Keenan JohnstonShivam KhannaDavid Light

September 25, 2008

Presentation Outline

Macroeconomic Review Current market conditions Industry Overview Copart Overview Historical Performance Recent Events/Performance Portfolio Positioning Financial Projections

Macroeconomic review

• High oil prices, credit market turmoil and weakness in financial sector has dragged markets down in the recent months

• The market is down 17% this year

• Copart’s revenues however, are not materially affected by economic slowdowns

Source: Yahoo Finance, Company filings

Current market conditions Non-cyclical companies trading at a

premiumRepresents insulation for economic

uncertainty Volatility at a high (VIX below)

Source: Yahoo Finance

Industry Overview

Industry benefits with increasing demand for cars, More More cars = More accidents = More auctions = More revenuecars = More accidents = More auctions = More revenue Current economic conditions are not conducive to car purchasing

Insurance companies are facing shrinking premium margins and in order to cuts costs are purchasing recycled parts from salvaged vehicles. More demand for More demand for Copart’s auctionsCopart’s auctions

Rising global oil prices have driven people to find alternatives to driving, Less car accidents = fewer Less car accidents = fewer opportunities for revenueopportunities for revenue

Key Market Players23%

42%

35%

Adesa/IAAI

Independent

Copart

Source: Wikiinvest

Copart Overview

Runs a proprietary online auction system for salvaged vehicles Damaged cars often termed by Insurance Companies as

“Total Loss”

Provides vehicle suppliers a full range of re-marketing services to process and sell these vehicles

Earns Revenue from both buyers and sellers at the auction (not dissimilar to StubHub or Ebay)

Source: Company filings

Copart Business Model - US

Accident totally destroys car

Insurance Co. deems car too costly to repair

Copart auctions car to buyers all around the globeand earns income from both parties

Dismantlers Exporters RebuildersUsed car dealers

Source: Company filings

Copart Business Model - UK

Accident totally destroys car

Insurance Co. deems car too costly to repair

Copart purchases car from Insurance company andremarkets it to potential buyers

Risk ofdevaluation

Dismantlers Exporters RebuildersUsed car dealers

Source: Company filings

North American Facilities Copart Plans to add 10-15

North American Facilities in the next year

Management sees potential for 150-200 facilities over time

~35% market share

Source: R.W. Baird

U.K. Facilities In 2008, increased

facilities from 10 to 15 Projected to acquire 5

more facilities in the next year

30% market share by the end of next year in U.K.

Source: R.W. Baird

Historical financial performance

Historically strong financial performance Driven by outstanding margins

2003 2004 2005 2006 2007Total Revenue 347.4 391.0 447.7 528.5 560.7

Y-2-Y growth rate - 12.5% 14.5% 18.0% 6.1%

Gross Profit 145.0 163.4 202.0 230.5 266.8Gross margin 41.7% 41.8% 45.1% 43.6% 47.6%

EBITDA 116.3 124.5 186.9 203.0 240.3EBITDA margin 33.5% 31.8% 41.7% 38.4% 42.8%

Net Income 57.3 49.7 102.1 96.9 136.3Net margin 16.5% 12.7% 22.8% 18.3% 25.0%

Source: Company filings

Shareholder Base

21%

8%

71%

Institutions

Insiders

Retail

Source: Yahoo Finance

Recent events

September 18, 2008- Copart adds a new facility in Kentucky due to growing demand

April 14, 2008- Copart acquires fourth facility in Missouri

March 7, 2008- Revenues declined after company declared UK expansion had not gone according to plan

March 6, 2008- Copart entered into a $200 million revolving line of credit with Bank of America.

Source: Company filings, Reuters

Stock performance

Source: Google Finance

Current Portfolio

Correlation

Source: Yahoo Finance

C PR T AE E AE O DO FR J KHY KMB WFR S R C L WAGC PR T 1.0000AE E 0.1442 1.0000AE O 0.3105 0.2184 1.0000DO 0.0279 0.2051 0.0266 1.0000FR 0.1958 0.3076 0.3313 0.1409 1.0000J KHY 0.1885 0.5134 0.3828 0.0333 0.3620 1.0000KMB 0.1858 0.5137 0.2930 0.0852 0.2836 0.4602 1.0000WFR 0.3078 0.1972 0.2604 0.3172 0.1965 0.2135 0.1995 1.0000S R C L 0.1535 0.1635 0.1995 0.0903 0.2293 0.1451 0.3501 0.2454 1.0000WAG 0.2659 0.2537 0.4046 0.1101 0.1153 0.2410 0.3138 0.1702 0.2821 1.0000

Financial Projections

Base case

In-line with management projections Gross PP&E to remain at 95% of sales

historically 90-104% Net goodwill at 38% of net PP&E

historically 33-45% Tax rate: 38%2008 E 2009 E 2010 E 2011 E 2012 E 2013 E 2014 E 2015 E

US & CA revenue growth 7.5% 7.0% 7.0% 7.0% 7.0% 7.0% 6.0% 5.0%UK revenue growth 1177.2% 20.0% 14.0% 12.0% 10.0% 8.0% 7.0% 6.0%Total Revenue 776.0 854.9 930.7 1,008.7 1,088.0 1,167.4 1,240.9 1,306.6

Y-2-Y growth rate 38.4% 10.2% 8.9% 8.4% 7.9% 7.3% 6.3% 5.3%

COGS % of sales 52.0% 52.0% 52.0% 52.0% 52.0% 52.0% 52.0% 52.0%SG&A % of sales 11.3% 11.3% 11.3% 11.3% 11.3% 11.3% 11.3% 11.3%

Base case

With relatively optimistic assumptions our model yielded a value well below market

DCF Valuation ($MM)Sum of P.V. of FCF $2,177Minus outstanding debt $0Equity value $2,177CPRT value per share 23.29Equals Value +/- 10% 25.62 / 20.96

Free Cash Flows ($MM) 2008E 2009E 2010E 2011E 2012E 2013E 2014E 2015E Terminal ValueFree Cash Flows 16.6 186.8 213.1 231.6 252.0 273.9 284.7 312.1 $3,855

Present Value of Cash Flows $15 $148 $150 $145 $140 $136 $125 $122 $1,196

Beta 1.06RF 5.0%Rm 12%Re 12.4%Rd n/a

MVE $3,899MVD $0VF $3,899g 4%

Tax Rate 38%Debt/TV 0.0%Equity/TV 100.0%WACC 12.42%

Base case- sensitivity

Sensitivity Analysis- WACC/GrowthWACC

23.29 9.0% 10.0% 11.0% 12.0% 12.4% 13.0% 14.0% 15.0% 16.0%2.0% 32.76 28.08 24.49 21.66 20.64 19.37 17.48 15.90 14.572.5% 34.45 29.26 25.35 22.29 21.20 19.85 17.85 16.20 14.803.0% 36.42 30.61 26.31 23.00 21.82 20.38 18.26 16.51 15.053.5% 38.75 32.17 27.40 23.78 22.52 20.96 18.70 16.86 15.32

Growth 4.0% 41.54 33.98 28.64 24.67 23.29 21.61 19.19 17.23 15.614.5% 44.96 36.13 30.07 25.67 24.17 22.34 19.73 17.64 15.935.0% 49.23 38.71 31.75 26.82 25.16 23.16 20.33 18.09 16.285.5% 54.72 41.85 33.72 28.14 26.29 24.08 21.00 18.59 16.666.0% 62.04 45.79 36.10 29.69 27.60 25.14 21.76 19.15 17.08

RCMP Historical Transactions

Date Buy/Sell Price Shares Value

Feb 28, 2003 Buy $7.82 (1000) $7,820

Nov 15, 2007 Sell $36.20 (300) ($10,860)

Apr 30, 2008 Sell $41.30 (300) ($12,390)

Date Shares Price Market Value

Sep 22, 2008 400 $43.34 $17,336

Current Holdings

Recommendation

Sell 200 shares with a $36 limit order

Gross proceeds of approximately $8,200Based on market price of $41.00

Will realize a gain of approximately $6,630