Partnership AVIS / ARVAL on used car sales Laurent SCULIER & Jean-Luc CHAPUT 23-24 January 2012, VO SUMMIT Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 2 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 3 From crisis management to discipline and innovation: ■ Reinforce our investment into remarketing operations, as a strategic tool ■ Reduce holding periods to maximise residual values while reducing maintenance costs ■ Adding value to our relationship with key OEM’s (buyback) ■ Develop B2B online remarketing tool to enlarge customer base and maximise resale values ■ Diversification : ■ Geographical distribution of used cars sales ■ Diversify profile of material ■ Expend remarketing channels 4 VO SUMMIT| 23-24 January | 4 We aim to sell 70% of the used cars through our own remarketing B2B on line tool ■ Stage 1 – Harmonize fleet data ■ Stage 2 – implement Group wide remarketing platform to be defined to be defined VO SUMMIT| 23-24 January | 5 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 6 Who are the partners? Arval is number 2 in Europe in full service vehicle leasing: ■ Part of BNP Paribas Group ■ With a total leased fleet of 676,100* vehicles ■ With a presence in 22 countries ■ With 4,400 employees VO SUMMIT| 23-24 January * (end of June 2011) | 7 Avis Group (pre-acquisition) Avis Europe plc Avis Budget Group <5,000 locations Europe Africa Americas Middle East Australasia Asia 166 countries VO SUMMIT| 23-24 January | 8 VO SUMMIT| 23-24 January | 9 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 10 Why the partnership? ■ Avis sells 30,000 used cars (at risk) per year ■ From 9 to 24 months old and in average 30,000 km ■ With a significant part of petrol vehicle ■ Mainly cars ■ Arval sells 200,000 used cars per year ■ From 24 to 60 months old and in average 100,000 km ■ Mainly diesel vehicles ■ Private and light commercial vehicles Together they can offer to their customers a very complementary mix of cars, in complementary geographies VO SUMMIT| 23-24 January | 11 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 12 Objectives and benefits of the partnership The collaboration between Avis & Arval in Remarketing… … is NOT simply an opportunity to share costs ■ although the scenario must make economic sense for both parties … is based on observation that product ranges do not overlap: Arval and Avis do not compete in the Remarketing space ■ Brands ■ Profile Age & mileage … results from convergence of strategic views ■ Avoid third party aggregators in order to defend a competitive advantage in remarketing. ■ Offer an extended mix of vehicles in order to attract buyers ■ Sides benefits in joined procurement (damage assessments, parking fees, transportation) 13 VO SUMMIT| 23-24 January | 13 Objectives and benefits of the partnership ■ We have the same view to develop direct business with used car dealers ■ For Avis a tool ready to use ■ Already operational ■ Develop with real business expertise VO SUMMIT| 23-24 January | 14 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 15 What is doing MotorTrade? ■ MotorTrade is an internet platform self developed by Arval ■ To facilitate direct sales to car dealers (immediate purchase or submission of bids) ■ Already used in more than 10 countries and 20 before the end of the year ■ 7,000 vehicles are sold each month (more than 100,000 since the launch) VO SUMMIT| 23-24 January | 16 Screenshot example (Branding in progress) VO SUMMIT| 23-24 January | 17 Screenshot example (Branding in progress) VO SUMMIT| 23-24 January | 18 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 19 Development of MotorTrade at Avis, 3 countries live by May 2012 • France is now fully rolled out: • Damage and picture process fully automated • Number of active buyers is 117 (total number of buyers is 529) and is growing by 10 to 15 a week • 1 sale per week • 149 cars sold (30% conversion rate) • Sales performance “in line” with market – environment is challenging • Spain is on its way: • Strong buy-in from local teams • Benefit from FR experience with great support from Corporate entities • Implementation will start in February – objective is being operational in April • Italy kick off meeting early February, local meeting already took place: VO SUMMIT| 23-24 January | 20 Agenda ■ Introduction ■ Partners presentation ■ Why the partnership ■ Key benefits ■ MotorTrade key features ■ MotorTrade development at Avis ■ Conclusion VO SUMMIT| 23-24 January | 21 Conclusion • Very resilient model due to larger customers base and global approach •Supports better discipline and transparency in remarketing processes, including in cross border trading •Great adding value for potential and existing customers •Support residual values improvements by matching demand and supply at the best price possible VO SUMMIT| 23-24 January | 22 Thank you for your attention!