AutoNation Inc. (NYSE:AN) Q3 2020 Earnings Conference Call October 21, 2020 9:00 AM ET Company Participants Mike Jackson - Chairman, Chief Executive Officer Joe Lower - Executive Vice President, Chief Financial Officer Rob Quartaro - Vice President, Investor Relations Conference Call Participants Rajat Gupta - JP Morgan Rick Nelson - Stephens John Murphy - Bank of America Adam Jonas - Morgan Stanley Bret Jordan - Jefferies David Whiston - Morningstar Stephanie Benjamin - SunTrust Operator Ladies and gentle ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Emerging growth company ☐ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13107 AutoNation, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdicti ...

Financial Data and Key Metrics Changes - AutoNation reported an adjusted EPS from continuing operations of $1.41, an increase of 18% compared to the prior year [7][12] - Adjusted net income from continuing operations was $124 million, up from $108 million in Q2 2019 [12] - Same-store revenue decreased by $726 million or 14% year-over-year due to the pandemic [13] - Adjusted SG&A as a percentage of gross profit was 68.2%, a 330 basis point decrease compared to the previous year [14][15] Business Line Data and Key Metrics Changes - Same-store retail unit sales for new vehicles dropped 50% in April but recovered to only down 13% in June compared to last year [7][8] - Same-store used vehicle retail unit volume was down approximately 60% in April but increased by 14% in June [8] - Same-store variable PVRs increased by $585 or 16% year-over-year, while same-store used units declined only 3% [13] Market Data and Key Metrics Changes - New vehicle inventory was down 26,000 units or 41% compared to last year due to manufacturer plant closures [8] - The company had a total liquidity of approximately $1.6 billion at the end of June, up from $1.2 billion at the end of Q1 [16] Company Strategy and Development Direction - AutoNation plans to build at least 20 additional AutoNation USA stores over the next three years to capture a larger share of the used vehicle market [11] - The company is focusing on digital capabilities and has invested in tools like Customer 360 and equity mining to enhance customer engagement [9][56] - The strategy includes maintaining SG&A below 69% of gross profit in the long term [10][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of demand for personal mobility despite ongoing COVID-19 challenges [41][42] - The company anticipates that new vehicle margins will normalize as inventory levels recover [13] - Management highlighted the importance of digital engagement and the shift in consumer behavior towards online transactions [9][80] Other Important Information - The company did not repurchase any shares during the quarter due to uncertainties from the pandemic but has $139 million available for future repurchases [16] - AutoNation's cash balance at the end of the quarter was $257 million, reflecting strong liquidity management [16] Q&A Session Summary Question: Update on AutoNation USA stores and growth acceleration - Management confirmed that pilot stores are profitable and investment per store will be reduced by 20% to 25% due to refined processes [21][22] Question: M&A and online efforts with automakers - Management noted that while there are still challenges, larger partners like AutoNation can grow without the constraints previously anticipated by automakers [26][28] Question: SG&A opportunities with online sales - Management acknowledged that while they aim to remain below 69% SG&A, there is potential for further reductions as digital sales increase [30][31] Question: Performance in June and service operations - June was a strong month with SG&A below 68%, and customer care operations are gradually improving [35][38] Question: COVID-19 impact in hotspot markets - Management reported no significant change in customer behavior in hotspot markets, with continued demand for personal mobility [41][42] Question: Digital initiatives and sales penetration - Digital sales increased significantly during the pandemic, moving from the low 30s to the low 40s percentage of total sales [80] Question: F&I product penetration and digital sales - Management indicated that while in-store penetration of F&I products is strong, digital adoption is still a work in progress [82] Question: Strategy around AutoNation branded parts - AutoNation branded parts have been successful, particularly for reconditioning, while collision parts faced challenges due to reduced driving [86] Question: Competitive landscape in used vehicle market - Management believes that larger, trusted brands will capture more market share in the used vehicle space, consolidating around reputable players [88][89]

Financial Data and Key Metrics Changes - Adjusted EPS from continuing operations was reported at $0.91, down 4% year-over-year despite significant headwinds from the coronavirus [7] - Same-store revenue for Q1 2020 was $4.7 billion, a decrease of 5% compared to the prior year [8] - Total store revenue decreased by $350 million or 6%, and gross profit decreased by $36 million or 4% [13] - SG&A as a percentage of gross profit increased to 73.9%, reflecting significant SG&A deleveraging in March [14] - Non-vehicle interest expense decreased to $24 million compared to $28 million in Q1 2019 [15] Business Line Data and Key Metrics Changes - Same-store variable gross profit was $423 million, a decrease of 5% [8] - Same-store customer care gross profit was $389 million, a decrease of 1% compared to the year-ago period [8] - Same-store new and used retail unit sales were down approximately 20% in the last 10 days of April, improving from a 50% decline in the first 10 days of the month [9] Market Data and Key Metrics Changes - Retail unit sales in Florida, Texas, and California improved by the end of April, with declines of approximately 25%, 5%, and 30% respectively [9] - Custom repair orders were down approximately 50% at the beginning of April, improving to down roughly 30% by the end of the month [10] Company Strategy and Development Direction - The company is focused on adapting to the automotive recovery and enhancing digital capabilities as a permanent change in consumer behavior [21][64] - AutoNation is positioned to meet customer transportation needs safely and responsibly during the recovery [17] - The company plans to remain disciplined over costs and capital as markets reopen and business recovers [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledges the unpredictability of 2020 but believes the automotive recovery is underway [17] - The company is confident that 2021 will be better than 2020, despite not providing specific numbers for the year [27] - Management noted that the automotive industry is currently in a recession, with employment levels lower than during the 2008-2009 recession [27] Other Important Information - The company has over $1.4 billion in liquidity, including over $750 million in cash [11] - Non-cash impairment charges of $315 million after-tax were recorded due to COVID-19 impacts [12] - The company suspended share repurchases before the end of Q1, having previously purchased $80 million worth of shares [15] Q&A Session Summary Question: What is happening in the used car market? - Management noted that retail pricing in the used vehicle market has been stable, with only a 1% to 2% movement [19] Question: How do you see consumer behavior changing post-COVID? - Management believes digital capabilities will be essential moving forward, with no difference in profitability between digital and traditional sales channels [21] Question: Do you see a meaningful reduction in stores in the independent used market? - Management indicated a trend towards companies with strong digital capabilities and a uniform experience, suggesting consolidation in the market [24] Question: How is the company navigating inventory levels? - Management expressed satisfaction with their inventory position and noted that they are prepared for the resumption of production [30] Question: What are the dynamics behind the decision to move away from PPP loans? - Management explained that the lack of a clear path to forgiveness for PPP loans led to the decision to return the funds and manage the business rationally [39] Question: What is the status of the partnership with Vroom? - Management expressed satisfaction with the investment in Vroom but did not indicate any significant strategic changes [47] Question: What are the monthly savings from cost-cutting measures? - Management indicated potential monthly savings exceeding $40 million from various cost-cutting actions [50] Question: What improvements are being seen in sales and services? - Management reported that sales are down approximately 20% in May, with customer care down in the high 20s [55]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Emerging growth company ☐ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13107 AutoNation, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________ to ________ Commission File Number:1-13107 AUTONATION, INC. (Exact name of registrant as specified in its charter) Delaware 73-1105145 (State or other jur ...

AutoNation, Inc. (NYSE:AN) Q4 2019 Earnings Conference Call February 11, 2020 11:00 AM ET Company Participants Robert Quartaro - VP, IR Cheryl Miller - CEO and President Joe Lower - EVP and CFO Conference Call Participants Stephanie Benjamin - SunTrust John Murphy - Bank of America Merrill Lynch Rick Nelson - Stephens Rajat Gupta - JPMorgan Chris Bottiglieri - Wolfe Research Armintas Sinkevicius - Morgan Stanley Bret Jordan - Jefferies Derek Glynn - Consumer Edge Research Mike Ward - Benchmark David Whiston ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Emerging growth company ☐ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-13107 AutoNation, Inc. (Exact name of registrant as specified in its charter) (State or other juris ...

AutoNation, Inc. (NYSE:AN) Q3 2019 Earnings Conference Call October 29, 2019 11:00 AM ET Company Participants Robert Quartaro - Vice President of Investor Relations Cheryl Miller - Chief Executive Officer & President Chris Cade - Interim Chief Financial Officer Conference Call Participants Bret Jordan - Jefferies Derek Glynn - Consumer Edge Rick Nelson - Stephens Chris Bottiglieri - Wolfe Research Rajat Gupta - JPMorgan John Murphy - Bank of America Armintas Sinkevicius - Morgan Stanley David Whiston - Morn ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Emerging growth company ☐ FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 1-131107 AutoNation, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdict ...