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					2008 Half Year Results




29 July 2008
2008 Half Year Results




André Lacroix
Group Chief Executive
     Group financial highlights
     •   Sales up 5.1% to £3.3bn in sterling; down 0.9% in constant currency
          •         Like for like sales* up 0.2%
     •   Operating profit** up 13.4% to £151.1m in sterling;
         up 5.2% in constant currency
          •         Like for like operating profit** increase of 4.2%*
     •   PBT** up 8.6% to £130.3m in sterling, flat in constant currency
     •   EPS*** up 9.5% to 20.7p
     •   Interim dividend up 4.0% to 5.46p


    The delivery of our strategy continues to drive strong results

              *      At constant currency
              **     Pre exceptional items, at constant currency
3             ***    Normalised
    H1 2008 Operational and strategic highlights
    •   Diverse geographic portfolio delivers resilient performance
         •     Strong Asian performance offsets weak Belgian trading
    •   Emerging Markets revenue growth of 54%**
         •     St Petersburg and Baltics acquisitions integrating well
         •     Scale acquisition in Moscow*
    •   UK: outperforming in a challenging market
    •   Strong balance sheet and substantial committed debt facilities



                  Robust business model and strategy on track


4            * Musa Motors Group acquisition completed 8 July 2008   ** At constant currency
Financial Results




Barbara Richmond
Group Finance Director
    Summary P&L
                                               H1 2008   H1 2007   Change
                                                 £m        £m        %

        Sales                                  3,297.9   3,136.5     5.1

        Operating profit*                       151.1     133.2     13.4

        Net interest cost                       21.9      14.9      47.0

        Profit before tax*                      130.3     120.0     8.6

        Tax rate (%)                            25.0      25.0       -

        EPS (p) **                              20.7      18.9      9.5

        Dividend per share (p)                  5.46      5.25      4.0




6   * Before exceptional items ** normalised
    Sales
                                                           Like for like
                                                Change %    change %
                   H1 2008   H1 2007   Change
                                                constant    constant
                     £m        £m        %      currency    currency


    Distribution   1,390.3   1,293.1    7.5       (2.5)        (3.5)

    Retail         1,907.6   1,843.4    3.5       0.3          3.1


    Total          3,297.9   3,136.5    5.1       (0.9)        0.2




7
    Trading profit & ROS
                     H1 2008     H1      Change   Change %        Like for like
                       £m       2007       %      constant         change %
    Trading profit               £m               currency         constant
                                                                   currency


    Distribution      113.7     99.7      14.0        4.1             7.4

    Retail            45.3      44.4      2.0         (0.4)           (2.7)

    Total             159.0    144.1      10.3        2.8             4.2


    ROS (%)          H1 2008   H1 2007   Change   Like for like
                                           ppt    change ppt


    Distribution       8.2       7.7       0.5        0.8

    Retail             2.4       2.4        -         (0.1)

    Total              4.8       4.6       0.2        0.3
8
    Regional analysis – H1 trading profit
                              2008                             2007




                                     UK          Europe      Emerging markets
                                     Singapore   Australia   Hong Kong      RoW
     * Before central costs
9
     UK Retail
     • Market down 1.6%                                    Retail Retail
                                                            £m change %

     • Retail like for like sales
                                    Sales                  1,322.3    (5.4)
       up 1.5%
                                    Like for like sales    1,246.6     1.5
     • Industry leading LFL
       ROS of 2.4%                  Trading profit          31.1      (8.5)


                                    Like for like profit    29.9      (7.4)
     • Used car residual values
       under pressure               ROS %                    2.3     (0.1ppt)




10
     Europe*
     • Challenging market in                                               Distribution Distribution Retail Retail
       Belgium                                                                  £m       change %     £m change %


                                                        Sales                  476.3     (8.8)     235.0    1.3
     • Profit improvement in
       Greece and Finland
                                                        Like for like sales    476.3     (8.4)    235.0     2.8


     • Continued successful                             Trading profit         25.5      (5.2)      2.0    122.2
       turnaround in Retail
                                                        Like for like profit   25.5      (5.2)      2.0    66.7

     • Disposal of French                               ROS %                   5.4      0.2ppt     0.9    0.5ppt
       business


11    * All regional figures are at constant currency
     Singapore*
     • Market decline
                                                                               £m      Change %
       of 12.6%

                                                        Sales                  229.7   (22.0)
     • Margin improvement of
       2.3ppt                                           Like for like sales    229.6   (21.7)

                                                        Trading profit         27.3    (2.8)
     • Number 2 position in CV
                                                        Like for like profit   27.2    (1.4)

     • Launch of Corolla Altis                          ROS %                  11.9    2.3ppt
       (Q1 08) and Wish (Q2 08)



12    * All regional figures are at constant currency
     Australia*
                                                                         Distribution   Distribution   Retail Retail
     • Market up 3.5% and                                                     £m         change %       £m change %
       Subaru market share up

     • Retail profits up despite                        Sales               235.4            -         145.2    6.1

       competitive market                               Like for like
                                                                            235.4            -         136.2    4.4
                                                        sales

     • Launch of Forester in Q1                         Trading profit      17.7           (9.2)        4.5    15.4
       08 and promotion of                              Like for like
                                                                            17.7           (9.2)        4.7     4.4
       Impreza (launched Q4 07)                         profit


                                                        ROS %                7.5         (0.8ppt)       3.1    0.3ppt
     • Distribution margin
       reduced due to A&P
       investment

13    * All regional figures are at constant currency
     Emerging Markets*
     • Strong growth in most                                               Distribution Distribution Retail Retail
       markets                                                                  £m       change %     £m change %

     • Slowdown in the Baltics
                                                        Sales                  161.1     60.1      201.4    49.9
     • Russia foreign brand
       market up 47% but
                                                        Like for like sales    111.2     10.5      155.2    15.5
       Toyota supply issues
     • Buy out of Olimp minority                        Trading profit          10.2     41.7       7.6     13.4
     • Second retail centre
       opened in China                                  Like for like profit    9.2      27.8       6.7       -

     • Russia now over 50%
                                                        ROS %                   6.3     (0.8ppt)    3.8    (1.2ppt)
       of Emerging Market
       retail sales

14    * All regional figures are at constant currency
     Hong Kong*
     • Market up 29.6%                                                                               £m     Change
                                                                                                              %
     • Strong sales and profit
       performance                                                        Sales                    140.6   27.9


     • Margin improvement                                                 Like for like sales      134.1   39.7
       of 1.9ppts
                                                                          Trading profit**         16.1    52.8

     • Attractive mix with Lexus                                          Like for like profit**   14.7    54.2
       profit up
                                                                          ROS %**                  11.5    1.9ppt
     • Continued focus on site
       by site returns


15    * All regional figures are at constant currency ** Excluding property profit
     Cash flow and net debt
     Operating cash flow                 £m          Free cash flow             £m      Net cash                     £m


     Operating profit*                 151.1         Operating cash flow 109.1          Free cash flow              1.7
     Depreciation/                                   Net interest              (24.2)   Dividends                 (48.1)
     amortisation                        19.2
                                                     Taxation                  (24.9)   Share buyback             (16.0)
     Working capital                    (56.4)
                                                     Minority interest          (2.1)   Pension                   (11.0)
     Other                               (4.8)
                                                     Capex (net)               (56.2)   Acquisitions              (25.7)
                                                                                        Disposals                  20.0
                                                                                        Other                       8.7

                                                                                        Net cash flow             (70.4)
                                                                                        Opening net debt         (221.5)
                                                                                        Translation on net debt** 14.1


     Operating cash flow               109.1         Free cash flow              1.7    Closing net debt         (277.8)


16    * Excluding exceptional items   ** Includes fair value re-measurements
     A strong financial position to support our
     strategy
     • Operating cash generation of £109.1m
     • 30 June ‘08 net debt of £277.8m
     • Net debt / EBITDA of 0.9x
     • Total committed facilities of £1.035bn, with maturities ranging
       from 2010 to 2019, on competitive terms
     • 30 June ’08 net assets of £900.4m, including £431.6m
       of freehold property



17
     Financial summary
     •   Better than expected Singapore performance
     •   Continued strong trading in Hong Kong
     •   Weakness in Europe ahead of new models in 2009
     •   UK premium focus continuing to outperform
     •   Emerging Markets growth on track
     •   Strong financial position



                Strong results in challenging markets

18
Strategic Update and Outlook




André Lacroix
Group Chief Executive
     Robust business model
Broad geographic spread                         Multiple brand relationships
Scale and high margin operations                        Strongest premium brands
Emerging Markets growth                          Long-term and scale relationships
                                                       Right brands, right markets



                                      25
                                    countries
Growth & Defensive                                              Multi-Channels
value drivers                                     Distribution: stable, strong cash
Diversified revenue streams                          generation funding expansion
Growth drivers: Vehicles, F&I                   Retail: continuing growth in mature
c.50% of Group trading profit                   markets; high growth opportunities
                                                               in Emerging Markets
Defensive drivers: Parts, Service
c.50% of Group trading profit


20
     Making the difference through the execution
     of our strategy
                             Quality of
                            Geographic
                             Portfolio




                             Strong
           Scale in                        New Product
                            financial
       Emerging Markets                      Pipeline
                            position




                          Organic Growth
                           Opportunities


21
     Quality of our geographic portfolio
     • Operate in 25 countries with scale and high margin
       operations
     • Mature market economies satisfactory, bar UK
     • 79% of Group trading profit is international
     • Exit of French market completed
     • Strong growth prospects in Emerging Markets



            The Group operates in resilient economies

22
     Strong new product pipeline
                                              H2 2008                               2009
                                  Europe      Mazda2 (HB & diesel derivatives)      Toyota New Models: Avensis, IQ, Verso,
     •   Pipeline strength                    BMW X6, 7 series, 3 series facelift   Urban Cruiser, Land Cruiser & Prius
                                              Ford Kuga, Fiesta                     Toyota Facelifts: Aygo, Yaris, Auris, RAV4,
         v H1 2008                            Hyundai Sonata; Tuscan facelift
                                                                                    Corolla Sedan
                                                                                    Lexus IS250 Coupe,RX Hybrid

     •   Innovation in response                                                     Mazda3 (HB, Sedan & engine derivatives)
                                                                                    Land Rover’s smallest SUV
                                                                                    Jaguar XJ and engine derivatives for XF and
         to consumer demand                                                         XK
                                                                                    BMW 5 series, Z4, X3 facelift
     •   Driver of future                                                           Mitsubishi Lacer Ralliart
                                              Subaru Impreza sedan                  Subaru Liberty; Outback including diesel
         revenues                 Australia                                         derivative

                                              Toyota Alphard; Noah                  Toyota Prius and Wish
                                  Asia        MazdaCX-7,RX8                         Lexus IS250 Convertible, RX350, RX450h
                                              Jaguar XF                             Hino new introductions
                                              Lexus GS450h & IS facelift            Suzuki SX4 facelift
                                              Suzuki Gran Vitara 2.4L               Mazda3
                                              Toyota CV new models



                                              BMW 3 series saloon & touring         Mercedes New E, CLK Coupe
                                  UK          facelift, 7 series                    BMW 5 series, Z4, X3 facelift
                                              Audi A3 & A6 facelift; Q5             Audi A5 Cabriolet, Q5
                                              VW Passat, Scirocco                   VW Golf
                                                                                    Toyota New Models IQ, Urban cruiser, Land
                                                                                    Cruiser, Avensis, Prius, Verso
                                                                                    Toyota Facelifts Aygo, Yaris, Auris, RAV4
23                                                                                  Lexus IS Coupe, RX
                                                                                    Honda Civic (hatchback) based hybrid
     Continued organic growth opportunities
     New Car Market         Used Car Market         Aftersales
     • Marketing            • Quality of            • Car parc
       effectiveness          purchasing              continues to grow
     • Customer service     • Margin                • Retention post
     • Segment / mix          management              warranty
       management           • Increase stock turn   • Up sell
     • Maximising capture   • F&I                   • Body & Paint
       rate
     • Robust F&I model
     • Fleet opportunity


       Strength of Group wide metrics and processes enabling
                    Gold Standard benchmarking
24
     Scale in Emerging Markets
     • Scale business in Russia, Balkans and Baltics
     • Emerging Markets revenue expected to approach
       £1bn in 2008
     • Russia alone expected to reach £1bn revenue in 2009

          Emerging Markets Sites and Retail Centres                      Emerging Market Revenue
     80                                                           1000
     70                                                            900                        c.900m
                 Sites                                      76     800
     60                                           74               700
     50          RCs                                               600
     40                                                49          500
                                                                 £m


                                        48   49                                     519
     30                                                            400
                                   32                              300
     20                       24                                   200
     10          17      17                                        100   213
            12
      0                                                              0
             2005        2006      2007      2008      2009              2006       2007       2008

25
     A strong financial position to support our
     strategy
     • Operating cash generation of £109.1m
     • 30 June ‘08 net debt of £277.8m
     • Net debt / EBITDA of 0.9x
     • Total committed facilities of £1.035bn, with maturities ranging
       from 2010 to 2019, on competitive terms
     • 30 June ’08 net assets of £900.4m, including £431.6m
       of freehold property



26
     Australia
     •   Sound economic fundamentals expected to continue backed by
         commodities demand
     •   Personal tax cuts due from 1 July 2008
     •   Unemployment expected to remain low
     •   New car market expected to be flat after a record year in 2007
     •   Continued trend towards smaller vehicles


         Driving progress in H2 08                 Driving progress in 2009
         New generation Impreza sedan: Sept 08     Building awareness and test drives on new
                                                   Impreza, Forester, Tribeca
         Maximise gross margin opportunities :     New generation Liberty / Outback : Q3 2009
               • tight supply chain management     Availability of diesel engines : Q4 2009
               • focus on F&I penetration and      Increase focus on aftersales opportunity
                 aftersales capacity utilisation

27
     Asia
     HONG KONG                                    SINGAPORE
     • Economy expected to remain strong          • Economy expected to remain robust
     • Robust car market expected to rise         • Car market expected to decline
       >10% for the full year                       12%-15% in 2008
     • MPV to remain key growth segment           • Further declines expected 2009


      Driving progress in H2 08                    Driving progress in H2 08
      New MPV models : Alphard & Noah              Lexus GS450h launch & IS facelist
      Lexus IS facelift ; Hybrid focus : RX400h    Toyota CV new models and PC special editions
      MazdaCX-7, RX8 & Jaguar XF launch            Suzuki Gran Vitara 2.4L replacing 2.7L
      Aftersales growth                            Focus on aftersales retention
                                                   Taxi re-entry with Wish CNG

      Driving progress in 2009                     Driving progress in 2009
      MPV share growth                             New Toyota Prius and Wish
      Prius relaunch                               Lexus IS250 Convertible, RX350, RX450h
      RX relaunch – with hybrid version            Hino new introductions
      Mazda 3                                      Suzuki SX4 facelift
                                                   Taxi sales

28
     Europe
 BELGIUM                                GREECE                                 FINLAND
 • Car market to remain                 • Flat market expected                 • Car market expected
   competitive                            for FY ‘08                             to grow >15% in 2008


 Driving progress in H2 08              Driving progress in H2 08              Driving progress in H2 08
 Focus on Auris, RAV4, Aygo, Yaris      Focus on Auris, RAV4, Aygo, Yaris      Mazda2 hatchback & diesel derivatives
 Pre launch marketing of Avensis        Pre launch marketing of Avensis        Jaguar XF
                                                                               Special edition Land Rover models


 Driving progress in 09                 Driving progress in 09                 Driving progress in 09
 Brand New Models: IQ, Avensis,         Brand New Models: IQ, Avenisis,        Mazda3 HB, Sedan and engine
 Verso, Urban Cruiser, Prius and Land   Verso, Urban Cruiser, Prius and        derivatives
 Cruiser.                               Land Cruiser.
                                                                               Small Land Rover SUV
 Facelifts: Aygo, Yaris, Auris, RAV4,   Lexus IS 250 Coupe, RX Hybrid
                                                                               Jaguar new XJ, engine derivatives
 Corolla Sedan
                                        Facelifts: Aygo, Yaris, Auris, RAV4,   of the XF and XK
 Lexus IS 250 Coupe, RX Hybrid          Corolla Sedan
 New retail centre opening Q1 / focus
 on aftersales
29
     UK position strengthened
     •   Delivering L4L performance ahead of a market decline
          •   Premium segment consistently outperforms
     •   Industry leading margins: F&I and aftersales partially offsetting
         margin pressure on new & used vehicles
     •   Tight cost and working capital controls yielding savings
     •   Recognised as quality performer and financially strong partner by
         OEMs
          •   Customer service improvements
          •   Portfolio strength
          •   Processes & systems discipline
          •   People development


                 Continuing to outperform in a tough market
30
 Scale and high quality UK portfolio
                            Retail Centres   •   Number One in the premium segment with unique portfolio
Audi                             10               •   7.9% of premium segment
BMW                              17               •   Premium is fastest growing, most profitable segment
Honda                             3
Jaguar                           10
                                             •   Major new facilities for brand partners to open in H2
Land Rover                       10               • AUDI : Chester & Tetbury (refurbishment)
Lexus                             5               • HONDA : Romford (new opening)
Mercedes (inc 3xCV)              17               • MERCEDES : Warrington & Coventry (refurbishment)
Mitsubishi                        1               • VOLKSWAGEN : Chelmsford, Shrewsbury (refurbishment)
Mini                             18
Porsche                           1
                                             •   Some progress on rationalisation during H1
Smart                             5               • Vauxhall – end of January
Toyota                            8               • VW Sunderland – end of June
Volkswagen (inc 2xCV)            27               • Still actively pursuing opportunities for 12 sites (Ford, Kia,
Ford, Kia, Renault, Volvo        12
                                                    Renault, Volvo)
Total                            144
                                             •   TATA acquisition will strengthen Jaguar & Land Rover
% National Market               3.2%
                                                 brands in the UK premium segment
% Premium Segment               7.9%
        Car parc continues to grow
                                                                                        Market Trends
33.0
       Total car parc          New car sales           Used car sales
                                                                                  9.0   • New cars expected to decline
                                                                                           in the next 18 months
                                                                                  8.0
32.0                                                                                    • Used cars expected to stay soft
                                                                                  7.0   • Car parc will continue to grow
31.0

                                                                                  6.0
                                                                                        Operational excellence initiatives
30.0
                                                                                  5.0   • Effective marketing (Web & 0845
                                                                                           strategy)
                                                                                  4.0
29.0
                                                                                        • Maximising capture rate (sales process)
                                                                                  3.0   • Further improving customer service
28.0
                                                                                        • Robust F&I model – penetration up
                                                                                  2.0
                                                                                           4ppts YOY
27.0
                                                                                  1.0   • Aftersales initiatives : upsell & VHCs
                                                                                        • Retention post warranty
26.0                                                                              0.0
       2001    2002     2003     2004    2005   2006       2007   2008e   2009e



              Source: SMMT for new car sales figures; Inchcape estimates for 08/09 used car and total car parc
     Emerging Markets - Russia
     • Economy expected to remain strong
     • Continued strong growth in car market, up 47% in H1 ‘08
     • Acquisition of Musa Motors Group, one of Russia’s
       largest car retailing groups in Moscow, to benefit full
       year earnings
     • Significant scale position in Moscow and St Petersburg
     • Russian car market : aftersales and F&I opportunity


     2009 combined Russian revenue expected to reach £1bn

33
     Emerging Markets
BALTICS                     BALKANS                            CHINA
• Estonia and Latvia        • Romania foreign brand car        • Continued strong economy
  markets soft                market expected to grow          • Car market to grow
• Lithuania: expected       • Bulgaria car market                >10% FY ‘08
  continued growth            expected up >10% FY ’08

Driving progress in H2 08   Driving progress in H2 08          Driving progress in H2 08
New model launches          Focus on Auris, RAV4, Aygo         Operational excellence in
                                                               Toyota / Lexus Shaoxing
Acquisition synergies       Network developments
                                                               New Lexus RC in Shanghai
Fleet opportunity

Driving progress in 09      Driving progress in 09             Driving progress in 09
New Mazda RC in Tallinn     New Toyota models                  Launch of new models
Acquisition synergies       Two new 3S facilities in Romania   M&A opportunity
New models                  1 new 3S facility in Bulgaria



34
     2008 Outlook

     •   Execution of our strategy remains on track
     •   Focus on differentiated Customer experience
     •   Worsening economic backdrop impacting some
         of our markets
     •   Benefiting from increased scale in high growth
         Emerging Markets
     •   Full year results expected to be broadly in line
         with 2007


35
     Making the difference through execution
     of our strategy
     •   Robust business model: excellent portfolio
         diversification                                                   Quality of
                                                                          Geographic
                                                                           Portfolio

     •   Multiple value drivers: vehicles and
         aftersales                                       Scale in
                                                      Emerging Markets
                                                                            Strong
                                                                           financial
                                                                           position
                                                                                          New Product
                                                                                            Pipeline



     •   Right brand partners: strong new product
                                                                         Organic Growth

         pipeline over next 18 months                                     Opportunities




     •   Continued expansion in high growth, high
         margin Emerging Markets
     •   Strong balance sheet and substantial
         committed debt facilities in place
     •   Experienced global management team

               Resilience in challenging market conditions
36
Appendices
     Like-for-like definition
     • Following are excluded from like-for-like sales:
        • Businesses that are acquired, from the date of acquisition until the
          13th month of ownership
        • Businesses that are sold or closed
        • Retail centres that are relocated from the date of opening until the
          13th month of trading in the new location




39
     Emerging markets definition
     • Emerging Markets are those markets in which the Group
       operates that have started to grow but have yet to reach a
       mature stage of development and accordingly are in the
       growth phase of the development cycle

     • This currently covers the following countries:
        •   The Balkans
        •   The Baltics
        •   China
        •   Poland
        •   Russia


40
     Impact of currency on pre-tax profit
     £m                           2008      2008     Currency
                                 actual   constant    impact
                               exchange   currency
                                 rates
     Hong Kong                   17.3       17.4      (0.1)
     Singapore                   27.3       24.9       2.4
     Australia                   22.2       19.4       2.8
     Europe                      27.6       24.0       3.5
     Emerging Markets            17.8       15.6       2.2
     ROW                         14.2       13.9       0.3
     Trading profits                                   11.1
     Interest/JV & Assoc PAT                          (0.3)
     Pre-tax profit                                    10.8
41
     Disclaimer
     The information and opinions contained in this presentation are provided as at the date of the
     document.

     Certain statements in this presentation, particularly those regarding the future prospects of Inchcape
     plc (“Inchcape”), returns, pricing, acquisitions, divestments, industry growth or other trend projections
     are or may be forward-looking statements. These forward-looking statements are not historical facts,
     nor are they guarantees of future performance. Such statements are based on current expectations
     and belief and, by their nature, are subject to a number of known and unknown risks and
     uncertainties which may cause the actual results, prospects and developments of Inchcape to differ
     materially from those expressed or implied by these forward-looking statements.

     Except as required by any applicable law or regulation, Inchcape expressly disclaims any obligation
     or undertaking to release publicly any updates or revisions to any forward-looking statements
     contained in this presentation to reflect any change in Inchcape’s expectations with regard thereto
     or any change in events, conditions or circumstances on which any such statement is based.

     All information in the presentation is the property of Inchcape plc and may not be reproduced or
     recorded without the written permission of the company. Nothing contained in the presentation
     constitutes or shall be deemed to constitute an offer or invitation to invest in or otherwise deal
     in any shares or other securities of Inchcape plc.


42

				
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