Global Growth accelerates Manheim’s strong industry role in the U.S. and Canada is expanding around the world with a presence in England, Scotland, Belgium, Spain, Australia, New Zealand and Thailand. In early 2005, the company opened its first offices in China, located in Shanghai and Beijing, positioning Manheim to capitalize on the country’s emerging automotive industry. In recognition of the importance of global markets to its future, the company has appointed Manheim veterans Mike Langhorne as Senior Vice President of International Operations and Greg Gehman as Vice President of Export Services, both newly created positions. They will continue the company’s goal of seeking strategic partners throughout the world, as well as other entry points into new markets.

dealer sales are big business Manheim’s initiatives to increase dealer sales are a clear success, with dealer revenues increasing 55 percent since 2001 and comprising 48 percent of total revenues in 2005. This growth is attributable to increasing the percentage of registered dealer vehicles that are sold, as well as new business initiatives outside the auction lanes and value-added services to help customers grow their own businesses. Online Vehicle Exchange, for example, has been established as a separate unit that targets online wholesale transactions between dealers. Clearly designed with the busy dealer in mind, Online Vehicle Exchange handled more than 50,000 transactions in 2005. POINT was another important innovation in 2005. Developed to help improve dealer profitability, POINT simplifies the complex task of inventory management, giving dealers transaction-based market data that allows more informed buying and selling decisions while controlling, optimizing and streamlining inventories on a daily basis. Additionally, the utilization of Simulcast continued to increase, allowing dealers from around the globe to purchase vehicles from Manheim locations across the United States.

Operational Excellence Produces Results The Manheim team’s commitment to excellence in every facet of operations is evident in operating results for 2005. U.S. auctions turned in a strong performance, offsetting a decrease in available commercial vehicles (due to cyclical lease origination patterns) with aggressive actions to increase dealer volume, manage costs and embrace best practice processes. Dent Wizard and Manheim Automotive Financial Services also turned in strong results, while all international operations improved their year-over-year performance.

Excellence When It Counts Look no further than Manheim’s efforts in the aftermath of Hurricane Katrina to see excellence at work. Manheim auctions in New Orleans and Lafayette, Louisiana, and Hattiesburg, Mississippi, sustained damage from Hurricane Katrina, disrupting business and destroying Manheim property, as well as that of many Manheim employees. Once all affected employees were accounted for and their immediate needs addressed, an incredibly collaborative effort allowed the Lafayette auction to hold its first sale just 72 hours after the storm passed. Within two weeks, Hattiesburg Auto Auction in Mississippi had its first sale, and within just one month of the storm’s passing, the once-flooded Greater New Orleans Auto Auction hosted its first sale.