Hi Team,

I hope you and your families are remaining safe in this troublesome time. I wanted to touch base with everyone in regards to how we are seeing things. At the moment we are monitoring sales leads, sales, service bookings and cancellations. Costa and I are meeting daily to review our position. Which is changing often by the hour, largely led by government policy and how consumers are reacting to the situation.

Last week we saw average to normal service bookings, with sales starting to decline at the back end of the week. From the information we have sourced from other countries revenue decline comes quickly and will be driven by school closures and non essential business shut downs, this is now in place in Victoria, NSW and the ACT. The economic challenge we face will be total lack of revenue, driven by customers simply not out and about spending. Car dealerships are a volume based business and a revenue reduction of 20% will lead to financial pressure and losses. Our challenge will be managing the business through this major downturn ensuring we stay in business and ramp up quickly when this all gets back to normal, ensuring as many jobs are preserved. In reality this situation will dictate significant job loss in Australia and the government has today taken action to assist and help individuals.

Costa and I are meeting today to formalise Motorama's position on how we navigate Motorama through this crisis. As the situation is changing so quickly, we have to be somewhat reactive, but will have to move swiftly as the situation changes. Our priority will be to minimise job losses and ride this storm together, reduced wages is a likely outcome with Costa and myself taking a 50% pay reduction, effective immediately.

At the moment, please avoid any non essential contact with others, observing space, social distance practices and increase hygiene. This needs to be taken seriously and will dramatically slow the spread of the virus and is what we all can do to help in these unprecedented times. We will distribute by close of business tomorrow our policy and procedures on service reception, sales reception and all customer interactions. This must be adhered too so we protect our team and customers and avoid spreading the virus.

We will be meeting with the senior team via digital video conference daily to ensure decisive, effective decision making, keeping everyone updated as things change.

Kind Regards.

Mark Woelders

Managing Director