James Mullins Finance Director

1. James Mullins Finance Director

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

3. 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

4. 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

5. Developing Cambria

6. 27 Dealerships • 42 Franchises • 17 Brand partners • 9 Acquisitions completed

7. 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%

8. August 08- September 11- Jul-06 Aug-07 Dec-07 Jan-08 September 09 Oct-09 Dec-09 Feb-10 Mar-11 March 12 Jan-13 Acquisition of Acquisition of 4 Acquisition of 4 Acquisition of 1 Acquisition of Acquisition of Summit Auto dealerships from Addition of dealerships from dealership from Acquisition of Addition of 1 Site Addition of 1 Site Addition of 1 Site Swindon Thoranmart Ltd Group Insolvency franchises Insolvency Insolvency D&F Trading Ltd and 2 franchises and 2 franchises and 3 franchises 3 Franchises 1 Franchise 15 Franchises 4 Franchises 4 Franchises 4 Franchises 2 Franchises 4 Franchises 2 Franchises 2 Franchises 3 Franchises 2 Locations 1 Location 11 Locations 4 Locations 0 Additional sites 4 Locations 1 Location 2 Locations 1 Location 1 Location 1 Location Group development July 2006 – April 2013 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

9. Buy-and-Build

10. Buy-and-Build

11. Buy-and-Build

12. Buy-and-Build

13. Driving Cambria

14. Role of the FD

15. 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%

16. Complexity of the Business model – Maximising revenue streams

17. Complexity of the Business model – Control of the Working Capital

18. Complexity of the Business model – Complying with Regulation

19. Optimising the return – “The ingredients”

20. The Cambria ‘Tool Box’

21. Daily Processes

22. Daily Processes

23. Group Control - Local Contact Strategy TABLE REMOVED FOR CONFIDENTIALITY

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

25. Group Control - Enquiries TABLE REMOVED FOR CONFIDENTIALITY

26. Group Control - Sales DOC TABLE REMOVED FOR CONFIDENTIALITY

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

28. Group Control - Vehicle Stock Control TABLE REMOVED FOR CONFIDENTIALITY

29. Used car stock ROI 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 Source: 2013 AM franchised dealer report

30. Monthly Operations Reviews

31. On-site Operational Reviews

32. Changing Behaviour – Pay Plans

33. Changing Behaviour - Measuring Technician Performance TABLE REMOVED FOR CONFIDENTIALITY

34. 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...”

35. 8 potential steps to 2% aspiration 2% ROS

36. 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

37. James Mullins Finance Director