automotive industry market update - western...

Metrics 1 2 3

Q3 % YoY YTD % YoYYTD Miles Driven (in Billions ) 4 2,098 3.4% OEM N.A. Production (in 000s ) 14,749 2.8%Avg. Retail Gasoline Price $2.69 (24.9%)

M&A 5

Q3 LTM Q3 LTMCount 108 408 Value (in $Billions ) $2.2 $27,989

Public Market Performance 5 6

Q3 LTM Q3 LTMAutomotive Manufacturers (8.0%) 2.0% Aftermarket Suppliers 3.7% 21.1%Domestic OEM Suppliers (6.2%) 9.5% Retailers and Distributors 9.8% 30.1%International OEM Suppliers 0.2% 23.4% Dealers and Service Providers (3.7%) 16.0%

First Quarter | 2013

Automotive Industry Market Update

www.wesrespartners.com

Q1 2016

Inside this issue:

Western Reserve Partners providesM&A, capital raising and otherfinancial advisory services to middlemarket companies across a focused setof industry verticals. We deliverthoughtful advice, keen market insightand superior execution to our clients,both nationally and internationally,and our managing directors averagenearly 30 years of experience and havedirectly executed more than 600transactions throughout their careers.

Western Reserve Partners is amember of M&A International, theworld’s largest alliance of investmentbanking firms, as well as WorldServices Group, a global consortium ofmiddle market focused law firms andother advisors, which providesunparalleled access to globalcompanies and investors. The firm is aFINRA-member broker / dealer andmember of SIPC.

Valuation Metrics 2

Valuation Trends 4

Performance Trends 5

M&A Activity 6

Industry Metrics 7

Western ReserveAutomotive Practice

8 Automotive Market Snapshot

Mergers & Acquisitions ● Capital Raising ● Financial Opinions & Valuations ● Restructuring & Bankruptcy

(35%)

(25%)

(15%)

(5%)

5%

15%

25%

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

Automotive Manufacturers Aftermarket Suppliers

Domestic OEM Suppliers Retailers and Distributors

International OEM Suppliers Dealers and Service Providers

Metrics 1 2 3

Q1 % YoY Q1 % YoYMiles Driven (in Billions ) 4 735 3.6% OEM N.A. Production (in 000s ) 4,460 4.7%Avg. Retail Gasoline Price $2.00 (15.0%)

M&A 5

Q1 LTM Q1 LTMCount 86 390 Value (in $Billions ) $8.6 $29,641

Public Market Performance 5 6

Q1 LTM Q1 LTMAutomotive Manufacturers (7.3%) (23.0%) Aftermarket Suppliers 1.9% (0.7%)Domestic OEM Suppliers (4.2%) (17.9%) Retailers and Distributors 10.3% 17.2%International OEM Suppliers 0.4% (1.5%) Dealers and Service Providers (5.2%) (17.6%)

2 Automotive Industry Market Update | Q1 2016


Public Company Valuation Metrics 5

Price % of 52 Net Debt /Company 03/31/16 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM

Automotive ManufacturersToyota Motor Corporation $52.97 68.4% $160,909 $296,461 $237,523 $24,471 $37,956 20.2% 16.0% 3.2x 10.2x 12.3x 6.8x 9.3x

Daimler AG $76.73 72.7% $82,085 $180,984 $171,150 $13,833 $25,278 20.0% 14.8% 3.8x 12.2x 11.2x 6.9x 8.2x

Ford Motor Co. $13.50 83.8% $53,758 $163,154 $153,376 $9,639 $17,605 13.2% 11.5% 6.6x 16.6x 22.0x 9.2x 13.5x

Volkswagen AG $127.38 43.9% $68,949 $162,775 $231,650 $8,035 $18,011 15.3% 7.8% 5.3x 13.0x 12.0x 6.6x 5.7x

Bayerische Motoren Werke Aktiengesellschaft $92.36 68.8% $59,989 $146,510 $104,904 $10,499 $14,516 18.4% 13.8% 6.1x 13.1x 13.1x 9.7x 8.8x

Nissan Motor Co. Ltd. $9.27 77.1% $41,144 $103,808 $101,745 $6,373 $13,317 0.0% 0.0% 4.1x 13.5x 15.2x 6.9x 8.6x

Honda Motor Co., Ltd. $27.47 68.6% $49,500 $98,286 $124,612 $5,808 $8,069 20.7% 6.5% 5.4x 13.4x 15.0x 10.1x 8.4x

General Motors Company $31.43 83.9% $48,653 $91,915 $153,909 $8,016 $15,493 12.6% 10.1% 3.4x 10.1x 8.8x 5.8x 5.8x

Hyundai Motor Company $134.16 84.3% $24,067 $64,327 $78,146 $5,403 $7,111 19.9% 9.1% 4.8x 8.8x 11.1x 7.1x 7.5x

Tesla Motors, Inc. $229.77 80.2% $30,343 $32,063 $4,253 ($862) ($411) 21.5% (9.7%) NM NM 154.5x NM 37.8x

Fiat Chrysler Automobiles N.V. $8.09 44.8% $10,423 $17,814 $126,569 $4,530 $8,919 12.8% 7.0% 1.0x 4.5x 2.9x 2.1x NM

Kia Motors Corp. $42.49 81.3% $16,958 $15,118 $42,083 $2,001 $2,827 19.8% 6.7% NM 4.6x 6.8x 3.6x 4.1x

Peugeot S.A. $17.15 76.4% $13,670 $13,985 $59,382 $2,958 $4,882 18.4% 8.2% NM 3.9x 4.3x 2.5x 2.4x

AUDI AG $714.42 73.1% $30,720 $11,246 $63,448 $6,613 $8,705 19.5% 13.7% NM NM NM NM NM

Mazda Motor Corporation $15.54 63.5% $9,292 $10,303 $30,319 $2,018 $2,721 24.6% 9.0% 0.1x 4.7x NM 3.6x 3.8x

Mean $46,698 $93,917 $112,205 $7,289 $12,333 17.1% 8.3% 4.0x 9.9x 22.2x 6.2x 9.5x

Median $41,144 $91,915 $104,904 $6,373 $8,919 19.5% 9.0% 4.1x 10.2x 12.0x 6.8x 8.2x

Domestic OEM Suppliers

Johnson Controls Inc. $38.97 71.5% $25,262 $33,149 $36,317 $2,389 $3,265 18.2% 9.0% 2.0x 12.8x 10.8x 9.6x 8.4x

Delphi Automotive PLC $75.02 82.8% $20,718 $24,674 $15,419 $1,975 $2,535 20.2% 16.4% 1.5x 12.5x 10.9x 9.9x 8.6x

Magna International Inc. $43.05 74.9% $17,318 $17,179 $33,262 $2,388 $3,362 14.3% 10.1% 0.8x 6.3x 6.6x 4.7x 4.8x

BorgWarner Inc. $38.40 61.2% $8,379 $10,445 $8,308 $1,058 $1,395 20.9% 16.8% 1.6x 9.7x 9.4x 7.4x 7.0x

Lear Corp. $111.17 87.5% $8,157 $9,005 $18,211 $1,260 $1,608 10.4% 8.8% 0.5x 6.9x 6.5x 5.4x 5.1x

Gentex Corp. $15.69 84.6% $4,533 $4,213 $1,580 $472 $554 39.2% 35.1% NM 9.2x 8.4x 7.8x 7.0x

Tenneco Inc. $51.51 83.4% $2,963 $3,971 $8,322 $598 $785 17.3% 9.4% 1.3x 6.8x 6.4x 5.1x 4.8x

Linamar Corp. $48.19 69.9% $3,141 $3,302 $4,166 $465 $684 16.5% 16.4% 1.6x 7.3x 5.9x 5.0x 4.0x

Metaldyne Performance Group Inc. $16.81 68.3% $1,145 $2,864 $3,047 $270 $500 17.1% 16.4% 3.4x 10.6x 10.7x 5.7x 5.5x

Dana Holding Corporation $14.09 62.0% $2,097 $2,822 $5,901 $420 $592 13.9% 10.0% 1.3x 6.9x 6.3x 4.8x 4.4x

American Axle & Manufacturing Holdings Inc. $15.39 58.7% $1,177 $2,274 $3,903 $372 $567 16.8% 14.5% 2.0x 6.3x 6.2x 4.1x 3.9x

Cooper-Standard Holdings Inc. $71.84 89.1% $1,235 $1,651 $3,405 $265 $383 18.1% 11.3% 1.2x 6.6x 6.6x 4.5x 4.2x

Gentherm Incorporated $41.59 71.8% $1,511 $1,464 $865 $124 $156 32.2% 18.1% NM 12.0x 11.1x 9.6x 8.8x

Martinrea International Inc. $7.91 71.1% $683 $1,214 $3,076 $144 $246 13.5% 8.0% 2.3x 8.8x 7.5x 5.2x 4.6x

Tower International, Inc. $27.20 86.6% $576 $893 $1,971 $86 $165 11.2% 8.4% 2.1x 10.2x 7.8x 5.3x 4.3x

Visteon Corporation $79.59 65.4% $3,093 $844 $3,231 $196 $269 13.6% 8.3% NM 4.4x 3.6x 3.2x 2.6x

Superior Industries International, Inc. $22.08 94.3% $557 $504 $740 $62 $95 12.7% 12.8% NM 10.4x 10.8x 6.2x 6.1x

Stoneridge Inc. $14.56 92.5% $405 $482 $645 $33 $55 27.7% 8.5% 1.3x 16.6x 11.0x 9.4x 6.9x

Shiloh Industries Inc. $5.13 35.6% $89 $366 $1,114 $18 $52 7.6% 4.7% 5.3x 20.2x NM 7.1x NM

STRATTEC Security Corporation $57.39 63.8% $209 $214 $391 $20 $30 15.3% 7.5% NM 10.4x 6.5x 7.1x 5.2x

Mean $5,162 $6,077 $7,694 $631 $865 17.8% 12.5% 1.9x 9.8x 8.1x 6.4x 5.6x

Median $1,804 $2,548 $3,318 $321 $527 16.6% 10.1% 1.6x 9.4x 7.5x 5.6x 5.1x

International OEM Suppliers

Continental Aktiengesellschaft $227.55 86.3% $45,512 $50,126 $45,002 $4,828 $6,848 26.2% 15.2% 0.5x 10.4x 9.4x 7.4x 6.7x

Valeo SA $155.80 87.3% $12,223 $12,477 $15,796 $1,133 $1,689 17.7% 10.7% 0.0x 10.0x 9.2x 6.8x 5.5x

Autoliv, Inc. $118.48 89.6% $10,449 $10,667 $9,426 $913 $1,244 20.4% 13.2% 0.3x 13.1x 11.7x 9.4x 8.4x

GKN plc $4.16 76.9% $7,130 $8,270 $10,664 $736 $1,175 56.1% 11.0% 1.0x 10.3x 8.1x 6.7x 6.1x

Faurecia S.A. $37.92 71.9% $5,201 $6,528 $20,386 $896 $1,302 9.3% 6.4% 0.8x 6.8x 6.3x 4.7x 3.7x

Compagnie Plastic Omnium SA $34.42 96.6% $5,059 $5,485 $5,441 $439 $606 16.7% 11.1% 0.6x 11.0x 9.4x 8.1x 6.6x

Brembo SpA $51.76 98.8% $3,366 $3,557 $2,269 $265 $368 45.3% 16.2% 0.5x 12.3x 12.2x 9.0x 8.4x

Cie Automotive, S.A. $10.00 55.1% $2,329 $3,493 $2,858 $285 $417 42.3% 14.6% 1.9x 11.6x 10.9x 8.0x 7.4x

ElringKlinger AG $10.00 30.0% $1,753 $2,345 $1,732 $141 $233 24.7% 13.5% 2.4x 16.0x 12.3x 9.9x 7.9x

Autoneum Holding AG $257.70 95.7% $1,194 $1,405 $2,083 $141 $206 52.2% 9.9% 0.5x 9.4x 7.7x 6.5x 5.5x

Tupy S.A. $4.65 76.2% $670 $966 $865 $81 $149 19.0% 17.2% 1.8x 10.7x 7.5x 5.8x 4.9x

Grammer AG $39.84 91.0% $447 $637 $1,707 $44 $89 11.1% 5.2% 0.4x 13.9x 9.5x 7.1x 5.5x

Mean $7,944 $8,830 $9,852 $825 $1,194 28.4% 12.0% 0.9x 11.3x 9.5x 7.4x 6.4x

Median $4,213 $4,521 $4,150 $362 $512 22.6% 12.2% 0.6x 10.8x 9.4x 7.2x 6.3x

LTM Margin EV/EBIT EV/EBITDA


Public Company Valuation Metrics 5


Price % of 52 Net Debt /Company 03/31/16 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM

Aftermarket Suppliers

The Goodyear Tire & Rubber Company $32.98 93.4% $8,813 $13,315 $16,110 $1,662 $2,363 26.8% 14.7% 2.1x 8.1x 6.8x 5.7x 5.1x

Snap-on Incorporated $156.99 90.0% $9,125 $9,948 $3,593 $764 $833 50.6% 23.2% 1.0x 13.0x 11.8x 11.9x 10.7x

Allison Transmission Holdings, Inc. $26.98 82.9% $4,617 $6,771 $1,944 $477 $661 46.8% 34.0% 3.2x 13.3x 15.8x 9.7x 11.1x

Federal-Mogul Holdings Corporation $9.88 70.6% $1,670 $4,670 $7,481 $272 $617 14.9% 8.2% 4.6x 16.1x 12.4x 7.4x 6.8x

Cooper Tire & Rubber Co. $37.02 84.3% $2,056 $1,898 $2,959 $454 $578 24.2% 19.5% NM 4.4x 5.3x 3.4x 3.9x

Dorman Products, Inc. $54.42 98.9% $1,895 $1,816 $823 $151 $169 38.4% 20.5% NM 12.4x 11.4x 11.2x 10.4x

Meritor, Inc. $8.06 55.1% $736 $1,689 $3,392 $213 $277 13.5% 8.2% 3.3x 6.8x 7.2x 5.4x 5.2x

Standard Motor Products Inc. $34.65 75.8% $784 $813 $983 $99 $116 29.5% 11.8% 0.3x 8.7x 8.7x 7.4x 7.4x

Motorcar Parts of America, Inc. $37.98 92.6% $696 $712 $355 $31 $34 27.5% 9.6% 0.5x 22.8x 8.4x 20.8x 8.1x

Fox Factory Holding Corp $15.81 80.6% $585 $627 $367 $43 $56 30.8% 15.3% 0.7x 14.6x 12.0x 11.2x 9.0x

Modine Manufacturing Company $11.01 80.5% $528 $604 $1,372 $52 $102 16.9% 7.4% 0.7x 11.5x 8.7x 5.9x NM

Horizon Global Corporation $12.58 79.2% $228 $393 $579 $35 $52 26.1% 9.0% 3.7x 12.7x 10.3x 8.2x 7.1x

Mean $2,645 $3,605 $3,330 $355 $488 28.8% 15.1% 2.0x 12.0x 9.9x 9.0x 7.7x

Median $1,227 $1,753 $1,658 $182 $223 27.1% 13.2% 1.5x 12.5x 9.5x 7.8x 7.4x

Aftermarket Retailers and Distributors

AutoZone, Inc. $796.69 98.4% $23,788 $28,423 $10,427 $2,004 $2,288 52.5% 21.9% 2.0x 14.2x 13.3x 12.4x 11.7x

O'Reilly Automotive Inc. $273.66 98.5% $26,553 $27,827 $8,161 $1,601 $1,809 52.4% 22.2% 0.6x 18.2x 16.4x 16.0x 14.5x

Genuine Parts Company $99.36 99.8% $14,856 $15,320 $15,262 $1,119 $1,260 29.8% 8.3% 0.4x 13.6x 13.1x 12.1x 11.5x

Advance Auto Parts Inc. $160.34 79.7% $11,756 $12,898 $9,737 $964 $1,233 45.4% 12.7% 0.9x 13.4x 11.6x 10.5x 9.5x

LKQ Corp. $31.93 99.0% $9,779 $11,270 $7,340 $732 $863 39.4% 11.8% 3.0x 15.7x 13.5x 13.3x 11.7x

Uni-Select Inc. $43.14 78.1% $928 $915 $1,208 $86 $95 29.7% 7.9% 0.8x 10.8x 11.3x 9.6x 9.5x

U.S. Auto Parts Network, Inc. $2.56 78.0% $87 $106 $291 ($2) $6 28.7% 2.0% 2.8x NM 159.4x 17.9x 8.2x

Mean $12,535 $13,823 $7,489 $929 $1,079 39.7% 12.4% 1.5x 14.3x 34.1x 13.1x 10.9x

Median $11,756 $12,898 $8,161 $964 $1,233 39.4% 11.8% 0.9x 13.9x 13.3x 12.4x 11.5x

Dealers and Service Providers

CarMax Inc. $51.10 67.8% $10,002 $20,573 $15,150 $1,059 $1,196 15.9% 7.9% 8.9x 19.6x 18.9x 17.5x 16.6x

AutoNation, Inc. $46.68 69.2% $4,813 $10,832 $21,037 $865 $999 15.6% 4.7% 6.7x 12.4x 11.8x 10.9x 10.1x

KAR Auction Services, Inc. $38.14 95.7% $5,227 $8,146 $2,752 $453 $672 43.2% 24.4% 4.4x 18.9x 16.5x 12.7x 11.2x

Penske Automotive Group, Inc. $37.90 69.7% $3,269 $7,916 $19,627 $575 $655 14.8% 3.3% 7.3x 13.1x 13.3x 11.6x 11.8x

Copart, Inc. $40.77 97.5% $4,566 $5,083 $1,168 $360 $402 44.3% 34.4% 1.3x 14.1x 13.0x 12.7x 11.7x

Lithia Motors Inc. $87.33 69.0% $2,493 $4,407 $8,058 $346 $389 15.0% 4.8% 5.0x 13.2x 12.1x 11.7x 10.9x

Group 1 Automotive Inc. $58.69 60.3% $1,322 $4,117 $10,808 $372 $420 14.4% 3.9% 6.8x 11.2x 11.3x 9.9x 10.1x

Asbury Automotive Group, Inc. $59.84 62.0% $1,494 $3,237 $6,597 $300 $330 16.1% 5.0% 5.4x 10.7x 10.9x 9.7x 9.9x

Sonic Automotive Inc. $18.48 71.7% $851 $3,191 $9,623 $233 $305 14.8% 3.2% 7.5x 13.3x 13.6x 10.3x 10.5x

Monro Muffler Brake Inc. $71.47 92.8% $2,301 $2,597 $934 $119 $158 40.4% 16.9% 1.9x 21.9x 18.7x 16.5x 14.2x

Boyd Group Income Fund $58.88 97.5% $1,075 $1,138 $846 $54 $73 45.7% 8.6% 0.8x 19.7x 17.5x 14.6x 12.2x

AutoCanada Inc. $14.05 38.5% $385 $1,034 $2,265 $77 $93 16.8% 4.1% 7.0x 13.7x 13.7x 11.5x 12.3x

America's Car-Mart Inc. $25.00 44.2% $204 $327 $551 $28 $32 22.2% 5.8% 3.8x 11.7x 9.8x 10.2x 8.3x

Mean $2,923 $5,584 $7,647 $372 $440 24.6% 9.8% 5.1x 14.9x 13.9x 12.3x 11.5x

Median $2,301 $4,117 $6,597 $346 $389 16.1% 5.0% 5.4x 13.3x 13.3x 11.6x 11.2x

LTM Margin EV/EBIT EV/EBITDA


Public Market Average Enterprise Value / EBITDA Valuation Trends 5


Retailers and Distributors





7.6x 7.6x 7.5x6.9x

7.3x 7.3x

6.2x 6.3x

0.0x

3.0x

6.0x

9.0x

12.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

7.7x 7.6x6.8x 6.7x

8.0x8.4x

6.9x7.5x

0.0x

3.0x

6.0x

9.0x

12.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

6.6x 6.6x 6.8x 6.8x7.3x 7.4x

6.5x 6.3x

0.0x

3.0x

6.0x

9.0x

12.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

8.2x 8.2x7.8x 7.6x 7.5x

9.1x8.6x

8.9x

0.0x

3.0x

6.0x

9.0x

12.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

11.8x11.2x 11.2x

12.2x 12.0x 12.1x 12.0x 12.4x

0.0x

4.0x

8.0x

12.0x

16.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

13.0x13.9x 13.7x

12.9x13.6x 13.3x 12.9x 12.7x

0.0x

4.0x

8.0x

12.0x

16.0x

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16


Public Market Performance Trends 5


Retailers and Distributors





17.5%17.9%

17.6%

18.3%

17.0%17.4% 17.4% 17.1%

2.1%

(0.9%)

(4.5%) (4.4%)

0.4% 2.8%

1.7% 1.4%

(15%)

(5%)

5%

15%

25%

10%

12%

14%

16%

18%

20%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

LTM Gross Margin LTM Revenue Growth

15.7% 15.7% 15.8% 16.0% 16.0% 16.1%16.6% 16.8%

0.5% 0.0% (0.4%) (0.1%)

2.0%

(1.4%)

(2.9%)

1.7%

(8%)

(5%)

(2%)

1%

4%

7%

10%

7%

9%

11%

13%

15%

17%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16


23.4% 23.5% 23.7% 23.6%

24.3% 24.6% 24.6%24.9%

0.7% (2.4%) (2.8%)

(5.2%)(2.1%)

3.8% 1.7% 0.8%

(20%)

(10%)

0%

10%

20%

30%

16%

17%

18%

19%

20%

21%

22%

23%

24%

25%

26%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16


23.5%

24.1% 24.1%24.4%

24.9%25.3%

25.9%26.3%

0.1%

1.9%

(0.5%)(1.2%)

(1.4%)(1.8%)

(1.1%) (0.8%)

(4%)

(2%)

0%

2%

4%

6%

17%

19%

21%

23%

25%

27%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16


41.9% 41.7% 41.5% 41.4% 41.6% 41.8% 42.0% 42.1%

4.3%

3.5% 3.6%

2.8%

1.0% 0.6%

0.1% 0.2%

(2%)

0%

2%

4%

6%

8%

34%

36%

38%

40%

42%

44%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16


17.1% 17.0% 17.0% 17.0% 17.0% 17.0% 16.9% 16.9%

3.1% 3.1%

3.8%

3.2% 3.2%2.8%

1.6% 1.5%

0%

2%

4%

6%

8%

10%

10%

12%

14%

16%

18%

20%

Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16




Merger and Acquisition Trends 5

Select Merger and Acquisition Activity

Transaction Volume Transaction Value

89

106100 100

114107

116

86 81

0

25

50

75

100

125

150

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

(# of Deals)

$8,520

$1,285

$3,805$4,762 $5,381

$16,716

$2,312 $2,034

$8,580

0

4,000

8,000

12,000

16,000

20,000

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16

($ in millions)

Date Target Buyer Overview

Mar-1 6Take 5 Oil Change (Triv est Partners)

Driv en Brands (Roark Capital Group)

Prov ides oil change and ancillary serv ices

Mar-1 6The Paslin Company(Tower Three Partners)

Zhejiang Wanfeng Technology Dev elopment Co. Prov ides design, assembly and integration of robotic assembly equipment

Mar-1 6 Jiffy -tite Company Oetiker Limited Manufactures highly engineered fluid connection parts and assemblies

Mar-1 6 SUR&R Husky Corp.Supplies fuel, brake, air conditioning and transmission fuel line repair kits and specialty tools

Mar-1 6 LoJack CalAmp Prov ides of aftermarket theft protection and security sy stems

Feb-1 6 Roll-N-Lock CorporationLund International (Highland Partners)

Designs and manufactures retractable tonneau cov ers and other cargo management products

Feb-1 6Automotiv e Dev elopment Group (Zabel Companies)

APCO Holdings Prov ides automotiv e dealership training and consulting serv ices and F&I products

Feb-1 6Roadtrek Motorhomes (Industrial Opportunity Partners)

Erwin Hy mer Group Designs and manufactures Class B motorhomes

Feb-1 6 Millennium Industries Corp.TI Automotiv e (Bain Capital)

Manufactures fuel rails and power steering reserv oirs

Feb-1 6 Luv erne Truck Equipment CURT Manufacturing (Audax)

Manufactures steel and aluminum exterior accessories for pickup trucks, v ans, SUVs and semi-tractors

Feb-1 6Applied Acoustics International (UGN, Inc.)

Angeles Equity Partners Manufactures sound barrier and noise damping products

Feb-1 6Pure Power Technologies (Nav istar)

Smithfield Group, Kensington Partners Supplies high performance diesel fuel injection sy stems

Feb-1 6 Magnum Automotiv e Group Dana Holding CorpSupplies gasket and sealing products for automotiv e and commercial v ehicle applications

Feb-1 6 Pep Boy s Icahn Enterprises Sells automotiv e parts and repair serv ices

Jan-1 6Boston Plastics (Baird Capital)

US Farathane Corp (The Gores Group)

Manufactures plastic injection molded components and sub-assemblies

Jan-1 6 Henman Engineering & Machine, Inc. JD Norman Industries Manufactures precision machined components

Jan-1 6 Montupet Linamar Manufactures cast aluminum components

Jan-1 6 Tepso Plastics MexUS Farathane Corp (The Gores Group)

Manufactures engineered plastic injection molded components and assemblies

Jan-1 6 Drake Automotiv e Group Huron CapitalDesigns and distributes branded aftermarket products serv ing the classic car, off-road, and late model muscle car markets

Jan-1 6 C.A.R.S. Protection Plus Summit Park Prov ides v ehicle serv ice contracts, primarily for the high mileage used car segment

Jan-1 6 Getrag Magna International Manufacturers transmissions for the automotiv e industry


Industry Metrics

U.S. Light Vehicle Sales and Market Share 3

North American Light Vehicle Production 3

Retail Gasoline Price 2

Miles Traveled 1

This newsletter is published solely for the general information of clients and friends of Western Reserve Partners LLC. Informationcontained in this publication may not be used or redistributed without expressed written permission from Western Reserve Partners LLC.This publication is not a research report, as such term is defined by applicable law and regulations, and is provided for informationalpurposes only. Information contained in this publication is based on data obtained from sources we deem to be reliable; however, we donot guarantee or represent that it is accurate or complete, and it should not be relied upon as such. This report may contain references toregistered trademarks, service marks and copyrights owned by third-party information providers. Opinions expressed are our currentopinions as of the date appearing on this material only. This material should not be read as advice or recommendations, and we are notsoliciting any action based upon receipt of this information. Nothing in this publication is intended to be an offer to buy or sell or thesolicitation of an offer to buy or sell any specific security or company. The testimonials presented are applicable to the individuals depictedand may not be representative of the experience of others. The testimonials are not paid and are not indicative of future performance orsuccess.

1. St. Louis Federal Reserve2. U.S. Department of Energy3. Wards4. Q1 represents three months ended February 20165. Capital IQ6. Indices weighted by market capitalization

Citations and Sources


% Share2016 2015 % Change 2016 2015

U.S. Car 1,016,369 1,048,171 (3.0%) 59.5% 58.7%U.S. Light Truck 2,009,808 1,829,338 9.9% 73.1% 73.9%U.S. Light Vehicle 3,026,177 2,877,509 5.2% 67.9% 67.5%

Canada Car 220,248 227,906 (3.4%) 12.9% 12.8%Canada Light Truck 410,577 309,991 32.4% 14.9% 12.5%Canada Light Vehicle 630,825 537,897 17.3% 14.1% 12.6%

Mexico Car 472,891 509,328 (7.2%) 27.7% 28.5%Mexico Light Truck 330,039 335,413 (1.6%) 12.0% 13.6%Mexico Light Vehicle 802,930 844,741 (4.9%) 18.0% 19.8%

North America Car 1,709,508 1,785,405 (4.3%) 38.3% 41.9%North America Light Truck 2,750,424 2,474,742 11.1% 61.7% 58.1%North America LV 4,459,932 4,260,147 4.7% 100.0% 100.0%

Production, YTD March

2.2%

3.2% 3.1%

2.2%

3.3%3.5%

1.6%

3.6%

1.7%

3.6% 3.4%

2.0%

5.6%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

F-15 M-15 A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16

YoY Monthly Change Miles Traveled

2016 2015 % Change 2016 2015

General Motors 431,570 434,164 (0.6%) 17.4% 18.1%

Ford 378,830 349,730 8.3% 15.3% 14.6%

Toyota 349,237 349,661 (0.1%) 14.1% 14.6%

FCA 335,510 307,068 9.3% 13.5% 12.8%

Nissan 236,645 222,543 6.3% 9.6% 9.3%

Honda 219,482 207,650 5.7% 8.9% 8.7%

Hyundai 98,020 97,010 1.0% 4.0% 4.0%

Kia Motors 88,042 82,329 6.9% 3.6% 3.4%

Subaru 83,112 82,170 1.1% 3.4% 3.4%

Daimler 52,616 52,400 0.4% 2.1% 2.2%

Other 204,013 214,596 (4.9%) 8.2% 8.9%

Total 2,477,077 2,399,321 3.2% 100.0% 100.0%

% ShareUnit Sales, YTD March

$2.56

$2.80$2.89 $2.88

$2.73

$2.46 $2.39$2.26

$2.14$2.06

$1.87$2.07

(40%)

(20%)

0%

20%

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16 M-16

Retail Gasoline Price (All Grades) YOY Change


Matthew J. MuellerAutomotive Practice Leader

[email protected]

Automotive Practice Overview Western Reserve’s professionals have extensive experience in the automotive industry, having

completed 70 transactions at a collective value of nearly $6 billion

We have worked with clients across the automotive industry, including:

Segments□ Aftermarket□ Original Equipment□ Distribution□ Manufacturing□ Automation□ Retail and Services□ Specialty Vehicles

Systems□ Air and Fluid□ Drivetrain and

Powertrain□ Electrical□ Exterior and Body □ Interior Components and

Assemblies

Materials□ Metal□ Rubber□ Plastic□ Electronics□ Engineered Materials

Please email us at [email protected] to subscribe to our market update


Recent Automotive Industry Transactions

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Overview of Western Reserve PartnersWestern Reserve Partners provides M&A, capital raising and other financial advisory services to middle market companies across a focused set ofindustry verticals. We deliver thoughtful advice, keen market insight and superior execution to our clients, both nationally and internationally, andour partners average nearly 30 years of experience and have executed more than 600 transactions throughout their careers.

Financial Advisory Services Focused Industry Verticals

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Valuations• Restructuring and

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• Industrial• Consumer• Healthcare and Technology• Distribution• Services• Real Estate

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