Nationwide Accident Repair Services Plc

(NARS)

Interim Results Six months to 30 June 2012

Disclaimer
Any comments contained in this presentation are intended for distribution to professional and institutional investors only (i.e. persons who are authorised persons or exempted persons under FSMA 2000). The investment mentioned in this document may not be suitable for all recipients or be appropriate for their personal circumstances. The information in this document is believed to be correct but cannot be guaranteed. Opinions constitute our judgment as of this date and are subject to change without warning. This document is not intended as an offer or solicitation to buy or sell securities. Westhouse Securities Limited and its officers and employees may have positions in the securities mentioned herein. Past performance is not necessarily indicative of future performance and the value of investments may fall as well as rise and the income from them may fluctuate and is not guaranteed. Investors may not recover the amount invested. Some securities carry a higher degree of risk than others. The levels and basis of taxation can change. When we comment on AIM shares you should be aware that the rules for this market are less demanding than for those of the Official List of the London Stock Exchange and there is a risk of losing the money you have invested. Furthermore, the marketability of these shares is often restricted, you may have difficulty in selling your shares and there is often a big difference between the buying and selling price so that if you have to sell them immediately after purchase you may get back much less than you paid for them. If you are in any doubt, you should consult your investment adviser. The contents of this document have been prepared by, are the sole responsibility of, and have been issued by the Company. The contents of this document have not been approved by Westhouse Securities Limited for the purposes of section 21 of the FSMA 2000. Westhouse Securities Limited is authorised and regulated by the Financial Services Authority.

Contents
Page The Business Trading Highlights Financial Highlights The Car Market Key Drivers The LCV Market Key Drivers The Market Scale and Competition Segmental Performance Group Income Statement Group Cash Flow Group Balance Sheet Pension Deficit Closure Provision and Non-recurring items Future Developments Strategy for Shareholder Value 4 5 6 7 8 9 10 11, 12 13 14 15 16 17 18

The Business
Integrated Automotive Accident Repair Management Services
Accident Management for insurance companies and fleets
-24 hour call centre - First Notification of Loss (FNOL) -Deployment for repair (to NCRC and approved network) -Claims handling -Organising hire/ courtesy vehicles -Network management -Salvage disposal (Total loss)

Vehicle Body Repair for insurance, fleets and retail

-60 bodyshops across the UK -Vans for mobile repairs -UKs largest vehicle body repairer -42 sites with high top ovens for light commercial vehicles (LCVs) -2,530 courtesy vehicles -3 Fast Fit+ servicing and repairs

Motor Glass Repair and Replacement

-Vans for mobile repairs and replacement -Call centre claims handling -Common I.T. platform

Network Services

Nationwide Crash Repair Centres & Mobile Repair

Motorglass

Trading Highlights
For the six months to 30 June 2012 Robust performance in tough market conditions Strong growth of non-insurance funded revenues like-for-like fleet revenue up 29% like-for-like retail revenue up 72% Substantial sales funnel Gross margin increased and costs well controlled UK largest fixed site capacity and mobile services continue successful growth High levels of customer satisfaction Management team, organisational structure and financial reporting strengthened Strong cash position and dividend maintained
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Financial Highlights
For the six months to 30 June 2012 Fleet revenue growth of 29.1% and retail up 71.7% Market leading position maintained in insurance Gross margin increased to 36.3% (2011: 35.5%) Underlying PBT of 2.8m (2011: 3.5m), in line with expectations Underlying EPS of 5.0p (2011: 6.1p), in line with expectations Non-recurring items of (0.6)m reduced against 2011 FY Interim dividend maintained at 1.9p Pension deficit post IAS 19 (revised) supports NARS dividend policy Strong cash position of 8.0m (2011: 7.3m)

The Car Market Key Drivers

Huge and growing market (UK parc)
2002 Q4 25.8m 2007 Q4 28.0m 2012 Q2 28.7m
Source: Dft

Car Parc Q4 2002 - Q2 2012 29,000 28,000 27,000 26,000 25,000 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Car Miles Travelled 2002 - 2011

Car usage (miles travelled) declining

2002 242.7bn 2007 247.3bn 2011 240.7bn
Source: Dft

250 245 240 235 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Vehicle technology, road traffic management, weather, driver age, vehicle age/ residual, repair cost, policy excess Private Car Claims Frequency Q4 2002 - Q2 2012 Claims volume and frequency decline
2002 3.9m claims volume 2007 4.3m claims volume 2011 3.3m claims volume
Source: ABI

20% 18% 16% 14% 12%

20 20 1 Q 1 4 20 1 Q 2 2 0 Q 2 4 Q 2 0 Q 4 4 Q 2 0 Q 3 4 Q 2 0 Q 5 4 Q 2 0 Q 6 4 Q 2 0 Q 7 4 Q 2 0 Q 8 4 Q 2 0 Q 9 4 Q 2 1 Q 0 4 Q 2 20 20 20 20 20 20 20 20

The LCV Market Key Drivers

LCV Parc Q4 2002 - Q2 2012

No. of LCVs in UK (parc) increasing

2002 Q4 2.5m 2007 Q4 3.1m 2012 Q2 3.3m
Source: Dft

3,300 3,100 2,900 2,700 2,500 Dec-02 Dec-03

Dec-04 Dec-05

Dec-06 Dec-07

Dec-08 Dec-09 Dec-10

Dec-11

LCV usage (miles) upward trend

2002 34.0bn 2007 41.9bn 2011 41.4bn
Source: Dft

LCV Miles Travelled 2002 - 2011 44 42 40 38 36 34 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011

Brand image, productivity pressures, driver behaviour, speed, ownership High claims frequency stabilising
2002 1.1m claims volume 2007 1.2m claims volume 2011 0.8m claims volume
Source: ABI

Claims Frequency, excl. Cars & motorcycles Q4 2002 - Q2 2012 36% 31% 26% 21% 16%
0 Q 3 4 Q 2 0 Q 8 4 Q 2 0 Q 5 4 Q 2 0 Q 4 4 Q 2 0 Q 6 4 Q 2 0 Q 7 4 Q 2 0 Q 9 4 Q 2 1 Q 0 4 Q 2 0 Q 2 4 1 Q 1 4 20 20 20 20 20 20 20 20 20 20 20 1 Q 2 2 Q 2

The Market Scale and Competition

Vehicle Accident Repair
Top 30 Independent Bodyshop Groups Nationwide Just Car Clinic DWS ADR Apollo The rest Total Top 33 Franchised Dealer Bodyshop Groups Arnold Clark Pendragon Ford Retail Group Inchcape Lookers The rest Total Insurer Owned Bodyshops RBS Aviva 16 18 34 3,110 3,620 113.9 67.8 181.7 2,268.8 3,500.0 7.1 3.8 5.3 0.7 1.0 29 27 17 15 13 130 231 63.9 59.5 37.5 33.1 28.7 286.6 509.3 2.2 2.2 2.2 2.2 2.2 2.2 2.2 60 25 12 12 11 125 245 149.6 46.6 45.5 26.9 18.5 253.1 540.2 2.5 1.9 3.8 2.2 1.7 2.0 2.2 No.of sites Turnover 'm Ave. repair income per site m

Total value of repair jobs 3.5bn (NARS estimate)

Small bodyshop operators Estimated Total Market

Source: ABP

Glass
% Annual Replacement

Annual Replacement Rate for Windscreens through Life of Vehicle 12 10 8 6 4 2 0 0 2 4 6 8 10 12 14 16 18 Average Rate

UK market estimated at c.0.3bn Parc and rates of repair (1.4%) & replacement (4.6%) drive the market size Major competitors; Auto Glass and Auto Windscreen 70% market share
Years

Motorglass (NARS) market share of c.1%

Segmental Performance
CREATING THE LEADING INTEGRATED AUTOMOTIVE SUPPORT SERVICE GROUP

Network Services
9% of Group revenue
'm Fleet Insurance Retail External revenue Intercompany Total revenue Gross profit Margin % Deployments: NCRC Approved Ext. Income/ deployment H1 2012 H1 2011 Growth % 3.9 3,0 30.0% 3.6 5.0 (28.0)% 7.5 8.0 (6.3)% 12.5 9.7 20.0 17.7 2.0 2.2 26.9% 26.8% 33,858 6,787 40,645 1,100 26,923 8,574 35,497 937 FY 2011 6.8 8.8 15.6 22.0 37.6 3.9 24.9% 57,177 14,314 71,491 1,087 'm Fleet (lfl) Insurance (lfl) Retail (lfl) External revenue (lfl) Intercompany Total revenue (lfl) Gross profit Margin % No. of repairs:

NCRC
88% of Group revenue
H1 2012 H1 2011Growth % FY 2011 11.8 9.2 28.2% 20.2 56.3 64.0 (12.0)% 117.1 2.6 1.5 74.5% 3.0 70.7 74.7 (5.3)% 140.3 0.3 71.0 74.7 140.3 26.7 30.3 55.8 37.7% 36.6% 36.3% 112,262 113,616 (1.2)% 217,998

Motorglass
3% of Group revenue
'm Fleet Insurance Retail External revenue Intercompany Total revenue Gross profit Margin % No.of jobs: H1 2012 H1 2011 Growth % 1.4 1.0 40.0% 1.2 0.9 33.3% 0.1 2.6 2.0 36.8% 0.4 0.5 3.0 2.5 0.6 0.5 23.2% 23.5% 27,782 23,726 FY 2011 2.0 2.0 0.1 4.1 1.0 5.1 0.9 22.4% 47,773

14.5% 17.5%

Ext. Income/ claim Customer satisfaction

630 86.1%

657 84.3%

(4.1)%

644 85.9%

Ext. Income/ claim Customer satisfaction Revenue mix

92 89.5%

83 88.5%

10.8%

87 89.6%

Revenue mix

Revenue mix

H1 2012 Ave. no. of employees Property rental cost('m) Depreciation('m) Capex('m)

H1 2011 105 (0.7) (0.1) 103 (0.7) (0.1) -

FY 2011 (1.9)% 103 (1.4) (0.2) -

H1 2012 Ave. no. of technicians Property rental cost('m) Depreciation('m) Capex('m) 786 (26.6) (1.1) (0.4) 916 (33.0) (1.1) (2.4) 14.2% 19.4% 0.8% 912 (62.3) (2.2) (2.2)

H1 2012

FY 2011

Vehicle rental cost('m) Depreciation('m) Capex('m)

(1.3) (0.1) 0.0

(1.1) (0.0) (0.1)

(18.2)% (73.7)%

(2.3) (0.1) (0.2)

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Group Income Statement

For the six months to 30 June 2012
000 Insurance revenue lfl Fleet revenue lfl Retail revenue lfl Like-for-like revenue Revenue from closed sites Revenue Gross profit Gross margin % Overheads Operating profit before non-recurring items Net finance income Underlying profit before tax
PBT bridge
6,000 5,000 4,000 3,000 2,000 1,000 0

June 2012 61,052 17,019 2,644 80,715 80,715 29,279 36.3% (26,550) 2,729 26 2,755

Growth (12.7)% 29.1% 71.7% (4.7)% (12.9)% +0.8% +10.0% (19.2)% (21.1)%

June 2011 69,962 13,179 1,540 84,681 7,940 92,621 32,881 35.5% (29,503) 3,378 114 3,492

December 2011 127,889 29,083 3,060 160,032 13,354 173,386 60,634 35.0% (55,418) 5,216 289 5,505

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Group Income Statement (continued)

For the six months to 30 June 2012
000 June 2012 Growth June 2011 December 2011 5,505 (1,541) 3,964 9.2p (8,093) (2,588) 206 (2,382) (5.5)p

Underlying profit before tax Income tax expense Total income before non-recurring items Underlying earnings per share Non-recurring items Profit/ (loss) before tax Income tax (expense)/ credit Total comprehensive income for the period Basic earnings/ (loss) per share

2,755 (601) 2,154 5.0p (623) 2,132 (448) 1,684 3.9p

(21.1)%

3,492 (875) 2,617

(18.0)%

6.1p (514) 2,978 (772) 2,206 5.1p

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Group Cash Flow

For the six months to 30 June 2012
000 Profit/ (loss) profit before tax Net finance costs Depreciation Goodwill written off on sites (non-recurring item) (Profit)/ loss on sale of fixed assets Changes in working capital Movement in pension fund asset Share option scheme charge Outflow from pension obligations Outflow from provisions Net cash flow from operating activities Tax received/ (paid) Additions to property, plant and equipment Proceeds re disposal of property, plant & equipment Interest paid Dividends paid Net (Decrease)/ increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year June 2012 2,132 2 1,182 (19) (2,165) 944 (1,300) (977) (201) 556 (408) 22 (2) (33) 7,995 7,962
Underlying 2,755 2 1,182 (19) (2,544) 944 (1,300) 1,020 556 (408) 22 (2) 1,188 9,822 11,010 Non recurring (623) 379 (977) (1,221) (1,221) (1,827) (3,048)

December 2011 (2,588) 2,380 1,502 410 5,741 798 49 (2,600) 5,692 (746) (2,396) 319 (2,333) 536 7,459 7,995

Underlying 5,505 2,380 (61) 1,767 798 49 (2,600) 7,838 (746) (2,396) (2,333) 2,363 7,459 9,822

Non recurring (8,093) 1,502 471 3,974 (2,146) 319 (1,827) (1,827)

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Group Balance Sheet

As at 30 June 2012
000 Non-current assets Goodwill Property, plant & equipment Pension assets Current assets Inventories Trade and other receivables Current tax receivable Cash and cash equivalents Total assets Non-current liabilities Long-term provisions Deferred tax liabilities Current liabilities Short-term provisions Trade and other payables Current tax payable Total liabilities Net assets Share capital Capital redemption reserve Share premium account Revaluation reserve Retained earnings Total equity June 2012 6,266 10,576 11,747 2,383 27,869 119 7,962 66,922 2,339 2,956 1,037 32,876 39,208 27,714 5,400 1,209 11,104 8 9,993 27,714 June 2011 7,768 12,368 10,458 2,468 28,422 7,293 68,777 2,791 34,041 531 37,363 31,414 5,400 1,209 11,104 8 13,693 31,414 Dec 2011 6,266 11,353 11,391 2,459 28,113 692 7,995 68,269 2,621 2,525 1,353 35,740 42,239 26,030 5,400 1,209 11,104 8 8,309 26,030

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Pension Deficit
000 Market value of assets Present value of defined obligations IAS 19 (revised) pension deficit non corridor Deferred tax @ 24%; 25%; 25% IAS 19 (revised) net liability Corridor approach: reported net asset Impact of IAS 19 (revised) on consolidated reserves June 2012 59,106 (86,866) (27,760) 6,662 (21,098) 8,927 (30,025) June 2011 60,798 (73,444) (12,646) 3,162 (9,484) 7,844 (17,328) December 2011 57,156 (83,251) (26,095) 6,524 (19,571) 8,543 (28,114)

Approximately 1.5% (316k) of the IAS 19 (revised) net liability may be recognised in the company
balance sheet this reduces distributable reserves by 8.9m to c.5.1m, providing dividend cover of 2x Profit Impact: Expected return on assets IAS 19 (revised) Difference between corporate bond and discount rate Expected return on assets reported Interest on obligation Actuarial loss recognised in year Reported income statement charge IAS 19 (revised) income statement charge 1,269 739 2,008 (1,980) (972) (944) (711) 1,559 563 2,122 (2,009) (544) (431) (450) 3,173 1,147 4,320 (4,031) (1,087) (798) (858)

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Closure Provisions and Non-Recurring Items

June 2012 000 Provisions established for closed sites Provisions released for closed sites Loss on disposal of closed site fixed assets Closed site operating losses Site closure costs Redundancy and employee settlements Goodwill impaired Income statement non-recurring items Opening Site Closure Provision Income statement charge for current period closures Release of closure provision to income statement Cash flow impact *of which 767k relates to 2011 closed sites Closing Provisions balance Short-term provisions within the closing balance (933) 554 (379) (244) (623) (3,974) (933) 554 977* (3,376) (1,037) June 2011 000 (257) (257) (257) (514) (71) 71 December 2011 000 (4,324) (471) (800) (5,595) (996) (1,502) (8,093) (71) (4,324) 421 (3,974) (1,353)

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Future Developments
Continue to grow market share through: - Economies of scale/ flow
Effective cost control Outsourcing capability and strong CSI Technology Connections Prospecting and awareness Economies of flow Cross selling and expansion of service range Speed and capability to deliver Technology Cross selling Menu pricing Create new markets (ease of use) Integrated I.T. platform/ internet Speed and capability to deliver Marketing and brand awareness
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Grow Fleet volumes through:

Grow Retail volumes through:

Strategy for Shareholder Value

Market leader with existing offer Track record of successfully developing complimentary revenue streams in automotive services sector
Glass Mobile repairs Fleet Retail

Opportunities for strategic growth in associated fields

Mobility provision Parts Technology Management Disposals

Significant long term growth opportunities Strong cash position and cash backed income stream CREATING THE LEADING INTEGRATED AUTOMOTIVE SUPPORT SERVICE GROUP

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