Eurotax - Solutions for Car Finance

Eurotax - Solutions for Car Finance A product overview Prepared for

Summary

1.EurotaxGlass’s – company presentation; 2.Products list; 3.Products presentation and data that we use for each product;

Company EurotaxGlass’s

With strong rate of 90% brand recognition in Europe, we are acting under the following 3 names: EurotaxGlass‘s , Glass‘s Information Services and Schwacke, generally renowned for their neutral, independent and objective character to reflect auto business in Europe.

EurotaxGlass‘s Holding

Glass‘s Information Services

EurotaxPoland - Head office Cluster CEE SCHWACKE

EurotaxGlass‘s Romania (Romania & Moldova)

EurotaxGlass´s International Head Quater in Switzerland

…To Provide a Single Source with a Consistent Data Structure

21/11/2011

Company EurotaxGlass’s

EurotaxGlass’s is the leader in data delivery, software solutions and market intelligence for automotive industry in Europe EurotaxGlass's main business lines are: new car data delivery, residual values and forecast and damage calculation. Consequently, our business is not just statistics but we offer:
solution towards assets risk evaluation & forecast both for lessors, lessees and insurance companies.
Solution towards fiscal risk management by offering both the lessor and the lessee the “FAIR MARKET VALUE” needed for: 1. Accounting registration 2. Constituting the NBR risk provisions

EurotaxGlass’s products

Our products are based on: • A clear common structure that allows us to compare information on European level; • Based on a unique and complex mathematical algorithm we are able to:    

Identify cars and their specifications (commercial and technical); Calculate RV; Forecast RV; Calculate repairment costs.

EurotaxGlass’s New Car / Raw Data

Data that we collect: - Basic information - Standard equipment; - Optional equipment with ordering codes; - Packages and formulas.

EurotaxGlass’s Residual Values

Data that we collect: -Real transaction data collected from franchise networks, independent used car dealers and leasing remarketing activities: make, model, type, platform, first registration, millage, trade in price, trade in date, sales price, sales date - New car sales type / month. (existing data since 01.01.2000); - Directly imported cars (grey market), same type and age; -More than 50,000 internet offers collected every month.

BASEL II – risk management

In the current market, accurate knowledge of the gap between market value and carrying amount of the asset financed is the decision to continue and restructuring or termination of a contract immediately in order to minimize losses. We are able to provide easily access to such information either through software applications, through dedicated service portfolio assessment or evaluation services for specific physical property. The expertise used in determining these values comes from independent and objective analysis of the Romanian market exclusively.

Motivation: Car finance market with new challenges to face Basel II requires or/and regular internal company rules : • Assessment of security value stability before every credit allocation • Repetitive assessment of securities portfolio • Extraordinary assessment in case of negative information • In the realisation of securities, internal and external experts must be involved • Implementation of early risk detection systems (at borrower side) • Portfolio valuation in case of merger or sales

ETG sees a clearly increasing demand for neutral valuation expertise in the car finance sector

As a Consequence, Car Finance Companies need more valuation information For credit decision: • What is the current value of the car • What is the future value of the car • What is the value depreciation over time Ideally, this information will be seamless included in the credit decision process with impact on decision (yes or no), rating and interest rates For the portfolio management • What is the current value of the car versus the open finance balance • What is the future value of the car versus the open finance balance Ideally this information is included in the credit portfolio management process and delivered on regular basis for the total portfolio.

EurotaxGlass `s proposal: Evaluation of cars as securities during the credit decision process

Description: • Based on Make, Model, Type, Options, Mileage and Age, EurotaxGlass`s can determine current and future residual values • Can be used either during credit decision process but also for supporting the product development processes

Benefits • Precise knowledge of actual and future residual value of car allows risk identification and management • Clear picture of value of securities and impact on credit rating already during credit decision

Example: Ideal integration of ETG valuation information in credit decision process Connecting car dealers to the systems of the car finance Bank

Dealers

1. Finance request

Point Of Sales Car Finance Bank

2. Identify Car with Eurotax information

3. Handover car to be financed

5. Credit decision/ interest rate

BO systems Car Finance Bank

Decision engine

4. Identify value of Car with Eurotax

In addition, Forecast will support any evaluation of future RV`s ETG Forecast – Application to forecast single cars and complete fleets

Basic product description • Forecast towards any desired point in the future • Including mileage, age, options, desirability… • Customizations possible as well

Customer Benefits • Detailed forecast as benchmark information • Monthly updated information based on full scope of ETG market observation

„A neutral, fair market value indicator“

EurotaxForecast

EurotaxGlass´s – auto information equivalent

[email protected]