transportation & logistics · 9/29/2015 know how systems global llc provides automotive hail...

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TRANSPORTATION & LOGISTICS

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ JANUARY 2016

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www.harriswilliams.de



SHAPE-SHIFTING: TRENDS THAT WILL DRIVE AFTERMARKET GROWTH

New vehicle sales are on the rebound, old cars are getting older and CUVS aregrowing in popularity — all trends that likely will impact the automotive aftermarketand auto repairers in the coming years, according to IHS Automotive. “It gives usthe opportunity to do what we do best in the aftermarket, and that's adapt andinnovate and be able to come up with new ways to serve these new-generationvehicles. We've done it before, all we have to do is do it again,” said Mark Seng,global aftermarket practice leader for IHS.

Tire Business

WHAT WE’RE READING

NEW VEHICLE REGISTRATIONS TOP 17 MILLION FOR FIRST TIME SINCE 2006

Experian Automotive announced that new vehicle registration volumes for light-duty vehicles has reached the highest point in the past nine years. During therolling year from Nov. 1, 2014, through Oct. 31, 2015, there were more than 17million new vehicles registered within the United States — a metric that hasn’tbeen achieved since 2006. Further insight from the data showed that, while thereis now a near-identical volume of vehicles registered, consumer buying habitshave changed over the past nine years. For example, crossover utility vehiclesaccount for nearly 24 percent of the market in 2015, up more than 100 percentfrom 2006.

Aftermarket News

ICAHN WINS PEP BOYS BIDDING WAR

Billionaire Carl Icahn won the bidding war for Pep Boys, striking a deal to buy theauto parts and repair chain for about $1 billion. The deal with Icahn Enterprises L.P.,the activist investor’s publicly traded company, comes a day after the other partyin the fight, Japanese tire maker Bridgestone Corp., said it wouldn’t counter Mr.Icahn’s latest bid. On Wednesday, Pep Boys - Manny Moe & Jack said it hadpulled the plug on its pending merger deal with Bridgestone and that Mr. Icahn’sfirm paid Bridgestone a $39.5 million deal-termination fee on Pep Boys’ behalf. Thedeal, for $18.50 a share, is expected to close in the first quarter of 2016.

Wall Street Journal

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

EUROPE

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

Autonomous driving repeated its front and center position at CES, but trends suchas personalization of the driver experience via cloud connectivity and a furtherexpansion into smart mobility by some of the biggest players in the automotivetech space also stood out. This year Mercedes Benz debuted the 2017 E-Class, thefirst “standard-production” vehicle to receive an autonomous license fromNevada. Mobileye announced that it struck deals with GM and VW to supplymapping data for the automakers’ self-driving car efforts. QNX, the BlackBerrydivision that supplies infotainment software for millions of vehicles, introduced itsplatform that is designed to provide a 360-degree surround view of the vehicle.

Forbes

CAR TECHNOLOGY ONCE AGAIN STOLE THE SHOW AT CES 2016

After a near-record year for supplier consolidation, insiders and executives expectautomotive industry tie-ups to continue in coming years. PricewaterhouseCoopersreports that the global automotive industry last year engaged in nearly 500 deals,including mergers and consolidations, totaling $63 billion. That includes 69 dealsinvolving automakers that represented $6 billion; and the auto components andsupplier industry with 190 deals that equaled $33 billion -- $2 billion less than therecord set in 2007 for suppliers.

The Detroit News

NECESSITY WILL DRIVE AUTO INDUSTRY TIE-UPS

http://www.harriswilliams.com/

http://www.tirebusiness.com/article/20160113/NEWS/160119970/shape-shifting-trends-that-will-drive-aftermarket-growth?X-IgnoreUserAgent=1

http://www.aftermarketnews.com/experian-automotive-reports-new-vehicle-registrations-top-17m-for-first-time-since-2006/?eid=284843070&bid=1255890

http://www.wsj.com/articles/icahn-wins-pep-boys-bidding-war-1451487496

mailto:[email protected]







http://www.forbes.com/sites/dougnewcomb/2016/01/11/car-technology-once-again-stole-the-show-at-ces-2016/#32286c4f7c417189048e7c41

http://www.detroitnews.com/story/business/autos/detroit-auto-show/2016/01/13/auto-industry-consolidation/78769286/

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M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



Date Target Business Description Acquirer

1/12/2016 Drake Automotive Group Manufactures and markets auto parts for classic and current model

Ford Mustangs, and also caters to vehicles such as Broncos, Jeeps,

Camaros and others.

Huron Capital Partners

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.

12/7/2015* 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.

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

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

11/2/2015 Reading Truck Body, LLC Manufactures truck bodies and accessories. J.B. Poindexter & Co., Inc.

11/2/2015 Compass Automotive Group, LLC Manufactures safety-critical aluminum automotive components for

cars, motorcycles, and light trucks.

Shipston Group Limited

10/28/2015 Filter Sensing Technologies, Inc. Develops advanced measurement and control technologies. CTS Corporation

10/28/2015 Interstate Tire Distributor, Inc. Markets and distributes tires and wheels in California, Arizona, Utah, and

Nevada.

Omni United (S) Pte. Ltd.

10/26/2015 AL-KO Vehicle Technology Designs and manufactures trailer axles, trailer and caravan

components, chassis, and motorized chassis.

Dexter Axle Company, Inc.

10/22/2015 Carstar, Inc. Prov ides auto repair serv ices in the United States and Canada through

its network of auto repair shops.

Driven Brands, Inc.

10/21/2015 Who-Rae Pty Ltd Supplies automotive aftermarket accessories for retailers worldwide. Kraco Enterprises LLC

9/29/2015 Know How Systems Global LLC Provides automotive hail damage repair and paintless dent removal

serv ices.

Dent Wizard International

Corporation

9/29/2015 Eastern Manufacturing Inc. Designs, manufactures, and supplies exhaust and emissions products for

automotive, light truck, heavy-duty, off-road vehicles, and industrial

applications.

AP Exhaust Products, Inc.

9/25/2015* Truck-Lite Co., LLC Manufactures and distributes safety lighting products and accessories

to heavy-duty truck, trailer, and commercial vehicle industries.

BDT Capital Partners, LLC;

Koch Equity Development,

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)


6.0x

9.0x

11.8x

12.1x

Suppliers

Vehicle Manufacturers

Dealerships and Services

Providers

Distributors and Retailers

5.9x

8.3x

10.2x

10.6x

Suppliers



Providers


0.4%

2.8%

6.0%

14.4%

Suppliers




Providers

0.9%

2.7%

5.8%

6.6%



Suppliers


Providers

2.2%

6.2%

7.0%

14.6%

Suppliers




Providers

7.4%

8.3%

9.3%

13.1%




Providers

Suppliers

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STOCK PRICE PERFORMANCE

4


(Indexed to January 12, 2015)

TRAILING TWELVE MONTHS

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


(20%)

(10%)

0%

10%

20%

30%

40%

Jan-12-2015 Apr-12-2015 Jul-12-2015 Oct-12-2015 Jan-12-2016

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

(18.3%)

(10.5%)

(9.6%)

(2.8%)

(4.4%)

Dealerships and

Service Providers

Suppliers

Vehicle

Manufacturers

Distributors and

Retailers

S&P 500

(17.8%)

(17.7%)

(4.3%)

18.3%

(5.9%)

Vehicle

Manufacturers

Dealerships and

Service Providers

Suppliers

Distributors and

Retailers

S&P 500

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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


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

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HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501

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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

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NETWORK OFFICES

Beijing

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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.

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 Jan-15 Jul-15 Current 2016P 2017P

Automotive Aftermarket

TEV / LTM EBITDA as of

Suppliers

BorgWarner Inc. $9,115 $36.89 (7.4%) (31.1%) $63.30 58.3% 9.1x 9.7x 6.8x 5.9x 5.5x

Cooper Tire & Rubber Co. 1,894 35.05 (8.9%) 1.5% 43.94 79.8% 4.6x 3.4x 3.7x 4.1x 4.2x

Dorman Products, Inc. 1,475 43.80 (4.9%) (8.0%) 53.75 81.5% 10.8x 10.8x 9.5x 8.6x 7.9x

Federal-Mogul Holdings Corporation 3,880 5.63 (17.4%) (60.5%) 15.87 35.5% 7.3x 7.8x 6.7x 5.8x 5.5x

The Goodyear Tire & Rubber Company 12,807 28.59 (11.1%) 1.2% 35.30 81.0% 6.1x 5.6x 5.4x 4.8x 4.7x

Modine Manufacturing Company 432 7.10 (19.4%) (43.5%) 13.82 51.4% 6.1x 5.9x 4.4x 3.7x 3.2x

Motorcar Parts of America, Inc. 596 32.17 (14.3%) 6.7% 41.03 78.4% 14.6x 14.4x 18.7x 7.1x 6.3x

Standard Motor Products Inc. 820 35.69 (8.9%) (0.5%) 45.72 78.1% 6.9x 7.6x 7.1x 7.0x 6.5x

Tenneco Inc. 3,587 41.42 (12.5%) (22.1%) 61.73 67.1% 5.9x 5.9x 4.9x 4.2x 4.0x

Visteon Corporation 1,914 104.86 (9.9%) 0.2% 121.65 86.2% 8.8x 7.7x 2.6x 6.3x 5.7x

Median (10.5%) (4.3%) 78.2% 7.1x 7.7x 6.0x 5.9x 5.5x


Advance Auto Parts Inc. $11,958 $147.05 (1.2%) (8.3%) $201.24 73.1% 10.7x 10.7x 9.2x 8.5x 7.9x

AutoZone, Inc. 26,289 718.69 (4.9%) 18.6% 803.25 89.5% 11.2x 11.7x 11.6x 11.1x 10.4x

Genuine Parts Company 12,359 79.07 (7.2%) (22.0%) 101.40 78.0% 12.7x 11.2x 9.7x 9.4x 9.1x

LKQ Corp. 9,638 26.73 (5.0%) (2.4%) 32.25 82.9% 12.6x 13.0x 11.4x 10.1x 8.8x

O'Reilly Automotive Inc. 24,590 237.94 (4.4%) 26.7% 277.96 85.6% 13.7x 15.4x 14.6x 13.0x 12.0x

Pep Boys - Manny, Moe & Jack 1,252 18.47 13.0% 94.8% 19.03 97.1% 9.9x 12.1x 15.5x 14.5x 11.9x

U.S. Auto Parts Network, Inc. 104 2.61 13.5% 18.1% 3.34 78.1% 17.3x NM 19.5x 9.3x NA

Uni-Select Inc. 1,104 47.02 1.1% 81.2% 50.47 93.2% 10.2x 13.8x 12.6x 11.1x 10.6x

Median (2.8%) 18.3% 84.2% 11.9x 12.1x 12.1x 10.6x 10.4x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,018 $55.71 (20.8%) (25.2%) $96.58 57.7% 11.4x 12.4x 9.2x 8.6x 8.0x

AutoNation, Inc. 10,714 48.53 (20.8%) (17.7%) 67.50 71.9% 12.4x 12.3x 10.6x 9.5x 8.8x

Boyd Group Income Fund 837 42.86 (14.3%) 4.9% 49.62 86.4% 12.7x 11.7x 12.2x 10.3x 9.1x

CarMax Inc. 19,769 46.99 (18.2%) (27.8%) 75.40 62.3% NM NM 16.8x 16.6x 15.4x

Copart, Inc. 4,356 35.13 (8.2%) (2.7%) 39.86 88.1% 12.3x 11.5x 11.2x 10.2x 9.3x

Group 1 Automotive Inc. 4,084 61.15 (22.0%) (27.2%) 97.34 62.8% 11.1x 11.2x 10.0x 9.5x 8.7x

KAR Auction Services, Inc. 7,611 34.50 (8.9%) (0.5%) 39.87 86.5% 12.8x 12.5x 12.0x 10.6x 9.8x

Lithia Motors Inc. 4,110 87.50 (24.8%) 1.5% 126.56 69.1% 12.2x 14.5x 11.8x 10.0x 9.0x

Monro Muffler Brake Inc. 2,339 63.32 (9.0%) 11.1% 77.00 82.2% 14.7x 14.9x 14.8x 14.1x 12.3x

Penske Automotive Group, Inc. 7,550 35.54 (19.4%) (27.9%) 54.39 65.3% 14.0x 13.9x 11.8x 10.9x 10.0x

Sonic Automotive Inc. 3,072 19.04 (18.3%) (27.0%) 26.60 71.6% 10.7x 11.0x 10.2x 9.8x 9.2x

Median (18.3%) (17.7%) 71.6% 12.3x 12.4x 11.8x 10.2x 9.2x

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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 Jan-15 Jul-15 Current 2016P 2017P


TEV / LTM EBITDA as of


Bayerische Motoren Werke Aktiengesellschaft $148,992 $90.73 (12.0%) (13.4%) $134.73 67.3% 9.9x 11.4x 10.3x 9.2x 8.9x

Daimler AG 175,743 74.20 (9.5%) (9.6%) 104.63 70.9% 11.1x 11.6x 9.9x 7.9x 7.6x

Ford Motor Co. 155,040 12.77 (6.4%) (16.0%) 16.74 76.3% 13.9x 13.7x 11.7x 12.1x 11.2x

General Motors Company 83,071 30.25 (12.4%) (15.0%) 39.00 77.6% 8.4x 5.9x 6.2x 5.1x 4.9x

Harley-Davidson, Inc. 14,156 42.90 (6.0%) (33.8%) 66.28 64.7% 12.8x 12.1x 10.3x 9.8x 9.7x

Navistar International Corporation 4,906 7.50 (15.3%) (76.2%) 32.59 23.0% NM 16.7x 11.5x 8.0x 7.2x

Oshkosh Corporation 3,424 34.58 (11.2%) (19.6%) 55.69 62.1% 6.7x 7.3x 6.6x 6.6x 6.1x

PACCAR Inc. 21,278 45.23 (4.3%) (30.7%) 68.44 66.1% 11.7x 10.1x 7.4x 9.4x 9.5x

Toyota Motor Corporation 303,614 58.48 (7.9%) (8.9%) 74.83 78.2% 9.8x 9.5x 8.0x 8.7x 8.2x

Volkswagen AG 156,782 127.48 (9.7%) (40.4%) 285.85 44.6% 7.8x 7.9x 8.0x 5.6x 5.0x

Median (9.6%) (17.8%) 66.7% 9.9x 10.7x 9.0x 8.3x 7.9x

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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 $7,835 $9,308 $9,977 2.9% 12.8% $1,126 $1,224 $1,398 $1,339 $1,513 $1,644 6.0% 10.8%

Cooper Tire & Rubber Co. 4,201 3,439 3,425 2,964 3,018 3,106 (11.0%) 2.4% 629 483 518 448 464 445 (10.7%) (0.4%)

Dorman Products, Inc. 570 664 751 789 844 905 11.4% 7.1% 112 138 153 165 172 188 13.6% 6.7%

Federal-Mogul Holdings Corporation 6,444 6,786 7,317 7,390 7,584 7,790 4.7% 2.7% 439 565 611 605 659 710 11.3% 8.3%

The Goodyear Tire & Rubber Company 20,992 19,540 18,138 16,429 16,593 16,876 (7.8%) 1.4% 1,819 2,105 2,251 2,526 2,704 2,779 11.6% 4.9%

Modine Manufacturing Company 1,577 1,376 1,478 1,496 1,393 1,449 (1.7%) (1.6%) 128 96 116 109 115 133 (5.3%) 10.6%

Motorcar Parts of America, Inc. 179 213 259 302 382 432 19.1% 19.6% 31 37 35 36 83 94 5.5% 61.6%

Standard Motor Products Inc. 949 984 980 993 1,031 1,057 1.5% 3.2% 102 120 126 103 117 126 0.2% 10.7%

Tenneco Inc. 7,363 7,964 8,420 8,195 8,601 9,052 3.6% 5.1% 638 695 736 787 853 899 7.2% 6.9%

Visteon Corporation 5,715 6,371 7,509 3,087 3,232 3,396 (18.6%) 4.9% 479 560 646 274 306 335 (17.0%) 10.6%

Total $55,173 $54,774 $56,582 $49,479 $51,986 $54,039 0.4% 5.8% $5,503 $6,023 $6,590 $6,392 $6,987 $7,352 2.2% 13.1%


Advance Auto Parts Inc. $6,205 $6,494 $9,844 $9,765 $9,912 $10,227 16.3% 2.3% $847 $901 $1,243 $1,262 $1,400 $1,500 14.2% 9.0%

AutoZone, Inc. 8,604 9,148 9,475 10,187 10,738 11,355 5.8% 5.6% 1,841 2,000 2,081 2,223 2,382 2,545 6.5% 7.0%

Genuine Parts Company 13,014 14,078 15,342 15,373 15,752 16,273 5.7% 2.9% 1,114 1,209 1,273 1,270 1,310 1,377 4.5% 4.1%

LKQ Corp. 4,123 5,063 6,740 7,249 7,864 8,493 20.7% 8.2% 493 624 790 850 960 1,101 19.9% 13.8%

O'Reilly Automotive Inc. 6,182 6,649 7,216 7,926 8,499 9,043 8.6% 6.8% 1,159 1,291 1,468 1,717 1,882 2,047 14.0% 9.2%

Pep Boys - Manny, Moe & Jack 2,064 2,091 2,067 2,085 2,075 2,114 0.3% 0.7% 147 118 109 78 86 99 (19.2%) 12.6%

U.S. Auto Parts Network, Inc. 304 255 284 294 303 NA (1.1%) NA 8 5 5 8 11 NA 1.9% NA

Uni-Select Inc. 1,798 1,788 1,784 1,364 1,137 1,169 (8.8%) (7.4%) 79 82 92 98 99 103 7.5% 2.5%

Total $42,293 $45,565 $52,751 $54,242 $56,281 $58,675 6.0% 2.7% $5,687 $6,230 $7,062 $7,507 $8,130 $8,771 6.2% 8.3%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $4,475 $5,128 $5,639 $6,596 $7,009 $7,381 13.8% 5.8% $210 $259 $297 $333 $350 $380 16.6% 6.9%

AutoNation, Inc. 15,020 16,674 18,180 21,002 23,108 24,470 11.8% 7.9% 737 827 915 1,027 1,121 1,217 11.7% 8.9%

Boyd Group Income Fund 436 544 729 836 919 1,017 24.3% 10.3% 28 39 59 71 81 90 36.9% 12.5%

CarMax Inc. 10,004 10,963 12,574 14,269 15,147 16,404 12.6% 7.2% 783 828 932 1,091 1,188 1,281 11.7% 8.4%

Copart, Inc. 924 1,046 1,163 1,146 1,186 1,244 7.4% 4.2% 338 351 362 389 427 460 4.7% 8.7%

Group 1 Automotive Inc. 7,216 8,607 9,571 10,657 11,223 11,801 13.9% 5.2% 271 322 386 384 422 478 12.4% 11.6%

KAR Auction Services, Inc. 1,963 2,173 2,365 2,608 2,782 3,057 9.9% 8.3% 471 495 574 655 715 771 11.6% 8.5%

Lithia Motors Inc. 3,204 3,867 5,200 7,866 8,489 9,068 34.9% 7.4% 166 210 266 365 408 442 30.2% 10.0%

Monro Muffler Brake Inc. 687 732 831 894 953 1,047 9.2% 8.2% 115 101 127 147 165 190 8.4% 13.8%

Penske Automotive Group, Inc. 12,584 14,074 16,741 19,123 20,348 21,000 15.0% 4.8% 417 493 574 645 690 752 15.6% 8.0%

Sonic Automotive Inc. 8,115 8,571 8,897 9,624 10,035 10,241 5.8% 3.2% 288 300 300 298 312 326 1.1% 4.6%

Total $64,628 $72,380 $81,891 $94,620 $101,200 $106,731 14.4% 6.6% $3,824 $4,224 $4,792 $5,404 $5,880 $6,387 14.6% 9.3%

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PUBLIC COMPARABLES

10




Bayerische Motoren Werke Aktiengesellschaft $66,659 $75,546 $77,374 $96,471 $99,398 $102,410 13.1% 3.0% $13,956 $14,458 $14,636 $15,368 $16,046 $16,576 3.3% 3.9%

Daimler AG 122,715 132,833 142,477 137,845 159,761 166,664 4.0% 10.0% 14,309 14,947 15,784 20,429 21,299 22,454 12.6% 4.8%

Ford Motor Co. 128,168 126,567 139,369 135,782 138,793 145,572 1.9% 3.5% 11,464 12,370 11,211 10,916 12,855 13,560 (1.6%) 11.5%

General Motors Company 148,866 150,295 152,092 151,092 145,709 148,709 0.5% (0.8%) 10,914 12,356 9,084 14,848 15,643 17,297 10.8% 7.9%

Harley-Davidson, Inc. 4,662 4,943 5,258 5,568 5,330 5,481 6.1% (0.8%) 1,198 1,317 1,460 1,356 1,427 1,428 4.2% 2.6%

Navistar International Corporation 13,441 12,527 10,617 10,653 10,213 9,512 (7.5%) (5.5%) (468) (423) 152 425 614 688 NM 27.2%

Oshkosh Corporation 7,539 8,141 7,665 6,808 6,076 6,322 (3.3%) (3.6%) 511 636 622 517 524 557 0.4% 3.8%

PACCAR Inc. 15,326 15,952 15,949 17,793 18,136 17,245 5.1% (1.6%) 1,927 2,047 2,446 2,479 2,124 2,346 8.8% (2.7%)

Toyota Motor Corporation 215,055 212,497 222,030 236,160 225,419 240,861 3.2% 1.0% 17,273 26,711 34,414 34,667 34,062 36,481 26.1% 2.6%

Volkswagen AG 184,595 227,862 241,001 214,898 231,579 230,493 5.2% 3.6% 25,594 26,303 24,820 24,093 28,154 30,420 (2.0%) 12.4%

Total $907,026 $967,163 $1,013,833 $1,013,070 $1,040,414 $1,073,268 2.8% 0.9% $96,678 $110,722 $114,630 $125,098 $132,748 $141,807 7.0% 7.4%

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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