LEADERSHIP LETTER FROM PRESIDENT AND CEO BRENT WINDOM

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1 LEADERSHIP LETTER FROM PRESIDENT AND CEO BRENT WINDOM Welcome to the inaugural issue of Auto Plus News & Views! We are launching this monthly e-newsletter as one of the several ways we plan to keep you informed of the developments in various parts of our company. As I ve said in previous communications, we plan to grow our company to the very top tier of the industry. This means that many changes will happen as a natural part of our growth. Our team members are at the center of our company s vision and mission. This people-centric culture at Auto Plus is what has helped us reach this point in our organization s history. So, in this newsletter, and upcoming issues, you will see a lot of stories about the people who make a difference on a daily basis for our company. You will be able to read about our use and commitment to technology, hear from company leadership, better understand our growth strategy and watch as our Auto Plus brand grows into the industry s best. Think of this newsletter as a way to interact with us. Send us your ideas for stories and interviews. We will be glad to follow up. We all look forward to feedback on these first issues and trust that we will work to continuously improve our communications based on your feedback. As always, thank you for your ongoing support and dedication to Auto Plus. Brent 1

2 LEADERSHIP TEAM INTERVIEW: RICHARD MATTIUSSI A DEEPER DIVE INTO THE NEW SUPPLY AGREEMENT FEATURES 1) What is your current role at Auto Plus? a. I currently serve as Vice President of Independent Sales at Auto Plus. In this role, I m responsible for the sales growth at the independent member level. This year, a primary focus of mine will be to introduce our new supply agreements to current and potentially new members. 2) Where were you before joining the Auto Plus team in January? a. I previously served as Director of Sales and Marketing at Merle s Automotive Supply in Tucson, Arizona. 3) How do the new agreements vary from one another? a. Each agreement reflects the member s needs. For example, a customer might require inventory support to become a leader in his or her marketplace, whereas a customer in the next state might need assistance with their competitive pricing. Another customer might not have the necessary operational tools. We offer to make the necessary investments in our members stores so that they have a stronger chance of profitability and gain market share. 4) Explain how this is different than a typical franchisee package. a. We really are leading the industry for the independent jobber. A franchisee package essentially instructs owners on how to operate their business. Our supply agreements give shop owners more entrepreneurial freedom. We make suggestions for how to best achieve success in their market, but decision making is still on the owner. Auto Plus consults and recommends, but we do not tell them what to do. 5) How regularly do the Auto Plus sales teams touch base with customers? a. Our sales team communicates with our members at least once or twice a month. Our larger customers might require more frequent contact. 2

3 LEADERSHIP TEAM INTERVIEW: RICHARD MATTIUSSI A DEEPER DIVE INTO THE NEW SUPPLY AGREEMENT FEATURES 6) Would you consider the Auto Plus technology platform as state-of-the-art? a. Absolutely. Our customers are provided with a great depth of information, from competitive pricing to inventory selection. We provide an essential inventory analysis report that ensures the jobber has the correct amount of inventory stocked. This report includes information like the number of vehicles in operation in the area and make and model. In addition to having the necessary inventory for their market, we also provide analysis on how to competitively price their products. With our e-pricing tool, our customers can be assured they are listing competitive prices for their marketspace to maximize margin. We make sure our jobbers have that crucial information to be a strong competitor in their marketspace. 7) How does Auto Plus collect so much data for its customers? a. Right now, we use proprietary competitive pricing data augmented with additional data services, such as Experian. All of this is aggregated into very frequent reports to customers. 8) Is there a long-term buy agreement for customers? a. Yes, in some cases, and we can also help facilitate the sale of their business. WHAT OUR CUSTOMERS THINK When you compare Auto Plus recommended retail pricing to the big box store s pricing, they are usually exactly the same. This allows us to get the biggest return on our investment and helps us know what we should be charging in our marketplace. Rich Echternacht, Good Guys Auto, Iowa City, IA What I like about the management team at Auto Plus is that they have an attitude of how can we help our customers. The approach they take with me, or any other store owner, is that there is a really sincere interest in my success, and they want to know what they can do to help me. They don t want to be your vendor, they want to be your partner. Mike Smith, Standard Auto Parts, Huntington, IN 3

4 AN INSIDER S LOOK AT INFOCAST This year, Auto Plus introduced InfoCast to Auto Service Plus program members across the country. InfoCast powered by Auto Plus is a digital signage program, which delivers content via a plug-and-play wireless device directly into Auto Service Plus customer waiting areas, and serves as a powerful sales-boosting tool. Auto Service Plus program members with wireless internet, compatible televisions and a commitment to purchase at least $5,000 a month or more from Auto Plus may participate in this exciting new program at no extra charge. Content is designed and developed by the Auto Plus marketing team and features preventive car maintenance tips, entertainment elements, promotions and manufacturer-specific product advertisements. InfoCast powered by Auto Plus is designed to prompt customers to ask for additional service work and specific products, all while educating them on how their preferred Auto Service Plus service center should be part of their vehicle s routine maintenance and entertaining them while their vehicles are being serviced. While content is frequently updated, Auto Service Plus program members may log in to a webbased portal to customize content for their business. Templates are easy to use and include customizable menu boards for them to display services and pricing. Once again, there is no extra charge for Auto Service Plus program members to participate in this exciting, technologically advanced digital signage program. 12/2/14 1:23 PM If interested, please contact your sales representative today. 4

5 A LETTER FROM MIKE BUZZARD ON OUR NEW BRAND Welcome to the first issue of our new monthly e-newsletter! Each month, we plan to update you on our new brand rollout. This month, I encourage you to visit our new Auto Plus website, There, you will see our new Auto Plus logo. We are in the final stages of the trademark process. Once that is final, you will see this website grow in major phases, with information portals for employees, customers, news media and industry experts. Our company name and brand is something we are extremely proud of because it represents the hard work of our dedicated team members and the passion we have to provide our customers with the best services and support. We know that you have questions about how and where we will apply our new logo, as well as our updated brand standards. As we move toward final legal approval, we will inform you of how to access our new brand standards. In the meantime, check out some of the frequently asked questions (FAQ) on our site. If you have any questions that are not answered there, feel free to contact me at [email protected]. We will do our best to answer your question. Our online FAQ will be updated regularly as more questions are received. Stay tuned for more exciting activity and new marketing support as our national brand rollout continues. Thank you for your continued support! Mike 5

6 12/2/14 1:23 PM OUR NEWEST ADDITION IN AVON, MA This section demonstrates how Auto Plus is making significant strides to become one of the industry s largest, most technologically advanced automotive aftermarket distributors. The newest 154,000-square-foot Auto Plus distribution center, located in Avon, MA, now offers regional customers the most efficient, state-of-the-art services. Customers can now expect a wide range of updated facility features, such as: A fully paperless process that eliminates potential error Improved order fill rates A less-than-48-hour time window between receiving incoming pops to the warehouse and availability for customers Overnight truck shipping Daily shuttle runs for special orders Onsite pickup at will-call counter FedEx or UPS parcel service for special order items The Avon warehouse celebrated its opening in early May with an open house for customers, jobbers, installers and manufacturers in the area. Many of the manufacturers in attendance talked to the customers about their products and programs. The event included facility tours, InfoCast and service center program demonstrations, and training on the new e-pricing and e-modeling tools. 6