March 16, 2006 Jay Kutchins RCMP

Outline Position Position Company Overview Company Overview Macroeconomic Factors Macroeconomic Factors Competition Competition Financial Figures Financial Figures How Copart Makes Money How Copart Makes Money VB 2 VB 2 Value-Added Services Value-Added Services Porter’s Five Forces Porter’s Five Forces Excel! Excel! Sensitivity Analysis Sensitivity Analysis Recommendation Recommendation

RCMP’s Position Bought 1000 shares on 2/28/03 at $7.82 per share Bought 1000 shares on 2/28/03 at $7.82 per share Currently (as of 3/16/06, 7:30PM) at $26.82 Currently (as of 3/16/06, 7:30PM) at $26.82 Represents more than 9.2% of portfolio based on market value Represents more than 9.2% of portfolio based on market value Up about 343% since purchase for a gain of about $19,010 Up about 343% since purchase for a gain of about $19,010 Consistently one of RCMP’s top performers Consistently one of RCMP’s top performers

Company Overview Roll-up: buys smaller companies that have the same or similar enough operations Roll-up: buys smaller companies that have the same or similar enough operations Car accidentTemporary storageInspected by insurance company Cost of Repairs < FMV-Salvage: pay for repairs Cost of Repairs > FMV-Salvage: car deemed total loss Sell car to salvage vehicle sales company Settle with the insured Salvage vehicle sales company picks up the car Storage until documents are passed from car owner and car is cleared by the DMV days later the DMV gives documentation to salvage vehicle sales company and the car is ready to be sold A B

Company Overview Factors the vehicle suppliers may consider when selecting a salvage vehicle sales company include Factors the vehicle suppliers may consider when selecting a salvage vehicle sales company include anticipated percentage return on salvage; anticipated percentage return on salvage; the services provided by the salvage vehicle sales company and the degree to which such services reduce administrative costs and expenses; the services provided by the salvage vehicle sales company and the degree to which such services reduce administrative costs and expenses; the price the salvage vehicle sales company charges for its services; the price the salvage vehicle sales company charges for its services; national coverage and ability to respond on a national scale; and national coverage and ability to respond on a national scale; and the ability to generate custom seller reports the ability to generate custom seller reports

Macroeconomic Factors Weather Weather Poor weather usually means more accidents, which can mean more vehicles for Copart to sell Poor weather usually means more accidents, which can mean more vehicles for Copart to sell Fuel prices Fuel prices Higher fuel prices may lead to fewer miles being driven and thus fewer accidents Higher fuel prices may lead to fewer miles being driven and thus fewer accidents Auto accidents Auto accidents If people get into fewer or less severe accidents Copart may have less inventory to auction If people get into fewer or less severe accidents Copart may have less inventory to auction International Environment International Environment More variables, less specific knowledge and experience More variables, less specific knowledge and experience

Competition Vehicle auctioneers: Vehicle auctioneers: Auction Broadcast Company: Could not locate at all Auction Broadcast Company: Could not locate at all ADESA (KAR): 53 used vehicle and 36 salvage auction sites; Automotive Finance Corporation (AFC), a wholly owned subsidiary by ADESA, provides financing, auctions done on site ADESA (KAR): 53 used vehicle and 36 salvage auction sites; Automotive Finance Corporation (AFC), a wholly owned subsidiary by ADESA, provides financing, auctions done on site SADISCO: Online and traditional auctions, 25 locations only in the Southeast, incredibly confusing website SADISCO: Online and traditional auctions, 25 locations only in the Southeast, incredibly confusing website Insurance Auto Auction (IAAI): Offers online and traditional auctions, 75 locations, US broken down into 5 geographic areas Insurance Auto Auction (IAAI): Offers online and traditional auctions, 75 locations, US broken down into 5 geographic areas Manheim Auctions: Private, 135 locations internationally, appears to be premier company in the industry worldwide Manheim Auctions: Private, 135 locations internationally, appears to be premier company in the industry worldwide Dismantlers: Dismantlers: Greenleaf: 23 locations, odd distribution throughout US (NV, AZ, TX, IL, MI, OH, MA, VA, NC, GA, FL); “recycling” and “environment” Greenleaf: 23 locations, odd distribution throughout US (NV, AZ, TX, IL, MI, OH, MA, VA, NC, GA, FL); “recycling” and “environment” LKQ Corporation (LKQX): 38 sales and processing and 12 distribution centers, primarily, but not exclusively, use auctions LKQ Corporation (LKQX): 38 sales and processing and 12 distribution centers, primarily, but not exclusively, use auctions

Financial Figures CPRTKARIndustry Current price $26.71$ week range $ $ Market Cap $2.42B$2.27B$961.66M Trailing P/E Forward P/E Profit margin 17.68%13.17%- Operating margin 31.97%23.47%3.30% Return on Assets 12.47%7.37%- Return on Equity 15.10%12.15%-

VB 2 Virtual Bidding Second Generation Virtual Bidding Second Generation Copart’s pride and joy of fiscal 2004 Copart’s pride and joy of fiscal 2004 Completely eliminated live auctions, which resulted in: Completely eliminated live auctions, which resulted in: “Higher returns on vehicles for sellers “Higher returns on vehicles for sellers “Growth in the out-of-state and out-of-country sales “Growth in the out-of-state and out-of-country sales “Increased net income” -Copart Annual Report “Increased net income” -Copart Annual Report

VB 2 VB 2 BID4U VB 2 BID4U You enter in the maximum amount you are willing to pay, and bidding will be done automatically by the minimum increment allowed until your maximum amount You enter in the maximum amount you are willing to pay, and bidding will be done automatically by the minimum increment allowed until your maximum amount Maximum amount is completely confidential, Copart associates cannot even see it Maximum amount is completely confidential, Copart associates cannot even see it

VB 2 Technology has been in use for just over a year Technology has been in use for just over a year Transition was even smoother than expected Transition was even smoother than expected No significant problems at all and only a few minor occurrences No significant problems at all and only a few minor occurrences “ It has also improved the efficiency of our operations. For fiscal 2005, sales of vehicles to buyers outside the state where the vehicle is located accounted for 46% of total vehicles sold; 25% of salvage vehicles were sold to out of state buyers and 21% were sold to buyers out of country, based on registration.” Annual Report “ It has also improved the efficiency of our operations. For fiscal 2005, sales of vehicles to buyers outside the state where the vehicle is located accounted for 46% of total vehicles sold; 25% of salvage vehicles were sold to out of state buyers and 21% were sold to buyers out of country, based on registration.” Annual Report

Value-Added Services “Internet bidding, Internet proxy bidding and virtual sales powered by VB 2, which enhance the competitive bidding process; “Internet bidding, Internet proxy bidding and virtual sales powered by VB 2, which enhance the competitive bidding process; on-line payment capabilities via our ePay product; on-line payment capabilities via our ePay product; notifications to potential buyers of salvage vehicles that match desired characteristics; notifications to potential buyers of salvage vehicles that match desired characteristics; automatic outbid notification by phone through VB 2 voice info; automatic outbid notification by phone through VB 2 voice info; sophisticated vehicle processing at storage sites, including ten-view digital imaging of each vehicle and the scanning of each vehicle’s title and other significant documents such as body shop invoices, all of which are available from us through the Internet; sophisticated vehicle processing at storage sites, including ten-view digital imaging of each vehicle and the scanning of each vehicle’s title and other significant documents such as body shop invoices, all of which are available from us through the Internet; CoPartfinder, our Internet-based used vehicle parts locator that provides vehicle dismantlers with greater resale opportunities for their salvage purchases; and CoPartfinder, our Internet-based used vehicle parts locator that provides vehicle dismantlers with greater resale opportunities for their salvage purchases; and Offsite sales, which allow vehicle suppliers to sell any vehicle, boat, or heavy equipment without transporting it to one of our facilities.” Annual Report Offsite sales, which allow vehicle suppliers to sell any vehicle, boat, or heavy equipment without transporting it to one of our facilities.” Annual Report

Porter’s Five Forces THREAT OF NEW ENTRANTS: LOW; entry difficult and costly and face veteran competition THREAT OF NEW ENTRANTS: LOW; entry difficult and costly and face veteran competition THREAT OF SUBSTITUTES: LOW; there are alternatives, but the industry exists because it is most often the best option THREAT OF SUBSTITUTES: LOW; there are alternatives, but the industry exists because it is most often the best option BARGAINING POWER OF BUYERS: LOW; buyers compete among themselves BARGAINING POWER OF BUYERS: LOW; buyers compete among themselves BARGAINING POWER OF SUPPLIERS: HIGH; limited number of suppliers, limited amount of potential inventory BARGAINING POWER OF SUPPLIERS: HIGH; limited number of suppliers, limited amount of potential inventory INDUSTRY RIVARLY: HIGH; competition from vehicle sales and auction companies and dismantlers, local, regional, national supply agreements with vehicle suppliers, competition in acquisition of salvage vehicle sales facilities INDUSTRY RIVARLY: HIGH; competition from vehicle sales and auction companies and dismantlers, local, regional, national supply agreements with vehicle suppliers, competition in acquisition of salvage vehicle sales facilities

Financial Analysis Excel time…yay! Excel time…yay!

Sensitivity Analysis Terminal Growth Rate 2%3%4%5%6%7%8% WACC 11%$30.06$32.88$36.49$41.32$48.08$58.21$ %$26.91$29.08$31.80$35.29$39.95$46.47$ %$24.33$26.05$28.15$30.77$34.14$38.63$ %$22.62$23.79$25.49$27.56$30.16$33.52$ %$22.19$23.57$25.22$27.47$29.78$33.03$ %$20.37$21.50$22.83$24.43$26.38$28.83$ %$18.82$19.75$20.84$22.13$23.67$25.56$27.92

Recommendation Final recommendation: HOLD the entire position of 1000 shares of Copart Final recommendation: HOLD the entire position of 1000 shares of Copart Great company in an industry it does very well in, despite it being unattractive and unglamorous Great company in an industry it does very well in, despite it being unattractive and unglamorous Still have not fully realized the affects of VB 2, which should be worth sticking around for Still have not fully realized the affects of VB 2, which should be worth sticking around for Although analysis indicates the stock is still undervalued, the exposure to the company/industry is already considerable Although analysis indicates the stock is still undervalued, the exposure to the company/industry is already considerable Questions? Questions?