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The Future of Retail Automotive – Count on Change

Bill Cariss

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“Change is disturbing when it is done to us, exhilarating when it is done by us.”

Rosabeth Moss Kanter

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It’s Coming…AutonomousFuture Mobility Connectivity

“Verizon combines three best-in-class fleet management software companies ”

“Ford acquires Autonomic and TransLoc as it evolves its mobility business”

Recent Headlines

“BMW Group and Daimler AG agree to combine mobility services”

Electrification

“Lyft launches [Express Drive] that

allows drivers to use rental cars”

“Audi tests $1,395-a-month subscription plan [in Texas]”

“Duncan Automotive Network Joins Flexdrive Subscription Marketplace”

“Honda to Invest $2.75 Billion in GM's Self-Driving Car Unit”

“Toyota Investing $500 Million in Uber in Driverless-Car Pact”

“Car-sharing startup Getaround raises $300 million in funding led by SoftBank”

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Words Matter

Mobility -

Duration ofUsage

Vehicles Owned By

Vehicles Driven by

Ride-Hailing TripsCompanies /Individuals

Driver

Car Sharing / Subscription

Trips /Long term

Companies Individuals

Peer-to-Peer Trips Members Individuals

New forms of vehicle transportation including Car Sharing, Subscription, Peer-to-Peer, and Ride-Hailing

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Mobility Landscape

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Who Owns? Who Drives?

Source: Morgan Stanley Research July 13, 2015

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Follow the Cash...

Over $110 BN of investments in Mobility companies since 2010

Most of the investment activity has occurred within the last 3 years

“Worldwide investment in mobility solutions is forecast to reach $1.8 trillion in 2022, according

to the latest worldwide market. Furthermore, mobility spending is already on track to reach $1.63 trillion in 2018.” - International Data Corporation (IDC)

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OEM’s are in the game too

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What do we do?

Partnership approach

Diversify product offerings

Invest in technology

Monetize data

Optimize asset utilization

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Ideas

Auto

Dealerships

Consumer

Auto

Finance

Global Fleet

Mgt. &

Commercial

Leasing

Auto Parts

Distribution

Commercial

Consumer

Insurance

Services

Fabrication

&Assembly

Holman Enterprises Diversified Business Segments

New Businesses

Holman

Strategic

Ventures

Innovation

All Rights Reserved.©2018 Holman Enterprises Inc.

StrategyWhat Holman is doing…

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Holman Strategic Ventures

To ensure the relevancy of Holman Enterprises for generations

to come by leveraging core assets and capabilities through

strategic investments, partnerships and start-ups in

complementary and disruptive companies and technologies.

All Rights Reserved.©2018 Holman Enterprises Inc.

Mission Statement

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Holman Strategic Ventures

Active Investments

Flexdrive

Vehicle Subscription Service

Fleet Management Platform for Mobility Companies and

Consumers

Mobility Fleet Management

Dealer Lot Management, Loaner Management, Consumer Application

Lynkd

Automotive Venture Capital Fund

Venture Capital

Co-investment: Autopay

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• Partnership approach

• Diversified product offerings

• Investment in technology

• Optimizing asset utilization

Strategic13

Subscription Landscape

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Mobility for any time duration

Utilization of stagnant dealer inventory

Buy, Lease, Flex

Future ModelCurrent Model

Weekly or monthly vehicle subscription

Dedicated fleet

Franchise branded

Operating Losses

The Shift in Subscription for Dealers

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Flexdrive - Custom Fleet Solution

• Fleet Management Services• Vehicle funding

• Offering vehicles to Lyft Drivers• Opening locations throughout

the country (NTB’s & Carmax’s)

• Provides technology platform for Lyft Drivers to subscribe to program

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● In 4 countries via dealers, fleets, or white-labeled technology

● Over 10,000 active subscribers

● Avg. 65,000 transactions per month

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• Partnership approach• Diversified product offerings• Monetizing Data

Strategic

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Telematics for Dealers

−Connect every car

−Protect your assets

−Leverage data

Technology solving dealer lot

and loaner management pains

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• Streamline Workflows• Lot Management

• Sales / Accounting

• Cost Efficiencies• Battery Replacement

• Stolen / Missing Vehicles

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• Optimize OEM Incentives

• Manage Fleet Usage

• Customer Delight

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• Consumer App

• Service Retention

• F&I Product

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MOBILITY FLEET MANAGEMENT

Strategic• Diversify product offerings• Invest in technology• Monetize data

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“B to B for E” “B to B for C” “B to B for A”“B to C”“B to b for E”

Fleet Management - Cool, Sexy…Really?

Traditional Fleet Management

SmallFleet Management

MobilityFleet Management

ConsumerFleet Management

AutonomousFleet Management

Enterprise Fleets

Market Leader(s):ARI

Element

Market Size

Small Business Fleets

Market Leader(s):ARI, Enterprise, Mike

Albert, Emkay, Merchants

Fleet Telematics companies (Fleetmatics)

Market Size

Mobility Fleets

Market Leader(s):StratimRidecell

Market Size

Consumer Vehicles

Market Leader(s):AAA

RepairPalGuardianAutobrain

Market Size

Autonomous Fleets

Market Leader(s):OEM’s

Lyft

Market Size

$13.7 BN (US)

$2.8 BN (Global)

$31 BN (US)

$220 BN (Global 2030 Projected)

All Rights Reserved.©2018 Holman Enterprises Inc.

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What’s the Difference?

Time & TouchesPayments – Transactional, Hourly, Daily, Monthly

On-boarding – Highly time sensitive, need vehicle today

De-fleeting – More often, high turn rates, high miles

Maintenance – PDI every return, Rental Ready Standards

Drivers – Consumers, not employees25

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Bill CarissThe Future of Dealerships – Holman’s Strategy

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