Automotive Industry Market Update

Transcription

1 Automotive Industry Market Update First Quarter 2013 Q Inside this issue: Valuation Metrics 2 Valuation Trends 4 Performance Trends 5 M&A Activity 6 Industry Metrics 7 Western Reserve Automotive Practice 8 Automotive Market Snapshot Western Reserve Partners provides M&A, capital raising and other financial advisory services to middle market companies across a focused set of industry verticals. We deliver thoughtful advice, keen market insight and superior execution to our clients, both nationally and internationally, and our managing directors average nearly 30 years of experience and have directly executed more than 600 transactions throughout their careers. Western Reserve Partners is a member firm of Oaklins, the world s most experienced mid-market M&A advisory organization, which provides unparalleled access to global companies and investors. The firm is a FINRA-member broker / dealer and member of SIPC. Q1 Q3 % YoY YTD Q1 % YoY YMiles TD Miles Driven Driven (in billions (in Billions ) 4 ) 4 2, % N.A. OEM Car N.A. Production Production (in 000s (in 000s ) ) 14,749 1, % 2.8% Avg. Retail Gasoline Price $2.44 $2.69 (24.9%) 21.9% N.A. Light Truck Production 2, % M&A 5 Q1 Q3 LTM Q1 Q3 LTM Count Value Value (in (in $Billions $Billions ) ) $726 $2.2 $15,977 $27,989 Public Market Performance 5 6 Q1 Q3 LTM Q1 Q3 LTM Automotive Manufacturers (1.6%) (8.) 3.3% 2. Aftermarket Aftermarket Suppliers Suppliers % 18.1% 21.1% Domestic OEM Suppliers (6.2%) 6.7% 12.2% 9.5% Retailers Retailers and and Distributors Distributors (6.3%) 9.8% (5.8%) 30.1% International OEM Suppliers 10.9% 0.2% 23.4% 4.6% Dealers Dealers and and Service Service Providers Providers (5.3%) (3.7%) 13.3% % 25% 15% 5% (5%) (15%) (25%) Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Automotive Manufacturers Domestic OEM Suppliers International OEM Suppliers Aftermarket Suppliers Retailers and Distributors Dealers and Service Providers

2 2 Automotive Industry Market Update Q Public Company Valuation Metrics 5 Price % of 52 LTM Margin Net Debt / EV/EBIT EV/EBITDA Company 03/31/17 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM Automotive Manufacturers Toyota Motor Corporation $ % $161,190 $294,059 $232,347 $18,019 $31, % 13.5% 3.9x 13.5x 14.0x 8.2x 1 Volkswagen Aktiengesellschaft $ % $74,247 $204,304 $229,354 $15,803 $25, % 11.3% 5.0x 10.4x 12.4x 6.8x 6.0x Daimler AG $ % $79,162 $186,756 $161,787 $13,361 $17, % x 13.3x 12.6x 10.1x 9.0x Ford Motor Company $ % $46,261 $161,874 $151,800 $4,587 $13, % 8.8% 8.7x 25.6x 28.0x 10.8x 14.8x Bayerische Motoren Werke Aktiengesellschaft $ % $59,385 $147,875 $99,401 $9,745 $13, % 13.6% 6.4x 14.3x 14.4x 10.4x 9.6x General Motors Company $ % $52,968 $116,234 $166,380 $9,996 $19, % 11.8% 3.2x 9.6x 9.9x 5.3x 6.4x Nissan Motor Co., Ltd. $ $37,660 $105,282 $98,598 $6,073 $9, % 10.1% 6.1x 13.6x 14.2x 8.9x 7.8x Honda Motor Co., Ltd. $ % $54,165 $102,627 $119,003 $5,471 $9, % 8.1% 4.5x 15.0x 13.5x 9.1x 8.6x Hyundai Motor Company $ % $29,170 $74,982 $77,789 $4,314 $6, % 7.9% 6.2x 12.1x 14.5x 9.2x 9.1x Tesla, Inc. $ % $45,390 $51,737 $7,000 ($625) $ % 4.6% 16.2x NM NM 161.7x 34.5x Fiat Chrysler Automobiles N.V. $ % $16,849 $23,866 $117,194 $5,751 $10, % 8.9% 0.6x 3.9x 3.4x 2.2x NM Kia Motors Corporation $ % $13,262 $12,793 $43,786 $2,045 $3, % 7.9% NM 5.8x 5.8x 3.4x 3.3x Peugeot S.A. $ % $17,122 $12,555 $57,036 $3,414 $5, NM 3.5x 3.5x 2.3x 2.0x AUDI AG $ % $29,325 $11,111 $62,617 $5,757 $8, % 12.9% NM NM NM NM NM Mazda Motor Corporation $ % $8,595 $8,955 $27,472 $1,331 $2, % 7.4% 0.1x 5.5x 6.4x 3.8x 4.0x Mean $48,317 $101,001 $110,104 $7,003 $11, % 9.8% 5.6x 11.2x 11.7x 18.0x 9.6x Median $45,390 $102,627 $99,401 $5,751 $9, % x 12.1x 12.6x 8.6x 8.6x Domestic OEM Suppliers Delphi Automotive PLC $ % $21,675 $25,170 $16,661 $2,305 $2, % 17.9% 1.1x 10.8x 11.2x 8.4x 8.5x Magna International Inc. $ % $16,415 $19,069 $36,445 $2,665 $3, % 10.6% 0.6x 6.5x 7.0x 4.6x 4.9x BorgWarner Inc. $ % $8,895 $10,755 $9,071 $1,120 $1, % 16.7% 1.2x 9.2x 9.4x 6.9x 7.1x Lear Corporation $ $9,726 $10,502 $18,558 $1,462 $1, % 9.9% 0.3x 6.8x 6.5x 5.5x 5.2x Adient plc $ % $6,808 $9,731 $16,642 $735 $1, % 6.5% 2.5x 8.9x 11.0x 6.7x 6.6x Gentex Corporation $ % $6,128 $5,592 $1,727 $525 $ % 35.5% NM 10.9x 10.1x 9.3x 8.6x Tenneco Inc. $ $3,389 $4,520 $8,599 $567 $ % 8.9% 1.4x 8.0x 6.7x 5.9x 5.0x Dana Incorporated $ % $2,783 $3,795 $5,826 $430 $ % 10.5% 1.5x 8.5x 7.9x 6.1x 5.4x Linamar Corporation $ % $2,963 $3,734 $4,471 $527 $ % 17.2% 1.0x 7.1x 7.1x 4.8x 4.7x Metro Performance Glass Limited $ $169 $235 $153 $24 $ % 19.4% 2.3x 10.4x 10.3x 8.3x 7.6x Visteon Corporation $ % $3,214 $2,856 $3,161 $244 $ % 10.1% NM 11.6x 10.3x 8.9x 7.9x American Axle & Manufacturing Holdings, Inc. $ % $1,444 $2,367 $3,948 $410 $ % 15.4% 1.5x 5.8x 5.3x 3.9x 3.4x Cooper-Standard Holdings Inc. $ % $1,964 $2,274 $3,473 $291 $ % 11.9% 0.7x 7.6x 7.2x 5.4x 5.1x Gentherm Incorporated $ $1,436 $1,430 $918 $113 $ % 16.4% NM 12.7x 12.4x 9.5x 9.2x Martinrea International Inc. $ % $670 $1,166 $2,954 $147 $ % 8.5% 2.0x 7.8x 6.9x 4.6x 4.1x Tower International, Inc. $ % $554 $890 $1,914 $106 $ % 9.3% 1.8x 8.4x 7.0x 5.0x 4.3x Superior Industries International, Inc. $ % $631 $573 $733 $55 $ % NM 10.5x 8.5x 6.5x 5.5x Stoneridge, Inc. $ $506 $553 $696 $49 $ % 10.3% 0.5x 11.1x 9.8x 7.6x 6.7x Shiloh Industries, Inc. $ % $237 $472 $1,063 $30 $67 9.8% 6.3% 3.5x 15.9x NM 7.1x NM STRATTEC Security Corporation $ $102 $131 $402 $13 $ % 5.9% 0.5x 11.6x 9.3x 6.0x 4.9x Mean $4,485 $5,291 $6,871 $591 $ % x 9.5x 8.6x 6.5x 6.0x Median $2,373 $2,612 $3,317 $351 $ % 10.5% 1.3x 9.1x 8.5x 6.3x 5.4x International OEM Suppliers Continental Aktiengesellschaft $ % $43,971 $47,510 $42,805 $4,488 $6, % x 10.3x 9.1x 7.2x 6.5x Valeo SA $ % $15,881 $16,724 $17,438 $1,336 $1, % 11.1% 0.3x 11.8x 10.4x 8.3x 6.4x Autoliv, Inc. $ $9,032 $9,598 $10,074 $874 $1, % 12.5% 0.3x 10.9x 10.8x 7.6x 7.5x GKN plc $ % $7,791 $8,716 $10,892 $733 $1, % 10.9% 0.7x 10.4x 8.1x 6.7x 6.4x Faurecia S.A. $ % $6,542 $7,140 $19,751 $1,022 $1, % 7.3% 0.3x 6.8x 6.2x 4.8x 3.8x Compagnie Plastic Omnium SA $ % $5,412 $6,420 $6,183 $507 $ % 11.4% 1.4x 11.3x 9.9x 8.4x 6.3x Brembo S.p.A. $ % $4,823 $5,059 $2,431 $325 $ % 17.9% 0.5x 14.8x 13.9x 11.2x 10.1x CIE Automotive, S.A. $ % $2,549 $4,004 $3,039 $301 $ % 2.1x 13.1x 10.8x 9.1x 7.7x ElringKlinger AG $ % $1,233 $1,840 $1,644 $150 $ % 14.7% 2.3x 12.1x 11.0x 7.5x 6.7x Autoneum Holding AG $ % $1,369 $1,531 $2,119 $154 $ % 10.5% 0.3x 9.6x 8.3x 6.7x 5.9x Tupy S.A. $ % $673 $925 $1,000 $38 $ % 12.4% 2.0x 23.7x 10.9x 7.2x 6.5x Grammer Aktiengesellschaft $ % $693 $853 $1,790 $74 $ % 6.8% 1.3x 11.4x 9.3x 7.0x 6.0x Mean $8,331 $9,193 $9,931 $834 $1, % 12.1% 1.0x 12.2x 9.9x 7.6x 6.6x Median $5,117 $5,740 $4,611 $416 $ % 11.9% 0.6x 11.4x 10.2x 7.4x 6.4x

3 3 Automotive Industry Market Update Q Public Company Valuation Metrics 5 Price % of 52 LTM Margin Net Debt / EV/EBIT EV/EBITDA Company 03/31/17 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM Aftermarket Suppliers The Goodyear Tire & Rubber Company $ % $9,069 $13,634 $15,158 $1,799 $2, % 16.5% 1.7x 7.6x 7.5x 5.4x 5.4x Snap-on Incorporated $ % $9,777 $10,747 $3,712 $855 $ % x 12.5x 11.6x 11.6x 10.5x Axalta Coating Systems Ltd. $ % $7,774 $10,625 $4,097 $544 $ % 21.1% 3.2x 19.5x 17.1x 12.3x 11.1x Allison Transmission Holdings, Inc. $ % $5,864 $7,847 $1,840 $452 $ % 3.2x 17.4x 16.3x 12.5x 11.9x Valvoline Inc. $ % $5,021 $5,525 $1,962 $454 $ % 25.1% 1.0x 11.8x 11.4x 10.9x 10.7x Dorman Products, Inc. $ % $2,826 $2,677 $860 $169 $ % 21.8% NM 15.9x 14.6x 14.3x 13.1x Meritor, Inc. $ % $1,511 $2,404 $3,089 $175 $ % 7.9% 3.6x 11.4x 10.8x 8.6x 7.5x Cooper Tire & Rubber Company $ % $2,347 $2,222 $2,925 $462 $ % 20.3% NM 4.8x 6.8x 3.8x 4.8x Standard Motor Products, Inc. $ % $1,122 $1,157 $1,058 $120 $ % 13.2% 0.3x 9.5x 10.1x 8.1x 9.2x Fox Factory Holding Corp $ % $1,068 $1,099 $403 $54 $ % 15.6% 0.5x 20.2x 17.0x 17.5x 14.1x Modine Manufacturing Company $ % $611 $1,081 $1,358 $63 $ % 8.5% 4.0x 17.3x 10.9x 9.4x 6.3x Horizon Global Corporation $ % $354 $654 $649 $33 $ % 7.9% 5.9x 19.9x 12.8x 8.4x Motorcar Parts of America, Inc. $ % $574 $607 $404 $63 $ % 16.5% 0.5x 9.6x 6.5x 9.1x 6.2x Mean $3,686 $4,637 $2,886 $403 $ % x 13.6x 11.7x 10.5x 9.2x Median $2,347 $2,404 $1,840 $175 $ % 16.5% 1.7x 12.5x 11.4x 10.9x 9.2x Aftermarket Retailers and Distributors O'Reilly Automotive, Inc. $ % $24,730 $26,470 $8,593 $1,699 $1, % 22.3% 0.9x 15.6x 14.1x 13.8x 12.5x AutoZone, Inc. $ % $20,540 $25,470 $10,750 $2,083 $2, % 22.2% 2.1x 12.2x 11.5x 10.7x 10.1x Genuine Parts Company $ % $13,712 $14,397 $15,527 $1,068 $1, % 0.7x 13.5x 12.8x 11.8x 11.1x LKQ Corporation $ % $9,021 $12,139 $8,584 $805 $1, % 11.7% 3.1x 15.1x 13.7x 12.1x 11.0x Advance Auto Parts, Inc. $ % $10,944 $11,866 $9,568 $863 $1, % 11.7% 0.8x 13.7x 12.6x 10.6x 9.9x Uni-Select Inc. $ % $1,121 $1,220 $1,197 $90 $ % 8.6% 0.9x 13.5x 12.1x 11.7x 9.9x U.S. Auto Parts Network, Inc. $ % $116 $120 $304 $2 $ % 3.1% 0.4x 78.9x 36.2x 12.6x 7.4x Mean $11,455 $13,097 $7,789 $944 $1, % 1.3x 23.2x 16.1x 11.9x 10.3x Median $10,944 $12,139 $8,593 $863 $1, % 11.7% 0.9x 13.7x 12.8x 11.8x 10.1x Dealers and Service Providers CarMax Inc. $ % $11,081 $22,857 $16,637 $1,064 $1, % 7.4% 9.8x 21.7x 20.4x 18.8x 17.6x AutoNation, Inc. $ % $4,268 $10,773 $21,609 $827 $ % 4.5% 6.7x 13.0x 12.7x 11.1x 10.8x KAR Auction Services, Inc. $ % $5,971 $9,520 $3,150 $499 $ % 4.8x 19.2x 16.7x 12.9x 11.5x Penske Automotive Group, Inc. $ % $4,001 $9,201 $20,119 $575 $ % 3.3% 7.8x 14.3x 15.4x 12.5x 12.9x Copart, Inc. $ % $7,113 $7,650 $1,375 $442 $ % 35.5% 1.1x 17.3x 15.6x 15.7x 13.8x Lithia Motors, Inc. $ % $2,156 $4,498 $8,931 $363 $ % 5.5x 13.0x 11.6x 11.4x 10.4x Group 1 Automotive, Inc. $ % $1,521 $4,254 $10,888 $370 $ % 3.9% 6.5x 11.5x 11.4x 10.1x 10.7x Sonic Automotive, Inc. $ $900 $3,312 $9,732 $229 $ % 3.2% 7.8x 14.5x 15.0x 10.8x 11.1x Asbury Automotive Group, Inc. $ % $1,271 $3,058 $6,528 $297 $ % x 10.3x 10.4x 9.3x 9.5x Monro Muffler Brake, Inc. $ $1,697 $2,085 $999 $123 $ % 16.7% 2.3x 16.9x 15.3x 12.5x 11.3x Boyd Group Income Fund $ % $1,163 $1,246 $1,033 $67 $ % 8.9% 0.9x 18.4x 15.4x 13.4x 11.4x AutoCanada Inc. $ % $461 $1,128 $2,153 $68 $ % 3.8% 7.5x 16.5x 14.7x 13.6x 14.3x America's Car-Mart, Inc. $ % $284 $407 $590 $34 $ % 6.5% 3.2x 8.6x 10.6x 7.9x Mean $3,222 $6,153 $7,980 $381 $ % 9.8% 5.3x 15.3x 14.1x 12.5x 11.8x Median $1,697 $4,254 $6,528 $363 $ % x 14.5x 15.0x 12.5x 11.3x

4 4 Automotive Industry Market Update Q Public Market Average Enterprise Value / EBITDA Valuation Trends 5 Automotive Manufacturers Aftermarket Suppliers 9.0x 6.0x 7.7x 6.2x 6.8x 6.5x 6.1x 6.0x 7.5x 8.1x 9.0x 6.0x 10.8x 9.9x 9.6x 8.9x 9.0x 10.4x 10.7x 10.5x 3.0x 3.0x Domestic OEM Suppliers Retailers and Distributors 16.0x 9.0x 7.8x 12.1x 12.4x 11.9x 12.6x 11.9x 12.1x 6.0x 6.6x 6.3x 5.4x 6.4x 5.7x 5.9x 6.3x 8.0x 3.0x 4.0x International OEM Suppliers Dealers and Service Providers 16.0x 9.0x 8.4x 13.3x 12.9x 12.7x 11.7x 11.5x 12.3x 12.7x 13.1x 6.9x 7.5x 6.9x 6.7x 6.7x 7.0x 7.6x 6.0x 8.0x 3.0x 4.0x

5 5 Automotive Industry Market Update Q Public Market Performance Trends 5 Automotive Manufacturers Aftermarket Suppliers 18% 16% 18.2% 17.8% 17.5% 18.3% 17.9% 18.1% 17.8% 17.6% 25% 15% 32% 3 28% 27.8% 28.4% 29.1% 29.7% 30.3% 30.6% 30.9% 31.3% 6% 4% 2% 14% 12% (3.6%) 3.5% 2.5% 0.3% 4.7% 1.9% 0.8% (7.1%) 5% (5%) 26% 24% 22% (1.6%) (1.7%) (2.2%) (1.5%) (1.1%) (1.) (1.2%) (0.4%) (2%) 1 (15%) (4%) Domestic OEM Suppliers Retailers and Distributors 19% 1 44% 8% 17% 15% 13% 11% 14.1% 14.4% (0.3%) (0.4%) 14.7% 14.9% (2.3%) (0.7%) 15.1% 1.4% 15.4% % 1.5% 15.8% 0.7% 7% 4% 1% (2%) (5%) 42% 4 38% 36% 41.5% 1.1% 41.7% 0.9% 41.8% % 42.1% % 1.3% % 0.4% (0.1%) 6% 4% 2% 9% (8%) 34% (2%) International OEM Suppliers Dealers and Service Providers 26% 25% 24% 23% 24.1% 24.9% % 24.7% 25.3% 23.7% 25.4% 3 18% % % 1 8% 22% 1 16% 6% 21% 3.3% 2.1% 1.4% 5.5% 2.2% 14% 4% 19% 18% 17% 16% (1.3%) (2.9%) (8.) (1) () 12% 1 3.3% 2.9% % 1.4% % 1. 2%

6 6 Automotive Industry Market Update Q Announced Merger and Acquisition Trends 5 Transaction Volume Transaction Value (# of Deals) ($ in millions) 20, Q1'15 Select Merger and Acquisition Activity 16,000 12,000 8,000 4,000 0 $11,158 $8,433 $5,984 $4,386 $2,046 $3,193 $2,657 $835 $726 Q1'15 Date Target Buyer Overview AirPower America Dy naplas Hopkins Manufacturing Corp. (ONCAP) National Molding (Taglich Priv ate Equity ) Supplies oil and fluid extractors and air pumps Manufactures specialized injection molded automotiv e components UNIWHEELS AG Superior Industries International Supplier of aluminum wheels to the European OEM and aftermarket Kongsberg Autom otiv e - North American Headrest / Armrest business * Mobiley e Intel RoadWorks Manufacturing Auction Broadcasting Company US Manufacturing Corp. - Michigan Ops (Wy nnchurch Capital) Futuris Automotive (Clearlake Capital Group) Lund International (Highlander Partners) America's Auto Auction (Trinity Hunt Partners) Dana Incorporated Hi-Tech Industries Highlander Partners Provider of headrests and armrests to the automotive industry Prov ider of com puter v ision sy stem s for ADAS and autonom ous driv ing solutions Manufactures and distributes aftermarket accessories for the heav y truck market Full serv ice auto auction company Manufactures axle housing and driveline shafts Prov ides a full line of professional car care product accessories and specialty aerosols to the automotiv e appearance industry Feb-1 7 Creativ e Extruded Products Quilv est Priv ate Equity Manufactures thermoplastic profile extrusions Feb-1 7 Jack Lyons Truck Parts of Ft. Myers TruckPro Prov ides new, used and rebuilt heav y -duty aftermarket truck parts Feb-1 7 Performance Motorsports International Kinderhook Industries Feb-1 7 Feb-1 7 GT Technologies (American Securities) King Kalipers Industrial Opportunity Partners BBB Industries (Pamplona Capital Management) Manufactures performance and racing pistons and related engine components for automotiv e and powersports performance markets Manufactures custom-engineered gasoline and diesel engine v alv etrain actuation com ponents and assem blies Remanufactures automotiv e brake calipers Feb-1 7 Time-it Lube Valv oline Chain of quick lube serv ice shops Jan-1 7 Jan-1 7 Jan-1 7 WELD Racing (Granite Creek Partners) Caseco Manufacturing American Driv eline Sy stems (American Capital) MOMO Automotiv e Group The Reading Group (J.B. Poindexter & Co) Transom Capital Group Jan-1 7 Mov imento Delphi Automotiv e * Announced transaction Designs and manufactures one, two and three piece wheels for automotive enthusiasts and the racing industry Manufactures and upfits serv ice utility truck bodies and serv ice crane bodies Franchisor of AAMCO and Cottman retail transmission repair chains Prov ides ov er the air software lifecy cle and data management for the automotiv e sector

7 7 Automotive Industry Market Update Q Industry Metrics North American Light Vehicle Production 3 Retail Gasoline Price 2 Production, YTD March % Share % Change $3.50 U.S. Car 858,306 1,009,379 (15.) 53.7% 59.4% U.S. Light Truck 2,092,468 1,986, % 71.8% 72.9% U.S. Light Vehicle 2,950,774 2,996,145 (1.5%) 65.4% 67.7% Canada Car 199, ,183 (8.8%) 12.5% 12.8% Canada Light Truck 398, ,942 (2.3%) 13.7% 15. Canada Light Vehicle 597, ,125 (4.6%) 13.2% 14.1% Mexico Car 539, , % 33.8% 27.8% Mexico Light Truck 422, , % 14.5% 12.1% Mexico Light Vehicle 962, , % 21.3% 18.1% $3.00 $2.50 $2.00 $1.50 $2.37 $2.47 $2.35 $2.28 $2.33 $2.36 $2.30 $2.37 $2.46 $2.42 $2.44 $2.22 () North America Car 1,596,948 1,700,453 (6.1%) 35.4% 38.4% North America Light Truck 2,913,876 2,724, % 64.6% 61.6% North America LV 4,510,824 4,425, % $1.00 A-16 M-16 J-16 J-16 A-16 S-16 O-16 N-16 D-16 J-17 F-17 M-17 Retail Gasoline Price (All Grades) YOY Change (4) U.S. Light Vehicle Sales and Market Share 7 Miles Traveled 1 Unit Sales, YTD March % Share % Change General Motors 256, , % 16.5% 15.9% Ford 234, ,064 (7.2%) 15.1% 16. Toyota 215, ,842 (2.1%) 13.8% 13.9% FCA 191, ,464 (4.4%) 12.3% 12.7% Nissan 168, , % 10.9% 10.3% Honda 137, ,221 (0.7%) 8.8% 8.7% Hyundai-Kia 118, ,589 (11.1%) 7.6% 8.4% VW Group 51,156 49, % 3.3% 3.2% BMW 36,112 34, % 2.3% 2.2% Mercedes-Benz 32,352 31, % 2. Jaguar Land Rover 12,918 10, % 0.8% 0.7% % 3.6% 2.8% 2.2% 1.9% 1.4% 1.5% 1.4% 0.9% 0.5% -0.2% % F-16 M-16 A-16 M-16 J-16 J-16 A-16 S-16 O-16 N-16 D-16 J-17 F-17 YoY Monthly Change Miles Traveled Citations and Sources 1. St. Louis Federal Reserve 2. U.S. Department of Energy 3. Wards 4. Q1 represents three months ended February Capital IQ, Targets in the U.S. and Canada 6. Indices weighted by market capitalization 7. Automotive News This newsletter is published solely for the general information of clients and friends of Western Reserve Partners LLC. Information contained 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 informational purposes only. Information contained in this publication is based on data obtained from sources we deem to be reliable; however, we do not guarantee or represent that it is accurate or complete, and it should not be relied upon as such. This report may contain references to registered trademarks, service marks and copyrights owned by third-party information providers. Opinions expressed are our current opinions as of the date appearing on this material only. This material should not be read as advice or recommendations, and we are not soliciting any action based upon receipt of this information. Nothing in this publication is intended to be an offer to buy or sell or the solicitation of an offer to buy or sell any specific security or company. The testimonials presented are applicable to the individuals depicted and may not be representative of the experience of others. The testimonials are not paid and are not indicative of future performance or success.

8 8 Automotive Industry Market Update Q Recent Automotive Industry Transactions a subsidiary of has been acquired by has sold its Wiring Business segment to and has been acquired by & Defiance Partners has been acquired by & owned by management and affiliates of has been recapitalized by has been sold to Private Investors in a Management Buyout and management Automotive Practice Overview Western Reserve s professionals have extensive experience in the automotive industry, having completed 67 transactions at a collective value of more than $5 billion We have worked with clients across the automotive industry, including: Segments Aftermarket Original Equipment Manufacturing Distribution Retail and Services Specialty Vehicles Systems Air and Fluid Drivetrain and Powertrain Electrical Exterior and Body Interior Components and Assemblies Please us at auto@wesrespartners.com to subscribe to our market update Materials Metal Rubber Plastic Electronics Engineered Materials Matthew J. Mueller Automotive Practice Leader mmueller@wesrespartners.com