TRANSPORTATION & LOGISTICS - Harris Williams & Co....Conditioning Co., Ltd. 11/27/2017 Transguard...

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ DECEMBER 2017

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 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 regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

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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 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

The American Vision for Safer Transportation through Advancement ofRevolutionary Technologies (AV START), the autonomous vehicle (AV) bill passedby the Senate in October, may have implications for the automotive aftermarketindustry.

Bill Long, president of the Automotive Aftermarket Suppliers Association, the lightvehicle aftermarket division of MEMA, said the committee would ensureconsumers maintained the right to repair.

“Data access to the automotive aftermarket is vital to ensuring motorists retainfreedom of choice for vehicle repair,” he said to Barlas. “We are encouraged forthis amendment. We look forward to working with the advisory committee on thisimportant issue.”

glassBYTEs.com

SENATE AUTONOMOUS VEHICLE BILL AND THE AFTERMARKET INDUSTRY

WHAT WE’RE READING

Openbay announced it has partnered with eBay Motors to provide the availabilityof millions of searchable automotive parts and accessories for its onlinemarketplace for auto repair and service. This selection features a wide spectrumof value including genuine OEM automotive parts, white label parts, nationalbrand aftermarket parts, remanufactured and used parts, as well as hard-to-findparts that are no longer manufactured.

“By collaborating with Openbay, we are making it extremely easy for automotiverepair businesses to get their hands on the parts they need, when they needthem,” said Jordan Hettinga, director of category management at eBay Motors.“With millions of items available on eBay – everything from OEM to hard-to-findparts, we’re arming the Openbay community with the access to this inventory.With our wide spectrum of value, we’re hoping to save customers time, money, allwhile improving their profitability.”

Aftermarket News

EBAY TO EXPAND AUTOMOTIVE PARTS SALES TO AFTERMARKET INDUSTRY

Auto-parts maker Gates Industrial Corp. has filed for an initial public offering, morethan three years after private-equity giant Blackstone Group bought the business.

Denver-based Gates, which makes power transmission belts and fluid powerproducts, had sales of $2.75 billion last year.

The company previously operated under the Gates Corp. name. In August, TheWall Street Journal reported that Blackstone was considering an IPO of Gates thatcould value the company as high as $9 billion. It isn’t clear whether that includesdebt.

The Wall Street Journal

AUTO-PARTS MAKER GATES INDUSTRIAL FILES FOR IPO

The accessories market is bigger than ever, but dealerships still aren't taking fulladvantage of it. From fuzzy dice to satellite navigation, auto accessories are a $40billion-a-year business — generating more revenue, by some accounts, thancollision repair. Profit margins on accessories sales routinely approach 50 percent.

As new-vehicle sales and profits stall after years of growth, franchised dealershipsin the U.S. must look elsewhere to pick up the revenue slack. Dealerships andautomakers have ample opportunities to increase their share of the accessoriesmarket, now dominated by aftermarket providers, and to build customer loyalty inthe process.

Mark Seng, global aftermarket practice leader at the data analysis firm IHS Markit,says "dealerships are getting aggressive across the board" about sellingaccessories, "and OEMs are focusing on the aftermarket, too."

Automotive News

AUTOMOTIVE ACCESSORIES MARKET POISED FOR GROWTH

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mailto:[email protected]








https://www.glassbytes.com/2017/12/senate-autonomous-vehicle-bill-poses-implications-for-aftermarket-industry/

http://www.aftermarketnews.com/ebay-partners-openbay-expand-automotive-parts-sales-aftermarket-industry/

https://www.wsj.com/articles/auto-parts-maker-gates-industrial-files-for-ipo-1514423705

http://www.autonews.com/article/20171218/RETAIL05/171219872/accessory-sales-dealerships-tips

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M&A TRANSACTIONS(1)

2

RECENT M&A TRANSACTIONS



*Denotes pending transactions

Date Target Business Description Acquirer

12/19/2017 Spectrum Coatings Distributes and wholesale automotive and industrial paint products FinishMaster

12/14/2017* Brink Group BV Provides towing solutions and offers racks, containers, carriers, and

storage units for cars, trucks, and recreational vehicles

Horizon Global Corp.

12/14/2017* WITTE Stromberg GmbH Manufactures hinges for the automotive industry WITTE Stromberg GmbH

/Private Group/

12/14/2017* Ryds Bilglas AB Provides automobile glass repair, replacement and installation serv ices

include glazing, railings, décor with glass and window film

Triona Holding SA

12/13/2017 Visteon Corp. /FR Automotive

Electronic Unit/

Manufactures automotive electronic parts American Industrial

Acquisition Corp.

12/12/2017 H.J. Küpper GmbH & Co. KG /3

Subs/

Manufactures machined castings for automotive industry PCS Machine Group Holding

Public Co., Ltd.

12/11/2017* Auto Systems Experts, Inc. Prov ides automotive repair serv ices Leeds West Groups

12/7/2017 KKSP Precision Machining LLC Produces automatic screw machine products including custom

engineering and design, volume material purchasing, and light assembly

serv ices

Mill Point Capital LLC

12/5/2017* REGE Motorenteile GmbH Manufactures machining and assembly components and offers

automotive, green tech and industry/highways products

JD Norman Industries, Inc.

12/4/2017 Melett Ltd. Prov ides automotive products and serv ices and offers turbochargers,

core assemblies, turbine housings, and repair kits

Westinghouse Air Brake

Technologies Corp.

12/1/2017* Lumikko Technologies Oy Manufactures air conditioning systems for automobiles Songz Automobile Air

Conditioning Co., Ltd.

11/27/2017 Transguard Installer of automotive paint protection and window film XPEL Technologies

11/24/2017 Morrison's Garage Ltd. Operates as a new and used car dealership firm and also offers vehicle

parts and accessories

John Clark Motor Group Ltd.

11/22/2017 El Corte Inglés SA /Motortown

Bus/

Operates motor workshop centers Anjana Investments SL

11/22/2017 Henry’s Automotive Warehouse Provides fasteners, lighting products, abrasives, and specialty supplies

needs

Raybuck Auto Body Parts

11/21/2017 ADP Distributors Manufacturer of new and remanufactured turbochargers, serv ice kits,

cartridges and components

CARDONE Industries

11/20/2017 Henderson Wheel & Trailer Supply,

Inc.

Manufactures and distributes sprung and torsion, trailer components,

axles and fenders

DexKo Global, Inc.

11/16/2017* IP Motor Sports, Inc. Sells high powered engines and autos Scepter Holdings, Inc.

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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)


8.6x

10.2x

12.7x

12.8x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

8.0x

10.9x

11.4x

12.8x

Suppliers




Providers

(1.1%)

0.1%

6.2%

11.2%


Suppliers



Providers

2.4%

6.2%

6.4%

6.8%


Suppliers


Providers


2.6%

4.6%

11.1%

12.0%


Suppliers



Providers

1.6%

9.2%

9.2%

9.5%



Providers

Suppliers


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STOCK PRICE PERFORMANCE(1)

4


(Indexed to January 3rd, 2017)

TRAILING TWELVE MONTHS

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


(1.0%)

(0.8%)

2.7%

3.1%

8.3%

Dealerships and

Service Providers

Suppliers

S&P 500

Vehicle

Manufacturers

Distributors and

Retailers

(5.3%)

(1.3%)

3.3%

13.7%

20.2%

Distributors and

Retailers

Suppliers

Dealerships and

Service Providers

Vehicle

Manufacturers

S&P 500

(30%)

(20%)

(10%)

0%

10%

20%

30%

Jan-17 Apr-17 Jul-17 Oct-17 Jan-18

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

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


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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

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New Delhi

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

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

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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

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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 Jan-17 Jul-17 Current 2017P 2018P

Automotive Aftermarket

TEV / LTM EBITDA as of

Suppliers

BorgWarner Inc. $13,053 $52.04 (5.4%) 29.9% $55.86 93.2% 7.0x 7.2x 8.3x 8.0x 7.5x

Cooper Tire & Rubber Company 1,988 35.35 (2.8%) (8.9%) 44.50 79.4% 3.4x 3.9x 3.9x 4.8x 4.5x

Dorman Products, Inc. 2,227 69.11 3.0% (6.0%) 88.50 78.1% 12.8x 13.6x 11.1x 11.1x 9.8x

Goodyear Tire & Rubber Company 13,854 31.86 (0.8%) 2.1% 37.20 85.6% 5.1x 6.0x 6.3x 6.5x 5.7x

Modine Manufacturing Company 1,534 21.15 (6.4%) 39.1% 23.95 88.3% 8.5x 9.4x 8.9x 8.1x 7.1x

Motorcar Parts of America, Inc. 570 27.55 8.6% (1.3%) 31.57 87.3% 9.3x 8.0x 8.6x 6.6x 5.7x

Standard Motor Products, Inc. 1,093 45.09 1.5% (16.1%) 54.73 82.4% 10.5x 10.1x 8.9x 10.0x 8.3x

Tenneco Inc. 4,626 59.57 1.9% (7.1%) 70.96 83.9% 6.2x 7.2x 7.4x 5.3x 4.9x

Visteon Corporation 3,834 127.68 (2.4%) 57.7% 133.04 96.0% 7.8x 8.8x 10.5x 10.4x 9.6x

Median (0.8%) (1.3%) 85.6% 7.8x 8.0x 8.6x 8.0x 7.1x


Advance Auto Parts, Inc. $8,614 $107.05 7.8% (37.3%) $177.50 60.3% 12.7x 10.1x 10.1x 9.5x 8.6x

AutoZone, Inc. 25,738 749.43 10.5% (5.3%) 800.00 93.7% 11.9x 9.0x 10.6x 10.7x 10.4x

Genuine Parts Company 15,272 97.30 4.8% 1.7% 100.90 96.4% 12.3x 12.1x 12.9x 12.2x 10.3x

LKQ Corporation 15,790 41.56 5.7% 33.9% 41.67 99.7% 12.6x 12.2x 14.5x 14.2x 12.6x

O'Reilly Automotive, Inc. 25,208 253.84 8.3% (9.6%) 283.97 89.4% 15.1x 11.7x 12.9x 12.9x 12.2x

U.S. Auto Parts Network, Inc. 110 2.71 23.7% (22.1%) 4.13 65.6% 13.7x 16.1x 12.7x 7.9x 7.4x

Uni-Select Inc. 1,393 22.77 8.4% 1.5% 27.36 83.2% 9.9x 10.8x 12.2x 11.4x 9.4x

Median 8.3% (5.3%) 89.4% 12.6x 11.7x 12.7x 11.4x 10.3x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,003 $63.50 (4.2%) 1.6% $71.00 89.4% 9.6x 9.2x 9.2x 9.4x 9.3x

AutoNation, Inc. 9,617 53.75 (2.3%) 9.1% 57.83 92.9% 9.6x 9.3x 10.6x 11.0x 10.6x

Boyd Group Income Fund 1,863 80.17 4.2% 25.3% 81.51 98.4% 13.6x 14.6x 17.9x 16.3x 13.2x

CarMax, Inc. 24,914 66.94 (2.1%) 3.3% 77.64 86.2% NM NM NM 18.5x 17.6x

Copart, Inc. 10,721 43.39 0.9% 55.7% 44.76 96.9% 15.1x 15.4x 19.1x 19.9x 16.6x

Group 1 Automotive, Inc. 4,179 72.36 (10.7%) (9.0%) 84.47 85.7% 10.5x 10.4x 10.0x 11.2x 10.5x

KAR Auction Services, Inc. 10,543 51.17 2.0% 18.1% 51.52 99.3% 12.9x 11.6x 13.0x 12.5x 11.6x

Lithia Motors, Inc. Class A 5,610 116.72 (0.7%) 19.0% 123.50 94.5% 12.0x 11.2x 12.6x 12.8x 11.6x

Monro Inc 2,340 58.65 16.6% 2.4% 61.10 96.0% 13.7x 10.9x 13.8x 13.3x 11.9x

Penske Automotive Group, Inc. 9,991 48.21 (1.0%) (7.8%) 55.26 87.2% 14.6x 13.8x 14.4x 13.2x 12.5x

Sonic Automotive, Inc. Class A 3,186 18.35 (14.3%) (20.4%) 27.45 66.8% 10.8x 10.8x 10.4x 10.4x 10.6x

Median (1.0%) 3.3% 92.9% 12.4x 11.1x 12.8x 12.8x 11.6x

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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 Jan-17 Jul-17 Current 2017P 2018P


TEV / LTM EBITDA as of


Bayerische Motoren Werke AG $169,929 $104.44 5.3% 10.7% $105.54 99.0% 8.1x 9.7x 10.4x 9.6x 9.5x

Daimler AG 208,787 85.60 5.6% 14.3% 86.03 99.5% 7.0x 8.2x 10.0x 8.8x 8.6x

Ford Motor Company 162,142 12.76 1.4% 1.4% 13.27 96.2% 12.6x 12.5x 13.2x 14.0x 13.2x

General Motors Company 133,752 42.82 0.1% 21.8% 46.76 91.6% 5.5x 5.1x 6.0x 7.2x 7.9x

Harley-Davidson, Inc. 14,789 50.10 0.1% (15.0%) 63.40 79.0% 13.4x 13.8x 16.6x 13.1x 12.6x

Navistar International Corporation 8,032 44.14 10.0% 38.6% 47.47 93.0% 13.9x 15.7x 12.2x 13.8x 10.9x

Oshkosh Corp 7,359 92.03 3.5% 38.9% 94.16 97.7% 10.4x 9.6x 11.7x 11.8x 10.9x

PACCAR Inc 31,386 73.91 6.1% 13.2% 75.68 97.7% 9.7x 9.8x 10.0x 10.2x 9.2x

Toyota Motor Corp. 327,085 64.18 2.7% 10.1% 64.59 99.4% 9.0x 8.8x 9.8x 11.6x 11.1x

Volkswagen AG Pref 260,052 206.13 0.2% 41.3% 213.79 96.4% 5.3x 5.9x 6.8x 6.5x 6.0x

Median 3.1% 13.7% 97.0% 9.3x 9.6x 10.2x 10.9x 10.2x

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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 $9,694 $10,409 6.9% 7.1% $1,224 $1,385 $1,330 $1,507 $1,627 $1,753 7.2% 7.8%

Cooper Tire & Rubber Company 3,439 3,421 2,959 2,925 2,845 2,995 (5.3%) 1.2% 394 436 541 592 421 447 14.6% (13.2%)

Dorman Products, Inc. 664 751 803 860 911 1,007 9.0% 8.2% 138 153 162 188 200 226 10.7% 9.8%

Goodyear Tire & Rubber Company 19,540 18,138 16,443 15,158 15,220 15,502 (8.1%) 1.1% 2,107 2,251 2,349 2,520 2,137 2,420 6.1% (2.0%)

Modine Manufacturing Company 1,478 1,496 1,353 1,503 1,998 2,109 0.6% 18.4% 121 110 114 124 189 217 0.8% 32.2%

Motorcar Parts of America, Inc. 259 302 369 421 453 490 17.7% 7.9% 46 38 49 67 86 99 13.3% 21.2%

Standard Motor Products, Inc. 984 980 972 1,058 1,104 1,140 2.5% 3.8% 107 113 92 121 109 132 4.3% 4.3%

Tenneco Inc. 7,964 8,420 8,209 8,599 9,188 9,652 2.6% 5.9% 707 752 781 764 870 945 2.6% 11.2%

Visteon Corporation 7,439 7,509 3,245 3,161 3,158 3,308 (24.8%) 2.3% 590 663 265 323 369 402 (18.2%) 11.6%

Total $49,202 $49,322 $42,377 $42,756 $44,570 $46,611 0.1% 6.2% $5,433 $5,902 $5,684 $6,206 $6,007 $6,640 4.6% 9.2%


Advance Auto Parts, Inc. $6,494 $9,844 $9,737 $9,568 $9,345 $9,555 13.8% (0.1%) $901 $1,244 $1,147 $1,068 $908 $996 5.8% (3.4%)

AutoZone, Inc. 9,148 9,475 10,187 10,636 10,889 10,889 5.2% 1.2% 2,048 2,089 2,223 2,358 2,403 2,403 4.8% 1.0%

Genuine Parts Company 14,078 15,342 15,280 15,340 16,004 18,292 2.9% 9.2% 1,117 1,273 1,266 1,217 1,263 1,489 2.9% 10.6%

LKQ Corporation 5,063 6,740 7,193 8,584 9,654 10,320 19.2% 9.6% 627 790 852 1,007 1,112 1,249 17.1% 11.3%

O'Reilly Automotive, Inc. 6,649 7,216 7,967 8,593 8,969 9,434 8.9% 4.8% 1,287 1,465 1,743 1,917 1,959 2,070 14.2% 3.9%

U.S. Auto Parts Network, Inc. 255 284 291 304 306 316 6.0% 2.0% 5 5 6 10 14 15 27.5% 25.3%

Uni-Select Inc. 1,788 1,784 1,355 1,197 1,445 1,744 (12.5%) 20.7% 92 104 94 107 122 148 5.0% 17.6%

Total $43,474 $50,685 $52,010 $54,221 $56,611 $60,549 6.2% 6.8% $6,077 $6,968 $7,331 $7,684 $7,782 $8,370 11.1% 9.5%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $5,335 $5,868 $6,588 $6,528 $6,454 $6,568 7.0% 0.3% $270 $313 $331 $334 $320 $327 7.4% (1.0%)

AutoNation, Inc. 17,518 19,109 20,862 21,609 21,401 21,816 7.2% 0.5% 843 909 998 971 875 912 4.8% (3.1%)

Boyd Group Income Fund 561 764 918 1,047 1,256 1,458 23.1% 18.0% 40 77 79 94 115 140 33.3% 22.2%

CarMax, Inc. 12,574 14,269 15,150 15,875 17,319 18,362 8.1% 7.5% 595 724 804 713 1,354 1,404 6.2% 40.3%

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 11,061 11,274 6.9% 1.8% 346 375 408 419 375 390 6.6% (3.5%)

KAR Auction Services, Inc. 2,173 2,365 2,640 3,150 3,445 3,672 13.2% 8.0% 451 574 640 740 841 915 17.9% 11.2%

Lithia Motors, Inc. Class A 4,006 5,390 7,864 8,678 10,103 11,238 29.4% 13.8% 207 266 377 405 435 486 25.0% 9.6%

Monro Inc 831 894 944 1,022 1,135 1,209 7.1% 8.8% 127 147 161 162 178 197 8.4% 10.3%

Penske Automotive Group, Inc. 14,705 17,177 19,285 20,119 21,208 21,631 11.0% 3.7% 498 574 645 665 751 797 10.1% 9.5%

Sonic Automotive, Inc. Class A 8,843 9,197 9,624 9,732 9,828 10,000 3.2% 1.4% 300 294 307 319 306 301 2.1% (3.0%)

Total $76,512 $86,134 $95,653 $99,915 $104,657 $108,676 11.2% 6.4% $4,019 $4,617 $5,143 $5,277 $6,088 $6,408 12.0% 9.2%

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 $117,751 $121,644 1.0% 8.1% $19,443 $21,734 $19,303 $19,370 $17,829 $17,967 (0.1%) (3.7%)

Daimler AG 156,635 172,268 165,747 169,537 196,452 203,137 2.7% 9.5% 21,461 25,517 25,668 26,177 24,354 24,828 6.8% (2.6%)

Ford Motor Company 146,917 144,077 149,558 151,800 144,081 143,406 1.1% (2.8%) 13,183 11,324 15,079 12,296 11,411 12,531 (2.3%) 1.0%

General Motors Company 155,427 155,929 152,356 166,380 145,320 144,950 2.3% (6.7%) 13,284 10,160 15,518 20,671 17,024 16,000 15.9% (12.0%)

Harley-Davidson, Inc. 5,900 6,229 5,995 5,996 4,891 4,972 0.5% (8.9%) 1,324 1,452 1,330 1,240 1,130 1,170 (2.2%) (2.9%)

Navistar International Corporation 10,775 10,806 10,140 8,111 8,570 8,570 (9.0%) 2.8% (192) 295 567 474 658 658 NM 17.8%

Oshkosh Corp 7,665 6,808 6,098 6,279 6,830 6,830 (6.4%) 4.3% 644 622 523 518 626 626 (7.0%) 10.0%

PACCAR Inc 17,124 18,997 19,115 17,005 17,867 19,413 (0.2%) 6.8% 2,436 2,899 3,198 2,939 3,187 3,453 6.5% 8.4%

Toyota Motor Corp. 256,480 247,980 236,533 255,078 256,239 260,688 (0.2%) 1.1% 35,160 38,164 36,457 34,060 27,500 28,827 (1.1%) (8.0%)

Volkswagen AG Pref 261,550 268,549 236,524 240,340 277,042 287,447 (2.8%) 9.4% 30,822 36,343 26,777 37,788 39,385 44,160 7.0% 8.1%

Total $1,119,448 $1,138,291 $1,084,281 $1,124,689 $1,175,043 $1,201,056 (1.1%) 2.4% $137,565 $148,510 $144,420 $155,533 $143,105 $150,221 2.6% 1.6%

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 regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

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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