Presentation at the E.N.G. Automotive Retail & Distribution 2015 The future is here: Experience the benefit of real-time data and monitoring of the used car market, used car prices and performance of your dealer network - Identify opportunities to increase your residual value - Know the “real” pricing strategies of your dealer network and protect your residual values - Monitor your market share on the used car market - Used car KPI reports presenting stock turn, age of stock, pricing strategy Jörg Höhner, Global Managing Director - Indicata Autorola Group Holding

1. E.N.G. Automotive Retail & Distribution
Amsterdam
March 24, 2015
E.N.G. Automotive Retail & Distribution
Amsterdam - March 24, 2015

2. The future is here:
Experience the benefit of real-
time data and monitoring of the
used car market, used car prices
and performance of your dealer
network
Jörg Höhner
Global Managing Director – INDICATA
AUTOROLA GROUP HOLDING

3. AUTOROLA GROUP
Global leader in online remarketing and automotive IT solutions

4. NO TRIVIAL CHANGE
Transformational impacts through
discruptive technologies

5. NO TRIVIAL CHANGE
Major trends changing consumer buying patterns
The internet empowers
consumers
Smartphones and tablets
are game changers
Consumers take their
homework seriously
Targeted research
results influence buying
decisions
WWW

6. 77% 58% 37% 34%
CLASSIFIED
AD/LISTING
SITES
SOCIAL MEDIA CONSUMER
REVIEW SITES
OEM/DEALER
SITES
NO TRIVIAL CHANGE
Top online research sources for used vehicles

7. “The real voyage
of discovery
consists not in
seeking new
lands, but in
seeing with new
eyes.”
-- Marcel Proust

8. Classified Sites
Dealer Sites
OEM Sites
REAL-TIME INSIGHTS
Real-time data to monitor market dynamics

9. REAL-TIME INSIGHTS
Track price changes for a single vehicle and competition

10. OEM
• Monitor and Optimize
Dealer Network
Performance
• Protect and Increase
Residual Values
DEALER
• Optimize used car
operations
• Increase stock turn
FLEET
• Live Portfolio Value
Analysis
REAL-TIME INSIGHTS
Who can benefit from real time insights

11. MARKET DAYS
SUPPLY
PRICE TO
MARKET
INVENTORY
AGE
PRICING
STRATEGY
STOCK
TURN
MARKET
SHARE
REAL-TIME INSIGHTS
KPIs to guide used vehicle operations success

12. Ratio shows
the strengths
of the
relationship
between
supply and
demand.
It is NOT
average
stock days.
Market
Days
Supply
MAIN KPI: MARKET DAYS SUPPLY
Measures the relationship between supply and demand today

13. NEW KPI: MARKET DAYS SUPPLY
How can Market Days Supply help protect residual values?
Avoid adding more
volumes in a market
already saturated
Know when and how
to price according to
market changes
Volume
Distribution
Pricing
Strategy

14. Price/Market%
Time
RATIONAL PRICING STRATEGY
What it should look like...

15. 1 0 0 %
1 0 0 , 5 %
1 0 1 %
1 0 3 %
6 . 8 0 0
E U R 8 8 M
GERMAN PREMIUM
MANUFACTURER
JAPANESE VOLUME
MANUFACTURER
EUROPEAN VOLUME
MANUFACTURER
1 0 3 %
1 0 3 %
1 0 4 %
1 0 5 %
3 . 3 0 0
E U R 1 2 0 M
9 8 %
9 9 , 5 %
1 0 1 %
1 0 3 %
1 . 7 0 0
E U R 2 2 M
1 - 3 0 d a ys
3 1 - 6 0 d a ys
6 1 - 9 0 d a ys
9 1 + d a ys
ve h i cl e s
1 0 0 % va l u e
ACTUAL PRICING STRATEGY
What it actually looks like...

16. Attractive cars
priced too low
Identify network dealers who
consistently price below the
market
Identify network dealers
without “rational” pricing
strategy
Know when Market Days
Supply is in your favour
„Discount“ dealers
Fresh inventory
priced lower than old
Attractive cars priced
too low
ACTUAL PRICING STRATEGY
Top 3 dealer pricing strategies undermining your RV

17. „DISCOUNT“ DEALERS
Identify network dealers who consistenly price below the market

18. FRESH INVENTORY PRICED LOWER THAN OLD
Identify network dealers without a ”rational” pricing strategy

19. ATTRACTIVE CARS PRICED TOO LOW
Know when Market Days Supply is in your favour
60 days
M A R K E T D AY S S U P P LY

20. GERMAN PREMIUM
MANUFACTURER
JAPANESE VOLUME
MANUFACTURER
EUROPEAN VOLUME
MANUFACTURER
1 - 3 0 d a ys
3 1 - 6 0 d a ys
6 1 - 9 0 d a ys
9 1 + d a ys
INVENTORY AGE
Minimize the profit harming effects of increased market volatility
24%
13%
13%
50%
28%
15%
12%
45%
29%
18%
13%
40%

21. USED CAR MARKET SHARE
Improve the profitability of your used car operations
Benefit:
Dealer network profitability
Increased service, financing,
spare parts, etc.
Risk:
Low market share
Your pricing is being
determined by the
competition

22. OEM/NSC DASHBOARD
Track and monitor the performance of your dealer network

23. BEST PRACTICES
Improve the performance in your used vehicle operations
Monitor your
dealer networks
used car
performance
Make dealer
network pricing
strategy a
primary focus.
Identify and
train dealers not
aligned with
your RV strategy
Keep the dealer
inventory fresh
Monitor
compliance with
certified used
car program

24. ARE YOU READY TO GET YOUR
DEALER NETWORK TO PROTECT
YOUR RESIDUAL VALUES?
Then visit us at our booth and
get a demo and a free trial of
INDICATA.

25. CONTACT