Annual Results: Year ended 31 December 2016

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1 Annual Results: Year ended 31 December 2016 Presented by Andy Bruce Chief Executive Officer Robin Gregson Chief Financial Officer Nigel McMinn Chief Operating Officer 1 1

2 Record profits and well positioned for future growth Strong financial performance eighth successive year of turnover and profit growth Record profit before tax of 77.1m, increase of 7% Revenue increased 17% to 4.3 billion (2015: 3.65 billion) Earnings per share up 4% at 15.87p (2015: 15.24p) Robust capital structure Strong cash flow reduces debt from 162m to 74m Debt/ EBITDA now at 0.7:1 and at lower end of range 0.5:1 1.5:1 High return on capital of 22% Total dividend up by 17% - proposed final dividend of 2.36p per share Proven business model Significant restructuring of portfolio Successful integration of Knights and Drayton businesses Further progress in upgrading dealership estate Continued investment in key drivers of customer experience Good start to current financial year healthy order book for new cars in March 22

3 The Right Strategy 3

4 Portfolio Transformed: Right Brands, Right Locations Acquisitions Disposals Knights BMW/MINI Skoda West London Other non core businesses Drayton Mercedes-Benz Nissan Leeds 4

5 Portfolio Transformed: Right Brands, Right Locations Successful integration of Knights and Drayton Knights acquired on 22 August for 26.6m Drayton acquired on 4 November for 56.3m Earnings enhancing in 2017 Significantly increases Mercedes-Benz representation BMW/MINI provides platform for further premium growth Economies of scale Excellent cultural fit 55

6 Dealership estate upgrade Jaguar Land Rover in West London Newcastle Nissan Mercedes-Benz Tonbridge Newcastle Volkswagen m Maintenance m Upgrades m TOTAL Lookers plc / For the year end 31 December 2016

7 Financial Review 7 7

8 Strong Financial Performance Lookers plc 2016 ( ) 2015 ( ) Record profit before tax of 77.1m, increase of 7% Revenue increased 18% to 4.3 billion (2015: 3.65 billion) Earnings per share up 4% at 15.87p (2015: 15.24p) Strong cashflow, reduced debt to 74m from 162m at year end Final dividend increased by 15% to 2.36p per share (2015: 2.05p) Turnover 4,281.7m 3,649.1m Gross profit 504.2m 452.2m Gross margin 11.8% 12.4% Operating Profit 94.7m 85.9m Interest 17.6m 13.8m Underlying Profit Before Tax 77.1m 72.1m Underlying Operating Margin 2.2% 2.4% Pre-Tax Margin 1.8% 2.0% EPS 15.87p 15.24p Net Debt 74.1m 161.7m Gearing 22% 54% EBITDA (12 months) 107.6m 100.4m Dividend per share 3.64p 3.12p Underlying Tax Charge 13.7m 12.0m Profit after Tax 81.3m 50.8m Return on Capital Employed 22.6% 24.2% 88

9 Underlying Profit Group Profit Bridge 99

10 Strong growth across the business 2016 m 2015 m % change 2016 m 2015 m % change TURNOVER GROSS PROFIT New Cars 2,206 1,835 20% New Cars % Used Cars 1,437 1,212 19% Used Cars % Aftersales % Aftersales % Parts Division NC Parts Division NC Leasing and other % Leasing and other % TOTAL TURNOVER 4,281 3,649 17% TOTAL GROSS PROFIT % LFL TURNOVER LFL GROSS PROFIT New Cars: retail 1,375 1,277 8% New Cars: retail % New Cars: fleet % New Cars: fleet Used Cars 1,437 1,341 7% Used Cars % Aftersales % Aftersales % 10 10

11 Robust Capital Structure 2016 ( m) 2015 ( m) Significant reduction in net debt to 74.1m due to strong cash flow (2015: 161.7m) Low levels of gearing, reduced to 22% (2015: 54%) Strong balance sheet and high level of unutilised bank facilities Fixed Assets Rental Fleet Vehicles (VRS) Stocks 31 Dec Dec m m Debtors Current Liabilities (excluding bank loans) 1, ,002.0 Non Current Liabilities (excluding bank loans) Vehicle rental fleet finance (VRS) Net Assets Net Debt Gearing 22% 54% Net Debt / EBITDA

12 Positive Cash Flow Generation 2016 ( m) Cash flow was particularly strong with cash generated from operations of 140.9m (2015: 67.9m) Invested 36.3m of capital expenditure in improving dealership facilities 2015 ( m) EBITDA Working capital decrease/ (increase) 33.3 (32.7) Cash generated from operations Acquisition of subsidiary companies (92.6) (104.4) Purchase of fixed assets (36.3) (35.2) Received 28.9m for the sale of assets Net cash inflow was 92.3m compared to (59.8)m in 2015 Reduction in net debt to 74.1m compared to 161.7m at the start of the year The ratio of net debt to EBITDA has reduced from 1.6 at the start of the year to the current level of 0.7 Gearing was reduced to 22% compared to 54% at the start of the year Proceeds from asset disposals Net proceeds from parts division VRS Rental Fleet Vehicles purchased (93.7) (83.2) Sale of VRS Rental Fleet Vehicles Dividends paid to shareholders (13.2) (11.6) Loan repayments (10.2) (11.8) New loans Interest paid (net) (17.6) (13.8) Tax paid (14.2) (11.3) Decrease/(increase) in net debt 87.6 (109.8) Increase/(decrease) in cash 92.3 (59.8) 12 12

13 Consistent Financial Track Record m Group Pre-tax Profit Trend m Group Net Assets Trend Group Net Debt m Lookers plc / For the year end 31 December 2016

14 Operational Review 14

1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 2016 EU Car Registrations 15,000,000

15 Strong market fundamentals Car sales track population growth and GDP EU now recovered to previous peak New car registration growth 3,000,000 2,500,000 2,000,000 1,500,000 1,000, , EU Car Registrations 15,000,000 14,500,000 14,000,000 13,500,000 13,000,000 12,500,000 12,000,000 11,500,000 11,000,000 10,500,000 10,000,000 15

16 New cars Growth in retail gross profit Finance penetration increased from 79% to 83% Gross profit increase of 4% in retail Maintained share in retail and significant gain in fleet All figures on a like for like basis 1,600 1,400 LFL new car turnover +8% LFL total gross profit +4% 1, m 1, % 1,375 1, Retail Fleet m Retail Fleet

52% 54% 63% 72% 79% 84% 2006 2007200820092010201120122013 201420152016 25% New Finance % % of PCP 5% 0% 7%

17 PCP growth New Car Finance % Used Car Finance % 90% 80% 83% 75% 77% 78% 79% 50% 45% 40% 42% 43% 42% 42% 42% 37% 37% 38% 37% 39% 36% 70% 60% 50% 67% 61% 60% 55% 56% 50% 35% 30% 25% 20% 15% 40% 10% 30% 33% 32% 38% 49% 52% 54% 63% 72% 79% 84% % New Finance % % of PCP 5% 0% 7% 7% 6% 5% 6% 7% 9% 17% 26% 37% 47% Used Finance % % of PCP % 17 17

Affordability of new cars 18 2008 2017 2008

0 TFSi) Cash price UP from 24,505 to 28,750

Cash price UP from 31,782 to 34,345 Deposit

payments from 399 Monthly payments from 317

Contribution and 4,000 BMW Contribution to

18 Affordability of new cars Audi A4 1.8 TFSi 4door (2017 MY 2.0 TFSi) Cash price UP from 24,505 to 28,750 Monthly payments from 447 Monthly payments from 264 Deposit Remains Mercedes-Benz SLK (2017 MY SLC250d Sport) Cash price UP from 31,782 to 34,345 Deposit REDUCED from 4,999 to 4,199 Monthly payments from 399 Monthly payments from BMW 5 Series Touring F11 Cash price UP from 48,500 to 51,465 Monthly payments from 669 Deposit 9,500 Customer Contribution and 4,000 BMW Contribution to 8,500 Customer Contribution and 5,000 BMW Contribution Monthly payments from 482

Strong market fundamentals Record used car market Demand for used cars is exceeding supply Used vehicle market Average age of used vehicles 9,000,000

19 Strong market fundamentals Record used car market Demand for used cars is exceeding supply Used vehicle market Average age of used vehicles 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 New car market Used car market Source: SMMT and DVLA Data Source: Statista.com 19 19

20 Used cars Gross profit increase of 7% Finance penetration remained stable Residual value stability underpins margins Disciplined approach to stock management All figures on a like for like basis m LFL used car turnover LFL total gross profit % +7% ,437 m ,

21 Dealership Aftersales Market Fundamentals 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 0 UK Vehicle Parc +3% Predicted Age (years) 0-3 Age (years) 4-6 Age (years) 7-9 Age (years)

22 Dealership Aftersales Turnover increased by 8% and gross profit by 9% Strong gross margin result from 44% to 45% Continued progress in creating capacity All figures on a like for like basis m LFL aftersales turnover m LFL aftersales gross profit +8% +9%

23 Dealership Aftersales Retention Strategy All figures on a like for like basis Cumulative Service Plans Live book 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, % 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% % Vehicles sold with a Service Plan* 38% 38% 38% 32% 33% *Adjusted for Benfield

Operational Excellence Used Car GP/unit 2016 26 Allan Rushforth, Managing Director Accomplished Executive within the motor industry

24 Operational Excellence Used Car GP/unit Allan Rushforth, Managing Director Accomplished Executive within the motor industry Former Nissan vice president of global sales and chief operating officer of Hyundai Motor Europe Scale of potential operational improvement 24

25 Outlook 25

26 Outlook: Well positioned and confident in delivering further growth Focused on growth Organic, via the best customer experience and operational excellence Acquisitions right brands, right locations - set to be a leading player in consolidation Positive start to 2017 Healthy March order book New car market over the medium term will continue to grow Two-thirds of our gross profit comes from Used Cars and After Sales which represents a major growth opportunity Continued investment in the multi-channel customer experience 26 26

27 The Right Strategy 27

28 Appendices 28

Business Portfolio Franchise & Distribution Outlets MOTOR DIVISION Dacia Jaguar Mercedes Renault Vauxhall Guildford SERVICE CENTRE Alfa Romeo Belfast Amersham Ashford Belfast Belfast Newcastle

Royal Eastbourne Newcastle Chester Volvo Belfast Newtonabbey Motherwell Gatwick Newtonabbey Ellesmere Port Colchester LEASING Newtonards Maidstone Newtonards Lisburn Glasgow Harrogate Audi Stockport

29 Business Portfolio Franchise & Distribution Outlets MOTOR DIVISION Dacia Jaguar Mercedes Renault Vauxhall Guildford SERVICE CENTRE Alfa Romeo Belfast Amersham Ashford Belfast Belfast Newcastle Renault Chelmsford Cardiff Carlisle Belfast Brighton Carlisle Birkenhead Teesside Volvo Chelmsford Chester Glasgow Canterbury Chester Birmingham Vauxhall Dundonald Aston Martin Newcastle London Park Royal Eastbourne Newcastle Chester Volvo Belfast Newtonabbey Motherwell Gatwick Newtonabbey Ellesmere Port Colchester LEASING Newtonards Maidstone Newtonards Lisburn Glasgow Harrogate Audi Stockport Jeep Shrewsbury Stockport Liverpool Motherwell Manchester Ayr Belfast Stafford Newtonabbey Stockport Basingstoke Ferrari Cardiff Stoke on Trent Seat Portadown FLEET FINANCIAL Camberley Belfast Stourbridge Manchester Selly Oak USED CAR Belfast Dublin Kia Tonbridge Stockport Speke Belfast Edinburgh Fiat Belfast Walsall St. Helens Dublin VEHICLE RENTAL SERVICES Glasgow Stockport Newcastle Wolverhampton Skoda Warrington Guildford Sheffield Worcester Eccles Yardley MOTORCYCLES Beaconsfield Hamilton Ford Stockport Guildford BMW Belfast Newcastle Braintree Mini Harrogate Volkswagen Honda Belfast AGRICULTURAL Stirling Chelmsford Land Rover Crewe Manchester Battersea Yamaha Belfast DIVISION Teesside Colchester Belfast Stafford Newcastle Blackburn New Holland Tyneside Guiseley Bishops Stortford Stoke on Trent Stockport Blackpool TPS Darley Dale Wearside Harrogate Chelmsford West London Carlisle Edinburgh Tuxford Leeds Glasgow North Nissan Dumfries Glasgow Bentley Sheffield Glasgow South Belfast Smart Darlington Guildford Belfast South W Ferrers London Battersea Carlisle Brighton Guildford Newcastle Sudbury London Park Royal Chester Gatwick Morden Reading BMW Sunderland Motherwell Gateshead Maidstone Newcastle Teesside Crewe Leeds Stoke on Trent Northallerton Stafford Honda Lexus Motherwell Stourbridge Preston TYRES Stoke on Trent Orpington Belfast Newcastle Tonbridge Silverlink Belfast Boucher Rd Newtonabbey Wolverhampton Teesside Belfast Sydenham Rd Citroen Hyundai Maserati Newtonards Worcester Walton on Thames Colerane Newport Dundonald Belfast Omagh Motherwell Peugeot Toyota Volkswagen CV Portadown Belfast Belfast Carlisle Cardiff Dundonald Darnley Newport Newtonabbey Glasgow 2017 Additions 29

30 Franchise Locations 30

31 31 31

Annual Results: Year Ended 31 December 2017

Annual Results: Year Ended 31 December 2017 Highly Resilient Financial Performance Presented by Andy Bruce Chief Executive Officer Robin Gregson Chief Financial Officer Nigel McMinn Chief Operating Officer