GROUP AUTOMOTIVE INC

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GROUP AUTOMOTIVE INC

• Maximizing Human Capital Through Technology
• Automotive News World Congress
• January 17, 2006

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Group 1 Automotive, Inc.

• Ranked 361 on Fortune 500
• Top 10 dealer group with 94 dealerships across 12
  states
• Revenue run rate of 6.1 billion
• Brand and geographic diversity
• 32 brands
• 142 franchises
• 200,000(1) retail vehicles sold
• 1.6 million(1) vehicles serviced
• 8,900 employees

(1) Pro forma for closed acquisitions as of
9/30/05, annualized.
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Brand Diversity
Total New Vehicle Unit Sales (Nine Months 2005)
(1)
(2)
(1) total GPI new vehicle retail sales, pro
forma for closed acquisitions as of 9/30/05.(2)
total U.S. new vehicle retail sales.
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Revenue Growth History
Revenues
2000-4 Revenue CAGR 11
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Prior Platforms
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Current Regionalization
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Industry Evolution

• Industry evolution
• Public companies start emerging in Europe around
  1987
• Public companies start emerging in the US around
  1997
• Early vision
• Huge, mega-brand dealerships
• Video rental type buying process
• Large volume discounts

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Progress

• Cost efficiencies
• Process standardizations
• Streamlined buying process

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Differentiator

• Similarities
• Same vehicles / same prices
• Manufacturer designated locations
• Manufacturer designated imaging
• Differentiator
• PEOPLE

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The Right Tools
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Technology Empowerment

• Management
• Retain
• Engage
• Empower
• Processes
• Streamline
• Efficiencies
• Effectiveness
• Controls

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Used Vehicle Inventory
GPI Used Vehicles
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Used Vehicle Department

• Previous management tools
• Days in stock
• Instinct
• Experience
• New management w/technology
• Real-time data
• Instant access to historical data
• Market database in lieu of dealership database

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Computer Management Systems

• Used vehicle computer management systems
• Strategic alliance with American Auto Exchange
• Increase transparency
• Increase controls
• Organize and leverage decision-making process

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Used Vehicle Transactions

• On a daily basis
• Sell several hundred new vehicles
• Appraise a total of 700-800 trade-ins

One appraisal per minute of every 12 hour day
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American Auto Exchange

• Provides daily inventory value monitoring
  capability
• Monitors appraisal closing rates
• Identifies vehicles with a high retail sale
  probability
• Provides inventory stocking guides based on local
  market historical demand
• Enables dealerships to see and sell from the
  inventory of other dealerships within a given
  geographic region

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Parts Service Actions
Productive Service Stall Count
Parts Service Revenues
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Service Marketing

• Traditionally
• Service marketing has lagged vehicle marketing
• Direct mail campaigns
• New standards
• Email and electronic media on the Internet
• Customer relationship management CRM

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Service Marketing

• Electronic marketing specialist
• Easy for managers to use
• Precise targeting
• Consolidated,
  clean database
• Customized offers
• Maximize shop capacity utilization

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Emails Collected

• More than 200,000 emails collected in 2005
• We estimate that we will triple that number in
  2006
• More than 1 million in postage and fulfillment
  savings
• More than 200,000 emails sent monthly
• Consistent message
• Response rate 4-5 times better than direct mail

2005 Emails Collected
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Service Drive Technology
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Finance Insurance Technology

• Route One / DealerTrack
• e-Contracting
• Integrated DMS, credit process and menu selling

Increased sales, Smoother transactions
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Summary

• Increased efficiencies
• Reduced overhead
• Improved revenue generation
• Higher customer satisfaction
• Employee empowerment and retention

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GROUP AUTOMOTIVE INC