Russian Automobile DealersConvention 2017

Results of the ThirteenthCar Dealer Satisfaction Index – DSI13

12 April 2017Andrey Tomyshev

Head of the CIS Automotive Group

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April 2017

Thirteenth Car Dealer Satisfaction Index Survey

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Methodology

► Sales data are historical actuals.

► The Dealers’ Opinion is a forward-looking index of their confidence in the brand’sfuture.

► The Dealers’ Opinion takes into account the following key aspects of relations withautomotive manufacturers:

1. Sales of new cars

2. After-sales service

3. Sales of used cars

4. Financial arrangements

5. Retention and support of the dealer network

6. Advertising and promotion

7. Communication and feedback.

► The index includes opinions on those brands for which at least 10% of the dealernetwork gave their vote (based on estimates of ROAD and EY).

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Respondents

► The survey includesthe opinion of 722dealer centerscovering 24 brands,which passed the 10%threshold.

► The number of surveyparticipants totaled750 dealer centersand 31 brands.

Sources: AEB data, EY analysisNote: Data include light commercial vehicles.

Brand % ofparticipationin the survey

Brand salesin 2016

Position bysales in 2016

Brand salesin January-March 2017

Growth fromJanuary-

March 2016

GAZ 81% 55,803 8 10,723 9%

MITSUBISHI 50% 16,769 21 4,253 -16%

RENAULT 39% 117,230 4 26,108 12%

HONDA 38% 1,747 34 360 -21%

FORD 37% 42,686 12 9,380 -3%

LIFAN 36% 17,460 20 3,307 -9%

BMW 31% 27,507 15 6,942 -7%

MAZDA 27% 21,543 17 5,234 15%

HYUNDAI 27% 145,324 3 30,304 3%

LADA 26% 266,296 1 61,447 8%

AUDI 25% 20,705 18 3,615 -26%

SUZUKI 20% 4,520 28 975 -43%

CHERY 19% 4,655 27 1,044 -22%

NISSAN 18% 70,464 7 17,598 -14%

MERCEDES-BENZ 16% 43,215 11 9,582 -12%

UAZ 16% 48,848 10 9,824 4%

VOLKSWAGEN 14% 80,591 6 19,205 12%

DATSUN 13% 18,772 19 6,567 50%

TOYOTA 13% 94,564 5 19,886 -11%

PORSCHE 13% 4,961 26 761 -34%

SKODA 13% 55,386 9 12,686 2%

JAGUAR LAND ROVER 12% 11,195 22 2,747 5%

KIA 10% 149,567 2 37,310 13%

LEXUS 10% 24,116 16 4,985 1%

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Top brands which failed to reach the 10% threshold

Sources: AEB data, ROAD, LMC Automotive, EY analysisNote: Data include light commercial vehicles.

Brand % ofparticipationin the survey

Brand salesin 2016

Growth from2015

Position bysales in 2016

Brand salesin January-March 2017

Growth fromJanuary-

March 2016INFINITI 9% 4,517 -18% 31 1,477 27%

VOLVO 8% 5,777 -26% 26 1,152 34%

GM-AvtoVAZ 8% 28,604 -9% 14 n/a n/a

SUBARU 8% 5,638 -18% 27 1,056 -23%

JEEP 6% 1,269 -38% 40 376 9%

RAVON 6% 1,403 - 37 1.629 -

GEELY 4% 4,473 -61% 32 510 -72%

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Not rating aloneThe survey highlighted the development priorities from the standpoint of the dealers

Sales of newcars

Maintenanceand repairs

Advertisingand promotion

Financing

Developmentof

IT systems

Sales of usedcars and trade-

in

Successfactors

Dealernetworkdevelopment

Logistics

Manufacturers

Dealers

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Five priorities from the standpoint of dealers

Priority Thought leadership Area

Balance the supply volume and model rangedepending on the country’s economic environment.

Increase the dealers’ involvement in planning. ► Build dynamic supply modelsbased on scenarios taking intoaccount the increased influence ofmacroeconomic factors

► Sales of new cars► Pricing► Risk analysis► Logistics

Optimize the pricing and bonus policy taking intoaccount regional specifics, competitors' prices andmargins of specific services, spare parts and cars.

Ensure greater involvement of dealers in preparingproduction plans to ensure their fulfillment on atimely basis.

Optimize the allocation of spare parts, cars andquotas.

► Common IT environment – ITsystem integration

► Mobile access

► Planning► Logistics

Optimize the size of the dealer network dependingon the degree of market saturation.

► Consolidate dealer centers,restructure inefficient companies

► Optimize sales channels

► Dealer networkdevelopment

Enhance positions of the authorized dealers inservices.

Enhance support of advertising budgets with anemphasis on "sales-focused" advertising.

► Joint promotional events relating toservice centers

► Train service centers' employees► Use new advertising channels

► Maintenance andrepairs

► Advertising andpromotion

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DSI-13 results

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Support for sales of new cars by manufacturer

Market average

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After-sales service

Market average

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Support for sales of used cars by manufacturer

Market average

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Financial arrangements

Market average

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Retention and development of the dealer network

Market average

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Advertising and promotion

Market average

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Communication and feedback

Market average

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Leaders of satisfaction index by brandsApril 2017

3

12

No. 1, 2 and3 in thefollowingcategories:

No. 2:•Sales of new cars•After-sales service•Sales of used cars•Dealer networkdevelopment

•Advertising andpromotion

•Communication andfeedback

No. 3:•Financialarrangements

No. 1:•Sales of new cars•After-sales service•Dealer network development•Advertising and promotion•Communication and feedback

No. 2:•Financial arrangements

No. 1:•Financialarrangements

No. 3:•After-sales service•Sales of used cars•Dealer networkdevelopment

GAZ CHERYLIFAN

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Overall satisfaction index by brandApril 2017

Market average

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Appendix

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Prior ranking leaders2008-2016

August2008

April2009

August2009

April2010

August2010

August2011

October2012

April2013

October2013

April2014

April2015

April2016

April2017

AUDI

SKODA

LEXUS

PEOGEOT

CITROEN

KIA

GAZ

TOYOTA

VOLVO

RENAULT

MAZDA

MITSUBISHI

NISSAN

LIFAN

CHERY

6 1 -1 1 1- - 1- 1 1- 1 1- 1 15 2 -- 1 -- 1 -- - 3- - 21 3 1- - 1- 1 -- - 1

1 2 3111112

2 3

2 3

2 3

2

3

22

13

33

1

2

3

1 1 1 1

2 2 1

33

3

2

2

3

1

2

3

Thank you!