Q3, 2017

Investor Presentation

2

FORWARD-LOOKING STATEMENTS

2

Certain information contained in this presentation looks

forward in time and deals with other than historical or

current facts for AutoCanada Inc. (“AutoCanada” or the

“Company”). The use of any of the words “could”,

“expect”, “believe”, “will”, “projected”, “estimated” and

similar expressions and statements relating to matters

that are not historical facts are intended to identify

forward-looking information and are based on the

Company’s current belief or assumptions as to the

outcome and timing of such future events. In particular,

forward-looking statements in this presentation include,

but are not limited to, references to: the Company’s

general strategic plans and growth strategies; future

sales and revenue; future dealership acquisitions and

open point dealerships; the Company’s targets relating

to return on investment and financial ratios; dividend

payout policies; future intentions relating to financial

leverage; and the retail automotive industry. Although the

Company believes that the expectations reflected by the

forward-looking statements presented in this presentation

are reasonable, these statements have been based on

assumptions and factors concerning future events that may

prove to be inaccurate. Actual future results may differ

materially. The Company’s annual information form for the

year ended December 31, 2016 and other documents filed

with securities regulatory authorities (accessible through the

SEDAR website www.sedar.com) describe the risks, material

assumptions and other factors that could influence actual

results and which are incorporated herein by reference. The

Company disclaims any intention or obligation to update or

revise any forward-looking information, whether as a result of

new information, future events or otherwise.

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Multiple Touch Points on the Customer Journey

4

Why Invest in AutoCanada?Well Performing Sector

• Auto retail sector performed extremely well in 2016; on track for all-time record in 2017

• Sales of 1.6 million vehicles in first nine months of the year• Advances in technology, styling and safety expected to drive long-term new

vehicle sales

Key Part of the Economy• Annual spending of $143 billion in 2016 up 9.3% compared to 2014

• Greater than any other Canadian retail segment

Market Highly Fragmented; Consolidation Opportunities

• Canadian dealer market is fragmented with approximately 3,300 dealerships and 2,000 owners

• Significant proportion of dealers will be retiring in the next few years creating a “succession planning opportunity”1

• Industry shifting from “mom & pop” dealerships to larger dealer groups• Dealership owners are facing increasing facility capital requirements for OEM

branding programs

Public Ownership Evolving • OEM acceptance of publicly-listed companies is growing in Canada

(1) Source: PricewaterhouseCooper’s Automotive Trendsetter Report 2012

Canada’s only publicly-traded auto retailer

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58DEALERSHIPS

$2.9BTOTAL REVENUE

5

NEW VEHICLE SALES (UNITS) 40,032

USED VEHICLE SALES (UNITS) 19,561

OEMs 11

23BRANDS

SERVICE ORDERS 863,970

SERVICE BAYS 999

*Revenue, Sales and Service figures represent 2016 annual totals

Unparalleled Presence & Brands

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• AutoCanada aims to cluster our dealerships in major metropolitan centres

• Clusters allow for the sharing of Management resources along with the sharing of best practices

• Top performing staff are given further opportunities at other dealerships in the Cluster, promoting growth and development

Edmonton and area: 9 dealerships

Calgary and area: 9 dealerships

Grande Prairie: 5 dealerships

Winnipeg: 4 dealerships

Montreal: 4 dealerships

Ottawa: 3 dealerships

Prince George: 3 dealerships

Dealership ClustersEdmonton

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• Auto dealerships are resilient in adverse market conditions

• Well-established and accepted dealership model has existed for 50+ years in the Canadian marketplace

• OEMs committed to dealership success and profitability

• Four business segments provide diversified and stable revenue

• Dealerships have a variable cost structure, with the parts & service business covering most of the fixed costs of the entire dealership

• Parts & service business is a counter-cyclical and stable recurring revenue stream

24.3%

9.7%

41.4%

24.6%

2016Gross Profit

57.2%25.1%

13.2%

4.5%

2016Revenue

Resilient Business Model

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OPERATIONALEXCELLENCE

Enhance Dealership

Performance

COST CONTROL & BALANCE SHEET

STRENGTH

System-wide Improvements

Head Office Efficiencies

Manage Debt & Capital Expenditures

ACQUISITION & GROWTH STRATEGY

Increase Available Brands

Broaden Geographies

Offer All Price Points

Dealer Clusters in Key Markets

Strategic LeversO u r F o c u s

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• Multi-location model serves a diversified geographic customer and revenue base; cluster strategy enables other scalable benefits

• Decentralized operations with centralized administration and strategy

• Dealer Support Services empowers the very best of Dealer Principals to make key operating decisions within a financial and governance framework

• Dealership support based on brand team platforms better positioned to meet the needs of dealers and OEMs

• Uniform application of best practices: innovative ideas, benchmarking and data analytics

OPERATIONALEXCELLENCE

Enhance Dealership

Performance

10

ACQUISITION & GROWTH STRATEGY

Increase Available Brands

Broaden Geographies

Offer All Price Points

Dealer Clusters in Key Markets

• Ongoing assessment of acquisition and Open Point opportunities to diversify geographic reach and brand portfolio

• Building on OEM relationships to broaden reach of existing brands, add new ones

• Focus on immediately accretive acquisitions –15% to 20% pretax annual ROI

• Dedicated teams for pre-acquisition assessment, post-acquisition integration

• Integration focus includes continuous improvements in efficiencies, and deepening IT and analytical capabilities

• Look for flagship stores in metropolitan markets; dealership clusters to enhance scale opportunities

• Capital is allocated where it has the highest rate of return; priorities include new Open Point locations, dealership relocations and upgrades

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COST CONTROL & BALANCE SHEET

STRENGTH

System-wide Improvements

Head Office Efficiencies

Manage Debt & Capital Expenditures

• Aggressively manage our fixed and variable costs

• Centralized purchasing and shared resources strategy reduce costs for dealerships on everything from payroll to tires

• Business planning process includes expense control and vehicle delivery targets

• Inventory management based on on market information and consumer buying patterns

• Dealer Council provides forum to discuss issues and leverages successes from across the network

• Company pursuing national procurement initiatives

Q3 Update

13

Commentary

• Top line growth across the business

• New vehicles up 9.4% Used vehicles up 2.9% Collision/Repair up 9.7% Fin & Ins up 18.0%

• Grew total same store sales 2.9%

• Annualized dividend of $0.40/share

Q3 Financial Highlights

$753.2

$834.6

Revenue ($MM)+10.8%

2016 2017

$122.9

$138.0

Profit ($MM)+12.2%

2016 2017

$0.38

$0.50

Adj. EPS+31.6%

2016 2017

SAME STORE Q3 Revenue %Change Gross Profit %Change

New vehicles $433.7 4.1 $31.0 6.1

Used vehicles $168.3 (0.1) $11.2 (6.6)

Collision/Repair $89.2 (0.2) $46.9 4.9

Finance & Insurance $35.5 13.3 $32.6 14.1

14

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Q3 Acquisition: Planète Mazda• First Mazda dealership• Fourth Montreal dealership• Expected closing December 1

15

Sales Platform MixEuropean Import

General Motors FCA

Asian Import

21%

21%

17%

36%

FOCUS ON IMPROVING BALANCE

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Leadership Team

• Leads all aspects of AutoCanada, providing a vision for future growth and internal development

• Experienced Leader in the Automotive industry

• Former CEO of Chrysler Canada and EVP of Chrysler Group

• Accomplished finance professional• Oversees Cost Control & Balance Sheet

Strength• Managing all financial aspects of

AutoCanada while preparing the Company for further growth

• Promotor of Operational Excellence

• Experienced retail automotive professional

• Four years as Dealer Principal at St. James Volkswagen and Audi Winnipeg

• Spearheads our acquisition and growth strategy

• Experienced negotiator and legal strategist

• General Counsel for AutoCanada• Former Partner at Bryan & Company LLP

Steven J. LandryPresident & CEO

Mark WarsabaChief Operations Officer

Erin OorVP Corporate Development & Admin

Chris BurrowsChief Financial Officer

A Successful Track Record

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New Brands in Last 4 YearsO u r R e c o r d

New Locations in Last 4 YearsDuncan BC GM Prince Albert SK GM

Kelowna BC GM Saskatoon SK FCA, GM

Calgary AB FCA (3), Hyundai (2), Mitsubishi, Winnipeg MB Audi, Volkswagen, FCA, GM

Volkswagen, Nissan, Infiniti Guelph ON Hyundai, FCA

Edmonton AB Kia, Volkswagen, GM (3), FCA Ottawa ON Nissan (2), Infiniti

Grande Prairie AB Volkswagen Toronto ON FCA

North Battleford SK GM Montreal QC Mercedez-Benz, Smart, BMW (2),

MINI (2); Mazda

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19

59.0 74.7

CSI2015 2016

2,210 2,321

NEW VEHICLE SALES

2015 2016

Benchmark: 53.7 Benchmark: 69.4

87.2 91.7

SSI2015 2016

648 757

USED VEHICLE SALES

2015 2016

Benchmark: 82.1 Benchmark: 86.5

51.7 57.9

CSI2015 2016

1,576 1,579

NEW VEHICLE SALES

2015 2016

Benchmark: 53.7 Benchmark: 69.4

73.5 72.0

SSI2015 2016

526 576

USED VEHICLE SALES

2015 2016

Benchmark: 82.1 Benchmark: 86.5

Successful IntegrationBMW Laval and BMW Canbec were acquired in 2014

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Long-term Integration and Growth

2012 2013 2014 2015 2016

Dealership Profitability

Sherwood Park Chevrolet Sherwood Park Buick GMC

Sherwood Park Chevrolet – acquired April 30, 2012

Sherwood Park Buick GMC – acquired May 31, 2012

21 21

Audi Winnipeg

• Construction in progress

• Expected completion Q4 2017 or early 2018

Dealership Relocatio

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As at December 31, 2016 2015 % Change

New vehicles (units) 40,032 42,457 -5.7%

Used vehicles (units) 19,561 20,342 -3.8%

Revenue $2.89B $2.90B -0.4%

Adjusted net income $39.9M $40.3M -1.0%

Gross profit % 16.8% 16.8% 0%

Basic adjusted earnings per share $1.45 $1.64 -11.6%

Adjusted free cash flow $68.6M $38.8M 76.7%

2016 Snap Shot

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As at September 30, 2017 2016 % Change

New vehicles (units) 12,014 10,983 9.4%

Used vehicles (units) 5,118 4,972 2.9%

Revenue $834.6M $753.2M 10.8%

Adjusted net income $13.6M $10.3M 31.5%

Gross profit % 16.5% 16.3% 1.2%

Basic adjusted earnings per share $0.44 $(1.19) N/A

Adjusted free cash flow $23.3M $27.8M -16.1%

2017 Q3 Highlights

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Year to Date 2017 Snap Shot

Gross Profit by Department

$93,255

$37,128

$148,302

$90,663

$100,951

$36,175

$157,395

$98,898

New vehicles Used vehicles Parts, service and collision repair Finance, insurance and other

2016 2017

Additional Information

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• New vehicle sales drive high-margin related transactions, including resale of trade-ins, sale of third-party financing, service or insurance products and recurring service and repair business

• AutoCanada sold 40,032 new vehicles in 2016 (1)

NEW VEHICLE SALESRevenue & Units Sold Gross Profit & Gross Margin

Note:(1) 83% of new vehicle sales were made to retail customers, and the balance to lower margin fleet business

Revenue % Gross Margin %

YTD 2017 58.6% 7.2%

2016 57.2% 7.2%

$641 $683

$883

$1,342

$1,668 $1,653

$1,758

19.3 21.5

28.0

36.4

42.5

40.0

42.5

0

10

20

30

40

50

60

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

$2,000

2011 2012 2013 2014 2015 2016 LTM

New

Veh

icle

s So

ld (0

00

's)

Sale

s (C

$M

)

Sales (C$M) New Vehicles Sold (000's)

$48

$58

$76

$106

$122 $118

$126

7.5%

8.5% 8.6%

7.9%

7.3% 7.2% 7.2%

6%

7%

8%

9%

10%

11%

12%

13%

14%

15%

16%

$0

$20

$40

$60

$80

$100

$120

$140

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)

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• Used vehicle sales also drive related higher-margin transactions, including service contracts, reconditioning opportunities for parts and service, recurring parts and service business and financing commissions

• Trade-ins also help support new vehicle sales by reducing the consumers net cash cost of the new vehicle

• The sale of used vehicles are not tightly controlled by the OEM’s, allowing AutoCanada to take trade-ins and resell any vehicle brand

USED VEHICLE SALESREVENUE & UNITS SOLD GROSS PROFIT & GROSS MARGINRevenue % Gross Margin %

YTD 2017 23.3% 6.6%

2016 25.1% 6.5%

$206 $243

$301

$495

$705 $725

$699

8.7 9.5

10.4

15.7

20.3 19.6 19.0

0

5

10

15

20

25

30

35

40

$0

$100

$200

$300

$400

$500

$600

$700

$800

2011 2012 2013 2014 2015 2016 LTM

Use

d V

eh

icle

s So

ld (0

00

's)S

ale

s (C

$M

)

Sales (C$M) Used Vehicles Sold (000's)

$17 $16 $20

$30

$41

$47 $46

8.4%

6.7% 6.7%

6.0%5.8%

6.5% 6.6%

5%

7%

9%

11%

13%

15%

$0

$10

$20

$30

$40

$50

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)

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• Absorption rate of 87% in 2016(1)

• In 2016, AutoCanada completed 863,970 service orders on 928 service bays (year end)

• Parts & service activity is generally considered counter-cyclical

• Vehicle service under the manufacturer warranty must be completed at a franchised dealer providing a large captive market

• Independent repair shops are closing as highly specialized, capital intensive equipment and skilled labour is required to service increasingly complex vehicles

PARTS, SERVICE & COLLISION REPAIR

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REVENUE & SERVICE ORDERS GROSS PROFIT & GROSS MARGIN

Note: (1) Absorption rate is the extent to which the gross profit of the parts & service segment covers its own operations plus the fixed costs of operating the

dealerships (fixed salaries and benefits, administration costs, occupancy costs, insurance expense, utilities expense and non-floorplan interest expense; excludes all costs pertaining to head office)

% Revenue Gross Margin %

YTD 2017 13.4% 52.4%

2016 13.2% 52.6%

$110 $114

$142

$256

$388 $383 $402

305 309

364

602

848 864 864

0

200

400

600

800

1000

$0

$60

$120

$180

$240

$300

$360

$420

$480

2011 2012 2013 2014 2015 2016 LTM

Serv

ice O

rders (0

00

's)

Sale

s (C

$M

)

Sales (C$M) Service Orders (000's)

$58 $60

$74

$129

$194 $201 $210

52.2% 52.4%51.8%

50.3% 50.0%

52.6% 52.4%

40%

45%

50%

55%

60%

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

$200

$220

$240

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)

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• Every vehicle sale presents AutoCanada with an opportunity to increase profits through the sale of additional products such as third party financing or lease arrangements, extended warranties, service contracts and insurance products

• AutoCanada is paid a commission on the transaction and retains no financing risk

− High margin and excellent growth

• Represented 91.5% gross margin in 2016

FINANCE, INSURANCE & OTHERREVENUE & TOTAL VEHICLES SOLD GROSS PROFIT & GROSS MARGINRevenue % Gross Margin %

YTD 2017 4.6% 91.6%

2016 4.5% 91.5%

$51 $61

$83

$121

$143

$130 $139

28.0 31.0

38.4

52.1

62.8 59.6

61.5

10

20

30

40

50

60

70

80

90

$0

$25

$50

$75

$100

$125

$150

$175

2011 2012 2013 2014 2015 2016 LTM

To

tal V

eh

icle

s So

ld (0

00

's)S

ale

s (C

$M

)

Sales (C$M) Total Vehicles Sold (000's)

$46

$56 $76

$109

$131

$119

$128

90.7%

92.1%91.8%

89.9%

91.2%91.5% 91.6%

86%

90%

94%

98%

$0

$25

$50

$75

$100

$125

2011 2012 2013 2014 2015 2016 LTM

Gro

ss Marg

in (%

)

Gro

ss P

rofi

t (C

$M

)

Gross Profit (C$M)

Gross Margin (%)

Chris Burrows, CFOcburrows@autocan.ca