uns presentation june 2010

Corporate Presentation to Investors

Uni-Select (TSX: UNS) June 2010

2

FORWARD-LOOKING STATEMENTS

This presentation may contain “forward-looking” information concerning Uni- Select’s objectives, projections, estimates, expectations or forecasts based on management’s best knowledge of current events, including statistics provided by third-party sources, and actions that Uni-Select may take in the future. The forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, these statements including, competition, consumers’ purchasing habits, car population trends, general economic conditions and Uni-Select’s financing capabilities. Refer to Uni-Select’s Annual Report, Management Information Circular, Annual Information Form and other filings on SEDAR for further information on risks and uncertainties that could cause actual results to differ materially from forward-looking statements. Management assumes no obligation to publicly update or revise these forward-looking statements as a result of new information, future events or other changes.

3

AGENDA

• June 16:– Industry update by Richard Roy– Value Creator by Denis Mathieu

• June 17:– 6:45 AM : Beck/Arnley presentation by Max Dull ( Nashville Tn)– 8:15AM: Beck/Arnley Warehouse tour– 12:30 PM: Warehouses/Major Accounts presentation by Gary

O’Connor ( Pakersburg OH)– 5:15 PM: Corporate stores presentation by Willi Alexander ( Milford ,

Ma) followed by warehouse tour– 6:15 PM: Consumer Auto Parts store tour ( Whitinsville, Ma)– 8:00 PM : Departure for Montreal

Industry Outlook

4

5

SALES OF NEW VEHICLES & TOTAL REGISTRATIONS

8000

9000

10000

11000

12000

13000

14000

15000

16000

17000

18000

2005 2006 2007 2008 2009226000

228000

230000

232000

234000

236000

238000

240000

242000

244000

new vehicules sales

total fleet

Source AAIA Factbook 2011

New vehicle sales

(in thousands)Total fleet

(in thousands) New vehicles sales:2009:Still depressed vehicles sales

2010:Q1 2010 vs Q1 2009: +20%Total Fleet:

2009:Total light vehicles decreased by 0.2%First time scappage rate higher than new vehicles sales

6

VEHICLES IN OPERATION

0,0

2,0

4,0

6,0

8,0

10,0

12,0

14,0

2005 2007 2009

cars

light trucks

Source AAIA Factbook 2011Lang Report April 2010

Years

2009:Average age of fleet:10,2 yearsDomestic cars: 11,9 yearsFNP: 8,9 years

2010 E: Total Fleet: 10.8 yearsDomestic cars: 12,3 yearsFNP: 9 years

7

FOREIGN NAMEPLATE

Foreign Nameplate New vehicles sales(in % of total sales)

4549

5356

0

10

20

30

40

50

60

2006 2007 2008 2009

Increasing population Foreign Nameplate:

56 % of all new vehicles sold in 2009

Source: Lang Aftermarket insight issue 215

8

FOREIGN NAMEPLATE

Foreign Nameplate5-10 year old

( in % of Fleet)

3033

41

51

0

10

20

30

40

50

60

2004 2008 2012* 2016*

FNp is poised to enter aftermarket sweet spot

Lang Aftermarket insight issue 215 April 2010

9

DEALERS

Dealerships' Share of Automotive Aftermarket Sales, 2000-2012

28,1%

33,0% 32,9%

30,7%31,3%

32,5%

28,8%29,6%

32,3%31,9%

30,1%

28,3% 28,1%

25,0%

26,5%

28,0%

29,5%

31,0%

32,5%

34,0%

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011* 2012*

2010: 18100 dealers ( 2800 closed in 2008)Transfer of maintenance to independent

service providerEvery dealership closing should provide $2M

in aftermarket parts & serviceDealers are targeting non warranty workSome of the closed dealers are converting to

used-car operations

Source: AAIA Factbook 2011

10

CONSUMER BEHAVIOR

By 2012 , Americans over 48 years will be the fastest growing age group Increased vehicles sophistication & growing Foreign Nameplate vehicle population

Do It For Me (DIFM) segment growing

11

CONSUMER BEHAVIOR

Automotive Aftermarket segmentation

$0

$20 000$40 000

$60 000$80 000

$100 000$120 000

$140 000$160 000

$180 000

2002 2007 2008 2009 2010* 2011* 2012*

Total DIFM Professional SalesDo-It-Yourself (DIY) Sales

CAGR (2007/2012):DIFM: 2.1%DIY: 1.4%


12Source: Consumer Reports June 2010

CONSUMER BEHAVIORCONSUMER BEHAVIOR

13

CONSUMER BEHAVIOR

14

CONSUMER BEHAVIOR

Source: J.D.Power & Associates 2009

Canadian Customer Commitment Index study

Overall Service Experience Satisfaction Index( based on 1000 point scale)

700 720 740 760 780 800 820 840 860 880

Independent garage/repair shop:Acura dealers

Industry AverageToyota dealersHonda dealersSuzuki dealers

Volkwagen dealersGM dealers

Ford dealersChrysler dealers

Kia dealersSubaru dealers

BMW dealersSaturn/SAAB dealers

Mercedes dealersNissan/Infiniti dealers

Mazda dealersVolvo dealers

15

CONSUMER BEHAVIOR

Miles Driven (12 Month Moving Average) vs Gas Prices

238 000

240 000

242 000

244 000

246 000

248 000

250 000

252 000

Dec

2005

J

an Feb

Mar

chAp

rilM

ayJu

ne July

Aug

Sept

Oct

Nov

Dec

2006

J

an Feb

Mar

chAp

rilM

ayJu

ne July

Aug

Sept

Oct

Nov

Dec

2007

J

an Feb

Mar

chAp

rilM

ayJu

ne July

Aug

Sept

Oct

Nov

Dec

2008

J

an Feb

Mar

chAp

rilM

ayJu

ne July

Aug

Sept

Oct

Nov

Dec

2009

J

an Feb

Mar

chAp

rilM

ayJu

ne July

Aug

Sept

Oct

Nov

Dec

2010

J

an Feb

Mar

ch

Mill

ions

of M

iles

$0,00

$0,50

$1,00

$1,50

$2,00

$2,50

$3,00

$3,50

$4,00

$4,50

Dolla

rs

Miles Driven Gas Prices

Gas prices stabilized

Year end prediction : increase of 0.3% in miles driven

Source AAIA industry indicators May 2010

16

CONSUMER BEHAVIOR

Hybrid:– Represent 0,67% of current Vehicles in operations– 1.4 Million Vehicles in operations– Maintenance needs:

• Same as conventional vehicles• + new parts in the future( invertors, batteries)

Cash for Clunkers:– 690,114 new vehicles sales

• Total light vehicles in operation: 241 Million

17

CONSUMER BEHAVIOR

Private Brands– Automotive Aftermarket:

• Product mainly sold under National brands

– Retail professional recommendation is key:• Some Consumers still perceive a lesser quality for private brands• Service provider gives warranty on labor and can not afford to

repair twice• eg: Some repairs have high labor cost ( Fuel pumps)

18

SIZE OF AUTOMOTIVE AFTERMARKET USA

0

25000

50000

75000

$ Millions DIFMDIY

DIFM 53478 53326 53018 55213 57197 59339DIY 28073 28020 27566 28269 29134 30076

2007 2008 2009 2010 E 2011E 2012E

Source: Factbook AAIA 2011DIY estimated at Warehouse pricing

19

TOOLS & EQUIPMENT

Tool and Equipment Aftermarket Sales(Billions of Dollars)

$9,04

$7,83

$8,88

$7,66

$9,03$8,70

$8,38$8,08

$9,22$9,55

$6,0

$6,5

$7,0

$7,5

$8,0

$8,5

$9,0

$9,5

$10,0

2002 2003 2004 2005 2006 2007 2008 2009 2010* 2011*

2009: first drop in sales in the past 7 years

Forecast: increases in years to come

AAIA Factbook 2011

20

CONCLUSION

Growth Rate of the U.S. Motor Vehicle Aftermarket(Percent Change from Previous Year)

3,9%3,5%

3,0%3,5%

0,7%

-2,4%

3,8%3,4% 3,6%

1,8%

0%

3,9%

5,6%

2,0%

5,6%4,5%

2,7% 3,1%

-3%

-2%

-1%

0%

1%

2%

3%

4%

5%

6%

2000

2001

2002

CAGR('97-0

2)

2002

2003

2004

2005

2006

2007

CAGR('02-0

7)

2007

2008

2009

2010

*

2011

*

2012

*CAGR('0

7-12)*

The aftermarket is growing


21

AFTERMARKET OUTLOOK FACTS

PositiveAverage age of vehicles Miles driven improvingDealership closingsNew vehicle sales declinedShift from DIY to DIFM

NegativeLow consumer spendingVehicles made betterGreater competition from OE dealers

Challenges:Current U.S. currency fluctuations affecting our American results ERP implementationHealth of supplier base

22

CURRENT FOOTPRINT

DC Stores

23

UNI-SELECT CUSTOMERS (CANADA)

24

UNI-SELECT CUSTOMERS (USA)

25

MAX DULL

• Vice president & General Manager • Over 30 years in Automotive• Dana• Clevite Engine Parts• Broad industry involvement

26

GARY O’CONNOR

• EXECUTIVE VICE PRESIDENT• 30 YEARS EXPERIENCE IN AUTOMOTIVE• UNI-SELECT CANADA• AFFINIA• DANA BRAKES AND CHASSIS• ECHLIN CANADA• WAGNER CANADA COOPER INDUSTRIES• FRAM

27

WILLI ALEXANDER

• Executive Vice President Corporate Stores• 30 Years experience in Automotive• Parts Depot• Chief Autoparts• Penzoil• AWDA Chairman

28

SOURCES

• AAIA Factbook 2011• AAIA industry indicators Monthly reports• AAIA News • AAIA SmartBrief• Aftermarket Business• AMN news• BB&T capital market Tony Cristello presentations• Denis Desrosiers Monthly reports• Experian automotive presentations• Lang marketing Monthly and Weekly reports• The Green Sheet

29

Thank you

Q1 2010 FINANCIALS

31

MAJOR VARIANCESSales:

– Effects of the variation of the CDN dollar had a negative impact of $39M– Organic growth represents 0.6%

Adjusted EBITDA:– Pressure on prices and changes in the product offering sold– Additional information systems expenses related to outsourcing of

additional support required during ERP implementation

March 2010

March2009

Sales 306,964 350,844

Adjusted EBITDA 15,815 20,709

Adjusted Earnings 8,385 8,994

Q1 2010 FINANCIAL HIGHLIGHTS

32

2010 FINANCIALS

IMPACT OF VARIOUS NON-RECURRING ITEMS ON THE 2010 NET EARNINGS

Q1 2010

2010 RESULTS

Effects of the exchange rate variation between CDN and US currency <$1.0M> <$2.3M> (1)

Additional expenses related to the ERP implementation $1.2M before taxes and $5.7M before taxes <$0.8M> <$4.0M>

Compensated by:

Less non controlling interest expenses vs 2009 $1.0M $3.0M

Less income tax expenses due to reorganization $1.0M $4.0M

$0.2M $0.7M

(1) Based on exchange rate of CDN$1.04 to US$1.00

33

PART OF OUR CULTURE !

3434

EVA VS STOCK PRICE

35

STRATEGIC PLAN 2008-2012

Execution

SystemsCulture

GrowthCapitalize on growth engines to maximize value for shareholders

Improve execution capabilities by optimizing processes and providing necessary tools and training

Foster the entrepreneurial spirit and allow employees to optimize their contribution to the company’s success

Provide more efficient and structured information systems and reporting tools

36

InvolvementInnovationExcellencePartnership

3737

VALUE CREATION AT UNI-SELECT

Entrepreneurial spiritCulture of executionDelegation of authority Reward performance

CULTURE

3838

Training– Operations

• Sales• Margin• Expenses• Assets

– Corporate• Capital structure • Interest expenses• Income tax expenses


ROA

ROE

CULTURE

39

NOPAT

Ops MarginEBIT

ROA

Revenue

Assets Turn Spread Leverage ROE

Avg. Net Assets372 730

Interest before taxes

Interest after taxes Debt cost

Debt

D/E

Equity

M/E10,32%

Spread w. ROA Minority

Minority Cost of Minority

15%

OPERATIONS

CORPORATE

EXAMPLE

4040

VALUE CREATION AT UNI-SÉLECT

MAAAPs: Acquisitions criteria:

Compatible and complimentary with existing networkCustomer driven, network comprising mainly loyal entrepreneursGood Know-how by Uni-Select of the target’s business processesProfessional management teamCompatibility with Uni-Select’s supplier baseAccretive day oneMultiple paid is less than Uni-Select

GROWTH

ROI 15% within 12 months

$100 Million / year

4141

VALUE CREATION AT UNI-SÉLECT

MAAAPs: Capture 5 types of synergies:

– Volume rebates– Distribution network– Marketing programs– Systems – Back office

We do not pay for our own synergies

GROWTH

4242


Organic growth:• Develop new distribution channel such as:

• E-Fulfillment

• Increase customer loyalty:• National accounts• Fleet business

• Leverage our warehouses:• Foreign Name Plate• Entry level Auto Extra

GROWTH

4343

Keep focus on independent jobbers:Coaching, training & benchmarkingPromote drop ship program

• Return on investment is unlimited

Reduce the asset base:Improve collection rate; DSOReduce excess inventory

• Improve inventory turnsExtend payment term with suppliers

• Vendor financing program up to 35M$Risk management program

Diversify products sourcingImprove gross marginLeverage our supplier relations


EXÉCUTION

4444

Integrated Management System:Benefits: 50% from managing revenues

Improve how we manage our prices:Velocity pricingSimpler pricing structureFlexibility to regional demands

Increase the visibility of our products:Reduce risk of loosing sales More accurate customer informationMaximize use of our distribution network

VALUE CREATION AT UNI-SELECTSYSTEMS

4545

Integrated Management SystemBenefits: 50% from reducing costs

Improve how we manage information:Central DatabaseLess maintenance issues Business model alignmentImplementation of shared services and expand EDI

Improve inventory management:More accurate inventory informationImplement more rigor in business processesHave better product availability for our customers

VALUE CREATION AT UNI-SÉLECTSYSTEMS

Investment $45M, $15M yearly savings by 2015

4646

IMPACTS

EXAMPLES

INITIATIVES IMPROVEMENT IMPACT on ROA in %

Inventory reduction 10 M$ 0.16%

Reduction on A/R 5 M$ 0.08%

Increase of A/P 10 M$ 0.07%

47

GOAL ROE: 15%