Industry Trends Live Q1 2012

Greg Horn

Vice President, Industry Relations

February 2012

Industry Trends Report Wrap-up

Confidential and Proprietary. ©2011 Mitchell International, Inc.

Agenda for Today:

• An update on the Property Casualty Industry

• New Car sales, used car used car sales

• An update of Mitchell’s latest KPI’s

• Recap of this quarter’s feature article

• Rust in Peace

• New Auto Technology

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Property Casualty Financials

• The P & C insurance industry saw net income after taxes fall to under $8 Billion for the first nine months of 2011, about 60% less than the prior year.

• The industry’s combined ratio climbed to 109.9 in the first nine months of 2011 compared to 101.2 in 2010.

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5.35

5.4

5.45

5.5

5.55

5.6

5.65

5.7

5.75

5.8

5.85

5.9

Through Q3 2011

Collision Paid Claim Frequency Per 100 Cars

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5.4

5.6

5.8

6

6.2

6.4

6.6

6.8

7

7.2

Through Q3 2011

Comprehensive Paid Claim Frequency Per 100 Cars

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3.25

3.3

3.35

3.4

3.45

3.5

3.55

3.6

Through Q3 2011

Property Damage Paid Claim Frequency Per 100 Cars

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Mitchell Key Performance Indicators

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Parts use by model year

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The Number of parts by part type by model year

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The dollars spent by part type by model year

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U.S. Vehicle sales data

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New vehicle sales for 2011

• Globally, Car makers sold 77.7 Million vehicles

• That’s 8,900 vehicles every hour!

• US sales are headed for full-year 2011 volume of about 13.4 million vehicles, 10 percent higher than 2010

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What is the top selling luxury brand in the US?

• BMW’s U.S. sales rose 15 percent to 26,834 in December, for an annual total of 247,907

• Mercedes said its sales last month climbed 28 percent to 25,701, pushing its tally for the year to 245,192.

• U.S. sales at Lexus dropped 13 percent last year to 198,552 units -- the first time volume dropped below 200,000 units since 1999.

Confidential and Proprietary. ©2011 Mitchell International, Inc.

Used vehicle sales

• Used vehicle sales totaled 38,792.169 for all of 2011, up 5.2 percent from the prior year.

• December volume surged 11.98 percent, to 3,142,513.

• The year, as a whole saw a surge in private party, or consumer-to-consumer, sales, especially in the final months of 2011.

Confidential and Proprietary. ©2011 Mitchell International, Inc.

Electric Vehicles in the future

• A survey by KPMG of global auto maker executives finds a nominal increase for electric vehicle sales over the next 13 years.

• However, most of the executives surveyed believe the industry will continue putting larger investments into EV technology -- just in case.

• Nearly Two-thirds of the executives surveyed believe that combined hybrid and electric-vehicle sales will account for as little as 6 percent of the market in the U.S. and Western Europe by 2025.

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KPMG’s survey of automaker CEO’s

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Rust in Peace

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Rust in Peace- Vehicles that died in 2011

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Rust in Peace

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Rust in Peace

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The Detroit Auto Show highlights

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But one car model didn’t die, but should have

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New Ford Fusion

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2012 Dodge Dart

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2012 Hyundai Elantra

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Your vote for car of the year: A. Ford Fusion B. Dodge Dart C. Hyundai Elantra

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New vehicle technology

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Volkswagen to help avoid speed traps

The traffic signs recognition system being developed by Volkswagen Group Research receives a signal from each applicable road sign and sends an audible and digital message to the driver.

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Image courtesy Volkswagen Gruppe GMBH

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Ethanol Boosted Direct Injection

• Automotive technology specialist Ricardo has developed a technology that optimizes ethanol-fuelled engines to a level of performance that exceeds gasoline engine efficiency comes close to diesel engines. Ethanol Boosted Direct Injection (EBDI), takes advantage of ethanol’s best properties higher heat of vaporization

• Current E85 engines are about 30% less efficient than running on regular 87 octane fuel

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Active Sound exhaust system

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Eberspächer “Aktiv Sound”

Although Pontiac created a muffler bypass for the GTO back in 1970; German company Eberspächer has created an adjustable exhaust sound system. Using a steering wheel mounted volume control, you can adjust the exhaust system sound

Images courtesy Pontiac GTO Club and Wirtshafts Woche

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Upcoming events

• Orlando, FL- PPG Platinum distributors conference February 23rd

• Naples, FL- Mitchell Property Casualty conference, March 18-20

• Maui, HI- Standox Partnership in Excellence conference, March 28-30

• Phoenix, AZ- Toyota Motor Sales Conference, May 8-9

• Scottsdale, AZ- Parts, Body & Equipment Sales conference, May 16-17

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