TRANSPORTATION & LOGISTICS - Harris Williams & Co. · Harris Williams & Co. Ltd is a private...

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ OCTOBER 2017

Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. PaulPoggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main,Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative(Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

www.harriswilliams.de

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www.harriswilliams.de



1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging [email protected]+1 (804) 915-0124

Jason BassManaging [email protected]+1 (804) 915-0132

Joe ConnerManaging Director [email protected]+1 (804) 915-0151

Jershon JonesDirector [email protected]+1 (804) 932-1356

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jeff KiddVice President [email protected] +1 (804) 915-0178

James O’MalleyVice President [email protected]+1 (804) 915-0165

EUROPE

Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00

Mr. Donnelly, who runs the American operation for the German wheelmaker BBS, is driven by wheels: cast alloy, magnesium, forged aluminum,painted silver or black or titanium, large enough to fill a wheel well on aFord truck or dainty enough to fit a decades-old MG sports car.

BBS is one of several companies that cover both sides of the automotivewheel world: making flashy stock wheels built specifically for carmakers, aswell as aftermarket replacements for car owners who are seeking betterperformance or more personality. And the buyers are not necessarily thehot-rodders and street racers you would expect.

New York Times

WHEELS DRIVE AUTO INDUSTRY FORWARD IN AFTERMARKET SHOPS

Compared with the wheel and tire companies, those with aftermarketadvanced driver-assistance systems (ADAS) have had a relatively smallpresence at the annual SEMA show here.

But their numbers are growing, says a top official of SEMA, which recentlycommissioned a study finding opportunities for companies to profit fromthe sale of aftermarket ADAS systems in the U.S.

“Yes, there is a market for aftermarket ADAS equipment to be retrofitted(and) that market is $1.5 billion out to the year 2022,” John Waraniak,SEMA vice president-vehicle technology, tells Ward’s Auto.

Ward’s Auto

SEMA SEES PROFIT IN AFTERMARKET ADAS

AAPEX 2017 KEYNOTE SPEAKER LOOKS AT THE AFTERMARKET

In the first of three keynote sessions at AAPEX 2017, speaker Neal Ganguli,automotive supplier consulting leader, Deloitte Consulting LLP, focused onthe future of mobility and the impact on the automotive aftermarketvalue chain.

“There are disruptive consumer, economic and technology trends thateach of you have been dealing with for many years,” said Ganguli. “Whatis unique right now is that several key ones that drive transformation –consumer preferences, regulatory forces, economics, and technologicaladvancement – are converging together, and that has the potential todrive huge transformation.”

Business Wire

WHAT WE’RE READING

SENATE LEGISLATION INCLUDES AFTERMARKET PROVISION

The Senate Commerce Committee has approved S. 1885, the AV STARTAct, to regulate the deployment and motor vehicle safety standards forHighly Automated Vehicles (HAV).

Senator James Inhofe (R-OK) offered an amendment that was acceptedwhich creates a “Highly Automated Vehicle Data Access AdvisoryCommittee” to make recommendations to Congress with respect to “theownership of, control of, or access to, information or data that vehiclescollect, generate, record, or store in an electronic form that is retrievedfrom a highly automated vehicle or automated driving system…”

MEMA has been very involved in advancing this legislation and the Inhofeamendment is an important milestone for aftermarket access for highly-automated vehicles.

Motor & Equipment Manufacturers Association

http://www.harriswilliams.com/

mailto:[email protected]








https://www.nytimes.com/2017/11/02/automobiles/wheels/wheels-rims-aftermarket.html

http://wardsauto.com/technology/sema-sees-profit-aftermarket-adas

http://www.businesswire.com/news/home/20171102006541/en/AAPEX-2017-Keynote-Speaker-Future-Mobility-Implications

https://www.mema.org/senate-automated-vehicles-legislation-includes-aftermarket-provision

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M&A TRANSACTIONS(1,2,3)

2



*Denotes pending transactions

RECENT M&A TRANSACTIONS

Date Target Business Description Acquirer

10/17/2017* Omix-ADA World's largest independent developer and supplier of Jeep and off-

road parts, accessories, and floor liners

Truck Hero, Inc.

10/11/2017 Dallas Serv ice Center, Inc. Prov ides truck repair serv ices in the Dallas-Fort Worth area Ryder System, Inc.

10/9/2017 DRB Holdings Prov ides technology products to the car wash industry New Mountain Capital

10/3/2017 Hy-Per Lube Corporation Manufactures high-performance additives Bar's Products

10/2/2017 American Driveline Systems, Inc. Offers automotive aftermarket franchising serv ices through its

subsidiaries

Icahn Enterprises LP

9/25/2017 Alliance Automotive Group Leading European distributor of vehicle parts, tools, and workshop

equipment

Genuine Parts Co.

09/13/2017 Newpark Auto Serv ice Provides auto serv ice and repairs Icahn Associates Holding

LLC

9/11/2017 DuraFit Brand of OEM replacement diesel particulate filters (DPFs) and diesel

oxidation catalysts (DOCs)

APC Automotive

Technologies

9/7/2017* Bosch Mahle Turbo Systems

GmbH & Co. KG

Manufactures and distributes exhaust gas turbochargers for passenger

cars and commercial vehicles

Fountainvest Partners (Asia)

Ltd.

9/5/2017 Rack Attack Retails automotive racks and hitches Connor, Clark & Lunn

Financial Group Ltd.

9/5/2017 Rolling Big Power (RBP) Premium truck accessories lifestyle brand Pilot Inc.

9/4/2017 Klapper Autoteile GmbH & Co.

KG

Full-line automotive parts wholesaler and distributor Alliance Automotive Group

SAS

9/1/2017 Sternhammar AB Vehicle component distributor Axel Johnson International

AB

8/31/2017 Advanced Auto Serv ice & Tire

Centers, Inc.

Distributes tires and provides repair serv ices Icahn Associates Holding

LLC

8/30/2017* TASS International BV Develops automobile safety software Siemens AG

8/24/2017* R.H. Sheppard Co., Inc. Manufactures and supplies auto parts and technologies for

transportation industry

WABCO Holdings, Inc.

8/21/2017* Futuris Automotive (US), Inc. Designs and manufactures automotive interior products Adient plc

8/15/2017 Pentagon Motor Holdings Ltd. Operates as an automotive dealership company, offering used and

new cars, vans, and body parts

Imperial Holdings Ltd.

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PUBLIC MARKETS OVERVIEW(1)

3


TEV / LTM EBITDA TEV / 2017P EBITDA

AVERAGE REVENUE GROWTH (2013 – 2016) AVERAGE REVENUE GROWTH (2016 – 2018P)

AVERAGE EBITDA GROWTH (2013 – 2016) AVERAGE EBITDA GROWTH (2016 – 2018P)


8.4x

10.2x

11.2x

12.5x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

8.1x

9.4x

10.8x

11.9x

Suppliers




Providers

(1.1%)

0.1%

6.2%

11.2%


Suppliers



Providers

2.0%

6.2%

6.3%

6.3%



Suppliers


Providers

2.6%

4.6%

11.1%

12.0%


Suppliers



Providers

1.8%

8.8%

10.4%

10.8%



Providers

Suppliers


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STOCK PRICE PERFORMANCE(1)

4


(Indexed to October 16th, 2016)

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)


2.2%

3.3%

4.0%

4.0%

6.0%

S&P 500

Distributors and

Retailers

Vehicle

Manufacturers

Dealerships and

Service Providers

Suppliers

(8.0%)

9.9%

12.4%

19.8%

24.8%

Distributors and

Retailers

Dealerships and

Service Providers

Suppliers

S&P 500

Vehicle

Manufacturers

(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

Oct-16 Jan-17 Apr-17 Jul-17 Oct-17

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

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OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marineand air transportation, transportation equipment, and the automotive and heavy duty vehicle market.


RECENTLY CLOSED T&L TRANSACTIONS

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DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

has acquired

a portfolio company of

has been acquired by



has merged with

an operating company of

in a recapitalization by

and


has been acquired byhas merged with



is merging with





a portfolio company ofa portfolio company of




has been recapitalized by

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Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

BostonOne International PlaceSuite 2620Boston, Massachusetts 02110Phone: +1 (617) 482-7501

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700

Richmond (Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072

San Francisco575 Market Street31st FloorSan Francisco, California 94105Phone: +1 (415) 288-4260

Washington, D.C. 800 17th St. NW2nd FloorWashington, D.C. 20006Phone: +1 202-207-2300

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900

Transportation & Logistics

Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities. Our clients benefit from our deep-sector experience, integrated industry intelligence and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website.

OUR FIRM



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PUBLIC COMPARABLES(1)

7



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Sep-16 Mar-17 Current 2017P 2018P

Automotive Aftermarket

TEV / LTM EBITDA as of

Suppliers

BorgWarner Inc. $12,846 $51.70 6.0% 49.1% $52.71 98.1% 6.6x 6.6x 8.4x 8.1x 7.6x

Cooper Tire & Rubber Company 2,046 36.75 7.3% 1.1% 44.50 82.6% 2.9x 4.1x 3.9x 4.7x 4.2x

Dorman Products, Inc. 2,274 70.22 3.3% 12.4% 88.50 79.3% 12.3x 12.9x 11.4x 11.0x 10.0x

Goodyear Tire & Rubber Company 13,790 33.00 1.7% 5.6% 37.20 88.7% 5.8x 5.5x 5.8x 6.2x 5.3x

Modine Manufacturing Company 1,533 20.70 16.9% 89.9% 21.15 97.9% 4.2x 7.9x 10.8x 8.2x 7.4x

Motorcar Parts of America, Inc. 589 29.13 7.7% 9.3% 31.57 92.3% 8.8x 8.8x 8.2x 6.2x 5.5x

Standard Motor Products, Inc. 1,157 46.92 1.2% (1.6%) 55.37 84.7% 9.9x 9.0x 9.0x 9.8x 8.2x

Tenneco Inc. 4,684 62.39 8.4% 12.6% 70.96 87.9% 5.2x 5.6x 7.5x 5.3x 4.9x

Visteon Corporation 3,754 123.84 3.5% 79.3% 128.39 96.5% 6.7x 8.7x 10.8x 10.2x 9.4x

Median 6.0% 12.4% 88.7% 6.6x 7.9x 8.4x 8.1x 7.4x


Advance Auto Parts, Inc. $7,083 $84.97 (14.6%) (42.1%) $177.83 47.8% 8.6x 10.6x 7.9x 7.7x 6.8x

AutoZone, Inc. 22,490 598.95 5.1% (21.6%) 813.70 73.6% 11.9x 10.5x 9.4x 9.4x 9.2x

Genuine Parts Company 15,041 95.50 10.2% (2.6%) 100.90 94.6% 12.3x 11.6x 12.3x 11.8x 10.3x

LKQ Corporation 14,311 37.46 6.0% 14.1% 37.68 99.4% 13.1x 10.8x 13.4x 12.9x 11.7x

O'Reilly Automotive, Inc. 21,705 209.50 (0.2%) (25.0%) 286.57 73.1% 15.1x 13.4x 11.2x 11.0x 10.3x

U.S. Auto Parts Network, Inc. 114 2.86 (2.1%) (8.0%) 4.13 69.2% 12.2x 17.2x 13.8x 8.1x 7.1x

Uni-Select Inc. 1,145 22.93 3.3% (4.5%) 27.36 83.8% 11.1x 12.0x 10.3x 9.1x 7.5x

Median 3.3% (8.0%) 73.6% 12.2x 11.6x 11.2x 9.4x 9.2x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,025 $57.15 (2.2%) 3.2% $71.00 80.5% 9.0x 8.8x 9.1x 9.3x 9.3x

AutoNation, Inc. 6,961 43.80 (5.4%) (9.4%) 53.74 81.5% 7.7x 6.8x 7.6x 8.0x 7.7x

Boyd Group Income Fund 1,477 75.10 0.3% 16.0% 78.68 95.4% 14.5x 13.8x 14.9x 12.5x 10.3x

CarMax, Inc. 26,023 75.00 10.2% 46.3% 77.64 96.6% NM NM NM 19.1x 18.4x

Copart, Inc. 8,999 36.18 11.3% 34.0% 36.52 99.1% 15.6x 15.1x 16.7x 16.6x 15.1x

Group 1 Automotive, Inc. 4,291 69.78 5.3% 11.2% 83.18 83.9% 9.6x 9.8x 10.6x 11.9x 11.0x

KAR Auction Services, Inc. 9,971 47.70 4.1% 9.9% 48.65 98.0% 13.1x 12.1x 12.6x 11.9x 11.0x

Lithia Motors, Inc. Class A 5,274 114.37 0.4% 19.1% 123.50 92.6% 11.1x 10.4x 12.3x 11.6x 10.8x

Monro Inc 2,144 52.80 4.0% (13.2%) 61.75 85.5% 15.3x 13.3x 13.0x 11.8x 10.9x

Penske Automotive Group, Inc. 9,447 45.22 0.7% (0.1%) 56.05 80.7% 13.4x 13.6x 13.9x 12.7x 12.4x

Sonic Automotive, Inc. Class A 3,339 20.25 9.8% 7.0% 27.45 73.8% 10.1x 10.1x 10.8x 11.0x 11.3x

Median 4.0% 9.9% 85.5% 12.1x 11.3x 12.5x 11.9x 11.0x

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8



Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Sep-16 Mar-17 Current 2017P 2018P


TEV / LTM EBITDA as of


Bayerische Motoren Werke AG $168,102 $103.11 1.6% 21.9% $105.19 98.0% 8.1x 8.7x 10.0x 9.5x 9.4x

Daimler AG 200,143 80.66 1.8% 14.3% 81.28 99.2% 6.9x 7.1x 8.6x 8.6x 8.5x

Ford Motor Company 155,087 12.03 3.5% 1.0% 13.27 90.7% 11.6x 12.2x 12.6x 13.6x 12.9x

General Motors Company 130,951 45.54 17.1% 42.9% 46.11 98.8% 5.3x 5.4x 5.7x 7.8x 8.0x

Harley-Davidson, Inc. 14,251 46.37 (3.4%) (6.9%) 63.40 73.1% 10.3x 14.5x 12.5x 12.6x 12.0x

Navistar International Corporation 8,383 42.73 9.2% 88.5% 45.47 94.0% 11.0x 12.8x 16.9x 15.6x 10.7x

Oshkosh Corp 7,091 87.41 13.3% 65.7% 88.20 99.1% 8.6x 10.3x 11.8x 11.5x 10.9x

PACCAR Inc 31,013 72.57 3.8% 27.7% 74.79 97.0% 8.4x 9.7x 10.4x 10.4x 9.4x

Toyota Motor Corp. 317,713 61.54 5.5% 7.1% 62.49 98.5% 8.4x 8.5x 9.6x 11.2x 10.8x

Volkswagen AG Pref 197,581 170.37 4.1% 28.4% 171.23 99.5% 6.0x 5.3x 5.1x 5.0x 4.8x

Median 4.0% 24.8% 98.3% 8.4x 9.2x 10.2x 10.8x 10.0x

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9



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2013 2014 2015 2016 2017P 2018P '13-16 '16-18P 2013 2014 2015 2016 2017P 2018P '13-16 '16-18P


Suppliers

BorgWarner Inc. $7,435 $8,304 $8,025 $9,071 $9,342 $9,939 6.9% 4.7% $1,224 $1,385 $1,330 $1,507 $1,583 $1,682 7.2% 5.6%

Cooper Tire & Rubber Company 3,439 3,421 2,959 2,925 2,970 3,139 (5.3%) 3.6% 394 436 541 592 436 485 14.6% (9.5%)

Dorman Products, Inc. 664 751 803 860 924 994 9.0% 7.5% 138 153 162 188 207 227 10.7% 10.0%

Goodyear Tire & Rubber Company 19,540 18,138 16,443 15,158 15,318 15,667 (8.1%) 1.7% 2,107 2,251 2,349 2,520 2,217 2,583 6.1% 1.2%

Modine Manufacturing Company 1,478 1,496 1,353 1,503 1,930 2,021 0.6% 16.0% 121 110 114 124 185 205 0.8% 28.6%

Motorcar Parts of America, Inc. 259 302 369 421 468 507 17.7% 9.7% 46 38 49 67 95 107 13.3% 26.4%

Standard Motor Products, Inc. 984 980 972 1,058 1,137 1,181 2.5% 5.6% 107 113 92 121 118 141 4.3% 7.7%

Tenneco Inc. 7,964 8,420 8,209 8,599 9,101 9,517 2.6% 5.2% 707 752 781 764 882 953 2.6% 11.7%

Visteon Corporation 7,439 7,509 3,245 3,161 3,176 3,320 (24.8%) 2.5% 590 663 265 323 368 403 (18.2%) 11.6%

Total $49,202 $49,322 $42,377 $42,756 $44,365 $46,284 0.1% 6.3% $5,433 $5,902 $5,684 $6,206 $6,091 $6,785 4.6% 10.4%


Advance Auto Parts, Inc. $6,494 $9,844 $9,737 $9,568 $9,414 $9,640 13.8% 0.4% $901 $1,244 $1,147 $1,068 $909 $1,046 5.8% (1.0%)

AutoZone, Inc. 9,148 9,475 10,187 10,636 10,889 11,264 5.2% 2.9% 2,048 2,089 2,223 2,358 2,403 2,458 4.8% 2.1%

Genuine Parts Company 14,078 15,342 15,280 15,340 15,990 16,537 2.9% 3.8% 1,117 1,273 1,266 1,217 1,276 1,472 2.9% 10.0%

LKQ Corporation 5,063 6,740 7,193 8,584 9,470 10,034 19.2% 8.1% 627 790 852 1,007 1,109 1,223 17.1% 10.2%

O'Reilly Automotive, Inc. 6,649 7,216 7,967 8,593 8,982 9,455 8.9% 4.9% 1,287 1,465 1,743 1,917 1,972 2,106 14.2% 4.8%

U.S. Auto Parts Network, Inc. 255 284 291 304 311 323 6.0% 3.2% 5 5 6 10 14 16 27.5% 29.8%

Uni-Select Inc. 1,788 1,784 1,355 1,197 1,425 1,735 (12.5%) 20.4% 92 104 94 107 125 153 5.0% 19.5%

Total $43,474 $50,685 $52,010 $54,221 $56,482 $58,987 6.2% 6.2% $6,077 $6,968 $7,331 $7,684 $7,808 $8,474 11.1% 10.8%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $5,335 $5,868 $6,588 $6,528 $6,552 $6,614 7.0% 0.7% $270 $313 $331 $334 $324 $328 7.4% (0.9%)

AutoNation, Inc. 17,518 19,109 20,862 21,609 21,547 21,966 7.2% 0.8% 843 909 998 971 871 905 4.8% (3.5%)

Boyd Group Income Fund 561 764 918 1,047 1,275 1,474 23.1% 18.6% 40 77 79 93 117 142 33.1% 23.3%

CarMax, Inc. 12,574 14,269 15,150 15,875 17,135 18,145 8.1% 6.9% 595 724 804 713 1,376 1,422 6.2% 41.2%

Copart, Inc. 1,046 1,163 1,146 1,268 1,448 1,448 6.6% 6.8% 342 363 394 455 540 540 10.0% 8.9%

Group 1 Automotive, Inc. 8,919 9,938 10,633 10,888 10,730 10,989 6.9% 0.5% 346 375 408 419 360 380 6.6% (4.8%)

KAR Auction Services, Inc. 2,173 2,365 2,640 3,150 3,436 3,647 13.2% 7.6% 451 574 640 740 839 901 17.9% 10.4%

Lithia Motors, Inc. Class A 4,006 5,390 7,864 8,678 9,947 10,885 29.4% 12.0% 207 266 377 405 464 489 25.0% 9.9%

Monro Inc 831 894 944 1,022 1,154 1,255 7.1% 10.8% 127 147 161 162 183 197 8.4% 10.3%

Penske Automotive Group, Inc. 14,705 17,177 19,285 20,119 21,091 21,500 11.0% 3.4% 498 574 645 665 744 757 10.1% 6.7%

Sonic Automotive, Inc. Class A 8,843 9,197 9,624 9,732 9,892 10,065 3.2% 1.7% 300 294 307 319 302 290 2.1% (4.7%)

Total $76,512 $86,134 $95,653 $99,915 $104,207 $107,986 11.2% 6.3% $4,019 $4,617 $5,143 $5,276 $6,119 $6,350 12.0% 8.8%

PAGE |


10



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2013 2014 2015 2016 2017P 2018P '13-16 '16-18P 2013 2014 2015 2016 2017P 2018P '13-16 '16-18P



Bayerische Motoren Werke AG $100,976 $106,648 $102,215 $104,163 $116,931 $120,392 1.0% 7.5% $19,443 $21,734 $19,303 $19,370 $17,660 $17,924 (0.1%) (3.8%)

Daimler AG 156,635 172,268 165,747 169,537 191,848 197,252 2.7% 7.9% 21,575 25,517 25,668 26,177 24,065 24,181 6.7% (3.9%)

Ford Motor Company 146,917 144,077 149,558 151,800 143,227 144,694 1.1% (2.4%) 13,183 11,324 15,079 12,296 11,219 12,539 (2.3%) 1.0%

General Motors Company 155,427 155,929 152,356 166,380 147,513 145,586 2.3% (6.5%) 13,284 10,160 15,518 20,671 16,304 15,914 15.9% (12.3%)

Harley-Davidson, Inc. 5,900 6,229 5,995 5,996 4,922 5,059 0.5% (8.2%) 1,324 1,452 1,330 1,240 1,143 1,192 (2.2%) (2.0%)

Navistar International Corporation 10,775 10,806 10,140 8,111 8,207 8,940 (9.0%) 5.0% (192) 295 567 474 520 783 NM 28.5%

Oshkosh Corp 7,665 6,808 6,098 6,279 6,755 6,962 (6.4%) 5.3% 644 622 523 518 619 637 (7.0%) 10.9%

PACCAR Inc 17,124 18,997 19,115 17,005 17,095 18,222 (0.2%) 3.5% 2,436 2,899 3,198 2,939 3,023 3,302 6.5% 6.0%

Toyota Motor Corp. 256,480 247,980 236,533 255,078 252,226 257,286 (0.2%) 0.4% 35,160 38,164 36,457 34,060 27,148 28,656 (1.1%) (8.3%)

Volkswagen AG Pref 261,550 268,549 236,524 240,340 269,735 278,678 (2.8%) 7.7% 30,822 36,343 26,777 37,788 37,169 39,455 7.0% 2.2%

Total $1,119,448 $1,138,291 $1,084,281 $1,124,689 $1,158,458 $1,183,070 (1.1%) 2.0% $137,679 $148,510 $144,420 $155,533 $138,870 $144,583 2.6% 1.8%

PAGE |


SOURCES


1. FactSet.

2. MergerMarket.

3. Pitchbook.

DISCLOSURES

11


Harris Williams & Co. (www.harriswilliams.de) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Harris Williams & Co. Ltd is a private limited company authorised and regulated by the Financial Conduct Authority, incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales under company number 7078852. Directors: Mr. Ned Valentine, Mr. Paul Poggi, Mr. Thierry Monjauze and Mr. Aadil Khan.

Harris Williams & Co. Ltd Niederlassung Frankfurt (German branch) is registered in the Commercial Register (Handelsregister) of the Local Court (Amtsgericht) of Frankfurt am Main, Germany, under registration number HRB 96687, having its business address at Bockenheimer Landstrasse 33-35, 60325 Frankfurt am Main, Germany. Permanent Representative (Ständiger Vertreter) of the Branch Niederlassung: Mr. Jeffery H. Perkins.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

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