CAR Inc.2018 Annual Results Earnings Call

March 12, 20198:00 pm Beijing Time

Agenda

Tony CAOChief Financial Officer

1

Business Overview

FinancialResults

Overview

Yifan SONGExecutive Director & Chief Executive Officer

Business Overview

Yifan SongExecutive Director & Chief Executive Officer

2018 Achievements

3

Adjusted net profit increased by 11% YOY; Margin increased to 13%

Adjusted EBITDA increased by 9% YOY; Margin increased to 61%

Solid and sustainable profitability

Integrated mobility platform

World leading car rental APP

Local and international car rental, car sharing, fleet rental and ride-hailing

Special packages for one way rental, weekday, weekly and monthly rental

Self serve, delivery and pickup

Free GPS with flags: gas station, parking lots, etc.

Entrance to various services

Comprehensive functionalities

One-stop mobility solution for various needs

4

Car rental Car sharing

Global rental Ride-hailing

DeliveryPickup

UCARHertz

Self serve

World leading car rental APP

5

Transparency InteractionGPS Sharing

Continuous service network upgrade

6

Full service / Self-serve store

24hrs self-serve pick up point

24hrs full service store

Dynamic service point

Technology-driven operational excellence and customer experience

7

Self-serve reservations in December, increased from 43% in September

62%

91%

91% Car rental fleet enabled for self-serve service as at the end of 2018

Reservations through mobile APP in Q4

8

Improved operating efficiency

2017 2018

Number of staff Number of total vehicles

135,191

102,500

6,9106,303

Vehicles per staff 16

20

Steadily expanding customer base

9

• 35% YoY average daily car rental fleet in 2018

• Self-operated repair and maintenance facilities coverage expanded to 46 cities, covering 90%+ fleet as at end of December

2017 2018

2017 2018

+28% YoY Customers

+24% YoY Members

2019 Strategies

10

Expand geographical network

Enhance intelligent services, e.g. Smart Assistant, self serve functions

Further upgrade mobile APP with advance features

Service Excellence

Used car disposal

Debt Refinancing

Recover disposal volume

Diversify disposal channel

Seek disposal alternatives e.g. buy back program

Reduce size of bullet repayment

Optimize repayment schedule

Financial Results Overview

Tony Cao Chief Financial Officer

12

4Q’2018 Highlights

4Q'17 4Q'18 4Q'17 4Q'18

4Q'17 4Q'184Q'17 4Q'18

(RMB in millions，except for total operating fleet)

+9% YoY Rental Revenue

1,317125,311

+35% YoY Total Operating Fleet

+15% YoY Adjusted EBITDA

+53% YoY Adjusted Net Profit

785

113

Notes:(1) Margins are as percentage of rental revenue(2) Reconciliation of adjusted EBITDA and adjusted net profit can be found in CAR Inc.’s 2018 annual results announcement

Higher return per share

13

0.272

2017 2018

(RMB)

+17% YoYAdjusted EPS

Note:Reconciliation of adjusted EPS can be found in CAR Inc.’s 2018 annual results announcement

0.318

Notes:(1) Margins are as percentage of rental revenue(2) Reconciliation of adjusted EBITDA margin and adjusted net profit margin can be found in CAR Inc.’s 2018 annual results announcement

14

Recovering profitability profile

12%13%

2017 2018

59% 61%

2017 2018

Adj. EBITDA margin Adj. net profit margin

15

Increasing concentration on core car rental business

Fleet rental &other revenues

Car rental revenue

(RMB in millions) +27pp YoY Car rental concentration

2016 2017 2018

43%

57%

75%

25%16%

84%

5,340

16

Sustainable cost structure

10% 10%

2017 2018

12% 13%

2017 2018

27% 28%

2017 2018

34%32%

2017 2018

SG&A

Finance cost Depreciation

Direct operating expenses

Notes:(1) Margins are as percentage of rental revenue(2) Finance cost includes interest income from bank deposit

Cost of sales of used vehicles as % of sales of used vehicles

Used car disposal

Depreciation as % of rental revenue

23.4%

2014

95.1%

21.4%

2015

101.1%

25.1%

2016

103.0%

27.2%

2017

101.1%

100%

• Cost to sales ratio at 103.9%, as a result of a higher mix of special vehicles

• Depreciation % increased by 0.8 pp YoY, due to lower RevPAC

• Used car sales decreased significantly to ~13,000 for more fleet availability for car sharing services

17

28.0%

2018

103.9%

Financial positions

18

30 Sep. 2018 31 Dec. 2018

1

2

3

12.7B

3.9X

2.8X

13.4B

2.9X

4.3XDebt to adjusted EBITDA

Total Debt

Net debt to adjusted EBITDA

(RMB)

Note:Reconciliation of adjusted EBITDA can be found in CAR Inc.’s 2018 annual results announcement

Q & A