Tan Suan Phon Managing Director Inchcape China

Market Overview Population 1.34bn Language Mandarin Currency Chinese yuan (renminbi RMB) ( ) Capital City Beijing GDP US 5.9 trillion Source: IMF Since the introduction of market-based economic reforms in 1978, China has become the world's fastest growing major economy

Commercial Overview Fast growing economy Strong trade surplus but aiming at more domestic oriented Consistently medium low unemployment Strong manufacturing base Largest population base China is the major contributor to the recovery of world economy. Now the second largest economy in the world China is stimulating domestic demand to make the economy more domestic consumption-oriented instead of export-driven Unemployment is at government acceptable level Largest manufacturing base in the world, 20% of world output China is still the world s largest country by population 2005-2010 2010-2015 GDP growth (CAGR) 21.1% 11.2% Population (CAGR) 0.5% 0.5% Unemployment rate ~4.0% ~4.0% Inflation ~6.0% ~6.0% Source: IMF

Automotive Overview Largest population base in the world 1.34 bn Low level of car penetration <50 vehicles per 1,000 population which is below 10% of the average for more developed countries 50% of the world average High investment in road infrastructure 308bn RMB is planned for highway construction in just the rural area in 2011 and 700bn RMB in city area Fast growth of Passenger Car Market Growth 2009: 51.1% (Global Insight) Growth 2010: 31.3% (Global Insight)

China s economy continues to grow GDP per capita 2008-2015 000 US dollars Source: IMF

China s economy continues to grow Tier 1: above $60bn Tier 2: $30bn Tier 3a: $15bn income driven Tier 3b: $14-28bn population driven Tier 4: $10bn Tier 5: below $7bn

and expected to be even larger in 2020 Above $1,000bn Between $500bn - $1,000bn Between $100bn - $500bn Below $100bn China GDP in 2020 by provinces (projected): a union of secondtier developed and top-tier developing countries

China Car Market Big and Growing 2010 1.9M 2015 2.7M 55.4% 2010 17.0M 2010 2015 10.4M 11.6M 11% 2010 3.1M 2015 3.6M 15.7% 2015 25.1M 47.4% 2010 4.9M 2015 4.8M 4% Global Total Industry Volume 2009 vs. 2015 2010 2.7M 2015 4.9M 79.2% 2010 3.3M 2015 4.2M 27.8% Source: Global Insight

Total Industry Volume 2008-2015 Million vehicles Source: Global Insight

China Passenger Car Market by segment 000 vehicles CAGR (2010-15) 18% 8.4% 4.8% Luxury Premium Volume Volume Source: Global Insight (PC and LCV)

Luxury demand driven by wealth creation 1 million USD millionaires No. 2 USD billionaires in the world # of Billionaires in 2010 USA 413 CHINA 115 Russia 101 Others 581 Distribution of millionaires in China in 2010 Total 1,210

China: Luxury Car Market 000 vehicles China will be the 2 nd largest luxury Passenger Car market in the world from 2013 Source: Global Insight

Car Parc 2008-2015 Millions vehicles Car Parc Units '000 35,496 44,321 51,199 58,735 66,934 75,794 85,306 Population millions 1,335 1,341 1,348 1,355 1,362 1,368 1,375 Cars/'000 Population 26 33 38 43 49 55 62 Source: JD Power/IMF

Inchcape China Strategy 3 Steps to build scale in the premium end of the market China s large size means scale needs to be focused on a regional basis 2007 2010 2011 2016 2016 2020>>> Step 1 Step 2 Step 3 Establish local presence, recruit strong management team and prove retail economics Scale up presence in targeted regional markets with our preferred OEM brand partners 3 sites 20 sites Accelerate expansion

Retail Centres Step 1

Retail Centres

Our top 5 Priorities Growing market share Growing aftersales Improving margin Controlling working capital Selective capital expenditure

Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Growing market share Leverage OEM new product launches and programs Leverage car shows and customer lifestyle events to drive quality traffic Raise the bar on Customer Service Standards Drive referrals from existing customers and aftersales customers Traffic Leads/Traffic Test drives/traffic Order/ Traffic Growing aftersales Data mining of existing customers service records Build partnerships with Insurance to drive B&P business Raise the bar on Customer Service Standards Leverage Vehicle Health Check Enquiries Booking/Enquiry Intakes/Enquiry

Operational focus on our top 5 priorities to deliver our Customer 1 st strategy Improving margin Weekly price setting and tracking by model Improve penetration of accessories, F&I Weekly tracking of margins for aftersales Control utilities, consumables costs Controlling working capital Inventory cover to maintain at lower than 1.5 months Maximize usage of Supplier Finance with minimum interest charge Negotiate better payment terms with miscellaneous suppliers Selective capital expenditure No major investments planned in existing sites Focus on preferred brands and cities

We are now executing Step 2 of our China Strategy 2016 Vision To operate 20 premium 4S sites Scale up China presence in targeted provincial markets with our preferred OEM brand partners

China: an attractive opportunity for Inchcape 800 Vehicle density per 1,000 adults 600 400 200 0 India China Russia Brazil UK Italy France USA Germany Japan 0 Source: JD Power, IMF 10,000 20,000 30,000 40,000 GDP per Capita (US$) 50,000

Inchcape China China s economy will continue to grow from strength to strength Low car penetration ensures that the automotive industry has significant growth potential Increasing affluence will drive the luxury car market segment to grow even faster Inchcape China is well positioned and ready to take advantage of this attractive opportunity: Tested the retail unit economics, Built a local organisation, Localised our operating processes We are confident that building a portfolio of scale retail businesses, with our core brand partners in the fast growing premium segment is the right expansion strategy for Inchcape China