May 16, 2017

Investor Presentation

2

FORWARD-LOOKING STATEMENTS

Certain information contained in this presentation looks

forward in time and deals with other than historical or

current facts for AutoCanada Inc. (“AutoCanada” or the

“Company”). The use of any of the words “could”,

“expect”, “believe”, “will”, “projected”, “estimated” and

similar expressions and statements relating to matters

that are not historical facts are intended to identify

forward-looking information and are based on the

Company’s current belief or assumptions as to the

outcome and timing of such future events. In particular,

forward-looking statements in this presentation include,

but are not limited to, references to: the Company’s

general strategic plans and growth strategies; future

sales and revenue; future dealership acquisitions and

open point dealerships; the Company’s targets relating

to return on investment and financial ratios; dividend

2

payout policies; future intentions relating to financial

leverage; and the retail automotive industry. Although the

Company believes that the expectations reflected by the

forward-looking statements presented in this presentation

are reasonable, these statements have been based on

assumptions and factors concerning future events that may

prove to be inaccurate. Actual future results may differ

materially. The Company’s annual information form for the

year ended December 31, 2016 and other documents filed

with securities regulatory authorities (accessible through the

SEDAR website www.sedar.com) describe the risks, material

assumptions and other factors that could influence actual

results and which are incorporated herein by reference. The

Company disclaims any intention or obligation to update or

revise any forward-looking information, whether as a result of

new information, future events or otherwise.

3

Prince George

Victoria / Duncan

Maple Ridge/ Abbotsford

Kelowna

Grande Prairie

Edmonton

Ponoka

Dartmouth

MonctonWinnipeg

Calgary

Prince Albert

Saskatoon

Montreal

Laval

North Battleford

OttawaToronto (GTA)

Dealerships

FCA 17

General Motors 9

Hyundai 9

Nissan 5

Volkswagen 7Mitsubishi 2

Subaru 1

Kia 1

Total 51

AUTOCANADA OWNS SOME OF THE TOP PERFORMING DEALERSHIPS

DealershipLocations &Brands

Dealerships 57OEMs 10

Brands 20’16 Total Revenue $2.9 B

New Vehicles Sold 40,032Used Vehicles Sold 19,561

Luxury Dealerships

Infiniti 2

Cadillac 2

Audi 1

BMW / MINI 2

Mercedes-Benz 1

Total 8

4

Platform Brand Mix- New Retail Sales

Sales Platform Mix

European Import

General Motors FCA

Asian Import

16.6%

19.5%

24.3%

39.6%

FOCUS ON IMPROVING BALANCE

5

OPERATIONALEXCELLENCE

Dealership Performance

Same Store Metrics

Improved Margins

New Technologies

COST CONTROL & BALANCE SHEET

Variable Expenses as % of Gross Profit

Interest Expense

Manage Debt & Capital Expenditures

ACQUISITION & GROWTH STRATEGY

Diversification Across Canada

Brand Portfolio Balance

Accretion

Dealer Clusters in Key Markets

Strategic LeversO u r F o c u s

6

Key ThemesCANADIAN AUTO DEALER MARKET

Improving Vehicle Sales in Canada

• Auto retail sector performed well in 2016; new vehicle sales increased by 2.7%, surpassing the all-time record

• In March 2017, Canadian light vehicle sales increase 7.1% Y/Y to 187,540 units

• Advances in technology, styling and safety expected to drive long-term new vehicle sales gains

Auto Retail Sector is a Key Part of the Economy

• Annual spending of $143 billion in 2016 up 9.3% compared to 2014

• Greater than any other Canadian retail segment

Market Highly Fragmented but Continuing to Consolidate

• Canadian dealer market is fragmented with approximately 3,300 dealerships with approximately 2,000 owners

• Industry shifting from “mom & pop” dealerships to larger dealer groups

• AutoCanada is well positioned to capitalize on this industry consolidation

Succession Planning Opportunity Leading to Significant Ownership Turnover

• A significant proportion of dealers will be retiring in the next five years creating a “succession planning opportunity”

• Over 70% of dealers want to be semi-retired or completely out of the business in five years and fully retired within 10 years(1)

• Dealership owners are facing increasing facility capital requirements for OEM branding programs

Public Ownership Evolving in Canada

• OEM acceptance of publicly-listed companies is growing in Canada

• As evidenced by AutoCanada’s acquisition of Mercedes-Benz Rive-Sud in May 2017

(1) Source: PricewaterhouseCooper’s Automotive Trendsetter Report 2012

7

• The auto dealer business model is resilient in adverse market conditions

• Well-established and accepted dealership model has existed for 50+ years in the Canadian marketplace

• OEMs committed to dealership success and profitability

• Four business segments provide diversified and stable revenue

• Dealerships have a variable cost structure, with the parts & service business covering most of the fixed costs of the entire dealership

• Parts & service business is a counter-cyclical and stable recurring revenue stream

DIVERSIFIED REVENUE SUPPORTS STRONG BUSINESS MODEL

24.3%

9.7%

41.4%

24.6%

2016Gross Profit

57.2%25.1%

13.2%

4.5%

2016Revenue

New Vehicle Sales

Used Vehicle Sales

Parts, Services & Collison Repair

Finance and Insurance

8 8

Wellington Motors

ACQUISITION PLAN IN ACTION

• The transaction closed October 1, 2016

• Expands AutoCanada’s Ontario platform

• Annual revenue of $46 million

9 9

Guelph Hyundai

ACQUISITION PLAN IN ACTION

• The transaction closed December 19, 2016

• Expands AutoCanada’s Ontario platform

• Annual revenue of $31 million

1010

Sherwood Park Volkswagen

GROWTH PLAN IN ACTION

• Opened February 1, 2017

1111

Mercedes-Benz Rive-Sud

ACQUISITION PLAN IN ACTION

• The transaction closed May 1, 2017

• Expands AutoCanada’s brand offering to 20

• 2016 annual revenue of $90 million

1212

Audi Winnipeg

GROWTH PLAN IN ACTION

• Construction in progress – expected completion Q4 2017

or early 2018

13

As at December 31, 2015 2016 %Change

New vehicles (units) 42,457 40,032 -5.7%

Used vehicles (units) 20,342 19,561 -3.8%

Parts, service, and collision repair $194M $201M 3.6%

Adjusted net income $39.9M $40.3M 1.0%

Gross profit % 16.8% 16.8% 0%

Basic adjusted earnings per share $1.64 $1.46 -0.18%

Adjusted free cash flow $38.8M $68.6M 76.8%

2016 Snap Shot

14

As at March 31, 2015 2016 2017 % Change

New vehicles (units) 8,933 8,502 8,508 0.1%

Used vehicles (units) 7,393 4,799 4,547 -5.3%

Parts, Service & Collison Repair $43.9M $47.7M $47.3M -0.8%

Adjusted net income $5.6M $6.3M $4.6M -26.4%

Gross profit % 16.6% 16.8% 17.5% 4.2%

Basic adjusted earnings per share $0.20 $0.23 $0.17 -0.06%

Adjusted Free Cash Flow -$7.4M $6.0M $15.2M 152%

Q1 2017 Snap Shot

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As at March 31, Q1 2016 Q1 2017 Q1 2016 Q1 2017

New vehicles 7.5% 4.2% 7.5% 7.4%

Used vehicles 5.8% 7.2% 5.8% 7.2%

Parts, Service & Collison Repair 50.3% 52.1% 50.7% 55.6%

Finance & Insurance 91.3% 91.4% 91.4% 90.9%

RETAIL AUTOMOTIVE GROSS PROFIT

Q1 RESULTS Total Same Store

16

Q1 2017 Snap Shot

$27,267

$10,420

$47,669

$26,353 $25,590

$11,940

$47,284

$26,813

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

New Vehicles Used Vehicles Parts & Services Finance & Insurance

Q1 2016 Q1 2017

Q1 2016 vs. Q1 2017

Gross Profit by Department

17

• New vehicle sales drive high-margin related transactions, including resale of trade-ins, sale of third-party financing, service or insurance products and recurring service and repair business

• AutoCanada sold 40,032 new vehicles in 2016 (1)

NEW VEHICLE SALES

$641 $683

$883

$1,342

$1,668 $1,653 $1,643

19.3 21.5

28.0

36.4

42.5 40.0 40.0

0

10

20

30

40

50

60

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

2011 2012 2013 2014 2015 2016 LTM

New

Veh

icle

s So

ld (0

00

's)

Sale

s (C

$M

)

Sales (C$M) New Vehicles Sold (000's)

Revenue & Units Sold Gross Profit & Gross Margin

$48

$58

$76

$106

$122 $118 $117

7.5%

8.5% 8.6%

7.9%

7.3%7.2% 7.1%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

$0

$20

$40

$60

$80

$100

$120

$140

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M) Gross Margin (%)

Note:(1) 83% of new vehicle sales were made to retail customers, and the balance to lower margin fleet business

Revenue % Gross Profit %

Q1 2017 55.3% 7.4%

2016 57.2% 7.2%

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• Used vehicle sales also drive related higher-margin transactions, including service contracts, reconditioning opportunities for parts and service, recurring parts and service business and financing commissions

• Trade-ins also help support new vehicle sales by reducing the consumers net cash cost of the new vehicle

• The sale of used vehicles are not tightly controlled by the OEM’s, allowing AutoCanada to take trade-ins and resell any vehicle brand

USED VEHICLE SALES

$206 $243

$301

$495

$705 $725 $711

8.7 9.5

10.4

15.7

20.3 19.6 19.3

0

5

10

15

20

25

30

35

40

$0

$100

$200

$300

$400

$500

$600

$700

$800

2011 2012 2013 2014 2015 2016 LTM

Use

d V

eh

icle

s So

ld (0

00

's)

Sale

s (C

$M

)

Sales (C$M) Used Vehicles Sold (000's)

REVENUE & UNITS SOLD GROSS PROFIT & GROSS MARGIN

$17

$16

$20

$30

$41

$47 $49

8.4%

6.7% 6.7%

6.0%5.8%

6.5%6.9%

5%

7%

9%

11%

13%

15%

$0

$10

$20

$30

$40

$50

$60

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)

Revenue % Gross Profit %

Q1 2017 25.9% 7.2%

2016 25.1% 6.5%

19

• Absorption rate of 87% in 2016(1)

• In 2016, AutoCanada completed 863,970 service orders on 928 service bays (year end)

• Parts & service activity is generally considered counter-cyclical

• Vehicle service under the manufacturer warranty must be completed at a franchised dealer providing a large captive market

• Independent repair shops are closing as highly specialized, capital intensive equipment and skilled labour is required to service increasingly complex vehicles

PARTS, SERVICE & COLLISION REPAIR

19

REVENUE & SERVICE ORDERS GROSS PROFIT & GROSS MARGIN

$110 $114

$142

$256

$388 $383 $379

305 309

364

602

848 864 852

0

200

400

600

800

1000

$0

$60

$120

$180

$240

$300

$360

$420

2011 2012 2013 2014 2015 2016 LTM

Serv

ice O

rders (0

00

's)S

ale

s (C

$M

)

Sales (C$M) Service Orders (000's)

$58 $60

$74

$129

$194 $201 $201

52.2% 52.4%51.8%

50.3% 50.0%

52.6%53.0%

40%

45%

50%

55%

60%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)Note: (1) Absorption rate is the extent to which the gross profit of the parts & service segment covers its own operations plus the fixed costs of operating the

dealerships (fixed salaries and benefits, administration costs, occupancy costs, insurance expense, utilities expense and non-floorplan interest expense; excludes all costs pertaining to head office)

% Revenue Gross Profit %

Q1 2017 4.6% 55.6%

2016 13.2% 52.6%

20

• Every vehicle sale presents AutoCanada with an opportunity to increase profits through the sale of additional products such as third party financing or lease arrangements, extended warranties, service contracts and insurance products

• AutoCanada is paid a commission on the transaction and retains no financing risk

− High margin and excellent growth

• Represented 91.5% gross margin in 2016

FINANCE & INSURANCEREVENUE & TOTAL VEHICLES SOLD GROSS PROFIT & GROSS MARGIN

$46 $56

$76

$109

$131

$119 $120

90.7%

92.1% 91.8%

89.9%

91.2%91.5% 91.6%

84%

88%

92%

96%

100%

($10)

$15

$40

$65

$90

$115

$140

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M) Gross Margin (%)

$51

$61

$83

$121

$143 $130 $131

28.0

31.0

38.4

52.1

62.8

59.6 59.3

10

20

30

40

50

60

70

$0

$25

$50

$75

$100

$125

$150

$175

2011 2012 2013 2014 2015 2016 LTM

To

tal V

eh

icle

s So

ld (0

00

's)

Sale

s (C

$M

)

Sales (C$M) Total Vehicles Sold (000's)

Revenue % Gross Profit %

Q1 2017 14.2% 90.9%

2016 4.5% 91.5%