1. WORLDPAC Program for
Thanks for taking time out of your busy day to join us.

2. Review of WORLDPAC Program & Benefits speedDIAL Demonstration
Agenda
WORLDPAC Introduction
Review of WORLDPAC Program & Benefits
speedDIAL Demonstration
Warehouse Tour
Introductions me, Rodney Baxter
Thanks for the time
Accomplish three things
We’ll most like end at around 8pm
Normally we have the tour at one of our warehouses, you are welcome to arrange a tour if you call ahead
Rodney will talk to you a little about parts at the right time

3. Independent Installer Challenges
2004 State of the Aftermarket Industry Outlook Study states:
“Repair shops feel that reputation, customer service and quality parts are extremely important for customer buying decisions.”
Some of their biggest concerns:
Profit Margins
Technical Training for installers
Access to quality parts for fewer comebacks, defects, returns
New products in stock with timely receipt of new product pricing and catalog information
In 2004 Aftermarket News and it’s sister pub. Motor Age surveyed every market niche in the distribution chain from manufacturers to WDs and jobbers, retailers to independent repair shops, new and used car dealerships and consumers.
In surveying thousands of independent installers, they found that: Repair shops feel..
Today I will talk to you about how WorldPAC can help the concerns of the independent installer.
Where do you get your import parts today?
How do your techs get trained?
On average how many different sources do you go to get quality OE parts?
How do you find out about new information on late model cars?
Do you use on line catalogues and ordering?
(Profit margins for those stores less than $100M were 14%, over $100M were between 38% and 47%. Approx 1500 people interviewed with 40% in the less than $250K range of revenue 25% were up to $500K)
What catalogues do you use?
Do you have a certain SMS that your stores work with?
Is there any central buying?
Do you have your own trucks?
Are you on line?
If you could order 24/7 and have fewer returns would you do it?
What are your biggest challenges to your business?
What percentage of your business is import?
How do you get information about late model cars?
What kind of volume do you do in parts/service?

4. Who is WORLDPAC ?
WORLDPAC is the leader in the import, distribution and delivery of original equipment quality foreign automotive parts and accessories to the independent installer.
We provide you the convenience of doing business with over 400 manufacturers in 16 different countries from one place for European & Asian cars and light trucks.
We have import expertise which is rare to find in this industry….exchange rates, customs regulations, different requirements per country in doing business.
We buy from the same manufacturers who build parts for BMW, Mercedes, Toyota, Honda and others. The only difference is that when it comes off the assembly line….it doesn’t have the car stamp and it goes into a different box. Our primary customer is the independent installer.
We are a two step operation it goes from the manufacturer we buy the part from right into the hands of the installer, the person who turns the wrench.

5. WORLDPAC
Established in 1995 through the acquisition of top tier import parts companies in the automotive aftermarket for 30 years
Over $100M in inventory
1,400 Employees
2 Distribution Centers, 45+ Branches
US & Canada
70K specific parts for over 1M applications
Officially part of The International Group family of companies as of October 2004
Please mention that we are a “sister” company to CARQUEST under the International Group holding company. It is many people’s perception that we are “owned” by CARQUEST.
Both WORLDPAC and CARQUEST are sister companies under the International Group umbrella of companies. We continue to operate and sell our products under separate brands. We are working to find the synergies in selling to common customers, but until then, we go to market separately. Where CARQUEST has an opportunity to offer it’s customers import parts, it now has the opportunity of sourcing those parts from WORLDPAC as opposed to the competition. In this way, CARQUEST has a reliable, quality source of OE import parts at a competitive price. Keeping the sales in the IGI family of companies will certainly lend to higher shareholder value.
Even though we were established in 1995 as WORLDPAC, our company is comprised of companies who have been in the business for 30 years.
Worldwide Trading – Northern CA – European 6 locations
IMPAC – Asian, Swedish – West Coast and Texas 11 locations
Pacific Automotive – Leading 2 step operation in import parts - Portland
Metrix/The Parts Warehouse – New Jersey & Canada – 20 locations (Mercedes and BMW)
Employees have been in the automotive industry for 20+ years, most of the execs have run their own businesses

6. WORLDPAC’S Vehicle Coverage
70,000 part numbers for 25 makes of vehicles for models that are in some cases up to 30 years old. Part numbers sourced from 400 vendors located in 16 different countries.
Mention the reason we started selling the fastest moving high quality domestic parts
– it was for the convenience of our independent import installer who is seeing more
- We don’t intend to be the next CARQUEST, as a matter fact at the end of the day, we’ll end up selling CARQUEST parts at some point in time.
Additional stuff:
The independent import installer continues to be WORLDPAC’s primary target customer. However, as the import and domestic services are blending in the marketplace, WORLDPAC decided to provide the convenience of offering the fastest moving high quality domestic parts to our current customer base. Most customer who own a foreign car, also own a domestic truck, van or car as well. Our intention was to address this shift in making it convenient for our installers. Our intention was never to become an Autozone or CARQUEST size operation relative to domestic parts. It was a defensive move to ensure that we satisfied our customers needs and stave off the competitive.
We call on domestic shops that offer a fair amount of import service in some geographies. In the future, most domestic product will come from CARQUEST.

7. WORLDPAC offers quality OE parts and accessories for:

8. You don’t have to go to the Dealer for these products:
Lower Control Arm for BMWs
Oil Drip pans for Mercedes & Volvos
Transmission Fluid for Honda
Redline High Performance products
Tail lights, Headlamps & bulbs for all vehicles
Window regulators for most vehicles
Gloves & Floor, Seat & Steering Wheel Protectors
These are the items you will pay dearly for from the dealer or jobber. Why?
We invite you to visit our warehouse or local distribution center to touch feel and smell the parts. We have many of these in stock. Why not put the profit in your pocket?

9. Cruise Control Vacuum Pump

10. Headlamp and Tail Light Assemblies

11. Window Regulator

12. Engine Mount

13. Tension Damper

14. Horn

15. Window Motors and Switches

16. US and Canada locations for multiple same day deliveries
We’ve just added Miami and will be adding 8 more locations this year.

17. WORLDPAC’s Competitive Advantage
OE Import Expertise
Knowledge of customs, cultures, currency fluctuations, lead times
Technology Leadership
Online catalog and order fulfillment software (speedDIAL)
Integration with shop management software
Diagnostic tools for import cars (Scan Tool)
Operational Excellence
Nationwide coverage – 2 DCs, 45+ locations and growing
Order processing in 10 minutes, deliveries within 90 minutes on most routes
UPS ground and overnight air deliveries
Saturday deliveries in select markets
Total Solution for customers
Technical and diagnostic training on late model cars
Business management training
Customer First Hotline
On-line community forum to network with other CARQUEST stores
Customer Marketing Services (MyCustomerBuilder)
OE Import Expertise – We have 30 years of experience in the import aftermarket…We know what it takes to do business in other countries relative to customs regulations, foreign exchange rates, lead times, cultural differences etc. We’ve been approached my many of the large retail traditionally domestic players to help get them there sooner. Many have not been successful in providing that “quality” OE image.
We have an industry recognized online catalog and order fulfillment system. Allows you to order 24/7, gives you information about parts, also sold with, invoices, credit due, information about what does and does not come with a part. – Fewer returns, immediate information on new models, parts and information. It’s realtime inventory…
Webparts – allows our customers to build another stream of revenue – we give you access to our online web based catalog and nationwide fulfillment program.
MyShopWizard – If you were a multistore chain, Jobber or WD who bought centrally and wanted all it’s customers to see the inventory available to them and order accordingly, MyShopWizard would allow you to see that inventory through a simple browser.
Scan Tools – how do you diagnose late model cars? What are you going to do about servicing hybrids etc? Just another value added service for our customers.
Marketing Services – How do you retain the customers you have and acquire new customers? We have a number of marketing services that you can use including direct mail, service for customer canvassing on the phone.

18. Sample WORLDPAC Brands
Adding Gates and Delphi
In addition, we are going to be adding the fast moving OE quality domestic parts that our customers use for their convenience. We are not interested in competing with NAPA or Autozone.

19. Why Do Business with WORLDPAC?
BRAND
In depth catalog of superior OE quality import parts
AVAILABILITY
95+% fill rate
SERVICE
Comprehensive program of services and customer support
PRICE
Competitive pricing
An International marketing and consulting firm did a survey of The U.S. Independent Installers a couple of years ago and WORLDPAC won 16 of 20 possible market awards! The awards generally fell into these four categories.

20. WORLDPAC Program
CARQUEST company owned stores and Independent stores are given preferred customer status
Automatic assignment of account numbers, speedDIAL passwords,
and delivery schedules
All independent stores must fill out a credit application and bank reference form to get an open account
Ordering and Delivery
Order 24/7 online by using free speedDIAL software or call
for backup ordering
Download speedDIAL from
All CARQUEST company owned stores are automatically on open account
Credit process is streamlined for all stores
Mode of delivery will depend on route capacity and proximity to branch
Local, overnight and will call delivery methods
Go over one page letter with their information on it
Note: Where we deliver, accounts will get local delivery, where we don’t reach them for local delivery, they will get overnight delivery
Emphasize will call.

21. WORLDPAC Program Pricing Freight Payment
On average 20-50% offer dealer list price plus further discounts for CARQUEST affiliation
Enables you to offer the end customer significant savings from car dealer list price and still make decent margins for OE quality import parts
You will see the following in speedDIAL: car dealer list price and your cost and wholesale price you can charge your customer
Freight
Pre-paid for multiple same day deliveries without an order minimum
Pre-paid on overnight deliveries ($100 order to qualify)
Payment
Forward your WORLDPAC invoices to whoever pays your bills today so that
send a check for payment (P-Cards cannot be used for payment)
Pricing
We are offering the most aggressive pricing to CARQUEST stores that we offer our largest wholesale customers. So your acquisition cost will always be competitive. However, remember, in some instances, our competition may beat us on price given the type of non-OE brand that they offer or that they are trying to “buy” market share in that region. We will not always be the lowest price on all products but for the majority of quality OE import brands, you will be able to win the business and make plenty of margin.
We want your feedback.
For CARQUEST stores who still want to use the wholesale and retail prices as a guide and have questions on where to find the prices in the JCON system, please tell them the following: Key in the part number you are looking for by using WPC as the manufacturer code first before the part number is entered and then press P3 for wholesale and P2 for retail.  The prices that were displayed in speedDIAL reside in those two columns.
If you get a question regarding changes in speedDIAL:
We instituted a change in speedDIAL that is in the process of taking effect and might not have been communicated to all CARQUEST stores.  In the event that you get a question from a CARQUEST store as to why the Wholesale and Retail columns are no longer in speedDIAL and why the Price column header was changed to Cost: We initially instituted the wholesale and retail prices as a convenience for CARQUEST store personnel to have a suggested pricing guide on what to charge their end customer. What we discovered was that more often than not it led to offering the end customer prices that were not competitive in many cases and led to a decision of selling another lower priced product instead of one from WORLDPAC. In addition, the term Price was confusing to many store personnel. As a result, we agreed to remove the wholesale and retail columns from  speedDIAL. In addition, we changed the Price column header to Cost so that store personnel would not be confused about their acquisition cost.  The calculations of Wholesale which is List - 15 and Retail which is List - 5 is still calculated and submitted on a monthly basis to CARQUEST, however the data will reside in the J-CON system only. In this way, it can be used as a guide in pricing the OES items, but allow flexibility at a regional level to charge the customer the appropriate price on non-OES items. It will also help to avoid the "one price fits all" approach. We will be experimenting with more a appropriate wholesale pricing guide that may be implemented in the future, but only after a fair amount of testing in select markets

22. WORLDPAC Program Warranty Returns
12 months or 12,000 miles whatever comes first or the expressed manufacturer’s warranty, whichever is greater
Returns
Saleable merchandise purchased within the last 45 days can be returned with an RMA. All cores must be purchased from WORLDPAC within the last 90 days and returned in original box. Self service returns can be done at any time through speedDIAL
Call tags are generated automatically for CORES
Returns are picked up with your next order delivery
Returns for overnight customers are at your expense except in the case of cores and if there was a mistake made by WORLDPAC
For returns going back on the DC truck an RMA number that you generated in speedDIAL must be written on the product box
Emphasize for all customers, but especially overnight customers that filling out an RMA does not trigger someone to come out and pick up the part. It just means that it is ready to be returned when either UPS or DHL come out to deliver the next part that you ordered.
If someone is on local delivery and the back up warehouse does not have the part and it needs to be shipped overnight, they do not pay freight.
We are addressing the following:
A customer ordered two parts during the day at different times before their cut-off of 4pm and they were both under $100. Currently, even if they come in the same box, they will be charged freight twice. While this the policy, this is not the correct message that we want to convey and we are working on addressing this.
In the interim, we would ask customers to do one of the following:
Accumulate the orders during the day by saving the order, and just re-open it to add to it…then submit it at the end of the day all at once before the cut-off. There is a risk in this because the availability may not be there when they are ready to place the order.
2) Keep the order open so that the products are in reserve the whole time and then just submit at the end of the day before the cut off.
In both cases they can set the alarm in speedDIAL so that it reminds them to send the order. It is not ideal, but it will help matters until we adjust the merge order mechanism in our system for CARQUEST stores.

23. Summary of WORLDPAC Program Benefits
By offering WORLDPAC product:
Save money on OEM quality import parts instead of going to the dealer
Keep the “import buyout part” from going outside of IGI and therefore increase shareholder value
Save time and cut down on returns by using the free online catalog and order fulfillment software (speedDIAL)
Receive pre-paid freight on multiple same day deliveries without purchase minimum requirements expect for overnight which requires a $100 order
Reach common customers with hot shot delivery where WORLDPAC cannot
Choice of multiple high end import OE product brands per application
Access to nationwide inventory from multiple warehouses

24. WORLDPAC Program Implementation
Followed up with free value-added seminars for training on speedDIAL where appropriate
Access program materials through the following website:
Access to a test account to demonstrate speedDIAL to your counter people can be found at the same site
speedDIAL hotline support
Back up ordering: -

26. speedDIAL
DIAL stands for Direct Information Access Link: WORLDPAC’s free, Internet based online catalog and order fulfillment software that gives customers up to the minute information on parts availability and pricing

27. SpeedDIAL
The online catalog contains over 37,000 part images resulting in fewer returns. Today over 61% of all orders are received electronically by customers using this tool.

28. Sample of Features & Benefits
24x7 real time price and availability
High quality/ resolution images
Buyers Guide
Automatically generates and keeps track of returns
Integrated with most popular SMS systems
Benefits
Customer may purchase anytime and knows when and if he can get the part
Increases accuracy (reduces returns)
Helps customer plan inventory
Increases productivity
Better accounting

29. The whole is greater than the sum of it’s parts – Let’s win business together and be the number one call for aftermarket parts in your area!