MEDIA KIT

PRESS CONFERENCE

OCTOBER2019

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MARKETPARTS.COM : THE WORLD’S FIRST DIGITAL B2B MARKETPLACE FOR AUTOMOTIVE SPARE PARTS MANUFACTURERS AND DISTRIBUTORS

1 / MARKET CONTEXT // The global automotive aftermarket: a market worth €700 billion a year p.03 // A complex and highly fragmented distribution system in Europe p.04 // The challenge of the entry of global consolidators since 2011 p.06 // Car manufacturers seek to conquer the independent aftermarket p.07 // B2B distribution lacks digital standards p.08

2 / MARKETPARTS.COM’S RESPONSE // Concept p.10 // Operation p.11 //Benefits p.12 // Key success factors p.14 // Deployment: a concept tested over 16 months p.16

3 / BUSINESS MODEL // Remuneration principles p.18 // Shareholder structure p.20 // Organization p.21

4 / SUMMARY – MEDIA RELEASE p.23

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1 / MARKET CONTEXT

1 / THE GLOBAL AUTOMOTIVE AFTERMARKET: A MARKET WORTH €700 BILLION A YEAR

The global vehicle fleet has exceeded one billion vehicles since 2007. Today in Europe, there are over 308 million vehicles in circulation, of which more than 268 million are passenger cars. China already has 340 million vehicles (including 250 million passenger cars) and the United States has some 250 million cars...

Each year, 100 million new vehicles are put in circulation on the planet. By 2020, there will be 250 million connected vehicles worldwide.

The worldwide aftermarket that has developed to maintain and repair these vehicles, whose age, number and technological complexity increase each year, totals €700 billion annually, including €213 billion in Europe alone.

The global aftermarket has a value of $774 billion (McKinsey)

Sources: McKinsey market model; expert survey among CLEPA members (February 2017)

Notes: The figures in billions of USD include parts, labor, maintenance and collision-related revenues.

2USA, Canada and Mexico - 3Including India - 4South America, Africa and Oceania

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2 / A COMPLEX AND HIGHLY FRAGMENTED DISTRIBUTION SYSTEM IN EUROPE

In Europe, the distribution of automotive spare parts is as complex as it is fragmented.

Aftermarket structure in Europe

Glossary• IAM : Independent AfterMarket Parts from automotive manufacturers and services distributed

other than by OEMs.

• OES : Original Equipment Supplier Original parts and services distributed by OEM networks only.

Source : Wolk (May 2019)

1 / MARKET CONTEXT

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A highly fragmented market: over 45,000 independent distributors in Europe, which account for 78% of IAM distribution

Number of distributors in the top 4 European markets:

In Europe, distributors are not just numerous. They are also quite diverse duetoavarietyoffactors:theirspecifichistories,organization,equipmentor training levels, size, whether or not they are members of buying groups, historical ties to various parts manufacturers and partners, etc.

In addition, the mix of their activities varies considerably due to differences in local, regional and even national socio-economic environments.

1 / MARKET CONTEXT

This extreme fragmentation has generated significant differences in distributors’ purchasing practices: for example, it is estimated that 6% to 8% of this global trade is B2B commerce between distributors, a figure that is increasing steadily.

Source : Nexus Automotive International (sept. 2019)

Source : Gipa

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3 / THE CHALLENGE OF THE ENTRY OF GLOBAL CONSOLIDATORS SINCE 2011

Apart from this context that is not conducive to achieving economies of scale, warehouse distributors are also facing the emergence of major consolidators that streamline purchasing and services.

The European aftermarket, which for decade has been structured around regional or national champions, has experienced the entry of US consolidators, LKQ followed by GPC, which target the leaders in each market to advance their expansion in Europe.

For example, LKQ successively acquired ECP (UK, October 2011), Sator Van Heck (Benelux, April 2013), Rhiag (Italy and Central Europe, March 2016) and Stahlgruber (Germany and Central Europe, May 2018).

Globally, GPC reports revenue of USD 18.7 billion (source GPC-2018) and LKQ revenue of USD 11.3 billion (source LKQ-2018).

The numerous and significant benefits of consolidation: // Savings on purchases, for branded products and private labels

// Savings on supply chain (warehouse costs, dealing with slow-moving inventory)

// Savings on services:support,cataloguing,increasedERPefficiency,etc.

Independent distributors must therefore acquire new tools/solutions to compete with these giants. One component of the response will be digital.

1 / MARKET CONTEXT

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4 / CAR MANUFACTURERS SEEK TO CONQUER THE INDEPENDENT AFTERMARKET

In addition, car manufacturers are contributing to the market turmoil. They first focused on private labels (Motrio, Eurorepar, EconomicParts, etc.)to reposition their price offers in workshops. For the past two years, they have added ranges of parts from suppliers to their spare parts offer.

Thisendofearmarkedpreserveshasdefinitivelybroughttoaclosewhathad until then been a segmented market: on the one hand, OEM spare parts, which were considered more reliable but were more expensive and, on the other hand, the independent aftermarket, which targeted older vehicles.

This boundary no longer exists.

For example, in the French market, the two national automakers are now investing directly in the independent aftermarket, either through acquisitions (Renault’s acquisition of Exadis in France, PSA in China) or by deploying a strategy of conquering the independent auto shop market by offering parts from automotive supplier brands (nearly 130 PSA Distrigo distributors throughout Europe).

Powerful international new vehicle distribution groups, which may be national or even regional groups, are also moving in this direction, making otheracquisitionsintheindependentaftermarketfield(forexamplePGAMotors, which acquired Flauraud).

This strategy of the OEMs to develop a hybrid offer for independent auto shops is becoming increasingly prevalent and will put additional pressure on independent distributors’ stocks and prices.

1 / MARKET CONTEXT

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5 / B2B DISTRIBUTION LACKS DIGITAL STANDARDS

The automotive aftermarket, and parts distribution in particular, has obviously not been immune to the emergence of digital players, which have developed according to two models:

1 // Parts sales to individuals (B2C)

Online shops provide significant discounts on parts to end consumers (e.g., oscaro.com in France, daparto.de in Germany, etc.).

2 // Parts sales to repairers (B2B)

Certain sites offer repairers access to preferred purchasing terms onspecifictypesofproducts(07ZRfortires)oronawiderangeofparts (e.g., otop.pro in France, intercars.com.pl in Poland).

In both cases, the average purchase is small (around €100) because it is made in response to an immediate need to repair a single specific vehicle.

1 / MARKET CONTEXT

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The emergence of e-commerce marketplaces

In 2017, 50% of e-commerce sales were made on marketplaces around the world.Xerfi,aresearchinstitute,estimatesthatby2020marketplaceswill account for one out of three transactions in France. These platforms, which include Alibaba, Amazon and eBay, are driving the growth of global e-commerce.

These global marketplaces, such as eBay and Amazon, are now looking to develop their B2B and B2C spare parts sales offers. The model continues to focus on the immediate needs of a single specific vehicle.

To date, no major initiative has allowed a warehouse distributor to access products on the platform, either from another distributor or directly from the manufacturer, on the basis of an established and shared standard.

No platform offers a solution that enables simultaneously searching for hundreds or thousands of different product references on a global scale, which is a daily task for a buyer at warehouse distributor.

This is now possible with Marketparts.com.

1 / MARKET CONTEXT

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1 / CONCEPT

Marketparts.com: the world’s first digital B2B marketplace for automotive parts manufacturers and distributors

Marketparts.com offers two distinct services:

1 / A global sourcing platform for all types of distributors, including warehouse distributors, retailers and pure digital players

2 / A sales and destocking platform for distributors and parts manufacturers

2 / MARKETPARTS.COM’S RESPONSE

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2 / MARKETPARTS.COM’S RESPONSE

2 / OPERATION

Marketparts.com offers distributors a platform for marketing immediately available spare parts under optimal service, availability and price conditions. It is totally new due to its global scale and the solutions it offers, and it aims to be a pioneer and a leader.

Marketparts.com has been designed as a platform that is fully open: // to all distributors anywhere in the world, whether or not they are members

of a buying group;

// to all parts manufacturers, without imposing any requirements on their distribution policy.

This liberal approach will enable it to quickly become the go-to standard.

SOURCING BEFORE MARKETPARTS.COM

SOURCING WITH MARKETPARTS.COM

Long and time-consuming job, multipe Excel files sent, random answers, reminders, manual compilation of data for analysis.

Simultaneous search for thousands of references worldwide from selected parts manufacturers, standardized answers, easy and immediate comparison.

US Seller

US Seller

Buyer Middle East Seller

Middle East Seller

Germany Seller

Germany Seller

Turkey Seller

Turkey Seller

Buyer

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3 / BENEFITS

Marketparts.com’s aims to achieve this objective in an optimal manner way by creating a frictionless space where buyers (distributors) and sellers (distributors or parts manufacturers) can network.

For buyers, Marketparts.com is a unique digital platform that:

// Optimizes the sourcing process.

//Seeksandfinds thebest pricesworldwide, taking into account thesignificantpricedistortionsbetweeneachmarketandbetweeneachmarket player.

// Offers a solution in the event a supplier experiences a stock shortage.

//Simplifies the sourcing process by providing access to premiumbranded parts in all product categories.

2 / MARKETPARTS.COM’S RESPONSE

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For sellers, Marketparts.com provides access to:

// New customers around the world, without any human or financial investment.

// A means to diversify distribution channels.

// A solution for selling overstocks, or stock collected to gain market share from competitors, by targeting geographical areas in complete confidentiality.

2 / MARKETPARTS.COM’S RESPONSE

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Both buyers and sellers will obviously profit from common benefits:

// Ease of use: a single contact point and a simple and secure transaction that offers additional services

// Worldwide scope

//Verificationandconfirmationofthereliability of both buyers and sellers

// Transparent access to historical and price fluctuationdataforreferencesonmultiplemarkets

// Numerous services: payment guarantee, shipping solutions

Within the next two to four years, France, as well as Europe, are considering legislation to prohibit the destruction of unsold non-food items. Marketparts.com is a concrete and immediate response to this future legal obligation.

2 / MARKETPARTS.COM’S RESPONSE

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4 / KEY SUCCESS FACTORS

Like all networking platforms, Marketparts.com solves an age-old economic problem: matching supply and demand.

However, the success of this model depends on one crucial factor: maintaining a constant balance between supply and demand.

If there is no demand, suppliers will leave the platform (no need to waste time if there are no potential customers). If there are no suppliers, demand will decrease rapidly.

The challenge for Marketparts.com is therefore to optimize in real time the recruitment of buyers and sellers to satisfy both groups.

2 / MARKETPARTS.COM’S RESPONSE

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In addition, these buyers and sellers must share a common language, which does not currently exist, and have access to a system that is easy and quick to use.

To meet these requirements, the major technical components of the project are:

1 // A global and unique product database built with the support ofpartsmanufacturersanddistributorslocatedonfive continents. It is fed and standardized by integrating external databases and references, as well as by working in collaboration with all distributors already present on the platform.

2 // A search engine that makes it possible to process a large volume of single-brand or multi-brand references (up to 2,000 references simultaneously).

These two factors totally set Marketparts.com apart from the solutions currently on the market.

2 / MARKETPARTS.COM’S RESPONSE

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5 / DEPLOYMENT: A CONCEPT TESTED OVER 16 MONTHS

A first version has been operational since May 2018

Marketparts.com, which has been active since May 2018, was initially deployed as a proof of concept (PoC). During that stage, it was only available to Nexus Automotive International members.

Launched and tested within the Nexus community, Marketparts.com has met expectations and proven its effectiveness.

Marketparts.com is already a non-transactional B2B market for passenger car and heavy duty parts warehouse distributors that brings together 60 sellers and over 200 buyers, and generates average price quotes of €18,000.

With over one million references, it has already put buyers and sellers from 30 countries on five continents in contact with each other.

«Marketparts.com has proven the effectiveness of its concept within the Nexus community over the last two years. We are pleased to have supported this initiative and to see that it is now available to all global distributors, without restriction on the grounds of shareholder structure or trading group,» stated Gaël Escribe, CEO of Nexus Automotive International.International.

N! Nexus Automotive International SA is a growth accelerator for modern companies in the automotive and truck aftermarket with cumulated revenue of €16 billion in 2019.

Gaël Escribe

2 / MARKETPARTS.COM’S RESPONSE

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A platform that is now fully open to all distributors

Building on this success with the early adopters of the Nexus community, Marketparts.com is now available to all players in the global aftermarket.

At the Equip Auto Paris trade show in October 2019, Marketpart.com is announcing the gradual opening of the platform by the end of the year to all players, whether parts manufacturers or distributors.

New functionalities and new services will be added to the platform, which will become transactional.

2 / MARKETPARTS.COM’S RESPONSE

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1 / REMUNERATION PRINCIPLES

Marketparts.com has two sources of income, which are directly tied to each of the services offered:

1 // Subscription fees (monthly, semi-annual or annual) which enable distributors to access the platform and view offers

2 // Commissions on the sale of batches offered for sale by parts manufacturers and distributors

The various subscription plans Marketparts.com offers distributors

3 / BUSINESS MODEL

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3 / BUSINESS MODEL

Users are given two weeks of free trial to discover the benefits of the platform.

Marketparts.com’s objectives for 2020 are:

// Several hundred paying subscribers worldwide

//€10millionofdestockingflows

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2 / SHAREHOLDER STRUCTURE

“Following the documented success of the proof of concept that has been tested over 18 months at Nexus Automotive International, a spin-off of Marketparts.com was the logical and essential next step to allow this initiative to naturally open up to the global market and to maintain a significant level of investment in its operating tool and development, while protecting the entrepreneurial values that are the basis of its success,” stated Christophe Riberolle, Chairman of Marketparts.com.

To ensure its development and independence, in September 2019, the Marketparts.com start-up raised €3 million from international investors.

“This equity financing marks a new step forward in the development of Marketparts.com. The next stage is to increase our teams and to have a workforce of 15 persons by the end of the year, and to accelerate our global commercial deployment,” added Christophe Riberolle.

Marketparts.com has already begun work on expanding its services, such as offering logistics solutions to its users or payment guarantees.

3 / BUSINESS MODEL

Christophe Riberolle

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3 / ORGANIZATION

Marketparts.com is headquartered in Lyon, France.

The company was founded and is headed by Christophe Riberolle, who was Director of International Development and a member of the Executive Committee of Mister Auto, the leading e-commerce site in Europe, for six years.

The advisors to the management team include Dr. Christian Macht, Chairman of Element Insurance AG. Previously, Christian Macht was Chief Scientific Officer (CSO) of Rakuten Europe and a member of the Supervisory Board of Rakuten Europe Bank, after having held the position of Chairman of Rakuten Germany.

He provides his technical and international expertise to Marketparts’ managers.

3 / BUSINESS MODEL

With its expertise in sourcing and digital technology and in-depth knowledge of the global aftermarket, Marketparts.com’s management team has a perfect grasp of the fundamentals of this project.

Dr. Christian Macht

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Paris, October 15, 2019

Marketparts.com: the world’s first digital B2B marketplace for automotive parts manufacturers and distributors

The world’s first digital B2B marketplace for automotive parts manufacturers and distributors – Marketparts.com – has been launched at Equip Auto Paris, the international trade show for aftermarkets sales and services.

Marketparts.com creates a unique opportunity for distributors of all sizes, wherever they are in the world, to directly access the products of global parts manufacturers at the best price, availability and service conditions.

Christophe Riberolle, founder of Marketparts.com, said: “This is bringing something genuinely new and exciting to the aftermarket. It is a huge op-portunity for manufacturers and distributors in a marketplace valued at 700 billion euros annually.”

“Marketparts.com is 100% designed for all players involved in

automotive spare parts distribution worldwide. The approach is unique, open and innovative, and we believe it will quickly become a standard.”

4 / MEDIA RELEASE

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4 / MEDIA RELEASE

Marketparts.com offers two distinct services:

1 / A global sourcing platform for all types of distributors, including warehouse distributors, retailers and pure digital players

2 / A sales and destocking platform for distributors and parts manufacturers

The Marketparts.com business model is based on subscription fees paid by the buyers and sellers to access this global sourcing platform.

Following 16 months successful proof of concept within the NEXUS Automotive International distributors network, Marketparts.com was fully spun-off as a standalone business to address the entire global aftermarket.

Some 3 million euros in funding was raised from international investors, which will allow Marketparts.com to invest in its IT in order to implement new features on the digital platform. Additional staff will also be recruited to ensure its global commercial deployment by the end of 2020.

Christophe Riberolle is an experienced leader with a successful aftermarket digital background as former Director of International Development for Mister Auto, Europe’s leading spare parts sales website.

He is supported by Dr Christian Macht, formerly CSO Europe of Rakuten, who brings a unique digital strategic vision.

With their expertise in sourcing and digital technology and in-depth knowledge of the global aftermarket, Marketparts.com’s management team has a perfect grasp of the fundamentals of this innovative project.

Christophe Riberolle

Press contact

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Coralie Jugan

Tel. : +33 1 41 99 32 33

e-mail : c.jugan@actionmedia.fr

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