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1 Quarterly market update for the period ending 31 December January 2017 Automotive Solutions Group Limited (ASX: 4WD) integration progressing as planned following ASX listing Highlights: Automotive Solutions Group Limited begins trading on the ASX under the ticker code 4WD following a successful $30 million capital raising Integration of initial eight businesses is progressing as planned with synergies tracking ahead of pre-ipo expectations Intercompany trading between aggregated businesses, and distribution of products and services nationally supported by a coordinated Marketing strategy has commenced. Growth opportunities identified and enthusiastically supported by ASG management team Common financial reporting platform and controls processes implemented across all businesses in first two weeks of ownership Closing cash position of $4.0M with trading in line with expectations over Christmas period Automotive Solutions Group Limited (ASX:4WD, the Company ) is pleased to provide the following update on its activities for the period ended 31 December 2016, following the company s initial public offering (IPO) in December Integration update The Company has made a strong start to integrating the eight business that it has acquired as part of the IPO process, which raised $30 million in capital. The acquisitions allow Automotive Solutions Group to offer a comprehensive range of accessories and services to four-wheel drive, SUV and touring enthusiasts. The various businesses under the group have already started to cross sell each other s products and services as management continues to focus on streamlining operations. This is done with minimal disruption to the individual businesses, which allows the businesses to focus on meeting customer demand whilst the streamlining of operations is commenced. More importantly, the realisation of synergies across the supply chain as well as operational and administration efficiencies is progressing ahead of expectations.

2 Quarterly market update for the period ending 31 December 2016 Operational overview Trading conditions are expected to remain buoyant over the next 12 months, if not beyond, as the Company has entered the market in a period of strong growth for the 4X4/SUV market. According to the Federal Chamber of Automotive Industries (FCAI) SUV sales recorded strong growth in 2016 and now account for 37.4% of the new vehicle sales market, up from 35.4 % in This growth is expected to continue in 2017 as consumers transition from traditional passenger cars. (Source: This sales growth in SUVs, along with the willingness of 4X4 enthusiasts to spend on customising their vehicles, is expected to fuel the retail industry for aftermarket parts and accessories in Australia. This market segment has experienced steady growth over the past five years (2.3% annual growth) and is expected to reach $A4.9 billion in annual revenue in (Source: Automotive Solutions Group is well placed to become a strong industry participant through its portfolio of highly respected brands and national network that operates across four states, with 11 sites and ~250 dealerships. These businesses collectively generated sales of nearly $40 million in FY16 and have a proven track record of profitability with established long-term relationships with clients and suppliers. Corporate and Financial overview The Company finished the quarter with a cash balance of $4.0 million. This puts it in a strong financial position to fund organic growth opportunities and pursue a bolt-on acquisition to strategically increase its market share. Cash receipts for the period ended 31 December 2016 were $0.4M, representing an average of only five trading days between the completion of the acquisitions and the end of the reporting period.

3 Quarterly market update for the period ending 31 December 2016 Outlook Automotive Solutions Group is on track to achieve its prospectus revenue and earnings forecasts. Management is aiming for a 7% increase in group sales to $42.7 million (full year) in the current financial year and an 7.5% uplift in earnings before interest and tax (EBIT) to $6.5 million (full year), despite having to account for an additional $1.1 million in head office costs relating to the formation of ASGL and its listing on the ASX. The forecasts do not account for any additional acquisitions and management is actively exploring a number of opportunities in this area. We are in for an exciting ride in the year ahead as we are well placed to benefit from a number of tailwinds that will help us grow the business and our operating margins over the medium to longer term, said ASGL Chief Executive Officer Tanya Mason. We have plenty of room to grow given the market position of our various brands, the above trend sales growth in 4X4/SUV vehicles and given the fact that our stock is very attractively priced when compared to our peer group. Investor Enquiries: Media Enquires: Evan Camilleri Melissa Mack Automotive Solutions Group Media and Capital Partners E: evanc@asgl.com.au E: Melissa.mack@mcpartners.com.au M: M: About Automotive Solutions Group ASGL offers a comprehensive range of aftermarket products and services to the large and growing four-wheel drive market through its national network of 250 dealers and 11 company facilities. The group is made up of a range of businesses that are leaders in their respective categories and have a strong track record of profitability. ASGL is well placed to consolidate the fragmented market and generate significant profit margins from economies of scale and synergies from its integrated business model.

4 +Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16 Name of entity Automotive Solutions Group Ltd ABN Quarter ended ( current quarter ) December 2016 Consolidated statement of cash flows 1. Cash flows from operating activities Year to date (6 months) 1.1 Receipts from customers Payments for (a) research and development (b) product manufacturing and operating costs (60) (60) (c) advertising and marketing (7) (7) (d) leased assets (39) (39) (e) staff costs (143) (143) (f) administration and corporate costs (112) (112) 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (provide details if material) (1,413) (3,181) 1.9 Net cash from / (used in) operating activities (1,362) (3,130) Note 1.8 refers to two groups of costs: 1) $2,186K of year-to-date ($418K for the quarter) of industry research, business development, due diligence and corporate advisory costs associated with the establishment and setup of the company. These costs were incurred prior to ASG s listing on the ASX and were funded out of seed capital, and 2) $995K of year-to-date ($995K for the quarter) of acquisition expenses associated with listing on the ASX. 1 September 2016 Page 1

5 Consolidated statement of cash flows 2. Cash flows from investing activities Year to date (6 months) 2.1 Payments to acquire: (a) property, plant and equipment (181) (181) (b) businesses (see item 10) (22,089) (22,089) (c) investments (d) intellectual property (e) other non-current assets (550) (550) 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities (22,821) (22,821) 3. Cash flows from financing activities 3.1 Proceeds from issues of shares 29,026 29, Proceeds from issue of convertible notes 300 2, Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options (1,291) (1,291) 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities 28,035 29,921 1 September 2016 Page 2

6 Consolidated statement of cash flows 4. Net increase / (decrease) in cash and cash equivalents for the period Year to date (6 months) 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter (1,362) (3,130) (22,821) (22,821) 28,035 29, ,971 3, Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Previous quarter 5.1 Bank balances 3, Call deposits Bank overdrafts Other (provide details) Cash and cash equivalents at end of quarter (should equal item 4.6 above) 3, Payments to directors of the entity and their associates $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Notes: Represents payroll expenses for Board members paid in the period 1 October 2016 to 31 December September 2016 Page 3

7 7. Payments to related entities of the entity and their associates $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2 Notes: Represents $250,000 (plus GST) paid to Trident Global Finance Pty Ltd, a company majority owned and controlled by Bryce Wedemeyer (Director). This payment relates to consultancy services in relation to the listing of ASG during the period commencing on 15 February 2016 and ending 28 October This consultancy agreement ended 28 October 2016 and was paid in Q2 FY Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end Amount drawn at quarter end 8.1 Loan facilities Credit standby arrangements Other (please specify) Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter 9.1 Research and development Product manufacturing and operating costs 3, Advertising and marketing Leased assets Staff costs 2, Administration and corporate costs Other (provide details if material) 2, Total estimated cash outflows 9,888 Note 9.7 includes deferred vendor consideration amounts ($1,179K), other costs associated with the listing ($1,282K), and capital expense forecast ($200K). 1 September 2016 Page 4

8 10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above) Acquisitions 10.1 Name of entity a) AMA b) Barden Fabrications c) ROO Systems d) JDR Motorsport e) Deering f) Dolium g) Transpec h) Umhauers 10.2 Place of incorporation or registration 10.3 Consideration for acquisition or disposal n/a $A 000 a) 3,918 b) 8,774 c) 3,618 d) 880 e) 779 f) 1,152 g) 1,331 h) 1,637 Total 22, Total net assets $A 000 a) 1,167 b) 1,285 c) (17) d) 337 e) 165 f) 910 g) 213 h) 834 Total 4, Nature of business a) Alloy fabrication b) Steel fabrication and 4X4 parts & accessories distribution c) Vehicle enhancements d) Vehicle performance technology e) Automotive electronics and airconditioning f) 4X4 parts wholesaling and distribution g) Vehicle modifications h) 4X4 parts and accessories retailing Disposals Note 10.1 refers to the primary trading names of the businesses acquired. No business entities were purchased as part of the acquisition. Note 10.2 is not applicable as no business entities were purchased as part of the acquisition. Note 10.3 represents cash consideration paid in the quarter. Additional cash consideration of $1,179K ($250K ROO Systems, $209K JDR Motorsports and $720K Umhauers) is payable in Q3 FY17. 1 September 2016 Page 5

9 Compliance statement 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 31/01/2017 Print name: Evan Camilleri Notes 1. The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. 1 September 2016 Page 6