1 16th May 2013 Presentation to: ASE Financial Conference May 16, 2013 What we needed from our Finance community to run car retail in Central Europe Tim Tozer, CEO

2 16 th May 2013  Management information chasing managers – not the other way around.  To see the business in detail through the balance sheet and KPI’s – allowing management to direct their focus.  A “measure it to move it” mantra.  Finance control fulfilling and interpreting their role to be: –Guardians of the balance sheet. –Commercially involved challengers to the operational activities. –Financial controllers of risk management. What we “high level” needed from our Finance community

3 16 th May 2013  104 year history in the automotive business  Privately owned - Lauret family 100% shareholder  Businesses in 7 countries: –The Netherlands –Belgium –Czech Republic –Slovakia –Poland –Hungary –Slovenia  € 1.1 billion turnover (60% Benelux, 40% Central Europe)  1,650 employees Overview of AutoBinck

4 16 th May 2013 Mazda from  Distribution in The Netherlands and then Czechoslovakia (1991)  More than 655,000 Mazda’s sold in our 40 year relationship. Hyundai from 1999 – to date  Distribution in The Netherlands and Czech Republic and Slovakia (2000).  Factory take over of CZ and SK in 2008 (Hyundai factory set up), replaced by Slovenia and Hungary.  More than 250,000 Hyundai’s sold to date in our 13 year relationship. Other:  1996: acquisition of Business Lease NL, thereafter entering Czech Republic (1996), Slovakia (1998), Poland (2001) and Hungary (2003).  2000: acquisition of Brezan NL.  2004: Mitsubishi distribution in Czech Republic and Slovakia.  2005 on: retail growth into multi franchise then restructured in  2011: Jaguar Land Rover distribution in Hungary. Recent history

5 16 th May 2013 AutoBinck organisational structure Car Distribution 28,593 cars in 2012 Czech Republic Hungary Slovakia Slovenia The Netherlands Car Retail 16,110 cars in 2012 Czech Republic Hungary Slovakia Slovenia The Netherlands Financial Services 39,600 lease contracts and 5,400 financed units Czech Republic Hungary Poland Slovakia The Netherlands Parts & Accessories € 96.3 M sales in outlets Belgium The Netherlands

6 16 th May 2013 Figures Sales per Division Sales per Country Balance Sheet (Euro * 1,000,000) Total Sales 2011: € 1,051 million

7 16 th May 2013 The AutoBinck way  Commercial and entrepreneurial local management trusted to act in the best interest of the business, delivering mission and strategy.  Controlled through central funding and performance management of balance sheet, kpi’s and P&L.  Long term perspective.  Small HQ listening to the frontline, delivering action and energising the company.  Synergies between the operating divisions, a family feeling.

8 16th May 2013 Retail CountryNew carsUsed cars Total Netherlands9831,9402,923 Czech7,2412,3779,618 Slovakia ,373 Slovenia Hungary1, ,945 Total16,110 Distribution CountryBrandVolume *Market share NetherlandsHyundai23,5404.6% CzechMitsubishi1,0150.7% CzechInfiniti630.07% SlovakiaMitsubishi4160.7% SloveniaHyundai2,2734.7% HungaryHyundai1,2342.3% HungaryJaguar/LR1150.2% Total28,593 AutoBinck: 2012 Distribution and Retail volume

9 16th May 2013 Central Europe total industry volumes Country Czech Republic174,456173,997 Slovakia59,70069,195 Hungary171,66153,008 Slovenia68,71950,091 Total474,536346,291

10 16th May 2013  Our retail business existed historically to underpin brands we distributed and was run by wholesalers.  In consequence we built palaces, had no detailed idea how to manage and control a customer service business, lost significant amounts of money and destroyed much shareholder value.  The only available, reliable management information was the monthly P&L and balance sheet (at high level) – all else came ad hoc and heavily filtered by local management.  If we were to continue with retail we needed a strong financial control based platform. Our retail past

11 16th May 2013 An “Auto Palace”

12 16 th May 2013  General pressure upon financeability  choices have to be made.  Resources will be allocated to areas of core competence which can deliver the highest returns.  “Stick to the knitting”.  Within this context we had to decide if car retail really was a core competence for us, justifying funding on the basis of attractive ROE’s?  Yes, but only with: –Retail management competence. –A very robust strategy and business plan. –A new risk managed world under control. Our future

13 16 th May 2013  Decrease dependency upon manufacturers: –Recognising used cars as a business within a business. –Improving after sales activity and sale of ancillary products. –Optimise brand portfolio (one site per brand, unless very “retail”).  Minimise capital employed.  Optimise market penetration for brands represented.  Adopt an “AutoBinck Way” for retail: –Operational consistency across all sites. –Service first. –Share best practice - visible through 24 kpi’s.  Deliver 15% ROE on 30% normalised solvency. Retail Strategy

14 16 th May 2013 Retail strategy - how  Manage each business through the balance sheet and KPI’s into the P&L with daily operating controls for all activities.  Focus intensively upon used cars ROI - sweat purchasing and sales processes and stock turn.  Focus intensively on after sales: –Parts stock turn – make more by losing less –CRM – customer retention builds after sales –Service sales advisors (not receptionists)  Sales department process, productivity and team development.  Internal communication - vision and values, results, recognition.

15 16 th May 2013 Retail brands represented 2011 Czech Republic - Prague (4 sites) - Brno Slovakia - Bratislava (2 sites) Hungary - Budapest Slovenia - Ljubljana The Netherlands - Rotterdam

16 16 th May 2013 Retail brands represented 2014 Czech Republic - Prague (3 sites) - Brno Slovakia - Bratislava Hungary - Budapest Slovenia - Ljubljana The Netherlands - Rotterdam 2 TBA

17 16 th May 2013  Management information chasing managers – not the other way around.  To see the business in detail through the balance sheet and KPI’s – allowing management to direct their focus.  A “measure it to move it” mantra.  Fulfilling and interpreting their role to be: –Guardians of the balance sheet. –Commercially involved challengers to the operational activities. –Financial controllers of risk management across the complete business. What we needed from our Finance community

18 16 th May 2013  Interpret role at high level to be: – “the guardian of the balance sheet” – a commercially involved “challenger” to the operational activities – financial “controller” in the sense of risk management of the complete business.  An active involvement with MD and site managers, pro-actively assisting them in achieving their goals.  Timely and accurate reporting of DOC’s, KPI’s and management accounts with high level interpretation to the Board.  Assisting line management with interpreting DOC’s, KPI’s and management accounts, determining appropriate management follow up and corrective actions.  Focus line management on the balance sheet in order to reduce working capital, acting as the catalyst for them to take appropriate corrective management action.  Treasury and cash management.  Overseeing and managing all regulatory and statutory obligations.  Adherence to AutoBinck accounting manual.  Resolving any issues within the annual auditors management letter and AutoBinck internal audit. Retail Finance Director Job Description

19 16 th May 2013 Example – management reporting Auto Palace Hungary Our Jaguar Land Rover Budapest flagship retailer

20 16 th May 2013 Example – management reporting Auto Palace Hungary

21 16 th May 2013 Example – management reporting Auto Palace Hungary

22 16 th May 2013 Auto Palace Hungary* - Balance sheet * 2 sites, 1 legal entity

23 16 th May 2013 Auto Palace Hungary - Balance sheet ageing analysis Provision policy

24 16 th May 2013 Budapest Hyundai & Opel - P&L Summary and absorption

25 16 th May 2013 Budapest Hyundai & Opel - KPI’s Q * KPI's heavily dependent upon quarterly manufacturer bonus.

26 16 th May 2013 Budapest Hyundai & Opel - KPI’s Q1 2013

27 16 th May 2013 Waterfall chart – direct profit variances vs MAP

28 16 th May Day forecast April 2013

29 16 th May 2013  We have the information now to direct management attention.  We have a team of retailers running the businesses to UK criteria.  We have used our financial strength, this management team and the BER June 1 st moment to radically revisit our franchise/site portfolio.  We now see 2013 as a mid point “year of transition” to 2015 ROE of 10% minimum, on the platform of a business which: – Trebles its used car business. – Puts service first. – Optimises sales of a more balanced new car franchise portfolio. – Works from a much smaller balance sheet and one less site (Prague).  Our finance community are at the heart of the business, ensuring standards of commercial robustness, control and management of risk that we could only dream of two years ago. Summary