KAR Auction Services

Barclay’s 2010 Global Automotive Conference

November 17, 2010
Forward-Looking Statements

This presentation includes forward-looking statements as that term is

defined in the Private Securities Litigation Reform Act of 1995. Such
forward looking statements are subject to certain risks, trends, and
uncertainties that could cause actual results to differ materially from
those projected, expressed or implied by such forward-looking
statements. Many of these risk factors are outside of the company’s
control, and as such, they involve risks which are not currently known
to the company that could cause actual results to differ materially
from forecasted results. Factors that could cause or contribute to
such differences include those matters disclosed in the company’s
Securities and Exchange Commission filings. The forward-looking
statements in this document are made as of the date hereof and the
company does not undertake to update its forward-looking
statements.

2
Non-GAAP Financial Measures

EBITDA, Adjusted EBITDA, adjusted net income and adjusted net

income per share, and percentages or calculations using these
measures, as presented herein, are supplemental measures of the
company's performance that are not required by, or presented in
accordance with, generally accepted accounting principles in the
United States, or GAAP. They are not measurements of the company's
financial performance under GAAP and should not be considered as
substitutes for net income (loss) or any other performance measures
derived in accordance with GAAP or as substitutes for cash flow from
operating activities as measures of the company's liquidity. See
Appendix for additional information and a reconciliation of these non-
GAAP measures to GAAP net income (loss).

3
Leading Provider of Vehicle
Auction Services in North America

2009 Revenue: $1,730mm

2009 Adj. EBITDA: $426mm1
~3.3mm Vehicles Sold in 2009

2009 Revenue2: $1,177mm 2009 Revenue: $553mm

2009 Adj. EBITDA2: $335mm 2009 Adj. EBITDA: $147mm

 Top 2 whole car auction position  Top 2 salvage vehicle auction

position
 22% market share
 35% market share
 70 North American locations
 159 North American locations
 88 loan origination offices

1 Includes corporate charges of $56mm

2
4
Includes AFC revenue of $88mm and adjusted EBITDA of $49mm
Vehicle Remarketing Life Cycle

Vehicles in
Operation
270 Million
units

Used Vehicle
New Vehicle Registrations Transactions in Removed from
North America Operation 12 Million units
10-15 Million units
~40 Million
units

Salvage Auctions
3 - 4 Million units

Used Vehicle (Whole Car )

Dealer Trades
Auctions
11 Million units
9 Million units

Consumer -to-Consumer Wholesalers & Virtual Auctions

12 Million units 7 Million units

KAR’s Core
Markets

Source: Used vehicle (whole car) value per National Auto Auction Association. New vehicle registrations, vehicles in operation and vehicles removed from operation per
5
R.L. Polk & Co. Used vehicle transactions and consumer to consumer transactions per CNW Marketing for the U.S. and DesRosiers Automotive Consultants for Canada.
All other numbers based on company estimates. Estimates based on 2008 data; actual numbers may differ.
 Vehicle Flow – Whole Car and
Salvage Markets
Whole Car Consignors Whole Car Buyers
 Dealers
 Franchised Dealers
 OEMs and their Captive
 Independent Dealers
Finance Arms
 Wholesale Dealers
 Commercial Fleet Customers
 Financial Institutions
 Rental Car Companies

Seller Auction Fee Buyer

Auction Fee

Salvage Vehicle Consignors Salvage Buyers

 Insurance Companies  Dismantlers
 Charities  Rebuilders & Resellers
 Whole Car Providers
Value-Added  Recyclers
Ancillary Services

6
 Whole Car Auction Industry
Volume vs. SAAR

North America Whole Car Auction & SAAR Volumes (mm)

In Millions
Of Units
10.0
9.7
9.5 9.5 9.4 9.5 9.5 9.5
20
9.3
9.1

16

12

Dealers Leasing/Fleet/Repo Factory Other

0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

N.A. SAAR 19.0 18.7 18.6 18.3 18.4 18.6 18.2 17.8 14.9 11.9
(in Millions)

Source: National Auto Auction Association and KAR Auction Services, Inc. estimates 7
U.S. Salvage Industry Growth

Driven by Growth in Miles Driven… ..And Increasing Proportion of “Total Loss”

(mm) Insurance Claims

16.0

3.0 3.0 3.0 3.0

3.0 2.9 2.9 2.9 14.3%
2.9 14.0%
14.0
2.7 2.8 13.4% 13.5%
2.6 2.7 13.0%
12.9%
2.6
12.1%
2.5 2.4 2.5 12.0
2.4 11.3%
2.3
2.2 10.6%
2.2
2.1
2.0 10.0

8.5%
8.0
1.5

6.0

1.0

4.0

0.5
2.0

0.0 0.0
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009
Source: US DOT Federal Highway Administration, CCC Information Services. 8
Leader in Whole Car and
Salvage Auction Markets
Whole Car Market Share Salvage Market Share

Other Other
Copart
Manheim

ADESA IAAI

No other competitor holds more than 3% whole car market share or 10%
salvage market share
9
Source: Market share based on company estimates of vehicles sold as of 2009 year end. Manheim market share includes sales outside of North America.
Track Record of Market Share
Expansion
Whole Car Market Share Drivers of Growth

25%
22%  Successful sales focus in whole car
20% 18% business
15%
• Institutional
10%
• Dealer
5%
• e-Business
0%
2006 2009  Providing best venue for all remarketers

Salvage Market Share • Co-located facilities

• e-Business
40%
35%
33%  Selected strategic acquisitions,
32%
greenfields and relocations
24%

16%
• 21 sites acquired

8% • 9 greenfield developments

0% • 3 relocations
2006 2009 10
Source: Market share numbers are based on the number of vehicles sold by the Company in 2006 and 2009 and Company estimates of the number of
vehicles sold by competitors during the same periods. Actual numbers may differ.
Differentiated Physical and Internet
Presence in Whole Car and Salvage

 Only company with significant presence in both internet and physical and
whole car and salvage markets

 KAR’s unique presence in whole car and salvage markets affords customers
channel optimization opportunities

 Internet, physical and hybrid model optimizes results for customers

 The majority of IAAI salvage vehicles receive internet bids with approximately half of
salvage vehicles sold to online buyers
 >73% of salvage buyers, when asked, prefer hybrid auction model vs. on-line only

Unique presence maximizes proceeds to customer at auction

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 Established Relationships with
Vehicle Providers & Buyers
 The Company does business with major suppliers of whole car and salvage vehicles
 Average relationship of over ten years with top ten vehicle suppliers
 Largest customer less than 4% of 2009 consolidated revenue
 Over 150,000 registered whole car and salvage buyers from over 100 countries

Vehicle
Manufacturers & Rental Insurance Other Salvage
Banks Finance Companies Car Companies Companies Providers

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Strong Margins and Efficient
Business Model
Whole Car Adj. EBITDA Margin Key Drivers of Improvement
30.0% 26.3%
24.5%  Implementation of best practices at
25.0%
whole car (PRIDE)
20.0%
15.0%  Integration of ADESA’s and IAAI’s
10.0% salvage operations
5.0%
 Co-location of selected whole car and
0.0%
salvage sites
2007 2009
 Leverage AFC’s services at ADESA and
IAAI
Salvage Adj. EBITDA Margin
 Continuous operational improvements
30.0%
26.5% and restructuring / cost reduction
25.0% 23.6% programs
20.0%
 Economies of scale – operating leverage
15.0%
as volumes increase
10.0%

5.0%
 Volume and fee increases and
0.0%
operational efficiency gains at acquired
2007 2009 facilities
 e-Business expansion / volume gains
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Consolidated Financial Highlights

Revenue Gross Profit

*
$2,000
$1,589 $1,771 $1,730 $698 * $718 $732
$1,500 $1,374 $900
$1,000 $600
$624
$500 $300
43.9% 40.6% 42.3% 45.5%
($mm)

($mm)
$0 $0
39.2% 44.2%
2007 2008 2009 YTD**
2010
2007 2008 2009 YTD**
2010

Adjusted EBITDA Adjusted Net Income Per Share

$1.00
$0.85
$500
$396* $394 $426 $372 $0.75 $0.61
$250 $0.50
($mm)

$0.25
$0
$0.00
2007 2008 2009 YTD**
2010 YTD** 2009 YTD** 2010

* Represents pro forma results for the year ended December 31, 2007 so as to illustrate the estimated effects
of the 2007 transactions as if they had occurred on January 1, 2007. 14
** YTD through September 30
Significant Cash Flow Generation
(US$ in millions)

Operating Cash Flow Less Capital Expenditures

$250

$200
$185
$150

$100
$95
$50

$0

2008 2009
Annual Cash Flow less
Capx as a % of revenues 5.4% 10.7%
15
September 30, 2010 Capital Structure
(US$ in millions)

9/30/2010 Maturity
Available Cash $322.2

Term Loan Facilities 1,219.6 2013

Floating Rate Notes 150.0 2014

Fixed Rate Notes (8.75%) 450.0 2014

Senior Sub. Notes (10%) 199.4 2015

Total Consolidated Debt $2,019.0

Net Debt $1,696.8

Net Debt /Adjusted EBITDA 3.6X

Focused Commitment to Deleveraging 16

KAR’s Diverse Business Model –
Adjusted EBITDA Contribution by Segment*

**
$396M $394M $426M $372M
100% 11% 10% 14%
22%
80% 30% 30%
25% 34%
60%
40%
53% 59% 60% 52%
20%
0%
2007 2008 2009 YTD*
2010
ADESA IAAI AFC

*Percentage calculations exclude holding company . YTD through September 30, 2010 17
** Represents pro forma results for the year ended December 31, 2007 so as to illustrate the estimated effects
of the 2007 transactions as if they had occurred on January 1, 2007.
 Q3 2010 Highlights

• Revenue & Earnings Growth

• Proposed $150M Debt Paydown

• PAG 6-Site Acquisition

• Lease Origination Levels Rebound

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Appendix

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Non-GAAP Financial Measures

EBITDA is defined as net income (loss), plus interest expense net of interest income, income tax provision (benefit),
depreciation and amortization. Adjusted EBITDA is EBITDA adjusted for the items of income and expense and
expected incremental revenue and cost savings as described in the company's senior secured credit agreement
covenant calculations. Management believes that the inclusion of supplementary adjustments to EBITDA applied in
presenting Adjusted EBITDA is appropriate to provide additional information to investors about one of the principal
internal measures of performance used by the company’s creditors. In addition, management uses Adjusted EBITDA to
evaluate the company’s performance and to evaluate results relative to incentive compensation targets.

The revaluation of certain assets of the company, and resultant increase in depreciation and amortization expense
which resulted from the 2007 merger, as well as stock-based compensation expense incurred in connection with
service and exit options tied to the 2007 merger, have had a continuing effect on the company’s reported results. Non-
GAAP measures of adjusted net income and adjusted net income per share, in the opinion of the company, provide
comparability to other companies that may have not incurred these types of noncash expenses. In addition, net income
and net income per share for the year ended December 31, 2008 have been adjusted to exclude the effect of the
$164.4 million charge for the impairment of goodwill and other intangibles at AFC. Likewise, net income and net
income per share for the nine months ended September 30, 2010 have been adjusted to exclude the loss on
extinguishment of debt.

EBITDA, Adjusted EBITDA, adjusted net income and adjusted net income per share have limitations as analytical tools,
and should not be considered in isolation, or as a substitute for analysis of the results as reported under GAAP. These
measures may not be comparable to similarly titled measures reported by other companies.

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2007 Pro Forma Results Reconciliation

Consolidated Pro
KAR Auction Services ADESA IAAI Forma
January 1, 2007 to January 1, 2007 January 1, 2007 Pro Forma January 1, 2007 to
December 31, 2007 to April 19, 2007 to April 19, 2007 Adjustments December 31, 2007
Revenues
ADESA $ 677.7 $ 325.4 $ - $ (37.6) $ 965.5
IAAI 330.1 - 114.8 37.6 482.5
AFC 95.0 45.9 - - 140.9
$ 1,102.8 $ 371.3 $ 114.8 $ - $ 1,588.9

Cost of services
ADESA $ 386.1 $ 177.7 $ - $ (22.3) $ 541.5
IAAI 219.0 - 76.5 22.3 317.8
AFC 22.3 9.6 - - 31.9
$ 627.4 $ 187.3 $ 76.5 $ - $ 891.2

Gross profit
ADESA $ 291.6 $ 147.7 $ - $ (15.3) $ 424.0
IAAI 111.1 - 38.3 15.3 164.7
AFC 72.7 36.3 - - 109.0
$ 475.4 $ 184.0 $ 38.3 $ - $ 697.7

Note: The Company was incorporated on November 9, 2006, but had no operations until the consummation of the 2007 Transactions
on April 20, 2007. The pro forma adjustments noted above are presented to combine the financial results of ADESA Impact and IAAI.

21
2007 Adjusted EBITDA Reconciliation

Year Ended December 31, 2007

(Dollars in millions) ADESA IAAI AFC Corporate Consolidated
Net Income (Loss) $37.0 $2.2 $25.9 $(103.4) $(38.3)
Add Back: ADESA 2007 Net Income 39.4 – 16.2 (28.7) 26.9
Add Back: ADESA 2007 Discontinued Ops 0.1 – – – 0.1
Add back: IAAI 2007 Net Loss – (0.4) – – (0.4)
Income (Loss) from Continuing Operations $76.5 $1.8 $42.1 $(132.1) $(11.7)

Add Back:
Income Taxes $30.0 $2.4 $17.2 $(59.6) $(10.0)
ADESA 2007 Income Taxes 22.2 – 10.5 (7.8) 24.9
IAAI 2007 Income Taxes – 1.5 – – 1.5
Interest Expense, Net of Interest Income (0.4) (0.3) – 156.7 156.0
ADESA 2007 Interest Expense, Net of Interest Income (0.1) – – 6.4 6.3
IAAI 2007 Interest Expense, Net of Interest Income – 9.9 – – 9.9
Depreciation and Amortization 64.6 40.0 17.8 4.2 126.6
ADESA 2007 Depreciation and Amortization 14.7 – 0.9 0.3 15.9
IAAI 2007 Depreciation and Amortization – 7.9 – – 7.9
Intercompany 20.2 22.2 1.1 (43.5) –
ADESA 2007 Intercompany (4.6) 11.1 2.2 (8.7) –
EBITDA $223.1 $96.5 $91.8 $(84.1) $327.3
Adjustments 13.4 17.3 5.5 32.0 68.2
Adjusted EBITDA $236.5 $113.8 $97.3 $(52.1) $395.5

Revenue
ADESA - January 1 - April 19, 2007 $287.8 $37.6 $45.9 $– $371.3
IAAI - January 1 - April 19, 2007 – 114.8 – – 114.8
KAR - April 20 - December 31, 2007 677.7 330.1 95.0 – 1,102.8
Total Revenue $965.5 $482.5 $140.9 – $1,588.9
Adjusted EBITDA Margin % 24.5% 23.6% 69.1% 24.9%

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2008 Adjusted EBITDA Reconciliation

Year Ended December 31, 2008

(Dollars in millions) ADESA IAAI AFC Corporate Consolidated

Net Income (Loss) $52.5 $9.2 $(151.3) $(126.6) $(216.2)

Add back:

Income Taxes 33.7 6.3 10.2 (81.6) (31.4)

Interest Expense, Net of Interest Income – 0.2 – 213.2 213.4

Depreciation and Amortization 93.2 61.6 25.3 2.7 182.8

Intercompany 44.4 38.4 (0.7) (82.1) –

EBITDA $223.8 $115.7 $(116.5) $(74.4) $148.6

Adjustments 41.3 17.5 166.9 19.2 244.9

Adjusted EBITDA $265.1 $133.2 $50.4 $(55.2) $393.5

Revenue $1,123.4 $550.3 $97.7 $– $1,771.4

Adjusted EBITDA Margin % 23.6% 24.2% 51.6% 22.2%

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2009 Adjusted EBITDA Reconciliation

Year Ended December 31, 2009

(Dollars in millions) ADESA IAAI AFC Corporate Consolidated

Net Income (Loss) $94.4 $25.8 $19.1 $(116.1) $23.2

Add back:

Income Taxes 56.0 16.2 8.4 (69.5) 11.1

Interest Expense, Net of Interest Income 0.5 1.4 – 170.3 172.2

Depreciation and Amortization 88.4 58.3 24.7 1.0 172.4

Intercompany 28.9 36.2 (6.8) (58.3) –

EBITDA $268.2 $137.9 $45.4 $(72.6) $378.9

Adjustments 18.1 8.7 3.8 16.4 47.0

Adjusted EBITDA $286.3 $146.6 $49.2 $(56.2) $425.9

Revenue $1,088.5 $553.1 $88.0 $– $1,729.6

Adjusted EBITDA Margin % 26.3% 26.5% 55.9% 24.6%

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YTD 2010 Adjusted EBITDA Reconciliation

Nine Months Ended September 30, 2010

(Dollars in millions) ADESA IAAI AFC Corporate Consolidated

Net Income (Loss) $72.0 $33.3 $27.2 $(70.2) $62.3

Add back:

Income Taxes 38.7 21.5 17.4 (47.9) 29.7

Interest Expense, Net of Interest Income 0.8 1.7 5.1 98.7 106.3

Depreciation and Amortization 64.6 43.7 18.6 0.4 127.3

Intercompany 31.0 28.6 (8.5) (51.1) –

EBITDA $207.1 $128.8 $59.8 $(70.1) $325.6

Adjustments 11.3 11.8 (0.7) 24.2 46.6

Adjusted EBITDA $218.4 $140.6 $59.1 $(45.9) $372.2

Revenue $821.1 $458.4 $94.2 $– $1,373.7

Adjusted EBITDA Margin % 26.6% 30.7% 62.7% 27.1%

25
LTM Adjusted EBITDA Reconciliation

Twelve Months
Three Months Ended Ended
December 31, March 31, June 30, September 30, September 30,
2009 2010 2010 2010 2010
(Dollars in millions) (Unaudited)

Net income
$5.3 $8.1 $28.6 $25.6 $67.6
Add back:

Income taxes
0.1 (1.3) 19.9 11.1 29.8
Interest expense, net of interest income
39.7 34.9 35.9 35.5 146.0
Depreciation and amortization
42.5 43.3 41.8 42.2 169.8
EBITDA
87.6 85.0 126.2 114.4 413.2
Nonrecurring charges
2.0 21.1 3.0 2.8 28.9
Noncash charges
(1.3) 12.6 3.6 5.8 20.7
Advisory services
11.4 -- -- -- 11.4
AFC interest expense
-- (1.4) (1.8) (1.9) (5.1)
Accounting change
-- 2.8 -- -- 2.8
Adjusted EBITDA
$99.7 $120.1 $131.0 $121.1 $471.9

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Adjusted Net Income Per
Share Reconciliation

Nine Months Ended

September 30,
(In millions, except per share amounts) 2010 2009
Net income $ 62.3 $ 17.9
Loss on extinguishment of debt, net of tax (1) 15.7 -
Stepped up depreciation and amortization expense, net of tax (2) 30.1 34.7
Stock-based compensation, net of tax (3) 7.6 13.0
Adjusted net income $ 115.7 $ 65.6

Net income per share - diluted $ 0.46 $ 0.17

Loss on extinguishment of debt, net of tax 0.12 -
Stepped up depreciation and amortization expense, net of tax 0.22 0.32
Stock-based compensation, net of tax 0.05 0.12
Adjusted net income per share $ 0.85 $ 0.61

Weighted average diluted shares 135.8 106.9

(1) The loss on extinguishment of debt was $25.3 million ($15.7 million net of tax) and was incurred in the first quarter 2010.

(2) For the nine months ended September 30, 2010 and 2009, increased depreciation and amortization expense was $48.0
million ($30.1 million net of tax) and $55.2 million ($34.7 million net of tax).

(3) For the nine months ended September 30, 2010 and 2009, such stock-based compensation was $12.4 million ($7.6 million
net of tax) and $15.7 million ($13.0 million net of tax).

27