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TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE NOVEMBER 2016 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 authorised 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.

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 · TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 Investment banking services are provided

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Page 1: AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 · TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 Investment banking services are provided

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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

Page 2: AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 · TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 Investment banking services are provided

PAGE |

www.harriswilliams.com

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

AAPEX: AFTERMARKET TO GROW 3.6% ANNUALLY

The automotive aftermarket is expected to grow 3.6 percent annually over thenext six years, according to IHS Markit. Meanwhile, after reaching a new high of17.5 million units last year, new light vehicle sales are expected to level off andeven decline a bit to 17.4 million this year. Even though there will be more newcars on the road, compared with recent years, the average age of light vehicleswill extend to 11.6 years old this year, up from 11.5 years last year, and reach anaverage age of 11.8 years by 2019. This trend should lead auto repairers toreconsider the repair “sweet spot” as vehicles 12 years and older will continue tobe a large percentage of vehicles in operation.

Tire Business

CONSUMER REPORTS: ALL-NEW CARS HAVE MORE PROBLEMS

All-new or completely redesigned cars and SUVs tend to have the most problems.Basically, the latest thing is also the most trouble-prone. Take the Honda Civic, forinstance. The 2016 Civic is an all-new, totally re-engineered model. Car criticsloved it so much that it won the North American Car of the Year award in January,a prize given out by a jury of auto writers. But customers have experienced somany glitches and failures that the car ranked "Much worse than average" in thenew dependability survey.

CNN Money

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

Over the past year, several forces have coincided to place considerable upwardpressure on personal automobile insurance costs. Insurer actions in response havedrawn considerable media and regulatory scrutiny. The dollar amount of claimsper vehicle per year, known in insurance as the loss cost, is rising. Loss costs are thelargest component of the price of auto insurance. They are also the most volatile.Whatever direction they move, rates will eventually follow. In recent years, totalloss costs have been moving considerably higher, rising 13 percent in the twoyears ending March 2016, more than 10 times the inflation rate.

Insurance Information Institute

MORE ACCIDENTS, LARGER CLAIMS DRIVE COSTS HIGHER

HW&CO. ASSISTS IN SALE OF GROHMANN ENGINEERING GMBH

Harris Williams & Co. has announced the pending sale of Grohmann EngineeringGmbH to Tesla Motors. Grohmann Engineering is a developer and manufacturer ofhighly customized, high-yield, multi-process modular assembly solutions for futureoriented end-markets. Elon Musk, founder and CEO of Tesla, noted, “This will reallybe our first acquisition of significance in our whole history. We thought it wasimportant that Tesla becomes, in part, a German company. That’s what this wasall about. We expect this to help drive exponential improvements in ourproduction process, in terms of both speed and quality of output, while cutting thecost-per-vehicle at the same time.”

Aftermarket News

Samsung Electronics Co. agreed to buy a U.S. automotive technologymanufacturer for $8 billion, the South Korean electronics giant’s biggest deal everand its latest attempt to branch out beyond smartphones in the wake of its GalaxyNote 7 fiasco. Samsung said it would pay $112 a share in cash for Stamford, Conn.based Harman International Industries Inc., an audio pioneer that has pushedaggressively into the automotive world. Samsung doesn’t plan to make cars itself,but sees automotive technology, and the broader shift toward connected,driverless vehicles, as a promising growth area to sell more of its semiconductors,display panels and mobile services.

Wall Street Journal

SAMSUNG CHARGES INTO AUTO TECH WITH $8 BILLION DEAL FOR HARMAN

WHAT WE’RE READING

Page 3: AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 · TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 Investment banking services are provided

PAGE |

Date Target Business Description Acquirer

11/8/2016* Grohmann Engineering GmbH Develops automated manufacturing systems for batteries and fuel cells Tesla Motors, Inc.

11/3/2016* Metaldyne Performance Group,

Inc.

Prov ides transmission, engine, driveline, and safety critical applications

in passenger, commercial, and industrial vehicles

American Axle &

Manufacturing Holdings

10/31/2016 Autoteile Jakobs GmbH & Co. KG Manufacturers automotive replacement parts, accessories, and

industrial supplies

Hess Holding GmbH & Co.

KG

10/28/2016 JAC Products, Inc. Manufactures roof racks and other automotive body trim JAC Products, Inc. /Private

Group/

10/27/2016* Atwood Mobile Products LLC

/Seating & Chassis Component

Bus/

Designs and manufactures vehicles seating and chassis components Drew Industries, Inc.

10/12/2016* Transamerican Auto Parts Manufacturer and distributer of off-road Jeep and truck accessories Polaris Industries Inc.

10/4/2016 Andrew Page Ltd. Distributes vehicle parts and accessories LKQ Corp.

10/4/2016 Hoosier Racing Tire Corp. Prov ides a variety of racing tires Continental AG

10/3/2016 Winfield Consumer Products, Inc. Manufactures and distributes automobile products Truck Hero, Inc.

10/3/2016 REMY International, Inc. /Light

Vehicle Aftermarket Bus/

Manufactures starters, alternators and other related products TA Associates Management

LP

10/3/2016 Ravaglioli SpA Manufactures lifts, aligners, tire changers, wheel balancers and test

lanes

Kinderhook Industries LLC

9/30/2016 Trav is Body & Trailer, Inc. Manufacturer of medium and heavy dump body and hydraulic moist

equipment

Truck Bodies & Equipment

International, Inc.

9/6/2016 Keystone Powdered Metal Co. Designs and manufactures metal products for the automotive industry Sumitomo Electric Industries

Ltd.

9/2/2016* Accuride Corp. Manufacturers and supplies commercial vehicle components Crestv iew LLC

9/2/2016 International Tyre & Wheel

Solutions Ltd.

Distributes road tires for the waste, recycling and demolition industries Trelleborg AB

8/26/2016* Industrial Levorin SA Provides tires and offers repair serv ices for motorcycles and industrial

vehicles

Compagnie Générale des

Établissements Michelin SCA

8/24/2016 Britannia Tyres Ltd. Manufactures and supplies tires, brakes, exhausts and batteries Exhaust Tyres & Batteries

(Worcester) Ltd.

8/19/2016* Omega Acquisition Corp Provides aftermarket automotive truck and off road air conditioning

products

AEA Holdings LLC

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2,3

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

*Denotes pending transactions

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PAGE |

(4.9%)

7.9%

12.8%

15.9%

Vehicle Manufacturers

Dealerships and Services

Providers

Suppliers

Distributors and Retailers

3.4%

4.7%

7.0%

16.1%

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

(2.3%)

4.3%

4.3%

6.2%

Vehicle Manufacturers

Suppliers

Distributors and Retailers

Dealerships and Services

Providers

(2.1%)

(0.7%)

6.6%

13.9%

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

6.1x

10.9x

11.7x

12.0x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

7.0x

8.6x

11.7x

11.8x

Suppliers

Vehicle Manufacturers

Dealerships and Services

Providers

Distributors and Retailers

PUBLIC MARKETS OVERVIEW

3

TRANSPORTATION & LOGISTICS

TEV / LTM EBITDA TEV / 2016P EBITDA

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

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

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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PAGE |

(13.7%)

0.1%

0.5%

1.2%

4.8%

Dealerships and

Service Providers

Distributors and

Retailers

Vehicle

Manufacturers

Suppliers

S&P 500

(1.9%)

2.0%

3.2%

3.6%

6.5%

Distributors and

Retailers

S&P 500

Vehicle

Manufacturers

Dealerships and

Service Providers

Suppliers

(30%)

(25%)

(20%)

(15%)

(10%)

(5%)

0%

5%

10%

15%

20%

Nov-15 Jan-16 Mar-16 May-16 Jul-16 Sep-16 Nov-16

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

STOCK PRICE PERFORMANCE

4

TRANSPORTATION & LOGISTICS

(Indexed to November 18th, 2015)

TRAILING TWELVE MONTHS

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

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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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.

TRANSPORTATION & LOGISTICS

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

INDUSTRY UPDATE │ NOVEMBER 2016

has been acquired by

a portfolio company of

and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

a portfolio company of

a portfolio company of

has been acquired by

a portfolio company of

has acquired

a portfolio company of

has been acquired by

a portfolio company of

has been acquired by

has merged with

an operating company of

in a recapitalization by

and

a portfolio company of

has been acquired by

has been acquired by

a portfolio company of

Page 7: AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 · TRANSPORTATION & LOGISTICS AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016 Investment banking services are provided

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

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

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

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

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.

6

OUR FIRM

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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PAGE |

Suppliers

BorgWarner Inc. $9,805 $35.68 6.1% (15.8%) $44.35 80.5% 7.8x 6.8x 6.8x 6.5x 6.4x

Cooper Tire & Rubber Company 1,997 38.45 6.9% (5.7%) 42.57 90.3% 5.3x 2.9x 3.5x 3.9x 4.2x

Dorman Products, Inc. 2,292 68.85 9.6% 49.3% 70.51 97.6% 9.7x 10.2x 13.6x 12.5x 11.5x

Federal-Mogul Holdings Corp 4,566 9.73 5.8% 30.6% 10.00 97.3% 8.0x 7.1x 7.2x 6.2x 5.9x

Goodyear Tire & Rubber Company 13,297 30.14 (3.1%) (10.9%) 35.30 85.4% 6.0x 5.3x 5.6x 5.2x 5.0x

Modine Manufacturing Company 673 11.85 11.3% 35.3% 12.75 92.9% 7.8x 5.2x 4.5x 5.9x 5.1x

Motorcar Parts of America, Inc. 540 26.08 (0.2%) (31.2%) 40.60 64.2% NM 11.6x 8.6x 5.9x 5.2x

Standard Motor Products, Inc. 1,205 50.46 6.1% 20.2% 51.56 97.9% 9.7x 9.0x 10.4x 9.9x 9.6x

Tenneco Inc. 4,441 57.65 8.0% 8.1% 59.88 96.3% 5.9x 5.1x 5.3x 5.2x 4.9x

Visteon Corporation 2,396 79.45 20.9% (34.0%) 121.65 65.3% 7.2x 14.4x 7.9x 7.3x 6.8x

Median 6.5% 1.2% 91.6% 7.8x 7.0x 7.0x 6.1x 5.5x

Distributors and Retailers

Advance Auto Parts, Inc. $12,931 $162.57 13.7% 0.1% $172.87 94.0% 10.4x 10.1x 9.5x 11.0x 10.5x

AutoZone, Inc. 27,798 755.24 0.2% (3.1%) 819.54 92.2% 13.3x 12.0x 11.8x 11.7x 11.1x

Genuine Parts Company 14,720 94.55 (1.9%) 6.2% 105.97 89.2% 10.8x 11.5x 11.8x 11.9x 10.7x

LKQ Corporation 12,991 32.25 (2.1%) 9.4% 36.35 88.7% 12.5x 14.2x 12.9x 12.3x 10.8x

O'Reilly Automotive, Inc. 26,869 265.74 (4.4%) (1.2%) 292.84 90.7% 16.8x 14.6x 14.4x 14.0x 12.8x

U.S. Auto Parts Network, Inc. 107 2.94 (1.7%) 20.0% 4.49 65.5% NA NA 11.6x 8.1x 6.9x

Uni-Select Inc. 1,076 22.39 (7.9%) (4.5%) 27.45 81.6% 9.9x 11.7x 10.4x 10.0x 9.2x

Median (1.9%) 0.1% 89.2% 11.6x 11.8x 11.8x 11.7x 10.7x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $2,989 $58.50 6.9% (17.4%) $77.33 75.6% 10.5x 9.5x 9.3x 9.3x 9.1x

AutoNation, Inc. 10,745 43.96 (8.2%) (30.3%) 64.93 67.7% 12.4x 11.7x 10.8x 10.7x 10.3x

Boyd Group Income Fund 1,329 66.12 1.0% 28.5% 68.41 96.7% 10.3x 14.9x 14.8x 14.4x 12.2x

CarMax, Inc. 21,479 55.23 8.2% (2.0%) 60.81 90.8% NM NM NM 17.6x 16.5x

Copart, Inc. 7,332 56.06 3.6% 53.2% 56.74 98.8% 12.0x 12.7x 16.1x 16.0x 14.4x

Group 1 Automotive, Inc. 4,126 69.90 13.5% (13.7%) 83.43 83.8% 10.8x 10.0x 10.0x 11.2x 10.8x

KAR Auction Services, Inc. 8,945 40.17 (8.2%) 10.1% 44.10 91.1% 10.9x 10.9x 12.5x 12.0x 10.9x

Lithia Motors, Inc. Class A 4,354 86.95 (6.9%) (26.6%) 126.56 68.7% 13.7x 10.2x 11.0x 11.0x 10.1x

Monro Muffler Brake, Inc. 2,288 57.00 (4.7%) (19.9%) 77.00 74.0% 16.9x 14.5x 14.5x 13.4x 11.8x

Penske Automotive Group, Inc. 9,171 48.44 6.9% 7.6% 50.63 95.7% 13.3x 12.3x 13.8x 13.4x 12.8x

Sonic Automotive, Inc. Class A 3,169 20.60 8.7% (14.7%) 24.87 82.8% 10.9x 10.1x 10.3x 11.0x 10.5x

Median 3.6% (13.7%) 83.8% 11.5x 11.3x 11.7x 12.0x 10.9x

PUBLICCOMPARABLES

7

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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 Nov-15 May-16 Current 2016P 2017P

Automotive Aftermarket

TEV / LTM EBITDA as of

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PAGE |

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 Nov-15 May-16 Current 2016P 2017P

Automotive Aftermarket

TEV / LTM EBITDA as of

Vehicle Manufacturers

Bayerische Motoren Werke AG $154,871 $85.65 1.4% (19.2%) $113.02 75.8% 8.0x 7.5x 7.9x 9.9x 9.8x

Daimler AG 175,400 69.01 (2.3%) (18.2%) 91.03 75.8% 5.9x 7.1x 6.8x 9.1x 8.1x

Ford Motor Company 150,210 11.76 (1.1%) (19.3%) 14.76 79.7% 14.3x 8.7x 11.1x 12.0x 12.3x

General Motors Company 105,589 33.00 5.1% (8.7%) 36.88 89.5% 6.4x 5.8x 5.3x 6.1x 6.3x

Harley-Davidson, Inc. 16,491 58.14 7.3% 16.7% 61.35 94.8% 11.8x 10.8x 11.4x 13.2x 12.5x

Navistar International Corporation 6,637 29.00 29.7% 118.0% 29.25 99.1% 9.4x 9.2x 12.0x 12.0x 11.2x

Oshkosh Corp 5,450 66.18 24.2% 55.4% 67.41 98.2% 8.1x 9.2x 11.3x 10.7x 9.9x

PACCAR Inc 26,694 59.78 5.0% 17.1% 60.86 98.2% 7.2x 7.4x 8.7x 12.7x 13.6x

Toyota Motor Corp. 299,773 57.08 (1.0%) (8.0%) 64.60 88.4% 8.7x 7.8x 8.4x 11.1x 10.3x

Volkswagen AG Pref 197,349 123.88 (6.9%) 9.0% 155.19 79.8% 6.0x 8.2x 6.5x 6.5x 6.0x

Median 3.2% 0.5% 88.9% 8.1x 8.0x 8.6x 10.9x 10.1x

PUBLICCOMPARABLES

8

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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PAGE |

Suppliers

BorgWarner Inc. $7,178 $7,435 $8,304 $8,025 $9,120 $9,434 3.8% 8.4% $1,106 $1,224 $1,385 $1,330 $1,500 $1,543 6.4% 7.7%

Cooper Tire & Rubber Company 4,201 3,439 3,421 2,959 2,912 3,022 (11.0%) 1.0% 526 394 436 541 508 490 1.0% (4.8%)

Dorman Products, Inc. 570 664 751 803 853 930 12.1% 7.6% 112 138 153 162 183 200 13.0% 10.9%

Federal-Mogul Holdings Corp 6,664 6,786 7,317 7,419 7,440 7,680 3.6% 1.7% 448 569 573 570 735 780 8.4% 17.0%

Goodyear Tire & Rubber Company 20,992 19,540 18,138 16,443 15,316 15,830 (7.8%) (1.9%) 1,824 2,107 2,251 2,349 2,553 2,687 8.8% 7.0%

Modine Manufacturing Company 1,376 1,478 1,496 1,353 1,345 1,362 (0.6%) 0.3% 101 121 110 114 114 131 4.0% 7.3%

Motorcar Parts of America, Inc. 406 259 302 369 426 476 (3.2%) 13.6% 0 46 38 49 91 102 NM 44.1%

Standard Motor Products, Inc. 949 984 980 972 1,062 1,128 0.8% 7.7% 89 107 113 92 122 125 1.4% 16.5%

Tenneco Inc. 7,363 7,964 8,420 8,209 8,540 8,992 3.7% 4.7% 649 707 752 785 847 914 6.5% 7.9%

Visteon Corporation 6,857 7,439 7,509 3,245 3,109 3,215 (22.1%) (0.5%) 493 590 663 265 326 349 (18.7%) 14.7%

Total $56,556 $55,988 $56,639 $49,796 $50,122 $52,069 (2.1%) 4.3% $5,348 $6,002 $6,475 $6,258 $6,978 $7,321 3.4% 12.8%

Distributors and Retailers

Advance Auto Parts, Inc. $6,205 $6,494 $9,844 $9,737 $9,502 $9,664 16.2% (0.4%) $847 $901 $1,244 $1,147 $1,174 $1,235 10.6% 3.8%

AutoZone, Inc. 8,604 9,148 9,475 10,187 10,636 10,636 5.8% 2.2% 1,841 2,002 2,081 2,223 2,358 2,358 6.5% 3.0%

Genuine Parts Company 13,014 14,078 15,342 15,280 15,345 15,860 5.5% 1.9% 1,122 1,117 1,273 1,266 1,249 1,354 4.1% 3.4%

LKQ Corporation 4,123 5,063 6,740 7,193 9,058 10,161 20.4% 18.9% 493 627 790 852 1,056 1,223 20.0% 19.8%

O'Reilly Automotive, Inc. 6,182 6,649 7,216 7,967 8,581 9,183 8.8% 7.4% 1,154 1,287 1,465 1,743 1,909 2,102 14.7% 9.8%

U.S. Auto Parts Network, Inc. 304 255 284 291 303 318 (1.4%) 4.5% 8 5 5 6 13 15 (8.5%) 61.3%

Uni-Select Inc. 1,821 1,788 1,784 1,355 1,206 1,251 (9.4%) (3.9%) 90 92 104 94 108 115 1.5% 10.5%

Total $40,253 $43,474 $50,685 $52,010 $54,630 $57,073 6.6% 4.3% $5,554 $6,031 $6,961 $7,331 $7,868 $8,402 7.0% 15.9%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $4,640 $5,335 $5,868 $6,588 $6,468 $6,618 12.4% 0.2% $209 $270 $313 $331 $320 $331 16.6% 0.1%

AutoNation, Inc. 15,669 17,518 19,109 20,862 21,721 22,507 10.0% 3.9% 737 843 909 998 1,009 1,053 10.6% 2.7%

Boyd Group Income Fund 435 561 764 918 1,026 1,201 28.3% 14.4% 30 40 77 79 92 110 38.5% 17.6%

CarMax, Inc. 10,963 12,574 14,269 15,150 15,843 17,124 11.4% 6.3% 529 595 724 804 1,232 1,312 15.0% 27.7%

Copart, Inc. 924 1,046 1,163 1,146 1,268 1,268 7.4% 5.2% 346 342 363 394 455 455 4.4% 7.5%

Group 1 Automotive, Inc. 7,476 8,919 9,938 10,633 10,913 11,084 12.5% 2.1% 269 346 375 407 371 381 14.8% (3.2%)

KAR Auction Services, Inc. 1,963 2,173 2,365 2,640 3,075 3,318 10.4% 12.1% 457 451 574 640 749 826 11.9% 13.6%

Lithia Motors, Inc. Class A 3,316 4,006 5,390 7,864 8,602 9,523 33.4% 10.0% 166 207 266 377 392 427 31.5% 6.5%

Monro Muffler Brake, Inc. 732 831 894 944 1,035 1,131 8.8% 9.5% 103 127 147 161 172 193 16.0% 9.5%

Penske Automotive Group, Inc. 13,164 14,705 17,177 19,285 20,189 20,360 13.6% 2.7% 419 498 574 645 682 725 15.4% 6.0%

Sonic Automotive, Inc. Class A 8,365 8,843 9,197 9,624 9,672 9,930 4.8% 1.6% 289 300 294 307 293 301 2.0% (0.9%)

Total $67,648 $76,512 $86,134 $95,653 $99,813 $104,065 13.9% 6.2% $3,553 $4,019 $4,617 $5,142 $5,767 $6,114 16.1% 7.9%

Revenue Revenue Growth EBITDA EBITDA Growth

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

Automotive Aftermarket

PUBLICCOMPARABLES

9

TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

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Vehicle Manufacturers

Bayerische Motoren Werke AG $98,709 $100,976 $106,648 $102,215 $100,391 $102,802 1.2% 0.3% $20,286 $19,443 $21,734 $19,303 $15,562 $15,688 (1.6%) (9.8%)

Daimler AG 146,811 156,635 172,268 165,747 161,460 166,113 4.1% 0.1% 19,691 21,079 24,558 25,604 19,644 21,051 9.1% (9.3%)

Ford Motor Company 134,266 146,917 144,077 149,558 140,865 142,516 3.7% (2.4%) 12,958 13,183 11,324 15,557 12,193 11,193 6.3% (15.2%)

General Motors Company 152,256 155,427 155,929 152,356 163,660 161,998 0.0% 3.1% 10,670 12,708 8,853 15,518 17,440 15,901 13.3% 1.2%

Harley-Davidson, Inc. 5,581 5,900 6,229 5,995 5,318 5,430 2.4% (4.8%) 1,183 1,324 1,452 1,330 1,270 1,341 4.0% 0.4%

Navistar International Corporation 12,948 10,775 10,806 10,140 8,229 8,175 (7.8%) (10.2%) (374) (192) 295 567 551 603 NM 3.1%

Oshkosh Corp 8,181 7,665 6,808 6,098 6,279 6,279 (9.3%) 1.5% 500 644 622 523 520 520 1.5% (0.3%)

PACCAR Inc 17,051 17,124 18,997 19,115 15,885 15,216 3.9% (10.8%) 2,458 2,648 2,899 3,198 2,062 1,928 9.2% (22.4%)

Toyota Motor Corp. 266,131 256,480 247,980 236,533 238,628 243,825 (3.9%) 1.5% 30,332 35,160 38,164 36,457 26,058 28,371 6.3% (11.8%)

Volkswagen AG Pref 247,486 261,550 268,549 236,524 225,237 230,498 (1.5%) (1.3%) 29,739 30,822 33,686 24,722 30,857 32,524 (6.0%) 14.7%

Total $1,089,420 $1,119,448 $1,138,291 $1,084,281 $1,065,952 $1,082,852 (0.7%) (2.3%) $127,443 $136,819 $143,587 $142,779 $126,158 $129,119 4.7% (4.9%)

PUBLICCOMPARABLES

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AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016

Revenue Revenue Growth EBITDA EBITDA Growth

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

Automotive Aftermarket

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TRANSPORTATION & LOGISTICS

SOURCES

TRANSPORTATION & LOGISTICS

1. FactSet.

2. MergerMarket.

3. Pitchbook.

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AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ NOVEMBER 2016