1 1

Interim Results

Half Year Ended 30 June 2009

Presented by

Ken Surgenor, Chief Executive

Robin Gregson, Finance Director

Peter Jones, Managing Director - Motor Division

2 2

Overview

• Strong first half result ahead of expectations delivered

against the background of a challenging market

• Group continues to benefit from diversified business

model with strong performances from both Motor and

Parts Divisions

• Motor Division has increased pre tax profit despite

challenging trading conditions

• Excellent performance from independent parts distribution

• Successful fundraising completed with proceeds used

to pay down debt and improve banking facility terms

• Stronger and more efficient business with improved

flexibility from which to pursue future development strategy

3 3

• FPS - UK independent

branded same day parts

distributor operating

through 19 regional

outlets with a national

distribution centre

• APEC - UK independent

braking parts distributor

• BTN - independent

distributor of turbocharger

units worldwide

Lookers plc - structure

• New and used vehicles

• Aftersales services

• 33 marques

• Wide geographical

coverage

• 121 franchised

automotive dealerships

from 79 sites

• 2 used car supermarkets

Motor division Independent Parts division

4 4

What differentiates Lookers?

• Diversified business model

– No over dependence on a single marque

– Aftersales and parts represent a significant proportion

of gross profit

– Entrepreneurial culture fostered by a decentralised

management structure

• High level of property backing (NBV £181m)

• Business model has delivered

– Resilient trading despite economic turmoil

– Results from aftersales and independent parts

distribution have supported group performance

despite lower new car sales

5 5

Financials

Financials

6 6

* Adjusted before amortisation, exceptional items and debt issue costs

Financials at a Glance

19.0%£(10.5m)£(8.5m)Interest

-1.6p-Interim dividend

15.7%5.85p6.77pEarnings per share*

13.5%£15.5m£17.6mProfit before tax*

2.5%3.0%Operating Margin

0.4%£26.0m£26.1mOperating Profit*

(16%)£1,039.2m£870.4mTurnover

Change20082009

7 7

Turnover & Profit Contribution

615421 60 55 26Aftersales

1731 23 33Used Car 39

2948

40

22 41New Car

Op.

Profit

%

Gross

Profit

%

T/O

%

Op.

Profit

%

Gross

Profit

%

T/O

%

20082009

8 8

Exceptional Items

(1.6)(11.2)Cash impact of exceptional items

-(3.5)Bank arrangement fees in the balance sheet

(1.6)(7.7)Exceptional items included within operating profit

-(0.5)Other

-(0.2)Aborted acquisition costs

(0.6)(0.2)Integration costs

(1.0)(2.0)Closure costs/loss on termination of businesses

- 0.4Profit on sale of properties

-(5.2)Refinancing costs

2008

£m

2009

£m

9 9

Balance Sheet

–153.1*Adjusted Net Assets

141.2113.6Debtors

330.9208.6Stocks

2.11.9Net Debt / EBITDA

98%51%*Gearing

103.678.5*Net Debt

105.976.6Net Assets

(168.1)(207.8)Non Current Liabilities

(5.3)29.1Working Capital

275.9267.8Fixed Assets

30 June 2008

£m

30 June 2009

£m

* Adjusted on a pro forma basis for share issue

1010

Asset Backing

185181Total

49 48Long Leasehold

136133Freehold

PROPERTIES

NBV

JUNE 2008

£m

NBV

JUNE 2009

£m

1111

Summary of Cash Flow

(1.2) 2.1Tax refunded/(paid)

8.3 2.1Increase in cash and cash

equivalents

(3.9) -Dividends paid

(9.6) (8.0)Interest paid (net)

(13.5) 10.3Increase/(decrease) in loan facility

0.3 3.9Proceeds from disposals

(6.5) (4.0)Investment in acquisitions/fixed

assets

44.4 (2.2)Cash (absorbed by) / generated

from operations

2008

£m

2009

£m

1212

Rationale for the Equity Issue

• £76.5m reduction in bank debt

• Secures improved banking facility terms based onproforma net debt of £73.0m

• Provides a more suitable capital structure for the currenteconomic environment with target leverage of c.2.0x bankdebt to EBITDA

• Significantly reduces borrowing costs by c.£16.7mbetween July 2009 and December 2011

• Improves headroom on dividend restrictions, allowing anearlier return to a progressive dividend policy (expected2010)

• Improves the Company’s ability to secure debt facilities onmore favourable terms in the future

1313

Appendices

Operational Review

1414

Motor Division – Review of restructuring

Business Restructuring

• 21 loss making businesses, including 9 ‘satellite’

businesses, closed to strengthen ‘hub’ operations

• 7 marginal businesses strengthened through ‘dual’

franchising

Cost Base Focus

• New and used vehicle stocks reduced by £68.5m year on

year

• Headcount in continuing businesses reduced by 302 in

HY2 08

• Headcount in discontinued businesses drove further

reduction of 426

• 2009 total company pay freeze

1515

Motor Division – Strong platform for 2009

• Restructured division, 121 franchises,

representing 33 marques from 79 sites

• Like for like headcount base reduced by 6.0%

• Used / Demonstrator stock reductions have

reduced interest costs by £2.6m

• Overall cost base reductions deliver £12m per annum

recurring savings

• Direct costs reduced by 6.3%, £4.3m on a like for like

basis, indirect costs held at 2008 levels

• Consolidated market area results are transformational

• Well positioned for targeted growth

1616

Motor Division – NEW CARS

– Total UK new car market down 25.9%

– Group sales down 19% - 7% ahead of the market

– Lookers gaining market share up to 2.85% (2008: 2.6%)

– Gross margin: 7.6%

– Finance income penetration at 57%

– Reduced demo / fully paid inventories

– UK Government scrappage scheme generating

incremental income (3,000+ orders)

– Full year forecast upgraded to £1.825m units

1717

Motor Division – USED CARS

– Full recovery in used car values

– Volumes up 8.5% for first six months of the year

– Gross margin: 10.2%

– Finance income penetration held at 35%

– Leaner inventory - half stock turn

1818

Motor Division – AFTERSALES

– Revenues and margins are above 2008 levels for the period

– Gross profit increased

– Group continues to increase market share

– Improved marketing initiatives

1919

Independent Parts Division

• Sales growth up 15%

• Profit before tax increased by 34%

• FPS- Continued investment in Sheffield NDC

- Relocation of Glasgow facility (September)

- Relocation / expansion at five regional depots

- E-business development (43% of sales)

- Launched car care programme

- Strengthened/expanded operations resource

- Focus on new product ranges

- Launch of new own label products

• APEC- Sales growth up 20%

- Launched new marketing initiatives

- Focus on new product ranges and availability

• BTN- Relocation to larger facility

- Improved penetration of motor factor customers

2020

Summary

• Strong trading performance for the half year above expectations

• Equity issue provides a stronger and more flexible capital structure

and significantly reduces borrowing costs

• Diversified business model continues to provide flexibility in difficult

trading conditions

• Strong performance from Motor Division which is well placed to

trade through downturn

• Full benefit of £12m of recurring cost savings in the current year

and interest savings on working capital reductions

• Strong performance from Motor Division

• Independent parts division having a record year

• Experienced management team

• Return to a progressive dividend policy (expected in 2010)

• Group is well positioned to take advantage from economic recovery

2121

Appendices

Appendices

2222

• Balanced Geographical

Coverage

• Key Representation

Conurbation

2323

2424

Franchise and Distribution Outlets

Preston

Reading

Southampton

Staples Corner

APEC

Bristol

BTN Turbocharger

Uxbridge

AGRICULTURAL

DIVISION

Darley Dale

Tuxford

Darlington

Lincoln

Morden

Northallerton

Preston

Teesside

Motorcycles

BMW

Newtownabbey

Yamaha

Belfast

Tyres

Belfast – Boucher Road

Belfast – Sydenham

Road

Coleraine

Dundonald

Omagh

Portadown

USED CAR

SUPERMARKETS

Bristol

Burton-on-Trent

PARTS DISTRIBUTION

FPS

Sheffield

Barking

Birmingham

Bristol

Cardiff

Charlton

Colchester

Glasgow

Leeds

Leicester

Liverpool

Luton

Maidstone

Manchester

Newcastle

Nottingham

Belfast

Chelmsford

Chester

Colchester

Macclesfield

Newtownabbey

Newtownards

Stockport

Seat

Stockport

Toyota

Belfast

Chelmsford

Newtownabbey

Rayleigh

Romford

Vauxhall

Belfast

Birkenhead

Birmingham

Blackburn

Chester

Ellesmere Port

Lisburn

Liverpool

Portadown

Selly Oak

Speke

St. Helens

Wallasey

Warrington

Widnes

Yardley

Volkswagen

Battersea

Blackburn

Blackpool

Boston

Burnley

Liverpool

Preston

Fiat

Northwich

Stockport

Ford

Braintree

Chelmsford

Clacton

Colchester

Macclesfield

Sheffield

South Woodham Ferers

Sudbury

Witham

Hyundai

Dundonald

Motherwell

Kia

Belfast

Stockport

Mazda

Motherwell

Nissan

Altrincham

Belfast

Chester

Newtownabbey

Peugeot

Belfast

Cardiff

Newport

Renault

Altrincham

Lexus

Belfast

Hatfield

Maserati

Belfast

Mercedes-Benz

Ashford

Brighton

Canterbury

Eastbourne

Gatwick

Maidstone

Redhill

Tonbridge

Saab

Chester

Liverpool

Smart

Brighton

Maidstone

Tonbridge

Volvo

Colchester

Glasgow

Motherwell

Volume

Franchises

Chevrolet

Liverpool

Warrington

Yardley

Citro n

Belfast

Blackpool

FRANCHISES

Prestige Franchises

Alfa Romeo

Cardiff

Aston Martin

Belfast

Bentley

Belfast

Chrysler, Jeep, Dodge

Belfast

Ferrari

Belfast

Honda

Bexleyheath

Derby

Liverpool

Nottingham

Southport

Warrington

Hummer

Belfast

Jaguar

Belfast

Glasgow

Motherwell

Land Rover

Belfast

Bishop's Stortford

Chelmsford

Colchester

Glasgow

London - Battersea

London - Park Royal

Motherwell