Eurotax - Solutions for Car Finance - ALB

Summary1.EurotaxGlass’s – company presentation;2.Products list;3.Products presentation and data that we use for each product;

Company EurotaxGlass’sWith strong rate of 90% brand recognition in Europe, we are actingunder the following 3 names: EurotaxGlass‘s , Glass‘s InformationServices and Schwacke, generally renowned for their neutral,independent and objective character to reflect auto business inEurope.

EurotaxGlass‘s HoldingGlass‘s InformationServicesSCHWACKEEurotaxPoland - Head officeCluster CEEEurotaxGlass‘s Romania(Romania & Moldova)EurotaxGlass´s InternationalHead Quater in Switzerland

…To Provide a Single Source with a Consistent Data Structure22/11/2011

Company EurotaxGlass’sEurotaxGlass’s is the leader in data delivery, software solutions and market intelligence forautomotive industry in EuropeEurotaxGlass's main business lines are: new car data delivery, residual values and forecast anddamage calculation.Consequently, our business is not just statistics but we offer: solution towards assets risk evaluation & forecast both for lessors, lessees and insurancecompanies. Solution towards fiscal risk management by offering both the lessor and the lessee the“FAIR MARKET VALUE” needed for:1. Accounting registration2. Constituting the NBR risk provisions

EurotaxGlass’s productsOur products are based on:• A clear common structure that allows us to compare information onEuropean level;• Based on a unique and complex mathematical algorithm we are ableto: Identify cars and their specifications (commercial and technical); Calculate RV; Forecast RV; Calculate repairment costs.

EurotaxGlass’s New Car / Raw DataData that we collect:- Basic information- Standard equipment;- Optional equipment with ordering codes;- Packages and formulas.

EurotaxGlass’s Residual ValuesData that we collect:-Real transaction data collected from franchise networks, independentused car dealers and leasing remarketing activities: make, model, type,platform, first registration, millage, trade in price, trade in date, sales price,sales date- New car sales type / month. (existing data since 01.01.2000);- Directly imported cars (grey market), same type and age;-More than 50,000 internet offers collected every month.

BASEL II – risk managementIn the current market, accurate knowledge of the gap between market valueand carrying amount of the asset financed is the decision to continue andrestructuring or termination of a contract immediately in order to minimizelosses. We are able to provide easily access to such information eitherthrough software applications, through dedicated service portfolioassessment or evaluation services for specific physical property. Theexpertise used in determining these values comes from independent andobjective analysis of the Romanian market exclusively.

Motivation: Car finance market with new challenges to faceBasel II requires or/and regular internal company rules :• Assessment of security value stability before every credit allocation• Repetitive assessment of securities portfolio• Extraordinary assessment in case of negative information• In the realisation of securities, internal and external experts must be involved• Implementation of early risk detection systems (at borrower side)• Portfolio valuation in case of merger or salesETG sees a clearly increasing demand for neutral valuation expertisein the car finance sector

As a Consequence, Car Finance Companies need morevaluation informationFor credit decision:• What is the current value of the car• What is the future value of the car• What is the value depreciation over timeIdeally, this information will be seamless included in the credit decision processwith impact on decision (yes or no), rating and interest ratesFor the portfolio management• What is the current value of the car versus the open finance balance• What is the future value of the car versus the open finance balanceIdeally this information is included in the credit portfolio management process anddelivered on regular basis for the total portfolio.

EurotaxGlass `s proposal: Evaluation of cars as securitiesduring the credit decision processDescription:• Based on Make, Model, Type, Options, Mileage and Age, EurotaxGlass`s candetermine current and future residual values• Can be used either during credit decision process but also for supporting theproduct development processesBenefits• Precise knowledge of actual and future residual value of car allows riskidentification and management• Clear picture of value of securities and impact on credit rating already duringcredit decision

Example: Ideal integration of ETG valuation information incredit decision processConnecting car dealers to the systems of the car finance BankDealers1.FinancerequestPoint OfSalesCarFinanceBank3. Handover carto be financed5. Credit decision/interest rateBO systemsCar Finance BankDecisionengine2. Identify Carwith Eurotaxinformation4. Identify valueof Carwith Eurotax

In addition, Forecast will support any evaluation of future RV`sETG Forecast – Application to forecast single cars and complete fleetsBasic product description• Forecast towards any desired point in the future• Including mileage, age, options, desirability…• Customizations possible as wellCustomer Benefits• Detailed forecast as benchmark information• Monthly updated information based on full scope of ETG marketobservation„A neutral, fair market valueindicator“

EurotaxForecast

EurotaxGlass´s – auto information equivalentsorin.iacob@eurotax.ro