FutureThink Bryce Boothby Italy 19 th June 2013

Margin differences driven by competitive dynamics and potential to create value OEM ~7-9% margins OEM ~7-9% margins Margins low with OEMs because... Focus on repair/ refurbish with less room to hide margin Market is competitive with well established players OEMs already along path to extract cost efficiencies Shift in market towards turnkey model – driven by lower margin in materials management Insurer ~9-11% margins Insurer ~9-11% margins Margins higher than OEM due to complexity of operation... Certification and sourcing engineering design from OEM Establishing parts logistics and sourcing from OEM Pressure from OEMs/carriers driving quality requirements...but will also have competitive dynamics similar to OEMs Carrier ~15-20% margins Carrier ~15-20% margins High margins driven by potential to create greater value Big value levers (e.g. Customer churn and NFF) can be influenced significantly closer to customer interface Costs of technology hidden from carriers – provides room to hide margin Opportunity to differentiate over time with carriers and make relationship sticky by... –Offering technology solutions –Adding triage/diagnostic services to reduce NFF Retailer ~15-20% margins Retailer ~15-20% margins

Lessons learnt. 3  It’s the network!  Closest to the customer, wins!  It takes a team!

Making FY14 Budget. 4  Execute! Do what we say  Think BIG and BOLD  Choose sides!

Step change. 5  The sum of the parts ARE greater than the whole  Cross-sell  Confidence in competing with the big boys

Shifting gears. 6 Reactive, RFP responder Strong knowledge of service portfolio Quality service at competitive price Transactional Consultative Proactive, challenging High level engagement Strategic insight Results, outcomes Solutioning