BERTRAND MALLET - Inchcape

Market OverviewRomaniaDistributionRetailExclusive importer for Toyota and Lexus1 Inchcape owned 3S facility including 2 showrooms (Toyota, Lexus) inBucharestMarket share 2.5%NetworkStaffBulgariaDistributionRetailLeading retail network covering all the country with 20 3S facilities64 in Distribution, 76 in RetailExclusive importer for Toyota and Lexus2 Inchcape owned 3S facility covering Sofia areaMarket share Market leadership since 2007 (10% market share in 2010)NetworkStaffLeading retail network in the country with 12 3S facilities35 in Distribution, 182 in RetailFYROM (Macedonia)DistributionExclusive importer for Toyota and LexusRetailMarket shareNetworkStaff1 Inchcape operated 3S facility in Skopje6% on total market2 3S dealerships and 4 secondary outlets33 in RetailInchcape has established a strong presence in the Balkans since the mid-90s, with bothDistribution and Retail activities

Romania Commercial OverviewLarge countrywith highpopulation21.4m people, 240,000sq kmEmergingeconomyStrong economic growth since early 2000s with GDP percapita CAGR of 30.1% 2003 – 2007 but economycontracted in 2009 by 20.1%. GDP in local currencydeclined by 3.2% in 2009Strong austeritymeasures takenSalary cut in public sector and social paymentsLay-offs in public sector.Increase in VAT from 19% to 24%Expense of governmental institutions cut2003-07 2008-09 2010-15Continuedsupport from IMFAgreement for new 24-month precautionary stand-byarrangement (Euro 3.6bn)GDP growth(CAGR)30.1% (20.1)% 9.5%RecoveryexpectedFuture growthenginesBroadly flat in 2011 with recovery expected in 2012Economic growth to be fuelled by infrastructuredevelopment (with support of EU funds), direct foreigninvestments, strong industrial output and privateconsumptionPopulation(CAGR)(0.2)% (0.2)% (0.2)%Inflation 14.1% -6.5% 6.3%-4.7% 7.8%-2.9%Romania has been impacted by the downturn but is expected to recover graduallySource: IMF

Romania Automotive OverviewLarge country with highpopulationLow car penetrationImprovement of roadinfrastructureOne of the oldest car parcs inEurope21.4m people, 240,000sq km201 passenger cars per 1000 inhabitants (vs EU27average of 478)With the support of EU structural funds, the roadnetwork is undergoing significant improvementsincluding the construction of motorways42% of car parc more than 10 years old17% of car parc more than 20 years oldMarket still far from its peakof 2008High quality dealer networkTIV reached 352k in 2007In 2010, TIV fell to 116kToyota Romania network ranked:#2 in new car buyer survey#1 in aftersales surveyFor both structural and cyclical reasons, the Romanian automotive market should gradually recover over the next 5 yearsSource: Global Insight/IMF/JD Power

Romania - Total Industry Volume 2007 - 2015000’ vehiclesSource: Global InsightTIV CAGR 2010 – 2015 +17.1%

Bulgaria Commercial OverviewSmaller countrywith low density ofthe populationEmergingeconomy7.5m people, 110,000sq km, Almost half the sizeof Romania and a third of the populationLow population density (68 inhabitants/sq km,similar to Ireland)Very dynamic growth throughout the decade,but economy shrank by 6.3% in 2009Low budget deficitand public debtRecoveryexpectedFuture growthenginesBudget deficit of 3.9% in 2010, with public debtat 16% of GDPBroadly flat in 2011 with recovery expected in2012Economic growth to be fuelled by infrastructuredevelopment (with support of EU funds), directforeign investments, tourism and privateconsumptionGDP growth(CAGR)Population(CAGR)2003-07 2008-09 2010-1519.5% (6.3)% 6.9%(0.5)% (0.6)% (0.5)%Inflation 5.6% - 11.5% 7.1% - 1.6% 2.7% - 3%Bulgarian economy less impacted than Romania. Gradual recovery expected in 2012Source: IMF

Bulgaria Automotive OverviewLow car penetrationImprovement of roadinfrastructureOne of the oldest carparcs in EuropeMarket still far from itspeak of 2008Toyota position as clearmarket leaderHigh quality dealernetwork351 passenger cars per 1000 inhabitants (vs EU27 averageof 478)As in Romania and with the support of EU structural funds,the road network is undergoing significant improvements56% of car parc more than 10 years old27% of car parc more than 20 years oldAverage – 15 years oldTIV reached 57k in 2008In 2010, TIV fell to 19kToyota has the highest consideration and preference, as wellas the best quality perception in the countryAll 3S facilities comply with the latest standards; most ofthem were completed in the last 2 yearsVery well trained and motivatedsales staffThe Bulgarian automotive market should see good growth over the coming years, with a clear advantage forToyota as the market leaderSource: Global Insight/JD Power

Bulgaria - Total Industry Volume 2008 - 2015000’ vehiclesSource: Global InsightTIV CAGR 2010 – 2015 +20.4%

2011 New Model LaunchesToyotaVerso SYarisAvensisNew FR86 SportsAurisLexus CT200hGood pipeline of new products

Our top 5 PrioritiesGrowingmarketshareGrowingaftersalesImprovingmarginControllingworkingcapitalSelectivecapitalexpenditure

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyGrowingmarketshareIncrease brand power through innovativemarketing campaigns, including local content toimprove the reach and empathy for the brandFully leverage new model launches, with acommunication focus on qualityImprove value for money perception through 5year warranty programTrafficLeads/TrafficTest drives/TrafficOrder/ TrafficGrowingaftersalesImprove aftersales performance throughfocused actions aimed at improving customerretention, including post warranty periodSpecific offers for fleet customersInnovate in accessories range to increaseproduct attractivenessPlatinum warranty (5 year extended warranty)for cars sold before January 2010EnquiriesBooking/EnquiryIntakes/Enquiry

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyOptimise price positioning through careful analysis of price elasticity by segmentand by modelImprovingmarginSteer communication towards monthly costs rather than pure price / discount,focusing on total cost of ownership including F&IAllocate a disproportionate marketing spend to higher margin modelsImprove accessory sales through better understanding of customer needs duringthe car sales processControllingworkingcapitalClosely monitor stock level to align with market volume expectationsFully leverage Balkans common stock approach to further reduce inventorySelectivecapitalexpenditureState of the Art facilities – limited maintenance capex requirement

Inchcape BalkansThe Balkans region, after almost a decade of robust growth, has been impacted by thedownturnAfter two very difficult years, we now expect the industry to gradually recover as of 2011The Balkans markets also represent a structural opportunity linked to the age of the carparc, one of the oldest in the EUWe have developed one of the strongest networks, giving us a strong regional footholdand a fantastic springboard for future growthOur brands have a strong image in these countries, especially in Bulgaria where ourmarket leadership has been reaffirmedThe Balkans were profitable in 2010 despite the significant impact of the downturn andshould benefit from a strong operational leverage during the recovery cycle

Ethiopian Market

Market OverviewEthiopiaDistribution Automotive: Exclusive importer for Toyota andDaihatsu : Exclusive importer for SuzukiConstruction: Exclusive importer for Komatsu,Hamm, VogeleAddis AbabaVertically IntegratedRetailNew vehicle marketshareService andbodyshopParts1 main 3S facility covering Addis Ababa3 3S branches covering the major regions1 new 3S branch (opening in 2011) in Addiscovering Construction equipmentStrong market leadership position with Toyota(automotive)Large service facilities in our branches, inparticular in Addis where the workshop countsclose to 100 work baysOver 21,000 cars serviced in 2010 through our 4branchesStrong parts business, supplying almost two thirdsof the country’s Toyota car parc with a service rateof 95%Inchcape has been in Ethiopia since 1968 through its local subsidiary, Moenco. Today, Moenco is the largestautomotive company in the country

Ethiopia Commercial OverviewA very largecountry with ahigh population2 nd largest population in Africa (85 million)Area of 1,100,000 sq km (size of France andSpain combined)Largest economyin Eastern AfricaGDP at US$ 29.7bnSupported by strong agriculture and coffeeexportsFast growingeconomyEconomy growing by ~ 250% since 2003,making Ethiopia the fastest growing non-oildependent African country2003-07 2008-09 2010-15Growing urbanmiddle-classCurrent annual growth is estimated above 4.3%(1/2 million per year)GDP growth(CAGR)22.9% 21.0% 9.0%Political anddiplomatic hubAddis Ababa is the headquarters of the AfricanUnion, the Nile Basin Commission, the PanAfrican Chamber of Commerce (PACCI),UNECA, the African Standby Force (ASF)Population(CAGR)Inflation2.6% 2.6% 2.4%7.5%(2007)8.0%-9.0% 8.8%-9.0%Ethiopia is a fast growing economy, with a high potential for future developmentSource: IMF

Ethiopia Automotive OverviewLow car penetration and old carparcNew car market estimated at less than 4,000 unitsCar penetration among the lowest in the worldAverage age of the car parc is estimated at 15 yearsHigh market share for Toyota Clear leadership position for Toyota (market share at around 50%)Improvement of roadinfrastructureSignificant investments in road infrastructure with support fromWorld Bank and various development agencies (network increasedfrom under 23,500 km of roads in 1995 to over 37,000 km in 2005)Market still geared towards salesto Government, NGOs,companies and diplomatsEmergence of middle class andfirst time buyersLarge and aged Toyota car parcwith high demand for service andpartsSales to individuals represent less than 10% of Moenco salesMarket geared towards large SUVs, 4x4s and pick-up vehiclesStill a small segment of the market, but Moenco well-positioned totake advantage of market growth thanks to its strong image andaccess to range of small vehicles from ToyotaToyota car parc (~100,000 cars), by far the largest in the country,includes ageing cars with strong demand for quality servicing andbody repair, as well as high volumes of genuine Toyota spare partsThe emergence of a middle class and improvement of the infrastructure will provide strong growth opportunitiesSource:: Economist Intelligence Unit/Inchcape Estimates

Our top 5 PrioritiesGrowingmarketshareGrowingaftersalesImprovingmarginControllingworkingcapitalSelectivecapitalexpenditure

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyGrowingmarketshareIntroduction of affordable Toyota models toleverage the emergence of a middle-class /first time buyers (Avanza)Seize opportunities on infrastructuredevelopment and focus on tendersTrafficLeads/TrafficTest drives/TrafficOrder/ TrafficGrowingaftersalesExpand network to increase presence inkey regionsFurther focus on service efficiency to takefull advantage of high volume of serviceand bodyshopIncrease sales through Visual HealthCheck (VHC)EnquiriesBooking/EnquiryIntakes/Enquiry

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyImprovingmarginStrengthen upselling capabilities at service advisor levelFurther improve productivity through improved work shoploading, utilize up to date technical tools and equipmentControllingworkingcapitalIntroduce notification of Parts & Service Customers by SMS toensure repaired vehicles or ordered parts are picked uprapidly by customersSelectivecapitalexpenditureState-of-the-Art facilities. Limited investment required

Inchcape EthiopiaInchcape Ethiopia is a strong player in Africa, thanks to a high market share,good parts sales and an active service and bodyshop activityInchcape is well positioned to take advantage of the economic growth, thanksto its market leadership positionMoreover, the emergence of a new middle class should provide the opportunityto increase new car volumes, further leveraging Toyota’s broad range ofmodels

South American Market

Market OverviewSouth AmericaChileDistributionVerticallyIntegrated RetailMarket shareExclusive importer for BMW cars and motorcyclesStrong presence in Santiago and its region with 11Inchcape operated sites (including motorcycles)~30% of premium market (market leader)Network Expansion of 3 rd party network in the regions to reach 5independent dealers by end of 2011Staff 226PeruDistributionRetailMarket shareExclusive importer for BMW cars1 Inchcape owned 3S facility in the centre of Lima~35% of premium market (market leader)Staff 61Inchcape has been present in South America since the 1960s, with both Distribution and Retailactivities

Chile Commercial OverviewRich countryResilienteconomyRichest country in South America in terms of GDP percapitaEconomy driven by exports of natural resources,supported by sound economic policiesDownturn lasted only 1 year (2009)High growtheconomyGrowingpopulationLarge middleclassStrong growth from 2003 to 2007 (GDP per capita morethan doubled during the period)Fast recovery since the end of 2009Chile is projected to be among the highest growtheconomies in Latin AmericaAlthough the Chilean population is small (17.2m) incomparison with some of its neighbours, it is forecast togrow over the next 5 yearsChile has a sizeable and well established middle class(one of the highest average household incomes in theregion)GDP growth(CAGR)Population(CAGR)2003-07 2008-09 2010-1522.1% (5.7)% 6.6%1.3% 1.4% 1.1%Inflation 1.1%-7.8% 7.0%-(1.3)% 3.7%-3.0%Chile is one of the strongest economies in Latin AmericaSource: IMF

Chile Automotive OverviewGrowing TIVPremium segmentgrowing morerapidly than rest ofmarketStill an old car parcSince 2005, the TIV in Chile has grown by an average ofclose to 10% p.a., reaching over 270k new vehicles in2010Thanks to the increase of the average income and to thegrowth of a wealthy middle-class, the premium segmenthas grown by 158% vs. 33.9% for the market in generalfrom 2006 to 2010.Despite the high growth of the past few years, the averageage of the car parc is 8.5 years in ChileCar penetrationstill lowDespite having a higher GDP per capita than Argentinaand Brazil, Chile has a lower car penetration at only 102car per 1000 people vs 110 in Brazil and 140 in ArgentinaStrong BMW brandBMW has by far the strongest premium brand in ChileThanks to its growth and to the development of the premium segment, the Chilean marketrepresents a strong opportunity for InchcapeSource: JD Power/JP Morgan Cazenove/Global Insight

Chile - Total Industry Volume 2008 - 2015000’ vehiclesSource: Global InsightTIV CAGR 2010 – 2015 +4.1%

Peru Commercial OverviewHigh growtheconomyAvoidedrecessionGDP CAGR 2003-2007 was 15%.In 2009 GDP was flat and grew again in2010 by 20.4% YOYGrowth fuelledby exports and agrowing internalmarketHigh andgrowingpopulationEmerging middleclassHigh level of natural resources in Peru(mining, oil and gas), as well as strongagricultureIn addition, healthy development of privateconsumptionPopulation of almost 30m in 2010, forecastto grow rapidly over the next 5 yearsAfter a decade of high economic growth,Peru’s middle class is starting to develop,although mostly in LimaGDP growth(CAGR)Population(CAGR)2003-07 2008-09 2010-1515.0% 0.1% 8.1%1.7% 1.5% 1.5%Inflation 2.4% - 3.9% 6.76% - 0.2% 2.8% - 2%Peru is one of the most dynamic economies in South AmericaSource: IMF

Peru Automotive OverviewStrong growth of thecar marketPremium segmentgrowing more rapidlythan rest of marketLow sales inpremium segmentoutside of LimaA very old car parcLow car penetrationStrong BMW brandSince 2005, the car market in Peru has grown by 374%,reaching over 97k new vehicles (TIV) in 2010Thanks to the increase of the average income and to theemergence of a middle-class in Lima, the premium segmenthas grown by 134% vs 230% for the market in general from2006 to 2010Outside of the capital, the premium segment has not yet trulytaken off. However, future growth in the regions should providean additional boost to the Peruvian premium marketDespite the high growth of the past few years, the average ageof the car parc is 15 years in Peru (strong opportunity in therenewal market)In parallel with the increase of GDP per capita, we expect tosee strong opportunity in the first time buyer marketBMW is the clear premium market leader in PeruThe high levels of growth in the premium segment and the high potential for further expansion make thePeruvian market very attractive for InchcapeSource: Global Insight

Peru - Total Industry Volume 2008 - 2015000’ vehiclesSource: Global InsightTIV CAGR 2010 – 2015 +7.3%

Our top 5 PrioritiesGrowingmarketshareGrowingaftersalesImprovingmarginControllingworkingcapitalSelectivecapitalexpenditure

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyGrowingmarketshareIncrease presence and focus on entry-levelmodels in all model lines, providingcustomers for a “first time access” in thepremium segmentExpand countrywide network throughindependent dealers to establish presencein new regions / citiesLeverage new product launches, inparticular the new 1 seriesTrafficLeads/TrafficTest drives/TrafficOrder/ TrafficGrowingaftersalesImprove asset utilisation throughoptimisation of current processes withInchcape AdvantageExpand BMW Spa concept to increasecustomer loyalty, even after the warrantyperiodEnquiriesBooking/EnquiryIntakes/Enquiry

Operational focus on our top 5 priorities to deliver ourCustomer 1 st strategyImprovingmarginFocus on additional packages & products (accessories, F&I,pre-fixed packages)Increase workshop productivityAdjust retail incentive schemes linked to gross marginControllingworkingcapitalImproved used car stock turnReduce parts stock thanks to new DMS systemSelectivecapitalexpenditureExtending capacity in both Lima and Santiago to takeadvantage of opportunities from new products and a growingaftersales business

Inchcape South AmericaInchcape has established a strong leadership position in both Chile and Peruin the premium segment which is the highest growing and most profitablesegmentInchcape’s businesses in South America are expanding rapidly, leveraging thegrowth of the economy as well as the emergence of a sizeable middle-classThese countries hold further potential for growth for Inchcape, given ourmarket leadership in the premium segmentTo further strengthen our competitive position, we will extend our networkbeyond the capital cities, while building two new state-of-the-art BMW facilitiesin Santiago and Lima over the next 18 months