Sonic Automotive – Investor Presentation February 2021 AUTOMOTIV (3 Updated February 17, 2021 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as ...

Financial Data and Key Metrics Changes - The company reported record fourth quarter revenues of $2.8 billion and an adjusted EPS of $1.50, up 54.6% from Q4 2019 [6] - Full year 2020 adjusted EPS was $3.85, up 45.3% from $2.65 in 2019 [6] - Adjusted SG&A expenses as a percentage of gross profit were 68.1% for Q4 2020, down 560 basis points from 73.7% in Q4 2019 [8] Business Line Data and Key Metrics Changes - Franchise dealership segment revenues for Q4 were $2.4 billion, down 1.2% year-over-year but up 11.5% sequentially from Q3 2020 [9] - EchoPark revenues reached an all-time record of $386.9 million in Q4, up 25.4% from the prior year, driven by a 17.1% increase in used vehicle unit sales volume [10] - For the full year 2020, EchoPark revenues were $1.4 billion, a 22.1% increase compared to 2019 [10] Market Data and Key Metrics Changes - The company noted that new vehicle sales momentum and elevated margins from Q4 2020 carried into 2021, with improvements in used vehicle demand observed in January and February [18] - Fixed operations gross was down roughly 4% in January compared to nearly 6% for Q4 2020, indicating a gradual recovery [20] Company Strategy and Development Direction - The company is focused on expanding its EchoPark model, with plans to open 25 new locations in 2021, aiming for over 40 points by year-end [22][27] - The strategy includes a capital-light approach for EchoPark, budgeting $75 million in CapEx for growth [30] - The company aims to establish a nationwide distribution network expected to retail over 0.5 million pre-owned vehicles annually by 2025, driving $14 billion in annual revenue [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and efficiency improvements, stating that they are better positioned for both near-term and long-term success [21] - The outlook for 2021 includes expectations for double-digit growth in new vehicle volume and low double-digit growth in used vehicle volume [25] - Management acknowledged potential impacts from weather-related store closures in Texas but expects a strong recovery as vaccine rollouts progress [24] Other Important Information - The company completed the acquisition of two pre-owned businesses in Maryland and New York, expanding its geographic footprint [11] - The delivery and buy center concept has shown promising results, with the first center in Greenville, SC, being profitable within six months of operation [12] Q&A Session Summary Question: Insights on EchoPark's performance and used vehicle margins - Management explained that margins were affected by an influx of lease returns and inventory management challenges, but they expect normalization moving forward [36][41] Question: 2021 earnings power and capital allocation - Management discussed the potential for earnings growth driven by cost reductions and increased F&I performance, while also noting the drag from opening new stores [42][46] Question: Digital retail strategy and consumer preferences - Management highlighted the importance of an omnichannel approach, with 90% of consumers starting their journey online and 40% taking action digitally [78] Question: Sourcing used vehicles and future strategies - Management indicated a shift towards sourcing more vehicles off the street, aiming for 25% to 30% of inventory from this channel in the future [88] Question: Integration of acquired businesses - Management stated that integrating acquired businesses is streamlined due to existing operational frameworks and training processes [93] Question: Impact of chip shortages on production - Management acknowledged potential future impacts from chip shortages but emphasized that shorter supply could lead to better margins and inventory management [100]

C Sonic Automotive – Investor Presentation October 2020 AUTOMOTIX Updated October 29, 2020 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as "m ...

Financial Data and Key Metrics Changes - The company reported the highest quarterly earnings in its history, with adjusted EPS of $1.29, up 95% from the same quarter last year [5] - Adjusted SG&A expenses as a percentage of gross profit were 69.1%, down 760 basis points from the prior year [7] Business Line Data and Key Metrics Changes - EchoPark revenues for the quarter were $385 million, representing 15% of total revenues, an increase of 23% year-over-year [6] - EchoPark achieved record retail sales volume of 15,127 units, up nearly 15% year-over-year [6] Market Data and Key Metrics Changes - The company experienced a significant increase in consumer demand for new and used vehicles, alongside an improving recovery rate in parts and service business [5] - The automotive industry is viewed as being at an inflection point, with expectations to capitalize on this momentum [10] Company Strategy and Development Direction - The company plans to continue expanding its EchoPark network, aiming for $14 billion in revenue by 2025 [6] - A hybrid approach between online and on-site shopping is being developed to enhance the customer experience [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of demand for both new and used cars, with expectations for improved inventory levels moving into 2021 [17] - The company is better prepared to handle potential future shutdowns due to lessons learned during the pandemic [25] Other Important Information - The company has hired new digital executives to enhance its online retailing capabilities [9] - The company is on track to open additional retail stores and delivery centers, with plans to open two more retail stores by the end of the year [6][20] Q&A Session Summary Question: Follow-up on EchoPark and profit pressures - Management acknowledged challenges due to inventory issues but highlighted record revenue and volume despite constraints [14] Question: Near-term demand trends and parts and services recovery - Management indicated that fixed operations are slowly recovering, with expectations for improved performance in the coming months [25] Question: EchoPark EBITDA expectations for Q4 and 2021 - Management expects Q4 EBITDA to improve and anticipates a strong growth trajectory for EchoPark moving into 2021 [27][28] Question: Human capital sourcing for new store openings - Management confirmed that new store managers are sourced internally, ensuring cultural consistency across locations [36][37] Question: Used vehicle inventory management strategy - Management reiterated the importance of maintaining a short-day supply for profitability, despite recent challenges [44][46]

Sonic Automotive, Inc. (NYSE:SAH) Q2 2020 Earnings Conference Call July 30, 2020 11:00 AM ET Company Participants David Smith - Chief Executive Officer Jeff Dyke - President Heath Byrd - Chief Financial Officer Conference Call Participants Rick Nelson - Stephens Rajat Gupta - JPMorgan Armintas Sinkevicius - Morgan Stanley Ethan Huntley - Jefferies John Murphy - Bank of America Operator Good morning. And welcome to the Sonic Automotive Second Quarter 2020 Earnings Conference Call. This conference call is bei ...

© Sonic Automotive – Investor Presentation July 2020 AUTOMOTIV Updated July 30, 2020 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as "may," " ...

Sonic Automotive, Inc. (NYSE:SAH) Q1 2020 Earnings Conference Call April 30, 2020 11:00 AM ET Company Participants David Smith - Chief Executive Officer Jeff Dyke - President Heath Byrd - CFO Tim Keen - Executive VP of Operations Conference Call Participants Rick Nelson - Stephens Rajat Gupta - JPMorgan Armintas Sinkevicius - Morgan Stanley John Murphy - Bank of America Michael Ward - Benchmark Bret Jordan - Jefferies Operator Good morning. And welcome to the Sonic Automotive First Quarter 2020 Earnings Con ...

Sonic Automotive, Inc. (NYSE:SAH) Q4 2019 Earnings Conference Call February 19, 2020 11:00 AM ET Company Participants | --- | --- | |------------------------------------------------------------|-------| | | | | David Smith – Chief Executive Officer | | | Jeff Dyke – President Heath Byrd – Chief Financial Officer | | | Conference Call Participants | | | Yarden Amsalem – Bank of America | | | Rick Nelson – Stephens | | | Rajat Gupta – JPMorgan | | | Mark Jordan – Jefferies | | Operator Good morning, and welco ...

Sonic Automotive – A Holistic Approach to Creating Shareholder Value AUTOMOTIV © February 19, 2020 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words su ...

Financial Data and Key Metrics Changes - Sonic Automotive reported a significant increase in diluted earnings per share from continuing operations, rising over 83% year-over-year to $0.66 per diluted share compared to $0.36 in the prior year quarter [6] - The company achieved an all-time quarterly record for F&I gross profit of $126.8 million, an increase of $28.8 million or 29.3% from the third quarter of 2018 [12] - Same store fixed operations gross increased by 7.3% during the third quarter of 2019, with SG&A to gross profit ratio improving by 350 basis points to 76.7% [13] Business Line Data and Key Metrics Changes - EchoPark's revenue for the third quarter was $312.2 million, up $126.3 million or 67.9% compared to the same quarter in 2018, driven by a 71.6% improvement in retail unit sales [8] - The core franchise stores also performed well, with a $10.3 million increase in pretax income, up 36.8% year-over-year, benefiting from higher gross profit from used vehicles and fixed operations [11] Market Data and Key Metrics Changes - EchoPark is expanding its footprint, with plans to open locations in major metro markets in California, Georgia, and Florida by the end of 2020, aiming for a nationwide presence [10] - The company is currently drawing customers from over 140 markets across the U.S. to its eight existing EchoPark locations [9] Company Strategy and Development Direction - Sonic Automotive is focusing on leveraging its proprietary technology and website to enhance customer experience and drive sales, indicating a shift towards a more technology-driven approach [9] - The company plans to ramp up its growth strategy with new EchoPark locations, emphasizing the importance of market data in site selection [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth potential of existing EchoPark stores, estimating they are at about 50% maturity with significant upside remaining [93] - The relationships with automakers are reportedly improving, with manufacturers increasingly valuing technology and customer experience [30][31] Other Important Information - The Board of Directors approved a quarterly cash dividend of $0.10 per share, payable on January 15, 2020 [14] - An impairment of approximately $1.1 million related to real estate was noted, which was not added back in the adjusted results [39] Q&A Session Summary Question: Inquiry about F&I performance and potential - Management indicated that warranty penetration is a significant driver of F&I performance, with potential to reach $2,000 per transaction [21][22] Question: Market selection for new EchoPark locations - The decision-making process for new markets is data-driven, focusing on areas with high potential for growth [25] Question: Relationship with automakers - Management noted that relationships with manufacturers are improving, with a focus on technology and efficiency rather than large facilities [30][31] Question: EchoPark's expense ratio and SG&A improvements - Management confirmed that SG&A is improving due to leverage from EchoPark stores compared to franchised stores [40][41] Question: Expected drag from new store openings - Management anticipates a $1 million drag before and after opening new stores, with expectations for profitability within six months for new locations [48][93] Question: Future funding for EchoPark growth - Management indicated that EchoPark will begin to support its own growth after the stores mature, with a timeline of about three to four years for self-funding [100]