Key performance indicators

Description Performance Target Risk Factor Link*

Business Model Link

Buy Manage Sell

Financial

In a capital intensive business ROCE is a more important measure of performance than profitability alone, as low margin business returns low value to shareholders.

| Through a combination of operational and financial factors Group ROCE(3) _{has increased from}

9.9% in the previous year to 13.0%.

| All of the KPIs are targeted towards increasing ROCE.

| In the short term, as the business expands, ROCE will be impacted by the capital investment required. Over the longer term ROCE is targeted to exceed levels previously achieved.

1 2 3 4 5 6

Earnings per share (EPS)

EPS performance is a key measure of our current profitability. | EPS

(2) _{was 51.0p compared to 35.1p}

in the previous year.

| Underlying earnings rose from £46.8m last year to £67.9m this year. The weighted average number of shares was 133.2m in both years.

| Our strategy for profitable growth targets an increase in EPS in the short term alongside longer term return on equity.

1 2 3 4 5 6

Operational

The overall holding cost of vehicles (being the difference between the price at which we buy and sell our vehicles) needs to be minimised and utilisation needs to be maintained at a high level in order to maximise ROCE.

The age of the fleet needs to be managed to an optimal level in order to meet the needs of our customers and minimise running costs. Utilisation needs to be balanced against the need to have sufficient fleet available to satisfy our customers’ needs.

| The percentage of disposals through retail channels increased to 31% in the UK (2014 – 27%) and remained steady at 16% in Spain (2014 – 16%), enabling vehicles to be sold at improved residual values.

| The average fleet age in the UK was 21.1 months (2014 – 22.3 months) and 23.7 months in Spain (2014 – 24.3 months).

| Utilisation was 88% in the UK (2014 – 88%) and 91% (2014 – 92%) in Spain.

| We will aim to increase the proportion of vehicles disposed of through retail channels.

| We will seek to maintain our fleet at an age that offers our customers attractive vehicles coupled with low operational costs of running the fleet.

| The target for each segment is to maintain utilisation above 90%, balanced against the requirement to have the right range of vehicles available in branch for our customers.

1 2 3 4 6

Pricing

The revenue per vehicle achieved is a key contributor to ROCE. The hire rates we charge our customers need to reflect the levels of service and flexibility that our customers enjoy.

| Revenue per rented vehicle was stable in the UK (2014 – 1% increase) and reduced by 1% in Spain (2014 – 1% reduction). However, improved customer profiling is increasing overall in life returns.

| We will continue to maintain minimum hire rate thresholds, seeking to increase prices balanced against the full life return of our vehicles.

1 2

Customer service

In order to grow the business we must deliver the highest levels of customer service to support our current customers and to set us apart from our competitors as we continue to grow.

| The closing net promoter score in the UK was 45%. The equivalent score for Spain was 34%.

| Customer numbers in the UK grew by 7% (2014 – 21%) and in Spain by 22% (2014 – 20%).

| In both segments we will seek to continue to improve our Net Promoter Scores above industry leading standards.

| We will continue to grow customer numbers, with a continued focus on profitable SME business.

2

Staff retention

Attracting, retaining and developing the right people is key to the successful delivery of our strategy.

| Group staff turnover was 22% compared to 21% in the previous year.

| We aim to manage staff turnover below

Description Performance Target Risk Factor Link*

Business Model Link

Buy Manage Sell

Financial

In a capital intensive business ROCE is a more important measure of performance than profitability alone, as low margin business returns low value to shareholders.

| Through a combination of operational and financial factors Group ROCE(3) _{has increased from}

9.9% in the previous year to 13.0%.

| All of the KPIs are targeted towards increasing ROCE.

| In the short term, as the business expands, ROCE will be impacted by the capital investment required. Over the longer term ROCE is targeted to exceed levels previously achieved.

1 2 3 4 5 6

Earnings per share (EPS)

EPS performance is a key measure of our current profitability. | EPS

(2) _{was 51.0p compared to 35.1p}

in the previous year.

| Underlying earnings rose from £46.8m last year to £67.9m this year. The weighted average number of shares was 133.2m in both years.

| Our strategy for profitable growth targets an increase in EPS in the short term alongside longer term return on equity.

1 2 3 4 5 6

Operational

The overall holding cost of vehicles (being the difference between the price at which we buy and sell our vehicles) needs to be minimised and utilisation needs to be maintained at a high level in order to maximise ROCE.

The age of the fleet needs to be managed to an optimal level in order to meet the needs of our customers and minimise running costs. Utilisation needs to be balanced against the need to have sufficient fleet available to satisfy our customers’ needs.

| The percentage of disposals through retail channels increased to 31% in the UK (2014 – 27%) and remained steady at 16% in Spain (2014 – 16%), enabling vehicles to be sold at improved residual values.

| The average fleet age in the UK was 21.1 months (2014 – 22.3 months) and 23.7 months in Spain (2014 – 24.3 months).

| Utilisation was 88% in the UK (2014 – 88%) and 91% (2014 – 92%) in Spain.

| We will aim to increase the proportion of vehicles disposed of through retail channels.

| We will seek to maintain our fleet at an age that offers our customers attractive vehicles coupled with low operational costs of running the fleet.

| The target for each segment is to maintain utilisation above 90%, balanced against the requirement to have the right range of vehicles available in branch for our customers.

1 2 3 4 6

Pricing

The revenue per vehicle achieved is a key contributor to ROCE. The hire rates we charge our customers need to reflect the levels of service and flexibility that our customers enjoy.

| Revenue per rented vehicle was stable in the UK (2014 – 1% increase) and reduced by 1% in Spain (2014 – 1% reduction). However, improved customer profiling is increasing overall in life returns.

| We will continue to maintain minimum hire rate thresholds, seeking to increase prices balanced against the full life return of our vehicles.

1 2

Customer service

In order to grow the business we must deliver the highest levels of customer service to support our current customers and to set us apart from our competitors as we continue to grow.

| The closing net promoter score in the UK was 45%. The equivalent score for Spain was 34%.

| Customer numbers in the UK grew by 7% (2014 – 21%) and in Spain by 22% (2014 – 20%).

| In both segments we will seek to continue to improve our Net Promoter Scores above industry leading standards.

| We will continue to grow customer numbers, with a continued focus on profitable SME business.

2

Staff retention

Attracting, retaining and developing the right people is key to the successful delivery of our strategy.

| Group staff turnover was 22% compared to 21% in the previous year.

| We aim to manage staff turnover below

industry standards. 4

* See our principal risks and uncertainties on pages 34 and 35