GiPA Solutions for parts & services intelligence March 2013

EGEA has the project to develop a permanent market watch system. Background EGEA has the project to develop a permanent market watch system. This system will include : a market outlook, an internet tool where companies that declare, can read numbers ... Updated quarterly, with brief comments from consultants. an annual report on the garage equipment market.

Garage equipment production/sales data (by product) Objectives Market data report Garage equipment production/sales data (by product) Analysis report of sales data

Products Perimeter DIAGNOSTICS AND EMISSION TESTERS 4/5-gas analysers Smokemeters Particulate meteirs N0/N02 analysers Combi emission analysers RPM meters Stand-alone code readers/scan tools Pc-based code readers/scan tools Engine analysers BRAKE AND SUSPENSION TESTERS Roller brake testers for 2-wheelers Roller brake testers for cars Roller brake testers for HDV Platform brake testers for 2-wheelers Platform brake testers for cars Platform brake testers for HDV Suspension testers Tracking platforms LIFTS Car 2-post lifts Car 4-post lifts (< 5t) Truck 4-post lifts (> 5t) Car Underground cylinder lifts (< 5t) Truck Underground cylinder lifts {> 5t) Short platform scissor lifts Füll size car scissor lift {< 5t) Füll size truck scissor lift (> 5t) Reduced height scissor lifts Truck mobile column lifts Motorcycle lifts Body repair lifts Spray booth lifts TYRE EQUIPMENT Cartyre changers Truck tyre changers Carwheel balancers Truck wheel balancers On-car wheel balancer 3D car wheel aligner 3D truck wheel aligner Ccd car wheel aligner Ccd truck wheel aligner Laser car wheel aligner Laser truck wheel aligner

A short introduction to GiPA Solutions for parts and service intelligence

In more than 20 countries and 4 continents GiPA Profile In more than 20 countries and 4 continents Only one interest: the automotive aftermarket An independent player One of our strengths: our client portfolio A team of experts specialized in statistics and in the automotive industry A business model which looks towards the future More than 1000 face to face interviews per year More than 200 bespoke projects per year ATO and PAD: one unique methodology and two specifics approaches adapted to each single country A company which helps the specialists of aftersales

Step 1: Market Data 7 7

Bespoke project for Egea: market data Contents Perimeter: Economic, social, cultural changes that may influence the automotive aftermarket business Vehicle population Circulating population of motorcycles, scooters and mopeds Circulating population of passenger cars Circulating population of LCV Circulating population of HDV Major investments in innovative products/technologies by VM (volume/area) Repair Business Universe of independent repairers and average sales turnover Universe of Authorized repairers (AR1, AR2) and average sales turnover for maintenance Overall repair service sales Spare parts sales Inspection Centres Number of licensed ICs’ and sales turnover Number of licensed car and LCV ICs’ and sales turnover Number of licensed HDV ICs’ Trade Shows List of garage equipment trade shows with number of exhibitors and number of visitors (ex ante, ex post). 8

Bespoke project for Egea: market data solution Economic, social, cultural changes that may influence the automotive aftermarket business Vehicle population Circulating population of motorcycles, scooters and mopeds Circulating population of passenger cars Circulating population of LCV Circulating population of HDV Major investments in innovative products/technologies by VM (volume/area) Repair Business Universe of independent repairers and average sales turnover Universe of Authorized repairers (AR1, AR2) and average sales turnover for maintenance Overall repair service sales Spare parts sales Desk-research Economic data from IMF, World Bank, Eurostat…. Analysis aftermarket specialists. Vehicle population Official data In house GiPA data Technological watch Quaterly review of major investments. End of year interviews of VM. Repair Business Survey at repairers Analysis 9

Bespoke project for Egea: market data solution Inspection Centres Number of licensed ICs’ and sales turnover Number of licensed car and LCV ICs’ and sales turnover Number of licensed HDV ICs’ Trade Shows List of garage equipment trade shows with number of exhibitors and number of visitors (ex ante, ex post). Inspection Centres Official data on number of outlets and number of vehicles Survey on price per inspection (for all types) Analysis Trade Shows Listing of all garage equipment trade shows Review of the shows Historic on 3 years 10

GiPA Methodology for in house researches Bespoke project for Egea: GiPA expertise in primary researches GiPA Methodology for in house researches GiPA undergoes exhaustive market survey in more than 30 markets in 4 continents; these in deep market research, focused on maintenance and repair business, allows GiPA team to deliver detailed and updated market data to its customers. GiPA back data holds more than 500.000 face-to-face interviews to motorists and more than 120.000 professionals of repair and parts distribution The same methodology and tools (questionnaire, PAPI) is used in all contents, allowing to deliver homogeneous data for the audited markets. 11

Bespoke project for Egea : market data perimeter Geographical perimeter GiPA is carrying out in deep survey in the area of vehicle care and maintenance business in several EU countries : Western Eastern Germany Poland France Czech Republic Italy Slovakia United Kingdom Hungary Spain Slovenia Portugal Romania Belgium and Luxemburg Netherlands Switzerland GiPA has already sourced data some other countries : Austria, Bulgaria, Denmark, Greece, Ireland, Finland, Norway, Sweden. We would suggest not to not to integrate Baltic's countries, Cyprus and Malta. The main changes that occurs in the world suggest to focus the market data monitoring on other areas, different from the UE27 area. Russia Turkey China India 12

Step 2: Online Market Monitoring 13 13

Online Market Monitoring Our technical proposal is built around the following points Project Description Technical environment (SAAS) GUI Creation of an extranet (client area) Creation of the administration Budget Planning

Online Market Monitoring EGEA wants to develop a SAAS software (Software as a Service). It will be available on Internet. Access is granted to subscribers only. No special software is required on users' computers (except possibly some plugins). A web browser like Internet Explorer is sufficient. The software solution is based on the Mac D©, Monitoring of activity by Declaring Companies developped and available on GiPA Extr@net.

Online Market Monitoring How it works EGEA national affiliates upload each semester or each year their figures (note that the possibility that the national affiliates upload directly the figures can be an option). Yearly (or each six months), the national affiliates will get access to European data according their rights. By end of year, GiPA will provide the annual equipment garage market report.

Online Market Monitoring Aggregate of data Data calculation Publishing Declaring Readers EGEA Extranet Country A Monitoring by product / country Country A Semester / annual reports Country B Country B Market data Country C Country C European data

Technical environment The website will be developed in PHP / MySql. The (hosting) accommodation will be on a dedicated server backed up daily to ensure the security and execution speed calculations. The domain will be defined later. We expect a name with the format www.nom (domaine.eu) Any associated email is provided. Access is secured by a username and password, and an HTTPS certificate.

Technical environment The website should be multilingual German English Spanish French Italian Texts and translations will be provided by GiPA. EGEA will review the technical terms.

Graphical user interface (GUI) The GUI will be that of EGEA: http://www.egea-association.eu That means, Logo Colours Patterns and fonts The requested technical elements will be provided by Egea.

Creation of an extranet (client area) : directory tree In the client area, the map will be as follow: Welcome page (manageable text) Access monitoring (statistical tools): 7 images 5 images corresponding to the 5 product families. 1 image for the country ‘reports’ 1 image for Market Data / Global report Data entry (the data will be validated by the administrator). Contact Us Imprint

Period (to be chosen by: each six months or each year) Technical backstage As seen previously, the aim is to let the user handle a software for the statistical analysis of the parameters by indicators. Several features allow you to modify the views. Items : Countries Period (to be chosen by: each six months or each year) Category « List of products » + a second level by product Indicators: Variation compared to the same period year -1 Variation compared to previous period Evolution index base 100 Note: most of theses formulas have already been developed in an existing GiPA monitoring GiPA.

Visual representation: curve or histogram. Future trends Technical backstage Some options: Visual representation: curve or histogram. Future trends None last month/quarter away last 2 months/quarters away last 3 months/quarters away Note : this will be simplified to avoid JAVA plugin. To ensure the data confidentiality, it is important to established rules such as: There should be at least 3 registrants per product result. Calculation will be available only after every participants submit their declarations. The administrator will provide the upload.

Export of PDF files : for indicators pages. Export data Export of PDF files : for indicators pages. Export of XLS/CSV files: for indicators pages. No chart. Visits statistics: Who was online (time , Id, IP) Grouping by national affiliates and date. E-mail reminder Every 10 of the month/quarter: an invitation to upload data 15 of the month/quarter : if any declaration recorded yet, a reminder will be sent to the recipient 20 of the month/quarter : if any declaration recorded yet, another reminder will be sent to the recipient (1 email).

Examples

Example

Hosting option We propose a hosting solution, with a great security (Egea might select an inhouse solution). Hosting, security and domain name (high availability, security and managed services, recovery time guaranteed, HTTPS) Dedicated Server PHP: 590 € / month with JAVA : 790 € / month) Backup Terms following: Virtual server backup 290 € HT / month Test backup: 450 € Annual maintenance (special management, answer questions, etc.). On the basis of 21 hours (3 days) 450 € x 3 = 1350 € / year

Step 3: Market size estimate 28 28

Global market estimate Objectives EGEA seeks to get for each country the global market estimate including : national affiliates declaring companies national affiliates non declaring companies (eg Texa) Imports of other countries (eg China). This specific research aims to complete the declared values by the non covered values. It would provide answers to relevant questions among which 2 are important issues: What is the coverage of the EGEA’s national affiliates declared market ? What is the trend of far-east imports ?

Global market estimate Methodology Experts interviews for annual market estimate We propose to conduct interviews with experts/players involved in the national sales. The interviews will target on : Product market estimate, Share of main players, Competition market development. The experts/players will be selected regarding : The brands/production they sell, The share of voice/market they have. The interviewees will be told that the objective of the research is to estimate the European market, and that the results will be available upon a fee payment. This research will be handle on a yearly base. It cannot be renewed more frequently.

Global market estimate Methodology Experts interviews for annual market estimate Advantages of the methodology : Cost saving. Easy implementation Limits: Based on experts/players knowledge and willingness, Collected values will be rough estimates and not accurate data.

Global market estimate Methodology Experts interviews for annual market estimate Process : . Establish the map of the main players for each country Establish the list of experts to interview Establish a interview guide to collect data Interview experts Analyze data Provide 1st results to the research project Get feed back from experts on some findings. Analyze results Provide estimates.

Global market estimate Objectives Market sizing at buyers level (other solution) Interviews with workshops, OEM, IAM and technical specialist that buy the garage equipment. This research can definitively provides a deepen insight of the market, on an annual base or a more frequent base. The main issue is the number of outlets that have to be interviewed in order to reduce the statistic error level (this has a direct impact on the costs). The interviews will target on which equipment they bought in the last period (semester or year & Which brand they bought. The garages will be selected regarding : The network they are belonging to (Car dealers, IMT, inspection centres….), The universe (total number of outlets per channel). Advantages Accurate data relying on a tough methodology + Not depending on market stakeholder. Limits: Cost + Implementation need strong involvement of EGEA associates. Considering the costs we would not propose that solution, as these will definitely invalidate it.

Budget 34 34

Planning (to be defined)

Marc Aguettez, GiPA Italia Manager Project team GiPA Marc Aguettez, GiPA Italia Manager Allal Boukouch, GiPA International ad hoc manager Nemesis-Studio Grégory Vallette, It Development Manager

Budget (IT management) : Investment on Online Market Monitoring (one off/investment) Description Qties Unit price Total € excl. VAT Project management 1 1 063 € Definition of GUI Definition of rights Definition of indicators Definition of data entry tool, content, specific functions Definition of the management/administration Testing 2 2 125 €  Sub-total   8 500 € Specifications 2 100 € GUI 3 125 € Create the database: access rights, country, etc.. 1 000 € Development: architecture user site (page structure) 1 900 € Indicator 1 - Change compared to previous year 2 450 € Indicator 2 - Change from previous period Indicator 3 - Index base 100 evolution 2 900 € Development: data entry 1 450 € Global report (important: estimation without knowledge of the content) 3 900 € Development: reminders by email 2 000 € Development: administration 4 305 € 27 580 € Options Qties Unit price Total € excl. VAT Presenting the tool and training webmaster 3 1 063 € 3 189 € Translations 1 2 000 € Development: specific functions (trend projection, representation curve / histogram) 1 900 €

Annual budget : Equipement garage reports & tool maintenance Annual management Qties Unit price Total € excl. VAT Semester checks 1 1 063 € Semester report 0 € End of year report 10 10 625 € Authorizations, accounts management 5 5 313 € Annual maintenance (special management, answer questions, etc.). 3 450 € 1 350 € Annual service   18 350 € Management options Hosting, security and domain name (high availability, security and managed services, recovery time guaranteed, HTTPS) Dedicated PHP Server and Java 12 790 €  9 480 € Virtual server backup 290 € 3 480 € Backup test Hosting option 13 410 €

Annual budget : Market data EGEA members + Russia Desk research (per country) Repairers surveys (300 interviews per country) Costs   Options Germany x 1 125 € 3 931 € 5 056 € Portugal 1 457 € 2 582 € France 2 326 € 3 451 € Czech Republic Italy Slovakia United Kingdom 2 681 € 3 806 € Hungary Spain 2 102 € 3 227 € Slovenia Belgium Romania Netherlands Bulgaria Switzerland Denmark Poland 1 597 € 2 722 € Greece Austria, Ireland Norway Finland Sweden Turkey Russia 0 € TOTAL 13 14625 51 775 € 12 13500 37 293 € Technology watch Units Base Desk + interviews 6 1 062,50 € 6 375 €

Global market estimate Budget Experts interviews for annual market estimate Data collection EGEA members + Russia Target Base Costs   Options Germany x 20 475 € 9 500 € Portugal 10 176 € 1 760 € France 15 281 € 4 215 € Czech Republic Italy 5 620 € Slovakia United Kingdom 324 € 4 860 € Hungary Spain 254 € 3 810 € Slovenia Belgium 2 810 € Romania Netherlands 3 240 € Bulgaria Switzerland Denmark 4 750 € Poland 193 € 1 930 € Greece Austria Ireland Norway Finland Sweden Turkey Russia Total data 13 175 61 495 € 12 120 28 750 € Analysis 563 € 7 319 € 6 756 € TOTAL 68 814 € 35 506 €

Business model Objectives EGEA seeks to establish a business to finance its tools. The business model asks to the following issues: What EGEA get, and what amount EGEA invest for it ? What the EGEA national affiliates get and what they invest for it? What the declaring companies get and what they invest for it? What the non declaring companies get and what they invest for it?

EGEA (to be amortize in 3 or 4 years) Business model Proposal Description Budget (€ excl. VAT) Options (€ excl. VAT) Financing   For 12 countries Hyp.For 200 members Investment on Online Market Monitoring (one off/investment) 36 080 € EGEA (to be amortize in 3 or 4 years) 3 007 € Annual service 18 350 € EGEA members or affiliates members 1 529 € 92 € Hosting option 13 410 € 1 118 € 67 € Market general data 13 countries 51 775 € 4 315 € 259 € Technology watch 6 375 € 531 € 32 € Market estimate 13 countries 68 814 € 5 735 € 344 € 138 939 € 19 785 € 11 578 € 1 649 € 695 € 99 €

Business model Primary solution Business model ideas The report presented to the European Association and national associations is the subject that can be sold. It remains to define whether at the national level, the document is country-specific or international (identical to that presented in EGEA). It is obvious that the associations will conduct a dissemination of certain information to shareholders, the full report should be available to declaring companies with a modest price. € 200 for associates? 500 € ? To be fully refund to National/European Association (to be defined) as positive integration to the research investment. Non declaring could access to that report at national level for a fee (in order to convince tem to participate to the declaration process). higher for non-associated (x2, x3?). To be fully refund to National/European Association (to be defined)