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While the industry category has been flat, Castrol has improved its brand measures, including awareness, preference and loyalty, year on year. Let’s continue this momentum into 2011!

Our growth strategy can be summed up in one word – premiumisation - concentrating on those consumers/customers who are willing to pay a premium. For almost two years, we have focused on our ‘Day After the World Cup’ plans. One of the key programmes is the re-launch of Castrol Professional in early 2011.

This re-launch of the product portfolio includes the launch of a new brand across our OEM Franchised Workshop (FW) space, the first for many years. The new products are a win for our OEM FW customers and their consumers, providing even more exclusive features for the workshops, plus new, stronger consumer benefits. New tools such as the B2B segmentation and demonstration kits will help support our sales teams.

Be on the look out for more news and information as we get closer to the launch.

GLOBAL EDITION IssuE 04 | OCTOBER 2010

CAsTROL PROFEssIONAL

NEWsMARkETING vIEWPOINT By POLLy FLINN

We are in the middle of our planning and investment process for 2011. It is critical that our key markets have a robust marketing plan, so that our OEM businesses continue to grow in a still challenging economic environment.

Globally, we will continue to invest in our strategic partnerships, strengthening both our technology and offer pipelines. One major project is the Castrol Professional re-launch and, while we’re still months away, I would like to take this opportunity to thank the project team for their hard work, innovation and energy. It has carried us to the great position we are in today. The Castrol Professional Brand Centre will also be re-launched in 2011, allowing easier access to all the materials you need to manage OEM programmes and ensure their confidence in our brand. 2010 is shaping up to be a strong year for the OEM space, so while we have one eye on the exciting initiatives in 2011, let’s end this year on a high note.

Mike Jones OEM/FW Global Marketing Director

> MARkETING vIEWPOINT 01

> WELCOME

> CAsTROL suPPORTs MAzDA WITH RECALL 02

> vOLvO TEsTs CAsTROL kNOWLEDGE

> BusINEss BOOM IN THE MIDDLE EAsT 03

> vOLvO’s GREEN RACING AT BRANDs HATCH

> NEWs IN BRIEF

> JOINT PROMOTIONs FOR RussIA & GERMANy 04

> OEMs PRACTICE sAFER DRIvING

IssuE CONTENTs

WELCOME!

The memories of the FIFA World Cup™ 2010 may be fading, but the positive effects are still being felt. The Lubricants SPU gross margin growth has been strong this year to date and we achieved better than expected results in our key Castrol ‘brand health’ measures.

Castrol’s brand equity is stronger than average globally, and it’s growing while the category remains static.

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Through extensive compatibility testing at Mazda Japan, our Domestic Multivehicle Automatic Transmission Fluid product has been chosen as the ‘flush’ fluid and is being delivered to 650 dealers during the eight to ten month campaign which began in June 2010.

Many logistical challenges have been successfully overcome by our OEM team. Not only have they ensured we could commit to producing an initial £265,000 worth of the fluid, our Supply Chain did an ‘outstanding’ job of sourcing additional volumes in light of the tight US base oil market. All 650 dealers have been entered into our system and 103 distributors assigned to order and warehouse the product to ensure that dealers keep receiving it when and where they need it. This campaign should deliver around 1.3 million litres of new business for Castrol US, which will drive approximately $1.2M of additional Gross Margin to the business.

IssuE 04 | OCTOBER 2010

VISTA runs every two years with more than 16,000 Volvo employees participating. The run up to the event started 12 months ago when participants had to answer questions about our products, plus parts and customer service, designed to improve the dealer network’s knowledge of modern lubricants. The most successful dealership service advisors and technicians were invited to the final event in Gothenburg.

This is an excellent example of the wide scope of our strategic partnership with Volvo, which covers everything from

technology to service and training. These kinds of sponsorship programmes will help to ensure that Castrol remains in pole position.

Castrol and Volvo have a long history of promoting the partnership through their dealer networks. Volvo recommends the use of our engine oils for all their cars in first fill and service fill. And Castrol is often featured in the regular “Volvo Master” magazine, which is translated into 14 languages and distributed internally globally.

CAsTROL suPPORTs MAzDA WITH sAFETy RECALL vOLvO TEsTs CAsTROL

kNOWLEDGEThe global Volvo after-sales championship, ´VISTA´, held a successful event from 23 to 27 of August in Gothenburg, Sweden. At the event Castrol sponsored a half day ‘Football Kicker Tournament’. From 32 countries, 160 VISTA winners enjoyed this sport experience.

As an extension of their United States (US) Castrol motor oil programme, Mazda selected us to support them with their Power Steering recall, which is currently ongoing and affecting over 215,000 vehicles across the US, Mexico and Puerto Rico.

Ross Tomberlin, OEM Business Development Manager, commented “Due to the complexity and timing, this project magnified the incredible professionalism and expertise of our team. Although we were faced with short deadlines and new system integrations, everyone involved stepped up to support our global OEM partner in this challenging project.”

Mazda’s programme with Castrol in the US already has over 175 dealers using our oil. The campaign offers opportunities in the States’ other territories.

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IssuE 04 | OCTOBER 2010

Abu Dhabi Motors is the fastest growing importer of BMW and MINI in the Middle East and it’s an authorised Rolls-Royce dealer. Castrol signed a five year contract in May 2010 to supply 75,000 litres of fully synthetic SLX oil to the company’s state of the art Umm Al Nar parts assembly facility. Now, we have started to supply its sister site, a Quick Service Centre in Mussafah. This centre houses an expansive showroom dedicated to BMW and MINI vehicles, as well having a BMW parts and accessories department. History was made in Iran when Peugeot agreed a partnership with Castrol at the start of the year.

While we do not have any global tie-up with Peugeot, we are proud to be the special exception powering the Peugeot 206, Pars and Samand (Modern Engine) factory fill business, opening up sales of potentially two million litres. In addition, owner’s manuals and engine stickers include our logo.

Previously the factory had only been endorsed by TOTAL and we now share 50 per cent of the business with them.

LuBRICANTs PARTNER OF CHOICE FOR ExCLusIvE DEALERsHIP On 22 July, Castrol Singapore was proud and delighted to be announced the lubricants partner for Munich Automobiles, the world’s first exclusive BMW M-Series dealership. BMW is now shifting away from sole dealerships and wants to reposition their premium marquee M-series range to compete with brands like Ferrari and Lamborghini globally.

INNOvATION WITH E-MARkETING 16 Franchised Workshop customers from different OEMs took part in our first e-marketing workshop at a golf club in Cologne, Germany on 16 September. Part of the Professional offer in this country and led by Frank Rasche, OEM Franchised Workshops - Marketing Activation, the programme demonstrated the advantages of modern electronic communication in a relaxed atmosphere.

Two Castrol SLX Professional full-synthetic products, 5W–30 and 0W–30, were launched in May to the Mazda Franchised Workshop

space in Japan and are now making their presence in more than 400 franchised workshops. It is the first time Mazda have globally approved non-genuine oil brands and we plan to promote these as top-end options to their aftermarkets in other countries during deployment.

Our teams in the Middle East have secured new contracts in Abu Dhabi and Iran.

BusINEss BOOM IN THE MIDDLE EAsT

The Castrol sponsored, bio-ethanol fuelled car, driven by Robert Dahlgren, completed a successful race at Brands Hatch, finishing in 12th position. This type of fuel offers many benefits including reduced greenhouse gas emissions, plus it is biodegradable.

It’s proved to be a busy year for the C30; it has also featured in the 2010 Swedish Touring Car Championship, which ends this month. It is yet to be confirmed but Volvo may be

joining the 2011 and 2012 WTCCs which already include our partner OEMs BMW and SEAT. It will appear again for the Championship at the Okayama International Circuit in Japan on 31 October.

Other highlights for Castrol at Brands Hatch were our sponsored drivers Andy Priaulx for BMW and Gabriele Tarquini for SEAT finishing first and third respectively in the second race of the double header event.

Volvo’s environmentally friendly C30 car took part in the World Touring Car Championship (WTCC) race at Brands Hatch in Swanley, England on 18 July 2010.

vOLvO’s GREEN RACING AT BRANDs HATCH

“ History was made in Iran when Peugeot agreed a partnership with Castrol at the start of the year...”

MAzDA APPROvEs sLx IN JAPAN

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In Russia, the launch of Magnatec Professional A1

to the Ford dealer network was supported by an

integrated promotion which ran from March

until August, and included a sales competition

for service managers and advisors to win a trip

to the World Rally Championship, Wales, plus a

prize draw giving drivers who choose Castrol a

chance to meet Ronaldo.

The promotion was supported by 40 per cent

of Ford dealers in the country and got massive

publicity coverage in car related media.

As part of the promotion, Ford Russia introduced

a premium service package with Castrol oil

and included a promotion in their Summer

aftersales campaign. We expect 100,000 litres

of our products will be sold in 2010 to the

Ford dealerships in Russia as a result.

In Germany, strategic OEM dealerships took

part in the ‘big Castrol Ronaldo promotion’ by

carrying out a Castrol branded ‘safety checklist’

then passing the checklist on to customers.

This resulted in recommendations from

Volkswagen, Ford and Volvo. It was a huge

success for us and the OEMs as it gave a

reason to contact current customers and also

encouraged new ones.

Prizes for both dealers and end-consumers

in Germany included FIFA tickets, flatscreen

televisions and Playstation 3 games consoles,

as well as the trip to meet Ronaldo in Madrid

in November. In total, 612 dealers took part

in the promotion, which finished in July, and

thousands of customers were reached.

JOINT PROMOTIONs FOR RussIA AND GERMANy

OEMs PRACTICE sAFER DRIvING

IssuE 04 | OCTOBER 2010

Russian and German OEMs have joined forces to take part in successful promotions this year with the overall winners from each country getting the opportunity to meet the footballer Cristiano Ronaldo in Madrid.

Twice a year, Castrol Australia invites 24 OEM guests to BMW Driver Training Days where they experience the fun of driving at the best race circuits in the country.

This year’s second event took place on 24 August at Eastern Creek International Raceway near Sydney.

Initially, participants learn safer driving techniques, including steering control and emergency braking. These are then put to the test on the circuit, with an aim to improve concentration and awareness. The August event allowed the guests to practice in the BMW 123d, BMW 323i and BMW M3 models.

The course is professionally run by the BMW team and chief instructor David Brabham has a wealth of experience, gained from years of competing successfully in international motorsport. He is also the son of three-time Formula One World Champion Jack Brabham.

“The events are a fantastic way to spend a whole day building our relationships and trust with valued clients while they learn about safer driving. One dealership owner even bought a racing car afterwards as he had such a great time,” says Andrew McGrath, OEM Business Development (Castrol Lubricants).

The previous session took place on 23 July at the Phillip Island track which is renowned for its stunning ocean views. Castrol has been holding these events since 2002.

“ The events are a fantastic way to spend a whole day building our relationships and trust with valued clients...”

“ In total, 612 dealers took part in the promotion, which finished in July...”