1 James Mullins Finance Director

Contents  Background and experiences  Developing Cambria  The FD role and business complexity  Driving Cambria 2

James Mullins – CV  Manchester University, BA in Accounting and Finance  Chartered Accountant (ACA) in 2001  Joint Insolvency Examination Board (JIEB) exams in 2005  8 years Grant Thornton in the automotive service team. Including Audit, CF, Restructuring, Secondment at FCE  Cambria May 2007 to date 3

Experiences and lessons learned  Audit – learning the trade, entrepreneurs, development, controls  Corporate Finance – business plans, cash flow modelling, raising finance, stakeholder management, advisory, due diligence, disposals, acquisitions, MBO’s  Captive Finance house – secured lending, external stakeholders views on businesses, internal workings at OEM  Restructuring – cashflow, cost reduction, banking covenants, options assessment  Stakeholder advisory – managing agendas and personalities, presenting options and recommendations  Accelerated M&A – value preservation, risk management, stakeholder management  Insolvency – security structures and pecking order, technical requirements, mechanics of insolvency, risks of buying businesses from insolvency  Growing and developing a business – Acquisition, Integration, Operation  AIM listing - Equity markets, process and perspectives 4

5 Developing Cambria

 27 Dealerships  42 Franchises  17 Brand partners  9 Acquisitions completed 6

Our Strategy  To establish geographic regions with Primary Manufacturer Brand Partners representing minimum of three, maximum of 10 locations with the exception of ultra luxury partners  To grow organically through brand extension and self-financed acquisition to create a £1 billion turnover Group  Regional structure with stand alone autonomous dealerships able to make locally based entrepreneurial decisions - no Head Office  Each region to have the capacity to be developed into £200m turnover business in the medium term  Balanced brand portfolio. Currently: Volume 55%; Premium and Luxury 40%; Motorcycle 5% 7

Group development July 2006 – April Combined Losses pre acquisition c.£9.9m Total Invested in acquisitions at completion inc property £34.5m Total Goodwill paid £346k Total Share Capital raised £10.8m

Buy-and-Build 9

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Buy-and-Build 11

Buy-and-Build 12

13 Driving Cambria

Role of the FD Financial Control and reporting Risk Management Company Secretary LegalProperty ITHR Banking and financing relationships Board of Directors Business Development Shareholders Other stakeholders Professional Advisors

Our Strategy  To establish geographic regions with Primary Manufacturer Brand Partners representing minimum of three, maximum of 10 locations with the exception of ultra luxury partners  To grow organically through brand extension and self-financed acquisition to create a £1 billion turnover Group  Regional structure with stand alone autonomous dealerships able to make locally based entrepreneurial decisions - no Head Office  Each region to have the capacity to be developed into £200m turnover business in the medium term  Balanced brand portfolio. Currently: Volume 55%; Premium and Luxury 40%; Motorcycle 5% 15

Complexity of the Business model – Maximising revenue streams New Car Sales Used Car Sales Finance and Insurance WarrantyServiceBodyshopParts RetailParts TradeFleet Sales Commercial Sales Motability

Complexity of the Business model – Control of the Working Capital New Car Stock Used Car Stock Demonstrator Stock Finance Debtors Manufacturer Debtors Car Fleet Debtors Parts Stock Returns to supplier Parts Trade Debtors Service Warranty Debtors Service Fleet Debtors Bodyshop Debtors

Complexity of the Business model – Complying with Regulation FSAHSE Trading Standards Employment Law

Optimising the return – “The ingredients” Optimal Return An Entrepreneurial Leader Industry Leading Tools A Daily Framework Group Reporting Operational Reviews On-site Trading Reviews Changing Behaviour Communication

The Cambria ‘Tool Box’ Sales Market TrackerI – ControlBCA Auction ViewC It NowCambria Web SitesPostcode trackerContact At OnceSocial MediaEnquiry BuilderGuest ConnectBDM VoiceF&I Internet TrackerCambria AcademyMarketing DeliveryGroup F&I Deals After-sales Cambria LCSEVHCBDM VoiceElectronic ClockingService Plans1 LinkGroup Supplier Deals

Daily Processes

Group Control - Local Contact Strategy TABLE REMOVED FOR CONFIDENTIALITY 23

Group Control - Vehicles displayed on the web TABLE REMOVED FOR CONFIDENTIALITY 24

Group Control - Enquiries 25 TABLE REMOVED FOR CONFIDENTIALITY

Group Control - Sales DOC TABLE REMOVED FOR CONFIDENTIALITY 26

Group Control - After-sales DOC 27 TABLE REMOVED FOR CONFIDENTIALITY

Group Control - Vehicle Stock Control TABLE REMOVED FOR CONFIDENTIALITY 28

Used car stock ROI Days in Stock prior to sale Gross profit per unit 1 to 30 days£ to 60 days£ to 90 days£258 Over 90 days(£78) Days in Stock prior to sale Annualised return on investment 1 to 30 days226% 31 to 60 days62% 61 to 90 days13% Over 90 days-2% Average dealer 85% ROI Top performing dealers 150% ROI Cambria Group 120% Features of best performers:  Used cars = investment  Plan for the life of the car  in line with stocking matrix - ROI  Speculative cars are restricted  Stocking time limits adhered to Highest ROI cars  <30 days in stock  Under £5k  Over 5 years old 29 Source: 2013 AM franchised dealer report

Monthly Operations Reviews General Management Sales Management Service Management Parts Management Business Management Branch Financial Controllers

On-site Operational Reviews

Changing Behaviour – Pay Plans Pay Plans Sales Associates Technicians Service Front- end team Management

Changing Behaviour - Measuring Technician Performance TABLE REMOVED FOR CONFIDENTIALITY

 Key Themes for developing the existing business – Playing the margins – Return on investment – Simple things every day “Aggregation of Marginal Gains” “...you can’t make a 100% improvement in 1 area but you can make a 1% improvement in 1000 areas...” 34

8 potential steps to 2% aspiration 35 2% ROS

Summary  FD role is multi-faceted, have to be able to wear a number of hats  Group growth has been delivered with structure albeit opportunistic  Fire power available to continue adding single and multiple dealerships of varying size  Controlling the business is a daily affair in order that it can be driven  Aggregation of Marginal Gains mean that there are still opportunities for the enhancement of the existing business 36

37 James Mullins Finance Director