TONY GEORGE GROUP BUSINESS DEVELOPMENT & HR DIRECTOR

Multi industry

experience: FMCG,

Retail, Chemicals &

Telecoms

Member of the

Group Executive

Committee

since 2007

Inchcape as strategic partner to the world’s leading car brands

MANUFACTURER

RETAILER

VEHICLES, F&I,*

PARTS & SERVICE

DISTRIBUTOR

VEHICLES & PARTS CUSTOMER

Inchcape owns the value chain ex

manufacturing as a Distributor

Inchcape creates and

manages the network of

retail sites (Dealers)

Selective capital

allocation:

• Inchcape typically

runs 10-20% of the

network

• Inchcape appoints

3rd party dealers (B2B

sales of New Vehicles

& Parts) to complete

the network

INCHCAPE

* F&I: Finance & Insurance

Pro forma Distribution Country

Inchcape owned sites (x4)

Dealer sites (x25)

Head office

Light asset intensity - Inchcape’s Distribution Footprint

As at Dec 2013

Distribution and Vertically Integrated Retail (VIR) markets

479 332 147

102 49 53 EM

146 101 45 Australasia

9 - 9 South Asia

23 - 23 North Asia

199 182 17 Europe

Total

3rd party

dealers*

Inchcape owned

and operated sites*

VIR in city state markets

where a small footprint

covers the territory

Support

Long standing relationships

Inchcape length of brand relationships

Inchcape

delivers on

market share

and customer

service

excellence

Established relationships with brand partners across multiple continents

0

10

20

30

40

50

Subaru BMW VW Mercedes JLR Toyota

Year

s

Strategic role of 3rd Party Dealers

Our route to market where we are appointed as Distributor

• Highly efficient route to market / capital light

• Appointing dealer network to leverage local retail expertise from

partners / dealers

• Managing, motivating and incentivising dealer network

Developing and managing the right dealer network

Location

(zone the

country)

Investment

Standards in

Facilities,

Operations,

Management, IT

People Training Quality Control

Growing our Distribution presence New Distribution and VIR contracts

Inchcape is well positioned for attractive consolidation opportunities in the

fragmented global automotive market

Bulgaria Toyota

Bulgaria Lexus

Romania Toyota

Romania Lexus

Albania Toyota

Albania Lexus

Macedonia Toyota

Macedonia Lexus

Q1 1996

Q1 1996

Q1 2000

Q1 2000

Q1 2000

Q1 2000

Q1 2000

Q1 2000

Latvia BMW

Latvia Ford

Lithuania Mitsubishi

Lithuania Hyundai

Lithuania Ford

Chile Rolls Royce

Hong Kong Land Rover

Hong Kong Ford

Q2 2007

Q2 2007

Q2 2007

Q2 2007

Q2 2007

Q4 2011

Q4 2011

Q4 2011

Strategic priorities for expanding our distribution footprint

• Premium / Luxury Brand

• APAC / EM

• Aspirational and growing middle class

Strict discipline on fulfilling hurdle

requirements:

Post tax IRR >15% for an APAC / EM

transaction

Regional and Group expertise to

complete due diligence

ARIS ARAVANIS MD GREECE & BALKANS

Joined the

Group in 1991

Multi industry

finance

experience

Distribution / VIR is a highly efficient route to market

Area Dealers Outlets

Athens 9 12

Salonica 1 2

Rest Mainland 18 22

Islands 7 8

Total 35 44

• Owned (30% vehicle share)

– Athens: 2 Toyota 3S outlets, 1 Lexus showroom

– Salonica: 2 Toyota 3S outlets

• Authorized Repairers: 38

Strategic direction: “Fewer, Bigger, Better”

In the past decade, Toyota Hellas’ Dealers have remained strong and established an undisputed leading position in the Greek Market

Fewer and Stronger Dealers: from 77 in 2000 to 35 in 2013

Consistent high scores

in all Dealer

Relationship Surveys

(DRS) conducted by

Toyota Europe

77

34 35

0

20

40

60

80

100

2000 2007 2013

Renewing the Network in Greece

• New installations (60%) and extensive renovation (40%) of older facilities

• Total investment of €100m

• Excellent visibility, accessibility and competition density

The evolution of sales for the Network

Rightsizing of network led to a sustainable sales volume per Dealer

2007 Vs 2000

+125% Sales per Dealer

Sales per Dealer

77

32,042

416

34

31,869

937

35

7,141

204

2000 2007 2013

Dealer Sales Sales per Dealer

Managing the downturn in Greece

Early detection of the Greek market’s

sharp declining trend led to a series of

measures and actions aiming to:

• Fortify Dealers against new conditions,

• Improve their competitiveness and

elevate further the quality of services

offered to customer

Strong Financial status

Lean and Agile

organisational structure

Operational Excellence

Strong control of the financials

• Liquidity support

• Enhanced credit control

• Rigorous financial monitoring:

– Yearly Budget and Business Plan per Dealer

• Expanded revenue opportunities:

– Significant vehicle insurance income

– Focus on more profitable models and

increase consumption in Aftersales

Strong

Financial

status

Lean and

Agile

organisational

structure

• Reduction of

secondary outlets

• Headcount

rightsizing

• Business roles’

enrichment -

Multitasking

Maintaining operational excellence

• Unwavering focus on front-line effectiveness:

– Enhanced role of Field Force Sales Managers

– Continuous support & guidance to network sales force

– Advanced Training

• Introduction of Inchcape Advantage +, in order to enhance retail processes and

intensify field force support

• Benchmarking through KPIs

• Customer Satisfaction Survey in both Sales and After Sales

Operational

Excellence

Dealer performance vs. competition

Defaults remained remarkably low despite the fact that in the sector 39% of

outlets have shut-down and employment decreased by 53%

The Toyota Hellas Dealer Network demonstrated excellent

resilience during the period of crisis 2008-2013.

Stronger network…stronger share in Greece

Toyota Hellas alongside

our strong dealer

network has managed

to increase market

share during the

downturn (2008-2012)

Ready to seize the

recovery in the market

28,624

19,064

7,181

9.7%

11.3% 11.6%

8.5%

9.0%

9.5%

10.0%

10.5%

11.0%

11.5%

12.0%

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

2005 - 2007 2008-2012 2013

Annual Average Volume Market Share

The Greek Economy is stabilising and is ready to grow 2014 onwards

Q1 2014: Greek car market is up 19% YoY

Greek automotive market recovery since H2 2013

293 291 304 289

235

152

104

62 62 68

0

50

100

150

200

250

300

350

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E

Car Market Evolution

Ageing of the Car Parc to fuel the replacement cycle

23.8% 23.0% 19.6% 16.0%

28.1% 28.6% 27.4% 27.6%

14.6% 19.8% 22.0% 23.5%

33.4% 28.6% 30.9% 32.8%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2008 2010 2011 2012

> 15 years

10-15 years

5-10 years

< 5 years

4.9m units 5.4m units Size of Car Parc

Average age: 10yrs Average age: 13 yrs

Inchcape in pole position in Greece

Improved

competitive

position

Efficient

and highly

competitive

processes

Well organised

and highly

professional

network

Toyota & Lexus:

Strong Brands

and models

Customer

1st Strategy