Koh Ching Hong Managing Director South Asia David Colwell Finance Director South Asia Market Overview

Population 4.8 million

Language English, Malay, Chinese, Tamil

Currency Singapore Dollar

Capital City Singapore

GDP US$195 billion

Singapore has established itself as a major hub in Asia

Source: IIMF Commercial Overview

Growing economy Stable political environment Western style legal system and business environment Long term policy focus

Regional trading hub with Benefits from Asia-Pacific economic development strong growth prospects MNCs from Europe, India, US, China have set-up regional HQ. Continued influx of ex-pats

Strong household and Quick rebound from GFC sovereign savings Well capitalised and regulated banking segment Low sovereign risk (AAA rating on govt. debt)

Significant investment in Continued expansion of premium retail sector 2005-2010 2010-2015 premium retail GDP per capita CAGR of 6.8% GDP growth (CAGR) Opening of two casinos has accelerated retail 12.2% 6.5% demand Population (CAGR) 3.3% 1.7% High population growth, 5.2m people expected to reach 6.0m by 2020 Unemployment rate <3.0% <3.0% high density living Highest rate of home ownership in the world Inflation <3.0% <3.0%

Singapore has a good economic outlook which supports increased vehicle demand

Source: IMF Automotive Overview

Limited land area Major government investment in public infrastructure, £20bn by 2020

Vehicle Certificate of Entitlement (COE) required to register a car congestion Government policy is to increase car parc by 1.5% per year controlled by (2009-2011) government policy

High car costs Taxes and Duties amount to 127% Purchased COE is a 10-year licence Vehicles are 3 times more expensive than UK Interest rates are benign, 10-year financing

Environmental 40% tax rebate for hybrid and CNG vehicles policies are Tax premium charged for diesel vehicles (due to NOx becoming more particulates)

important Vehicle CO2 emissions has an increasing focus Current policy expires 2012

Singapore vehicle market is heavily regulated

Source: LTA Business Model

Vertically Integrated Retailer Service Sole importer and retailer for: since 1967 since 1992 Service Service Service since 1977 Showroom/Service Hino since 2006 Parts Showroom Service

Market leader since 2002 Delivery PDI B&P Showroom Service Largest Aftersales network B&P 8 sites Employees: 660

Inchcape has the best geographical coverage with sites in key locations 2000–2006: Strong growth driven by government incentives 000’ vehicles 2000 to 2006 CAGR growth 8.2% 8

7

6 Total Industry Volume (TIV) 5

Average Age of Car (Years) 4

3 Ave Car Age (in Years) 2

1

0

Car parc was refreshed with average vehicle age of 3.5 years

Source: Inchcape estimates 2007 – 2011: Ageing of the Car Parc

000’ vehicles 2007 to 2011 CAGR growth –21.9%

Total Industry Volume (TIV) 8

Average Age of Car (Years) 7

6

5

4

3 Ave Car Age (in Years) 2

1

0

TIV falling due to delay in 1-for-1 replacement cycle

Source: Inchcape estimates Luxury and Premium segments are outperforming

Inchcape well positioned to take advantage of growth in premium and luxury markets Our top 5 Priorities

Growing Growing market aftersales share

Controlling Selective Improving working capital margin capital expenditure Operational focus on our top 5 priorities to deliver our Customer 1st strategy

Mix focus on stronger segments Cutting edge innovation to accelerate repeat Traffic sales Growing Leads/Traffic Optimise the Lexus/Toyota Hybrid advantage market Test drives/Traffic Strengthening VFM proposition through share differentiated specifications Order/ Traffic New product introductions, Model life cycle management

Programs developed for growing Enquiries ‘out of warranty’ segment Booking/Enquiry Growing Loyalty programs including extended warranty Intakes/Enquiry aftersales to grow retention Broadening the product portfolio to grow sales per visit

Innovation and operational discipline to grow revenues ahead of the competition Operational focus on our top 5 priorities to deliver our Customer 1st strategy

Focus on quality of revenues to leverage the market shift towards premium and luxury segments Improving Tight gross margin management with upsell / mix management on each value driver margin Restructured the cost base to reduce headcount by 20% and total costs by £6m since 2007

Controlling Proven processes in place to manage supply chain effectively working Daily focus on aged stock over 3 months and debtors collection capital

Selective Closed non-customer facing pre-delivery and storage yards and consolidated capital two delivery centres Limited to necessary replacement items expenditure

Continuing to deliver high returns through disciplined margin management and cost control Programmes developed for the ageing car parc have enabled us to increase Aftersales contribution

Introduced grading strategy to increase number of variants Strengthening Differentiated warranty/service/loyalty offering VFM proposition Marketing calendar focused on value-added promotions

Broadening segment coverage with new models; Suzuki Kizashi; , Hybrid Model mix Deepen segment penetration with new variants; Lexus RX270, 1.8 management Refresh model line-up with special editions; Corolla (Altis) Elegance; Fortuner TRD Focus on improving segment share of higher margins premium models

Suzuki Kizashi Toyota Crown Camry Hybrid Lexus RX 270 Toyota Wish Programmes developed for the ageing car parc have enabled us to increase Aftersales contribution

First impression lasts Membership Extended warranty differentiates the ownership experience benefits Competitively price standard servicing to maximise retention

Body care program to look after vehicle appearance Product Body care express provides repair services as part of our preferred insurance program innovations Value buys are a range Engine flush, Fuel treatment, Engine Protector and Nano-Detox treatments

Customer Strong focus on outbound service bookings Comprehensive customer contact programs to maximise retention contact activities Move from Km-based servicing to time-based

Toyota Shield Toyota Shine Body Care Express Value Buys Service Centres 2012 – 2015: Road to Recovery

000’ vehicles Certificate of Entitlement (COE) has 10-year life span After 10 years, customer must renew their COE or scrap the car

2012-2015 CAGR 25.1% 8

7

ery ov 6 rec Total Industry Volume et (TIV) ark 5 Average Age of Car M (Years) 4

3 Ave Car Age (in Years) 2

1

0

Market recovery attributable to COE 10-year life span

Source: Inchcape estimates 2012 – 2015: Road to Recovery Trend Inchcape

Demand for premium and luxury car models Widest range of premium and luxury have increased as the population becomes models, covering hatch, , SUV & more affluent (in the context of rising vehicle MPV segments prices)

Tax incentive in the form of “Green Vehicle The largest supplier through its Hybrid and Tax” rebate of 40% helps to encourage / CNG model range, covering both mass incentivise “Environment-Friendly” vehicle market and luxury segments purchases

Inchcape has the widest range of people- Rising vehicle costs and large families has mover models, covering mass, premium & increased demand for people-mover models luxury segments.

Range of Hybrid and CNG models Singapore government is encouraging available to taxi operators. Continue to consumers to use public transport instead of explore new models. # 1 player in the owning a private vehicle small segment New Product Launches

LEXUS CT200h SUZUKI Swift TOYOTA Camry / Hybrid TOYOTA Wish LEXUS GS / Hybrid LEXUS RX / Hybrid Altis Increasing demand for green technology

Inchcape brand partners leading their competitors with Hybrid Technology Growing Aftersales

Trend Inchcape

Inchcape has developed a range of Ageing car parc prompt consumers to membership packages for the ‘Out of prolong vehicle’s lifespan by utilising Warranty’ segment where the benefits genuine parts and service increase as the car ages, on the condition all scheduled servicing is completed

Convenience of Service Centre locations Inchcape has the most extensive network is an important factor for consumer of 8 repair centres strategically located choice throughout the island

Inchcape offers one-stop aftersales Vehicles are being purchased by more experience and a broad product offering affluent customers who will look after including bodyshop and spa services to their purchases increase retention and revenue per visit Selective Capital Investments

Refresh customer facing facilities Expanded Toyota and Lexus showroom to allow new model introductions Relocate Suzuki showroom to ‘motor strip’ on Leng Kee Road

Economical investment to accommodate broadening model line-up Inchcape Singapore

Market recovery will be driven by the 10-year COE expiry

Well positioned to leverage lower cost base as the market grows: business restructured to operate on lower cost base with lower working capital

Strong Toyota / Lexus product pipeline to grow revenues

Differentiated Inchcape Advantage operational discipline to grow revenue ahead of competition

Proven business model with significant profit and cash generation delivering high returns

Strongly positioned to take advantage of market turnaround