Win with Hispanics: Impact Your Bottom Line!

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1 Win with Hispanics: Impact Your Bottom Line! Presented By This webinar will begin momentarily. While you wait, visit Automotive News for breaking news Linkedin for company news /autonews for photo galleries +automotivenews for daily newscasts

2 WELCOME Phil Nussel Online Editor Automotive News

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3 NAVIGATION TIPS - For a better webinar experience, we recommend closing and other open programs/browsers, as these applications may cause glitches in the steaming audio. To submit a question Download slides Provide feedback

4 TODAY S PRESENTERS Sara Hasson Senior Vice President Automotive Strategy & Insights Dick Williams Vice President Automotive Industry Consultant

5 WIN WITH HISPANICS: IMPACT YOUR BOTTOM #auto411

6 1 Hispanic Consumer 2 Automotive Marketplace 3 Proprietary Univision/GfK Research

7 MEET THE HISPANIC CONSUMER

8 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 2014

9 HISPANICS FUEL U.S. POPULATION GROWTH % of Total U.S. Population Hispanic 16% 19% 22% 24% 26% 29% 119 Million Source: U.S. Census Bureau 2014 National Projections. *Other includes: AIAN, NHPI, Two or more races.

10 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.

11 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 Race & Hispanic projections by age

12 2026: MAJORITY OF A18-24 WILL BE NON-WHITE Changing Landscape The general market as we know it is changing, what marketers once thought of as multicultural media is fast becoming mainstream Source: U.S. Census Race & Hispanic projections by age

13 HISPANICS ARE A SIGNIFICANT PART OF THE POPULATION IN MAJOR MARKETS Hispanic % of Population San Antonio 58% Miami 53% Los Angeles 51% Houston 40% Phoenix 33% Dallas-Ft. Worth 31% San Francisco 29% New York 28% Chicago 25% Source: The Nielsen Company, 2017 TV Universe Estimates. A18-49

14 AND POPULATION CONTINUES TO GROW IN EMERGING MARKETS Hispanic % of Population Albuquerque 49% Denver 24% Philadelphia 14% Raleigh 13% Atlanta 13% Seattle 13% Charlotte 11% Nashville 8% Detroit 5% Source: The Nielsen Company, 2017 TV Universe Estimates. A18-49

SUPER CONSUMERS Hispanic NH White African American Asian Life Expectancy 82 79 75 87 29 Median Age 29 43 34 37

Control and Prevention - National Vital Statistics Reports, Vol. 65 No.

15 SUPER CONSUMERS Hispanic NH White African American Asian Life Expectancy Median Age Years of Effective Buying Power years more than Non-Hispanic White Sources: (1) Centers for Disease Control and Prevention - National Vital Statistics Reports, Vol. 65 No. 4, June 30, 2016; (2) American Human Development Report - The Measure of America ; (3) U.S. Census Bureau, 2015 American Community Survey 1-Year Estimates

16 HISPANICS HAVE A PURCHASING POWER OF $1.5 TRILLION

RISING INCOMES From 2000-2016 +223% Growth in Hispanic Households $75k+ vs. +84% Non-Hispanic Source: Geoscape. American Marketscape Datastream 2016 Series.

17 RISING INCOMES From % Growth in Hispanic Households $75k+ vs. +84% Non-Hispanic Source: 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.

18 HISPANICS LIVE IN THE NOW! % of Disposable Income Spent 94% vs. 83% Non-Hispanics Source: 2015 IHS Global Insight Hispanic Market Monitor US. Disposable Income = Consumer Spending.

19 MORE VALUE: DRIVEN BY LIFESTAGES 60% More Likely To Be Getting Married 53% More Likely To Have 1 st Child 3.8 people per Hispanic Household vs. 2.9 for Non-Hispanic 61% More Likely To Buy 1 st New Home Source: Simmons NCS/NHCS Fall 2016 FY; Base: A 18+. Index to Total Population, next 12 months.

20 FINANCIALLY VIABLE CONSUMER Hispanic Average Base MSRP Hispanic Lease Penetration $29,900 29% Total $32,100 Total 30% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16, U.S.

21 12 YEARS YOUNGER Average Age 31 Hispanics 43 Non-Hispanics Source: 2017 TV Universe Estimates

22 44% OF TOTAL NEW VEHICLE PURCHASERS ARE 55 AND OVER 2016 % of New Vehicle Purchasers by Age, U.S. 12% 44% A55+ 44% Total 44% A18-34 A35-54 A55+ Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and Leases), CY16; U.S.

23 44% OF TOTAL NEW VEHICLE PURCHASERS ARE 55 AND OVER 69% OF HISPANIC NEW VEHICLE PURCHASERS ARE UNDER % of New Vehicle Purchasers by Age, U.S. 12% 31% 16% 44% A55+ 44% Total 44% 56% A18-54 Hispanic 53% 69% A18-54 A18-34 A35-54 A55+ Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and Leases), CY16; U.S.

24 18% OF U.S. HISPANICS SPEAK ENGLISH ONLY 58% Bilingual 18% English Only 24% Spanish Only Source: 2016 Universe Estimates by language Strata (Language spoken by person) A18-49, US.

25 24% OF U.S. HISPANICS SPEAK SPANISH ONLY 58% Bilingual 18% English Only 24% Spanish Only 24% Spanish Only Source: 2016 Universe Estimates by language Strata (Language spoken by person) A18-49, US.

26 58% OF U.S. HISPANICS ARE BILINGUAL 58% Bilingual 18% English Only 24% Spanish Only 24% Spanish Only 58% Bilingual Source: 2016 Universe Estimates by language Strata (Language spoken by person) A18-49, US.

27 SPANISH IS A CHOICE, NOT A NECESSITY 58% Bilingual 82% 18% English Only 24% Spanish Only 24% Spanish Only 58% Bilingual 82% Speak Spanish Source: 2016 Universe Estimates by language Strata (Language spoken by person) A18-49, US.

28 U.S. SPANISH-LANGUAGE USAGE PROJECTED TO CONTINUE GROWING +11% +13% HISPANIC A5+ SPEAK ANY SPANISH AT HOME (IN MILLIONS) 37M 41M 46M Source: IHS Economics. Hispanic Immigration and US Economic Growth, February 2015.

THE START OF A BEAUTIFUL RELATIONSHIP Valuable, Lifelong Customer 12 Years Younger

43 Non-Hispanic) Hispanic New Vehicle Buyers Potential for 3+ More Purchases Return

4 Years Average Time Between New Vehicle Purchases vs. 3.

Age: Source: Medium aged based on The Nielsen Company, 2017 TV Universe Estimates;

29 THE START OF A BEAUTIFUL RELATIONSHIP Valuable, Lifelong Customer 12 Years Younger (31 vs. 43 Non-Hispanic) Hispanic New Vehicle Buyers Potential for 3+ More Purchases Return to Market: 3.4 Years Average Time Between New Vehicle Purchases vs. 3.4 Years Total Market Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK; Age: Source: Medium aged based on The Nielsen Company, 2017 TV Universe Estimates; Return to market: Polk 1-2Q CY16 Custom Study; New Vehicle Retail Registrations (Sales and Leases), based on Enhanced Ethnic Data 1st Time New Vehicle Buyers 12% of in-market Hispanics (vs. 6% NH) 1 in 5 Spanish-only consumers are buying their 1st new vehicle

30 HISPANICS ARE ESSENTIAL TO YOUR #auto411

31 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.

32 AND % OF TOTAL NEW VEHICLE SALES TO HISPANICS INCREASED +56% Among All Auto Brands 14% % % Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S.

33 SPANISH-LANGUAGE AUTO ADVERTISING DOUBLES DUE TO STRONG ROI $497M X $1B 2016 Source: Ad Intel Analysis, Kantar Media, Stradegy, Miller Kaplan; 2010, 2016

34 Hispanic New Vehicle Sales Growth CY15 vs. CY16 +4% vs. Total +0.3% of Hispanics Represent 100% Total Growth Source: IHS Automotive Driven by Polk, New Vehicle Personal Registrations (Sales & leases) Enhanced Ethnic Data, CY16 vs. CY15; U.S.

35 TRUCKS GAINING FAVOR AMONG TOTAL MARKET AND HISPANICS U.S. Car/Truck Ratio Total Hispanic 51% +18% 60% TRUCKS +13% 46% 52% 49% -18% 40% CARS 54% 48% -11% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S. *Note: Trucks include (CUVs, Pickup Trucks, SUVs, and Vans)

36 COMPACT CUV CLOSING THE GAP WITH COMPACT AMONG HISPANICS Segment Share of Hispanic Sales 20% 16% 12% 20% 18% 14% Compact Compact CUV Midsize Top 3 Segments Represent 52% of Hispanic New Vehicle Sales Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY10-CY16, U.S.

37 TOYOTA IS #1 HISPANIC BRAND IN MOST STATES Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data CY16, Car and Truck combined U.S.

38 AND IN 2010, IN 2016, TOP 5 TOP BRANDS 5 BRANDS CAPTURED CAPTURED 63% OF 61% U.S. HISPANIC OF U.S. HISPANIC SHARE NEW VEHICLE NEW VEHICLE SALES SALES U.S. Hispanic Share of Market % % vs. Total 57% vs. Total 54% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S.

39 INCREASING CHALLENGER PERCENT BRANDS OF GAINING SALES TO SHARE HISPANICS U.S. Hispanic Share of Market % 20% vs. Total 18% vs. Total 21% % of Total Sales to Hispanics 8% 14% Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S.

Top 10 Auto Brands Invest 12% of Total TV

40 Top 10 Auto Brands Invest 12% of Total TV $ in Spanish-language TV Source: Network: Ad Intel Analysis (Totals include Network, Cable, Syndication) + Spot: Kantar Media, Stradegy, Totals include Spot TV (210 Markets) spending for Tier 1 & , 2016; U.S.

41 PROPRIETARY HISPANIC AUTO #auto411

42 HISPANIC NEW VEHICLE INTENDERS SHOW BROADER CONSIDERATION SETS Hispanic vs. Non-Hispanic +21% More likely +12% More likely +34% More likely Top Three Japanese Leading Domestic Challenger Brands Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

43 YET, HISPANIC INTENDERS CONSIDER THE SAME NUMBER OF MODELS Average Number of Models Considered 3.0 Hispanic 2.9 Non-Hispanic Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

44 ARE YOUR ADS IMPACTING PERCEPTIONS AND BEHAVIOR? The GfK Purchase Funnel as a Diagnostic Tool Upper Funnel Brand Tracker Automotive Brand Perceptions Lower Funnel Intentions and Shopping New Vehicle Purchase Process and Shopping Activity Awareness Familiarity Opinion Consideration 1st Choice Intention Shopping Purchase Is your Awareness high enough? Are you building or sustaining your Opinion? Are you making Consideration lists? Are you generating enough traffic? Is demand translating to sales?

45 TOP JAPANESE BRANDS DO A BETTER JOB CONVERTING OPINION TO FIRST CHOICE INTENTION THAN DOMESTIC TIER 1 COMPETITORS Awareness (% Very/Somewhat Familiar) Hispanic Tier 1 Import Brand Non- Hispanic Tier 1 Domestic Brand Hispanic Non-Hispanic Familiarity (% Very Familiar) Opinion (% Top-Box) Consideration (% Top-Box) Intentions: (All Intenders) Share of Shops Share of Sales Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC; GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

46 CHALLENGER BRANDS CREATE MUCH LOWER TOP-BOX OPINION AND WEAKER CONVERSION OF TO FIRST CHOICE INTENTION Awareness (% Very/Somewhat Familiar) Hispanic Tier 2 Import Brand Non- Hispanic Tier 2 Domestic Brand Hispanic Non- Hispanic Familiarity (% Very Familiar) Opinion (% Top-Box) Consideration (% Top-Box) Intentions: (All Intenders) Share of Shops Share of Sales Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC; GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

47 HISPANICS RATE MOST KEY BRANDS AVERAGE ON IMAGE ATTRIBUTES # of Brands - Image Attribute Ratings Fits My Personality Willing to Pay More Retains its Resale Quality Value for the Money Driving Performance 1 9 Attractive Styling 1 9 Advanced Technology 1 9 Safety Fuel Efficient 2 7 Above Average Average Below Average 1 Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

48 HISPANICS RATE MOST KEY BRANDS AVERAGE ON PERSONALITY ATTRIBUTES # of Brands - Personality Attribute Ratings Proud to Own Premium Intelligent Trusted 10 Unique 1 9 Exciting 8 2 Practical 10 Innovative 1 9 Modern 10 Adventurous Above Average Average Below Average Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

49 PRIMARY DRIVERS OF HISPANIC OPINION OF CORE BRANDS RATIONAL DRIVERS EMOTIONAL DRIVERS Quality Driving Performance Fits My Personality Safety Proud Premium Trusted Intelligent Unique Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

50 HISPANIC INTENDERS MORE LIKELY TO BE PURCHASING IN THE NEAR-TERM 45% 64% 10% Of Hispanics Plan to Buy a New Vehicle in Next 5 Years Of Hispanic Intenders Plan to Purchase in the Next Year More Likely to Purchase Within the Next Year than Non-Hispanics Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

51 WHAT BRANDS DO HISPANICS PLAN TO BUY? % of New Vehicle Intentions 37% 1st Choice 24% 1st Choice 14% 1st Choice Top Three Japanese Leading Domestic Challenger Brands Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

52 Hispanic Intenders 2X More Likely to be First Time NEW Vehicle Buyers Spanish Only Hispanics are 73% More Likely to be First Time NEW Vehicle Buyers than Bilingual Hispanics Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

53 WHAT ARE THE TOP TEN SEGMENTS FOR INTENTION AND SHOPPING FOR HISPANIC INTENDERS? Among Top-Ten Segments SEGMENT INTENDED SEGMENT SHOPPED Compact Car Midsize SUV Compact CUV Upper Middle Full-size Pickup Near-Entry Luxury Full-size SUV Lower Middle SUV Premium Midsize Entry Car Compact Car Midsize SUV Upper Middle Compact CUV Full-size Pickup Near-Entry Luxury Full-size SUV Lower Middle SUV Premium Midsize Mid-Prestige Luxury Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

BIG THREE JAPANESE BRANDS DOMINATE THE TOP MODELS AMONG HISPANICS HISPANIC FIRST CHOICE INTENTION Top 15 Models - Share of Hispanic Industry Intention 5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 2% 1% 1% 1%

54 BIG THREE JAPANESE BRANDS DOMINATE THE TOP MODELS AMONG HISPANICS HISPANIC FIRST CHOICE INTENTION Top 15 Models - Share of Hispanic Industry Intention 5% 5% 4% 3% 3% 2% 2% 2% 2% 2% 2% 1% 1% 1% 1% Camry Accord Corolla Civic F-Series Silverado Focus 4Runner Prius Explorer Altima Escape CR-V Camaro Wrangler Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

55 THE 1 ST CHOICE INTENTION MODELS FOR BILINGUAL INTENDERS HISPANIC FIRST CHOICE INTENTION Top 10 Models of Bilingual Intenders 6% 6% 6% Bilingual 4% 5% 4% 3% 3% 4% Spanish Only 2% 2% 2% 2% 2% 2% 2% 2% 1% 1% 0% Accord Camry Corolla F-Series Civic Prius Silverado Explorer 4Runner Edge Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

AMONG SPANISH-ONLY INTENDERS THE TOP TEN 1 st CHOICES INCLUDE SOME OTHER MODELS HISPANIC FIRST CHOICE INTENTION Top 10 Models of Spanish-Only Intenders 4% 6% 6% 5% 3% 4% 6% 4% 4% 4% 2%

56 AMONG SPANISH-ONLY INTENDERS THE TOP TEN 1 st CHOICES INCLUDE SOME OTHER MODELS HISPANIC FIRST CHOICE INTENTION Top 10 Models of Spanish-Only Intenders 4% 6% 6% 5% 3% 4% 6% 4% 4% 4% 2% Bilingual Spanish Only 3% 1% 2% 2% 2% 2% 1% 1% 1% Corolla Camry Civic Focus Accord C-Max 4Runner Altima CR-V F-Series Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

57 QUALITY AND TRUST TOP THE STATED REASONS FOR HISPANICS SELECTING THEIR FIRST CHOICE Quality Trust This Brand Safety Fits My Personality Exterior Styling/Appearance Fuel Economy Interior Look And Feel Performance/Handling/Ride Value Features And Technology Interior Room/Cargo Capacity Brand Image/Prestige Previous Experience/Ownership Price/Incentives Manufacturer/Dealer Financing Dealership 11% 14% 40% 39% 38% 38% 38% 37% 36% 34% 33% 31% 29% 26% 56% 54% Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

58 Checked Inventory 17% of Hispanics Actively Shopped for a New Vehicle in the Past 90 Days Requested Price Quote Took a Test Drive Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

59 WHAT MODELS ARE HISPANICS SHOPPING FOR? HISPANICS BILINGUALS SPANISH ONLY Camry Accord Civic Corolla Altima F-Series Pickup Focus 4Runner Fusion C-MAX Camry Accord Civic Corolla Altima F-Series Pickup 4Runner Focus Escape Cruze Camry C-MAX Accord Corolla Civic Altima Focus Equinox Impala RAV4 Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

60 HISPANICS SHOP AT PARITY WITH NON-HISPANICS Average Number of Models Shopped for in the Past 90 Days 2.4 Hispanic Non-Hispanic Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC Note: Participants can select up to 5 Makes/Models

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% Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK

62 LUXURY #auto411

63 NEW VEHICLE SALES TO HISPANICS INCREASING ALL NEW VEHICLES NEW VEHICLES WITH $30K+ MSRP NEW LUXURY VEHICLES 1.9M K K 2016 More than More than More than 2X 2X 2X 802K K K 2010 Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY16 vs. CY10, U.S. Luxury brands: Acura, Audi, BMW, Cadillac, Genesis, Jaguar, Infiniti, Land Rover, Lexus, Lincoln, Mercedes-Benz, Porsche, Volvo.

64 LUXURY BRANDS INVESTING IN SPANISH-LANGUAGE MEDIA Spanish-language TV/ Radio Investment $6M 2013 More than 4X $28M 2016 Source: AdIntel Analysis, 2013, 2016 U.S. Totals include Network and Cable spending for Tier 1 & 2 in U.S. No individual dealers. KANTAR, Stradegy Analysis 2013, Totals Include Spot TV spending for Tier 1 & 2. Local Markets Include Radio Spending: Miller Kaplan X-Ray, 2013, 2016.

65 46% 67% OF TOTAL HISPANIC NEW NEW LUXURY LUXURY VEHICLE VEHICLE PURCHASERS ARE 55 UNDER AND 55 OVER 2016 % of New Luxury Vehicle Purchasers by Age, U.S. 9% 13% 46% A55+ 46% Total 45% 54% A % Hispanic 54% 67% A18-54 A18-34 A35-54 A55+ Source: IHS Automotive Driven by Polk New Vehicle Personal Retail Registrations (Sales and Leases), CY16; U.S. Luxury Brands Include: Acura, Audi, BMW, Cadillac, Genesis, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes, Porsche, & Volvo

66 11% of Total New Luxury Vehicle Sales 16% of Total Luxury Growth Source: IHS Automotive Driven by Polk, New Vehicle Personal Registrations (Sales & leases) Enhanced Ethnic Data, CY16 vs. CY10; U.S.; Luxury Brands Include: Acura, Audi, BMW, Cadillac, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes, Porsche, & Volvo

67 Hispanics are 49% More Likely to Buy Luxury as a First New Vehicle than Total Market Source: IHS Automotive driven by Polk Loyalty Analytics Tool, Total US, CY16. The data only contains and evaluates households in a given time period who are returning to market to purchase a new vehicle (sales and leases), where the last vehicle purchased was also a new vehicle (sales and leases). New Vehicle Entrants are new vehicle buyers who are first time new vehicle buyers, most recent previous vehicle purchase was used, previous new vehicle purchase was over 10 years ago. IHS Automotive driven by Polk, New Vehicle Personal Registrations (Including Leases) Enhanced Ethnic Data, CY16, US.

68 MERCEDES AND LEXUS TIED FOR #1 LUXURY BRAND Hispanic Share of Luxury Market, U.S. CY13 CY16 Change +/- CY13 CY16 19% 19% 19% % CY13 CY14 CY15 CY16 Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY13 CY16, U.S. Luxury Brands include: Acura, Audi, BMW, Cadillac, Genesis, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes, Porsche, & Volvo. 68

69 MERCEDES AND LEXUS TIED FOR #1 LUXURY BRAND Hispanic Share of Luxury Market, U.S. CY13 CY16 Change +/- CY13 CY16 21% 19% 15% 19% 19% 17% % 10% 8% 9% 8% 7% 7% 6% CY13 CY14 CY15 CY Source: IHS Automotive Driven by Polk, New Vehicle Registrations (Personal Retail includes Leases) Enhanced Ethnic Data, CY13 CY16, U.S. Luxury Brands include: Acura, Audi, BMW, Cadillac, Genesis, Infiniti, Jaguar, Land Rover, Lexus, Lincoln, Mercedes, Porsche, & Volvo. 69

70 PROPRIETARY HISPANIC AUTO RESEARCH - #auto411

71 30% of Hispanic Intenders Have a Luxury Vehicle in Their Consideration Set vs. 29% Non-Hispanic

72 AUDI AND LEXUS ACHIEVE HIGH TOP-BOX OPINION LEVELS Awareness (% Very/Somewhat Familiar) Audi Lexus Hispanic Non-Hispanic Hispanic Non-Hispanic Familiarity (% Very Familiar) Opinion (% Top-Box) Consideration (% Top-Box) Intentions: (All Intenders) Share of Shops Share of Sales Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

73 QUALITY AND TRUSTED LEAD PRIMARY DRIVERS OF HISPANIC OPINION OF LUXURY BRANDS RATIONAL DRIVERS PERSONALITY DRIVERS Quality Driving Performance Safety Advanced Technology Trusted Practical Premium Source: GfK Hispanic Auto Brand Tracker Q GfK Custom Research, LLC

74 REASONS FOR FIRST CHOICE PREFERENCE AMONG HISPANIC LUXURY INTENDERS Quality Trust This Brand Exterior Styling/Appearance Features and Technology Interior Look and Feel Safety Fits My Personality Performance/Handling/Ride Brand Image/Prestige Interior Room/Cargo Capacity Fuel Economy Value Previous Experience/Ownership Manufacturer/Dealer Financing Price/Incentives Dealership 23% 19% 19% 15% 30% 29% 31% 47% 47% 47% 44% 41% 41% 55% 54% 65% Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

75 LUXURY VEHICLE AS FIRST CHOICE Luxury % of New Vehicle Intentions 3 IN 10 HISPANIC SHOPPERS HAVE SHOPPED FOR A LUXURY VEHICLE Luxury % of New Vehicle Shoppers 17% 30% Hispanic Hispanic Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

76 TOP-10 MODEL INTENTION AND SHOPPING LISTS ARE NOT LIMITED TO NEAR AND ENTRY LUXURY MODELS TOP 10 MODELS INTENDED Acura MDX BMW 3-Series/4 Series Audi A4/S4 Audi A3/S3 BMW 5-Series BMW 7-Series Acura TLX Lexus RX Acura ILX Audi Q7 TOP 10 MODELS SHOPPED BMW X5 BMW 3-Series/4 Series BMW 5 Series Audi A4/S4 Cadillac Escalade Audi Q7 BMW 7 Series Cadillac ATS Infiniti GS Acura RDX Source: GfK Hispanic Lower Funnel Auto Tracker Q GfK Custom Research, LLC

KEY TAKEAWAYS Strong opinion leads to first choice intention which improves sales

building consideration, opinion and intention Hispanics are more likely to be

77 KEY TAKEAWAYS Strong opinion leads to first choice intention which improves sales performance Young, aspirational, upwardly mobile Hispanics drive population and industry sales growth Opinion formation and brand trust are influenced by the same factors for both luxury and non-luxury Spanish is key to building trust and building consideration, opinion and intention Hispanics are more likely to be near-term and first time buyers Impact your bottom line by making Hispanic a strategic growth initiative!

78 #auto411

79 For More Information, Please Contact: Sara Hasson, SVP Auto Strategy & Insights Univision Communications, Inc. Dick Williams, VP, Automotive Industry Consultant GfK Automotive #auto411

80 THANK YOU The recorded webinar will be available for 12 months at You will receive an when it is available. additional comments/questions to

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