first quarter financial results &...

United States United Kingdom Brazil

2018 First Quarter Financial Results & Overview

April 26, 2018

www.group1auto.comwww.group1auto.com

Forward Looking Statement

This presentation contains "forward-looking statements“ within the meaning of the Private Securities Litigation Reform

Act of 1995, which are statements related to future, not past, events and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. In this context, the forward-looking statements often include statements regarding our goals, plans, projections and guidance regarding our financial position, results of operations, market position, pending and potential future acquisitions and business strategy, and often contain words such as “expects,”

“anticipates,” “intends,” “plans,” “believes,” “seeks,” “should,” “foresee,” “may” or “will” and similar expressions. Any

such forward-looking statements are not assurances of future performance and involve risks and uncertainties that may cause actual results to differ materially from those set forth in the statements. These risks and uncertainties include, among other things, (a) general economic and business conditions, (b) the level of manufacturer incentives, (c) the future regulatory environment, (d) our ability to obtain an inventory of desirable new and used vehicles, (e) our relationship with our automobile manufacturers and the willingness of manufacturers to approve future acquisitions, (f) our cost of financing and the availability of credit for consumers, (g) our ability to complete acquisitions and dispositionsand the risks associated therewith, (h) foreign exchange controls and currency fluctuations, and (i) our ability to retain key personnel. For additional information regarding known material factors that could cause our actual results to differ from our projected results, please see our filings with SEC, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K. We use non-generally accepted accounting principles (“non-GAAP”) financial measures in this presentation. Our reconciliation of non-GAAP financial measures to comparable GAAP measures can be found in the Appendix to this presentation. These non-GAAP measures should not be considered an alternative to GAAP financial measures. Readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements after the date they are made, whether as a result of new information, future events or otherwise.

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1Q18 Summary

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§ The company announced strategic initiatives related to used vehiclesand aftersales that began implementation in 1Q18 as follows:

Ø Val-u-Line brand of used vehicles; andØ Flexible work schedules and revised pay plans aimed at increasing service

department employee retention.

§ U.S. same-store increase of 7.7% in used retail units and 2.4% in newunits.

§ The strategic initiatives investment added ~$3 million of cost in thequarter.

§ One-time $500 employee bonus paid to tenured, non-managerial U.S.dealership employees added $3 million of cost.

§ Consolidated tax rate improved to 22.4%, largely as a result of thedecrease in the U.S. corporate rate from 35% to 21%.

§ Acquired 11 franchises that will generate approximately $360 million inannual revenues.

1Q 2018 Summary

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Company Overview

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www.group1auto.com

§ International, Fortune 500 companywith Market Cap of $1.3 Billion(period ended March 31, 2018)

§ Third largest dealership group in theU.S. retailing over 300,000 new andused vehicles annually

§ Committed senior managementteam with +230 years of automotiveretailing and OEM experience

§ Unlike most other automotiveretailers, Group 1 has no majorcontrolling shareholder or owner

§ Well positioned for growth

Revenue ($mm)

What Sets Group 1 Apart?

Adj. EPS Growth ($)

Top 10 U.S. auto retailers by revenue ($mm, FY 2017)

Source: Automotive News, 2017 Top 150 Dealership Groups, Crain Communications Inc. *Publicly Held; ‡Figures include data for dealerships outside the United States

$21,535 $21,387

$11,124 $10,087 $9,867$8,580

$6,457$5,135 $4,588 $3,033

AutoNationInc.*

Penske Automotive

Group Inc.*‡

GPI Lithia MotorsInc.*

SonicAutomotive

Inc.*

HendrickAutomotive

Group

AsburyAutomotiveGroup Inc.*

Larry H.Miller

Dealerships

Ken GarffAutomotive

Group

PrimeAutomotive

Group

6

$4.53 $4.96 $5.87$6.87

$7.42 $7.73

2012 2013 2014 2015 2016 2017

3 $4.96 $5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5$5.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8.8777777777777777777777777777777777777777777777777777777777777777$6.87

$7.7

‡

$8,919

$9,938 $10,633 $10,888 $11,124 $11,465

2013 2014 2015 2016 2017 LTM Mar-18

,9,9,9,9,9,9,9,9,9191919191919191919

$9,938


Geographic Footprint

7

U.K.

England:§ 47 Dealerships§ 25% of NV Unit

Sales

Folsom Lake (1)Folso

Los Angeles Metro (2)Los A

San Diego (4)San D

HoustonMetro(17)

Tulsa (4)

Lubbock (6)Shreveport (1)

New Orleans (3)

Beaumont (6)

Atlanta (2)

Mobile (2)Gulfport (3)

Hilton Head (1)

Pensacola / Panama City (3)

Annapolis (2)

New Hampshire (3)

Boston Metro (5)

Rock Hill (1)

PensaPensa

Columbus (4)

Kansas City (4)

Atlantic City (4)

BRAZIL

Mato Grosso do Sul, Paraná, São Paulo, and Santa Catarina§ 17 Dealerships§ 5% of NV Unit

Sales

UNITED STATES – 15 States 117 Dealerships

70% of NV Unit Sales

Dallas Metro (10)

Amarillo (1)

Austin (6)

San Antonio (3)

Oklahoma City (9)

El Paso (5)

*As of April 26, 2018

WORLDWIDE:

§ 181 Dealerships

§ 239 Franchises

§ 48 Collision Centers

§ 32 Brands

Miami (1)

Santa Fe (1) Fe (1)

Albuquerque(1)Albuquerquuerqu Augusta (1)

Columbia (1)

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www.group1auto.com

Geographic Diversity

8

*May not add to 100% due to rounding.

Brazil 5%

U.K. 25%

U.S.70%

New Vehicle Unit Sales

Geographic Diversity - 1Q18(New Vehicle Unit Sales)

TX50%

CA9%

OK9%

MA7%

GA6%

FL4%

NH3%

LA3%

SC2%

NJ2%

KS2%

MS2%

AL1%

MD & NM <1%

United States - 1Q18

www.group1auto.com

Geographic Diversity – Texas

Texas – 1Q18

9

Texas 35%

Houston16%

Dallas6%

Austin5%

Lubbock-Amarillo

3%

Beaumont2%

El Paso2%

San Antonio1%

Brazil 5%

U.K. 25%

U.S.70%

New Vehicle Unit Sales

Geographic Diversity - 1Q18(New Vehicle Unit Sales)

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www.group1auto.com

Brand Mix – 1Q18*(New Vehicle Unit Sales)

The Company’s brand

diversity allows it to reduce the risk of

changing consumer preferences

Well-Balanced Brand Portfolio

10

*May not add to 100% due to rounding.

www.group1auto.com 11

Total Company Parts & Service Gross Profit Covers ≈95% of

Total Company Fixed Costs and Parts & Service Selling Expenses

Business Mix Comp – 1Q18

United KingdomGross ProfitRevenue

Brazil TOTALGross ProfitRevenue Gross ProfitRevenue

United StatesGross ProfitRevenue

52%

16%

54%

26%

62%

29%

53%

17%

30%

10%

36%

12%

25%

13%

31%

11%

14%

45%

8%

42%

11%

43%

12%

45%

4%

29%

2%20%

2%

15%

4%

27%

New Vehicles Used Vehicles Parts & Service Finance & Insurance

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New vehicle revenue ($mm)

12

New vehicle gross profit per retail unit

New Vehicles Overview

U.S. new vehicle truck mix U.S. New Vehicle total profit per retail unit with F&I (YoY growth)

($ millions)

$5,225

$5,742 $6,001 $6,046 $6,158

$6,334

2013 2014 2015 2016 2017 LTMMar-18

$5,225

$5,742

$1,862

$1,597

$2,039

$1,808

$1,853

$1,771

$1,829

$1,831

U.S.

U.K.

Brazil

Total

1Q18

1Q17

*Constant Exchange Rate for 1Q18

$1,783*

$1,894*

$1,570*

46%48%

51%

56%

61%64%

2013 2014 2015 2016 2017 2018

$51

$314 $258

$407

$246

$159

$254

$120 $1401.5%

9.7%8.0%

11.9%

7.2%

4.5%

7.3%

3.1%3.8%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

$0$50

$100$150$200$250$300$350$400

($) NV Total PRU YoY Growth (%) NV Total PRU YoY Growth


Used vehicle revenue ($mm) Retail used vehicle gross profit per retail unit

Used Vehicle Overview

12.8 14.4 15.4 16.4 17.4

38.8 40.5 42.038.8 39.4

2011 2012 2013 2014 2015

New Vehicle Units Used Vehicle Units

Used market size1 (units in millions) Used market share1

37%

32%

29%

2%

Franchised Dealers

Independent Dealers

Private Party

CarMax

1 Source: WardsAuto Group “U.S. Market Used Vehicle Sales” Report, 2015

$2,372 $2,704

$3,036 $3,160 $3,199 $3,319

2013 2014 2015 2016 2017 LTMMar-18

Wholesale Retail

,372

$1,201

$1,354

$1,093

$1,226

$1,426

$1,602

$968

$1,522

Total

Brazil

UK

US1Q18

1Q17

*Constant Exchange Rate for 1Q18

$1,398*

$1,176*

$972*

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§ Introduction of Val-U-Line, a proprietary brand for older model, higher mileagepre-owned vehicles

§ Expansion of used vehicle sales within existing facility footprints across U.S.non-luxury & some luxury locations

§ Implementation of an all-new internal online buying center

§ Upgrade of internal auction capability and a new transportation infrastructure

Group 1 expects the Val-U-Line brand to capitalize on the Company’s scale, provide

incremental retail volume and grow to represent at least 10 percent of the Company’s used car business, which has historically been approximately 4 percent.

U.S. 1Q18 used vehicle results were as follows:

§ 7.7% same store increase in retail units and 7.6% decrease in wholesale units

Ø Significant shift from wholesale to retail sales in order to maximize front-end and F&I grossprofit opportunities

§ 9% of retail unit sales were Val-u-Line vehicles versus a 4% historical average

Strategic Initiatives: Used Vehicles

www.group1auto.com

§ The amount of tax due on a vehicle purchase depends on:

Ø Price (cash or financed amount) of the car to be purchased*

Ø Value of a trade-in vehicle, if applicable

Ø State’s sales tax policies

§ In the United Sates, 40 states feature a tax credit on the value of a trade-invehicle, which applies to 12 of the 15 states in which the Companyoperates.

§ Example of “with versus without trade-in” impact on vehicle purchase cost:

15

Trade-In Tax Impact

*In many states, sales tax is not applied to a lease and sales tax credits are not applied to trade-in’s associated with a new car lease.

VEHICLE PURCHASE EXAMPLE: WITH TRADE-IN WITHOUT TRADE-IN

Sales Price $40,000.00 $40,000.00

Trade-In Allowance $25,000.00 n/a

Taxable Amount $15,000.00 $40,000.00

Tax % 6.25% 6.25%

Tax Due $937.50 $2,500.00

COST (Vehicle + Tax): $40,937.50 $42,500.00

TAX IMPACT on NET DIFFERENCE of COST: $1,562.50

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P&S revenue and gross margin ($mm) 1Q18 P&S revenue ($mm)

§ Parts & service segment provides a stable base of free cash flow through economic cycles§ Using Customer Management Software (CMS) and technology to improve efficiencies and closing rates§ Enhancing customer touch points to improve retention / attacking points of defection§ Leveraging scale § Improving collision business§ Strategic emphasis on customer service is driving growth above sector average in this important segment§ Focused on adding human capacity—since March 31, 2017, the Company’s same store, net service advisor headcount has grown +17% in the U.S.

Same store revenue growth*

Parts & Service Overview

4Q16 1Q17 2Q17 3Q17 4Q17 1Q18 Customer Pay 6.0% 4.8% 2.3% 3.6% 4.3% 3.5% Warranty 6.9% 8.6% 15.9% 8.6% 8.4% 0.4% Wholesale 0.7% 0.6% 1.9% 6.5% 9.9% 9.9% Collision (incl. parts) 6.3% 4.2% 5.3% 1.9% 5.5% -1.8%

% Growth 5.1% 4.6% 5.3% 5.0% 6.5% 3.3%

* In constant currency, as reported.

Service Retention Trend

$1,011 $1,126 $1,186 $1,261 $1,338 $1,368

52.4% 52.5% 52.8% 54.1% 53.9% 53.7%

2013 2014 2015 2016 2017 LTM Mar-18

Revenue Gross margin

42% 57% 63%45%

21%20% 24%

21%23%

14% 21%14% 9% 13% 13%

U.S. U.K. Brazil Total

Customer pay Warranty Wholesale Collision (incl. parts)

57.4%

61.1%63.1%

65.2%67.1%

68.3% 69.0%

Sep-08 Jan-10 Apr-12 Jun-14 Feb-16 May-17 Dec-17

$285 $53 $12 $350


§ Adjustment of service personnel compensation structure asfollows to address employee turnover, customer satisfaction, andto add capacity via expanded hours:

Ø Increase to fixed component of service advisor pay

Ø Creation of well-defined career path for advancement

Ø Launch of new, flexible work schedule featuring substantially more days offover the calendar year

Ø Implementation of an in-house Service Advisor University dedicated totraining the Company’s approximately 900 U.S. customer service personnel

§ The flexible work schedule has been implemented at 65 U.S.stores as of March 31, 2018

§ Employee retention rates have improved considerably

Ø Same store service advisor headcount has increased 10% from year-end

Strategic Initiatives: Aftersales

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§ Powertrains are constantly changing to meet CAFÉ requirements and stricter emissionrequirements.

§ Consumers have a wide variety of powertrains to choose from: Internal Combustion (ICE),Hybrid (ICE/EV), Plug-in Hybrid (PHEV), Electric (EV) and 48v Micro-Hybrids.

§ What do those changes mean to our service departments?

Ø According to Edmunds.com, the 5-year maintenance cost of a 2017 Nissan Leaf is $2,865; andthe 5-year maintenance cost of a 2017 Toyota Camry is $3,094, an immaterial difference.

Ø While we do not expect repair costs to materially change, over the next three generations, weexpect that the components of a repair will shift. Batteries, battery coolant, power units,electrically operated engine components and accessories will gradually replace the repairscurrently made to ICE vehicles.

Ø As vehicle complexity continues to increase, it becomes more difficult for do-it-yourself (“DIY”)

and independent service shops to compete against us.

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New Technology Business Impact

2017 Toyota Camry5-year maintenance cost estimate: $3,094

2017 Nissan Leaf5-year maintenance cost estimate: $2,865

www.group1auto.com

F&I revenue ($mm) F&I gross profit per retail unit ($)

F&I profitability growth accomplished via focus on people and processes:

n Consolidation of lender base

n Consumer financing at pre-recessionlevels and full credit spectrum available

n Integration of compliance, training andbenchmarking to offer a consistent andtransparent experience for internal andexternal customers

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2014 2015 2016 2017 Consol. US UK Brazil

Finance 67% 67% 67% 65% 65% 72% 46% 35%

VSC 34% 32% 32% 32% 32% 43% 3% 0%

Gap Ins. 24% 27% 28% 29% 29% 29% 34% 0%

Maintenance 9% 10% 11% 12% 11% 16% 0% 0%

Sealant 18% 21% 22% 24% 25% 25% 28% 0%

Gross Profit PRU $1,324 $1,368 $1,397 $1,442 $1,451 $1,718 $780 $597

F&I Penetration Rates (Actual)

2017

Finance & Insurance Overview

F&I gross penetration ($)

($ £ and R$)

$311 $367

$409 $421 $429 $444

2013 2014 2015 2016 2017 LTMMar-18

$311

£394 £454 £482 £533 £562 £560 R$ 914

R$ 1,200 R$ 1,302R$ 1,567

R$ 2,154 R$ 1,939

$1,371 $1,468 $1,525 $1,599 $1,676

$1,718

200

700

1,200

1,700

2,200

2013 2014 2015 2016 2017 YTDMar-18

U.K. Only BRL Only U.S. Only

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Consolidated U.S. Used Vehicle Profitability ($)

*Adjusted, see appendix for GAAP reconciliation.

FULL YEAR RESULTS

$1,637 $1,613 $1,601 $1,595 $1,611 $1,637 $1,682 $1,705 $1,778 $1,701 $1,779 $1,848 $1,851 $1,880 $1,842 $1,928

$1,708 $1,611 $1,629 $1,824 $1,691 $1,758 $1,857 $1,783 $2,049 $1,861 $1,862 $1,851 $1,891 $2,067 $1,921 $1,853

$3,345 $3,225 $3,230 $3,419 $3,301 $3,395 $3,539 $3,488$3,826

$3,562 $3,641 $3,698 $3,742 $3,947 $3,764 $3,781

1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17 4Q17 2017 1Q18

NV F&I PRU NV FGP PRU

$1,415 $1,427 $1,394 $1,402 $1,409 $1,480 $1,503 $1,439 $1,472 $1,474 $1,480 $1,493 $1,434 $1,456 $1,465 $1,498

$1,613 $1,502 $1,484 $1,398 $1,498 $1,620 $1,496 $1,441 $1,322 $1,472 $1,522 $1,456 $1,443 $1,291 $1,429 $1,226

$3,028 $2,929 $2,878 $2,800 $2,907 $3,100 $2,999 $2,880 $2,794 $2,946 $3,002 $2,949 $2,877 $2,747 $2,894 $2,724

1Q15 2Q15 3Q15 4Q15 2015 1Q16 2Q16 3Q16 4Q16 2016 1Q17 2Q17 3Q17 4Q17 2017 1Q18

UV Rtl F&I PRU UV RTL FGP PRU FULL YEAR RESULTS

U.S. Total Vehicle ProfitabilityConsolidated U.S. New Vehicle Profitability ($)

Group 1 has delivered nine straight quarters with NV total gross profit PRU YoY growth!

www.group1auto.com

§ On December 22, 2017, the U.S. government enacted comprehensivetax legislation referred to as the Tax Cuts & Jobs Act (the “Tax Act”).

§ Based on components of this legislation that decreased the U.S.federal corporate tax rate from 35 percent to 21 percent, theCompany estimates this change will:

Ø Reduce its effective tax rate from approximately 36 percent to arange of 23-24 percent;

Ø Improve annual cash flow by about $20 million; and

Ø Boost EPS by mid-to-high-teen percentage points.

§ For 1Q18, the Company benefitted by $5.7 million of net income and$0.27 of earnings per share.

21

Tax Reform Impact

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Financial Overview


Consolidated Financial Results

Financial Results - Consolidated($ in millions, except per share amounts)

1Q18 1Q17 Change C.C. 2

Revenues 2,860.0$ 2,518.8$ 13.5% 10.8%

Gross Profit 419.8$ 383.5$ 9.4% 7.5%

SG&A as a % of Gross Profit 77.3% 75.6% 170

Adj. SG&A as a % of Gross Profit (1) 77.3% 76.0% 130

Operating Margin 2.8% 3.2% -40

Adjusted Operating Margin (1) 2.8% 3.1% -30

EBITDA 81.3$ 81.8$ (0.5)$

Adjusted EBITDA (1) 81.3$ 80.0$ 1.3$

Total Interest Expense 32.9$ 28.9$ 4.0$

Net Income 35.8$ 33.9$ 5.5%

Adjusted Net Income (1)

35.8$ 32.8$ 9.2%

Diluted EPCS 1.70$ 1.58$ 7.6%

Adjusted Diluted EPCS (1)

1.70$ 1.53$ 11.1%

(1) See appendix for GAAP reconciliation

(2) Constant currency basis

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Financial Results by Segment

Financial Results - U.S.($ in millions)

1Q18 1Q17 ChangeRevenues 2,088.5$ 1,967.7$ 6.1%

Gross Profit 335.7$ 320.6$ 4.7%

SG&A as a % of Gross Profit 75.4% 73.7% 170

Adj. SG&A as a % of Gross Profit (1) 75.4% 74.3% 110

Operating Margin 3.3% 3.7% -40

Adusted Operating Margin (1) 3.3% 3.6% -30

Total Interest Expense 29.4$ 27.2$ 2.2$ Pretax Margin 1.9% 2.3% -40

Adjusted Pretax Margin (1) 1.9% 2.2% -30



Financial Results by Segment

Financial Results - U.K.($ in millions)


Revenues 660.5$ 450.3$ 46.7% 30.3%

Gross Profit 71.5$ 50.3$ 42.1% 26.2%

SG&A as a % of Gross Profit 83.4% 82.8% 60Operating Margin 1.3% 1.6% -30Total Interest Expense 3.0$ 1.6$ 1.4$ Pretax Margin 0.9% 1.2% -30

Financial Results - Brazil($ in millions)


Revenues 111.0$ 100.8$ 10.1% 13.9%

Gross Profit 12.6$ 12.6$ 0.0% 3.4%

SG&A as a % of Gross Profit 93.5% 94.1% -60Operating Margin 0.4% 0.4% 0Total Interest Expense 0.5$ 0.2$ 0.3$ Pretax Margin -0.1% 0.2% -30

(2) Constant currency basis

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Same Store Financial Results

Same Store Financial Results - Consolidated$ in thousands

3/31/2018 3/31/2017 Change C.C. 1

Revenues:New vehicle retail 1,407,514$ 1,333,038$ 5.6% 3.5%Used vehicle retail 724,164 658,552 10.0% 7.7%Used vehicle wholesale 92,694 104,046 -10.9% -14.6%

Total used 816,858$ 762,598$ 7.1% 4.6%Parts and service 333,488 318,703 4.6% 3.3%Finance and insurance 106,658 96,154 10.9% 9.8%

Total 2,664,518$ 2,510,493$ 6.1% 4.1%

Gross Profit 397,559$ 382,314$ 4.0% 2.5%

1 Constant currency basis

Three Months Ended

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Balance Sheet

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Summary Balance Sheet

Summary Balance Sheet$ in thousands

As of As of3/31/2018 12/31/2017

Cash and cash equivalents (1)

$33,090 $28,787

Contracts In Transit and vehicle receivables, net $297,885 $306,433

Inventories, net $1,804,177 $1,763,292

Total current assets $2,413,198 $2,329,186

Total assets $5,058,478 $4,871,065

Floorplan notes payable $1,620,056 $1,637,878

Offset account related to credit facility (1)

($98,359) ($109,047)

Other current liabilities $745,461 $669,656

Total current liabilities $2,267,158 $2,198,487

Long-Term Debt, net of

current maturities $1,376,770 $1,318,184

Total stockholder's equity $1,178,079 $1,124,282

(1) Available cash of $131.4 million is total of cash and cash equivalents plus the U.S. offset accounts. The U.S. offset accounts are amount of excess cash that are

used to paydow n floorplan but can be immediately redraw n against inventory.


Debt Maturity

Debt Maturity Slide

(in millions) Maturity Date Actual

Available Liquidity

Funding Capacity

Cash and cash equivalents 33.1$ 33.1$

Short-Term Debt

Inventory Financing - Credit Facility (1) 2021 1,087.0$ 74.4$ 1,440.0$

Inventory Financing - Other (2) 434.7 24.0

Current Maturities - Long-Term Debt 58.2

1,579.9$ 98.4$ 1,440.0$

Available Cash 131.4$ (4)

Long-Term Debt

Acquisition Line of Credit (1,3) 2021 28.0 307.5 360.0

5.00% Senior Unsecured Notes 2022 542.5

(Face: $550.0 Million)

5.25% Senior Unsecured Notes 2023 296.3

(Face: $300.0 Million)

Real Estate 2018 - 2034 482.6

Other 2018 - 2034 27.4

Total Long-Term Debt 1,376.8$

Total Debt 2,956.7$

438.9$ 1,800.0$

1)

2)

3)

4) Available cash of $131.4 million is total of cash and cash equivalents plus the U.S. offset accounts. The U.S. offset accounts are amount of excess cash that are used to

paydow n floorplan but can be immediately redraw n against inventory.

As of March 31, 2018

The capacity under the f loorplan and acquisition tranches of our credit facility can be redesignated w ithin the overall $1.8 billion commitment. Further, the borrow ings under

the acquisition tranche may be limited from time to time based upon certain debt covenants.

Borrow ings for new , used, and rental vehicle f inancing not associated w ith the Company ’s domestic syndicated credit facility.

The available liquidity balance at March 31, 2018 considers the $25.0 million of letters of credit outstanding.

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§ Primary exposure is short-term interest rate changes; key exposure is one-month LIBOR

§ Group 1 has mitigated the majority of its risk exposure for rising interest rates through acombination of the swaps, fixed rate debt, and manufacturer floorplan assistance

§ Manufacturer floorplan assistance offsets a portion of interest rate impact:

Ø As interest rates go up, typically manufactures offer additional interest assistance to offset the variance

Ø 83.5% of variable inventory financing is eligible for floorplan assistance as used vehicle; rental andsome foreign financing are not eligible for floorplan assistance

Ø Interest assistance is recognized in new vehicle gross profit, not in interest expense

Actual Variable %

Vehicle Financing $1,521.7 92.4%

Real Estate & Other Debt(3) $596.2 48.4%

Senior Notes (1) $850.0 0.00%

SWAPS (2)(3) $750.0 100%

(1) Face Value(2) SWAPS range from $100-$850 million through 2030, see following slide for more details.(3) Percentage adjusted for $75M of real estate interest rate SWAPS. SWAPS exclude real estate interest rate SWAPS.

Interest Rate Variability

30

www.group1auto.comwww.group1auto.com 31

INTEREST RATE SWAP LAYERS

$'s in millions

2015 2016 2017 2018 2019 2020 2021 2022-2025 2026-2030

Average Swap Balance $550 $550 $750 $750 $850 $500 $375 $125 $100

Interest Expense $13.2 $12.7 $11.8 $6.5 - - - - -

Average Interest Rate 2.57% 2.76% 2.62% 2.68% 2.33% 2.26% 1.78% 1.81% 1.85%

SWAPS: Interest Expense Impact

Note: Amortizing SWAPS associated with specific mortgages are excluded.

2018 interest expense projection reflects three 25-basis-point increases to the LIBOR rate (March, June, and December 2018).

*

*

of 38

www.group1auto.com

Growth Outlook

www.group1auto.com

Source: LMC Automotive – U.S. New Vehicle Unit Sales Actuals*Group 1 Estimate for 2018

United States(New Vehicle Unit Sales, in millions)

33

U.S. SAAR

15.215.6

17.017.4 17.2

16.8 16.7 16.9 17.016.6

16.2

13.2

10.4

11.6

12.8

14.5

15.6

16.5

17.4 17.517.2

16.8*

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

of 38


Adjusted Operating Cash Flow(1)

34

($mm)


$152$159

$203 $207

$244

$272$285

$100

$120

$140

$160

$180

$200

$220

$240

$260

$280

$300

2011 2012 2013 2014 2015 2016 2017


§ Acquisitions that clear return hurdlesØ 10-15% after-tax discounted cash flows

§ Return cash to stockholdersØ Quarterly Cash Dividend

§ $0.26 per share

Ø 2018 Share Repurchases:§ 135,605 shares at average price of $67.83

Ø Repurchase Authorization:§ $40.4 million remains under Board authorization of $75 million

Ø Tax Reform:§ Estimated to provide over $20 million of additional annual cash flow

Cash Prioritization

35 of 38


2Q

$35 $65 $260 $45

$30 $30 $330 $40 $55

$575

$80 $160 $100

Acquisition Strategy

36

§ Group 1 is well positioned to take advantage of acquisition opportunities and grow scale in existingmarkets (U.S., U.K., and Brazil)

§ The Company targets acquisitions that clear return hurdles (10-15% after-tax discounted cash flow)

Ac

qu

isit

ion

s(E

sti

ma

ted

An

nu

al R

eve

nu

es

)($

mm

)

2015 $340 million

Audi

(TX)

Audi

(FL)

3Q2Q1Q

Mercedes-Benz / Sprinter / Smart

(TX)

20161Q

Audi, BMW / MINI, Jaguar, SEAT, Skoda, VW

(UK)

$20

2Q

BMW, Land

Rover / Jaguar,

Toyota

(Brazil)

$660 million $65

Ford

(UK)

4Q

20172Q

$490 million

BMW

Motorcycles

(Brazil)

Ford

(UK)Nissan

(TX)

1Q 3Q

$5Jaguar, Land Rover, VW, Skoda, Toyota, Vauxhall, Kia

(UK)

Jaguar /

Land Rover

(New Mexico)


Audi

(TX)

1Q$405 million YTD*

Land

Rover

(UK)

Audi /

Subaru

(TX)

2018Mercedes-Benz / Smart

(UK)

Toyota

(Brazil)


24,885

23,152

21,170

20,425 20,307

19,000

20,000

21,000

22,000

23,000

24,000

25,000

2014 2015 2016 2017 1Q18

Diluted Common Share Count

37

GPI Weighted Average Common Shares (in thousands)

24,885

23,152

21,170

FY14: In 2Q14, GPI repurchased 80% of its 3% Convertible Notes, reducing share count by approximately 1.9 million. In 3Q14, GPI repurchased the remaining 3% Convertible Notes and extinguished all of the 2.25% Convertible Notes, reducing share count by approximately 800,000.

FY15: GPI repurchased approximately 1.2 million shares.

FY16: GPI repurchased 2.3 million shares representing a 10 percent reduction from the common share count as of December 31, 2015.

FY17: During 2017, GPI repurchased 3% of its float.

1Q18: GPI repurchased 135,605 shares for a total of $9.2 million. As of March 31, 2018, the Company’s outstanding common share count is ≈20.3 million and

$40.4 million remains available under the Company’s prior common stock

share repurchase authorization.

of 38


Dividends

$ in millions $ Per Share

38

§ During 1Q17, 2Q17, and 3Q17, the Company paid quarterly cash dividends of $0.24 per share.§ During 4Q17, the Company paid quarterly cash dividends of $0.25 per share.§ During 1Q18, the Company paid quarterly cash dividends of $0.26 per share.

$11

$13

$16$17

$20 $20 $20

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

2011 2012 2013 2014 2015 2016 2017

Dividends Paid ($mm)

Dividends Per Share


($ in millions)

Capital Expenditures

($ in millions)

$16 $20 $22 $22 $23 $24 $27 $50 $54 $65 $68

$70 $53

$29 $40

$62 $69

$95

$107 $101 $98

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Maintenance CapEx

Capital Expenditures

Depreciation & Amortization Expense

of 38

www.group1auto.com

§ GPI is shifting toward owning its real estate:

Ø Control of dealership real estate is a strong strategicasset

Ø Ownership means better flexibility and lower cost

Ø The Company looks for opportunistic real estateacquisitions in strategic locations

§ As of March 31, 2018, the Company owns approximately$1.1 billion of real estate (54% of dealership locations)financed through approximately $470 million of mortgagedebt

§ The Company has options to purchase six additionaldealership properties through 2019.

40

Leased vs. Owned Properties

Dealership property breakdown by region (as of March 31, 2018)

Dealerships

Geographic Location Owned Leased

United States 76 41

United Kingdom 20 27

Brazil 2 14

Total 98 82

Real Estate Strategy

46% 47% 46% 53% 56% 54%

54% 53% 54%47% 44% 46%

150 152 159173 175 180

2013 2014 2015 2016 2017 Mar-18

Leased Owned

www.group1auto.com

Conclusion

of 38


§ Well-balanced portfolio (geography, business mix and brands)

§ Profitability of different business units through the cycle

Ø Model proved itself during recession

§ Streamlined business -- generating cash

§ Will significantly benefit from U.S. tax reform legislation

§ Strong balance sheet

§ Opportunistic capital allocation

§ Operational growth and leverage

Ø Opportunity to drive growth in used vehicle and Parts & Service with processimprovements in all markets

Ø New Strategic initiatives launched in the U.S. aimed at growing used vehicles andincreasing aftersales capacity

Ø Finance & Insurance initiatives should drive further growth in the U.K. and Brazil

Ø Continued leverage opportunities as gross profit increases

§ Experienced, successful and driven management team

Why GPI?

42

www.group1auto.com

CORE VALUES

Integrity We conduct ourselves with the highest level of ethics both personally and professionally when we sell to and perform service for our customers without compromising our honesty

Transparency We promote open and honest communication between each other and our customers

Professionalism We set our standards high so that we can exceed expectations and strive for perfection in everything we do

Teamwork We put the interest of the group first, before our individual interests, as we know that success only comes when we work together

of 38


Appendix


Earl J. Hesterberg – President and Chief Executive Officer and Director(April 2005)

§ 35+ Years Industry Experience

§ Manufacturer and Automotive Retailing Experience: Ford Motor Company; Ford of Europe; Gulf States Toyota; Nissan Motor Corporation in U.S.A.; Nissan Europe

Daryl Kenningham – President, U.S. Operations(July 2011)


§ Manufacturer and Automotive Retailing Experience: Ascent Automotive; Gulf States Toyota; Nissan Motor Corporation in U.S.A. and Japan

John C. Rickel – Senior Vice President and Chief Financial Officer(December 2005)


§ Manufacturer and Automotive Retailing Experience: Ford Motor Company; Ford Europe

Frank Grese Jr. – Senior Vice President, Human Resources, Training and Operations Support(December 2004)


§ Manufacturer and Automotive Retailing Experience: Ford Motor Company; Nissan Motor Corporation in U.S.A.;AutoNation; Van Tuyl

Darryl M. Burman – Senior Vice President and General Counsel(December 2006)


§ Automotive-related Experience: Mergers and Acquisitions; Corporate Finance; Employment and Securities Law – Epstein Becker Green Wickliff & Hall, P.C.; Fant & Burman, L.L.P.

Peter C. DeLongchamps – Senior Vice President, Financial Services and Manufacturer Relations(July 2004)


§ Manufacturer and Automotive Retailing Experience: General Motors Corporation; BMW of North America; Advantage BMW in Houston

Michael Jones – Senior Vice President, Aftersales(April 2007)


§ Automotive-related Experience: Fixed Operations - Asbury Automotive; David McDavid Automotive Group; Ryan Automotive Group

45

Operating Management Team - Corporate

www.group1auto.com

$0

$5

$10

$15

$20

$25

4Q

07

1Q

08

2Q

08

3Q

08

4Q

08

1Q

09

2Q

09

3Q

09

4Q

09

1Q

10

2Q

10

3Q

10

4Q

10

1Q

11

2Q

11

3Q

11

4Q

11

GPI Adj. income from continuing operations ($mm)

8

9

10

11

12

13

14

15

16

17U.S. Light Vehicle SAAR (mm)

Profitable Throughout Downturn

1 Total debt + 8x rent expense* See appendix for reconciliations

($mm) 4Q08 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11

Quarterly Revenue $1,134 $1,020 $1,109 $1,247 $1,150 $1,191 $1,419 $1,462 $1,438 $1,409 $1,474 $1,570 $1,626

Quarterly Adjusted EBITDA* $16 $21 $31 $42 $29 $31 $41 $45 $37 $39 $55 $54 $51

Quarterly Adjusted EBIT* $10 $15 $24 $35 $23 $24 $34 $38 $31 $33 $48 $47 $44

Quarterly Adjusted Net Income* $1 $5 $10 $17 $10 $10 $18 $19 $15 $16 $25 $24 $22

LTM Adjusted EBITDAR* $183 $163 $149 $162 $174 $183 $194 $196 $205 $213 $225 $233 $247

Total Rent-Adj. Debt1 / Adj. EBITDAR* 5.7x 6.1x 6.4x 5.7x 5.3x 5.1x 4.8x 4.8x 4.7x 4.5x 4.2x 4.1x 3.9x

46

“Cash for clunkers”Collapse of Lehman, new vehicle unit sales declined 26%

Toyota recall

Japan earthquake and tsunami materially disrupt Toyota/Honda production and constrain dealer supply

($mm) (units in mm)

of 38

www.group1auto.com

Brazil


BRAZIL

Sao Paulo

Parana

Mato Grosso do Sul

§ 17 Dealerships (22 Franchises):

§ BMW (5)

§ Honda (4)

§ Jaguar (3)

§ Land Rover (3)

§ Toyota (4)

§ MINI (2)

§ Mercedes-Benz (1)

Group 1 is aligned with growing brands in Brazil.

Brazil Locations

48

Mato Grosso do Sul Location§ Campo Grande

Paraná Locations§ Cascavel§ Curitiba§ Londrina§ Maringá

Santa Catarina Location§ Joinville

São Paulo Locations§ Santo Andre§ São Bernardo do Campo§ São Caetano do Sul§ São Jose dos Campos§ São Paulo§ Taubaté

Santa Catarina


of 38

www.group1auto.com

U.K.


UNITED KINGDOM – England47 Dealerships (64 Franchises)

U.K. Locations

Watford (3)

Chelmsford (1)

Stansted (2)

Bedford

(1)

Farnborough (2)

Southend (2)Sout

(3)Watford (3) Chingford (1)

Bracknell (1)

Hindhead (1)

Worthing (1) Hailsham (1)

Harold Wood (1)

Hatfield (3)

Finchley Road (1)

Whetstone (1)

Borehamwood (1)

Kentish Town (1)

Watf

Guildford (1)

Newbury (1)

Basingstoke (1)BasinBasin

Reading (1)

Brighton (1) (1)(1)(1)(1) BrigBrigBrigBrigBrigBrigBrigBrigBrigBrigBrig

Couldson (1)

Bromley (1)(1)(1)(1)(1)(1)(1)(1) Dartford (2)

Maidstone (4)Maid

dson (1)

Sevenoaks (1)

Medway (1)

Sidcup (1)

Wokingham (1)


Bury St.

Edmunds (1)Cambridge (2)CambCamb

LONDON

King’s Lynn (1)

Norwich (1)Peterborough (1)

LONDON

of 38


Reconciliations The following section contains reconciliations of data denoted within this presentation.

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$16

$17

($22)

($57)

$8

$10

$18

($2)

$8

$13

$19

$11

$15

$25

$21

$21

Pro

visio

n for

incom

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axes

10

11

(13)

(39)

66

10

(2)

58

12

69

15

13

13

Oth

er

inte

rest

expense,

net

10

99

97

87

77

67

78

89

9

Non-C

ash a

sset

impairm

ent

charg

es

- -

48

115

-

2 1

18

-

1 2

8 0

0 4

1

Mort

gage d

ebt

refin

ance c

harg

es

- -

- -

- 1

- -

- -

- -

- -

- -

(Gain

) Loss o

n r

eal esta

te a

nd d

eale

rship

tra

nsactions

- 1

0 -

1 (1

)

- 1

- 5

(1)

-

- -

- -

(Gain

) Loss o

f debt

redem

ption

(0)

-

(0)

(1

7)

(7

)

(1)

(1

)

- 4

-

- -

- -

- -

Seve

rance c

osts

- -

- -

- -

- -

- 1

- -

- -

- -

Legal sett

lem

ent

- -

- -

- -

- -

- -

- -

- -

- 1

Ad

just

ed

EB

IT$35

$38

$23

$10

$15

$24

$35

$23

$24

$34

$38

$31

$33

$48

$47

$44

Depre

cia

tion A

mort

ization e

xpense

6 6

7 7

6 6

7 6

6 7

7 7

6 7

7 7

Ad

just

ed

EB

ITD

A$41

$45

$29

$16

$21

$31

$42

$29

$31

$41

$45

$37

$39

$55

$54

$51

G&

A R

ent

Expense

14

13

13

13

13

13

13

13

13

13

13

13

12

12

12

12

Ad

just

ed

EB

ITD

AR

$54

$58

$42

$29

$34

$43

$55

$41

$43

$54

$57

$50

$51

$67

$66

$63

Th

ree

mo

nth

s e

nd

ed

,

Note

: O

ne t

ime c

harg

es a

re p

re-t

ax

52

of 38

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Note

: O

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re a

fter-

tax

($m

m)

De

c-0

8M

ar-

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Ju

n-0

9S

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-09

De

c-0

9M

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10

Ju

n-1

0S

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-10

De

c-1

0M

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11

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-11

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c-1

1

Net

Incom

e($

57)

$8

$10

$18

($2)

$8

$13

$19

$11

$15

$25

$21

$21

Non-C

ash a

sset

impairm

ent

charg

es

67

- 1

0 12

- 1

1 5

0 0

2 0

Mort

gage d

ebt

refin

ance c

harg

es

- -

0 -

- -

- -

- -

- -

-

(Gain

) Loss o

n r

eal esta

te a

nd d

eale

rship

tra

nsactions

- 1

(1)

-

1 -

4 (1

)

- -

- -

-

(Gain

) Loss o

f debt

redem

ption

(9)

(4

)

(0)

(0

)

- 2

- -

- -

- -

-

Seve

rance c

osts

- -

- -

- -

0 -

- -

- -

-

Incom

e t

ax e

ffect

- -

- (2

)

- -

- -

(1)

- -

- -

Legal S

ett

lem

ent

- -

- -

- -

- -

- -

- -

1

Ad

just

ed

Ne

t In

co

me

$1

$5

$10

$17

$10

$10

$18

$19

$15

$16

$25

$24

$22

Th

ree

mo

nth

s e

nd

ed

,

53

of 38

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w (

No

n-G

AA

P)

54

Op

era

tin

g C

ash

Flo

w R

eco

ncilia

tio

n:

2017

2016

2015

2014

2013

2012

2011

Op

era

tin

g C

ash

Flo

w a

s R

ep

ort

ed

(G

AA

P)

198,9

25

$

384,8

57

141,0

47

198,2

88

52,3

72

(75,3

22)

199,3

16

Change in

flo

orp

lan n

ote

s p

aya

ble

-cre

dit

facili

ties,

exc

ludin

g flo

orp

lan o

ffset account and n

et acquis

ition a

nd

dis

positi

on

88,7

42

(113,1

16)

100,3

02

5,8

81

165,4

04

245,5

44

(1

3,3

50)

Change in

flo

orp

lan n

ote

s p

aya

ble

-manufa

ctu

rer

affili

ate

s

associa

ted w

ith n

et acquis

ition a

nd

dis

positi

on r

ela

ted a

ctiv

ity(3

,000)

-

3,0

00

2,9

70

(1

4,9

53)

(11,0

28)

(33,7

12)

Ad

juste

d O

pe

rati

ng

Cash

Flo

w (

No

n-G

AA

P)

284,6

67

271,7

41

244,3

49

207,1

39

202,8

23

159,1

94

152,2

54

Re

co

nc

ilia

tio

n o

f C

ert

ain

No

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P F

ina

nc

ial M

ea

su

res

(Un

au

dit

ed

, in

mil

lio

ns)

of 38

EBITDA RECONCILIATION:

2018 2017

Net income 35.8$ 33.9$

Other interest expense, net (1)

18.8 17.0

Depreciation and amortization expense 16.3 13.6

Legal settlements - (1.8)

Income tax (benefit) expense 10.4 17.3

Adjusted EBITDA (2)

81.3$ 80.0$

(1)

(2)

May not foot due to rounding

Three Months Ended March 31,

Adjusted EBITDA is defined as income (loss) plus loss on redemption of long-term debt, other interest expense, net, depreciation and

amortization expense, non-cash asset impairment charges, acquisition costs, catastrophic events, net gain on real estate and dealership

transactions, severance, deal costs, legal settlements, foreign transaction tax, and income tax expense (less income tax benefit). While

Adjusted EBITDA should not be construed as a substitute for net income or as a better measure of liquidity than net cash provided by

operating activities, which are determined in accordance with accounting principles generally accepted in the United States of America

(“GAAP”), it is included in our discussion of earnings to provide additional information regarding the amount of cash our business is

generating with respect to our ability to meet future debt services, capital expenditures and working capital requirements. Adjusted

EBITDA should not be used as an indicator of our operating performance. Consistent with industry practices, our management utilizes

Adjusted EBITDA when valuing dealership operations. This measure may not be comparable to similarly titled measures reported by other

companies. The table above shows the calculation of Adjusted EBITDA and reconciles Adjusted EBITDA to the GAAP measurement

income (loss) for the periods presented in the table.

Excludes Floorplan interest expense

Group 1 Automotive, Inc.

Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited, in millions)

of 38

NE

T I

NC

OM

E (

LO

SS

) R

EC

ON

CIL

IAT

ION

:T

hree M

on

ths

En

ded

:

06.3

0.1

209.3

0.1

212.3

1.1

203.3

1.1

306.3

0.1

309.3

0.1

312.3

1.1

303.3

1.1

406.3

0.1

409.3

0.1

412.3

1.1

403.3

1.1

5

As

report

ed

28,6

25

$

31,3

35

$

17,1

32

$

22,1

18

$

37,3

88

$

32,7

65

$

21,7

21

$

31,3

03

$

16,8

62

$

26,1

62

$

18,6

77

$

35,8

15

$

Aft

er-t

ax A

dju

stm

ents

(1) :

Non-c

ash a

sset

im

pai

rmen

t ch

arges

115

- 4,2

77

-

369

349

3,3

19

-

1,0

67

6,5

59

19,8

78

-

(Gai

n)

loss

on r

eal

esta

te a

nd d

eale

rship

tra

nsa

ctio

ns

(659)

-

(276)

(3

56)

(4

,785)

(2

30)

-

-

(3

16)

(8

,572)

1,5

50

-

(Gai

n)

loss

on r

epurc

has

e of

long-t

erm

deb

t-

--

--

- -

-

20,7

78

17,9

34

-

-

Inco

me

tax b

enef

it r

elat

ed t

o t

ax e

lect

ions

for

pri

or

per

iods

- -

- -

- -

- -

-

- -

-

Cat

astr

ophic

even

ts1,6

58

- 1,2

19

504

6,7

57

158

- -

1,0

39

671

- -

Sev

eran

ce c

ost

s -

- 548

-

- 454

237

-

- 388

385

-

Acq

uis

itio

n c

ost

s in

cludin

g r

elat

ed t

ax i

mpac

t-

- 1,1

11

6,9

68

-

(630)

-

-

-

- 188

-

All

ow

ance

for

cert

ain d

efer

red t

ax a

sset

s an

d u

nce

rtai

n t

ax p

osi

tions

- -

- -

- -

3,6

29

-

- -

- -

Leg

al s

ettl

emen

ts-

- -

-

-

--

-

274

- -

-

- -

- -

- -

- -

274

- -

-

Tax

rat

e ch

anges

- -

- -

- -

- -

- (3

,358)

-

-

29,7

39

$

31,3

35

$

24,0

11

$

29,2

34

$

39,7

29

$

32,8

66

$

28,9

06

$

31,3

03

$

39,9

78

$

39,7

84

$

40,6

78

$

35,8

15

$

AD

JU

ST

ED

NE

T I

NC

OM

E A

TT

RIB

UT

AB

LE

TO

DIL

UT

ED

CO

MM

ON

SH

AR

ES

RE

CO

NC

ILIA

TIO

N:

Adju

sted

net

inco

me

29,7

39

$

31,3

35

$

24,0

11

$

29,2

34

$

39,7

29

$

32,8

66

$

28,9

06

$

31,3

03

$

39,9

78

$

39,7

84

$

40,6

78

$

35,8

15

$

Les

s: A

dju

sted

ear

nin

gs

allo

cate

d t

o p

arti

cipat

ing s

ecuri

ties

1,6

37

1,6

41

1,0

66

1,2

33

1,6

92

1,3

24

1,0

57

1,1

56

1,4

56

1,5

20

1,5

29

1,3

88

Adju

sted

net

inco

me

avai

lable

to d

ilute

d c

om

mon s

har

es28,1

02

$

29,6

94

$

22,9

45

$

28,0

01

$

38,0

37

$

31,5

42

$

27,8

49

$

30,1

47

$

38,5

22

$

38,2

64

$

39,1

49

$

34,4

27

$

DIL

UT

ED

EA

RN

ING

S (

LO

SS

)

PE

R S

HA

RE

RE

CO

NC

ILIA

TIO

N:

Th

ree M

on

ths

En

ded

:

06.3

0.1

209.3

0.1

212.3

1.1

203.3

1.1

306.3

0.1

309.3

0.1

312.3

1.1

303.3

1.1

406.3

0.1

409.3

0.1

412.3

1.1

403.3

1.1

5

As

report

ed

1.2

0$

1.3

2$

0.7

0$

0.8

8$

1.4

3$

1.1

9$

0.8

1$

1.1

9$

0.6

2$

1.0

3$

0.7

7$

1.4

7$

A

fter

-tax

Adju

stm

ents

:

Non-c

ash a

sset

im

pai

rmen

t ch

arges

0.0

1

-

0.1

8

- 0.0

1

0.0

1

0.1

2

- 0.0

4

0.2

6

0.8

1

-

(Gai

n)

loss

on r

eal

esta

te a

nd d

eale

rship

tra

nsa

ctio

ns

(0.0

3)

-

(0.0

1)

(0

.01)

(0.1

8)

(0

.01)

-

-

(0

.01)

(0

.34)

0.0

6

-

(Gai

n)

loss

on r

epurc

has

e of

long-t

erm

deb

t-

- -

-

-

- -

-

0.7

6

0.7

1

-

-

Sev

eran

ce c

ost

s -

- 0.0

2

-

-

0.0

2

0.0

1

-

-

0.0

1

0.0

2

-

Acq

uis

itio

n c

ost

s in

cludin

g r

elat

ed t

ax i

mpac

t-

- 0.0

5

0.2

7

- (0

.02)

-

-

-

- 0.0

1

-

All

ow

ance

for

cert

ain d

efer

red t

ax a

sset

s an

d u

nce

rtai

n t

ax p

osi

tions

- -

-

-

- -

0.1

4

-

-

- -

-

Leg

al s

ettl

emen

ts-

- -

-

-

--

-

0.0

1

- -

-

- -

- -

- -

- -

0.0

1

- -

-

- -

- -

- -

- -

- (0

.13)

-

-

Adju

sted

dil

ute

d i

nco

me

per

shar

e (2

)1.2

5$

1.3

2$

0.9

9$

1.1

6$

1.5

2$

1.2

0$

1.0

8$

1.1

9$

1.4

7$

1.5

7$

1.6

7$

1.4

7$

Wei

ghte

d a

ver

age

dil

uti

ve

com

mon s

har

es o

uts

tandin

g22,5

13

22,4

58

23,2

44

24,1

13

24,9

80

26,3

42

25,7

92

25,4

28

26,2

42

24,4

32

23,4

66

23,4

46

Par

tici

pat

ing s

ecuri

ties

1,3

17

1,2

45

1,0

91

1,0

72

1,1

12

1,1

00

983

963

986

971

925

932

Tota

l w

eighte

d a

ver

age

shar

es o

uts

tandin

g23,8

30

23,7

03

24,3

35

25,1

85

26,0

92

27,4

42

26,7

75

26,3

91

27,2

28

25,4

03

24,3

91

24,3

78

(1)

(2

)

Grou

p 1

Au

tom

oti

ve,

Inc.

Recon

cil

iati

on

of

Certa

in N

on

-GA

AP

Fin

an

cia

l M

easu

res

(Un

au

dit

ed

, in

th

ou

san

ds)

Adju

sted

net

inco

me

(2)

Fore

ign d

efer

red i

nco

me

tax b

enef

it

Fore

ign d

efer

red i

nco

me

tax b

enef

it

Fore

ign t

ransa

ctio

n t

ax

Fore

ign t

ransa

ctio

n t

ax

Tax

rat

e ch

anges

Ref

er t

o s

epar

ate

reco

nci

liat

ions

of

cert

ain n

on-G

AA

P f

inan

cial

mea

sure

s w

ithin

the

resp

ecti

ve

quar

terl

y e

arnin

gs

rele

ase

sched

ule

s fo

r sp

ecif

ic t

ax b

enef

it o

r ta

x p

rovis

ion i

nfo

rmat

ion.

We

bel

ieve

that

thes

e ad

just

ed f

inan

cial

mea

sure

s ar

e re

levan

t an

d u

sefu

l to

inves

tors

bec

ause

they

pro

vid

e ad

dit

ional

info

rmat

ion r

egar

din

g t

he

per

form

ance

of

our

oper

atio

ns

and

impro

ve

per

iod-t

o-p

erio

d c

om

par

abil

ity.

Thes

e m

easu

res

are

not

mea

sure

s of

finan

cial

per

form

ance

under

GA

AP

. A

ccord

ingly

, th

ey s

hould

not

be

consi

der

ed a

s su

bst

itute

s fo

r th

eir

unad

just

ed c

ounte

rpar

ts,

whic

h a

re p

repar

ed i

n a

ccord

ance

wit

h G

AA

P.

Alt

hough w

e fi

nd t

hes

e non-G

AA

P r

esult

s use

ful

in e

val

uat

ing t

he

per

form

ance

of

our

busi

nes

s, o

ur

reli

ance

on

thes

e m

easu

res

is l

imit

ed b

ecau

se t

he

adju

stm

ents

oft

en h

ave

a m

ater

ial

impac

t on o

ur

finan

cial

sta

tem

ents

cal

cula

ted i

n a

ccord

ance

wit

h G

AA

P.

Ther

efore

, w

e ty

pic

ally

use

thes

e

adju

sted

num

ber

s in

conju

nct

ion w

ith o

ur

GA

AP

res

ult

s to

addre

ss t

hes

e li

mit

atio

ns.

of 38

NE

T I

NC

OM

E (

LO

SS

) R

EC

ON

CIL

IAT

ION

:

As

report

ed

Aft

er-t

ax A

dju

stm

ents

(1) :

Non-c

ash a

sset

im

pai

rmen

t ch

arges

(Gai

n)

loss

on r

eal

esta

te a

nd d

eale

rship

tra

nsa

ctio

ns

(Gai

n)

loss

on r

epurc

has

e of

long-t

erm

deb

t

Inco

me

tax b

enef

it r

elat

ed t

o t

ax e

lect

ions

for

pri

or

per

iods

Cat

astr

ophic

even

ts

Sev

eran

ce c

ost

s

Acq

uis

itio

n c

ost

s in

cludin

g r

elat

ed t

ax i

mpac

t

All

ow

ance

for

cert

ain d

efer

red t

ax a

sset

s an

d u

nce

rtai

n t

ax p

osi

tions

Leg

al s

ettl

emen

ts

Tax

rat

e ch

anges

AD

JU

ST

ED

NE

T I

NC

OM

E A

TT

RIB

UT

AB

LE

TO

DIL

UT

ED

CO

MM

ON

SH

AR

ES

RE

CO

NC

ILIA

TIO

N:

Adju

sted

net

inco

me

Les

s: A

dju

sted

ear

nin

gs

allo

cate

d t

o p

arti

cipat

ing s

ecuri

ties

Adju

sted

net

inco

me

avai

lable

to d

ilute

d c

om

mon s

har

es

DIL

UT

ED

EA

RN

ING

S (

LO

SS

)

PE

R S

HA

RE

RE

CO

NC

ILIA

TIO

N:

As

report

ed

A

fter

-tax

Adju

stm

ents

:

Non-c

ash a

sset

im

pai

rmen

t ch

arges

(Gai

n)

loss

on r

eal

esta

te a

nd d

eale

rship

tra

nsa

ctio

ns

(Gai

n)

loss

on r

epurc

has

e of

long-t

erm

deb

t

Sev

eran

ce c

ost

s

Acq

uis

itio

n c

ost

s in

cludin

g r

elat

ed t

ax i

mpac

t

All

ow

ance

for

cert

ain d

efer

red t

ax a

sset

s an

d u

nce

rtai

n t

ax p

osi

tions

Leg

al s

ettl

emen

ts

Adju

sted

dil

ute

d i

nco

me

per

shar

e (2

)

Wei

ghte

d a

ver

age

dil

uti

ve

com

mon s

har

es o

uts

tandin

g

Par

tici

pat

ing s

ecuri

ties

Tota

l w

eighte

d a

ver

age

shar

es o

uts

tandin

g

Adju

sted

net

inco

me

(2)

Fore

ign d

efer

red i

nco

me

tax b

enef

it

Fore

ign d

efer

red i

nco

me

tax b

enef

it

Fore

ign t

ransa

ctio

n t

ax

Fore

ign t

ransa

ctio

n t

ax

Tax

rat

e ch

anges

Th

ree M

on

ths

En

ded

:

06.3

0.1

509.3

0.1

512.3

1.1

503.3

1.1

606.3

0.1

609.3

0.1

612.3

1.1

603.3

1.1

76.3

0.1

79.3

0.1

712.3

1.1

73.3

1.1

8

46,3

10

$

45,2

61

$

(3

3,3

87)

$

34,2

91

$

46,5

80

$

35,3

66

$

30,8

28

$

33,9

39

$

39,1

33

$

29,8

81

$

110,4

89

$

35,8

14

$

848

776

72,7

98

315

633

6,7

46

12,7

56

-

- 5,9

47

6,4

64

-

(601)

-

(4,3

57)

212

156

(696)

(2

65)

-

- 497

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

- -

593

- 398

1,6

59

1,7

27

281

- -

393

9,0

22

- -

167

- 220

- -

- 1,2

49

-

- -

353

-

- -

- 578

- -

- -

288

- -

-

- -

- -

- -

- -

- 834

- -

610

- -

- -

- (7

,312)

(1

,137)

-

450

- -

- -

- -

- 274

- -

- -

- -

(73,0

28)

-

- -

- -

(1,6

86)

-

- -

- -

- -

47,9

27

$

46,0

37

$

35,6

72

$

37,0

55

$

47,4

10

$

41,9

71

$

37,2

56

$

32,8

02

$

39,8

14

$

46,6

31

$

44,2

78

$

35,8

14

$

47,9

27

$

46,0

37

$

35,6

72

$

37,0

55

$

47,4

10

$

41,9

71

$

37,2

56

$

32,8

02

$

39,8

14

$

46,6

31

$

44,2

78

$

35,8

14

$

1,8

55

1,7

59

1,3

44

1,4

57

1,9

18

1,6

95

1,4

77

1,2

06

1,4

13

1,6

03

1,4

83

1,2

08

46,0

72

$

44,2

78

$

34,3

28

$

35,5

98

$

45,4

92

$

40,2

76

$

35,7

79

$

31,5

96

$

38,4

01

$

45,0

28

$

42,7

95

$

34,6

06

$

06.3

0.1

509.3

0.1

512.3

1.1

503.3

1.1

606.3

0.1

609.3

0.1

612.3

1.1

603.3

1.1

706.3

0.1

709.3

0.1

712.3

1.1

73.3

1.1

8

1.9

1$

1.8

8$

(1.4

1)

$

1.4

7$

2.1

2$

1.6

5$

1.4

4$

1.5

8$

1.8

4$

1.4

3$

5.2

7$

1.7

0$

0.0

4

0.0

3

3.0

7

0.0

1

0.0

3

0.3

2

0.5

9

-

- 0.2

8

0.3

0

-

(0.0

3)

-

(0.1

8)

0.0

1

0.0

1

(0

.03)

(0

.01)

-

- 0.0

2

-

-

- -

- -

- -

- -

- -

- -

0.0

1

-

0.0

1

- -

- 0.0

6

-

- -

0.0

2

-

- -

-0.0

3

-

- -

- 0.0

1

-

- -

- -

--

- -

- -

- 0.0

4

-

-

0.0

3

-

--

- -

(0.3

4)

(0

.05)

-

0.0

2

- -

- -

- -

- 0.0

1

- -

- -

(3.4

8)

-

- -

- -

(0.0

8)

-

- -

- -

- -

1.9

8$

1.9

1$

1.5

1$

1.5

9$

2.1

6$

1.9

6$

1.7

4$

1.5

3$

1.8

7$

2.2

3$

2.1

1$

1.7

0$

23,3

15

23,1

37

22,7

18

22,4

53

21,0

70

20,5

78

20,5

92

20,6

98

20,5

22

20,2

25

20,2

61

20,3

07

944

925

897

921

892

872

858

818

761

724

708

715

24,2

59

24,0

62

23,6

15

23,3

74

21,9

62

21,4

50

21,4

50

21,5

16

21,2

83

20,9

49

20,9

69

21,0

22

(1)

(2)

Grou

p 1

Au

tom

oti

ve,

Inc.

Recon

cil

iati

on

of

Certa

in N

on

-GA

AP

Fin

an

cia

l M

easu

res

(Un

au

dit

ed

, in

th

ou

san

ds)

Ref

er t

o s

epar

ate

reco

nci

liat

ions

of

cert

ain n

on-G

AA

P f

inan

cial

mea

sure

s w

ithin

the

resp

ecti

ve

quar

terl

y e

arnin

gs

rele

ase

sched

ule

s fo

r sp

ecif

ic t

ax b

enef

it o

r ta

x p

rovis

ion i

nfo

rmat

ion.

We

bel

ieve

that

thes

e ad

just

ed f

inan

cial

mea

sure

s ar

e re

levan

t an

d u

sefu

l to

inves

tors

bec

ause

they

pro

vid

e ad

dit

ional

info

rmat

ion r

egar

din

g t

he

per

form

ance

of

our

oper

atio

ns

and i

mpro

ve

per

iod-t

o-p

erio

d c

om

par

abil

ity.

Thes

e m

easu

res

are

not

mea

sure

s of

finan

cial

per

form

ance

under

GA

AP

. A

ccord

ingly

, th

ey s

hould

not

be

consi

der

ed a

s su

bst

itute

s fo

r th

eir

unad

just

ed

counte

rpar

ts,

whic

h a

re p

repar

ed i

n a

ccord

ance

wit

h G

AA

P.

Alt

hough w

e fi

nd t

hes

e non-G

AA

P r

esult

s use

ful

in e

val

uat

ing t

he

per

form

ance

of

our

busi

nes

s, o

ur

reli

ance

on t

hes

e m

easu

res

is l

imit

ed b

ecau

se t

he

adju

stm

ents

oft

en h

ave

a m

ater

ial

impac

t on o

ur

finan

cial

sta

tem

ents

cal

cula

ted i

n a

ccord

ance

wit

h G

AA

P.

Ther

efore

, w

e ty

pic

ally

use

thes

e ad

just

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Group 1 Automotive, Inc.Reconciliation of Certain Non-GAAP Financial Measures - U.S.

(Unaudited) (Dollars in thousands)


2018 2017% Increase/(Decrease)

SG&A RECONCILIATION:As reported $ 252,941 $ 236,273 7.1 Pre-tax adjustments:

Legal settlements (2) — 1,833

Adjusted SG&A (1) $ 252,941 $ 238,106 6.2SG&A AS % REVENUES:

Unadjusted 12.1 12.0Adjusted (1) 12.1 12.1

SG&A AS % GROSS PROFIT:Unadjusted 75.4 73.7Adjusted (1) 75.4 74.3

OPERATING MARGIN %Unadjusted 3.3 3.7Adjusted (1) 3.3 3.6

PRETAX MARGIN %:Unadjusted 1.9 2.3Adjusted (1) 1.9 2.2

SAME STORE SG&A RECONCILIATION:As reported $ 247,611 $ 236,051 4.9 Pre-tax adjustments:

Legal settlements (2) — 1,833Adjusted Same Store SG&A (1) $ 247,611 $ 237,884 4.1

SAME STORE SG&A AS % REVENUES:Unadjusted 12.1 12.0Adjusted (1) 12.1 12.1

SAME STORE SG&A AS % GROSS PROFIT:Unadjusted 75.1 73.7Adjusted (1) 75.1 74.3

SAME STORE OPERATING MARGIN %Unadjusted 3.4 3.7Adjusted (1) 3.4 3.6

(1) See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selecteditems that the Company believes impact comparability of financial results between reporting periods.

(2) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

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Group 1 Automotive, Inc.Reconciliation of Certain Non-GAAP Financial Measures - Consolidated

(Unaudited) (Dollars in thousands, except per share amounts)


2018 2017% Increase/(Decrease)

NET INCOME RECONCILIATION:

As reported

Pretax Net Income $ 46,167 $ 51,196

Income Tax Provision (10,353) (17,257)

Net Income $ 35,814 $ 33,939 5.5

Effective Tax Rate 22.4% 33.7%

Adjustments:

Legal settlements (2)

Pre-tax — (1,833)

Tax impact — 696

Adjusted

Pretax Net Income $ 46,167 $ 49,363

Income Tax Provision (10,353) (16,561)

Adjusted net income (1) $ 35,814 $ 32,802 9.2

Effective Tax Rate 22.4% 33.6%

ADJUSTED NET INCOME ATTRIBUTABLE TO DILUTEDCOMMON SHARES RECONCILIATION:

Adjusted net income (1) $ 35,814 $ 32,802 9.2

Less: Adjusted earnings allocated to participating securities 1,208 1,206 0.2

Adjusted net income available to diluted common shares (1) $ 34,606 $ 31,596 9.5DILUTED INCOME PER COMMON SHARE RECONCILIATION:

As reported $ 1.70 $ 1.58 7.6 After-tax adjustments:

Legal settlements (2) — (0.05)Adjusted diluted income per share (1) $ 1.70 $ 1.53 11.1

SG&A RECONCILIATION:As reported $ 324,347 $ 289,779 11.9 Pre-tax adjustments:

Legal settlements (2) — 1,833

Adjusted SG&A (1) $ 324,347 $ 291,612 11.2

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SG&A AS % REVENUES:

Unadjusted 11.3 11.5

Adjusted (1) 11.3 11.6SG&A AS % GROSS PROFIT:

Unadjusted 77.3 75.6

Adjusted (1) 77.3 76.0OPERATING MARGIN %

Unadjusted 2.8 3.2Adjusted (1) 2.8 3.1

PRETAX MARGIN %:Unadjusted 1.6 2.0Adjusted (1) 1.6 2.0

SAME STORE SG&A RECONCILIATION:As reported $ 306,200 $ 288,295 6.2 Pre-tax adjustments:

Legal settlements (2) — 1,833Adjusted Same Store SG&A (1) $ 306,200 $ 290,128 5.5

SAME STORE SG&A AS % REVENUES:Unadjusted 11.5 11.5Adjusted (1) 11.5 11.6

SAME STORE SG&A AS % GROSS PROFIT:Unadjusted 77.0 75.4Adjusted (1) 77.0 75.9

SAME STORE OPERATING MARGIN %Unadjusted 2.9 3.2Adjusted (1) 2.9 3.1

(1) See the section of this release entitled "Non-GAAP Financial Measures" for information regarding non-GAAP financial measures and certain selecteditems that the Company believes impact comparability of financial results between reporting periods.

(2) For the three months ended March 31, 2017, the Company recognized a net pre-tax gain related to a settlement with an OEM of $1.8 million.

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