The Motor Weekly Index: (-5.73, -1.32%)

Transcription

1 December 4, 2017 The Motor Weekly Index: (-5.73, -1.32%) 3-Month Price Performance SUPPLIER EQUITY INDEX RETURNS 1 Week 3 Months S&P % 6.69% NA Autos 1.27% 12.42% 120% 115% 110% 105% S&P 500 NA Autos EUR Autos ASIA Autos Heavy Duty 116.2% 114.3% 112.4% 112.3% 106.7% EUR Autos 1.52% 14.27% ASIA Autos 0.85% 12.25% Heavy Duty 3.56% 16.19% *Represents market-weighted index *Source: Capital IQ 100% 95% 90% Sep 2017 Oct 2017 Oct 2017 Nov 2017 LTM Trading Multiples (EV / LTM EBITDA) SUPPLIER TRADING MULTIPLES Year 12.5x 10.5x NA Autos EUR Autos ASIA Autos Heavy Duty 11.2x NA Autos 7.8x 1.3x EUR Autos 6.9x 1.2x ASIA Autos 7.5x 1.4x Heavy Duty 11.2x 1.4x *Multiples use LTM EBITDA *Source: Capital IQ 8.5x 7.8x 7.5x 6.5x 6.9x 4.5x Dec 2016 Apr 2017 Aug 2017 Nov 2017 U.S. S.A.A.R. (in millions) Historical Gas Prices ($ per gallon) Total Light Vehicles 17.4 $4.00 $3.00 $ $ Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 $1.00 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16

2 The Motor Weekly Index The Motor Weekly Index Summary The Motor Weekly Index is the average of two sub-indices: The Manufacturers Index (M-Index) is a market weighted average of global vehicle manufacturers The Suppliers Index (S-Index) is a market weighted average of global OEM component suppliers The Motor Weekly Index Indexed as of January Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 S&P 500 MW Index Manufacturers Index (M-Index) Last Six Months Suppliers Index (S-Index) Last Six Months Jun-17 Jul-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov Jun-17 Jul-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17 S&P 500 Vehicle Manufacturers (Global) S&P 500 Suppliers (Global) 2 Source: Capital IQ

3 Recent News December 4 (Bloomberg) China is planning to extend a tax rebate on the purchase of new-energy vehicles after the incentive helped the country become the world s biggest market for clean fuel automobiles, according to people with direct knowledge of the matter. China s government will continue to exempt the 10 percent purchase tax on new-energy vehicles at least through 2020, the people said, asking not to be identified discussing information that s private. The current tax rebate policy is due to expire at end of this year. The Ministry of Finance didn t immediately respond to a fax seeking comments. Extending the tax rebate will give a fillip to China s development of the NEV industry, a term used to refer electric vehicles, plug-in hybrids and fuel-cell cars. The surge in demand for such vehicles in China has attracted billions of dollars of investments from companies such as Volkswagen AG and Ford Motor Co. while Tesla Inc. is considering setting up a factory in the Asian country. The government has recently announced a series of measures regarding manufacturing licenses and joint ventures that would allow foreign companies to set up solely owned assemblies in the $11 trillion economy. Sales of NEVs surged 53 percent to 500,700 units last year and boosted the overall ownership of such vehicles in the country to over a million units. That s more than triple the tally in 2015, according to the China Association of Automobile Manufacturers. China s government is working with regulators on setting a deadline for ending production and sales of internal-combustion vehicles, said Xin Guobin, the vice minister of industry and information technology, said in September. The world s second-biggest economy, which has vowed to cap its carbon emissions by 2030 and curb worsening air pollution, joined the U.K. and France in seeking a timetable for the elimination of vehicles using gasoline and diesel. The government is also considering a resumption of new permits to make electric vehicles as early as the first half of 2018, a move that would clear the way for Ford and Tesla as well as a string of local manufacturers to start production, Bloomberg news reported last month, citing people with knowledge of the matter. Since March 2016, China has handed out 15 EV licenses -- local manufacturer Wanxiang Group and a Volkswagen joint venture were among the recipients -- to foster competition for the predominantly state-owned auto industry. The ensuing rush saw makers of smart TVs to air conditioners drumming up plans to enter the auto industry. On top of that, Ford and VW are among foreign carmakers that are preparing their China EV strategy to meet the country s stricter emission and fuel-economy rules. Ford s new venture with Anhui Zotye Automobile Co. plans to apply for a permit for a factory that can churn out 100,000 pure electric passenger vehicles every year. attery prices need to drop by more than half before EVs will be competitive with cars powered by internal-combustion engines, according to Bloomberg New Energy Finance. That s likely to happen by 2026, when the cost for lithium-ion battery packs is projected to fall to about $100 per kilowatt hour. December 4 (Reuters) Peugeot maker PSA Group and Japan s Nidec Corp will invest 200 million euros ($237 million) in a joint venture to develop and produce electric car motors for a fast expanding market, the companies said on Monday. Patrice Lucas, PSA s executive vice president for strategy, said in a presentation the Francebased venture would have a production capacity of 900,000 motors per year from The market for electric automobile motors is expected to double to 45 billion euros ($53 billion) over the next two decades, the companies said in a joint statement, as the industry undergoes profound change, with consumers increasingly demanding alternatives to combustion engines. The electric motors developed with Nidec will supply all Opel and Vauxhall models, Lucas said. Nidec will act via Nidec Leroy-Somer, the French electric motor company it acquired in February this year. The aim of the joint venture is to make high-performance electric traction motors for PSA Group and potentially other carmakers, the companies said. Nidec manufactures motors for products ranging from hard disk drives to elevators and automobiles, and owns the U.S. Motors brand. The highly acquisitive company, which describes itself as specializing in everything that spins and moves, has been snapping up companies in anticipation that new automotive technologies will result in a boom in the market. It announced last week it had bought drivexpert GmbH, which makes electronic control units for automobiles. Earlier this year, it acquired the motor and electric power generation businesses of France s Emerson Electric, and the drive business of Emerson Electric Co of Britain. As global competition heats up to develop electric cars and automated driving functions, Nidec has said it wants to become a global auto parts supplier rivaling Germany s Robert Bosch and Japan s Denso Corp. The transaction remains subject to antitrust clearance and consultations with employee representatives. The joint venture s headquarters will be in Carrieres-sous-Poissy near Paris. 3

4 North American Equity Performance Last 12 Months Change (90.0%) (60.0%) (30.0%) 0.0% 30.0% 60.0% 90.0% 60.0% Weighted Group Average Vehicle Manufacturers Suppliers Aftermarket TOWR SRI 1 MRE MOD DAN CPRT NEXTEER 40.0% SUP SNA GPC TEN SMP DORM UNS ALV CPS STRT AXL LEA GM MG F LKQ THRM GNTX ST GT SHLO MPAA LNR BWA VC DLPH TSLA 1 FCA 20.0% 0.0% Last 3 Months Change HZN (20.0%) (40.0%) (60.0%) 4 Source: Capital IQ Companies not within ranges still considered in weighted group averages (1) FCA LTM change is 116.2%; MRE LTM change is 110.5%

5 North American OEM Market ($ in millions, except price per share) Price % of Total LTM Total TEV / EBITDA as of 52-Wk Market Enterprise EBITDA Debt / LTM Company Ticker 12/1/2017 High Cap Value Margin EBITDA P/E LTM 2017 Weekly Stock Price Performance Vehicle Manufacturers Tesla, Inc. TSLA $ % $ 51,518 $ 61, % NM NM NM NM General Motors Company GM % 60,779 58, % 4.4x 20.9x 3.0x 3.2x Ford Motor Company F % 49,972 43, % 1.5x 11.4x 3.3x 4.0x Fiat Chrysler Automobiles N.V. FCA % 25,965 33, % 1.6x 7.0x 3.2x 2.4x (2.9%) (3.8%) (4.2%) Mean 8.4% 2.5x 13.1x 3.2x 3.2x High Multiple Suppliers Delphi Automotive PLC DLPH $ % $ 27,517 $ 32, % 1.6x 20.2x 10.6x 10.9x BorgWarner Inc. BWA % 11,598 13, % 1.5x 39.7x 8.9x 8.9x Autoliv, Inc. ALV % 11,270 12, % 1.2x 22.2x 9.5x 9.3x Adient plc ADNT % 7,299 10, % 2.3x 8.4x 10.3x 7.0x Gentex Corporation GNTX % 5,846 5, % 0.0x 16.3x 8.3x 7.9x Visteon Corporation VC % 4,070 3, % 1.1x 27.9x 11.7x 10.5x Gentherm Incorporated THRM % 1,302 1, % 1.0x 19.6x 8.3x 7.8x Stoneridge, Inc. SRI % % 1.5x 8.4x 8.9x 8.1x (2.6%) 2.6% 4.3% 0.7% 5.6% 0.3% 0.6% Mean 16.1% 1.3x 20.3x 9.6x 8.8x Mid Multiple Suppliers Magna International Inc. MG $ % $ 20,293 $ 23, % 0.9x 10.0x 5.9x 5.7x Goodyear Tire & Rubber Co. GT % 7,912 13, % 3.0x 8.2x 6.4x 6.4x Lear Corporation LEA % 12,049 13, % 1.0x 11.1x 6.4x 6.1x Dana Incorporated DAN % 4,733 6, % 2.4x 6.8x 8.1x 7.3x American Axle & Mfg. AXL % 1,955 5, % 4.4x 6.1x 5.8x 5.1x Nexteer Automotive Group % 5,637 5, % 1.0x 16.4x 10.0x 8.2x Tenneco Inc. TEN % 3,015 4, % 2.7x 17.8x 7.2x 5.2x Linamar Corporation LNR ,479 4, % 1.4x 8.3x 5.2x 5.2x Cooper-Standard Holdings Inc. CPS % 2,169 2, % 1.8x 16.9x 6.2x 5.7x Modine Manufacturing Company MOD % 1,138 1, % 2.9x 26.4x 9.3x 8.6x Martinrea International Inc. MRE % 1,054 1, % 1.8x 8.3x 5.2x 5.1x Superior Industries SUP % 413 1, % 7.0x NM 12.9x 8.9x Tower International, Inc. TOWR % 663 1, % 2.2x 9.8x 5.6x 5.0x Shiloh Industries, Inc. SHLO % % 2.5x 29.0x 5.2x 4.8x STRATTEC Security Corp. STRT % % 1.6x 19.9x 8.4x NM (0.1%) (2.4%) (1.1%) (1.7%) (3.6%) 4.7% 0.7% 3.1% 2.6% 0.8% 3.0% 6.1% 1.9% 1.4% Mean 11.0% 2.4x 13.9x 7.2x 6.2x Mean 12.1% 2.1x 15.9x 7.4x 6.7x Avg. Median 10.9% 1.6x 16.3x 7.7x 6.4x 1.12% 5 Source: Capital IQ Note: Price, Market Cap and Total Enterprise Value are converted into USD Valuations for GM & Ford exclude financial divisions

6 North American Aftermarket ($ in millions, except price per share) Price % of Total LTM Total TEV / EBITDA as of 52-Wk Market Enterprise EBITDA Debt / LTM Company Ticker 12/1/2017 High Cap Value Margin EBITDA P/E LTM 2017 Weekly Stock Price Performance Retailers & Distributors AutoZone, Inc. AZO $ % $ 18,651 $ 23, % 2.1x 15.4x 0.0x 9.8x O'Reilly Automotive, Inc. ORLY % 19,930 22, % 1.5x 20.0x 11.9x 11.6x Genuine Parts Company GPC % 13,615 14, % 1.0x 20.8x 11.7x 11.7x Snap-on Incorporated SNA % 9,591 10, % 1.2x 17.3x 11.5x 10.6x Advance Auto Parts, Inc. AAP % 7,333 8, % 1.1x 20.8x 6.8x 8.8x Uni-Select Inc. UNS % 889 1, % 4.5x 18.5x 12.3x 10.8x U.S. Auto Parts Network, Inc. PRTS % % 1.1x 2.9x 6.2x 5.8x (5.2%) 7.2% 8.4% 6.9% 5.4% 11.3% 6.4% Mean 1 1.8x 16.5x 8.6x 9.9x Aftermarket Suppliers Goodyear Tire & Rubber Co. GT $ % $ 7,912 $ 13, % 3.0x 8.2x 5.4x 5.4x Axalta Coating Systems Ltd. AXTA % 7,560 11, % 4.7x NM 12.2x 11.5x Dorman Products, Inc. DORM % 2,257 2, % 0.0x 20.3x 11.7x 10.5x Cooper Tire & Rubber Company CTB % 1,864 1, % 0.7x 9.4x 4.0x 4.3x Standard Motor Products, Inc. SMP % 1,005 1, % 0.5x 18.8x 8.7x 8.4x Horizon Global Corporation HZN % % 4.0x NM 10.6x 7.8x Motorcar Parts of America, Inc. MPAA % % 0.7x 14.2x 6.2x 5.3x (14.3%) (1.9%) (1.7%) 4.7% 5.8% 2.3% 3.8% Mean 15.9% 1.9x 14.2x 8.4x 7.6x Collision LKQ Corporation LKQ $ % $ 12,152 $ 15, % 3.0x 24.7x 14.3x 13.6x Copart, Inc. CPRT % 9,948 10, % 1.1x 33.6x 0.0x 17.4x KAR Auction Services, Inc. KAR % 6,789 10, % 4.8x 29.5x 13.8x 12.3x Boyd Group Income Fund BYD % 1,519 1, % 2.2x 48.2x 18.6x 15.4x 3.3% 1.3% 2.8% 2.2% Dealerships Mean 20.1% 2.8x 34.0x 11.7x 14.7x CarMax Inc. KMX $ % $ 12,468 $ 25, % 9.5x 18.8x 20.5x 19.5x AutoNation, Inc. AN % 5,022 11, % 7.1x 13.9x 11.4x 11.5x Penske Automotive Group, Inc. PAG % 4,176 10, % 8.4x 11.4x 15.3x 14.0x Lithia Motors, Inc. LAD % 2,934 5, % 6.1x 14.3x 14.2x 13.0x Group 1 Automotive, Inc. GPI % 1,633 4, % 6.8x 12.9x 11.6x 11.0x Sonic Automotive, Inc. SAH % 924 3, % 7.9x 13.9x 11.8x 11.2x Asbury Automotive Group, Inc. ABG % 1,379 3, % 5.2x 8.6x 9.8x 9.6x AutoCanada Inc. ACQ % 514 1, x 11.8x 17.5x 15.7x (2.8%) 0.5% 4.7% 6.0% 2.0% 3.2% 6.7% 4.2% Mean 4.5% 7.4x 13.2x 14.0x 13.2x Mean 12.5% 3.7x 17.8x 10.7x 11.0x Avg. Median 9.3% 3.0x 16.3x 11.6x 11.1x 2.77% 6 Source: Capital IQ Note: Price, Market Cap and Total Enterprise Value are converted into USD

7 European OEM Market ($ in millions, except price per share) Price % of Total LTM Total TEV / EBITDA as of 52-Wk Market Enterprise EBITDA Debt / LTM Company Ticker 12/1/2017 High Cap Value Margin EBITDA P/E LTM 2017 Weekly Stock Price Performance Vehicle Manufacturers Volkswagen Aktiengesellschaft VOW $ % $ 102,679 $ 257, % 5.8x 12.6x 10.4x 8.0x Daimler AG DAI % 87, , % 7.1x 7.8x 11.3x 9.8x BMW AG BMW % 64, , % 7.1x 7.3x 11.0x 10.2x Renault SA RNO % 26,802 67, % 8.7x 5.5x 12.3x 10.4x Fiat Chrysler Automobiles N.V. FCA % 25,965 33, % 1.6x 7.0x 3.0x 2.4x Peugeot S.A. UG % 18,062 11, % 1.5x 9.2x 2.2x 2.0x (2.5%) (2.8%) (3.2%) (4.2%) (6.8%) 2.2% Mean 11.0% 5.3x 8.2x 8.4x 7.1x Suppliers Continental AG CON $ % $ 52,707 $ 56, % 0.7x 14.8x 8.0x 7.0x Michelin SCA ML % 25,991 28, % 0.8x 13.2x 6.3x 5.6x Valeo SA FR % 16,786 18, % 1.7x 14.8x 8.2x 6.3x Autoliv, Inc. ALV % 11,270 12, % 1.2x 22.2x 9.5x 9.4x Faurecia S.A. EO % 10,301 11, % 1.3x 12.9x 6.6x 5.3x GKN plc GKN % 7,065 7, % 1.1x 10.9x 5.8x 5.6x Plastic Omnium SA POM % 6,314 7, % 2.2x 15.3x 8.4x 6.6x Brembo S.p.A. BRE % 4,963 5, % 1.3x 16.8x 10.5x 9.3x LEONI AG LEO % 2,411 2, % 1.7x 17.1x 8.1x 6.9x ElringKlinger AG ZIL % 1,201 2, % 2.8x 12.8x 7.3x 6.7x Sogefi S.p.A. SO % % 2.3x NM 5.4x 4.5x Kongsberg Automotive ASA KOA % % 3.3x NM 9.9x 10.3x Grammer AG GMM % % 2.2x 13.4x 5.4x 4.7x Polytec Holding AG PYT % % 1.6x 9.4x 6.1x 6.2x (1.0%) (5.3%) 1.7% 2.9% 0.0% 4.3% 0.9% 0.7% 1.0% 0.5% 12.4% 6.8% 0.2% 1.5% Mean 11.6% 1.7x 14.9x 7.5x 6.7x Mean 11.4% 2.8x 12.4x 7.8x 6.9x Avg. Median 11.1% 1.7x 12.9x 8.1x 6.7x 0.40% 7 Source: Capital IQ Note: Price, Market Cap and Total Enterprise Value are converted into USD

8 Asian OEM Market ($ in millions, except price per share) Price % of Total LTM Total TEV / EBITDA as of 52-Wk Market Enterprise EBITDA Debt / LTM Company Ticker 12/1/2017 High Cap Value Margin EBITDA P/E LTM 2017 Weekly Stock Price Performance Vehicle Manufacturers Toyota Motor Corporation 7203 $ % $ 183,300 $ 315, % 5.4x 11.0x 9.7x 10.5x Honda Motor Co., Ltd % 59, , % 5.3x 10.6x 8.8x 8.1x Nissan Motor Co., Ltd % 38, , % 7.6x 6.6x 10.9x 9.8x Hyundai Motor Company A % 30,702 78, % 10.3x 12.8x 12.5x 10.0x BYD Company Limited % 25,495 33, % 3.6x 40.4x 14.3x 14.3x Geely Automobile Holdings Ltd % 32,264 28, % 0.2x 28.7x 23.0x 14.7x Suzuki Motor Corporation % 24,153 23, % 1.3x 16.7x 5.4x 5.0x Mahindra & Mahindra Limited % 11,490 18, % 4.6x 20.8x 11.4x 20.4x Isuzu Motors Limited % 12,225 13, % 1.2x 13.0x 6.9x 6.8x Yamaha Motor Co., Ltd % 10,942 12, % 1.8x 11.9x 7.9x 7.5x Kia Motors Corporation A % 12,237 10, % 3.2x 11.9x 4.3x 4.1x Dongfeng Motor Group Co % 11,052 9, % 6.2x 5.4x NM 22.4x Mazda Motor Corporation % 8,423 8, % 2.5x 9.0x 4.6x 4.1x Mitsubishi Motors Co % 10,607 6, % 0.2x 16.9x 5.6x 4.9x Faw Car Co., Ltd % 2,649 2, % 0.7x NM 15.0x 11.9x (7.0%) (1.3%) (1.6%) (0.9%) (3.2%) (1.7%) (0.1%) (1.1%) 0.4% 2.4% 1.1% 1.7% 0.7% 0.5% 5.0% Mean 9.1% 3.6x 15.4x 10.0x 10.3x Suppliers DENSO Corporation 6902 $ % $ 43,458 $ 43, % 0.7x 15.8x 7.5x 7.3x Bridgestone Corporation A % 34,473 33, % 0.8x 14.3x 6.4x 5.9x Aisin Seiki Co., Ltd % 14,730 20, % 1.1x 13.2x 5.1x 4.9x Hyundai Mobis Co.,Ltd % 23,457 18, % 1.1x 11.1x 6.8x 6.3x Asahi Glass Co., Ltd % 9,635 14, % 2.4x 14.5x 6.7x 6.7x Koito Manufacturing Co., Ltd % 11,009 9, % 0.2x 19.9x 8.0x 8.0x NSK Ltd % 7,978 9, % 2.2x 16.8x 8.7x 7.9x JTEKT Corporation % 5,882 7, % 1.7x 10.6x 6.1x 5.9x Stanley Electric Co., Ltd % 6,532 6, % 0.2x 22.6x 8.3x 8.1x NTN Corporation % 2,642 4, % 4.3x 58.6x 7.4x 7.2x Toyota Boshoku Corporation % 3,794 3, % 0.8x 8.4x 3.9x 3.8x Toyoda Gosei Co., Ltd % 3,208 3, % 1.1x 19.3x 4.7x 4.5x NHK Spring Co., Ltd % 2,651 2, % 0.9x 11.3x 4.4x 4.3x TS TECH Co., Ltd % 2,746 2, % 0.0x 12.7x 4.2x 4.2x Sanden Holdings Corporation % 519 1, % 10.3x NM 13.2x NM Tokai Rika Co., Ltd % 1,856 1, % 0.2x NM 3.5x 3.3x Akebono Brake Industry Co., Ltd % 400 1, % 5.7x 10.3x 7.4x 7.2x Alpine Electronics, Inc % 1,531 1, % 0.0x 14.4x 9.0x 8.9x Clarion Co., Ltd % 1,069 1, % 1.4x 17.7x 5.9x 5.7x Halla Holdings Corp. A % 644 1, % 5.7x 11.0x 11.1x 12.2x SGA Group Co % 970 1, % 7.3x 14.0x 23.8x NM F-Tech Inc % % 3.1x 6.5x 5.4x NM SHOWA Corporation % % 0.2x 5.9x 2.4x 3.4x Futaba Corporation TSE: % % 0.1x NM 18.1x 14.4x China Automotive Systems, Inc. CAAS % % 1.8x 6.4x 4.0x 3.5x (0.8%) (0.1%) (0.7%) (5.3%) (0.7%) (1.0%) (1.5%) (0.2%) (1.7%) (2.9%) (2.6%) (8.6%) (4.8%) (3.5%) 1.5% 5.4% 1.2% 1.0% 1.0% 0.3% 0.3% 1.7% 1.3% 0.4% Mean 10.8% 2.1x 15.2x 7.7x 6.5x Mean 10.0% 2.7x 15.3x 8.5x 8.1x Median 10.1% 1.7x 12.8x 7.1x 7.0x Avg. (0.50%) 8 Source: Capital IQ Note: Price, Market Cap and Total Enterprise Value are converted into USD

9 Commercial Vehicle Market ($ in millions, except price per share) Price % of Total LTM Total TEV / EBITDA as of 52-Wk Market Enterprise EBITDA Debt / LTM Company Ticker 12/1/2017 High Cap Value Margin EBITDA P/E LTM 2017 Weekly Stock Price Performance Commercial Vehicle Manufacturers Daimler AG DAI $ % $ 87,169 $ 208, % 7.1x 7.8x 11.7x 10.1x AB Volvo (publ) VOLV-B % 38,092 50, % 3.6x 14.9x 16.4x 12.2x PACCAR Inc PCAR % 24,490 29, % 3.6x 17.9x 12.3x 16.1x MAN SE MAN % 16,565 19, % 4.1x NM NM 15.9x Isuzu Motors Limited % 12,225 13, % 1.2x 13.0x 7.0x 6.1x Navistar International Corporation NAV % 3,940 8, % 19.6x NM NM 14.1x (2.5%) (3.5%) (0.7%) (0.9%) Mean 9.1% 6.5x 13.4x 11.9x 12.4x Off-Highway, Specialty Vehicles and Trailers Caterpillar Inc. CAT $ % $ 84,195 $ 111, % 5.4x NM 16.6x 15.0x Deere & Company DE % 48,175 80, % 8.5x 22.4x 16.9x 15.5x Thor Industries, Inc. THO % 7,988 7, % 0.1x 18.9x 11.0x 10.4x Oshkosh Corporation OSK % 6,682 7, % 1.3x 23.6x 11.1x 10.6x Winnebago Industries, Inc. WGO % 1,718 1, % 2.0x 23.3x 14.1x 12.4x Wabash National Corporation WNC % 1,173 1, % 3.1x 14.7x 8.8x 8.8x Blue Bird Corporation BLBD % % 2.6x 22.1x 10.4x 8.5x Spartan Motors, Inc. SPAR % % 0.9x 38.9x 23.3x 19.2x 3.0% 3.1% 10.6% 2.9% 4.4% 4.1% 2.7% 7.3% Mean 10.0% 3.0x 18.8x 14.0x 12.6x Commercial Vehicle and Off-Highway Suppliers Eaton Corporation plc ETN $ % $ 34,235 $ 41, % 2.7x 12.2x 12.6x 11.5x Cummins Inc. CMI % 27,387 29, % 0.9x 16.8x 11.8x 9.6x Ingersoll-Rand Plc IR % 21,541 24, % 2.1x 21.6x 12.3x 11.7x Westinghouse Air Brake Technologie WAB % 7,325 8, % 3.3x 28.8x 15.6x 14.8x Allison Transmission Holdings, Inc. ALSN % 5,808 8, % 3.2x 18.2x 10.2x 9.4x WABCO Holdings Inc. WBC % 7,915 8, % 2.4x 26.7x 16.6x 14.3x Dana Incorporated DAN % 4,733 6, % 2.4x 6.8x 8.1x 7.3x LCI Industries LCII % 3,241 3, % 0.2x 23.1x 12.3x 12.3x Meritor, Inc. MTOR % 2,196 3, % 3.3x 6.9x 10.0x 8.6x Modine Manufacturing Company MOD % 1,138 1, % 2.9x 26.4x 9.3x 8.6x Douglas Dynamics, Inc. PLOW % 900 1, % 4.0x 29.7x 14.5x 13.8x Saf-Holland S.A. DB:SFQ % 901 1, % 4.0x 22.4x 8.0x 8.5x Stoneridge, Inc. SRI % % 1.5x 8.4x 7.8x 7.2x Haldex AB (publ) HLDX % % 1.1x NM 10.4x 10.2x Commercial Vehicle Group, Inc. CVGI % % 3.5x 57.5x 9.5x 8.6x (1.7%) (1.8%) (0.6%) (2.6%) (4.6%) (1.3%) 2.3% 2.7% 2.4% 4.3% 5.0% 1.2% 3.1% 4.8% 2.2% Mean 1 2.5x 21.8x 11.3x 10.4x Mean 11.9% 3.5x 20.9x 12.2x 11.4x Avg. Median 10.8% 2.9x 21.6x 11.7x 10.6x 1.37% 9 Source: Capital IQ Note: Price, Market Cap and Total Enterprise Value are converted into USD

10 Publisher Justin E. Mirro Founder Kensington Capital Partners LLC The Motor Weekly is interested to share the views and perspectives from its readership Please contact us at to inquire about having your company s message delivered to over 10,000 accounts each month Scan here to download the most recent newsletter