transportation & logistics...instant accessibility, and diversity of form and function....

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ FEBRUARY 2018

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is a private limitedcompany 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 andWales (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which HarrisWilliams LLC and Harris Williams & Co. Ltd conduct business.

PAGE |

www.harriswilliams.com



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 KiddDirector [email protected] +1 (804) 915-0178

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

Jon Meredith Vice President [email protected]+1 (804) 887-6085

EUROPE

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

WHAT WE’RE READING

GLOBAL TELEMATICS MARKET TO BE WORTH $233B USD BY 2022

According to Netscribes, the global telematics market is expected to grow at acompound annual growth rate (CAGR) of 28.5 percent between 2017 and 2022 toreach a global revenue of $233 billion USD by 2022. An increased need to trackvehicles in real time and monitor driver behavior, coupled with the rising demandfor onboard infotainment, is expected to drive the use of telematics technology.80-85 percent of the telematics solutions and devices that includes infotainmentand UBI cater to the automotive industry. North America is the highest revenue-generating region for the automotive telematics industry. The telematics market isat a mature stage in countries like the U.S. and Canada, where stable growth isforecasted until 2022.

Aftermarket News

RISE OF SELF-DRIVING VEHICLES WILL INCREASE CAR OWNERSHIP

When people predict the demise of car ownership, they are overlooking the realitythat the new autonomous automotive industry is not going to be just a re-hash oftoday’s car industry with driverless vehicles. Instead, the automotive industry of thefuture will be selling what could be considered an entirely new product: a widevariety of intelligent, self-guiding transportation robots. When cars become awidely used type of transportation robot, they will be cheap, ubiquitous, andversatile.

Several unique characteristics of autonomous vehicles will ensure that people willcontinue to buy their own cars: cost, personal belongings, frequent upgrades,instant accessibility, and diversity of form and function.

SingularityHub

THE HURDLES OF FIXING AUTOMATED VEHICLES

As automated vehicles slowly populate selected urban areas, the questionpersists: Who will repair and maintain these robotic and technological marvels?

"It's not something that immediately comes to mind when we think about all theresearch and development that comes with automated driving," says KayStepper, vice president of driver assistance systems and automated driving atRobert Bosch.

As a first mover in automated vehicle technology, Bosch is addressing a need thatmight be five or 10 years from reaching critical mass. But automakers, dealers,industry groups and academics agree that a significant gap exists in educationand marketing of careers for automated vehicle service technicians.

Classroom learning, reinforced by hands-on exposure to software and electricalintegration of sensors in automated vehicle prototypes, is creating jobopportunities beyond those that require four-year and graduate degrees. Boschhas hired about 10 Schoolcraft students with two-year associate degrees and iscontinuing their education.

Automotive News

TIRE INDUSTRY ADVANCEMENTS LAUDED AT TIRE TECH EXPO

Goodyear; Pirelli and C. S.p.A; Smithers Rapra; Versalis S.p.A.; and MegaRide S.r.l.received accolades for their achievements in tire technology, each taking homea Tire Technology International Award for Innovation and Excellence from the 2018Tire Technology Expo.

In addition, Ulf Sandberg, senior research scientist at the Swedish National Roadand Transport Research Institute (VTI), was presented with a Lifetime AchievementAward. He is one of the world's foremost experts on tire/road noise.

Goodyear's research and development efforts involving the use of soybean oil intire tread compounds earned the Akron-based tire maker the award in the"Environmental Achievement of the Year" category.

Rubber & Plastics News

http://www.harriswilliams.com/

mailto:[email protected]









http://www.aftermarketnews.com/global-telematics-market-worth-233-24b-usd-2022/

https://singularityhub.com/2018/02/14/why-the-rise-of-self-driving-vehicles-will-actually-increase-car-ownership/#sm.0000t2b0wihtydi7qaw2iilusg9qb

http://www.autonews.com/article/20180219/RETAIL05/180219994/self-driving-car-repair

http://www.aftermarketnews.com/global-telematics-market-worth-233-24b-usd-2022/

PAGE |

M&A TRANSACTIONS(1)

2

RECENT M&A TRANSACTIONS



*Denotes pending transactions

Date Target Business Description Acquirer

2/23/2018* Mavis Tire Supply LLC Operates as an online dealer of discount tires Express Oil Change LLC

2/20/2018 Behrens Supply Co. Supplies automotive and industrial parts Golden Gate Private Equity,

Inc.

2/9/2018* Fenix Parts, Inc. Engages in the recycling and resale of original equipment manufacturer

automotive products in the United States and Canada

Upstate Shredding LLC

2/6/2018 ATC Drivetrain LLC Provides remanufacturing and logistics solutions for automotive industry Crestv iew LLC

2/6/2018 Air Transport Components LLC Provides aircraft maintenance & repair serv ices includes electrical

accessories shop, flap transmission and gearbox shop, carriages and

track shop

Holder Family Investments

LLC

2/2/2018 Fore Transportation, Inc. Prov ides long-haul intermodal and truckload serv ices Universal Logistics Holdings,

Inc.

1/26/2018 Lucky's Lease, Inc. Manufactures and repairs trailer trucks General Finance Corp.

1/23/2018 Kamm Industries, Inc. Manufactures suspension seat and accessories for utility task vehicles

(UTV) and off-road vehicles

Bestop, Inc.

1/22/2018 Kodiak Products Co., Inc. Manufactures parts and equipment for transportation trailers Kinderhook Industries LLC

1/16/2018 Parkmobile Prov ides mobile parking serv ices in North America BMW Group

1/11/2018 AFG Allgemeine

Fahrzeugübernahme-

Gesellschaft mbH

Provides automotive distribution serv ices MOSOLF SE & Co. KG

1/11/2018 Continental Batteries Distributes aftermarket batteries Incline Equity Partners

1/11/2018 Jett Express Car Washes LLC Provides car cleaning serv ices with a tunnel express conveyor Zips Car Wash LLC

1/9/2018 Safe Fleet Prov ides safety products for fleet vehicles Oak Hill

1/9/2018 Tiger Accessories Group Supplies vehicle lighting and cleaning products in North America Hopkins

1/8/2018 Levin’s Auto Supply Supplies automotive aftermarket products to retailers and automotive

parts stores

Highline Aftermarket

1/8/2018 Piston Rings Komarov Designers and manufacturers of piston rings for the OEM and

aftermarket channels

Hastings Manufacturing

1/4/2018 SARL Giraud-Garage du Bois de

la Chaize

Provides automotive repair serv ices Giraud-Garage du Bois de la

Chaize SARL /Monnier/

1/4/2018 Truck Parts & Equipment, Inc. Supplies new and used semi trailers and truck equipment FleetPride, Inc.

PAGE |

PUBLIC MARKETS OVERVIEW(1)

3


TEV / LTM EBITDA TEV / 2018P EBITDA

AVERAGE REVENUE GROWTH (2014 – 2017) AVERAGE REVENUE GROWTH (2017 – 2019P)

AVERAGE EBITDA GROWTH (2014 – 2017) AVERAGE EBITDA GROWTH (2017 – 2019P)


8.6x

10.0x

10.7x

12.6x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

7.2x

10.1x

10.2x

11.9x

Suppliers




Providers

0.3%

0.8%

3.1%

8.8%


Suppliers



Providers

2.9%

5.1%

8.6%

9.7%


Suppliers



Providers

(7.0%)

1.0%

6.0%

8.1%




Providers

Suppliers

(9.0%)

2.6%

5.0%

5.7%



Suppliers


Providers

PAGE |

STOCK PRICE PERFORMANCE(1)

4


(Indexed to February 26th , 2017)

TRAILING TWELVE MONTHS

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


(30%)

(20%)

(10%)

0%

10%

20%

30%

Feb-17 May-17 Aug-17 Nov-17 Feb-18

Suppliers Distributors and Retailers Dealerships and Service Providers

Vehicle Manufacturers S&P 500 Index

(8.8%)

(7.9%)

(7.8%)

(4.2%)

(3.2%)

Dealerships and

Service Providers

Vehicle

Manufacturers

Distributors and

Retailers

Suppliers

S&P 500

(5.4%)

(4.6%)

3.3%

16.1%

19.1%

Distributors and

Retailers

Suppliers

Dealerships and

Service Providers

S&P 500

Vehicle

Manufacturers

PAGE |

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.


5

INDUSTRY UPDATE │ FEBRUARY 2018

RECENTLY CLOSED T&L TRANSACTIONS

a portfolio company of

has been acquired byhas merged with

a portfolio company of a portfolio company of

has been acquired by

has merged with

an operating company of

in a recapitalization by

and


a portfolio company ofa portfolio company of

is merging with


A portfolio company of

has been acquired by has been acquired by

a portfolio company ofa portfolio company of


has been

recapitalized byhas been acquired by

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION



http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

PAGE |

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 andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

OUR FIRM



6

PAGE |

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 Feb-17 Aug-17 Current 2018P 2019P

Automotive Aftermarket

TEV / LTM EBITDA as of

Suppliers

BorgWarner Inc. $12,820 $52.32 (7.0%) 26.0% $58.22 89.9% 7.2x 7.3x 7.9x 7.2x 6.8x

Cooper Tire & Rubber Company 1,754 32.85 (15.1%) (20.9%) 44.50 73.8% 3.7x 3.6x 3.9x 4.4x 4.1x

Dorman Products, Inc. 2,429 73.45 (1.6%) (4.6%) 88.50 83.0% 13.4x 10.4x 12.2x 11.6x 10.8x

Goodyear Tire & Rubber Company 12,402 29.52 (16.8%) (16.5%) 37.20 79.4% 5.5x 5.4x 5.7x 5.0x 4.6x

Modine Manufacturing Company 1,681 24.70 10.3% 111.1% 25.75 95.9% 7.3x 9.2x 8.6x 7.5x 6.9x

Motorcar Parts of America, Inc. 460 22.00 (20.8%) (22.5%) 31.57 69.7% 9.5x 7.4x 8.6x 5.1x 4.9x

Standard Motor Products, Inc. 1,208 50.14 7.6% 2.9% 54.73 91.6% 9.6x 8.6x 9.5x 10.0x 9.1x

Tenneco Inc. 4,206 56.11 (4.2%) (14.0%) 67.93 82.6% 6.3x 6.7x 5.8x 4.5x 4.3x

Visteon Corporation 3,886 126.64 (3.5%) 34.5% 140.64 90.0% 9.2x 9.8x 10.4x 10.1x 9.3x

Median (4.2%) (4.6%) 83.0% 7.3x 7.4x 8.6x 7.2x 6.8x


Advance Auto Parts, Inc. $9,118 $116.32 (3.8%) (26.1%) $158.69 73.3% 11.7x 8.8x 10.7x 9.4x 8.7x

AutoZone, Inc. 25,258 725.00 (7.8%) (1.1%) 797.89 90.9% 11.1x 8.5x 10.4x 10.2x 10.1x

Genuine Parts Company 17,000 94.53 (11.1%) (1.8%) 107.75 87.7% 12.4x 10.8x 14.3x 11.8x 10.8x

LKQ Corporation 15,590 40.10 (5.8%) 25.8% 43.86 91.4% 12.9x 12.5x 14.2x 12.5x 11.6x

O'Reilly Automotive, Inc. 25,677 254.13 (6.9%) (5.4%) 279.23 91.0% 14.5x 10.8x 13.1x 12.6x 11.9x

U.S. Auto Parts Network, Inc. 88 2.16 (12.0%) (35.1%) 4.13 52.2% 13.1x 13.0x 10.2x 5.9x NA

Uni-Select Inc. 1,202 18.53 (17.1%) (28.4%) 27.36 67.7% 11.3x 10.0x 10.1x 8.8x 8.4x

Median (7.8%) (5.4%) 87.7% 12.4x 10.8x 10.7x 10.2x 10.4x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,137 $68.90 (8.3%) 3.3% $76.40 90.2% 9.9x 8.8x 9.6x 9.6x 9.9x

AutoNation, Inc. 11,593 52.46 (14.4%) 12.0% 62.02 84.6% 9.3x 9.3x 12.5x 12.9x 12.2x

Boyd Group Income Fund 1,911 82.55 (1.1%) 24.2% 87.13 94.7% 14.1x 14.6x 18.4x 14.0x 12.2x

CarMax, Inc. 24,144 62.76 (12.3%) (4.7%) 77.64 80.8% NM NM NM 17.4x 16.7x

Copart, Inc. 11,606 46.77 4.0% 58.6% 47.65 98.1% 15.1x 14.7x 19.2x 17.5x 15.7x

Group 1 Automotive, Inc. 4,441 75.65 (4.5%) (4.9%) 84.47 89.6% 10.5x 9.9x 10.3x 11.1x 10.6x

KAR Auction Services, Inc. 10,852 51.42 (5.9%) 15.5% 55.19 93.2% 13.1x 12.1x 13.1x 11.9x 11.1x

Lithia Motors, Inc. Class A 5,703 111.12 (11.3%) 12.7% 127.99 86.8% 12.0x 11.7x 11.8x 11.6x 11.0x

Monro Inc 2,162 53.10 (16.4%) (9.2%) 64.15 82.8% 14.0x 11.7x 12.8x 11.5x 10.3x

Penske Automotive Group, Inc. 10,008 47.69 (11.4%) (7.8%) 54.83 87.0% 14.5x 13.3x 14.2x 12.5x 12.8x

Sonic Automotive, Inc. Class A 3,430 20.25 (8.8%) (10.4%) 23.25 87.1% 10.8x 10.3x 11.1x 11.4x 11.2x

Median (8.8%) 3.3% 87.1% 12.6x 11.7x 12.6x 11.9x 11.2x

PAGE |


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 Feb-17 Aug-17 Current 2018P 2019P


TEV / LTM EBITDA as of


Bayerische Motoren Werke AG $171,646 $107.05 (8.2%) 20.2% $119.86 89.3% 7.9x 9.7x 10.5x 9.4x 9.0x

Daimler AG 219,892 86.59 (6.9%) 19.1% 94.70 91.4% 6.9x 7.0x 8.5x 8.8x 8.6x

Ford Motor Company 158,265 10.70 (7.5%) (14.2%) 13.48 79.4% 12.5x 12.2x 12.4x 12.4x 12.4x

General Motors Company 129,781 40.91 (5.2%) 10.9% 46.76 87.5% 5.3x 5.1x 5.5x 6.9x 7.0x

Harley-Davidson, Inc. 14,313 46.61 (14.8%) (17.6%) 63.40 73.5% 13.1x 12.8x 12.8x 14.1x 13.2x

Navistar International Corporation 7,977 39.16 (15.6%) 46.8% 47.73 82.0% 13.4x 14.6x 11.4x 10.6x 9.4x

Oshkosh Corp 6,800 83.47 (12.4%) 26.1% 100.26 83.3% 10.4x 9.9x 10.2x 9.7x 8.8x

PACCAR Inc 30,316 71.32 (7.6%) 5.8% 79.69 89.5% 9.9x 9.4x 8.8x 11.5x 11.3x

Toyota Motor Corp. 344,040 68.31 (2.2%) 19.0% 70.97 96.3% 8.9x 9.1x 9.9x 10.8x 10.2x

Volkswagen AG Pref 256,957 199.96 (11.8%) 33.9% 236.59 84.5% 5.3x 5.9x 6.7x 5.7x 5.5x

Median (7.9%) 19.1% 86.0% 9.4x 9.5x 10.0x 10.1x 9.2x

PAGE |


9



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2014 2015 2016 2017 2018P 2019P '14-17 '17-19P 2014 2015 2016 2017 2018P 2019P '14-17 '17-19P


Suppliers

BorgWarner Inc. $8,304 $8,025 $9,071 $9,796 $9,796 $11,321 5.7% 7.5% $1,385 $1,330 $1,507 $1,626 $1,626 $1,906 5.5% 8.3%

Cooper Tire & Rubber Company 3,421 2,959 2,925 2,851 2,851 2,997 (5.9%) 2.5% 436 541 592 447 447 443 0.8% (0.5%)

Dorman Products, Inc. 751 803 860 903 903 1,028 6.3% 6.7% 153 162 188 198 198 226 9.0% 6.6%

Goodyear Tire & Rubber Company 18,138 16,443 15,158 15,377 15,377 16,420 (5.4%) 3.3% 2,251 2,349 2,520 2,178 2,178 2,641 (1.1%) 10.1%

Modine Manufacturing Company 1,496 1,353 1,503 2,055 2,177 2,311 11.2% 6.1% 110 114 124 191 224 243 20.1% 12.8%

Motorcar Parts of America, Inc. 302 369 421 437 475 498 13.1% 6.8% 38 49 67 77 90 95 26.8% 11.0%

Standard Motor Products, Inc. 980 972 1,058 1,116 1,116 1,179 4.4% 2.8% 113 92 121 127 127 132 3.8% 2.1%

Tenneco Inc. 8,420 8,209 8,599 9,274 9,274 10,193 3.3% 4.8% 752 781 764 722 722 987 (1.3%) 16.9%

Visteon Corporation 7,509 3,245 3,161 3,146 3,146 3,453 (25.2%) 4.8% 663 265 323 372 372 415 (17.5%) 5.6%

Total $49,322 $42,377 $42,756 $44,955 $45,115 $49,400 0.8% 5.0% $5,902 $5,684 $6,206 $5,938 $5,984 $7,088 5.1% 8.1%


Advance Auto Parts, Inc. $9,844 $9,737 $9,568 $9,374 $9,374 $9,568 (1.6%) 1.0% $1,244 $1,147 $1,068 $849 $849 $1,034 (12.0%) 10.4%

AutoZone, Inc. 9,475 10,187 10,636 10,889 10,889 11,762 4.7% 3.9% 2,089 2,223 2,358 2,403 2,403 2,524 4.8% 2.5%

Genuine Parts Company 15,342 15,280 15,340 16,309 16,309 18,814 2.1% 7.4% 1,273 1,266 1,217 1,187 1,187 1,534 (2.3%) 13.6%

LKQ Corporation 6,740 7,193 8,584 9,737 9,737 11,172 13.0% 7.1% 790 852 1,007 1,098 1,098 1,337 11.6% 10.4%

O'Reilly Automotive, Inc. 7,216 7,967 8,593 8,978 8,978 10,003 7.6% 5.6% 1,465 1,743 1,917 1,959 1,959 2,163 10.2% 5.1%

U.S. Auto Parts Network, Inc. 284 291 304 306 316 0 2.6% (100.0%) 5 6 10 14 15 0 43.3% (100.0%)

Uni-Select Inc. 1,784 1,355 1,197 1,448 1,448 1,814 (6.7%) 11.9% 104 94 107 118 118 141 4.6% 9.1%

Total $50,685 $52,010 $54,221 $57,041 $57,050 $63,134 3.1% (9.0%) $6,968 $7,331 $7,684 $7,629 $7,630 $8,733 8.6% (7.0%)

Dealerships and Service Providers

Asbury Automotive Group, Inc. $5,868 $6,588 $6,528 $6,457 $6,457 $6,636 3.2% 1.4% $313 $331 $334 $325 $325 $319 1.3% (0.9%)

AutoNation, Inc. 19,109 20,862 21,609 21,535 21,535 22,129 4.1% 1.4% 909 998 971 926 926 953 0.6% 1.5%

Boyd Group Income Fund 764 918 1,047 1,212 1,409 1,588 16.6% 14.5% 77 79 94 111 136 157 12.9% 19.1%

CarMax, Inc. 14,269 15,150 15,875 17,295 18,300 19,695 6.6% 6.7% 724 804 713 1,341 1,397 1,447 22.8% 3.9%

Copart, Inc. 1,163 1,146 1,268 1,448 1,448 1,851 7.6% 13.1% 363 394 455 540 540 722 14.1% 15.7%

Group 1 Automotive, Inc. 9,938 10,633 10,888 11,130 11,130 11,465 3.8% 1.5% 375 408 419 433 433 413 4.9% (2.3%)

KAR Auction Services, Inc. 2,365 2,640 3,150 3,458 3,458 3,879 13.5% 5.9% 574 640 740 831 831 980 13.1% 8.6%

Lithia Motors, Inc. Class A 5,390 7,864 8,678 10,087 10,087 11,657 23.2% 7.5% 266 377 405 483 483 514 22.0% 3.2%

Monro Inc 894 944 1,022 1,129 1,188 1,302 8.1% 7.4% 147 161 162 177 191 210 6.5% 8.8%

Penske Automotive Group, Inc. 17,177 19,285 20,119 21,387 21,387 22,145 7.6% 1.8% 574 645 665 707 707 828 7.2% 8.3%

Sonic Automotive, Inc. Class A 9,197 9,624 9,732 9,867 9,867 10,139 2.4% 1.4% 294 307 319 310 310 310 1.8% (0.1%)

Total $86,134 $95,653 $99,915 $105,004 $106,264 $112,486 8.8% 5.7% $4,617 $5,143 $5,277 $6,183 $6,278 $6,853 9.7% 6.0%

PAGE |


10



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2014 2015 2016 2017 2018P 2019P '14-17 '17-19P 2014 2015 2016 2017 2018P 2019P '14-17 '17-19P



Bayerische Motoren Werke AG $106,648 $102,215 $104,163 $121,551 $125,301 $129,676 4.5% 3.3% $21,734 $19,303 $19,370 $18,341 $18,289 $19,109 (5.5%) 2.1%

Daimler AG 172,268 165,747 169,537 185,353 185,353 218,582 2.5% 8.6% 25,517 25,668 26,177 25,869 25,869 26,424 0.5% 1.1%

Ford Motor Company 144,077 149,558 151,800 156,776 156,776 146,337 2.9% (3.4%) 11,324 15,079 12,296 12,810 12,810 12,817 4.2% 0.0%

General Motors Company 155,929 152,356 166,380 145,588 145,588 145,940 (2.3%) 0.1% 10,160 15,518 20,671 23,745 23,745 18,076 32.7% (12.8%)

Harley-Davidson, Inc. 6,229 5,995 5,996 5,647 5,647 4,977 (3.2%) (6.1%) 1,452 1,330 1,240 1,120 1,120 1,071 (8.3%) (2.2%)

Navistar International Corporation 10,806 10,140 8,111 8,570 8,570 9,929 (7.4%) 7.6% 295 567 474 658 658 841 NM 13.0%

Oshkosh Corp 6,808 6,098 6,279 6,830 6,830 7,719 0.1% 6.3% 622 523 518 626 626 786 0.2% 12.0%

PACCAR Inc 18,997 19,115 17,005 19,469 19,469 21,152 0.8% 4.2% 2,899 3,198 2,939 3,433 3,433 2,615 5.8% (12.7%)

Toyota Motor Corp. 247,980 236,533 255,078 274,095 279,190 284,946 3.4% 2.0% 38,164 36,457 34,060 30,193 31,042 32,835 (7.5%) 4.3%

Volkswagen AG Pref 268,549 236,524 240,340 286,103 298,734 308,393 2.1% 3.8% 36,343 26,777 37,788 41,383 45,401 46,043 4.4% 5.5%

Total $1,138,291 $1,084,281 $1,124,689 $1,209,983 $1,231,459 $1,277,650 0.3% 2.6% $148,510 $144,420 $155,533 $158,178 $162,994 $160,617 2.9% 1.0%

PAGE |


SOURCES


1. FactSet.

2. MergerMarket.

3. Pitchbook.

Harris Williams & Co. (www.harriswilliams.com) 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.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co.Ltd, which is a private limited company 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 (registration number 07078852). Harris Williams & Co. Ltd is authorized and regulatedby the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conductbusiness.

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.

Copyright© 2018 Harris Williams & Co., all rights reserved.

DISCLOSURES

11


http://www.harriswilliams.com/

transportation & logistics...instant accessibility, and diversity of form and function....

Documents