Copyright 2017. The NPD Group, Inc. All Rights Reserved. This presentation is proprietary and confidential and may not be disclosed in any manner, in whole or in part, to any third party without the express written consent of NPD.

Karen Grant Senior Vice President, Global Beauty Industry Analyst

The Beauty in Auto Care

Women in Auto Care 2017 Winter Conference

The NPD Group, Inc. | Proprietary and confidential 2

If the economy had a sex The insight beauty provides for Automotive

The NPD Group, Inc. | Proprietary and confidential 3

If the economy had a sex…

“If the consumer economy had a sex, it would be female.

Women drive 70-80% of all consumer purchasing, through a combination of

their buying power and influence. Influence means that even

when a woman isn’t paying for something herself, she is often the influence or veto vote behind someone else’s purchase”

Source:forbes.com/sites/bridgetbrennan/2015/01/21/ top-10-things-everyone-should-know-about-women-consumers

The NPD Group, Inc. | Proprietary and confidential 4

Beauty and the female shopper

In 2016,

87%

U.S. shoppers

9 out of 10 women shopped for beauty products

Source: The NPD Group/ Makeup In-Depth Consumer Reports 2016, 2014, 2012

The NPD Group, Inc. | Proprietary and confidential 5

The what and The why Review of the 2016 automotive trends and factors impacting results

Consumer Mindset

The NPD Group, Inc. | Proprietary and confidential

Binge Behavior

6

The NPD Group, Inc. | Proprietary and confidential

12ME December 2016 % change vs. prior – Total U.S. Markets (All Channels) -

7

Beauty again leads growth across U.S. industries

Apparel

Small Appliances

Toys

-8%

0% +8% Footwear

Video Games

Consumer Electronics

Food Service

Accessories

Watches

Auto Aftermarket

Home Textiles

Housewares

Office Supplies

0%

*Household Products

*Perishable Grocery

*Dry Grocery

Source: The NPD Group/Retail and Consumer Tracking Service 12ME Dec ’16 *Nielsen Answers, 52 weeks ending Dec 31 ’16

*Health & Beauty Aids

Video Entertainment**

**Note: Video Entertainment reflects 12ME Sep’16

Prestige Beauty

Total Growth: +0.6%

The NPD Group, Inc. | Proprietary and confidential 8

2016: another prestige beauty milestone

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

$16 Billion

$13 Billion

$14 Billion

$15 Billion

$17 Billion Yes! “Another year, another Billion!”

2012 2013 2014 2015 2016

Total Prestige Beauty Sales, 12ME December U.S.

The NPD Group, Inc. | Proprietary and confidential 9

The look of U.S. prestige beauty 2016

In 2016,

83%

Makeup almost doubled annual incremental dollars generated (from $455M in 2013 to $822M in 2016). In 2015, Makeup accounted for 74% of total U.S. prestige beauty gains

U.S. makeup advances

4 out of 5 dollars gained in prestige beauty was from

makeup

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

The NPD Group, Inc. | Proprietary and confidential

$0

$200

$400

$600

$800

$1,000

$1,200

Dec 2013 Dec 2014 Dec 2015 Dec 2016

Fragrance Makeup Skincare

10

December’s makeover

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

S Millions

Women’s Prestige Beauty Dollar Sales Change vs. Prior Year

Almost 90% of U.S. consumers use scented products, including home scent products like candles or air fresheners and/or body fragrance like perfume or body spray

Makeup surpassed $1Billion in December… Capturing 42% of December women’s sales and 98% of incremental gains for the month. Fragrance dropped to 32% share of December.

The NPD Group, Inc. | Proprietary and confidential 11

Feel good Experiences

The NPD Group, Inc. | Proprietary and confidential 12

Apparel Specialty like Old Navy and H&M driving footwear gains

Biggest winner in Apparel Q4:

Sleepwear and Underwear

NPD industries see: shifting choices

Apparel Retail

Direct Mail/Pure Plays biggest Winner in Apparel retail in Q4:

Footwear

48% of dinner meals purchased from a restaurant were eaten at home as take-out. Source: The NPD Group/Annual Report on Eating Patterns in America Source: The NPD Group / Tracking Service -. 2016

Food Service

Dress Slips-Ons/Loafers are finding growth with both

fashion brands… and more traditional comfort brands

The NPD Group, Inc. | Proprietary and confidential 13

I buy beauty because…

Feel Confident 53%

78% Look and Feel My Best

62% Treat for Myself

Today, confidence is a lesser motivator Source: The NPD Group, HOP Survey, January 2017

The NPD Group, Inc. | Proprietary and confidential 14

Women in beauty: 2017 hierarchy of “needs”

“I will not cut…”

Products, Services, and Experiences

on equal levels

Beauty Products

Clothing/Apparel Footwear Dining Out

Beauty Treatments Home Entertainment Vacations Entertainment Out

Jewelry, Watches Personal Electronics Accessories Home Decor Gym/Personal Trainer Video Games

Source: The NPD Group, HOP Survey, January 2017

The NPD Group, Inc. | Proprietary and confidential 15

Trends impacting retail DIY auto parts sales

Miles Driven Gasoline Price New Car Sales

The NPD Group, Inc. | Proprietary and confidential

2,200

2,400

2,600

2,800

3,000

3,200

Jan

-92

Dec

-92

No

v-93

Oct

-94

Sep

-95

Au

g-9

6

Jul-

97

Jun

-98

May

-99

Ap

r-0

0

Mar

-01

Feb

-02

Jan

-03

Dec

-03

No

v-04

Oct

-05

Sep

-06

Au

g-0

7

Jul-

08

Jun

-09

May

-10

Ap

r-1

1

Mar

-12

Feb

-13

Jan

-14

Dec

-14

No

v-15

Oct

-16

Mile

s D

rive

n (

Bill

ion

s)

The most recent published 12 month period showed a growth rate of +3.0%, equating to an increase of almost 100 Billion miles

16

Annual Miles Driven: almost 100 Billion more

Source: U.S. Department of Transportation; Rolling 12 Months

Pre-recession Peak:

November 2007

Annual Miles Driven

The NPD Group, Inc. | Proprietary and confidential

$1.75

$2.25

$2.75

$3.25

$3.75

$4.25

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52

Pri

ce P

er

Gal

lon

Week

2012

2013

2014

2015

2016

Gasoline prices averaged $0.27 per gallon cheaper in 2016 compared to 2015. Overall, 2016 had the lowest gasoline prices out of the last five years

17

Gasoline Price Trend: 2016 lowest in 5 years

Source: U.S. Energy Information Administration

Gasoline Price Trend

The NPD Group, Inc. | Proprietary and confidential

16.9M 17.0M 16.6M 16.2M

13.2M

10.4M 11.6M

12.8M 14.5M

15.6M 16.5M

17.5M 17.6M

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016

The number of new cars sold in 2016 unexpectedly set a record by outperforming 2015

18

New Car Sales Trend – sets new record!

Source: Auto Care Association Industry Indicators Report

New Car Sales Trend – Number of New Cars Sold

The NPD Group, Inc. | Proprietary and confidential

$13.7B $14.0B $14.6B $15.0B

+2.6% +4.0% +2.9%

CY 2013 CY 2014 CY 2015 CY 2016

The NPD Group / Retail Tracking Service

Dollar volume growth rate slowed from +4.0% in 2015 to +2.9% in 2016.

19

Total Industry: $15B, but slower growth rate

Total Industry Dollar Sales Trend

December caused a shift in annual results - from +2.2% (YTD November) to +2.9% for the total year

The NPD Group, Inc. | Proprietary and confidential

1.89B 1.86B 1.89B 1.92B

-1.6% +1.6% +1.8%

CY 2013 CY 2014 CY 2015 CY 2016

The NPD Group / Retail Tracking Service

While dollar growth rate slowed, unit/quart growth rate continues to improve

20

Total Industry Unit/Quart Sales improve

Total Industry Unit/Quart Sales

The NPD Group, Inc. | Proprietary and confidential

$6.75

$7.00

$7.25

$7.50

$7.75

$8.00

$8.25

$8.50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ave

rage

Ret

ail P

rice

2013

2014

2015

2016

Source: The NPD Group / Retail Tracking Service

Half of the months in 2016 had retail prices below prior year

21

2016 retail prices: seldom much above 2015

Average Price Trend – All Tracked Categories

The NPD Group, Inc. | Proprietary and confidential 22

Lower price alternatives: good enough

BATTERIES

The unit share of “good” grade batteries grew over four points in 2016 as consumers, incentivized by lower price points, chose to trade down

MOTOR OIL

The number of PCMO promotions grew 14% in 2016 compared to 2015. They grew 36% compared to 2013.

WIPER BLADES

While beam blades continue to steal share from conventional, the premium segment within beam lost four points to standard beam blades – a cheaper alternative for consumers

Additional Factors Influencing Average Price

The NPD Group, Inc. | Proprietary and confidential

2.6%

-1.6%

4.4% 4.0%

1.6% 2.3%

2.9%

1.8% 1.0%

Dollars Units ASP

2014 2015 2016

The acceleration of unit volume growth closely correlates to the lower increase in overall average selling price

23

Industry Performance: pricing helped units

The NPD Group / Retail Tracking Service

Total Industry Performance Trend

The NPD Group, Inc. | Proprietary and confidential

2.9% 1.9% 1.5%

4.4%

1.8%

4.2%

1.2% 0.4% 1.0%

-2.2%

-0.1%

3.9%

Grand Total Accessories &Appearance

Chemicals, Additives &Fluids

Maintenance & Repair

Dollars Units ASP

Accessories and appearance have highest unit growth correlating to biggest average price decline. Although, the maintenance & repair super-category posted an increase in average price, batteries, filters, plugs, and wipers posted a decline in average price.

24

Accessories and Appearance: highest unit lift

The NPD Group / Retail Tracking Service CY 2016 vs. Prior

Super-Category Performance

The NPD Group, Inc. | Proprietary and confidential

6.2%

4.3% 3.8%

6.6%

1.2% 1.6% 2.2%

4.9%

-1.9%

-0.3%

0.3% 1.4%

Batteries Motor Oil PerformanceChemicals

Wipers

2014 2015 2016

The four largest tracked categories have experienced a dramatic slow-down in average retail price increases

25

Lower price increases in biggest categories

The NPD Group / Retail Tracking Service

Average Price % Change – Top Dollar Categories

The NPD Group, Inc. | Proprietary and confidential

2.9%

6.6%

0.7% 3.4%

1.2% 2.9%

4.3% 2.2%

-1.5%

0.9%

4.3% 1.8%

8.7%

1.0% 3.1%

-0.2% 0.0% -0.7%

3.9% 1.4%

3.0%

26.3%

Grand Total Batteries Motor Oil Perf. Chem Wipers Filters Lighting App. Chem. Int. Acc Antifreeze Refrigerants

Dollars Units

Batteries ended the year as the top performing category in spite of a decline in the average selling price due to high increase in unit sales

26

Batteries – top performing category

The NPD Group / Retail Tracking Service CY 2016 vs. Prior

Top 10 Category Performance

The NPD Group, Inc. | Proprietary and confidential

2.9%

7.2%

1.8%

5.8%

1.0% 0.1%

Grand Total Total Private Label

Dollars Units ASP

Private label dollars grew over 2x faster than the market

27

Private label acceleration

The NPD Group / Retail Tracking Service CY 2016

Private Label Performance - % Change vs. YAG

The NPD Group, Inc. | Proprietary and confidential

-1.8% -0.8%

2.0% 2.9%

11.5% 11.4%

Motor Oil Performance Chemicals

2014 2015 2016

Private Label grew over 10% in two of the top categories. It also gained over a share point in each category. Private label share of Motor Oil is now 13.8%; Performance Chemicals 14.7%

28

Private Label gains in top categories

The NPD Group / Retail Tracking Service

Private Label Dollar % Change

The NPD Group, Inc. | Proprietary and confidential 29

Looking to 2017

Looking forward Outlook and forecast for 2017

The NPD Group, Inc. | Proprietary and confidential

-1.0%

-0.5%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

3.5%

4.0%

The miles driven growth rate, on a 12 month rolling basis, has slowed in recent months

30

Less growth in miles driven in recent months

Source: U.S. Department of Transportation

2017 Miles Driven Growth Forecast = 1.6%

Miles Driven Annual Growth Rate Trend

The NPD Group, Inc. | Proprietary and confidential

$6.75

$7.00

$7.25

$7.50

$7.75

$8.00

$8.25

$8.50

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Ave

rage

Ret

ail P

rice

CY 2013

CY 2014

CY 2015

CY 2016

CY 2017

Source: The NPD Group / Retail Tracking Service

Calendar year 2017 forecast assumes retail prices will grow/decline similar to how 2016 prices performed

31

2017 forecast: price trends much like 2016

Average Price Trend – All Tracked Categories

The NPD Group, Inc. | Proprietary and confidential

$3

.44

$3

.45

$3

.45

$3

.50

$3

.37

$3

.38

$3

.39

$3

.43

$3

.41

$3

.41

$3

.38

$3

.38

$2

.31

$2

.23

$2

.16

$2

.13

$2

.14

$2

.10

$2

.02

$1

.97

$2

.49

$2

.50

$2

.47

$2

.44

$1.75

$2.25

$2.75

$3.25

$3.75

$4.25

1 2 3 4

Pri

ce P

er G

allo

n

Week

2012 2013 2014 2015 2016 2017

Gasoline prices for the first four weeks of 2017 were 20% higher than the same four week period in 2016

32

Gasoline Prices: starting higher than 2016

Source: U.S. Energy Information Administration

Gasoline Prices: First 4 Weeks of 2017

The NPD Group, Inc. | Proprietary and confidential

2.6%

4.0%

2.9%

-1.9%

CY 2014 CU 2015 CY 2016 Forecast: 2017

The NPD Group / Retail Tracking Service / YTD 10.1.16

The 2017 forecast assumes retail pricing in 2017 moves similar to 2016

33

Retail dollar sales: decline in the forecast

2016 & 2017 Dollar Sales Forecast

The NPD Group, Inc. | Proprietary and confidential 34

Where do we go from here? Going outside for inspiration…

The NPD Group, Inc. | Proprietary and confidential 35

Headwinds Ahead: 2017 Forecast

Declining retail prices coupled with a slowdown in miles driven growth point to a decline in retail dollar sales in 2017

Bumps on the road ahead…

… but also much new to consider

The NPD Group, Inc. | Proprietary and confidential 36

Core automotive consumer is transforming

Average Annual Miles Driven by Age

The NPD Group, Inc. | Proprietary and confidential 37

The challenge: next Gen car ownership

Percentage of Consumers that Don’t Own a Car

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The difference with the next Gen

Sources: The NPD Group / 2017 Consumer Outlook Survey; Civic Science

The NPD Group, Inc. | Proprietary and confidential 39

More likely switch between DIY and DIFM

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More opportunities in DIY and DIFM

Source: The NPD Group / 2017 Consumer Outlook Survey

Plan to Increase DIY in 2017 Reasons for Increasing DIFM in 2017

The NPD Group, Inc. | Proprietary and confidential 41

Headwinds Ahead: 2017 Forecast Can automotive gain from looking at outside trends?

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The issue: proliferation of trends

MASS customization

NEED-BASED products

rule BREAKERS & TROUBLEMAKERS

RAVE reviews

consumer as CREATOR

changing PACE

Lifestyle TRENDS Beauty TRENDS

DELIVERY on-demand

immaculate to AUTHENTIC

Which consumer trends will reign around the world in 2017?

Retail rationalization

The NPD Group, Inc. | Proprietary and confidential 43

Distillery: “that one shot of pure whiskey”

“It isn't that hard to get a ton of corn into a gallon of sour mash,

but to get that gallon of sour mash down

to that one shot of pure whiskey…

So much of it is a hewing process... Really, it's that last couple of drops

you're distilling that makes all the difference.“

- Michael Stipes, R.E.M.

The NPD Group, Inc. | Proprietary and confidential 44

The Consumer Trends: Distilled

The what and The why

The Preferences

The NPD Group, Inc. | Proprietary and confidential

Personal Brand Personal Brand

45

The NPD Group, Inc. | Proprietary and confidential 46

Puma leapt into the top footwear ranks in 2016 due its continued collaboration with Rihanna.

Footwear Beauty

The person defined brand

Source: NPD Footwear Holiday 2016 Review

The NPD Group, Inc. | Proprietary and confidential 47

Desiring to have “a treat for myself”

76% Buy to “have a treat for myself”… of women age 18+ who shopped for fragrance in the past year

Source: The NPD Group, HOP Survey, January 2017

SheHeMe – Gender Neutral Options

Up +37% to +54%... in fragrance market that grew +1% In 2016

Designer and Artisanal Options

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

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Your vehicle defined brand

Luxury Cars Mid-Size Cars

How a Car Defines Your Personality?

SUV

Hatchbacks Muscle Cars Minivans

Coupes Pickup Trucks Sport Cars

Source: globalcarsbrands.com/how-a-car-defines-your-personality

“While many people think of a vehicle as a simple mode of transportation,

others share a lot of things in common with the car

they drive. It doesn’t matter whether you purchase a

Beetle or a red convertible, a pickup truck or a big

minivan, the vehicle you choose automatically states a lot about you as a person.

In fact, your vehicle is a reflection of who you are.”

The NPD Group, Inc. | Proprietary and confidential 49

Healthy-ish Lifestyle

The NPD Group, Inc. | Proprietary and confidential 50

Continued growth in sneakers

greater than +40%

Apparel

Double-digit growth in activewear sectors

Toys

Double-digit growth in outdoor and sports toys

Athletic Footwear

Handbags

Across NPD industries: ‘healthy’ choices

Source: The NPD Group / Tracking Service -. 2016

Fashion/Lifestyle Backpacks best

performing . Double-digit growth

Food

The NPD Group, Inc. | Proprietary and confidential 51

Automotive opting more ‘conscious living’

Industry disruptors: emergent sharing economy and changing technology

The NPD Group, Inc. | Proprietary and confidential 52

Diffusion of the scent experience

Scentiments Scented Mind: Topline Report, 2016 (consumers age 13+)

$240M

Scented Mind Fragrance Journey

Since 2014, niche segments added over:

Rollerballs Travel Sprays Hair

Home Scents Flankers Soap

Almost 90% of U.S. consumers use scented products, including home scent products like candles or air fresheners and/or body fragrance like perfume or body spray

Almost 90% of U.S. consumers use… scented products, including home scent products like candles or air fresheners and/or body fragrance like perfume or body spray

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

The NPD Group, Inc. | Proprietary and confidential 53

Increase in automotive air freshener buyers

15%

14%

12%

27%

28%

29%

19%

23%

30%

18%

17%

14%

20%

17%

16%

2014

2015

2016

18-24 25-34 35-44 45-54 55+

Product Buyer Category Age Distribution: Automotive Air Fresheners

Over 7 million more air freshener buyers... Growing from 9% (2014) of population to 12% (2016), automotive air fresheners added approximately 7.26 million more buyers. – expanding with 25-44 year olds.

Source: The NPD Group Automotive Market Summary Metrics Projected Product Buyers

U.S. Census Bureau 2013, *Based on U.S. population 18+ ~242MM

51%

59%

46%

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Past Rediscovered

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Classic brands enjoy double to triple digit growth

Sports

Toys

Games and Puzzles for children and adults

post double-digit growth

Pokémon was the top growth

property of the year in toys.

Star Wars retains rank as top property, based on dollar sales.

Past treasures rediscovered across ages

Source: The NPD Group / Tracking Service -. 2016

The NPD Group, Inc. | Proprietary and confidential 56

Past categories come to the fore Eyebrows

Liquid Eyeliner

Lip Color

Legendary categories post growth as high

as +74%

The return of masculine beauty?

The NPD Group, Inc. | Proprietary and confidential 57

Past appeals with Next Gen in auto…

Sources: The NPD Group / 2017 Consumer Outlook Survey; Civic Science

50% (Age 18-34)

More Likely… purchased current vehicle used

10yrs (Age 18-24)

Average Age of cars driven is 10.1 years

The NPD Group, Inc. | Proprietary and confidential 58

Appearance matters more… again

25 30

34 34 36 39 39 40

18-24 25-34 35-44 45-54

2014 2016% of makeup

users

Age of users

Women using 5+ makeup products in a typical day

Source: The NPD Group/ Makeup In-Depth Consumer Reports 2016, 2014

Appearance related beauty categories post highest growth as high as +51%

Source: The NPD Group/U.S. BeautyTrends®/ Total Measured Market

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Automotive online: more likely to opt for appearance/accessories

Source: The NPD Group / 2017 Consumer Outlook Survey

Online Purchase Consideration in 2017

The NPD Group, Inc. | Proprietary and confidential 60

Automotive appearance/accessories increasing buyers, especially among young

23% 25%

29%

2014 2015 2016

Product Buyers of Automotive Super-Category: Appearance/Accessories

Young 50% more likely to buy ... Over-indexing on buying appearance/accessories compared to Total, consumers age 18-24: 150%; 25-34: 139%; 35-44: 130%

Source: The NPD Group Automotive Market Summary Metrics Projected Product Buyers

U.S. Census Bureau 2013, *Based on U.S. population 18+ ~242MM

14.5 Million more buyers of Automotive Appearance/Accessories since 2014

The NPD Group, Inc. | Proprietary and confidential 61

From 2017, watch…

RESTRUCTURE

The NPD Group, Inc. | Proprietary and confidential 62

More opportunity to adapt with emerging

AND

Trends are Accelerating Converging …and Diverging

The NPD Group, Inc. | Proprietary and confidential

One Nation Different Preferences

63

More opportunity in tapping local needs

The NPD Group, Inc. | Proprietary and confidential

Next Gen Influence Other Gen Relevance

64

More opportunity in cross-gen synergies

The NPD Group, Inc. | Proprietary and confidential

Thank you Thank you

65