7% 7% 6% 6% 4% 4% 4% 3% 3% 3% 3% 3% COMPACT CUV FULL SIZE HALF TON PICKUP COMPACT MID SIZE MID SIZE SUV MID SIZE CUV SUB COMPACT MID SIZE PICKUP FULL SIZE 3 FULL SIZE SUV QTR TO 1 TON PICKUP Source: IHS Automotive Driven by Polk, New Vehicle Personal Registrations (Sales & leases) Enhanced Ethnic Data, 1QCY17 vs. 1Q CY16; Texas State 16

17 Top Three New Vehicle Models Sold in Texas are FSPU Trucks Model Sales Breakdown, TX 1Q CY17 Hisp Model Share of New Vehicle Sales Rank Model Total Hispanic % Sales to Hispanics 1 F Series 7% 6% 24% 16% 15% 2 Silverado 5% 5% 32% 3 Ram 4% 4% 27% 4 Rogue 2% 3% 37% 5 Sentra 1% 3% 51% 6 Corolla 2% 3% 38% 7 Sierra 2% 2% 34% 8 Civic 2% 2% 31% 9 Altima 2% 2% 36% 10 Rav4 2% 2% 27% Total Texas 100% 100% 28% Source: IHS Automotive Driven by Polk, New Vehicle Personal Registrations (Sales & leases) Enhanced Ethnic Data, 1Q CY17 vs. 1Q CY16; Texas State 17

18 Used Car Sales Overview

19 TX Hispanics More Likely Than Non-Hispanics to Purchase a Used Vehicle in Next 90 Days How likely are you to buy or lease a used car in the next 90 days? Jan June CY17 14% 40% More Likely 5% Very Likely 10% 9% Somewhat Likely 4% 6% Very likely Somewhat Likely Hispanic Non-Hispanic Source: CivicScience. Jan June CY17. Texas 19

20 Hispanic Used Vehicle Intender Purchase Horizon at Near Parity With Non-Hispanics When will be your next vehicle purchase? % Among Texas Used Vehicle Intenders 27% 31% 29% 25% 24% 28% 14% Non-Hispanic Hispanic 8% 3% 5% Within 1 year About 2 years About 3 years About 4 years 4+ years Simmons Adult Study 18+, Fall 2016 (10/25/15-11/29/16); Base: Next Vehicle Purchase: New or Used; Texas 20

21 Texas Hispanic Used Vehicle Owners Are Younger Used Vehicle Registrations, 1Q CY17 A18-34 A35-54 A55+ Total Hispanic Total Hispanic Total Hispanic Dallas 16% 19% 54% 59% 30% 22% El Paso 16% 16% 51% 53% 33% 31% Harlingen 17% 17% 54% 55% 29% 28% Houston 16% 19% 53% 57% 31% 24% Texas 16% 18% 53% 56% 31% 26% Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Dallas, El Paso, Harlingen, Houston; 21

22 On the Road 6.9Million Hispanic Vehicles in Operation (VIO) in Texas 35.1% of Total Market VIO Source: IHS Automotive Driven by Polk, Vehicles In Operation (VIO), Personal Registrations, Enhanced Ethnic Data, VIN Year: ; As of April 2017, Texas State. 22

23 Hispanics Represent a Significant % of Vehicles in Operation Hispanic Vehicles in Operation (VIO), as of April 2017 Key Texas DMAs DMA Hispanic VIO Hispanic % of Total VIO Dallas 1,413,485 25% El Paso 573,989 76% Harlingen 774,616 91% Houston 1,638,159 33% Source: IHS Automotive Driven by Polk, Vehicles In Operation (VIO), Personal Registrations, Enhanced Ethnic Data, VIN Year: ; As of April 2017, Dallas Ft. Worth, El Paso, Harlingen, and Houston DMAs. 23

24 Over Half of Texas Hispanic Owned Vehicles are Model Years % 12% Total 46% 40% 81-'90 91-'00 01-'10 11-'18 15% 1% 32% Hispanic 51% Source: IHS Automotive Driven by Polk, Vehicles In Operation (VIO), Personal Registrations, Enhanced Ethnic Data, VIN Year: ; As of January 2017, US. 24

Hispanics are a Significant Part of TX Used Vehicle Sales Hispanic % of Used Vehicle Sales, Last 24 Months DMA % Used Vehicle Sales to Hispanic Dallas 31% El Paso 79% Houston 40% Harlingen 91% Texas

25 Hispanics are a Significant Part of TX Used Vehicle Sales Hispanic % of Used Vehicle Sales, Last 24 Months DMA % Used Vehicle Sales to Hispanic Dallas 31% El Paso 79% Houston 40% Harlingen 91% Texas State 40% Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Dallas, El Paso, Harlingen, Houston; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) 25

26 Chevy and Ford Are Leading Used Vehicle Brands in TX Total vs. Hispanic Brand Total SOM Last 24 Months Share of Market (SOM) Last 24 Months HP Rank Hispanic SOM Last 24 Months Difference +/- % of Used Vehicle Brand Sales to Hispanics Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Texas State; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) 17.0% #1 19.5% % 16.7% 7.6% 9.1% 6.8% 6.0% 3.8% 3.3% 2.4% 2.6% #2 #3 #4 #5 #6 #7 #8 #9 # % % 8.7% % 8.3% % 7.4% % 6.2% % 4.4% % 3.0% % 2.6% % 2.1% % % of Industry Sales to Hispanics 40.9% 26

27 Chevy #1 Used Vehicle Brand in DMAs Hispanic Used Vehicle Share of Market, Last 24 Months Hisp Rank Dallas #1 Chevrolet 19% #2 Ford 17% #3 Nissan 10% #4 Toyota 8% #5 Honda 8% #6 Dodge 7% #7 GMC 4% #8 Chrysler 2% #9 Jeep 2% #10 Volkswagen 2% El Paso Harlingen Houston Ford 17% Chevrolet 23% Chevrolet 19% Chevrolet 16% Ford 22% Ford 16% Nissan 9% Dodge 8% Toyota 11% Dodge 8% Nissan 7% Nissan 10% Toyota 7% GMC 5% Honda 8% Honda 6% Jeep 4% Dodge 6% Jeep 4% Toyota 4% GMC 4% Hyundai 4% Chrysler 4% Jeep 2% GMC 4% Honda 3% Chrysler 2% Chrysler 3% Volkswagen 2% Hyundai 2% Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Dallas, El Paso, Harlingen, Houston; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) 27

28 Hispanic Total Texas Used Trucks Dominate in Both Total and Hispanic Industry Used Car/Truck Sales Ratio, Texas State Cars Trucks 52% 48% 52% 52% 53% 53% 48% 48% 47% 47% 53% 6 Points 47% Jan-Apr % 53% 54% 55% 55% 55% 46% 47% 46% 45% 45% 45% 10 Points Jan-Apr 2017 Source: Used Vehicle Registrations (Personal Includes Leases) ( ); Enhanced Ethnic Data; Texas State, , Jan-April 2017 *Note: Trucks include (CUVs, Pickup Trucks, SUVs, and Vans) 28

43% of Hispanic Used Vehicle Sales are In Top 3 Segments Segment Share of Used Vehicle Sales, TX Last 24 Months 15% 17% 14% 13% 13% 12% Total Hispanic 7% 6% 6% 6% 6% 6% 6% 5% 4% 3% 4% 4% 3% 3% FULL

29 43% of Hispanic Used Vehicle Sales are In Top 3 Segments Segment Share of Used Vehicle Sales, TX Last 24 Months 15% 17% 14% 13% 13% 12% Total Hispanic 7% 6% 6% 6% 6% 6% 6% 5% 4% 3% 4% 4% 3% 3% FULL SIZE HALF TON PICKUP MID SIZE COMPACT COMPACT CUV FULL SIZE SUV MID SIZE SUV FULL SIZE MID SIZE PICKUP MID SIZE CUV MID SIZE VAN Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Texas State 29

30 Top Three Used Vehicle Models Sold in Texas are FSPU Trucks Used Vehicle Sales Breakdown, TX May Last 24 Months Hisp Model Share of Used Vehicle Sales Rank Model Total Hispanic % Sales to Hispanics 1 F-Series 6% 7% 43% 13% 15% 2 Silverado 4% 5% 48% 3 RAM 3% 3% 38% 4 Altima 2% 2% 44% 5 Civic 2% 2% 49% 6 Accord 2% 2% 40% 7 Tahoe 2% 2% 51% 8 Sierra 2% 2% 48% 9 Camry 2% 2% 32% 10 Corolla 2% 2% 43% Total Texas 100% 100% 40% Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17; Enhanced Ethnic Data; Texas State; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram) 30

31 In 2017, TX Hispanics Will Purchase an Estimated 1.7 Million New and Used vehicles Representing 38% of total new & used sales Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases), Jan-Apr CY17, Texas State; Polk Used Vehicle Registrations ( ), Enhanced Ethnic Data, Jan Apr CY17, Texas State. Projection based on Jan-Apr CY17 data 31

Hispanics Driving Sales Among Top Used Dealers in Dallas Dealers % of Used Vehicle Sales to Hispanics Elkins Auto Sales 92% Trophy Nissan 35% Tricolor Auto 87% OMG Auto Sales 94% Blue Star Auto Sales

32 Hispanics Driving Sales Among Top Used Dealers in Dallas Dealers % of Used Vehicle Sales to Hispanics Elkins Auto Sales 92% Trophy Nissan 35% Tricolor Auto 87% OMG Auto Sales 94% Blue Star Auto Sales 94% Driversselect 15% Sewell Lexus 16% Hispanic Population 2016 Estimates by Zip Code % of Total Population Morenos Auto Sales 86% Everlast Auto 75% MAC Churchill Acura 26% 0%-20% 20%-30% 30%-40% 40%-55% 55%-100% Geoscape. American Marketscape Datastream 2016 Series. Produced by the Geoscape Intelligence System (GIS). The data herein contained will be used exclusively for advertising/media decisions related to Univision. Any other use must be explicitly licensed from Geoscape. Dallas DMA 32

33 Hispanics Driving Sales Among Top Used Dealers in El Paso Dealers % of Used Vehicle Sales to Hispanics Casa Nissan Inc. 86% Casa Ford Lincoln 74% Best Way Autos 81% Dick Poe Toyota 70% Mission Chevrolet Ltd. 85% Shamaley Ford 81% Bravo Cadillac 74% Hispanic Population 2016 Estimates by Zip Code % of Total Population Fox Toyota of El Paso 80% Viva Nissan 86% Dick Poe Dodge 68% 0%-60% 60%-70% 70%-75% 75%-90% 90%-100% Geoscape. American Marketscape Datastream 2016 Series. Produced by the Geoscape Intelligence System (GIS). The data herein contained will be used exclusively for advertising/media decisions related to Univision. Any other use must be explicitly licensed from Geoscape. El Paso DMA 33

Hispanics Driving Sales Among Top Used Dealers in Harlingen Dealers % of Used Vehicle Sales to Hispanics Weslaco Motors LP 92% Boggus Motor Sales II LLC 89% Bert Ogden BMW 90% Tipton Motors Inc.

34 Hispanics Driving Sales Among Top Used Dealers in Harlingen Dealers % of Used Vehicle Sales to Hispanics Weslaco Motors LP 92% Boggus Motor Sales II LLC 89% Bert Ogden BMW 90% Tipton Motors Inc. 88% Gillman Chevrolet Buick GMC 87% Charlie Clark Nissan BRWN 94% Burns Motors Ltd. 85% Hispanic Population 2016 Estimates by Zip Code % of Total Population 0%-50% 50%-75% 75%-80% 80%-90% 90%-100% Boggus Motor Company II LLC 84% Weslaco Ford Mercury LLP 89% Spikes Motor Co Inc. 91% Geoscape. American Marketscape Datastream 2016 Series. Produced by the Geoscape Intelligence System (GIS). The data herein contained will be used exclusively for advertising/media decisions related to Univision. Any other use must be explicitly licensed from Geoscape. Harlingen DMA 34

Hispanics Driving Sales Among Top Used Dealers in Houston Dealers % of Used Vehicle Sales to Hispanics Houston Peterbilt 91% Munday Chevrolet 47% Nexcar 91% La Familia Autos 85% Lone Star Chevrolet

35 Hispanics Driving Sales Among Top Used Dealers in Houston Dealers % of Used Vehicle Sales to Hispanics Houston Peterbilt 91% Munday Chevrolet 47% Nexcar 91% La Familia Autos 85% Lone Star Chevrolet 43% DriveTime 17% Don McGill Toyota 35% Hispanic Population 2016 Estimates by Zip Code % of Total Population 0%-15% 15%-25% 25%-40% 40%-55% 55%-100% Drive Away Autos LLC 93% Hertz Car Sales 27% Auto Depots 77% Geoscape. American Marketscape Datastream 2016 Series. Produced by the Geoscape Intelligence System (GIS). The data herein contained will be used exclusively for advertising/media decisions related to Univision. Any other use must be explicitly licensed from Geoscape. Houston DMA 35

36 Texas Tier 3 Dealers Invest in Spanish-Language TV $24 Million Source: Kantar Stradegy Analysis, Spending for Tier 3 in TX DMAs. Total investment includes Used Car Dealerships. CY16; Note: Only includes Spanish-Language investment over $1K 36

ROI: Dealers in 4 Texas DMAs Invest Over $18 Million in Spanish-Language TV Number of

(SLTV Investment: $6.8M) 4 3 6 6 8 El Paso (SLTV Investment: $1.

1M) 5 2 5 6 5 Houston (SLTV Investment: $5.

37 ROI: Dealers in 4 Texas DMAs Invest Over $18 Million in Spanish-Language TV Number of Dealerships Investing in SLTV, CY16 Market Toyota Honda Nissan Chevrolet Ford Dallas (SLTV Investment: $6.8M) El Paso (SLTV Investment: $1.9M) Harlingen (SLTV Investment: $4.1M) Houston (SLTV Investment: $5.2M) Source: Kantar StradegyAnalysis, Spending for Tier 3 in TX DMAs. Total investment includes Used Car Dealerships. CY16 Note: Only includes Spanish-Language investment over $1K 37

38 Importance of Spanish-Language

I Speak EnglishY Español I can understand English, I can speak English, I can write it and read

40 In TX, Spanish Is A Choice Not A Necessity 15.1% Only Spanish 12.2% Only English 20.3% Mostly Spanish 27.7% Mostly English 24.7% S/E Equally 15% Only Spanish 88% speak Spanish 73% are Bilingual Source: Simmons NCS/NHCS Fall 2016 US A18+; Filter: Texas State. Based on language spoken in the home. 40

41 In TX, Spanish Is A Choice Not A Necessity Key Texas DMAs: DMAs Only English Bilingual Only Spanish Speak Spanish Dallas 15% 72% 12% El Paso 10% 73% 16% Harlingen 3% 80% 16% Houston 10% 79% 11% 84% 89% 96% 90% Source: 2017 Nielsen Universe Estimates, Hispanic TV HHs by Language Strata (Language spoken by person), Strata Defined in terms of Persons A2+, Dallas, El Paso, Harlingen and Houston 1.) Note: Spanish Language Choice only asked among Hispanic participants, Question is not asked among Total Population; %s may be under-reported 41

Hispanics Choose Spanish at Home Of Texas Hispanics who

. Source: Simmons NCS/NHCS Fall 2016 US A18+; Filter:

42 Hispanics Choose Spanish at Home Of Texas Hispanics who are vehicle owners, watching SLTV. 98% Speak Spanish inside the home.. 82% Speak English outside the home.. Source: Simmons NCS/NHCS Fall 2016 US A18+; Filter: Texas State. A18+ Hispanic vehicle owners/lessees watching SLTV; SLTV includes any SL network daypart viewer (M-F 6A-2A/S-S 7A-1A) 42

43 Connecting with Online Hispanic Auto Intenders

44 U.S. Hispanics: Muy Mobile/Social 90% Smartphone Penetration Among Hispanics (vs. 88% of Total) 92% of Hispanics are Social Media Users (vs. 90% of Non-Hispanic) Hispanic Consumers share content 5x more often than Non-Hispanics Content shared by Hispanics is 35% more likely to be clicked on by others Source: 1) Nielsen Total Audience Report, Q ) Source:1. Simmons NCS/NHCS Fall Month Survey, Population Adults 18+; Base: Online defined as visited website/search engine in past 30 days; Social Media User defined by Simmons as visited social media websites in past 30 days, visited online sharing sites, or engaged in online social media activities (i.e. blogging) in past 30 days. 3) Mindshare/Unilever study Online Sharing Behaviors of Hispanic Consumer 44

Non-Hispanic 81% 73% Source: Simmons NCS/NHCS Fall 2016 FY, US A18+;

45 Hispanics More Likely To Access Internet Via Mobile Devices Device Used to Access the Internet Among Those that Have used the Internet Hispanic Non-Hispanic 81% 73% Source: Simmons NCS/NHCS Fall 2016 FY, US A18+; Multiple responses are possible Base: Used the Internet Device Used at Home 45

69% Of Online Hispanics Use Facebook, Twitter or Instagram vs 68% of Non-Hispanics 70% Of Online Hispanic

46 Hispanics Engage With Social Media Among Online Hispanics A18+, U.S. 69% Of Online Hispanics Use Facebook, Twitter or Instagram vs 68% of Non-Hispanics 70% Of Online Hispanic New Vehicle Intenders Use Facebook, Twitter or Instagram vs 66% of Non-Hispanics Source: Simmons NCS/NHCS Fall 2016 FY, US A18+; Base: Online defined as visited website/search engine in past 30 days. New Vehicle Intenders : Next Vehicle Purchase - New 46

Hispanics Research And Shop For Autos Online 3 out of 4 new vehicle intenders have visited an auto shopping site in the past 90 days LOWER FUNNEL 76% of Hispanic Intenders Auto

47 Hispanics Research And Shop For Autos Online 3 out of 4 new vehicle intenders have visited an auto shopping site in the past 90 days LOWER FUNNEL 76% of Hispanic Intenders Auto Shopped or Compared Autos Online in the past 90 days 72% for Non-Hispanics Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Visited an auto shopping website last 90 days 47

15% of Non-Hispanics Source: Simmons NCS/NHCS Fall 2016 FY, US A18+; Base: Vehicle Purchase intenders that

48 Hispanics Research Autos Online More Frequently than Non-Hispanics Among Auto Purchase Intenders that Shopped Autos Online 16% of Hispanics auto shopped/compared 16+ times over the past 30 days vs. 15% of Non-Hispanics Source: Simmons NCS/NHCS Fall 2016 FY, US A18+; Base: Vehicle Purchase intenders that shopped or compared autos online over the past 30 days Purchase intenders are those planning on purchasing a vehicle in the next two years. 48

49 Where Do Hispanic Intenders Gather Information? Shopping Information Sources LOWER FUNNEL 52% Internet 52% 41% 34% Television 31% 31% Auto Brand Websites Dealer Websites Auto Shopping Websites Social Media Websites 19% Dealership Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK; A difference of 3 points is considered Significant (based on n=2000 at a 95% confidence level) Q13a. What sources of information were used for each activity? (Select At Least One Activity per Model) 49

Reviews/Complaints Read 3rd Party Vehicle Reviews Like/Follow Facebook Twitter Instagram Build a Vehicle Online LOWER FUNNEL Source: GfK Hispanic

50 What Are Hispanic Intenders Searching For Online? % Yes Among Hispanic Shoppers 40% 31% 30% 24% 17% 15% Review Vehicle Features/Options Search Best-Paid/Market Price Read Customer Reviews/Complaints Read 3rd Party Vehicle Reviews Like/Follow Facebook Twitter Instagram Build a Vehicle Online LOWER FUNNEL Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK; A difference of 3 points is considered Significant (based on n=2000 at a 95% confidence level) Q11. Which of the following have you done in the last 90 days to help you decide which new vehicle to purchase or lease? 50

51 While At The Dealership 72% of Hispanic recent purchasers used a mobile device to research/compare vehicles in the past 90 days vs. 73% Non-Hispanics Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Q15a. When visiting automotive web sites would you prefer to view the site in English or Spanish? 51

Digital Campaign Drives Hispanic Sales Growth For Texas Honda Dealer Association Mobile Target: Texas Hispanic new vehicle intenders 10 mile radius around

Hispanic sales growth outpaced industry Hispanics +12% 43% of Total Honda Sales are to Hispanics 42% of Total Growth from Hispanic Total +11% -2% Industry

52 Digital Campaign Drives Hispanic Sales Growth For Texas Honda Dealer Association Mobile Target: Texas Hispanic new vehicle intenders 10 mile radius around Honda dealers and competitors Homepage takeovers, desktop/mobile banners, and video pre-roll during Copa Centenario soccer tournament Results: Honda Hispanic sales growth outpaced industry Hispanics +12% 43% of Total Honda Sales are to Hispanics 42% of Total Growth from Hispanic Total +11% -2% Industry -1% Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and Leases), Enhanced Ethnic Data, 1-2Q CY16 vs. 1-2Q CY15, San Antonio DMA

Covert CDJR s Precision Mobile Campaign Over-Delivered Impressions In Austin Mobile Target: Austin Hispanic auto intenders Recently performed a shopping

average 19% of Total Covert CDJR Sales are to Hispanics Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and

53 Covert CDJR s Precision Mobile Campaign Over-Delivered Impressions In Austin Mobile Target: Austin Hispanic auto intenders Recently performed a shopping activity 15 mile radius around Covert dealerships and competitors Results: Drove 1,000+ leads to Covert CDJR Click-thru Rate (CTR) +54% higher than average 19% of Total Covert CDJR Sales are to Hispanics Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and Leases), Enhanced Ethnic Data, CY16, Austin DMA Precision Mobile Average Click-thru Rate= 0.35% Click-thru Rate (CTR) = Number of Clicks/Number of Impressions 53

54 Hispanic Community Engagement DJ Endorsements, Radio Remotes, Festival Sponsorships, Giveaways

Used Vehicle Registrations (Personal Includes Leases) (1981-2018); May CY15-Apr CY17 vs.

55 Dallas, Last 24 Months Spanish-Language Media Investment Results in Total Growth +40% Hispanic Volume Growth (+42% Total Growth) Hispanics Represented 79% of Total Growth 82% Total Sales to Hispanics Source: Used Vehicle Registrations (Personal Includes Leases) ( ); May CY15-Apr CY17 vs. May CY13-Apr CY15; Enhanced Ethnic Data; Texas State; (Note: Toyota includes Scion beginning 3Q CY16; Dodge does not include Ram)

56 Top Auto Brands Hablan Español Online Spanish-Language Website (desktop/mobile) En Español Canal en Español En Español *1 *2 *3 *4 *5 As of September ) Chevrolet Spanish Ads Playlist

57 Third Party Sites Provide Shopping Tools En Español Vehicle Description* Customized Search Vehicle Pick-Up Locator *1 *2 Page fully in Spanish Page switches to English As of June 2017.

Growing Demand For Spanish-language Auto Content During The Purchase Process Importance of Spanish-Language Experience While Shopping LOWER FUNNEL Dealership 50% Websites 45% Advertising 43% Social

58 Growing Demand For Spanish-language Auto Content During The Purchase Process Importance of Spanish-Language Experience While Shopping LOWER FUNNEL Dealership 50% Websites 45% Advertising 43% Social Media 33% Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK; A difference of 3 points is considered Significant (based on n=2000 at a 95% confidence level) Base=Total Hispanics: 2013 Q4 (n=1034) / 2016 Q4 (n=2001) Q14. When shopping for a new vehicle, how important is.? (Very / Extremely Important Top 2 Box) 58

59 Closing the Deal

60 We re advertising heavily in broadcast media, our infomercials educate on how to buy, we have a first time buyers program and our website Casa de Honda is exclusively in Spanish. Brian Benstock, General Manager/VP Paragon Honda/Acura - NY 60

61 Dealership Experience Important To Hispanics Among % Extremely/Very Important Hispanic Non-Hispanic Dealer Offers Competitive Prices 83% 81% Having Trust In The Dealership 80% 78% Dealership Makes You Comfortable 80% 73% Dealer Offers Good Finance Options 79% 72% Visiting A Dealership 72% 68% Previous Experience With Dealer 57% 55% LOWER FUNNEL Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK; A difference of 3 points is considered Significant (based on n=2000 at a 95% confidence level) Q14. When shopping for a new vehicle, how important is.? Five point scale 61

63 Spanish-Speaking Salesperson Impacts First Impression Establishes rapport with customer and family Increases comfort level Eliminates barriers Opportunity to become a trusted advisor 63

Hispanic Friendly Showroom Spanish signage, POP, brochures Se Habla Español (Spanish Spoken Here) website as well as all entrances and employee

64 Hispanic Friendly Showroom Spanish signage, POP, brochures Se Habla Español (Spanish Spoken Here) website as well as all entrances and employee name tags Set up negotiation areas to accommodate families Children s section small desks, chairs with coloring materials Celebrate the purchase 64

Optimum To Speak Spanish At Every Consumer Touch Point Marcia Fuentes Salesperson

A lot of our customers do speak English but prefer to speak Spanish, or ask for

all the way down to service they re going to find somebody that will take care of

65 Optimum To Speak Spanish At Every Consumer Touch Point Marcia Fuentes Salesperson Rody Rodriguez F&I Manager Rick Carrasco F&I Manager Jesse Hernandez Service Advisor A lot of our customers do speak English but prefer to speak Spanish, or ask for somebody in Spanish to understand the process a lot better. They don t want to miss a detail. So from the hello to the greeting, dealing with [the salesperson], down to finance, all the way down to service they re going to find somebody that will take care of them in their language to answer every single question that they have. Source: Univision proprietary dealer interviews.. All Rights Reserved. Major Metro Honda Dealer 65

66 F&I Managers Who Speak Spanish Increase Closing Ratio Facilitates communication, explanation of terms Even bilinguals may prefer Spanish Makes negotiation less stressful Maximizes vehicle and F & I product sales 66

67 Hispanics More Optimistic About Their Finances in the Near Future Over the next 6 months, do you expect your personal financial situation to get better, stay the same or get worse? Jan May CY17 Get better 39% 60% Stay the same 27% 46% Get worse 13% 16% Hispanic Non-Hispanic Source: CivicScience. Jan May CY17. 67

68 Do Your Dealership And Marketing Reflect The Marketplace? by

Action Plan For Success Do Your Homework Understand the Demographics of your Market Evaluate Competitive Environment Define the Sales Opportunity Build a Winning Team Identify Spanish Speakers Among

69 Action Plan For Success Do Your Homework Understand the Demographics of your Market Evaluate Competitive Environment Define the Sales Opportunity Build a Winning Team Identify Spanish Speakers Among Current Staff Recruit/Train Spanish-speaking Personnel Create/Refine Sales Process to Embrace Hispanics Develop a Consistent Plan Establish a Dedicated Spanish-language Budget Consider TV/Radio/Digital Participate in Community Events 69

70 Gracias!

71 Establishing A Budget Auto Advertisers Utilize A Combination Of These Data Points To Determine The % Of Their Total English-language TV/Radio Budget To Invest In Spanish-language Media Hispanic Population and Language usage: % of A18-49 population that is Hispanic: In DMA X% Within in 10-mile radius of dealership: X% Who speak Spanish X% TV Viewership: % of Total A18-49 TV viewing to Spanish-language TV X% % of used vehicles sold to Hispanics: Top Ten Selling Brands to Hispanics X% Dealership X% 71

72 Keys To Winning With Hispanics Hispanic is a strategic growth initiative Embraced and prioritized by dealership management Dedicate a consistent % of total ad budget Communication Leverage Tier 1 and 2 advertising Focus on right to win models Connect with Hispanic passion points in creative messaging, media properties purchased, event participation Track Success 72

73 Precision Mobile Engages Users, Raises Brand Awareness, Drives Dealership Traffic Target Defines, locates and connects with active new vehicle shoppers Reach Reaches online users based on recent searches Engage Engages consumers with localized ad messaging Drives Drives dealership traffic with real time optimized campaign 73

Win with Hispanics: Impact Your Bottom Line!

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