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WHAT WE RE READING SAMSUNG TO DEVELOP COMPONENTS FOR SELF-DRIVING CARS Samsung Electronics Co. says it will establish a new team for developing nextgeneration auto parts, joining global technology heavyweights in betting on the automotive market to drive growth. The new team will be separate from the company s existing three business units and will focus on making components used in self-driving and Internet-connected cars. The announcement is the company s first official acknowledgment of its interest in the automotive business where information technology is expected to play an increasing role in the gradual shift toward next-generation cars including electric vehicles and selfdriving cars. Wall Street Journal AMERICANS SAVE $363 MILLION USING INDEPENDENTLY PRODUCED PARTS The Quality Parts Coalition (QPC) released a new report, confirming the significant price gap between car company brand and independently produced auto collision repair parts that consumers need to repair their vehicles after an accident. The report revealed that American consumers saved more than $363 million by using independently produced parts rather than parts sold under car company brand names during the past five years. Quality Parts Coalition TRANSPORTATION BILL, WITH TIRE PROVISIONS, SENT TO PRES. OBAMA Having been passed by both the U.S. House of Representatives and Senate, the $305 billion five-year transportation infrastructure bill was sent to the White House on December 4. President Obama signed the bill, which, in addition to providing federal money to highway, transit and rail projects, also includes several provisions related to tire standards and registration. Related to tires, the bill contains three provisions advocated by RMA: setting minimum tire performance standards for tire fuel efficiency and wet traction; tire registration at point-of-sale; and the creation of a consumer-friendly tire recall search tool. Aftermarket News U.S. PROPOSES MAJOR CHANGES TO VEHICLE CRASH RATINGS Federal regulators proposed overhauling the government s five-star vehicle safety ratings to add scores for crash avoidance technology and pedestrian protection and to incorporate a new test that measures performance in a frontal offset crash. The new system, which would allow vehicles to be scored in half-star increments for the first time, would be used on cars and trucks starting with the 2019 model year. The National Highway Traffic Safety Administration said it plans to collect public comments and issue a final decision by the end of 2016. Automotive News CONTENTS M&A TRANSACTIONS PUBLIC MARKETS OVERVIEW STOCK PRICE PERFORMANCE OUR GROUP CONTACTS UNITED STATES Frank Mountcastle Managing Director fmountcastle@harriswilliams.com +1 (804) 915-0124 Jason Bass Managing Director jbass@harriswilliams.com +1 (804) 915-0132 Joe Conner Managing Director jconner@harriswilliams.com +1 (804) 915-0151 Jershon Jones Director jjones@harriswilliams.com +1 (804) 932-1356 Jeff Burkett Director jburkett@harriswilliams.com +1 (804) 932-1334 Jeff Kidd Vice President jkidd@harriswilliams.com +1 (804) 915-0178 EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) 69 3650638 00 PEP BOYS ACCEPTS BRIDGESTONE OFFER OVER ICAHN COUNTERBID Pep Boys accepted a sweetened, $15.50-a-share bid from Bridgestone Corp., which matched a counteroffer from billionaire investor Carl Icahn. The revised offer represents a total price of about $863 million, up $28 million, according to a statement Friday. Bridgestone, based in Tokyo, plans to use Pep Boys to push deeper into the U.S. and create the world s largest chain of tire and automotive centers. Bridgestone had previously agreed to buy Pep Boys for about $835 million, or $15 a share, in October. Bloomberg Business www.harriswilliams.com PAGE 1
M&A TRANSACTIONS RECENT M&A TRANSACTIONS 1,2 Date Target Business Description Acquirer 12/12/2015* Pep Boys - Manny, Moe & Jack Engages in the automotive aftermarket service and retail business. The company s service locations offer a range of automotive maintenance and repair services. 12/8/2015 Aquia Auto Parts, Inc. Distributes paints, coatings, and other finishes for the automotive market. Bridgestone Retail Operations, LLC Finishmaster Inc. 11/24/2015 Dynojet Research, Inc. Develops and manufactures fuel management and diagnostic products. Irving Place Capital; New Value Capital 11/19/2015 Colorado Components, Inc. Manufactures wheel alloys, tires, and accessories for all-terrain Wheel Pros, LLC vehicles, utility-terrain vehicles, low speed vehicles, recreational vehicles, side by sides, and golf carts. 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. Provides auto repair services 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 services. 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. 9/25/2015* Truck-Lite Co., LLC Manufactures and distributes safety lighting products and accessories to heavy-duty truck, trailer, and commercial vehicle industries. 9/23/2015* BraunAbility Manufactures automotive aftermarket mobility products for people with disabilities. AP Exhaust Products, Inc. BDT Capital Partners, LLC; Koch Equity Development, LLC Patricia Industries AB 9/22/2015 MSD LLC Designs, develops, tests, and manufactures ignition components. Lincolnshire Management, Inc 9/21/2015 Vintage Parts, Inc. Purchases and sells original equipment manufacturer obsolete, slow moving, and inactive parts for various industries and manufacturers. GenNx360 Capital Partners 9/13/2015* Solera Holdings Inc. Provides risk and asset management software and services to the automotive and property marketplace. Vista Equity Partners *Denotes pending transactions PAGE 2
PUBLIC MARKETS OVERVIEW TEV / LTM EBITDA TEV / 2015E EBITDA Dealerships and Services Providers 12.7x Dealerships and Services Providers 12.4x 12.4x 11.5x 9.7x 9.6x 5.9x 7.1x AVERAGE REVENUE GROWTH (2011 2014) AVERAGE REVENUE GROWTH (2014 2016P) Dealerships and Services Providers 14.7% Dealerships and Services Providers 11.9% 7.6% 3.7% 4.4% 1.0% 3.7% (0.9%) AVERAGE EBITDA GROWTH (2011 2014) AVERAGE EBITDA GROWTH (2014 2016P) Dealerships and Services Providers 15.9% 21.2% 9.3% Dealerships and Services Providers 13.0% 3.3% 9.8% 0.7% 4.5% PAGE 3
STOCK PRICE PERFORMANCE MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) S&P 500 (1.3%) S&P 500 1.3% Dealerships and Service Providers (1.1%) Distributors and Retailers 14.6% Distributors and Retailers (3.3%) Dealerships and Service Providers 5.1% Vehicle Manufacturers (1.8%) 1.7% (2.6%) Vehicle Manufacturers (9.6%) TRAILING TWELVE MONTHS (Indexed to December 11, 2014) 40% 30% 20% 10% 0% (10%) (20%) Dec-11-2014 Mar-11-2015 Jun-11-2015 Sep-11-2015 Dec-11-2015 Dealerships and Service Providers S&P 500 Index PAGE 4
OUR GROUP Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & Logistics Group serves companies in a broad range of attractive niches, including third-party logistics (3PL), truck, rail, marine and air transportation, transportation equipment, and the automotive and heavy duty vehicle market. RECENTLY CLOSED T&L TRANSACTIONS has acquired RCL Services Group in partnership with and has sold and to DEEP EXPERIENCE ACROSS T&L SECTORS THIRD-PARTY LOGISTICS RAIL & RAIL SERVICES MARINE TRANSPORTATION TRANSPORTATION EQUIPMENT NICHE TRANSPORTATION AUTOMOTIVE & HEAVY DUTY VEHICLE AIR TRANSPORTATION PAGE 5
OUR FIRM 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 and collaboration across the firm, and our commitment to learning what makes them unique. For more information, visit our website at www.harriswilliams.com/industries. Aerospace, Defense & Government Services Building Products & Materials Business Services Consumer Energy, Power & Infrastructure Healthcare & Life Sciences Industrials Specialty Distribution Technology, Media & Telecom Transportation & Logistics HARRIS WILLIAMS & CO. OFFICE LOCATIONS Boston Two International Place 24th Floor Boston, Massachusetts 02110 Phone: +1 (617) 482-7501 Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio 44114 Phone: +1 (216) 689-2400 Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota 55402 Phone: +1 (612) 359-2700 UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia 23219 Phone: +1 (804) 648-0072 San Francisco 575 Market Street 31st Floor San Francisco, California 94105 Phone: +1 (415) 288-4260 EUROPE Frankfurt Bockenheimer Landstrasse 33-35 60325 Frankfurt Germany Phone: +49 069 3650638 00 London 63 Brook Street London W1K 4HS, England Phone: +44 (0) 20 7518 8900 Beijing Hong Kong Mumbai NETWORK OFFICES New Delhi Shanghai PAGE 6
PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P Automotive Aftermarket BorgWarner Inc. $10,064 $41.12 (2.7%) (23.0%) $63.30 65.0% 9.2x 10.6x 7.5x 7.5x 6.6x Cooper Tire & Rubber Co. 2,165 39.88 (5.2%) 34.4% 43.94 90.8% 4.0x 4.1x 4.2x 4.8x 4.7x Dorman Products, Inc. 1,577 46.67 (2.4%) (3.6%) 53.75 86.8% 10.8x 11.5x 10.1x 9.6x 9.1x Federal-Mogul Holdings Corporation 4,165 7.32 (12.8%) (52.9%) 16.72 43.8% 7.7x 8.3x 7.2x 6.8x 6.2x The Goodyear Tire & Rubber Company 14,103 33.41 2.6% 24.1% 35.30 94.6% 5.7x 6.0x 5.9x 5.6x 5.3x Modine Manufacturing Company 520 8.93 1.6% (28.8%) 13.96 64.0% 6.3x 5.7x 5.3x 4.4x 4.5x Motorcar Parts of America, Inc. 720 38.94 0.6% 17.9% 41.03 94.9% 15.4x 15.6x NM 10.9x 8.6x Standard Motor Products Inc. 907 39.51 (8.0%) 6.9% 45.72 86.4% 6.7x 7.6x 7.9x 8.8x 7.7x Tenneco Inc. 4,070 49.76 (8.3%) (7.5%) 61.73 80.6% 5.8x 6.5x 5.6x 5.2x 4.8x Visteon Corporation 2,468 118.45 1.3% 23.8% 121.65 97.4% NM 8.7x 3.4x 9.0x 8.1x Median (2.6%) 1.7% 86.6% 6.7x 8.0x 5.9x 7.1x 6.4x Advance Auto Parts Inc. $12,303 $151.76 (22.1%) (3.5%) $201.24 75.4% 11.8x 10.5x 9.5x 9.9x 8.7x AutoZone, Inc. 28,130 777.69 (0.7%) 30.0% 803.25 96.8% 11.1x 11.9x 12.5x 12.6x 11.8x Genuine Parts Company 13,640 87.57 (1.5%) (14.1%) 109.00 80.3% 12.6x 11.5x 10.7x 10.5x 10.2x LKQ Corp. 10,225 28.65 (4.8%) (0.8%) 32.25 88.8% 13.6x 13.0x 12.1x 12.0x 10.7x O'Reilly Automotive Inc. 26,414 256.43 (4.9%) 34.4% 277.96 92.3% 14.4x 15.4x 15.7x 15.4x 14.0x Pep Boys - Manny, Moe & Jack 1,152 16.62 11.0% 93.3% 16.78 99.0% 9.3x 11.7x 14.2x 11.6x 11.4x U.S. Auto Parts Network, Inc. 94 2.31 (5.9%) (12.5%) 3.34 69.2% 17.6x 20.0x 17.6x 11.5x 8.4x Uni-Select Inc. 1,087 46.39 (1.7%) 121.9% 49.62 93.5% 8.9x 12.4x 12.4x 11.1x 11.0x Median (3.3%) 14.6% 90.5% 12.2x 12.2x 12.4x 11.5x 10.8x Dealerships and Service Providers Asbury Automotive Group, Inc. $3,457 $73.02 (4.0%) (3.4%) $96.58 75.6% 11.8x 12.7x 10.5x 10.4x 9.7x AutoNation, Inc. 12,291 62.79 (1.4%) 7.1% 67.50 93.0% 13.1x 12.9x 12.2x 11.9x 10.7x Boyd Group Income Fund 920 50.22 10.0% 46.9% 51.24 98.0% 13.6x 13.4x 13.8x 12.9x 11.1x CarMax Inc. 21,619 58.65 3.9% (0.4%) 75.40 77.8% NM NM 18.4x 20.0x 17.4x Copart, Inc. 4,805 38.86 4.9% 5.1% 39.86 97.5% 12.6x 11.5x 12.3x 12.1x 11.2x Group 1 Automotive Inc. 4,538 80.33 (5.6%) (11.1%) 97.34 82.5% 12.6x 11.5x 11.1x 11.3x 10.5x KAR Auction Services, Inc. 8,114 38.16 4.0% 12.2% 39.87 95.7% 14.3x 13.1x 12.7x 12.4x 11.4x Lithia Motors Inc. 5,000 121.39 2.0% 50.0% 126.56 95.9% 12.7x 16.2x 14.3x 13.8x 12.3x Monro Muffler Brake Inc. 2,600 71.48 (1.1%) 26.9% 77.00 92.8% 14.7x 15.4x 16.4x 18.2x 15.1x Penske Automotive Group, Inc. 8,374 44.69 (6.8%) (6.4%) 54.39 82.2% 14.2x 14.9x 13.1x 13.0x 12.0x Sonic Automotive Inc. 3,306 23.73 (3.7%) (9.7%) 27.84 85.2% 10.8x 10.8x 11.0x 11.2x 10.5x Median (1.1%) 5.1% 92.8% 12.9x 13.0x 12.7x 12.4x 11.2x PAGE 7
PUBLIC COMPARABLES Stock Performance Stock Price Change from 52-Week TEV / LTM EBITDA as of TEV / EBITDA ($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Dec-14 Jun-15 Current 2015E 2016P Automotive Aftermarket Bayerische Motoren Werke Aktiengesellschaft $160,738 $107.37 2.6% 8.6% $136.54 78.6% 10.5x 11.7x 11.3x 10.5x 9.8x Daimler AG 188,867 85.26 (1.0%) 13.5% 106.04 80.4% 11.2x 12.5x 10.8x 8.8x 8.3x Ford Motor Co. 159,763 13.96 (2.6%) (7.9%) 16.74 83.4% 14.6x 14.3x 12.1x 15.3x 12.8x General Motors Company 91,436 35.63 (0.1%) 11.4% 39.00 91.4% 6.7x 8.2x 6.8x 6.0x 5.6x Harley-Davidson, Inc. 14,812 46.32 (5.5%) (31.4%) 68.76 67.4% 13.0x 11.3x 10.7x 10.7x 10.2x Navistar International Corporation 5,285 9.37 (27.3%) (74.3%) 37.00 25.3% NM 18.1x 16.5x 10.5x 7.4x Oshkosh Corporation 3,904 40.20 (3.1%) (11.2%) 55.69 72.2% 6.7x 8.5x 7.6x 7.3x 7.5x PACCAR Inc. 22,568 48.88 (6.1%) (28.4%) 70.27 69.6% 12.7x 11.0x 7.9x 9.0x 9.5x Toyota Motor Corporation 315,549 63.13 (0.3%) 1.0% 72.94 86.5% 10.2x 10.0x 8.4x 10.2x 9.3x Volkswagen AG 166,867 147.08 38.8% (27.1%) 289.70 50.8% 7.8x 8.7x 8.6x 6.9x 6.0x Median (1.8%) (9.6%) 75.4% 10.5x 11.1x 9.7x 9.6x 8.8x PAGE 8
PUBLIC COMPARABLES Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Automotive Aftermarket BorgWarner Inc. $7,115 $7,183 $7,437 $8,305 $7,841 $9,352 5.3% 6.1% $1,073 $1,126 $1,224 $1,398 $1,337 $1,505 9.2% 3.7% Cooper Tire & Rubber Co. 3,908 4,201 3,439 3,425 2,964 3,018 (4.3%) (6.1%) 286 629 483 518 447 464 21.8% (5.3%) Dorman Products, Inc. 513 570 664 751 788 845 13.5% 6.0% 95 112 138 153 166 172 17.2% 6.0% Federal-Mogul Holdings Corporation 6,719 6,444 6,786 7,317 7,390 7,584 2.9% 1.8% 622 439 565 611 605 659 (0.6%) 3.9% The Goodyear Tire & Rubber Company 22,767 20,992 19,540 18,138 16,435 16,418 (7.3%) (4.9%) 1,893 1,819 2,105 2,251 2,526 2,704 5.9% 9.6% Modine Manufacturing Company 1,448 1,577 1,376 1,478 1,513 1,400 0.7% (2.7%) 103 128 96 116 119 116 4.0% (0.0%) Motorcar Parts of America, Inc. 161 179 213 259 317 382 17.1% 21.5% 30 31 37 35 66 83 4.9% 54.5% Standard Motor Products Inc. 875 949 984 980 993 1,031 3.9% 2.5% 79 102 120 126 103 117 17.0% (3.5%) Tenneco Inc. 7,205 7,363 7,964 8,420 8,199 8,623 5.3% 1.2% 597 638 695 736 785 844 7.2% 7.1% Visteon Corporation 7,532 5,715 6,371 7,509 3,089 3,233 (0.1%) (34.4%) 541 479 560 646 275 304 6.1% (31.4%) Total $58,243 $55,173 $54,774 $56,582 $49,529 $51,884 3.7% (0.9%) $5,319 $5,503 $6,023 $6,590 $6,429 $6,969 9.3% 4.5% Advance Auto Parts Inc. $6,170 $6,205 $6,494 $9,844 $9,765 $9,929 16.8% 0.4% $841 $847 $901 $1,243 $1,265 $1,409 13.9% 6.5% AutoZone, Inc. 8,073 8,604 9,148 9,475 10,151 10,732 5.5% 6.4% 1,691 1,841 2,000 2,081 2,229 2,381 7.2% 7.0% Genuine Parts Company 12,459 13,014 14,078 15,342 15,371 15,814 7.2% 1.5% 998 1,114 1,209 1,273 1,272 1,328 8.4% 2.2% LKQ Corp. 3,270 4,123 5,063 6,740 7,249 7,823 27.3% 7.7% 424 493 624 790 850 957 23.1% 10.0% O'Reilly Automotive Inc. 5,789 6,182 6,649 7,216 7,927 8,499 7.6% 8.5% 1,030 1,159 1,291 1,468 1,717 1,882 12.6% 13.2% Pep Boys - Manny, Moe & Jack 1,989 2,064 2,091 2,067 2,089 2,078 1.3% 0.3% 155 147 118 109 100 93 (11.3%) (7.7%) U.S. Auto Parts Network, Inc. 327 304 255 284 294 303 (4.7%) 3.4% 13 8 5 5 8 11 (26.1%) 44.2% Uni-Select Inc. 1,781 1,798 1,788 1,784 1,364 1,137 0.1% (20.2%) 97 79 82 92 98 99 (1.8%) 3.4% Total $39,857 $42,293 $45,565 $52,751 $54,210 $56,315 7.6% 1.0% $5,250 $5,687 $6,230 $7,062 $7,539 $8,159 3.3% 9.8% Dealerships and Service Providers Asbury Automotive Group, Inc. $4,004 $4,475 $5,128 $5,639 $6,606 $7,037 12.1% 11.7% $171 $210 $259 $297 $337 $356 20.2% 9.5% AutoNation, Inc. 13,305 15,020 16,674 18,180 21,010 23,042 11.0% 12.6% 652 737 827 915 1,040 1,153 11.9% 12.2% Boyd Group Income Fund 260 316 421 602 843 947 32.4% 25.4% 17 20 30 50 71 83 43.0% 29.2% CarMax Inc. 8,976 10,004 10,963 12,574 14,269 15,331 11.9% 10.4% 719 783 828 932 1,076 1,214 9.0% 14.1% Copart, Inc. 872 924 1,046 1,163 1,145 1,187 10.1% 1.0% 312 338 351 362 401 430 5.1% 9.1% Group 1 Automotive Inc. 5,884 7,216 8,607 9,571 10,656 11,265 17.6% 8.5% 225 271 322 386 384 428 19.6% 5.3% KAR Auction Services, Inc. 1,886 1,963 2,173 2,365 2,608 2,777 7.8% 8.4% 462 471 495 574 655 714 7.5% 11.5% Lithia Motors Inc. 2,549 3,204 3,867 5,200 7,850 8,522 26.8% 28.0% 129 166 210 266 359 407 27.4% 23.7% Monro Muffler Brake Inc. 637 687 732 831 901 969 9.3% 8.0% 101 115 101 127 143 169 8.0% 15.3% Penske Automotive Group, Inc. 10,769 12,584 14,074 16,741 19,128 20,367 15.8% 10.3% 342 417 493 574 651 698 18.9% 10.3% Sonic Automotive Inc. 7,312 8,115 8,571 8,897 9,623 10,033 6.8% 6.2% 263 288 300 300 298 313 4.4% 2.2% Total $56,453 $64,508 $72,256 $81,765 $94,638 $101,478 14.7% 11.9% $3,392 $3,817 $4,215 $4,782 $5,416 $5,965 15.9% 13.0% PAGE 9
PUBLIC COMPARABLES Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P Automotive Aftermarket Bayerische Motoren Werke Aktiengesellschaft $56,638 $63,246 $62,018 $87,973 $100,839 $103,870 15.8% 8.7% $11,419 $11,684 $11,589 $14,250 $15,592 $16,138 7.7% 6.4% Daimler AG 104,266 111,206 114,201 125,703 162,455 169,478 6.4% 16.1% 11,951 11,980 11,981 14,394 20,932 21,753 6.4% 22.9% Ford Motor Co. 128,168 126,567 139,369 135,782 138,762 145,409 1.9% 3.5% 12,163 11,464 12,370 11,211 10,324 12,257 (2.7%) 4.6% General Motors Company 148,866 150,295 152,092 151,092 145,694 148,085 0.5% (1.0%) 12,648 10,914 12,356 9,084 15,130 15,978 (10.4%) 32.6% Harley-Davidson, Inc. 4,662 4,943 5,258 5,568 5,336 5,481 6.1% (0.8%) 1,078 1,198 1,317 1,460 1,358 1,434 10.6% (0.9%) Navistar International Corporation 13,441 12,527 10,617 10,653 10,225 9,903 (7.5%) (3.6%) 958 (468) (375) 128 490 726 (48.9%) 138.1% Oshkosh Corporation 7,539 8,141 7,665 6,808 6,076 6,322 (3.3%) (3.6%) 668 511 636 622 539 529 (2.3%) (7.8%) PACCAR Inc. 15,326 15,952 15,949 17,793 18,138 17,750 5.1% (0.1%) 1,807 1,927 2,047 2,446 2,398 2,334 10.6% (2.3%) Toyota Motor Corporation 147,999 145,436 173,691 201,915 224,633 236,468 10.9% 8.2% 13,652 11,822 20,895 29,424 30,003 33,221 29.2% 6.3% Volkswagen AG 156,843 190,763 193,171 195,969 235,296 235,484 7.7% 9.6% 18,424 21,427 21,083 22,634 25,251 28,506 7.1% 12.2% Total $783,747 $829,076 $874,030 $939,257 $1,047,454 $1,078,250 4.4% 3.7% $84,768 $82,458 $93,898 $105,654 $122,017 $132,875 0.7% 21.2% PAGE 10
TRANSPORTATION & LOGISTICS SOURCES 1. Capital IQ. 2. MergerMarket. DISCLOSURES 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 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. 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 AT THE ABOVE ADDRESSES OR NUMBERS. 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. Copyright 2015 Harris Williams & Co., all rights reserved. PAGE 11