Rebranding Doesn t Matter; Losing Ground to Peers in a Decelerating Industry Does Rating: SELL Price Target: $42.50 (13.

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1 CFA INSTITUTE RESEARCH CHALLENGE 2014 Rebranding Doesn t Matter; Losing Ground to Peers in a Decelerating Industry Does Rating: SELL Price Target: $42.50 (13.3% DISCOUNT)

2 AGENDA 1) Industry at Cyclical High 2) Decline in Position Relative to Peers 3) Rebranding Fails to be a Catalyst

3 THE PRICE IS RIGHT Highly fragmented industry with local competition Public v. private companies Commoditized product Compete on cost Buyer power Economies of scale Access to equity markets 25,000 20,000 15,000 10,000 5,000 AN Franchises v. Market New Car Dealerships AN Franchises

4 CFA INSTITUTE RESEARCH CHALLENGE 2014 Industry at Cyclical High Recovery Masquerading Growth

5 NEW SALES NEED TO COME BACK TO EARTH Historical New Vehicle Sales Growth Unprecedented new vehicle sales growth following the Great Recession 10.0% (10.0%) (20.0%) 9.9% 11.7% 8.9% 12.6% 0.6% Four consecutive years of +8% vehicle sales growth from (30.0%) (40.0%) (35.7%) The automotive retail industry s long term sustainable growth rate is closer to 1% Analyst consensus significantly above our projections

6 INTERNET ERODING MARGINS Advent of the internet has transformed the new and used segment into a commodity 3 rd party lead originators have further increased buyer power Additional fees incurred when lead originators refer customers to franchise dealers New vehicle margins have fallen by 160 bps over the last decade 8.5% 8.3% 8.1% 7.9% 7.7% 7.5% 7.3% 7.1% 6.9% 6.7% 6.5% New Vehicle Gross Margins AN & Peer Group Average

7 INDUSTRY VALUATION AT CYCLICAL HIGH Automotive retail industry currently trades at 9.0x on an EV/EBITDA basis and 16.9x on a P/E basis Industry Discount to S&P 500 High valuation driven by unsustainable growth rates Realistic growth rates coupled with margin compression will lead to reversion to historical norms Valuation should fall back in line with historical norms of 7-8x EV/EBITDA and 12-15x P/E

8 CFA INSTITUTE RESEARCH CHALLENGE 2014 Decline in Position Relative to Peers How the Mighty Have Fallen

9 LESS PROFITABLE PARTS AND SERVICE The Parts and Service Segment makes up the majority of the industry s gross profit AN P&S Margins vs. Peer Average For AN LTM through 9/30/13 Parts and Service made up 40.2% of gross profit AN has had worst in peer group Parts and Service margins for 2010 LTM As Parts and Service makes up a larger share of industry gross profit as New and Used car margins compress, AN will be at a disadvantage

10 SG&A NO LONGER AN ADVANTAGE AN business model is predicated on shared fixed costs among franchises AN s size relative to peers should afford it a significant SG&A advantage AN SG&A vs. Peers (rank in italics) #1 #2 #2 #3 AN s formerly best in class SG&A as a % of Gross Profit has eroded to middle of the pack Industry high compensation expense is largely to blame

11 CARS AREN T ONLY COMMODITY - SHARES ARE TOO ESL has supported the Company since 2000, and as of Sept had an ownership stake of 55% ESL is an activist investor with a significant position in Sears They have been forced to significantly reduce their stake in AN, driven by redemption requests from LPs as a result of Sears performance 60% 50% 40% 30% 55% ESL Ownership 44% 41% 32% 28% 25% The forced selling has put pressure on AN shares and is one of the sources of multiple spread compression 20% 10% Distribution of shares to LPs instead of cash could create further surplus of shares 0% Sep-12 Dec-12 Mar-13 Jun-13 Sep-13 Dec-13

12 CURRENT PREMIUM IS FAIR PREMIUM AN s weakness in Parts and Service margins and SG&A expense has resulted in a diminished premium to peers AN P/E Premium vs. Peers AN s average premium to peers on P/E basis now 1.57x vs 2 year average of 3.47x AN s average premium to peers on EV/EBITDA basis now 1.14x vs 2 year average of 2.14x Bull case for premium reverting to historical levels is unmerited

13 CFA INSTITUTE RESEARCH CHALLENGE 2014 Rebranding Fails to Be a Catalyst Who You Gonna Call Or Not

14 INTERNET PRESENCE HARDLY MAKES A DENT Rebranding had two primary goals Increase ability to leverage national brand Reduce reliance on 3 rd party advertisers to generate sales leads AN Search Volume vs. 3 rd Party Improved internet presence could significantly reduce the number of sales employees needed improving SG&A Web volumes show significant gains need to be made to catch 3 rd party search volume

15 WEBSITE EASE OF USE ANALYSIS Easy Navigation Comparison Function Proximity to Buyer Market Research x x x x x * Based on Independent Comparison of Third Party Websites

16 INVESTMENT RISKS Internet Advertising Boosts Sales and Reduces SG&A Industry Multiple Compression Requires a Catalyst New and Used Margin Recovery Due to OEM Product Enhancement New Vehicle Sales Continue to Recover from Pre-Recession Levels

17 VALUATION SENSITIVITY New Vehicle Sales Volume: 1% Conservative New and Used Margin Compression: -10 bps Even with SG&A compression still SELL rating DCF BULL DCF BASE DCF BEAR EV/EBITDA EV/EBIT P/E Summary Football Field Price Target : $42.50 * (13.3 %) Downside to Current Price Based on Base Case Estimates * As of 1/9/2014 $25 $35 $45 $55 $65 Price Per Share

18 THE BOTTOM LINE Industry at Cyclical High, Driven by Unrealistic New Vehicle Sales AN s Historical Premium to Peers Unwarranted Rebranding will not Boost Valuation

19 CFA INSTITUTE RESEARCH CHALLENGE 2014 Appendix

20 APPENDIX TABLE OF CONTENTS Model Case Assumptions New Vehicle Sales Used Vehicle Sale P&S, F&I and Other Compensation Expense Advertising Expense Internet and Overhead Expense Floorplan Expense Operating Model Drivers Operating Model Summary Cost of Capital Unlevered DCF Sensitivity Levered DCF Sensitivity Industry Profitability and Size Industry Balance Sheet Comparison Industry Revenue by Segment Comparable Analysis ESL Divestments Annotated Price Graph Post Report Performance

21 MODEL ASSUMPTIONS Assumptions Item Bear Base Bull New Organic Market Share Growth 0.01% 0.02% New Acquired Market Share Growth 0.02% 0.04% Unit Price Growth 0.50% 0.75% 1.00% Unit Margin Compression (0.20%) (0.10%) Used / New Sales Factor 72.0% 71.0% 69.9% Other / New Sales Factor 1.5% 1.5% 1.5% Other Gross Profit Margin 32.5% 35.0% 37.5% Employees / Franchise Annl Savings Compensation / Employee Growth 1.75% 1.50% 1.25% MRR Growth Rate 8.00% 6.00% 4.00% Internet Savings Ramp 5.00% 7.50% 10.00% Overhead % of Gross Profit Savings 0.20% 0.40% F&I % of New Vehicle Sales Growth 0.05% 0.10% P&S Gross Margin Expansion 0.10% 0.20% Dealers Acquired US New Light Vehicle Sales - SB 0.90% 1.00% 1.10%

22 NEW VEHICLE SALES BUILD New Vehicle Sales Autonation Segment Buildup (Unit Sales in,000; Sales in (MM)) US Light Duty Vehicle Sales 12, , , , , , , , ,078.4 Growth 8.9% 12.6% 0.6% 1.00% 1.00% 1.00% 1.00% 1.00% Market Share (Organic) 1.64% 1.61% 1.75% 1.84% 1.92% 1.95% 1.98% 2.01% 2.04% Growth (0.03%) 0.14% 0.09% 0.01% 0.01% 0.01% 0.01% 0.01% Acquired Market Share 0.02% 0.05% 0.01% 0.07% 0.02% 0.02% 0.02% 0.02% 0.02% Market Share (Total) 1.66% 1.66% 1.76% 1.91% 1.94% 1.97% 2.00% 2.03% 2.06% Growth (0.01%) 0.10% 0.15% 0.03% 0.03% 0.03% 0.03% 0.03% New Unit Sales Growth 8.5% 19.5% 9.4% 2.6% 2.6% 2.5% 2.5% 2.5% New Unit Avg Price $32,303 $33,472 $33,258 $33,964 $34,218 $34,475 $34,733 $34,994 $35,256 Growth 3.6% (0.6%) 2.1% 0.8% 0.8% 0.8% 0.8% 0.8% New Unit Revenue ($MM) $6,669.1 $7,498.9 $8,906.9 $9,949.6 $10,282.1 $10,624.2 $10,975.2 $11,335.2 $11,704.5 Growth 12.4% 18.8% 11.7% 3.3% 3.3% 3.3% 3.3% 3.3% New Unit Gross Profit ($MM) Margin 6.8% 7.3% 6.5% 6.2% 6.1% 6.0% 5.9% 5.8% 5.7%

23 USED VEHICLE SALES BUILD Used Vehicle Sales Used Unit Sales - Retail Growth 6.8% 5.8% 13.0% 4.3% 2.6% 2.5% 2.5% 2.5% Used / New Sales Factor 77.6% 76.4% 67.6% 69.8% 71.0% 71.0% 71.0% 71.0% 71.0% Used Unit Avg Price - Retail $17,266 $17,812 $17,850 $18,081 $18,216 $18,353 $18,491 $18,629 $18,769 Growth 3.2% 0.2% 1.3% 0.8% 0.8% 0.8% 0.8% 0.8% Used Unit Revenue - Retail 2, , , , , , , , ,424.0 Used Unit Revenue - Wholesale Wholesale / Retail Factor 12.7% 15.3% 15.0% 11.5% 11.5% 11.5% 11.5% 11.5% 11.5% Used Unit Revenue ($MM) $3,116.1 $3,512.8 $3,714.7 $4,127.4 $4,333.1 $4,477.3 $4,625.2 $4,776.9 $4,932.5 Growth 12.7% 5.7% 11.1% 5.0% 3.3% 3.3% 3.3% 3.3% Used Unit Gross Profit ($MM) Margin 8.6% 8.1% 8.1% 8.0% 7.9% 7.8% 7.7% 7.6% 7.5%

24 P&S, F&I, AND OTHER BUILD Parts and Service Parts and Service Revenue $2,209.1 $2,293.1 $2,399.2 $2,597.4 $2,697.7 $2,808.2 $2,921.3 $3,037.0 $3,155.6 Growth 3.8% 4.6% 8.3% 3.9% 4.1% 4.0% 4.0% 3.9% AN Fleet (MM Units) Revenue / Unit $317.4 $329.4 $344.2 $368.8 $379.9 $391.3 $403.1 $415.1 $427.6 Growth 3.8% 4.5% 7.2% 3.0% 3.0% 3.0% 3.0% 3.0% Parts and Service Gross Profit , , , , , , ,359.2 Margin 43.6% 42.3% 42.0% 42.6% 42.7% 42.8% 42.9% 43.0% 43.1% Finance and Insurance $418.9 $474.5 $571.2 $674.0 $701.7 $730.3 $759.9 $790.5 $822.1 Growth 13.3% 20.4% 18.0% 4.1% 4.1% 4.1% 4.0% 4.0% % of New Vehicle Sales 6.3% 6.3% 6.4% 6.8% 6.8% 6.9% 6.9% 7.0% 7.0% Other Other Revenue $47.8 $53.0 $76.8 $169.2 $154.2 $159.4 $164.6 $170.0 $175.6 Growth 10.9% 44.9% 120.3% (8.8%) 3.3% 3.3% 3.3% 3.3% Other / New Factor 0.7% 0.7% 0.9% 1.7% 1.5% 1.5% 1.5% 1.5% 1.5% Other Gross Profit Margin 57.5% 50.8% 37.1% 20.1% 35.0% 35.0% 35.0% 35.0% 35.0%

25 COMPENSATION EXPENSE BUILD Compensation Expense Autonation SG&A Buildup Franchises Employees 19,000 19,400 21,000 22,811 23,011 23,210 23,408 23,604 23,799 Employees / Franchise Compensation / Employee $53,257.9 $55,257.7 $55,352.4 $56,642.7 $57,492.4 $58,354.8 $59,230.1 $60,118.5 $61,020.3 Growth 3.8% 0.2% 2.3% 1.5% 1.5% 1.5% 1.5% 1.5% Compensation Expense $1,011.9 $1,072.0 $1,162.4 $1,280.7 $1,323.0 $1,354.4 $1,386.4 $1,419.0 $1,452.2 Growth 5.9% 8.4% 10.2% 3.3% 2.4% 2.4% 2.4% 2.3% % of Gross Profit 47.6% 46.5% 46.8% 46.4% 46.6% 46.1% 45.7% 45.2% 44.8%

26 ADVERTISING EXPENSE BUILD Advertising Expense Autonation SG&A Buildup Total Advertising Expense $126.2 $130.2 $135.7 $169.6 $158.2 $162.7 $167.2 $171.6 $176.0 % of Gross Profit 5.9% 5.7% 5.5% 6.1% 5.6% 5.5% 5.5% 5.5% 5.4% Advertising by Media Newspapers $25.7 $19.2 $17.2 $19.3 $17.0 $17.6 $18.2 $18.8 $19.4 % of Total 20.4% 14.7% 12.7% 11.4% 10.8% 10.8% 10.9% 11.0% 11.0% % of Gross Profit 1.2% 0.8% 0.7% 0.7% 0.6% 0.6% 0.6% 0.6% 0.6% Radio $17.5 $21.7 $20.7 $25.1 $23.7 $24.5 $25.3 $26.2 $27.0 % of Total 13.9% 16.6% 15.3% 14.8% 15.0% 15.1% 15.1% 15.2% 15.4% % of Gross Profit 0.8% 0.9% 0.8% 0.9% 0.8% 0.8% 0.8% 0.8% 0.8% TV $33.7 $31.1 $34.0 $42.6 $38.9 $40.2 $41.5 $42.9 $44.4 % of Total 26.7% 23.9% 25.1% 25.1% 24.6% 24.7% 24.9% 25.0% 25.2% % of Gross Profit 1.6% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% 1.4% Direct Mail $11.2 $14.1 $15.9 $19.6 $18.1 $18.7 $19.4 $20.0 $20.7 % of Total 8.8% 10.8% 11.7% 11.5% 11.5% 11.5% 11.6% 11.7% 11.8% % of Gross Profit 0.5% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% 0.6% Internet $27.0 $30.6 $35.5 $46.5 $46.4 $47.1 $47.7 $48.1 $48.4 % of Total 21.4% 23.5% 26.2% 27.4% 29.3% 28.9% 28.5% 28.0% 27.5% % of Gross Profit 1.3% 1.3% 1.4% 1.7% 1.6% 1.6% 1.6% 1.5% 1.5% Other $11.2 $13.6 $12.3 $16.5 $14.1 $14.6 $15.0 $15.5 $16.1 % of Total 8.9% 10.4% 9.1% 9.7% 8.9% 8.9% 9.0% 9.1% 9.1% % of Gross Profit 0.5% 0.6% 0.5% 0.6% 0.5% 0.5% 0.5% 0.5% 0.5% Total $126.2 $130.2 $135.7 $169.6 $158.2 $162.7 $167.2 $171.6 $176.0

27 INTERNET & OVERHEAD EXPENSE BUILD Internet Spending Autonation SG&A Buildup Autotrader.com Market Share 76.6% 77.8% 76.8% Autotrader.com MRR / Dealer $3,408.3 $3,857.9 $4,072.8 Total 3rd Party MRR / Dealer $4,447.4 $4,957.8 $5,301.3 $5,619.3 $5,956.5 $6,313.9 $6,692.7 $7,094.3 $7,519.9 Growth 11.5% 6.9% 6.0% 6.0% 6.0% 6.0% 6.0% 6.0% Franchises rd Party Spending Per Franchise $12.9 $15.3 $16.9 $17.6 $19.4 $20.8 $22.3 $23.9 $25.6 % of Total Internet Spending 47.8% 50.2% 47.4% 37.7% 41.9% 44.3% 46.8% 49.7% 52.9% Internet Savings Ramp 7.5% 15.0% 22.5% 30.0% 37.5% 3rd Party With Savings $12.9 $15.3 $16.9 $17.6 $18.0 $17.7 $17.3 $16.7 $16.0 Non 3rd Party Internet Spending $14.1 $15.2 $18.7 $29.0 $28.4 $29.4 $30.4 $31.4 $32.4 % of Gross Profit 0.7% 0.7% 0.8% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% Total Internet Spending $27.0 $30.6 $35.5 $46.5 $46.4 $47.1 $47.7 $48.1 $48.4 % of Gross Profit 1.3% 1.3% 1.4% 1.7% 1.6% 1.6% 1.6% 1.5% 1.5% Overhead Expense Overhead Expense $414.0 $447.2 $451.4 $484.7 $493.1 $504.1 $515.0 $525.9 $536.8 % of Gross Profit 19.5% 19.4% 18.2% 17.6% 17.4% 17.2% 17.0% 16.8% 16.6% TOTAL SG&A $1,552.1 $1,649.4 $1,749.5 $1,935.0 $1,974.3 $2,021.2 $2,068.6 $2,116.5 $2,165.0 % of Gross Profit 73.0% 71.6% 70.4% 70.1% 69.5% 68.8% 68.1% 67.5% 66.8%

28 FLOORPLAN INTEREST EXPENSE BUILD Floorplan Interest Expense Analysis Floorplan Interest Expense (42.5) (42.7) (45.5) (53.4) (56.3) (59.0) (61.9) (64.9) (67.9) Floorplan Payable 1, , , , , , , , ,180.7 Implied Borrowing Rate 2.28% 2.25% 1.79% 1.94% 1.98% 2.02% 2.06% 2.10% 2.14% 3 Mo. LIBOR 0.34% 0.34% 0.43% 0.27% 0.29% 0.31% 0.33% 0.35% 0.37% Spread 1.93% 1.91% 1.36% 1.67% 1.69% 1.71% 1.73% 1.75% 1.77%

29 OPERATING MODEL DRIVERS Operating Model Drivers Depreciation and amortization % of Block 3.04% 3.09% 2.99% 3.04% 3.04% 3.04% 3.04% 3.04% 3.04% Effective Tax Rate 38.29% 38.39% 38.60% 37.82% 38.50% 38.50% 38.50% 38.50% 38.50% Balance Sheet Drivers Current Assets Days Sales Outstanding Days Inventory Held Other current assets % of Sales 1.64% 1.40% 1.25% 1.16% 1.20% 1.24% 1.28% 1.32% 1.36% Current Liabilities Vehicle floorplan payable - trade Days Payable Vehicle floorplan payable - non-trade Days Payable Accounts payable Days Payable Other current liabilities % of COGS 3.49% 3.03% 3.00% 2.90% 2.94% 2.98% 3.02% 3.06% 3.10% CapEx % of Sales 1.30% 1.18% 1.13% 1.25% 1.00% 1.00% 1.00% 1.00% 1.00%

30 OPERATING MODEL SUMMARY Operating Model Summary Income Statement Revenue $12,461.0 $13,832.3 $15,668.8 $17,517.6 $18,168.8 $18,799.4 $19,446.2 $20,109.7 $20,790.3 Growth 11.0% 13.3% 11.8% 3.7% 3.5% 3.4% 3.4% 3.4% Gross Profit 2, , , , , , , , ,240.7 Growth 8.3% 7.9% 11.0% 2.9% 3.4% 3.4% 3.3% 3.3% Margin 17.1% 16.7% 15.9% 15.8% 15.6% 15.6% 15.6% 15.6% 15.6% EBIT Growth 20.6% 14.5% 14.7% 2.3% 5.8% 5.7% 5.6% 5.5% Margin 3.5% 3.8% 3.9% 4.0% 3.9% 4.0% 4.1% 4.2% 4.2% EBITDA ,007.8 Growth 18.8% 13.1% 14.0% 2.7% 5.8% 5.7% 5.6% 5.4% Margin 4.1% 4.4% 4.4% 4.5% 4.5% 4.6% 4.7% 4.8% 4.8% Net Income $226.6 $281.4 $316.4 $374.9 $385.0 $410.6 $437.2 $459.8 $493.4 Growth 24.2% 12.4% 18.5% 2.7% 6.6% 6.5% 5.2% 7.3% Margin 1.8% 2.0% 2.0% 2.1% 2.1% 2.2% 2.2% 2.3% 2.4%

31 COST OF CAPITAL ANALYSIS Discount Rate Calculation - Assumptions Nominal Risk-Free Rate: 3.61% Equity Risk Premium: 4.96% Market Value of Debt $1,930 Pre-Tax Cost of Debt: 4.04% Debt/Equity 32.64% Most Recent Coupon: 5.50% Comparable Companies - Unlevered Beta Calculation Levered Equity Unlevered Name Beta Debt Value Tax Rate Beta PENSKE AUTOMOTIVE GROUP INC 1.58 $ 1,061 $ 4, % 1.35 GROUP 1 AUTOMOTIVE INC 1.38 $ 587 $ 1, % 1.12 SONIC AUTOMOTIVE INC-CLASS A 1.55 $ 752 $ % 1.02 ASBURY AUTOMOTIVE GROUP 1.59 $ 520 $ 1, % 1.32 LITHIA MOTORS INC-CL A 1.28 $ 225 $ 1, % 1.17 Median Regression Beta 1.22 Auto Nation - Levered Beta & WACC Calculation Unlevered Equity Levered Beta Debt Value Tax Rate Beta Auto Nation 1.17 $1,930 $ 5, % 1.41 With Industry Average Cap 1.17 $2,025 $ 5, % 1.17 Cost of Equity using Bottom-Up Beta: 10.58% Cost of Equity using Regression Beta: 9.66%

32 UNLEVERED DCF SENSITIVITY ANALYSIS Terminal Growth Rate Terminal EBITDA Multiple Auto Nation - Share Price Sensitivity - Terminal Growth Rates Discount Rate $ % 6.9% 7.1% 7.4% 7.6% 7.9% 8.1% 1.85% $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ Auto Nation - Share Price Sensitivity - Terminal EBITDA Multiples Discount Rate $ % 6.9% 7.1% 7.4% 7.6% 7.9% 8.1% 7.5 x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ 56.30

33 LEVERED DCF SENSITIVITY ANALYSIS Terminal Growth Rate Terminal Net Income Multiple AutoNation - Share Price Sensitivity - Terminal Growth Rates Discount Rate $ % 8.7% 9.2% 9.7% 10.2% 10.7% 11.2% 1.85% $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ % $ $ $ $ $ $ $ AutoNation - Share Price Sensitivity - Terminal P/E Multiples Discount Rate $ % 8.7% 9.2% 9.7% 10.2% 10.7% 11.2% 11.0 x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ x $ $ $ $ $ $ $ 53.43

34 INDUSTRY PROFITABILITY AND SIZE Key Industry Metrics Autonation Peer Group Average Peer Group Rank Profitability LTM LTM LTM New Vehicle Margin 6.8% 7.3% 6.5% 6.1% 7.1% 7.1% 6.7% 6.4% Used Vehicle Margin 8.6% 8.1% 8.1% 7.9% 8.7% 8.5% 8.3% 8.3% Parts and Service Margin 43.6% 42.3% 42.0% 42.5% 52.7% 52.6% 53.2% 53.8% SG&A % of Gross Profit 73.0% 71.6% 70.4% 70.4% 79.1% 76.4% 74.8% 73.9% Compensation 47.6% 46.5% 46.8% 46.5% 46.7% 46.0% 45.2% 44.8% Advertising 5.9% 5.7% 5.5% 6.2% 4.8% 4.4% 4.5% 4.5% Overhead 19.5% 19.4% 18.2% 17.8% 27.5% 25.9% 25.0% 24.6% Rent Expense 2.6% 2.3% 1.9% N.Av 7.1% 6.3% 5.8% N.Av N.Av Overhead ex. Rent 16.9% 17.1% 16.2% N.Av 20.4% 19.6% 19.3% N.Av N.Av Size New Car Market Share - Units 1.66% 1.66% 1.76% N.Av 0.71% 0.71% 0.76% N.Av N.Av Used Car Market Share - Units 0.89% 1.10% 1.06% N.Av 0.37% 0.49% 0.51% N.Av N.Av Number of Franchises

35 INDUSTRY BALANCE SHEET METRICS Key Industry Metrics Autonation Peer Group Average Peer Group Rank Balance Sheet LTM LTM LTM Veh. Floorplan Payable - Trade % of Assets 23.1% 22.0% 24.5% 24.9% 16.1% 12.5% 12.2% 12.4% Veh. Floorplan Payable - Non-Trade % of Assets 8.1% 8.7% 10.7% 10.3% 15.4% 20.5% 25.8% 24.5% Veh. Floorplan Payable - Trade % of Inventory 73.9% 75.3% 73.7% 73.4% 42.6% 34.1% 30.9% 30.8% Veh. Floorplan Payable - Non-Trade % of Inventory 26.1% 29.7% 32.3% 30.5% 40.7% 55.3% 61.6% 57.3% FP Int Exp / Floorplan Financing 2.28% 2.25% 1.79% 1.99% 3.04% 2.47% 2.09% 2.20% FP Int Exp / Inventory 2.28% 2.36% 1.90% 2.07% 2.54% 2.22% 1.95% 1.99% FP Assistance / Inventory 2.98% 3.38% 3.07% 3.44% 2.69% 2.90% 2.71% 2.76% Benefit / Inventory 0.70% 1.02% 1.17% 1.37% 0.14% 0.68% 0.76% 0.78% Capex % of Sales 1.21% 1.08% 1.02% 0.95% 0.91% 1.19% 1.29% 1.31% Cash Conversion Cycle Days Sales Outstanding Days Inventory Held New Vehicles Used Vehicles Parts and Service and other Days Payable Vehicle floorplan payable - trade Vehicle floorplan payable - non-trade Accounts payable Cash Conversion Days

36 INDUSTRY REVENUE BY SEGMENT 2012 Industry Revenue Attribution Brand AN ABG GPI LAD PAG SAH Peer Average AN Rank Domestic 31.7% 18.6% 19.1% 54.8% 4.0% 14.5% 22.2% 2 Import 39.5% 62.9% 42.4% 31.3% 28.0% 33.5% 39.6% 3 Luxury 28.8% 18.6% 38.5% 13.9% 68.0% 52.0% 38.2% 4 Geography AN ABG GPI LAD PAG SAH Peer Average AN Rank Northeast 0.0% 0.0% 15.2% 0.0% 5.8% 0.0% 4.2% 6 Mid-Atlantic 2.0% 7.9% 5.8% 0.0% 8.4% 5.7% 5.6% 5 Southeast 34.0% 74.2% 12.3% 0.0% 7.6% 27.2% 24.2% 2 Southwest 26.0% 6.7% 44.5% 27.0% 9.3% 28.7% 23.2% 4 West 33.0% 0.0% 14.6% 65.0% 9.9% 33.6% 24.6% 3 Mid-West 5.0% 11.2% 1.4% 8.0% 4.9% 4.8% 6.1% 3 International 0.0% 0.0% 6.2% 0.0% 54.1% 0.0% 12.1% 6 Sunbelt 93.0% 80.9% 71.4% 92.0% 26.7% 89.5% 72.1% 1 Segment AN ABG GPI LAD PAG SAH Peer Average AN Rank New Vehicle 56.8% 56.2% 57.4% 55.7% 51.5% 56.4% 55.4% 2 Used Vehicle 23.7% 28.0% 27.4% 29.3% 28.5% 26.7% 28.0% 6 Parts and Service 15.3% 12.2% 11.8% 10.5% 11.0% 13.9% 11.9% 1 Finance and Insurance, net 3.6% 3.6% 3.5% 3.4% 2.5% 3.0% 3.2% 1 Other 0.5% 0.0% 0.0% 1.1% 6.6% 0.0% 1.5% 3

37 COMPARABLE ANALYSIS P/E EV/EBIT EV/EBITDA Company Name 2012 LTM 2012 LTM 2012 LTM PENSKE AUTOMOTIVE GROUP INC 22.2x 17.6x 14.1x 12.2x 12.2x 10.1x GROUP 1 AUTOMOTIVE INC 16.2x 14.8x 9.3x 8.3x 8.2x 7.3x SONIC AUTOMOTIVE INC-CLASS A 10.4x 11.1x 7.0x 7.0x 5.8x 5.7x ASBURY AUTOMOTIVE GROUP 19.5x 15.3x 11.4x 9.8x 10.2x 8.8x LITHIA MOTORS INC-CL A 19.1x 15.6x 11.6x 9.8x 10.4x 8.9x AUTONATION INC 18.9x 17.1x 11.9x 11.0x 10.5x 9.7x Mean 17.5x 14.9x 10.7x 9.4x 9.4x 8.2x Median 19.1x 15.3x 11.4x 9.8x 10.2x 8.8x 25th Percentile 16.2x 14.8x 9.3x 8.3x 8.2x 7.3x 75th Percentile 19.5x 15.6x 11.6x 9.8x 10.4x 8.9x

38 ESL DIVESTMENTS ESL Investments Key Dispositions Date Number of Shares Transaction 1 Day impact 5 Day Impact 19-Feb-13 3,173,029 Distribution to LPs -1.52% -4.92% 10-Jun-13 11,175,659 Distribution to LPs -1.47% -4.47% 8-Aug ,439 Open Market Sales -0.12% -1.34% 9-Aug ,068 Open Market Sales -0.12% -4.03% 12-Aug-13 36,163 Open Market Sales -0.95% -4.86% 13-Aug-13 46,341 Open Market Sales 0.15% -5.31% 14-Aug ,807 Open Market Sales -0.42% -2.53% 30-Aug-13 40,351 Open Market Sales -0.04% 5.41% 3-Sep ,958 Open Market Sales 1.09% 8.89% 4-Sep ,784 Open Market Sales 0.53% 12.53% 5-Sep-13 1,058,027 Open Market Sales 2.32% 9.30% 6-Sep ,000 Open Market Sales 1.38% 7.73% 9-Sep ,000 Open Market Sales 4.42% 3.11% 16-Sep ,067 Open Market Sales -1.60% 2.15% 28-Oct-13 2,577,460 Distribution to LPs -0.75% -0.82% 30-Oct-13 4,604 Open Market Sales -2.50% 0.62%

39 ANNOTATED PRICE GRAPH

40 POST REPORT PERFORMANCE Strong Earnings Report 1/30/14 Q4 Results EPS beat estimates by 16.9% Sales missed by -1.4% New Vehicle same-store sales only up ~1% 2013 Annual Results EPS beat by 4.5% Sales missed by -0.3% 2013 New Vehicle Sales of 15.6 MM AN Share Price $53 $51 $49 $47 $45 $43 Performance Since Report Date (1/9/14) $41 AN Share Price Price Target