Ian Beavis, EVP Global Auto

2013 has experienced record breaking growth for the US Auto Industry
SAAR is
16.1 million, up
6 million sales since
2009
Incentives average
$2,500 per
car down from over
$4,000 since
2008.
2013
New vehicle price average
$31,252, up over
$3,000 since 2009
17,700 new car dealerships down from
20,000 in
2008
Leasing is
27.6%, the highest percentage since 2006
Prepared for: TVB
Source: Automotive News 3

• Credit is easier to get, the average loan amount is $26,526
• Captive Finance companies’ portfolios are over 70% Prime
• The average age of the US fleet is 11.4 years , the highest since WW2
• Franchised dealers are increasing their share of the vehicle maintenance pie
• Certified Pre-Owned sales are close to 2 million units and continue to grow rapidly
Prepared for: TVB
Source: Automotive News 4

Chrysler and Fiat sales experienced the 41st consecutive months of sales gain
Cadillac had the best sales month since 1989
Ford F-Series sales YTD was the most since 2006
GM’s had their best month since 2008
VW topped 40,000 sales , only the 3 rd time in 40 years
WAS THE HIGHEST SALES VOLUME FOR THE AUTO
INDUSTRY IN 75 MONTHS
Prepared for: TVB
Source: Automotive News 5

OEMs are making record , or near record profit in the US
Auto plants are running at maximum capacity
Sales per dealership are higher than ever
Most dealers are enjoying the highest profit in 10 years
All OEMs have robust product cycle plans, with improved technology and quality
Prepared for: TVB
Source: Automotive News 6

Though the hope is for continued growth, there is much to be done for this upward trend to continue
CAR MARKET NOT EXPECTED TO GROW SIGNIFICANTLY IN THE NEXT 5 YEARS
Make an impact Uncommon emotion
• Factors Affecting Growth
• New and expensive manufacturing, materials and technology will increase vehicle cost and put further pressure on affordability
• Pricing transparency will put pressure on profitability
• What The Industry Needs To Do
• Invest heavily to achieve new CAFE regulations
• Seek additional sources of revenue, particularly OEMs and dealers
Prepared for: TVB
Source: Automotive News 7

Marketing tactics are in the crosshairs
OEMs need to SQUEEZE out any WASTE in procurement, product development, manufacturing and distribution
Dealers and OEMs must CONNECT with a smaller pool of
REAL CUSTOMERS
Areas that PROVE they REACH auto prospects will grow dramatically
PRECISION MARKETING = LONG TERM SUCCESS of a new model
TELEVISION ( video in all its forms ) is ESSENTIAL
Prepared for: TVB
Source: Automotive News 8

The importance of precision marketing
Cut through the clutter and breakthrough the long purchase cycle
Improve creative across platforms
Place advertising where buyers are watching
Prepared for: TVB
Source: Automotive News 9

With similar viewing habits to average consumers, primetime is the top daypart to catch car buyers’ attention
Average Rating by Daypart and Viewer Type August 2012-July 2013
20
15 13,5
11,6
15,1 14,8
10 8,6
7,1
5,4
4,7
5,8
4,4
6,0
5,2
5
0
Weekday
Morning
Weekday
Daytime
Early Fringe Primetime
Access
Primetime Late Fringe
Persons 18+
Source: AdViews, August 2012- July 2013 , Persons 18+.
Car Buyers 18+
10

On average, most auto brands focus their advertising on early fringe, primetime, and late fringe/overnight
15%
10%
5%
0%
% of Gross Ratings Points by Car Manufacturer August 2012- July 2013
30%
25%
20%
20%
14%
8%
Weekday
Morning
Weekday
Daytime
15%
Early Fringe Primetime
Access
22%
20%
Primetime Late Fringe/
Overnight
% of GRPs by Daypart for Top Auto Brands
Source: AdViews, August 2012- July 2013 , Spot TV. Persons 18+. Average taken from Chevy, Chrysler, Ford, Honda, Hyundai, Nissan and Toyota.
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Primetime and late fringe dayparts provide the best opportunities to catch consumers’ attention
% of Audience that recalled the creative and brand for all Auto ads during September 2012- August 2013
30%
25% 23%
20%
15%
16%
18%
15%
10%
5%
0%
Weekend
Daytime
(Sports)
Early Fringe
(National
News)
Primetime
Access
Primetime
23%
Late
Fringe/Late
Night (No news)
Ad Breakthrough
Source: Brand Effect TV National Results for All Auto Ads Sep 2012 – Aug 2013 A18+. Ad Breakthrough = recalled the ad and the brand.
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OPPORTUNITIES ABOUND
1 Television, in all its forms, will remain a significant part of the auto mix
2
We all must help OEMs improve their connection to a relatively small group of consumers
3 OEMs need actionable information
4
If we use all the best tools at our disposal, this will be a win, win for TV and the auto industry
13