Raising business efficiency and customer services standards in

"Raising business efficiency and customer services standards in automotive claims: an Eastern Europe example" Focus countries: Romania, Poland, Russia Dr. Richard J. Nathschlaeger Tashkent, April 15, 2011

Solera – the only global provider of claims management solutions § Leading global provider of estimating software and services to the automobile insurance claims processing industry - US$558 million in revenue in FYE 30/6/09 - 63% of revenue generated in EMEA; 37% in the Americas § Number 1 or 2 position in every market we serve § Our clients have included each of the 10 largest European and North American auto insurers § Founded in 1966, with a presence in 53 countries and approximately 2, 200 fulltime employees § Over 72, 000 customers including: - 1, 500 automobile insurance carriers - 36, 000 collision repair facilities - 7, 000 independent assessors - 29, 000 automotive recyclers and dealers Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Central and Eastern Europe (CEE) in the Solera World Audatex North-America SAN DIEGO, CA AX - America AXIbero-America SAO PAOLO, BR Audatex UISA Audatex GAS READING, UK MINDEN, GERMANY ABZ Audatex BEFIG ZEIST, NETHERLANDS BRUSSELS, BELGIUM Solera SAN DIEGO, CA Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa Audatex CEE VIENNA, AUSTRIA Audatex-APAC TOKYO, JAPAN

Audatex in Central and Eastern Europe Opportunity: Action: Market Development Audatex CEE Objectives • High economic growth region • Demand for electronic workflow partner • Customers have quality expectations • Meet and exceed customer expectations • Respond to dynamic market developments • Expedite global knowledge, local focus AX-CEE: Facts & Figures • HQ in Vienna • 100 employees in the region • Regional product development capabilities Voice of our customer • Big 5 insurers go CEE • Allianz, AXA, Generali, Uniqa, VIG • Manufacturers go CEE • VW, Dacia-Renault, Kia, Hyundai, Peugeot Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Market dynamics - Romania • The repair market is dominated by Dacia – Renault repair facilities as a result of their dominance in the car parc • In the field of motor claims the insurers play a dominant role which was strengthened even more during the last couple of years of economic crisis • Insurers enforce labour rates and parts price conditions through contracts • However, steering is still in initial phases and true approved repairer networks are just starting to be developed • The introduction of a standard estimating tool increased the transparency Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Example Audatex – a true benefit for the Romanian Market • In 2006 the market started accepting electronic estimating systems with: • Importer / manufacturer recommended part prices • Labour times based on manufacturer guidelines • Manufacturer based painting • Today, 9 out of the TOP 10 insurers require/accept a standardised Audatex estimate from the repairers based on manufacturer information in order to approve a repair • Repair costs were thus reduced by 15%-20 % • In return insurers guarantee jobs to repairers using Audatex – some shops could increase their insurance driven business by up to 50 % • Now both sides go for further process automation in the motor claims business to reduce process waste and waiting times Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Market dynamics - Poland • Approximately 2, 500 repair facilities service about 80% of the repairable motor claims volume • The top 5 insurers control more than 70% of the motor insurance business • Insurers rely on the dealers for policy sales for new cars • Price war on the policy side forced insurers to focus on the process and severity control and thus look for closer ties with the repairers • In the last 2 -4 years concrete steps towards steering and building of approved repairer networks can be observed Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Market standards – Poland There are standards which contribute to efficiency and customer satisfaction • Electronic repair estimating systems provided by Audatex and Eurotax have been a standard in Poland for more than 10 years • OEM parts prices are provided by the importers and are a standard for the country • The average repair estimate has been relatively stable except for a dip of about 10% in 2008 and the first half of 2009 but recovered to the level of about 5, 100 PLN. Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

The financial crisis of 2008/9 brought a shift in the market dynamics Motor claims repairs came into the focus of everyone The Repairers • Repairs became a major source of revenue • Repair waiting times decreased to 3 -6 weeks • Established closer relations with the insurers • Began using mutually accepted independent estimating tools to establish a “common language” • Focused on automating the workflow to get faster approvals and reduce waiting times Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

The financial crisis of 2008/9 brought a shift in the market dynamics The Insurers • Drive to establish a “common language” with the repairers based on market realities • Part prices • Repair times and methodology • Painting • This allows for shift of repairs to independent shops and reduction of the number of disagreements • Centralization of claims processing standardizes the process and reduces the probability of fraud • Automation of the workflow with the repairers based on structured data instead of physical or electronic “paper” is expected to bring major enhancements to customer service and process efficiency Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Market trends towards increasing efficiency and customer satisfaction – Russia We observe several trends • Majority of insurers are transitioning to official electronic repair cost estimating tools • Interest is growing towards importer recommended part prices • Manufacturer labour times are getting broad acceptance • Work is going on to determine acceptable painting methodology • Importers and insurers are strengthening relationships in the claims area • Preferred repair networks and steering are emerging • There is a realized need for process automation based on structured data rather than shuffling paper (be it physical or electronic) Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Drive to increase efficency and customer satisfaction CEE is behind Western countries in terms of clear standards. Major steps to be taken are: • Adoption of a standard estimating tool • Management of labour times, local part prices and painting standards • Development of approved repairer networks and introduction of steering • Automation of the repair process between Work Providers and Repairers Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa

Audatex will continue to invest in Eastern Europe & CIS How is Audatex contributing to this improvement ? • Audatex has established teams in each country • Our teams focus on process optimisation for each client • We provide expertise to all countries in the region • We are excited by the opportunity to share our global knowledge to assist in the transition to higher standards and increased customer satisfaction in Uzbekistan Audatex | ABZ | AUTOonline | Hollander | HPI | Informex | Inpart | Market Scan | Sidexa