TRANSPORTATION & LOGISTICS

Transcription

1 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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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.

2 WHAT WE RE READING TECH AND THE FUTURE OF TRANSPORTATION For a novel form of transport to make a material difference to our lives, several key requirements must be satisfied. Obviously the new technology must work safely, and operate within an appropriate regulatory framework. But public acceptance and solid business models are also vital if a new idea is to move from R&D lab to testbed to early adoption, and eventually into mainstream usage. There's inevitably a lot of hype surrounding the future of transportation, but also plenty of substance, with big investments being made both by disruptive tech companies and by incumbent industry players. Can technology help to get us and our goods around quicker, in greater safety, and with less damage to the planet? Driverless cars, or Connected and Autonomous Vehicles (CAVs) are getting the lion's share of attention, but the wider implications of CAVs and other novel forms of transport are also firmly on the agenda -- including smarter, greener cities and more efficient distribution of freight and consumer deliveries. ZDNet HOW SELF-DRIVING CARS WILL CHANGE CITIES The autonomous vehicle industry is one of the most buzzworthy topics in the tech world today, and venture capitalists are walking the talk. In 2017, self-driving technology investment skyrocketed. Nearly $4 billion worth of venture capital was invested across 68 deals last year, up from $626 million spanning 34 deals the year before, per the PitchBook Platform. Those figures are a far cry from 2012, when less than $1 million in venture capital was invested across four transactions. The massive amount of funding that's been funneled into autonomous vehicle tech over the last year is representative of innovation in the industry and points to the fact that companies are actively building self-driving cars and their accompanying features (LIDAR sensors, mapping tools, etc.). PitchBook U.S. AUTO SUPPLIERS URGE NAFTA TO COMPROMISE A trade group representing U.S. auto suppliers urged the Trump administration to adopt NAFTA automotive rules that cover research, engineering, design and software development work as part of North American regional value content goals. The proposal from the Motor and Equipment Manufacturers Association was sent to U.S. Trade Representative Robert Lighthizer as a sixth round of negotiations to revise the North American Free Trade Agreement began in Montreal. U.S. demands for sweeping changes to automotive content rules are among the most contentious issues in the NAFTA talks, including a requirement that half the value of all North American vehicles come from the U.S. and a far higher content requirement of 85 percent from North America. Automotive News E-COMMERCE AUTOMOTIVE AFTERMARKET TO HIT $30B BY 2025 The e-commerce automotive aftermarket is expected to cross $30 billion USD by 2025, according to a new research report by Global Market Insights Inc. The global e-commerce automotive aftermarket is expected to generate a demand of more than 1 billion units till Increasing age of vehicles across the globe, specifically in developed countries coupled with shifting consumer preference towards online purchase of auto components will primarily drive the industry growth over the forecast timeframe. Changing style preferences of consumers and increasing customizations in vehicles will further strengthen the industry penetration. Steering and suspension is anticipated to dominate the e-commerce automotive aftermarket share over the forecast timeframe. This can be credited to rising demand of components such as control arms, coil springs and bearings. Availability of numerous options at reasonable price and choice will positively impact the product demand. Aftermarket 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) Jason Bass Managing Director jbass@harriswilliams.com +1 (804) Joe Conner Managing Director jconner@harriswilliams.com +1 (804) Jershon Jones Director jjones@harriswilliams.com +1 (804) Jeff Burkett Director jburkett@harriswilliams.com +1 (804) Jeff Kidd Director jkidd@harriswilliams.com +1 (804) James O Malley Vice President jomalley@harriswilliams.com +1 (804) Jon Meredith Vice President jmeredith@harriswilliams.com +1 (804) EUROPE Jeffery Perkins Managing Director jperkins@harriswilliams.com +49 (0) PAGE 1

3 M&A TRANSACTIONS (1) RECENT M&A TRANSACTIONS Date Target Business Description Acquirer 1/16/2018 Parkmobile Provides mobile parking services in North America BMW Group 1/11/2018 AFG Allgemeine Provides automotive distribution services Mosolf Se & Co. Kg Fahrzeugübernahme- Gesellschaft mbh 1/11/2018 Continental Batteries Distributes aftermarket batteries Incline Equity Partners 1/11/2018 Jett Express Car Washes LLC Provides car cleaning services with a tunnel express conveyor Zips Car Wash LLC 1/9/2018 Tiger Accessories Group Supplies vehicle lighting and cleaning products in North America Hopkins 1/8/2018 Levin s Auto Supply Supplies automotive aftermarket products to retailers and automotive parts stores Highline Aftermarket 1/8/2018 Piston Rings Komarov Designers and manufacturers of piston rings for the OEM and aftermarket channels Hastings Manufacturing 1/4/2018 SARL Giraud-Garage du Bois de la Chaize Provides automotive repair services Giraud-Garage du Bois de la Chaize SARL /Monnier/ 1/4/2018 Truck Parts & Equipment, Inc. Supplies new and used semi trailers and truck equipment FleetPride, Inc. 1/3/2018 Scot Lubricants, Inc. Provides blending and packaging of lubricants Coolants Plus, Inc. 12/31/2017 Bumperdoc, Inc. /San Diego Shop/ Provides automotive repair services Bumperdoc, Inc. /Coons/ 12/29/2017 A. Huber AG Provides car repair services Auto Wild AG 12/22/2017 Touratech AG Retails motorcycle accessories including oil cans, flender flares, caliper cover, and frame coverthrough online Pelzer Swiss Holding AG 12/12/2017 The Car People Ltd. Operates as a dealer of used cars Penske Automotive Group, Inc. 12/19/2017 Spectrum Coatings Distributes and wholesale automotive and industrial paint products FinishMaster 12/14/2017* Brink Group BV Provides towing solutions and offers racks, containers, carriers, and storage units for cars, trucks, and recreational vehicles Horizon Global Corp. 12/14/2017* WITTE Stromberg GmbH Manufactures hinges for the automotive industry WITTE Stromberg GmbH /Private Group/ 12/14/2017* Ryds Bilglas AB Provides automobile glass repair, replacement and installation services include glazing, railings, décor with glass and window film Triona Holding SA 12/13/2017 Visteon Corp. /FR Automotive Electronic Unit/ Manufactures automotive electronic parts American Industrial Acquisition Corp. *Denotes pending transactions PAGE 2

4 PUBLIC MARKETS OVERVIEW (1) TEV / LTM EBITDA TEV / 2018P EBITDA Dealerships and Services Providers 13.1x Dealerships and Services Providers 12.1x 11.9x 10.7x 10.7x 10.3x 8.9x 7.4x AVERAGE REVENUE GROWTH ( ) AVERAGE REVENUE GROWTH ( P) Dealerships and Services Providers 8.9% Dealerships and Services Providers 5.3% 2.9% 3.2% 0.8% (8.8%) (0.7%) (18.5%) AVERAGE EBITDA GROWTH ( ) AVERAGE EBITDA GROWTH ( P) 9.4% Dealerships and Services Providers 7.0% Dealerships and Services Providers 9.1% 5.2% 5.5% (7.0%) 0.2% (16.0%) PAGE 3

5 STOCK PRICE PERFORMANCE (1) MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH) Distributors and Retailers 9.5% S&P % Dealerships and Service Providers 8.6% Vehicle Manufacturers 20.2% 8.4% Dealerships and Service Providers 16.2% Vehicle Manufacturers 5.9% 14.4% S&P % Distributors and Retailers (0.6%) TRAILING TWELVE MONTHS (Indexed to January 25 th, 2017) 30% 20% 10% 0% (10%) (20%) (30%) Jan-17 Apr-17 Jul-17 Oct-17 Jan-18 Dealerships and Service Providers S&P 500 Index PAGE 4

6 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 A portfolio company of has been recapitalized by has merged with is merging with an operating company of has merged with in a recapitalization by and 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

7 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 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 One International Place Suite 2620 Boston, Massachusetts Phone: +1 (617) Cleveland 1900 East 9th Street 20th Floor Cleveland, Ohio Phone: +1 (216) Minneapolis 222 South 9th Street Suite 3350 Minneapolis, Minnesota Phone: +1 (612) UNITED STATES Richmond (Headquarters) 1001 Haxall Point 9th Floor Richmond, Virginia Phone: +1 (804) San Francisco 575 Market Street 31st Floor San Francisco, California Phone: +1 (415) Washington, D.C th St. NW 2nd Floor Washington, D.C Phone: Beijing Hong Kong Mumbai EUROPE Frankfurt Bockenheimer Landstrasse Frankfurt Germany Phone: London 63 Brook Street London W1K 4HS, England Phone: +44 (0) NETWORK OFFICES New Delhi Shanghai PAGE 6

8 PUBLIC COMPARABLES (1) 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 Jan-17 Jul-17 Current 2018P 2019P Automotive Aftermarket BorgWarner Inc. $13,989 $ % 41.7% $ % 6.9x 7.4x 8.9x 8.0x 7.5x Cooper Tire & Rubber Company 2, % 14.4% % 3.1x 4.1x 4.4x 5.1x 5.1x Dorman Products, Inc. 2, % 10.1% % 11.8x 12.6x 12.1x 10.7x 10.0x Goodyear Tire & Rubber Company 14, % 16.7% % 5.0x 6.0x 6.7x 6.0x 5.6x Modine Manufacturing Company 1, % 65.2% % 8.0x 9.3x 9.3x 7.4x 6.8x Motorcar Parts of America, Inc % 4.6% % 9.0x 7.8x 8.7x 5.8x NA Standard Motor Products, Inc. 1, % (8.9%) % 9.9x 10.0x 9.1x 8.5x NA Tenneco Inc. 4, % (9.3%) % 6.4x 7.1x 7.4x 5.0x 4.7x Visteon Corporation 3, % 40.8% % 9.0x 9.4x 10.7x 9.9x 9.1x Median 8.4% 14.4% 90.2% 8.0x 7.8x 8.9x 7.4x 6.8x Advance Auto Parts, Inc. $9,428 $ % (31.2%) $ % 12.7x 8.9x 11.0x 9.4x 8.6x AutoZone, Inc. 26, % 2.4% % 11.6x 8.3x 11.1x 10.8x 10.4x Genuine Parts Company 16, % 4.4% % 12.8x 10.8x 13.8x 10.7x 10.4x LKQ Corporation 16, % 35.5% % 12.8x 12.2x 14.9x 13.0x 12.2x O'Reilly Automotive, Inc. 26, % (0.6%) % 14.7x 10.2x 13.7x 13.0x 12.3x U.S. Auto Parts Network, Inc % (31.1%) % 14.4x 13.8x 11.9x 6.9x NA Uni-Select Inc. 1, (3.7%) (4.1%) % 10.1x 10.1x 11.9x 9.2x 8.8x Median 9.5% (0.6%) 97.9% 12.8x 10.2x 11.9x 10.7x 10.4x Dealerships and Service Providers Asbury Automotive Group, Inc. $3,243 $ % 17.4% $ % 9.7x 9.1x 9.9x 10.0x 10.6x AutoNation, Inc. 10, % 16.2% % 9.8x 9.3x 11.3x 11.3x 10.4x Boyd Group Income Fund 1, % 30.9% % 13.4x 15.0x 18.3x 13.3x 11.6x CarMax, Inc. 25, % 7.3% % NM NM NM 18.4x 17.5x Copart, Inc. 11, % 59.5% % 15.4x 15.3x NM 17.4x 15.6x Group 1 Automotive, Inc. 4, % 0.7% % 10.5x 10.2x 10.4x 10.9x 10.9x KAR Auction Services, Inc. 10, % 20.0% % 13.3x 11.6x 13.5x 12.1x 11.1x Lithia Motors, Inc. Class A 5, % 26.1% % 12.1x 11.4x 13.1x 12.1x 11.3x Monro Inc 2, % 5.5% % 14.0x 12.1x 14.4x 12.5x 11.2x Penske Automotive Group, Inc. 10, % 3.1% % 14.6x 13.8x 15.1x 13.1x 12.6x Sonic Automotive, Inc. Class A 3, % (3.5%) % 10.9x 10.7x 11.0x 11.2x 10.8x Median 8.6% 16.2% 98.2% 12.7x 11.5x 13.1x 12.1x 11.2x PAGE 7

9 PUBLIC COMPARABLES (1) 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 Jan-17 Jul-17 Current 2018P 2019P Automotive Aftermarket Bayerische Motoren Werke AG $178,798 $ % 26.7% $ % 8.1x 9.7x 10.9x 9.7x 9.3x Daimler AG 216, % 22.7% % 7.0x 8.2x 10.4x 8.7x 8.5x Ford Motor Company 164, (4.5%) (2.8%) % 12.5x 12.5x 13.4x 13.9x 13.0x General Motors Company 134, % 17.0% % 5.6x 5.1x 6.0x 7.9x 7.5x Harley-Davidson, Inc. 15, % (8.2%) % 13.4x 12.8x 17.4x 13.2x 12.9x Navistar International Corporation 8, % 61.0% % 13.2x 16.2x 12.3x 10.9x 9.7x Oshkosh Corp 7, % 34.9% % 10.9x 9.6x 12.1x 11.2x 10.2x PACCAR Inc 32, % 17.6% % 9.7x 10.0x 10.4x 9.6x 9.1x Toyota Motor Corp. 342, % 17.3% % 9.1x 9.0x 10.3x 11.2x 10.6x Volkswagen AG Pref 272, % 45.9% % 5.4x 6.0x 7.1x 6.0x 5.8x Median 5.9% 20.2% 98.8% 9.4x 9.6x 10.7x 10.3x 9.5x PAGE 8

10 PUBLIC COMPARABLES (1) Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) P 2019P '14-17 '17-19P P 2019P '14-17 '17-19P Automotive Aftermarket BorgWarner Inc. $8,304 $8,025 $9,071 $9,692 $10,408 $11, % 6.8% $1,385 $1,330 $1,507 $1,628 $1,754 $1, % 7.1% Cooper Tire & Rubber Company 3,421 2,959 2,925 2,845 2,995 2,977 (6.0%) 2.3% (1.2%) 2.2% Dorman Products, Inc ,007 1, % 7.8% % 10.0% Goodyear Tire & Rubber Company 18,138 16,443 15,158 15,232 15,498 15,799 (5.7%) 1.8% 2,251 2,349 2,520 2,143 2,433 2,628 (1.6%) 10.8% Modine Manufacturing Company 1,496 1,353 1,503 1,998 2,109 2, % 5.3% % 12.0% Motorcar Parts of America, Inc % (100.0%) % (100.0%) Standard Motor Products, Inc ,058 1,104 1, % (100.0%) (1.3%) (100.0%) Tenneco Inc. 8,420 8,209 8,599 9,188 9,669 10, % 4.6% % 7.0% Visteon Corporation 7,509 3,245 3,161 3,155 3,281 3,499 (25.1%) 5.3% (17.8%) 6.8% Total $49,322 $42,377 $42,756 $44,577 $46,596 $46, % (18.5%) $5,902 $5,684 $6,206 $6,015 $6,643 $6, % (16.0%) Advance Auto Parts, Inc. $9,844 $9,737 $9,568 $9,345 $9,562 $9,853 (1.7%) 2.7% $1,244 $1,147 $1,068 $908 $996 $1,097 (10.0%) 9.9% AutoZone, Inc. 9,475 10,187 10,636 10,889 10,889 11, % 4.1% 2,089 2,223 2,358 2,403 2,403 2, % 3.6% Genuine Parts Company 15,342 15,280 15,340 15,990 18,364 18, % 8.2% 1,273 1,266 1,217 1,263 1,507 1,547 (0.3%) 10.7% LKQ Corporation 6,740 7,193 8,584 9,655 10,320 10, % 6.2% ,007 1,112 1,248 1, % 9.4% O'Reilly Automotive, Inc. 7,216 7,967 8,593 8,970 9,442 9, % 5.4% 1,465 1,743 1,917 1,960 2,069 2, % 5.3% U.S. Auto Parts Network, Inc % (100.0%) % (100.0%) Uni-Select Inc. 1,784 1,355 1,197 1,445 1,744 1,800 (6.8%) 11.6% % 12.1% Total $50,685 $52,010 $54,221 $56,600 $60,636 $63, % (8.8%) $6,968 $7,331 $7,684 $7,783 $8,385 $8, % (7.0%) Dealerships and Service Providers Asbury Automotive Group, Inc. $5,868 $6,588 $6,528 $6,455 $6,570 $6, % 0.1% $313 $331 $334 $320 $323 $ % (3.2%) AutoNation, Inc. 19,109 20,862 21,609 21,401 21,748 21, % 0.6% (1.3%) 6.3% Boyd Group Income Fund ,047 1,265 1,467 1, % 14.1% % 18.8% CarMax, Inc. 14,269 15,150 15,875 17,305 18,300 19, % 6.7% ,351 1,402 1, % 4.5% Copart, Inc. 1,163 1,146 1,268 1,448 1,448 1, % 11.7% % 15.5% Group 1 Automotive, Inc. 9,938 10,633 10,888 11,061 11,274 11, % 0.2% % 2.2% KAR Auction Services, Inc. 2,365 2,640 3,150 3,448 3,672 3, % 5.9% % 8.6% Lithia Motors, Inc. Class A 5,390 7,864 8,678 10,103 11,238 11, % 6.7% % 7.1% Monro Inc ,022 1,135 1,209 1, % 9.0% % 10.6% Penske Automotive Group, Inc. 17,177 19,285 20,119 21,208 21,631 21, % 1.7% % 4.8% Sonic Automotive, Inc. Class A 9,197 9,624 9,732 9,828 9,971 10, % 1.3% % 2.3% Total $86,134 $95,653 $99,915 $104,655 $108,528 $111, % 5.3% $4,617 $5,143 $5,277 $6,086 $6,401 $6, % 7.0% PAGE 9

11 PUBLIC COMPARABLES (1) Revenue Revenue Growth EBITDA EBITDA Growth ($ in millions) P 2019P '14-17 '17-19P P 2019P '14-17 '17-19P Automotive Aftermarket Bayerische Motoren Werke AG $106,648 $102,215 $104,163 $119,719 $123,778 $127, % 3.3% $21,734 $19,303 $19,370 $18,094 $18,268 $18,862 (5.9%) 2.1% Daimler AG 172, , , , , , % 2.9% 25,517 25,668 26,177 24,630 25,137 26,146 (1.2%) 3.0% Ford Motor Company 144, , , , , ,996 (0.0%) (0.7%) 11,324 15,079 12,296 11,422 11,297 12, % 3.3% General Motors Company 155, , , , , ,785 (2.3%) (1.6%) 10,160 15,518 20,671 17,024 16,000 16, % (0.4%) Harley-Davidson, Inc. 6,229 5,995 5,996 4,882 4,972 5,332 (7.8%) 4.5% 1,452 1,330 1,240 1,120 1,169 1,202 (8.3%) 3.6% Navistar International Corporation 10,806 10,140 8,111 8,570 8,570 9,918 (7.4%) 7.6% NM 12.6% Oshkosh Corp 6,808 6,098 6,279 6,830 6,830 7, % 4.3% % 9.2% PACCAR Inc 18,997 19,115 17,005 17,860 19,758 20,180 (2.0%) 6.3% 2,899 3,198 2,939 3,194 3,453 3, % 7.0% Toyota Motor Corp. 247, , , , , , % 2.1% 38,164 36,457 34,060 27,938 29,285 30,732 (9.9%) 4.9% Volkswagen AG Pref 268, , , , , , % 3.5% 36,343 26,777 37,788 41,384 45,196 46, % 6.4% Total $1,138,291 $1,084,281 $1,124,689 $1,188,923 $1,214,995 $1,238,080 (0.7%) 3.2% $148,510 $144,420 $155,533 $146,090 $151,091 $158, % 5.2% PAGE 10

12 TRANSPORTATION & LOGISTICS SOURCES 1. FactSet. 2. MergerMarket. 3. Pitchbook. DISCLOSURES Harris Williams & Co. ( 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 a private limited company incorporated under English law with its registered office at 5th Floor, 6 St. Andrew Street, London EC4A 3AE, UK, registered with the Registrar of Companies for England and Wales (registration number ). Harris Williams & Co. Ltd is authorized 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. 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 2018 Harris Williams & Co., all rights reserved. PAGE 11