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Harris Williams & Co. Ltd is a private limited company incorporated under English law having 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, authorised and regulated by the Financial Conduct Authority.

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.

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ MARCH 2016

PAGE |

www.harriswilliams.de



WHAT WE’RE READING

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

MARYLAND BILL WOULD REQUIRE OE REPAIR PARTS FOR FIRST 2 YEARS

The recurring debate over the use of original-equipment vs. aftermarket parts forvehicle repairs has taken a new twist in Maryland. A proposed state law therewould mandate the use of OE parts for the first two years of a vehicle’s life. The billwould require auto body repairers to use OE parts exclusively for the first two yearsafter a vehicle’s date of manufacture, and would also require insurancecompanies that pay for repairs to approve only OE parts. For older vehicles, the billwould limit repairs to either OE parts or “certified” replacement parts.

Automotive News

GENERAL MOTORS TO BUY CRUISE AUTOMATION

General Motors on March 11th said that it was acquiring the software firm CruiseAutomation as part of its larger effort to develop fully autonomous vehicles. G.M.has been aggressively expanding its portfolio of new businesses dedicated todriverless cars and other personal mobility options like ride-hailing services. WhileG.M. did not disclose the terms of the latest deal, two people with knowledge ofthe acquisition said the automaker agreed to pay more than $1 billion in cash andstock for Cruise. Founded in 2013, Cruise has been successful in adaptingconventional cars to operate on highways with self-driving features. The companyinstalls sensors, computer equipment and other devices that can control steering,braking and acceleration.

New York Times

CAR SALES, MILES DRIVEN SPUR AUTOMOTIVE AFTERMARKET GROWTH

The automotive aftermarket industry grew to $14.6 billion in 2015, with dollar salesincreasing by 3.9 percent and units/quarter by 1.7 percent, according to The NPDGroup. While dollar sales have been accelerating since 2013, unit/quarter saleshave been down, and 2015 marked the first year in which both ended positively.New and used car sales, an increase in miles driven and atypical weather werefactors that influenced the aftermarket’s strong performance during the year. NPDforecasts that automotive aftermarket retail sales will reach $15.1 billion in 2016,growing the industry by 2.7 percent for the year. Tying in with that, NPD estimatesthat miles driven will return to a more modest growth rate of around 1.9 percent.

Body Shop Business

New-vehicle retail sales in February are projected to reach 1,046,700 units from968,316 in February 2015, with the same number of selling days, 24 days, as lastyear. The seasonally adjusted annualized rate (SAAR) for retail sales in February2016 is expected to reach 13.9 million units, up significantly from 12.8 million units inFebruary 2015 and the strongest retail SAAR in the month of February since 2002when it was 14.7 million.

J.D. Power

NEW-VEHICLE SALES IN FEBRUARY FORECAST TO INCREASE 8.1%

According to the CCC’s 2016 Crash Course report the auto claims and collisionrepair industries are at an ‘inflection point’ as vehicle technology, driving data,mobility and analytics converge and gain momentum. “As an industry, we’vebeen discussing, and slowly moving toward many of these trends, including thegrowing sophistication of vehicle technology, mobility, telematics and analytics.For the first time, these trends are being acted upon broadly, across national,regional and local auto insurers and collision repairers, and the impact to ourindustry is significant.” said Susanna Gotsch, Lead Industry Analyst, CCC.

CCC

AUTO CLAIMS AND COLLISION REPAIR AT AN INFLECTION POINT

http://www.harriswilliams.com/

mailto:[email protected]








http://www.autonews.com/article/20160311/OEM11/160319965/md.-bill-would-require-oe-repair-parts-for-first-2-years

http://www.nytimes.com/2016/03/12/business/general-motors-to-buy-cruise-automation-in-push-for-self-driving-cars.html?_r=0

http://www.bodyshopbusiness.com/npd-reports-car-sales-miles-driven-spur-automotive-aftermarket-growth/

http://www.jdpower.com/press-releases/jd-power-and-lmc-automotive-forecast-february-2016

http://www.cccis.com/crash-course-2016/

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M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



Date Target Business Description Acquirer

3/11/2016 Cruise Automation, Inc. Develops and manufactures autonomous vehicle technologies. General Motors Company

2/29/2016* Pittsburgh Glass Works LLC Manufactures and distributes automotive glass in the United States and

internationally.

LKQ Corp.

2/17/2016 Texas Hydraulics, Inc. Operates as a custom manufacturer of fluid power components for

original equipment manufacturers.

Wynnchurch Capital, LLC

2/9/2016 Trans-Safety LOCKS GmbH Manufactures and markets anti-theft protection products for the

transport industry.

WABCO Holdings Inc.

2/3/2016* PurePOWER Technologies, LLC Offers research and development, engineering, and manufacturing of

engine control and emissions management solutions.

Smithfield Group LLP;

Kensington Capital Partners,

LLC

2/2/2016 UGN, Inc. Manufactures acoustic, interior trim, and thermal management

products for the automotive industry.

Angeles Equity Partners

2/2/2016* Key Safety Systems, Inc. Designs, develops, and manufactures automotive safety-critical

components and systems for automotive and non-automotive markets

worldwide.

Ningbo Joyson Electronic

Corp.

2/2/2016 MICO, Incorporated Manufactures and sells hydraulic components, controls, and brake

systems primarily for off-road vehicles worldwide.

WABCO Holdings Inc.

1/28/2016 Save-A-Load, Inc. Manufactures cargo load bars for tractor trailers, light duty/commercial

vehicles, sprinter vans, SUVs, and pick-up trucks.

Fleet Engineers, Inc.

1/12/2016 H&S Autoshot Manufacturing Co.,

Ltd.

Manufactures stud welders for the automotive industry. Nu-Tec Systems, LLC

1/11/2016 Drake Automotive Group, Inc. Manufactures and markets auto parts for new and v intage American

muscle cars and recreational off-road vehicles.

Huron Capital Partners, LLC

1/5/2016* TowerSec Inc. Operates as an automotive cyber security vendor which develops and

provides on-board cyber security software to OEMs, suppliers, and

aftermarket telematics manufacturers.

Harman International

Industries, Incorporated

12/21/2015 Big Tex Trailer Manufacturing, Inc. Manufactures professional grade open trailers in North America. Bain Capital Private Equity

12/16/2015 Colwood-Langford Auto Supply

and B.H. McFarlane Automotive

Wholesaler of automotive parts and paint products. Uni-Select Inc.

12/8/2015 Aquia Auto Parts, Inc. Distributes paints, coatings, and other finishes to the automotive market. Finishmaster Inc.

12/7/2015 Pep Boys - Manny, Moe & Jack Engages in the automotive aftermarket serv ice and retail business,

offering a range of automotive maintenance and repair serv ices.

Icahn Enterprises, L.P.

11/24/2015 Dynojet Research, Inc. Develops and manufactures fuel management and diagnostic

products.

I rv ing Place Capital; New

Value Capital

11/19/2015 Colorado Components, Inc. Manufactures wheel alloys, tires, and accessories for all-terrain

vehicles, utility-terrain vehicles, low speed vehicles, recreational

vehicles, side by sides, and golf carts.

Wheel Pros, LLC

*Denotes pending transactions

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PUBLIC MARKETS OVERVIEW

3


TEV / LTM EBITDA TEV / 2016P EBITDA

AVERAGE REVENUE GROWTH (2012 – 2015E) AVERAGE REVENUE GROWTH (2015E – 2017P)

AVERAGE EBITDA GROWTH (2012 – 2015E) AVERAGE EBITDA GROWTH (2015E – 2017P)


5.6x

8.3x

11.9x

12.3x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

5.7x

8.7x

10.9x

11.4x

Suppliers



Providers


0.7%

4.4%

6.6%

15.0%

Suppliers




Providers

2.3%

2.8%

4.4%

7.7%



Suppliers


Providers

2.4%

7.8%

13.7%

16.5%

Suppliers




Providers

2.2%

7.2%

7.8%

12.4%



Providers


Suppliers

PAGE |

STOCK PRICE PERFORMANCE

4


(Indexed to March 13, 2015)

TRAILING TWELVE MONTHS

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


(40%)

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

Mar-15 Jun-15 Sep-15 Dec-15 Mar-16

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

7.3%

10.0%

13.4%

19.5%

20.2%

S&P 500

Vehicle

Manufacturers

Distributors and

Retailers

Dealerships and

Service Providers

Suppliers

(24.0%)

(19.1%)

(15.7%)

(2.5%)

22.5%

Vehicle

Manufacturers

Suppliers

Dealerships and

Service Providers

S&P 500

Distributors and

Retailers

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.


RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE

THIRD-PARTY LOGISTICS

AIR TRANSPORTATION

5


a portfolio company of

has been acquired byhas been acquired by


has been acquired by


and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by











has acquired





http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

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

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

Energy, Power& Infrastructure

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, 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

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

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

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

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.

6

OUR FIRM



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PUBLIC COMPARABLES

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 Mar-15 Sep-15 Current 2016P 2017P

Automotive Aftermarket

TEV / LTM EBITDA as of

Suppliers

BorgWarner Inc. $9,638 $34.63 19.3% (40.9%) $62.70 55.2% 9.9x 8.0x 7.1x 6.5x 6.0x

Cooper Tire & Rubber Co. 1,977 38.54 13.3% 1.5% 43.94 87.7% 3.9x 4.2x 3.6x 4.0x 4.4x

Dorman Products, Inc. 1,739 52.19 25.1% 12.6% 53.75 97.1% 10.5x 11.4x 10.7x 9.9x 9.2x

Federal-Mogul Holdings Corporation 4,452 8.59 116.9% (32.9%) 14.00 61.4% 7.6x 7.3x 7.7x 6.5x 6.0x

The Goodyear Tire & Rubber Company 13,021 31.90 21.1% 27.2% 35.30 90.4% 5.2x 5.6x 5.6x 5.0x 4.9x

Modine Manufacturing Company 532 9.51 15.4% (24.3%) 13.82 68.8% 6.2x 5.4x 5.2x 4.7x 4.4x

Motorcar Parts of America, Inc. 686 36.58 19.1% 43.5% 41.03 89.2% 12.6x 15.8x NM 8.5x 7.5x

Standard Motor Products Inc. 752 31.97 (8.8%) (22.9%) 45.72 69.9% 7.9x 7.4x 6.9x 6.9x 6.1x

Tenneco Inc. 3,709 46.97 32.0% (15.4%) 61.73 76.1% 5.9x 5.3x 4.8x 4.5x 4.3x

Visteon Corporation 648 74.55 23.2% (24.0%) 121.65 61.3% NM 2.5x 2.5x 2.0x 1.8x

Median 20.2% (19.1%) 73.0% 7.6x 6.5x 5.6x 5.7x 5.5x


Advance Auto Parts Inc. $12,590 $156.15 10.4% 6.0% $201.24 77.6% 8.9x 11.1x 10.2x 9.2x 8.8x

AutoZone, Inc. 28,368 788.36 13.4% 22.5% 803.25 98.1% 11.7x 12.0x 12.4x 11.9x 11.2x

Genuine Parts Company 14,506 93.92 10.1% 1.7% 96.66 97.2% 11.6x 10.4x 11.5x 10.9x 10.4x

LKQ Corp. 10,830 30.50 22.4% 26.3% 32.25 94.6% 11.5x 13.0x 12.7x 11.5x 10.4x

O'Reilly Automotive Inc. 27,334 268.14 14.8% 31.3% 277.96 96.5% 14.9x 15.5x 15.7x 14.2x 13.1x

U.S. Auto Parts Network, Inc. 123 3.07 15.0% 15.4% 3.28 93.6% 19.5x NM NM 11.4x 9.7x

Uni-Select Inc. 882 41.62 (7.5%) 30.3% 54.29 76.7% 9.7x 9.4x 9.8x 9.2x 8.5x

Median 13.4% 22.5% 94.6% 11.6x 11.6x 11.9x 11.4x 10.4x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,210 $58.77 27.6% (22.1%) $96.58 60.8% 12.2x 12.0x 9.7x 9.8x 9.5x

AutoNation, Inc. 11,384 50.03 11.9% (17.7%) 67.50 74.1% 13.2x 12.3x 11.4x 10.6x 10.0x

Boyd Group Income Fund 956 49.21 2.7% 44.4% 53.37 92.2% 12.2x 13.5x 13.8x 10.8x 9.5x

CarMax Inc. 20,550 50.98 19.5% (17.8%) 75.40 67.6% 19.8x 18.4x 17.4x 17.3x 16.1x

Copart, Inc. 5,007 40.09 19.6% 8.9% 40.25 99.6% 12.3x 11.3x 12.4x 11.6x 10.8x

Group 1 Automotive Inc. 4,153 57.99 8.0% (24.6%) 97.34 59.6% 11.1x 11.3x 10.0x 10.2x 9.6x

KAR Auction Services, Inc. 7,952 36.72 14.2% (1.0%) 39.87 92.1% 13.5x 12.7x 12.3x 10.9x 9.9x

Lithia Motors Inc. 4,540 91.99 21.5% 2.9% 126.56 72.7% 15.6x 14.4x 11.9x 11.2x 10.5x

Monro Muffler Brake Inc. 2,485 68.01 7.7% 7.8% 77.00 88.3% 16.0x 14.7x 15.8x 15.3x 13.1x

Penske Automotive Group, Inc. 8,163 39.28 30.5% (19.4%) 54.39 72.2% 14.9x 14.2x 12.7x 12.2x 11.4x

Sonic Automotive Inc. 3,245 19.67 19.9% (15.7%) 25.77 76.3% 10.6x 11.0x 10.5x 10.7x 10.2x

Median 19.5% (15.7%) 74.1% 13.2x 12.7x 12.3x 10.9x 10.2x

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PUBLIC COMPARABLES

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 Mar-15 Sep-15 Current 2016P 2017P


TEV / LTM EBITDA as of


Bayerische Motoren Werke Aktiengesellschaft $147,233 $84.31 8.8% (36.7%) $138.13 61.0% 11.8x 10.4x 10.2x 8.9x 8.7x

Daimler AG 171,701 69.86 5.4% (32.1%) 107.27 65.1% 9.5x 10.7x 6.8x 7.9x 7.7x

Ford Motor Co. 161,605 13.15 13.5% (16.5%) 16.74 78.6% 19.7x 13.4x 10.1x 13.3x 12.9x

General Motors Company 90,863 30.82 7.5% (18.4%) 39.00 79.0% 9.1x 6.0x 6.6x 5.7x 5.6x

Harley-Davidson, Inc. 15,210 47.63 21.2% (23.4%) 62.96 75.7% 12.3x 12.1x 11.2x 11.1x 10.7x

Navistar International Corporation 5,338 11.07 47.2% (62.9%) 31.28 35.4% 19.2x 18.8x 14.3x 8.8x 7.9x

Oshkosh Corporation 3,627 36.59 15.4% (22.3%) 55.69 65.7% 7.5x 7.3x 7.5x 8.4x 7.4x

PACCAR Inc. 23,454 51.78 3.8% (15.1%) 68.44 75.7% 11.0x 9.2x 8.5x 10.8x 10.8x

Toyota Motor Corporation 298,720 54.12 (6.1%) (24.6%) 77.24 70.1% 10.5x 9.2x 7.4x 8.6x 8.8x

Volkswagen AG 158,245 121.55 11.1% (55.1%) 293.06 41.5% 9.4x 7.5x 8.1x 5.4x 4.9x

Median 10.0% (24.0%) 67.9% 10.8x 9.8x 8.3x 8.7x 8.3x

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PUBLIC COMPARABLES

9



Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P


Suppliers

BorgWarner Inc. $7,183 $7,437 $8,305 $8,023 $9,088 $9,533 3.8% 9.0% $1,126 $1,224 $1,398 $1,362 $1,493 $1,582 6.6% 7.8%

Cooper Tire & Rubber Co. 4,201 3,439 3,425 2,973 3,017 3,073 (10.9%) 1.7% 629 483 516 555 492 458 (4.1%) (9.2%)

Dorman Products, Inc. 570 664 751 803 855 901 12.1% 5.9% 112 138 152 162 175 188 13.0% 7.7%

Federal-Mogul Holdings Corporation 6,444 6,786 7,317 7,419 7,600 7,870 4.8% 3.0% 439 555 578 575 687 737 9.4% 13.2%

The Goodyear Tire & Rubber Company 20,992 19,540 18,138 16,443 16,143 16,306 (7.8%) (0.4%) 1,819 2,132 2,251 2,336 2,652 2,703 8.7% 7.6%

Modine Manufacturing Company 1,577 1,376 1,478 1,496 1,354 1,337 (1.7%) (5.5%) 128 96 116 109 113 121 (5.3%) 5.5%

Motorcar Parts of America, Inc. 179 213 259 302 377 431 19.1% 19.6% 31 37 35 36 81 92 5.5% 59.8%

Standard Motor Products Inc. 949 984 980 972 1,006 1,048 0.8% 3.8% 102 120 126 110 109 123 2.4% 6.2%

Tenneco Inc. 7,363 7,964 8,420 8,209 8,491 8,937 3.7% 4.3% 638 695 736 772 831 880 6.6% 6.7%

Visteon Corporation 5,715 1,724 2,586 3,245 3,240 3,432 (17.2%) 2.8% 479 55 125 259 324 363 (18.5%) 18.4%

Total $55,173 $50,127 $51,659 $49,885 $51,171 $52,868 0.7% 4.4% $5,503 $5,535 $6,033 $6,276 $6,957 $7,247 2.4% 12.4%


Advance Auto Parts Inc. $6,205 $6,494 $9,844 $9,737 $9,760 $9,945 16.2% 1.1% $847 $969 $1,381 $1,233 $1,376 $1,456 13.4% 8.7%

AutoZone, Inc. 8,604 9,148 9,475 10,187 10,734 11,294 5.8% 5.3% 1,841 2,000 2,081 2,223 2,386 2,537 6.5% 6.8%

Genuine Parts Company 13,014 14,078 15,342 15,280 15,500 15,955 5.5% 2.2% 1,114 1,209 1,273 1,266 1,306 1,384 4.4% 4.6%

LKQ Corp. 4,123 5,063 6,740 7,193 7,739 8,302 20.4% 7.4% 493 627 790 852 938 1,030 20.0% 9.9%

O'Reilly Automotive Inc. 6,182 6,649 7,216 7,967 8,555 9,147 8.8% 7.2% 1,159 1,291 1,468 1,743 1,913 2,082 14.6% 9.3%

U.S. Auto Parts Network, Inc. 304 255 284 291 303 NA (1.4%) NA 8 5 5 6 11 NA (8.5%) NA

Uni-Select Inc. 1,798 1,788 1,784 1,355 1,139 1,182 (9.0%) (6.6%) 79 82 92 90 96 104 4.4% 7.5%

Total $40,229 $43,474 $50,685 $52,010 $53,730 $55,825 6.6% 2.8% $5,540 $6,182 $7,091 $7,414 $8,025 $8,593 7.8% 7.8%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $4,475 $5,128 $5,639 $6,325 $6,841 $7,234 12.2% 6.9% $210 $259 $297 $332 $335 $339 16.5% 1.1%

AutoNation, Inc. 15,020 16,674 18,180 19,847 22,565 23,316 9.7% 8.4% 737 826 911 998 1,064 1,120 10.6% 5.9%

Boyd Group Income Fund 329 438 639 879 994 1,098 38.7% 11.8% 21 31 52 74 88 99 52.8% 15.3%

CarMax Inc. 10,004 10,963 12,574 14,269 15,142 16,404 12.6% 7.2% 783 828 932 1,091 1,186 1,275 11.7% 8.1%

Copart, Inc. 924 1,046 1,163 1,146 1,209 1,274 7.4% 5.4% 338 351 362 389 427 459 4.7% 8.6%

Group 1 Automotive Inc. 7,216 8,607 9,571 10,224 11,327 11,691 12.3% 6.9% 271 322 390 416 407 447 15.4% 3.7%

KAR Auction Services, Inc. 1,963 2,173 2,365 2,640 2,942 3,165 10.4% 9.5% 471 495 574 644 733 795 11.0% 11.1%

Lithia Motors Inc. 3,204 3,867 5,200 7,581 8,580 8,973 33.3% 8.8% 166 210 266 383 394 427 32.2% 5.7%

Monro Muffler Brake Inc. 687 732 831 894 952 1,050 9.2% 8.3% 115 101 127 147 163 190 8.4% 13.7%

Penske Automotive Group, Inc. 12,584 14,112 16,796 18,807 20,431 21,274 14.3% 6.4% 417 489 571 645 673 705 15.6% 4.6%

Sonic Automotive Inc. 8,115 8,571 8,897 9,298 9,936 10,232 4.6% 4.9% 288 300 304 309 301 321 2.3% 1.8%

Total $64,522 $72,312 $81,857 $91,908 $100,918 $105,711 15.0% 7.7% $3,818 $4,212 $4,785 $5,428 $5,772 $6,178 16.5% 7.2%

PAGE |

PUBLIC COMPARABLES

10




Bayerische Motoren Werke Aktiengesellschaft $57,296 $63,981 $62,738 $88,995 $102,394 $105,812 15.8% 9.0% $11,820 $11,724 $13,502 $15,800 $16,242 $16,982 10.2% 3.7%

Daimler AG 105,477 112,497 115,527 127,163 164,718 171,318 6.4% 16.1% 12,119 12,120 20,220 25,231 21,728 22,613 27.7% (5.3%)

Ford Motor Co. 128,168 126,567 139,369 135,782 138,865 145,090 1.9% 3.4% 11,464 19,724 8,132 16,017 12,266 12,175 11.8% (12.8%)

General Motors Company 148,866 150,295 152,092 151,092 145,110 147,032 0.5% (1.4%) 10,914 10,741 9,084 13,690 16,104 15,963 7.8% 8.0%

Harley-Davidson, Inc. 4,662 4,943 5,258 5,568 5,322 5,365 6.1% (1.8%) 1,198 1,321 1,460 1,362 1,351 1,423 4.4% 2.2%

Navistar International Corporation 13,441 12,527 10,617 10,653 10,213 8,919 (7.5%) (8.5%) (468) (423) 152 425 605 695 NM 27.8%

Oshkosh Corporation 7,539 8,141 7,665 6,808 6,076 5,822 (3.3%) (7.5%) 511 636 622 517 435 501 0.4% (1.6%)

PACCAR Inc. 15,326 15,952 15,949 17,793 18,068 16,361 5.1% (4.1%) 1,927 2,047 2,446 2,768 2,149 2,216 12.8% (10.5%)

Toyota Motor Corporation 156,712 153,998 183,917 213,803 237,858 250,313 10.9% 8.2% 12,518 22,125 31,157 36,580 33,463 33,777 43.0% (3.9%)

Volkswagen AG 158,665 192,979 195,414 198,245 238,107 237,461 7.7% 9.4% 21,676 21,328 22,897 25,490 29,883 33,500 5.6% 14.6%

Total $796,151 $841,879 $888,546 $955,902 $1,066,730 $1,093,493 4.4% 2.3% $83,677 $101,342 $109,672 $137,880 $134,228 $139,845 13.7% 2.2%

Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P 2012 2013 2014 2015E 2016P 2017P '12-15E '15E-17P


PAGE |


SOURCES


1. Capital IQ.

2. MergerMarket.

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

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