The slides from Mitchell International's Q2 webinar that took place on May 2nd. The Industry Trends webinar series highlights the metrics presented in the quarterly Industry Trends Report. To view the report: http://www.mitchell.com/industry-trends-report/index.asp

1. Industry Trends Report Wrap-up
Greg Horn
Vice President, Industry Relations
May 2, 2012

2. Our agenda
• Update on Mitchell KPI’s
• A review of the Industry Trends feature article
• A deeper dive on what’s happening with severity
(particularly in Texas)
• New car sales rate update
• In the news
• New technology
• Chinese knock off update
5/1/2012 | Page 2 Confidential and Proprietary. ©2011 Mitchell International, Inc.

3. Mitchell Key Performance Indicators
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7. Third Party APD coverage
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11. | Page 11 Confidential and Proprietary. ©2011 Mitchell International, Inc.

12. The sample size
• I looked at a robust sample size of just under 1.5 million random
estimates.
• I used ‘aged’ estimates from our ‘data pool’ that were more than
90 days old, so I could be reasonably certain that the estimates
reviewed were ‘final’ with all supplements applied.
• The estimates selected for the sample were for repairable
vehicles only, because the cynic in me believes there are certain
appraisers who will ‘load up’ estimates so that an estimate for an
obvious total loss adds up to the amount needed to total a
vehicle.
| Page 12 Confidential and Proprietary. ©2011 Mitchell International, Inc.

13. The findings
• A review of the detail of the hourly operations showed that frame
labor averaged $54.05 per hour, with Domestic vehicles having
the highest hourly frame/unibody labor rate.
• The average hourly operation to pull and square the unibody
after set up was just under 3.2 hours, indicating a fairly modest
pull.
• Interestingly, when split out by vehicle type, traditional ladder
frame light duty trucks averaged over 5 hours of pulling and
squaring after set up.
• Asian vehicles had a straightening frequency 12 percent higher
than European or Domestic makes.
| Page 13 Confidential and Proprietary. ©2011 Mitchell International, Inc.

14. Rising severity?
| Page 14 Confidential and Proprietary. ©2011 Mitchell International, Inc.

15. What is happening with collision severity?
3,200.00
3,100.00
3,000.00
2,900.00
USA Collision Avg Gross $
TEXAS Collision Avg Gross $
2,800.00
2,700.00
2,600.00
May-11
Dec-10
Dec-11
Apr-11
Jun-10
Oct-10
Oct-11
Aug-10
Nov-10
Jan-11
Mar-11
Jun-11
Aug-11
Nov-11
Jan-12
Mar-12
Jul-10
Sep-10
Feb-11
Jul-11
Sep-11
Feb-12
| Page 15 Confidential and Proprietary. ©2011 Mitchell International, Inc.

16. Comprehensive severity is not showing the same trend
3,500.00
3,000.00
2,500.00
2,000.00
USA Comp Avg Gross $
1,500.00
TEXAS Comp Avg Gross $
1,000.00
500.00
0.00
Dec-10
Jun-11
Dec-11
Apr-11
May-11
Jun-10
Oct-10
Oct-11
Aug-10
Nov-10
Jan-11
Mar-11
Aug-11
Nov-11
Jan-12
Mar-12
Jul-10
Sep-10
Feb-11
Jul-11
Sep-11
Feb-12
| Page 16 Confidential and Proprietary. ©2011 Mitchell International, Inc.

17. APD severity trend is similar to Collision
2,550.00
2,500.00
2,450.00
2,400.00
2,350.00
2,300.00
USA APD Avg Gross $
2,250.00
TEXAS APD Avg Gross $
2,200.00
2,150.00
2,100.00
2,050.00
Dec-10
Oct-11
Dec-11
Apr-11
May-11
Jun-10
Oct-10
Aug-10
Nov-10
Jan-11
Mar-11
Jun-11
Aug-11
Nov-11
Jan-12
Mar-12
Jul-10
Sep-10
Feb-11
Jul-11
Sep-11
Feb-12
| Page 17 Confidential and Proprietary. ©2011 Mitchell International, Inc.

18. Texas collision estimate breakdown
1,800.00
1,600.00
1,400.00
1,200.00
1,000.00
Avg Part $
800.00
Avg Paint Mat $
600.00 Avg Labor $
400.00
200.00
0.00
Dec-10
Dec-11
Aug-10
Mar-11
Apr-11
May-11
Aug-11
Mar-12
Jun-10
Oct-10
Sep-11
Oct-11
Nov-10
Jan-11
Jun-11
Nov-11
Jan-12
Jul-10
Sep-10
Feb-11
Jul-11
Feb-12
| Page 18 Confidential and Proprietary. ©2011 Mitchell International, Inc.

19. New & used vehicle trends and the effect on total losses
| Page 19 Confidential and Proprietary. ©2011 Mitchell International, Inc.

20. New Vehicle Sales for 2011
• Globally, Car makers sold 77.7 Million vehicles
• That’s 8,900 every hour!
• The largest fleet purchaser in the U.S.? Enterprise Holdings
• US sales finished the year at 2011 volume of about 13.4 million
vehicles, 10 percent higher than 2010
• Robust new vehicle sales in March, 1.4 million for the month,
highest since 2007, means we are tracking close to a 15 million
SAAR
| Page 20 Confidential and Proprietary. ©2011 Mitchell International, Inc.

21. The top selling luxury brand in the US
• BMW’s U.S. sales rose 15 percent to 26,834 in December, for an
annual total of 247,907
• Mercedes said its sales last month climbed 28 percent to 25,701,
pushing its tally for the year to 245,192.
• U.S. sales at Lexus dropped 13 percent last year to 198,552 units -
- the first time volume dropped below 200,000 units since 1999.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

22. Used Vehicle
• Used vehicle sales totaled 38,792,169 for all of 2011, up 5.2
percent from the prior year.
• December volume surged 11.98 percent, to 3,142,513.
• The year, as a whole saw a surge in private party, or consumer-to-
consumer, sales, especially in the final months of 2011.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

23. In the news
5/1/2012 | Page 23 Confidential and Proprietary. ©2011 Mitchell International, Inc.

24. Honda to recycle Hybrid battery parts
• Honda said on Tuesday it would start the world's first
mass-production process to extract rare-earth metals
from used car
• Honda has partnered Japan Metals & Chemicals to
begin extracting rare-earth metals from nickel-metal
hydride batteries collected from used hybrid vehicles at
its dealers around the world.
• China produces about 95 percent of global rare-earth
supplies and has ratcheted up export controls, sending
prices soaring.
• The newly developed process enables the extraction of
more than 80 percent of rare-earth metals in nickel-
metal hydride batteries. It plans to also use the process
for other parts, feeding the extracted metals back to its
products.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

25. PA 12 resin shortage
• A explosion and fire in
Marl, Germany
disrupted supply of a
critical resin used in
brake components
• The global automotive
industry faces a
“severe” shortage of a
resin used to make fuel
and brake components
that may interrupt
production “in the next
few weeks,” according
to TI Automotive Ltd.
25 Confidential and Proprietary. ©2011 Mitchell International, Inc.

26. New developments in vehicle technology
5/1/2012 | Page 26 Confidential and Proprietary. ©2011 Mitchell International, Inc.

27. The new aluminum bodied SL
• The new Mercedes-Benz SL is 308
pounds lighter than its predecessor
thanks to a brand new body design made
almost entirely from aluminum.
• Expressed in numbers, the body shell
weight is made up of: 44 percent cast
aluminum, 17 percent aluminum
sections, 28 percent aluminum sheet
metal, 8 percent steel and 3 percent
other materials.
• Only the A-pillars and the windshield
frame are made of steel with high-
strength steel tubing inside for rollover
protection.
| Page 27 Confidential and Proprietary. ©2011 Mitchell International, Inc.

28. What is “Sky Active Technology?
• Features a lowered temperature
before combustion and increasing
combustion speed, meaning less
time for knock to develop. To make
this happen, SKYACTIV uses very
high compression ratios (in gasoline
engines) to generate power
efficiently.
• The technology so uses direct-
injection under very high pressure,
compared to most current engines,
the previous 2.0L engine uses 43 lbs.
of fuel pressure, while the new
SKYACTIV 2.0L is at 2,900 psi.
• 15-percent lower fuel consumption
and CO2 emissions while achieving
15-percent more torque at higher
rpm
Confidential and Proprietary. ©2011 Mitchell International, Inc.

29. BMW thermal management A/C
On an icy winter morning, your car's
interior isn't always the most pleasant
place to sit. Your hands and toes get cold,
and the screen and side windows do their
best to ice or steam up. Likewise, on a hot
day, you want that interior as cool as
possible.
BMW's two-zone climate control system
will help on both counts, concentrating
heat to quickly defrost the windscreen
and warm your feet when it's cold, and
using solar compensation--which adjusts
the airflow depending on the intensity
and angle of the sun--to deliver cool
blasts of air to where ever is most
effective on those hot and humid days.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

30. Bi-Xenon Headlamps
• Bi-Xenon Headlights refers to HID
(High Intensity Discharge) Xenon
headlights that offer both low and high
beam lighting from a two headlight
system
• A bi-xenon system eliminates the need
for a separate halogen high beam
bulb/lens by either moving the xenon
bulb within the lens or by moving a
shield up or down in front of the bulb
• A bi-xenon system typically features
dynamic headlight leveling and on
some vehicles direction adjustability.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

31. The Toyota version of the Mood Ring
Some of the actions the system can take include
producing more safety reminders if the driver
seems distracted or even directly controlling the
car either by braking or steering to avoid an
obstacle.
An angry driver, for example, could be alerted of a
potential hazard such as a child crossing the road
much earlier than a driver who is in a calm or
neutral state.
The system can detect which direction the driver is
facing so could warn of a hazard located in the
opposite direction that the driver is looking in.
The technology works by using sensors that take
readings from 238 separate points all over the
driver’s face and calculates the emotions equally.
Toyota engineers explained that the technology is
still in its infancy though we could see some
elements of it in Toyota’s cars in around six years.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

32. Driving by the seat of your pants!
The Cadillac XTS Safety Alert Seat
• The XTS features industry first driver's
seat that vibrates to warn drivers of
crash threats while driving and parking.
• The patented Cadillac Safety Alert Seat
generates vibrating pulse patterns on
the left and/or right side of the lower
bolster to alert the driver of potential
dangers, such as drifting from a traffic
lane or toward nearby objects while
parking.
• Threats from the front and rear trigger
pulses on both sides of the seat.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

33. Volkswagen Electric Sun visor
• A sun status sensor and a sensor
that determines the eye position
of the driver both feed signals to
the computer
• The computer calculates the
point of sunlight entry within the
viewing angle of the driver's
eyes.
• The computer then produces a
dark "spot" in the glass). The spot
moves across the windshield as
the car changes direction
Confidential and Proprietary. ©2011 Mitchell International, Inc.

34. Now for a Quick Poll…
Which technology do you think is the most useful?
A. Thermal management A/C
B. Bi Xenon Headlights
C. Toyota Mood Technology
D. Cadillac Seat alert
E. VW electric sun visor
5/1/2012 | Page 34 Confidential and Proprietary. ©2011 Mitchell International, Inc.

35. Dodge Dart Wireless Charging Pad
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36. Chinese market update
5/1/2012 | Page 36 Confidential and Proprietary. ©2011 Mitchell International, Inc.

37. Hyundai copy
5/1/2012 | Page 37 Confidential and Proprietary. ©2011 Mitchell International, Inc.

38. JAC 4R3
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