Mitchell industry webinar. Trends for the auto collision repair and auto physical damage insurance industries.

1. Industry Trends Report Wrap-up
Greg Horn
Vice President, Industry Relations
February 2012

2. Agenda for Today:
• An update on the Property Casualty Industry
• New Car sales, used car used car sales
• An update of Mitchell’s latest KPI’s
• Recap of this quarter’s feature article
• Rust in Peace
• New Auto Technology
2/10/2012 | Page 2 Confidential and Proprietary. ©2011 Mitchell International, Inc.

3. Property Casualty Financials
• The P & C insurance industry saw net income after taxes fall to
under $8 Billion for the first nine months of 2011, about 60% less
than the prior year.
• The industry’s combined ratio climbed to 109.9 in the first nine
months of 2011 compared to 101.2 in 2010.
| Page 3 Confidential and Proprietary. ©2011 Mitchell International, Inc.

4. Collision Paid Claim Frequency Per 100 Cars
5.9
5.85
5.8
5.75
5.7
5.65
5.6
5.55
5.5
5.45
5.4
5.35
Through Q3 2011
2/10/2012 | Page 4 Confidential and Proprietary. ©2011 Mitchell International, Inc.

5. Comprehensive Paid Claim Frequency Per 100 Cars
7.2
7
6.8
6.6
6.4
6.2
6
5.8
5.6
5.4
Through Q3 2011
2/10/2012 | Page 5 Confidential and Proprietary. ©2011 Mitchell International, Inc.

6. Property Damage Paid Claim Frequency Per 100 Cars
3.6
3.55
3.5
3.45
3.4
3.35
3.3
3.25
Through Q3 2011
2/10/2012 | Page 6 Confidential and Proprietary. ©2011 Mitchell International, Inc.

7. Mitchell Key Performance Indicators
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15. Parts use by model year
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16. The Number of parts by part type by model year
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17. The dollars spent by part type by model year
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18. U.S. Vehicle sales data
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19. New vehicle sales for 2011
• Globally, Car makers sold 77.7 Million vehicles
• That’s 8,900 vehicles every hour!
• US sales are headed for full-year 2011 volume of about 13.4
million vehicles, 10 percent higher than 2010
| Page 19 Confidential and Proprietary. ©2011 Mitchell International, Inc.

20. What is the top selling luxury brand in the US?
• BMW’s U.S. sales rose 15 percent to 26,834 in December, for an
annual total of 247,907
• Mercedes said its sales last month climbed 28 percent to 25,701,
pushing its tally for the year to 245,192.
• U.S. sales at Lexus dropped 13 percent last year to 198,552 units -
- the first time volume dropped below 200,000 units since 1999.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

21. Used vehicle sales
• Used vehicle sales totaled 38,792.169 for all of 2011, up 5.2
percent from the prior year.
• December volume surged 11.98 percent, to 3,142,513.
• The year, as a whole saw a surge in private party, or consumer-to-
consumer, sales, especially in the final months of 2011.
Confidential and Proprietary. ©2011 Mitchell International, Inc.

22. Electric Vehicles in the future
• A survey by KPMG of global auto maker executives finds a
nominal increase for electric vehicle sales over the next 13 years.
• However, most of the executives surveyed believe the industry
will continue putting larger investments into EV technology -- just
in case.
• Nearly Two-thirds of the executives surveyed believe that
combined hybrid and electric-vehicle sales will account for as
little as 6 percent of the market in the U.S. and Western Europe
by 2025.
KPMG’s survey of automaker CEO’s
| Page 22 Confidential and Proprietary. ©2011 Mitchell International, Inc.

23. Rust in Peace
| Page 23 Confidential and Proprietary. ©2011 Mitchell International, Inc.

24. Rust in Peace- Vehicles that died in 2011
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25. Rust in Peace
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28. Rust in Peace
| Page 28 Confidential and Proprietary. ©2011 Mitchell International, Inc.

29. The Detroit Auto Show highlights
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30. But one car model didn’t die, but should have
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31. New Ford Fusion
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32. 2012 Dodge Dart
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33. 2012 Hyundai Elantra
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34. Your vote for car of the year:
A. Ford Fusion
B. Dodge Dart
C. Hyundai Elantra
| Page 34 Confidential and Proprietary. ©2011 Mitchell International, Inc.

35. New vehicle technology
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36. Volkswagen to help avoid speed traps
The traffic signs recognition
system being developed by
Volkswagen Group Research
receives a signal from each
applicable road sign and
sends an audible and digital
message to the driver.
Image courtesy Volkswagen Gruppe GMBH
| Page 36 Confidential and Proprietary. ©2011 Mitchell International, Inc.

37. Ethanol Boosted Direct Injection
• Automotive technology specialist
Ricardo has developed a technology
that optimizes ethanol-fuelled
engines to a level of performance
that exceeds gasoline engine
efficiency comes close to diesel
engines. Ethanol Boosted Direct
Injection (EBDI), takes advantage of
ethanol’s best properties higher
heat of vaporization
• Current E85 engines are about 30%
less efficient than running on regular
87 octane fuel
| Page 37 Confidential and Proprietary. ©2011 Mitchell International, Inc.

38. Active Sound exhaust system
Although Pontiac created a
muffler bypass for the GTO
back in 1970;
German company Eberspächer
Eberspächer “Aktiv Sound” has created an adjustable
exhaust sound system.
Using a steering wheel
mounted volume control, you
can adjust the exhaust system
sound
Images courtesy Pontiac GTO Club and Wirtshafts Woche
| Page 38 Confidential and Proprietary. ©2011 Mitchell International, Inc.

39. Upcoming events
• Orlando, FL- PPG Platinum distributors conference February 23rd
• Naples, FL- Mitchell Property Casualty conference, March 18-20
• Maui, HI- Standox Partnership in Excellence conference, March 28-30
• Phoenix, AZ- Toyota Motor Sales Conference, May 8-9
• Scottsdale, AZ- Parts, Body & Equipment Sales conference, May 16-17
| Page 39 Confidential and Proprietary. ©2011 Mitchell International, Inc.

40. • Sign up the Industry Trends Report
and look for my articles in the
following publications
Confidential and Proprietary. ©2011 Mitchell International, Inc.