SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS FRED BUCHER : Thank you for joining Eric and me here today. Fred Bucher Eric Brown Group Vice President, Marketing Chief Executive Officer Time Warner Cable Media Dataium/HIS Automotive

MILLENNIALS LIVE IN AN OMNI-SCREEN WORLD FRED BUCHER There are three thoughts I want to leave you with today: 1) Cable is omni-screen – reaching millennial consumers on whichever device they prefer 2) Don’t’ believe everything you read: TV is alive and well - and viewed by millennials – although in different ways and on different devices   3) TV drives digital and vice-versa.

WHO ARE MILLENNIALS, ANYWAY? THEY ARE THE CABLE GENERATION Born at the same time as MTV The most diverse, well-educated and digitally-connected adult generation to date Omni-screen viewers: view content, consume news and shop for cars across all screens and devices Leading vs. railing millennials: Different life stages Account for 27% of auto sales FRED BUCHER Millennials are the largest demographic in the U.S., representing a third of the population. They wield enormous spending power and even greater social influence. To brands and marketers, millennials are potential lifetime customers, if managed appropriately. That’s why we spend time and effort to fully understand the millennial audience. While media stories report that Millennials are all but impermeable to marketing, data shows that not only are they receptive to marketing, but that they proactively try to learn more about the companies they hear about or do business with—and their interest is growing. ( Source: Digiday - 2014: The year in millennial media consumption) Looking deeper into the data, we find that not all Millennials consume media and technology in the same way. They can be segmented into two groups: Leading Millennials: Born 1988 – 1983 (26-32 Years old) and Trailing Millennials: Born 2000 – 1989 (14-25 Years Old) (Deloitte: Digital Democracy Survey Dec 2014) They are at different life stages - Leading Millennials are older, more settled, getting married and having children, and follow more traditional patterns. Trailing millennials are still finding their way and even moving back home, until they have the disposable income to support themselves. (Source: Deloitte, Digital Democracy Survey, November 2014) Millennials accounted for 27% of new car sales in 2014, a 33% increase in only 4 years, according to a new J.D. Power study Source: JD Power

CONSTANTLY CONNECTED TO CONTENT 6.00 am 7.30 am 8.45 am 12.30 pm FRED BUCHER I think, as I walk through the typical millennial consumer’s media day, that many of us in the room will even recognize some of our own media habits. We know that millennial consumers are constantly connected throughout the day, on a whole range of devices. 1.00 am 9.30 pm 6.30 pm 5.30 pm Source: TWC Media Usage Data for measured markets, 2Q 2014

CONSTANTLY CONNECTED TO CONTENT TV commands almost 9 out of 10 minutes of video viewing for millennials FRED BUCHER There is a myth in our industry today that says, millennials don’t watch TV; that they get all their video online from YouTube or Netflix. That’s not true: When you look into the actual minutes spent watching TV or video, traditional TV viewing accounts for 86% of their viewing time. We need to separate the action “watched video online” from the “time spent” for each outlet. Millennials are fluid viewers, consuming content on whichever device is at hand Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015, Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015, Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

43% 57% 41% 28% MILLENNIAL VIEWING EVOLVES AS THEY AGE Leading Millennials TV Viewing on TV 57% Trailing Millennials TV Viewing on TV 43% Trailing Millennials TV Viewing on PC 41% Leading Millennials TV Viewing on PC 28% FRED BUCHER Leading Millennials (ages 26-31) spend a greater amount of their time viewing shows on TV (57%) which is more than the younger trailing millennials, who use TV for only 43% of their viewing. (Deloitte, Digital Democracy Survey, November 2014). When questioned about the media services that they value the most, 75% of leading millennials value paid TV, 10% more than their mobile plan or streaming video. And although they value their phones & tablets, they only spend 7% of their time on each, while spending 57% of their time with TV Leading Millennials are 50% more likely to multitask while watching TV in comparison to Trailing Millennials, making this audience segment prime for omni-screen marketing & messaging. (Deloitte, Digital Democracy Survey, November 2014) Source: Deloitte, Digital Democracy Survey, November 2014

Consumers who used devices to watch original TV content DEVICE VIEWING IS ADDITIVE FRED BUCHER Millennials are still watching TV content – and finding it on the device of their choice TV viewing has changed for all demos, now consumers are watching TV on across devices. This is most prominent in millennials. Consumers who used devices to watch original TV content Source: comScore

57% OF FIRST TIME CABLE SUBSCRIBERS ARE MILLENNIALS CUTTING THE CORD? 57% OF FIRST TIME CABLE SUBSCRIBERS ARE MILLENNIALS Reasons for not subscribing to a MVPD Service FRED BUCHER There has been a lot of news and speculation lately about cord cutting. While it is an issue, the larger issue is under-measurement of viewing on devices. The data leads us to believe that in the long term, the value of the bundle will still be the best offer out there. We see cord cutting as predominantly a cost issue. Trailing millennials have had a hard time finding work, often moving back home. With leading millennials, once they have a steady income, they subscribe to cable. Cord Cutters are fairly diverse in terms of age with a majority living in lower income households. Only one-third of “cord cutters” are Millennials and they mainly cut the cord due to economics and their own personal finances. Thus it is important to understand that cord cutting is more a result of income than age or life stage. According to VAB, 58% of people that don’t have a multichannel subscription state it’s because “the cost is too high,” which is a significant increase from the prior year. Only 18% say they don’t subscribe because online TV programming fulfills their video needs; a substantial 30% drop from last year. Source: VAB: Disconnected Reality: Untangling the Great Cord Cutting and Streaming Misconception, August 2015

MILLENNIAL AUTO BUYERS FRED BUCHER

60% would rather buy than lease a car MILLENNIALS CARE ABOUT CARS And they’re ready to buy Millennials care about cars 60% would rather buy than lease a car 33% plan to buy and/or lease a new car in the next 6 months 33% would prefer to purchase a vehicle without negotiating 60% “would feel like losers without a car” 76% would rather give up social media for a day than their car FRED BUCHER A recent J.D. Power study debunks they myth that Millennials don’t like cars. It turns out that they not only like them, they are ready to buy. Leading millennials are maturing, finding secure employment, moving to the suburbs and smaller cities to plant their roots – and they can now afford a car. You won’t win their sales today or their loyalty for a lifetime if you try to reach them like you reached their parents on Broadcast News. Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015, Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015, Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

MANY PATHS TO PURCHASE The average American has 4 digital devices and spends 60+ hours a week across devices. FRED BUCHER Millennials use all their devices to research auto purchase, and TV is still unparalleled to effect decisions. TV is the strongest driver to digital. Sources: JD Power April 2015, Viacom/MTV, “Millennials Have Drive”, January 2015; Bloomberg, “Millennials Embrace Cars, Defiyng Predictions of Sales Implosion, April 20, 2015; Consumer Affairs, “Millennials Buy Cars Differently Than Their Parents”, 9/15/14

CONDUCT RESEARCH ON MOBILE FRED BUCHER There’s a reason why the younger generation may be so self-assured at car talk: They’re using their mobile devices at high rates to conduct research before even stepping foot on the lot. In the Edmunds survey, millennials overindexed across the board when it came to mobile car shopping activities including reading reviews, locating vehicles for sale and researching pricing. Going further, it’s noteworthy that 41% of millennials used mobile to read reviews, considering that the Crowdtap survey found that online review sites were the second most influential source in deciding to purchase, cited by nearly one-fifth. Source: Edmunds.com, “Millennial Car Shopping Behaviors” as cited in press materials, March 27, 2015

Minutes spent per month on YouTube vs. TV SCALE MATTERS FRED BUCHER Ad supported TV continues to drive viewership; online viewing, such as YouTube, is a small segment We need to level the playing field – impressions are not the same as minutes viewed. When you convert the YouTube impressions into time spent, you get to see the full picture. Note: Time spent = minutes per month Minutes spent per month on YouTube vs. TV IMPRESSIONS ARE NOT THE SAME AS TIME SPENT Sources: comScore Video Metrix September 2014 YouTube Partners Report, P13+; Nielsen Npower Live+7 Days, P13+, 9/1-9/30/14

Change in DVR + VoD Viewing OVERALL VIEWERSHIP IS GROWING MEASUREMENT IS NOT KEEPING UP Change in DVR + VoD Viewing Change in Live Viewing FRED BUCHER While the current TV season shows a drop in viewing on a live basis to prime time programs, there actually has been over a 16% increase in viewing to the same programs when looking at viewership over 28 days from DVRs and video on demand. Because the industry has been so focused on the smaller picture of live or even 3 day viewership, the bigger picture of viewership growth across time and devices is being missed.   The value of subscriptions is at an all time high and subscribers are taking full advantage of TV content via VOD and SVOD services on the set top box. Downloads of TV Everywhere apps are up 31% Year over Year and usage is projected to reach 25% of subscribers this year. TV content is premium content that audiences want to view, regardless of the device. And that includes millennials. +16.4% -8.9% TVE APP DOWNLOADS – UP 31% Source: Rentrak – Change in Overall TV Usage over 28 Days, 2013-2014 TV Viewing vs. 2014-2015 TV Season Sept.-May. 34 Common Networks Prime Time Programs

STREAMING IS ADDITIVE Multichannel Subscribers vs. Total U.S. Connected Devices 2015 vs. 2018 Projected (in Millions) FRED BUCHER Streaming is Not a Zero-Sum Game Contrary to mounting perception, over the next three years the growth of connected devices and streaming services isn’t projected to come at the expense of multichannel subscriptions. Source: Source: SNL Kagan October 2014 for connected device projections; SNL Kagan 2015 for multichannel subscriber projections Only 9% of cross-platform homes are responsible for a vast majority of all the streaming done in the U.S. (87%). Interestingly enough, the heaviest streamers are voracious video consumers who watch more TV than either light streamers or people that don’t stream at all; and they even devote more than 90% of their viewing time to TV. Source: SNL Kagan October 2014 for connected device projections; SNL Kagan 2015 for multichannel subscriber projections

SOCIAL AND TV DRIVE EACH OTHER Social media and TV Go Hand in Hand…One Driving to The Other 76% of Brand Tweets are sent by people who Tweet about TV Twitter TV authors drive 3x more brand conversation than non-TV authors FRED BUCHER Source: 1. Google, Sterling Branding & Ipsos, The New Multi-screen World: Understanding Cross-Platform Behavior, U.S., August 2012; 2. Nielsen/IAB Video Study 2012

SCREEN AGNOSTIC THE OMNI-SCREEN APPROACH The average American has 4 digital devices and spends 60+ hours a week across devices.1 SCREEN AGNOSTIC FRED BUCHER When it comes to digital advertising, the cable industry is truly screen agnostic. Our friends in the online world say, “put digital first” … … but we prefer to put your objectives first. We focus on your marketing goals, leveraging every screen to develop the most effective solution. Our approach enables us to reaches consumers wherever they are watching cable TV content, including connected TVs, tablets, smart phones and game consoles.

TV + Digital Increases: THE OMNI-SCREEN APPROACH TV + Digital Increases: Ad Recall 20% Likeability 27% FRED BUCHER TV and Digital are not an either/or proposition. To reach millennials, you need both – and together they drive both ad and brand recall. I’m now going to hand over to Eric Brown, Chief Executive Officer of Dataium, who’s going to go into more detail about how millennials behave when they get to a dealer’s website. Brand Look-up 25% Message Recall 40% Source: 1. Google, Sterling Branding & Ipsos, The New Multi-screen World: Understanding Cross-Platform Behavior, U.S., August 2012 2. Nielsen/IAB Video Study 2012

AUTOMOTIVE SHOPPING COMPARISON ERIC BROWN This document compares automotive shopping behavior on Dataium’s network of automotive websites for Millennial and non-Millennial generations. Methodology IHS provided a list of people, along with generation, income, marital status, and gender Dataium matched this list to internet users across its network by matching to email or phone number Dataium then compared the shopping behavior of users matched in step 2 Unless specifically noted, results include behavior observed on dealer and portal websites Basic Stats Sample Size Millennial: 19,636 unique users Non-Millennial: 17,542 unique users

AUTOMOTIVE TRAFFIC BENCHMARKS ERIC BROWN Source: Dataium Network

AUTOMOTIVE INTERNET USAGE Millennials are not that different Millennials Other Portal Usage 29% 29% Facebook Referral 1.2% 1.2% ERIC BROWN Source: Dataium Network

AUTOMOTIVE INTERNET USAGE Except when they’re different Millennials Other Mobile Usage 13% 10% Female Shoppers 49% 43% ERIC BROWN Source: Dataium Network

AUTOMOTIVE TRAFFIC BENCHMARKS ERIC BROWN Source: Dataium Network

AUTOMOTIVE TRAFFIC BENCHMARKS ERIC BROWN Source: Dataium Network

AUTOMOTIVE SHOPPING BEHAVIOR Shopping behavior is consistent Millennials Other Length of shopping cycle 3 days 3 days Time on site same same Pages viewed before lead submission 4 4 Time on home page 18 sec 17sec ERIC BROWN Source: Dataium Network

AUTOMOTIVE SHOPPING BEHAVIOR Some differentiation Millennials Other Peak time of day on site 9 a.m. 4 p.m. Visited credit/finance page 20% 18% ERIC BROWN Source: Dataium Network

SUPERCHARGE YOUR SALES BY CONNECTING WITH MILLENNIALS FRED BUCHER : Thank you for joining Eric and me here today. Fred Bucher Eric Brown Group Vice President, Marketing Chief Executive Officer Time Warner Cable Media Dataium/HIS Automotive