Presentation

Inchcape Investor Day 9 October 2006 André Lacroix Group Chief Executive The day ahead

2.30pm André Lacroix Group Chief Executive Part One - Where are we now? Distribution Overview Retail Overview Part Two – The way forward 3.15pm Barbara Richmond Group Finance Director 3.40pm Q&A 3.55pm Coffee Break 4.15pm Spencer Lock Managing Director, UK Retail John McConnell Chief Executive, Australia & New Zealand Dale Butcher Group Development Director 5.00pm Q&A & Conclusion

Drinks reception Investment case

• A unique business model with consistent financial track record • Margin enhancement through continuous business improvement • Diversity of earnings • Long standing relationships with high growth brand partners • Growth opportunities in both developed and developing markets • Strong cash flows to fund future acquisitions and investments

The leading international automotive distributor and retailer Historical five-year performance

Revenue (£bn) Operating Profit** (£m)

CAGR: 9.6% 4.5 4.1 3.8 3.4 CAGR: 19.1% 189 3.1 172

134 109 88

2001* 2002 2003 2004 2005 2001 2002 2003 2004 2005

* UK GAAP ** Before exceptional items part one

Where are we now? Unique business model

Distribution Retail

Developed countries Historical core Investment focus of Inchcape in last 5 years

Developing countries Bases for future growth established H1 2006 segmental results

Retail Distribution Volumes (‘000) 39 94 Sales (£m) 1,135 1,305 Trading margin (%) 2.5 7.0 Trading cash flow (£m) 51.2 142.4 ROIC (%)* 16.5 118.1 Number of sites 230 83

* Pre Lind acquisition Diversity of earnings

Retail – sales Distribution - sales

10% 17% 14% 17% 6% 4% 3%

18%

27%

12% 64% 8% Australia Belgium Greece Hong Kong Singapore UK Australia Belgium Greece UK Other Other Long-standing relationships

UK Australia Hong Kong UK UK UK 41 years 14 years 30 years 18 years 20 years 17 years Hong Kong Baltics Australia Chile 40 years 13 years 14 years 12 years Singapore Peru 39 years 8 years Belgium 25 years Greece 20 years Strong relationships with high growth brands Car industry global five Inchcape core partners** year* volume growth five year volume growth (CAGR%) (CAGR%) 4.2%

3.3%

* 2000-2006 ** Toyota/Lexus, Subaru, VW, Mercedes, BMW A very sound business model that provides major growth opportunities Organic Expansion Distribution Retail Distribution Retail

Industry consolidates towards bigger, Developed better retail countries LFL sales and profit growth Niche, emerging operations managed by well • Outstanding customer and mainstream brand opportunities financed and experience professional • Vehicles new and used operators • Finance and insurance Industry growth • Parts and services and Retail network • Operational excellence Developing development countries Strong and experienced leadership team 1 year service CEO Global general management Andre Lacroix FMCG & retail career

6 months service 15 years service Finance CFO Asia Pacific Sales & marketing Chemicals & Primarily automotive career manufacturing Barbara Richmond William Tsui

6 months service 8 years service Strategy & change Strategy Australia Finance & operations management Immo Rupf John McConnell management Consulting & finance career FMCG & automotive career

20 years service Europe 20 years service Strategy & business Business Dev’t Finance & general development Distribution Dale Butcher management FMCG & automotive Martin Taylor Automotive career

4 years service 7 years service Finance & Human Resources Human Resources UK Retail Operations management Retail, telecoms & Insurance & automotive automotive Nick Smith Spencer Lock career

29 years service 6 months service Group Company Company Secretary Europe Retail Multi-site auto retail Secretary & Legal Roy Williams George Ashford management Corporate, commercial & automotive Distribution overview Inchcape distribution advantages

• Deep involvement in brand development and product innovation • Geographic spread: developed and developing countries • Benefits from Vertical Retail Integration • Limited capital investment: highly cash generative Vertical retail integration benefits

• All distribution markets our strategy to operate direct retail – up to 30% market share in large markets – Can be higher in small markets • Provides valuable retail customer and dealer expertise to grow markets – Total system economics understanding: Distribution + Retail – Model policy and limited series launches – Pricing and positioning – Used cars, residual values, Finance &Insurance • Delivers high margins – Double margin: distribution + retail – Increased cost effectiveness – Integrated supply chain and inventory management Distribution unit economics

Australia Belgium Greece Hong Kong Singapore

Units (‘000) 36 28 25 12 38

Revenue (£m) 405 364 252 242 720

Operational margins (%) 6.6 3.6 6.6 11.7 8.7

Capital employed (£m) Fixed assets 8 4 8 17 14 Working capital (59) 25 (53) 18 42

ROIC (%) n/a 46 n/a 81 89

Capex (£m) 2 1 1 1 2

Source: 2005 FY Performance Growth opportunities in distribution

Organic Expansion Distribution Retail Distribution Retail

Developed countries UK, Europe • Market share Australia Niche, emerging Hong Kong, • Aftersales and mainstream Singapore brand opportunities

• Market growth • Market share Developing • Aftersales Countries Eastern Europe Latin America Retail overview Inchcape retail advantages

• Long standing scale operations in chosen countries – Investment in core regional markets – Scale with selected brand partners • Dedicated brand management • Diversified revenue streams: new, used, finance, aftersales • Attractive unit economics • Major growth opportunities in developed and developing markets Regional scale in retail

With focus on core regional markets for operational synergies

Number of core % of country retail regional markets revenues they represent UK 4 80 Australia 3 100 Western Europe 6 95 Eastern Europe 5 90

* Pre Lind acquisition Australia: three core regions

BRISBANE Northern • Subaru (2), Hyundai (2), Kia (2), Territory Mitsubishi (1) • Total of 1,900 units (2005) Queensland SYDNEY Western Brisbane Australia • Subaru (3), VW (2), Hyundai, Kia South New South • Total of 4,400 units (2005) Australia Wales MELBOURNE Sydney • Subaru (4) Victoria • Total of 4,900 units (2005)

Melbourne UK: four core regions

LIVERPOOL • Mercedes cluster • 3,801 units (2005) North

MIDLANDS • Mercedes, Toyota • 20,674 units (2005) Midlands West WEST MIDLANDS midlands •VW cluster • 5,061 units (2005)

GREATER LONDON/SOUTH EAST • BMW + Mini, Toyota South • VW, Audi, Vauxhall, PAG, Ferrari • 33,101 units (2006E) Diversified revenue streams

Vehicles Aftersales New Parts Used Services & Light Repair Finance & Insurance Body & Paint

Full retail and service value chain in the local market Retail unit economics

Typical sites Continental UK Australia Developing Europe markets

Units - New 300 470 380 1,700 - Used 80 470 160 350

Revenue (£m) 5 21 16 30

Operating margin (%) 1.5 3.0 2.4 5.0

Capital employed (£m) 1 5 4 6

Fixed assets 1 2 2 4

Working capital 0 3 2 2

ROIC % 8 12 12 20 Growth opportunities in retail

Organic Expansion Distribution Retail Distribution Retail

Developed • New cars countries • Drive industry • Used cars UK, Europe consolidation • Aftersales Australia • Higher system Hong Kong, share • Finance Singapore

• Market growth • Higher system • New cars Developing share • Used cars • New market Countries entries with • Aftersales Eastern Europe scale • Finance Russia China part two

The way forward Inchcape strategy

OneOne vision:vision: ToTo bebe thethe world’sworld’s mostmost customercustomer centriccentric automotiveautomotive retailretail groupgroup

TwoTwo strategicstrategic Expand StrengthenStrengthen Expand priorities:priorities: InIn existing,existing, emergingemerging ExistingExisting corecore businessesbusinesses andand newnew marketsmarkets Four enablers: Four enablers: RecogniseRecognise thatthat itit isis ourour peoplepeople whowho makemake thethe differencedifference

GoldGold StandardStandard performanceperformance managementmanagement

UseUse technologytechnology toto freefree upup timetime

DisciplinedDisciplined allocationallocation ofof capitalcapital Strengthen: increase profitability of outlets

StrengthenStrengthen

CustomerCustomer centricitycentricity OperationalOperational excellenceexcellence toto drivedrive like-for-likelike-for-like toto drivedrive like-for-likelike-for-like salessales growthgrowth profitprofit growthgrowth

Inchcape advantage Value drivers Outstanding customer service

• Generates higher customer conversion and loyalty rates • Satisfies the emotional needs of customers: Creates a retail experience brand that is unique in the motor industry • Makes Inchcape the best OEM-partner with global scale and local excellence • Continued access to attractive development opportunities Inchcape advantage

• In May we started systematic collection of customer service excellence best practices • Bank of over 100 best practices with proven bottom line impact • Global rollout will start in 2007 and take 18-24 months to implement

Relentless push to drive like-for-like sales growth The customer opportunity is huge

• Retail Brand Experience is an important source of Brand differentiation as product quality improves • Inconsistent Service level in the industry • Opportunity to improve customer retention beyond warranty We will drive like-for-like profit growth through key value drivers (1) Distribution Vehicles Parts Quality of • Innovation and special editions • Service loyalty revenues • Market share increase • Trade vs retail sales

• Marketing effectiveness •Effective pricing Flow through • Overhead cost management • Sales/Employee

• Vehicle stock • Stock level Working capital • Over age debtors • Stock age

• Market mapping and network • Repair sites: location, strategy scale, representation • Retail sites: Locations, scale, Network quality • Operating standards representation • Dealers operating standards We will drive like-for-like profit growth through key value drivers (2) Retail Vehicles Service Parts • LFL volume • Capacity • Service loyalty growth utilization Quality of • Trade vs. retail sales • Model mix • Service mix revenues management • Used car • Revenue/car • Service efficiency • Effective pricing Flow through • Finance/car • Service hours/ • Sales/employee technician • Vehicle stock • Over-age debtors • Stock level Working capital level and age • Stock turns • Over age debtors Expand:plan to invest significantly with our brand partners in 3 growth areas • Retail expansion in existing markets – Developing – Developed • Create four additional scale retail markets • Identify new distribution opportunities – Existing partners – New partners

Financial capacity to invest up to £800m Increase retail scale through acquisition and greenfield in existing markets United Kingdom Drive retail consolidations Australia Hong Kong Grow premium segment Singapore share and aftermarket Greece Increase owned retail share Belgium and develop multi-brand Balkans retail representation Baltics Acquire scale retail Poland businesses and develop Latin America greenfield operations Create four additional profitable scale retail markets with at least 25-30k units

6 Existing core markets

1 Russia

1 China 4 ? ……

? …… Russia

The opportunity Inchcape entry strategy

• Import market experiencing strong growth RAPIDLY DEVELOPING A PRESENCE • Sales for 2006 forecast to be 50% above 2005 • JV with Independence for two Toyota sites in Moscow. Completed • Market concentration: • Acquisition of 75.1% of Axel St Petersburg • Moscow (50%) (Toyota/Lexus). Completed • St Petersburg (12%) • Further scale retail acquisitions • Regional and new franchises roll out China entry strategy

The opportunity Inchcape entry strategy

• Market growth continues Step 1 • Sales up by 25% in 2005 to 3.1m units. • Opening of 2 operations in Greater Shanghai: 1Q 2006 up 68% • Toyota and Lexus in Shaoxing (H1/2007) • Market concentration: • Lexus Shanghai (H2/2007) • Beijing (20%) • Shanghai (13%) Step 2 • Guangzhou (14%) • We are currently evaluating several scale • Scale (30,000 units) likely to require presence acquisitions / partnership options and in all three major cities greenfield operations Process and shortlist of additional markets West Europe D E France V E Germany L Systematic Assessment (in 2007) O Spain P - Market growth potential E United States D - Attractive brand partners South Africa - Retail economics - Availability of scale entry D Eastern Europe E opportunity V Romania E - Inchcape assets and capabilities L Poland O to leverage P I India N G Turkey Develop new distribution opportunities

Distribution Retail

Developed countries

Niche, emerging and mainstream brand opportunities

Developing countries Develop scale with partners

Existing New

• Toyota, Lexus • Audi

• Subaru • Honda

• VW

• Mazda

• Mercedes

• BMW Our global organisation model

Decentralised and Coordinated

• Empowerment • Best practice benefits

• Resources in markets • Consistent standards and systems to improve productivity • Fast decisions • International careers

• More time with customers • Strategic guidance from the centre and support from the Executive Committee We are changing the ways we set goals

TheThe GoldGold StandardStandard Economic profit Gold EP Standard %

OK OK 12% 13%

Average Average 10% 10% Bad Bad 8% 7%

Operation Operation Operation Operation Operation 1 2 3 4 5

Economic profit = PAT – WACC Conclusion We have a clear roadmap for the next stage of growth Sources of targeted profit growth Like-for-like profit growth Growth from expansion

Developing market

Developed market

Developing market 2011 Developed market

2005 We have a clear roadmap for the next stage of growth

Distribution Retail

Multiple growth Developed +++ countries + opportunities

Developing countries ++ +++

• Healthy balance between organic like-for-like Five year outlook growth and expansion opportunities • Attractive returns • Up to £800m invest in expansion Our formula for delivering shareholder return

Business platform Business Performance • Deep understanding of the sector • Strong cash generation from existing portfolio • Unique relevant business model • Every market contributing • Highly international geographical to profit growth footprint, spanning developed and developing countries • Successful integration of acquisitions • Leadership positions in key markets, with best-in class margins Future growth • Enduring relationships with “winning” OEM brand partners • Many opportunities to pursue – organic, acquisitions • Strong and professional management team • Clear focus • Financial flexibility

The leading international automotive distributor and retailer

Barbara Richmond Group Finance Director Inchcape strategy

OneOne vision:vision: ToTo bebe thethe world’sworld’s mostmost customercustomer centriccentric automotiveautomotive retailretail groupgroup

GoldGold StandardStandard performanceperformance managementmanagement

UseUse technologytechnology toto freefree upup timetime

DisciplinedDisciplined allocationallocation ofof capitalcapital Gold Standard performance management • Complete new internal reporting system • New performance metrics appropriate for individual segments and sites • Drive gold Standard operating performance by value driver at site level including use of assets • Ultimate focus on economic profit (see appendix) Reporting system

• Management accounts for each of our 313 operating businesses • Profitability, productivity, asset utilisation and return information for each department • Key change in business analysis • Drill down/traffic lights Performance metrics

• Shift from Distribution to Retail • Distribution - market share - return on sales • Retail - like-for-like -margin -flow through - productivity - capital intensity Gold standards

• Target setting • Stretch versus incremental • Multi-site comparison • Best in class • Profit and loss, balance sheet, cash flow, productivity and market share Economic profit

Group • Recurring profit after tax less cost of equity • Target for rate of growth and absolute EP over strategic plan period • More appropriate measure than ROCE Business Unit • Recurring after tax operating profit less notional/actual rent less cost of capital employed • Targets set down to department level by business Gold standard performance

• Economic profit is the target • Gold standards are the tools • Management accounts monitor actual and rate of progress • Site by site variances are significant Use technology to free up time

• Automation of processes and information • Free up people to focus on front office activities • Transfer of best practice processes around the group • Consistent information for decision making Disciplined allocation of capital

• Investment criteria • Funding capacity • Evolution of the business model • Distributions to shareholders Investment criteria

• Opportunities must meet strategic criteria • Primary focus on internal rate of return • Secondly economic profit generated over the investment period • Cash payback also important • Differential hurdles for Developing and Developed markets Good capability to finance expansion opportunity • Continued strong cash generation from existing businesses • Strong balance sheet • Significant borrowing capacity Strong cash generation from operations £m 180 157.7 156.6 160 154.8 142.4 140 120 100 80 60 51.2 40 20 12.2 16.6 16.9 0 2002 2003 2004 2005

Retail Distribution Proforma balance sheet*

30th June 2006

£m Fixed assets Property 294 Other 112 Goodwill 125 Total 531 Working capital 38 Cash 79 Other net liabilities (10) Total net assets 638 Property comprises 46% of asset base and 13% of market capitalisation

* Post Lind acquisition Property strategy

• Continue to acquire freehold property due to strategic commercial value • Use as part of overall funding security • Securitisation remains a future option Funding capacity

• Ongoing cash generation • Strong balance sheet • Investment grade status

Financial capacity to invest up to £800m Distributions to shareholders

• Progressive dividend policy • Ongoing dividend cover around 2.5 times recurring earnings • Priority to capital investment over buy backs if sufficient value generating opportunities Sustainable financial performance

Margin Impact • Increasing proportion of retail versus distribution profits • Increasing proportion of retail profits from developing markets • Mix change to smaller vehicles

• Gold Standard performance

• Focus on higher margin value drivers

Spencer Lock Managing Director Inchcape Retail UK part one

Where are we now? Forecast new car market

3.0

2.57 2.44 2.46 2.49 2.49 2.5 2.33 2.33 2.40

2.0 1.23 1.25 1.25 1.49 1.24 1.17 1.17 1.20 1.5

1.0

1.20 1.17 1.17 1.20 1.23 1.25 1.25 0.5 1.08

0.0 2004 2005 2006 2007 2008 2009 2010 2011

Source: 2004 – 2007 SMMT Source: 2008 – 2011 Average JD Retail Fleet Power & Global Insight Used car market

7.4 £32.3bn £32.0bn 7.2 7.0 £30.0bn 6.8 £28.1bn 6.6 7.3 £26.4bn 7.2 6.4 Volume millions 6.8 6.2 6.6 6.4 6.0 5.8 2001 2002 2003 2004 2005

Source: BCA Used Car Report ore SMMT Source: Vehicles millions 2005 Car Parc:1995– 10 15 20 25 30 35 0 5 9519 9719 9920 0120 0320 2005 2004 2003 2002 2001 2000 1999 1998 1997 1996 1995 25.0

25.5

26.3

27.0

27.5

28.0

28.6

29.3

29.9

30.3

30.7 Inchcape UK

• Scale multi-franchise dealer group – 111 Dealerships – 93 locations – 20 Franchises – 4 Core regional markets Inchcape UK continued

• Inchcape is 2nd largest UK retail group based on turnover* • Clear strategy of scale with core partners – BMW/Mini – Mercedes-Benz – PAG – Toyota/Lexus – VW/Audi • Inchcape share of franchised dealerships circa 3% • Market consolidation ongoing

* Source: AM Top 100 Inchcape UK continued

• Multiple value drivers – New – Used – Finance & Insurance – Servicing – Parts • Franchised dealerships growing share of used car market • Sustainable Car Parc growth will help drive aftersales revenue UK – top retailers

Rank Dealer Name Turnover New Units Used Units 1. Pendragon 5,624 N/A N/A 2. Inchcape Retail 1,820 31,463 36,023 3. Sytner 1,780N/A N/A 4. Arnold Clark 1,67062,623 105,191 5. Lookers 1,29144,368 33,753 6. Camden Motors 1,26586,587 22,973 7. Daimler Chrysler 1,20017,372 19,832 8. Jardine Motors 904N/A N/A 9. Ford Retail 81431,201 23,520 10. EMH 66720,251 15,920

Current portfolio UK retail statistics

H1 2006 Total growth Like-for-like growth

Volume New 11,695 12.1% 8.1% Used 19,583 7.1% 9.1%

Revenue (£m) 730.3m 5.4% 3.4%

Operating margin 2.9% 0.7 ppts 0.7 ppts part two

The way forward Retail market trends

• Continued consolidation of UK dealer groups • Small/medium sized groups looking to exit • Increased investment costs • Stable new car market • Greater opportunities in used sales and aftermarket as franchised dealers grow share We will drive like-for-like profit growth through key value drivers

Vehicle Service Parts Quality of • Retail/fleet mix • Service mix • Service/trade mix revenues • Scale OEM • Vehicle health • On-line parts relationships/ checks sales Internet • Centralised • Market area parts • Inchcape service booking distribution Advantage • Express service

Flow • Margin/car • Recovery rates • Margin through • Used car • Sold hours • PDI initiatives to purchasing power • Efficiency - off increase retail • Market forces F&I site mix model • PDI • T/O employee • Yield management Working • Stock Profile/age • Debtors • Stock capital • Debtors • Debtors We will drive like-for-like profit growth through key value drivers • Like-for-like sales growth through improved conversion rates •‘Big 4’ Enquiries • Meet and greet • Test drives CRD: Entering sales process • Acknowledgement Conversion : sales and other products • Parking Customer • 7 KPIs – Track effectiveness/improvements Satisfaction

Retention • Ongoing research – we understand our competitors better than the competition

•Improved service retention CRM Strategy •Increased purchase retention Summary

• Stable market driving increased vehicle Parc • Multiple revenue streams – sales and aftersales • Successful core partner and regional concentration strategy • Significant growth opportunities – Further market consolidation – Gold Standards to drive economic profit

John McConnell Chief Executive Australia/New Zealand part one

Where are we now? Distribution overview Market growth – Australia

900,000 180,292 177,000 173,087 800,000 150,578 138,064 700,000 105,510 116,236 600,000 500,000 400,000 300,000 608,804 601,000 588,511 589,985 553,673 540,240 200,000 529,452 100,000 0 2000 2001 2002 2003 2004 2005 2006 F

Total passanger SUV Subaru business

2005 Five year CAGR Vehicle volume 36,044 +6.2%

Car Parc 318k +8.8% Parts £34m +14.1% Dealers 103 Dealer throughput 350 Subaru market share

Market YTD August volume Change Total market 642,383 -3.4% Subaru 24,896 +0.1% Subaru share 3.9% +0.2%

Subaru segments Volume Growth Small 146,686 +3.0% Medium 56,605 -3.6% Compact SUV 51,534 -0.7% Total 254,825 +0.7% Subaru share 9.8% -0.1% Business evolution

Importer Advertiser Marketer Retail • Create brand • Grow brand Sold cars to Helped network dealers sell cars • Build network • Real time • Quality sales • Experiences • CRM CUSTOMER Subaru market share by country

Volume (units) Market share Japan (excl mini cars) 108,649 2.8% Japan (inc mini cars) 258,217 4.4% USA196,002 1.1%

Australia 36,044 3.6% Canada15,966 1.0% Switzerland9,401 3.6% Germany 10,132 0.3% United Kingdom 8,926 0.4%

Volume and share: 2005 Subaru Parts

20 £m

0 2001 2002 2003 2004 2005 Subaru parts

• Five year CAGR 14.1% • Separation of sales/marketing and logistics • Focus on 18 wholesale Parts dealers • Trade sales programs • Establishment of Preferred Repairer Network • Price matching initiative • High first pick availability Retail overview Top 20 Australian auto retailers

Rank Dealer name Sales volume Market share Turnover 1. AP Eagers 24,400 2.5% $1,076m 2. Automotive Holdings 22,000 2.2% $1,100m 3. WFM 19,000 1.9% $950m 4. Suttons 18,200 1.8% $910m 5. McGraths 14,500 1.5% $728m Australian Automotive 6. 12,900 1.3% $675m Group 7. Inchcape 11,700 1.2% $600m 8. Peter Warren 10,700 1.1% $535m 9. Tynans 10,600 1.1% $530m 10. Zupps 9,800 1.0% $500m 11 – 20 Other 59,050 5.9% $3,238m TOTAL 212,850 21.5% $10.8b Retail market trends

• Retail – Operating margin • Average 2.0% • Top 30% average 2.7% – Volume driven by ‘offers’ – Manufacturers require improved/standalone facilities – Consolidation phase as entrepreneurial owners look to exit – Manufacturers starting to accept corporate ownership Australia: three core regions

BRISBANE Northern • Subaru (2), Hyundai (2), Kia (2), Territory Mitsubishi (1) • Total of 1,900 units (2005) Queensland Western SYDNEY Brisbane • Subaru (3), VW (2), Hyundai, Kia Australia South New South • Total of 4,400 units (2005) Australia Wales MELBOURNE Sydney • Subaru (4) Victoria • Total of 4,900 units (2005)

Melbourne Australia retail statistics

H1 2006 Total growth Like-for-like growth

Volume New 5,715 17.7% 5.0% Used 2,132 30.9% 9.6%

Revenue (£m) 111.1m 8.9% 2.6%

Operating margin 3.9% 1.2 ppts 0.8 ppts

ROCE 14.9% 5.0 ppts 5.9 ppts part two

Where are we going? Distribution overview Product life-cycle

Subaru Line-up

2005 2006 2007 2008 IMPREZA @ FORESTER @

@ Full Model Change LI BERTY Face Lift OUTBACK { New Product TRI BECA { We will drive like-for-like profit growth through key value drivers

Vehicles • Innovation and special editions • Subaru experience Quality of revenues -Premium branding - Lead generation and management - Repeat sales

Flow through • Marketing effectiveness • Overhead cost management

• Vehicle Forward Order System Working capital • Total network stock ageing • Market mapping and network strategy Network quality • Retail sites: locations, scale, representation • Dealers operating standards We will drive like-for-like profit growth through key value drivers

Parts • Service loyalty Quality of revenues • Decongestion of workshops utilising Centralised PDI

Flow through • Strategic pricing of price sensitive items • Sales/employee

• Stock level and availability Working capital • Stock age • Repair sites: location, scale, representation Network quality • Operating standards Inchcape advantage

• 23% Inchcape volume/77% independent dealers • Consistent delivery of Subaru Experience • Visibility of consumer demand • Improved marketing effectiveness

Increased sales and lower operating costs Retail overview We will drive like-for-like profit growth through key value drivers

Vehicles • Inchcape Advantage - Lead Generation & Management Quality of revenues - Repeat Sales • Used car growth Flow through • F&I penetration & income/car • Overhead cost management

• Stock aging Working capital • Debtor management We will drive like-for-like profit growth through key value drivers

Service & Parts • Quick service Quality of revenues • Customer retention programs

Flow through • Utilisation of AutoNexus to decongest service facilities • Yield management

• Stock aging Working capital • Debtor management Inchcape advantage

• Improve monthly traffic 329 average (2006) • Improve conversion/traffic 74% (2006) • Improve orders/traffic 27% (2006) • Improve customer advocacy (Net promoter score)

• Retail partner of choice • Improved operational performance Summary

• Market outlook is positive • Customer centric operational excellence • Organic growth: (i) Distribution - New products -Parts (ii) Retail - New /used -F&I - Parts & Service • Retail market consolidation opportunities

Dale Butcher Group Development Director Business model: expansion

Distribution Retail

Developed • Consolidation countries • Fewer, bigger, better retailers Mainstream, niche or emerging • Market growth brands Developing • Network countries development • Opportunity to develop scale retail operations Distribution: key opportunities

Niche Mainstream

• Potential scale • Pressure to reduce Developed and capability costs may lead to a countries favour re-assessment of independent traditional National distributors Sales Company functions

• Potential scale, • Initial scale and Developing capability and capability may countries market knowledge favour independent favour distributors, independent particularly if distributors linked with retail Retail expansion: developed countries

• Key market priorities – UK – Australia – Belgium Current countries: Expand retail footprint with brand partners – Greece – Chile New scale countries: – Continental Europe Consider if scale unit economic returns can • OEM retail partners be achieved Existing New – Toyota/Lexus – Audi – Subaru – Honda – Volkswagen – Mazda – Mercedes-Benz – BMW Western Europe – unit economics

New Unit sales per outlet - Western Europe 2005

500 450 400 350 300 250 200 150

Unit sales per outlet 100 50 0 UK France Germany Italy Spain Belgium Greece

Market share of top 50 independent EBIT return on sales groups 2.5 50 45 2 40 35 1.5 30 25 1 20 15 10 0.5 5 0 0 UK France Germany Italy UK France Germany Italy

• UK consolidation has already commenced, with higher returns seen compared to rest of Europe • European consolidation will lead to improved returns and increased market concentration

Source: GMAP handbook, JD Power, Inchcape, ICDP Country growth

New car sales vs GDP per capita - 2005 and 2010

45,000

UK 40,000 JD Pow er 2005 Finland France JD Pow er 2010

35,000 Germany Italy Spain 30,000

Czech Republic Greece 25,000 Slovakia

20,000 Hungary

Poland GDP per capita(US$) 15,000 Russia Estonia

10,000 Lithuania

Latvia Romania 5,000

0 0 5 10 15 20 25 30 35 40 45 50 New car sales per 1000 population Developing markets: Developed markets: • Lower GDP per capita • Higher GDP per capita • Greater market potential - higher • But slower forecast growth in sales per forecast growth in sales per population population

Source: EIU, JD Power Eastern Europe: new car sales

Poland 446 Estonia Russia – foreign imports 30 44%a 16% -6.9% 13.6% 20 12.5% 9.0% 1,200 Czech Republic Latvia 17 30 236 23.7% 12.5% -3.9% 12.0% 225 15 27 Lithuania 127 21.5% 12.8% 315 561

216 . Slovakia

-4.8% 6.0% Romania

32.7% 7.7%7.9% 76 57 BOSNIA- 229 199

(a) CAGR is 2002-5 for Russia Hungary 2005 2010 All figures in thousands 8.0% 2.8% CAGR 01- 05 05-10

Source: EIU, Global Insight, Inchcape forecasts Eastern Europe – unit economics

New units per outlet

1200

2005 Western Europe average

1000

800

600

400

200

0 Bulgaria Croatia Czech Estonia Hungary Latvia Lithuania Poland Romania Russia Republic

2005 2010

Source: GMAP handbook, JD Power Eastern Europe – Inchcape presence

Inchcape Baltics

Inchcape Motors Poland Mazda / Jaguar / Land Rover VIR (Estonia / Latvia) – 5 outlets BMW / Mini retail in Warsaw and Mazda / Jaguar / Land Rover Distribution only (Lithuania) Wroclaw – 2 outlets 2005 summary 2,587 unit sales (distribution) Revenue £27.2m

2005 summary 132 unit sales Revenue £6.6m

Toyota Balkans Toyota / Lexus VIR – 4 outlets Romania, Bulgaria (also Macedonia and Albania) 2005 summary 6,835 unit sales (distribution) Revenue £94.5m Key priorities – Eastern Europe

Overview • Romania and Bulgaria EU entry approved for Jan 2007

Progress and strategy • Increase own retail presence in Romania and Bulgaria and develop potential retail acquisitions • Acquire retail businesses in the Baltics • Build scale in Poland through acquisition • Identify VIR opportunities where appropriate • Development of scale profitable businesses in other Eastern European markets, where applicable Russia: Inchcape presence

•Axel Axel “Piscarevski” “Axel Car” •Toyota Lexus Toyota Axel Volgogradsky “Pulkovo” Toyota Kievka Toyota, Lexus

St Petersburg Moscow 2 Toyota retail & service centres 2 Toyota retail & service centres 1 Lexus retail & service centre Due to open towards end of 2007 1 Lexus showroom Key priorities – Russia

Overview • Market continues to exhibit rapid growth – foreign brand sales in 2006H1 increased 55% year-on-year to over 400k units • Continuing stream of announcements by OEMs on new manufacturing facilities in Russia: Toyota, Nissan, VW Progress and strategy • Anchor points established for Toyota/Lexus in Moscow and St Petersburg • Senior and experienced local team now recruited • Develop opportunities with Toyota in the regions • Acquire existing dealer groups • Develop further greenfield opportunities China: Inchcape presence

Shanghai 1 Lexus dealership – due to open 2008

Heilongjiang

Jilin Shanghai Xinjiang Liaoning Gansu Inner Mongolia Tianjin Beijing Ningxia Hebei Shandong Shaoxing Qinghai Shanxi

Tibet Shaanxi Henan Jiangsu Shanghai Sichuan Hubei Hubei Anhui Chongqing Zhejiang

Hunan Hunan Jiangxi Guizhou Fujian Yunnan Guangxi Guangdong Shoaxing 1 GZ Toyota dealership – due to open end-2006 Hainan 1 Lexus dealership – due to open end-2007 Hong Kong Key priorities – China

Heilongjiang Greater Beijing Area Parc 2,332k Overview Ji % of China mkt19.9% li Xinjiang n • Continued strong Gansu Inner Mongolia Liaoning growth in market Tianj in Beijing Greater Shanghai ->30% CAGR Ningxia Hebei Shandong Qinghai Shanxi since 2001 Area Tibet ShaanxiHenan Jiangsu Shanghai • Concentration in 2003 sales1,570k Sichuan Anhui HubeiHubei % of China mkt13.4% major cities Chongqing Zhejiang Hunan Progress and strategy HunanJiangxi Guizhou Fujian Guangdong • Complete build of newly awarded Yunnan Guangxi Province Guangdong sites for Toyota and Lexus in Shaoxing 2003 sales1,607k and Lexus in Shanghai % of China mkt14.3% Hainan • Assess acquisition/greenfield opportunities Hong Kong for a select number of OEM partners Source – BCG research — First Auto Works (FAW) Toyota — Honda — Mercedes-Benz — BMW — Audi — Acura • Monitor industry consolidation and profitability trend Other markets for consideration

India • Rapid growth in new car sales – forecast CAGR to 2010 is c.15%*. Total new car market c.1 million in 2005 • Initiating research to clarify market opportunity

Turkey • Attractive economic fundamentals; relatively strong forecast GDP growth and start of negotiations for EU membership should attract investment • OEMs are increasing manufacturing presence in Turkey, as centre for Eastern/South-Eastern Europe sales

* Source: Global Insight Other markets for consideration

South Africa • Favourable economic environment and strong consumer confidence resulted in expected 10% growth in new car sales in 2006 • Large scale established dealer groups lead sales in market

USA • Mature market. Assess scale and profitable entry opportunities Development team

Roles and responsibilities • Together with each Business Unit, create opportunities to expand number of sites by acquisition or greenfield • Develop new markets using external parties where appropriate • Build on existing OEM relationships for both distribution and retail • Introduce new OEM partners for both distribution and retail • Manage the Group pipeline process • Project management of new site construction or redevelopment • Oversee major transactions Development team

Resources • Development team comprises 10 people • Primarily London-based team together with Country Managers in Russia and China to drive opportunities in these key markets Development team – pipeline process

Completion/ Market Validation Business Plan Transaction Post Investment Research Review

• Market research • Target/site • Detailed financial • Due diligence • Monthly track versus confirmed evaluation • OEM opportunities • Legal agreements economic profit • Preliminary analysis • Management • Optimal brand • Negotiations • Annual review vs. cocktail • Confirm strategic fit capability business plan • Scale potential • Funding structure • Integration plan

GCC/Board approval Positioned to capture future opportunities

National players: -Multi-franchise -Single market The retailer of Chasing pack: choice globally -Retail or distribution specialists for our OEM 16 partners 14 Porsche France (PGA) 12 Pendragon Be r ge Emil Frey

10 Jardines

8 Lookers UAG Sytne r Kr oym ans 6 Inchcape Rolf Sim e Darby 4 Brand specialists: # brands (by manufacturer) Sum m it Bilia AB -European outlook 2 - Single brand

TTC Porsche Holdings 0 0246810121416

# Core countries of operations

André Lacroix Group Chief Executive Investment case

The leading international automotive distributor and retailer

Disclaimer

The information and opinions contained in this presentation are provided as at the date of the document.

Certain statements in this presentation, particularly those regarding the future prospects of Inchcape Plc (“Inchcape”), returns, pricing, acquisitions, divestments, industry growth or other trend projections are or may be forward-looking statements. These forward-looking statements are not historical facts, nor are they guarantees of future performance. Such statements are based on current expectations and belief and, by their nature, are subject to a number of known and unknown risks and uncertainties which may cause the actual results, prospects and developments of Inchcape to differ materially from those expressed or implied by these forward-looking statements.

Except as required by any applicable law or regulation, Inchcape expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this presentation to reflect any change in Inchcape’s expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based.

All information in the presentation is the property of Inchcape Plc and may not be reproduced or recorded without the written permission of the company. Nothing contained in the presentation constitutes or shall be deemed to constitute an offer or invitation to invest in or otherwise deal in any shares or other securities of Inchcape Plc. Appendix Definitions

ROIC (%) =Trading profit Business assets Business assets = intangible assets + property, plant & equipment + working capital = inventories + debtors + creditors Trading profit = operating profit before exceptional items and central costs

Like-for-like A newly built, relocated or acquired site is counted as like-for-like from the first day of the 13th month of ownership A relocated, closed or sold site is excluded from like-for-like on the day of relocation, closure or sale Economic profit

2005 H1 2006 Recurring profit after tax* 143.4 88.3 Minority interests (3.8) (1.9) Equity charge** (46.1) (25.8) Economic profit 93.5 60.6

* Cost of debt is included in profit after tax. Tax is included at the actual rate for the year ** This is based on an estimated of cost of equity of 8.5% using published data on risk free rates and Company Beta, and advisors estimates of market risk premium