March 2014 F&I Conference 2014 Keynote speaker – Andy Gruber, Director, Alphera UK

ALPHERA Financial Services March 2014 Page 2 About ALPHERA Financial Services UK ALPHERA Financial Services UK is based in Hook, Hampshire. Alphera operates across the F&I sector and provides retail and commercial finance for franchised dealers, independents and brokers. Worldwide, Alphera provides innovative vehicle finance solutions in more than 25 countries, including the USA, South Africa, Australia and Germany. Alphera had a record year in 2013 with the highest volume, lowest RV risk and lowest credit risk costs in its history. For more information, visit our website:

ALPHERA Financial Services March 2014 Page 3 “F&I Through the Looking Glass” Building Firm Foundations for Sustainable Growth

ALPHERA Financial Services March 2014 Page 4 Economic Overview of the UK Current state of the UK economy Red line stands for central bank target. Dark grey lines stand for 15y-averages with max/min-values.

ALPHERA Financial Services March 2014 Page 5 Economic Overview of the UK Official Growth Forecasts

ALPHERA Financial Services March 2014 Page 6 Economic Overview of the UK Car industry confidence

ALPHERA Financial Services March 2014 Page 7 Economic Overview of the UK Car industry confidence Market Volume – New and Used (million units)

ALPHERA Financial Services March 2014 Page 8 Average age of used car market Economic Overview Age of the current UK car parc

ALPHERA Financial Services March 2014 Page 9 Looking back at Development in the Automotive Market. Suzuki 33, % Skoda 66, % Fiat 60, % Mazda 31, % Mercedes Benz 109, % Seat 45, % Audi 142, % Jaguar 16, % Renault 46, % Land Rover 54, % Vauxhall 259, % Nissan 117, % Ford 310, % Kia 72,0908.2% Citroen 78,3586.4% BMW 135,5836.3% Volkswagen 194,0856.0% Peugeot 105,4356.0% Toyota 88,6484.8% Hyundai 76,9183.5% Honda 55,6602.7% G G G G G F F F P P P P P V V V V A A A A Overall: %

ALPHERA Financial Services March 2014 Page 10 CAP Gold Book. A new RV setting methodology. Plate36/30 average movement 36/60 average movement 0919%18% 1018%16% 1117%15% 1214%10% 13 8% 7%

ALPHERA Financial Services March 2014 Page 11 Great forecasts, great results. All rosy for the F&I Industry?

ALPHERA Financial Services March 2014 Page 12 Change in consumer behaviour. Driven by PCP offers and Hyper Competition. 12 Total private car sales by funding type Source: Glass’s

ALPHERA Financial Services March 2014 Page 13 Hyper Competition deals has started to adversely impacted nearly-new RVs, but not yet 3yr values. 13 ASCI and AMCI trend (moving basket) Source: Glass’s, Jan 2007 = 1.00 (RV £/£)

ALPHERA Financial Services March 2014 Page 14 The Challenge of Change Upcoming FCA regulations FCA

ALPHERA Financial Services March 2014 Page 15 Looking Ahead What will the market look like in 2016/2017?

ALPHERA Financial Services March 2014 Page 16 Conclusion What does this mean for motor retailers? Know your customers and your market: Targeted campaigns Targeted customer retention processes Target the right people for your dealership Target the right lenders

March 2014 F&I Conference 2014 Thank you for joining us.