Annual Results: Year ended 31 December 2016 · 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%

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Annual Results: Year ended 31 December 2016

Presented byAndy Bruce Chief Executive OfficerRobin Gregson Chief Financial OfficerNigel McMinn Chief Operating Officer

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Record profits and well positioned for future growth

Lookers Annual Results: Year end 31 December 2016

§ 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

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The Right Strategy


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Portfolio Transformed: Right Brands, Right Locations

Acquisitions Disposals

Knights BMW/MINI

Drayton Mercedes-Benz Nissan Leeds

Skoda West London

Other non core businesses


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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


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Dealership estate upgrade

Lookers plc / For the year end 31 December 2016

2016 2017 2018 2019 2020

£m Maintenance 8 8 8 8 8

£m Upgrades 28 30 20 15 5

£m TOTAL 36 38 28 23 13

Mercedes-Benz Tonbridge

Jaguar Land Rover in West London

Newcastle Volkswagen

Newcastle Nissan

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Financial Review

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Strong Financial Performance Lookers plc2016(£)

2015(£)

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%

§ 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)


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Underlying Profit

Group Profit Bridge


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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 161 145 11%

Used Cars 1,437 1,212 19% Used Cars 105 90 17%

Aftersales 365 319 14% Aftersales 166 141 18%

Parts Division 193 219 NC Parts Division 55 62 NC

Leasing and other 80 64 25% Leasing and other 17 14 21%

TOTAL TURNOVER 4,281 3,649 17% TOTAL GROSS PROFIT

504 452 12%

LFL TURNOVER LFL GROSS PROFIT

New Cars: retail 1,375 1,277 8% New Cars: retail 135 130 4%

New Cars: fleet 831 736 13% New Cars: fleet 26 26 -

Used Cars 1,437 1,341 7% Used Cars 105 98 7%

Aftersales 365 337 8% Aftersales 166 153 9%


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Robust Capital Structure

31 Dec 2014£m

31 Dec 2015£m

2016 (£m) 2015 (£m)

Fixed Assets 319.1 282.9

Rental Fleet Vehicles (VRS) 67.1 67.0

Stocks 839.4 816.0

Debtors 225.0 252.6

Current Liabilities (excluding bank loans) 1,105.2 1,002.0

Non Current Liabilities (excluding bank loans) 147 115.3

Vehicle rental fleet finance (VRS) 53.2 49.7

Net Assets 341.7 297.8

Net Debt 74.1 161.7

Gearing 22% 54%

Net Debt / EBITDA 0.7 1.61

§ 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 highlevel of unutilised bank facilities


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Positive Cash Flow Generation2016 (£m)

2015 (£m)

EBITDA 107.6 100.4

Working capital decrease/ (increase) 33.3 (32.7)

Cash generated from operations 140.9 67.9

Acquisition of subsidiary companies (92.6) (104.4)

Purchase of fixed assets (36.3) (35.2)

Proceeds from asset disposals 28.9 9.8

Net proceeds from parts division 111.5 -

VRS Rental Fleet Vehicles purchased (93.7) (83.2)

Sale of VRS Rental Fleet Vehicles 87.4 76.2

Dividends paid to shareholders (13.2) (11.6)

Loan repayments (10.2) (11.8)

New loans 14.0 62.2

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)

• 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

• 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


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2012 2013 2014 2015 2016

Consistent Financial Track Record

Lookers plc / For the year end 31 December 2016

£m

Group Pre-tax Profit Trend

£m

Group Net Assets Trend

£m

Group Net Debt

0

10

20

30

40

50

60

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80

2012 2013 2014 2015 2016

36.8

48.1

65.072.1

77.1

0

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100

150

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250

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350

2012 2013 2014 2015 2016

204228

255

298342

48 4351

161.7

74.1

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Operational Review

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Strong market fundamentals


New car registration growth

EU Car Registrations

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

1959

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2007

2010

2013

2016

10,000,000

10,500,000

11,000,000

11,500,000

12,000,000

12,500,000

13,000,000

13,500,000

14,000,000

14,500,000

15,000,000

§ Car sales track population growth and GDP

§ EU now recovered to previous peak

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40

60

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120

140

2015 2016

Retail

Fleet

New cars

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LFL total gross profit

£m

736

1,375

831

+13%

LFL new car turnover

130

26

135

26£m

§ 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


+4%+8%

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200

400

600

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1,000

1,200

1,400

1,600

2015 2016

Retail

Fleet1,277736

1,375

831

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PCP growth


Used Car Finance %New Car Finance %

50%55%

61%56%

60%

67%

75% 77% 78% 79%83%

33%

25%

32%

38%

49%

52%

54%

63%

72%

79%

84%

30%

40%

50%

60%

70%

80%

90%

20062007200820092010201120122013201420152016

New Finance % % of PCP

37% 37% 37% 36%38% 39%

42% 43% 42% 42% 42%

7% 7% 6% 5% 6% 7% 9% 17%

26%

37%

47%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

20062007200820092010201120122013201420152016

Used Finance % % of PCP %

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Affordability of new cars


2008 Audi A4 1.8 TFSi4door(2017 MY 2.0 TFSi)• Cash price UP from £24,505 to £28,750• Deposit Remains £999

Monthly payments from £447 Monthly payments from £264

2008 2017

Mercedes-Benz SLK (2017 MY SLC250d Sport)• Cash price UP from £31,782 to £34,345• Deposit REDUCED from £4,999 to £4,199

2008 2017


BMW 5 Series Touring F11• Cash price UP from £48,500 to £51,465• Deposit £9,500 Customer Contribution and

£4,000 BMW Contribution to £8,500 Customer Contribution and £5,000 BMW Contribution


2013 2017

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Strong market fundamentals


Average age of used vehiclesUsed vehicle market

Source: Statista.comSource: SMMT and DVLA Data

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1,000,000

2,000,000

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New car market Used car market

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§ Record used car market§ Demand for used cars is exceeding supply

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1460

2015 2016

Used cars

§ Gross profit increase of 7%§ Finance penetration remained stable§ Residual value stability underpins margins§ Disciplined approach to stock management

LFL used car turnover


LFL total gross profit


1,341 84.3

£m £m1,437

+7%

56

94

96

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2015 2016

+7%

105

98

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Dealership Aftersales Market Fundamentals


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2,000,000

3,000,000

4,000,000

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8,000,000

9,000,000

2014 2015 2016 2017 Predicted

UK Vehicle Parc

Age (years) 0-3

Age (years) 4-6

Age (years) 7-9

Age (years) 10-12

+3%

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145

150

155

160

165

170

2015 2016

Dealership Aftersales

LFL aftersales turnover

365

153

166

£m £m

LFL aftersales gross profit

+8% +9%

§ Turnover increased by 8% and gross profit by 9%§ Strong gross margin result from 44% to 45%§ Continued progress in creating capacity



337337

320325330335340345350355360365370

2015 2016

365

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Dealership Aftersales Retention Strategy


010,00020,00030,00040,00050,00060,00070,00080,00090,000

100,000

Cumulative Service Plans – Live book

32% 33%

38% 38% 38%

0%5%

10%15%20%25%30%35%40%45%50%

2012 2013 2014 2015 2016

% Vehicles sold with a Service Plan*


*Adjusted for Benfield

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Operational Excellence


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

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Used Car GP/unit 2016

§ Scale of potential operational improvement

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Outlook

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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

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The Right Strategy


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Appendices

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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 ChelmsfordChester 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 HarrogateAudi Stockport Jeep Shrewsbury Stockport Liverpool Motherwell ManchesterAyr Belfast Stafford Newtonabbey StockportBasingstoke Ferrari Cardiff Stoke on Trent Seat Portadown FLEET FINANCIAL

Camberley Belfast Stourbridge Manchester Selly Oak USED CAR BelfastDublin Kia Tonbridge Stockport Speke BelfastEdinburgh Fiat Belfast Walsall St. Helens Dublin VEHICLE RENTAL

SERVICESGlasgow Stockport Newcastle Wolverhampton Skoda WarringtonGuildford Sheffield Worcester Eccles Yardley MOTORCYCLES BeaconsfieldHamilton Ford Stockport Guildford BMW – BelfastNewcastle Braintree Mini Harrogate Volkswagen Honda – Belfast AGRICULTURAL

DIVISIONStirling Chelmsford Land Rover Crewe Manchester Battersea Yamaha – BelfastTeesside Colchester Belfast Stafford Newcastle Blackburn New HollandTyneside Guiseley Bishops Stortford Stoke on Trent Stockport Blackpool TPS Darley DaleWearside Harrogate Chelmsford West London Carlisle Edinburgh Tuxford

Leeds Glasgow – North Nissan Dumfries GlasgowBentley Sheffield Glasgow – South Belfast Smart Darlington GuildfordBelfast South W Ferrers London – Battersea Carlisle Brighton Guildford Newcastle

Sudbury London – Park Royal Chester Gatwick Morden ReadingBMW Sunderland Motherwell Gateshead Maidstone Newcastle TeessideCrewe Leeds Stoke on Trent NorthallertonStafford Honda Lexus Motherwell Stourbridge Preston TYRESStoke on Trent Orpington Belfast Newcastle Tonbridge Silverlink Belfast Boucher Rd

Newtonabbey Wolverhampton Teesside Belfast Sydenham Rd

Citroen Hyundai Maserati Newtonards Worcester Walton on Thames ColeraneNewport Dundonald Belfast Omagh

2017 Additions

Motherwell Peugeot Toyota Volkswagen CV PortadownBelfast Belfast CarlisleCardiff Dundonald DarnleyNewport Newtonabbey Glasgow

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Franchise Locations

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Documents

Annual Results: Year ended 31 December 2016 · 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%