The Motor Weekly Index: (+4.63, +1.45%)

Transcription

1 November 19, 2018 The Motor Weekly Index: (+4.63, +1.45%) 3-Month Price Performance SUPPLIER EQUITY INDEX RETURNS 1 Week 3 Months S&P 500 (1.42%) (3.81%) NA Autos 0.37% (20.60%) EUR Autos (1.31%) (22.60%) ASIA Autos (0.93%) (14.17%) Heavy Duty 1.59% (9.23%) *Represents market-weighted index *Source: Capital IQ 105% 95% 85% 75% S&P 500 NA Autos EUR Autos ASIA Autos Heavy Duty 65% Aug 2018 Sep 2018 Oct 2018 Nov % 90.8% 85.8% 79.4% 77.4% LTM Trading Multiples (EV / LTM EBITDA) SUPPLIER TRADING MULTIPLES 12.0x NA Autos EUR Autos ASIA Autos Heavy Duty Year NA Autos 6.1x (1.2x) EUR Autos 5.0x (1.5x) ASIA Autos 6.0x (1.5x) Heavy Duty 8.0x (3.1x) *Multiples use LTM EBITDA *Source: Capital IQ 10.0x 8.0x 8.0x 6.0x 6.1x 6.0x 5.0x 4.0x Nov 2017 Mar 2018 Jul 2018 Nov 2018 U.S. S.A.A.R. (in millions) Historical Gas Prices ($ per gallon) Total Light Vehicles 17.5 $4.00 $ $2.00 $ Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Jan-18 $1.00 Jan-06 Jan-08 Jan-10 Jan-12 Jan-14 Jan-16 Jan-18

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 Jan-18 S&P 500 MW Index Manufacturers Index (M-Index) Last Six Months May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 Suppliers Index (S-Index) Last Six Months May-18 Jun-18 Jul-18 Aug-18 Sep-18 Oct-18 Nov-18 S&P 500 Vehicle Manufacturers (Global) S&P 500 Suppliers (Global) 2 Source: Capital IQ

3 Recent News November 16 (Automotive News) Volkswagen Group on Friday said it will spend 44 billion euros ($50.2 billion) on electric vehicles, digitalization, autonomous driving and new mobility services by The automaker also plans to increase productivity of its factories by 30 percent by 2025, by building more vehicles with different brands on the same production line, it said. This will help lower the carmaker's capital expenditure ratio at the group's automotive division to six percent of revenues from 2020 onward, the carmaker said. The 44 billion euro plan is 10 billion euros ($11.4 billion) more compared with last year s planning round. The spending represents about a third of Volkswagen s five-year budget on capital goods such as property and plants. Despite the increase, the world s biggest carmaker stuck with a target of lowering capital expenditures to 6 percent of sales from To achieve this goal, VW s plants, spanning some 120 facilities globally, will reduce costs. Last year, the ratio shrank to 6.4 percent. VW is launching upscale electric Porsche and Audi models due to go on sale next year to keep up with other global automakers as well as more affordable vehicles under VW s I.D. subbrand starting in VW said it could build up to 15 million electric cars over several years on its new MEB EV production platform. "Volkswagen must become more efficient, more productive and more profitable in order to finance the high expenditure in he future and stay competitive," CEO Herbert Diess said during a press conference. Since taking the helm in April, Diess has set about revamping the 12-auto brand behemoth to better meet future challenges, pledging to rein in bloated costs and boost economies of scale. A more agile setup is critical as the industry deals with slowing economic growth, trade barriers and the uncertainty of a post-brexit Europe. German peers Daimler AG and BMW AG have cut their outlook, while Toyota Motor Corp. and General Motors Co. reported strong results. Diess said he hoped to have an outline agreement on Ford cooperation fleshed out by year end, with the initial focus on commercial vehicles. He said a merger with Ford was not on the agenda and also said there were no plans to take a stake in the American company. Labor unions, who control half the seats on Volkswagen's supervisory board, need to sign off on the plan to create global production capacity for 1 million electric vehicles by 2025 amid their concerns that assembling battery driven cars will require fewer workers. Around 436,000 industrial jobs in Germany are tied to building gasoline- and diesel-powered vehicles. Jobs are under threat because a combustion engine car has 1,400 components in the motor, exhaust system and transmission, while an electric car's battery and motor has only 200 components, according to analysts at ING. Volkswagen's management this week outlined plans for converting car plants in Zwickau, Emden and Hannover to build electric cars, providing job guarantees to workers until The first ID electric car is due to roll off the production line in Zwickau in 2019, as the plant ramps up to a production capacity of 330,000 electric vehicles. Zwickau currently builds the VW Golf and the Golf Estate. Volkswagen's MEB electric vehicle platform is also being eyed by Ford as the two companies continue exploratory talks about an alliance to develop self-driving and electric vehicles. "Our two companies complement each other very well in terms of both products and regions. The joint development and manufacture of a range of light commercial vehicles is at the core of the envisaged cooperation," Diess said. VW expects significant synergy effects from this alliance, which may allow potential for developing a next generation Amarok pickup truck series and more SUVs, Diess said. Diess said any arragement with Ford would exclude business strategy, marketing and pricing. He denied speculation the future partnership could be a prelude to cross-shareholdings or a merger. He added: That was never the goal of these talks. Ford remains a competitor. November 15 (Automotive News Europe) The UK auto industry said British Prime Minister Theresa May's tentative Brexit deal with the European Union was a "positive step" for car companies operating in Britain. Under the terms of the deal announced Wednesday, the UK will enjoy a 21-month transition phase after Brexit takes place next March. During this period nothing will change, and businesses can carry on operating as now. "For the automotive industry, Brexit is about damage limitation. The outline agreement is a positive step in avoiding the devastating consequences of 'no-deal' and securing a transition period," said Mike Hawes, CEO of the SMMT, which represents auto companies with UK operations. Hawes said the deal is "only a first step and business seeks certainty and ambition when it comes to securing a competitive future." He reiterated calls for the UK and EU to ensure that trade between the two are "truly frictionless. UK-based sports-car maker Aston Martin reacted cautiously. "I don t know whether we have more clarity or less clarity but at least we have some sort of plan on the table," said CEO Andy Palmer. Palmer said the automaker will not change any of its contingency planning, which includes potentially flying in components and changing ports to maintain its output. There was not enough certainty at this point, he said. "You can't stand anything down yet. Yes, the cabinet have agreed, but the Tory [Conservative] party needs to agree and then parliament needs to agree, and I don't think any of that is that easy," Palmer said. Analysts LMC Automotive were pessimistic about the deal. "It seems unlikely that the deal will be passed by Parliament therefore the likelihood of either a no-deal Brexit, a second referendum, or a fresh general election has increased in the last few days," it said in a statement. Automakers with UK plants including BMW, Toyota, Nissan and Honda, have warned that production would be hit if parts coming from Europe are held up at by bureaucracy at British ports. Their UK factories rely on the just-in-time delivery of tens of thousands of components. The SMMT estimates 186,000 people are employed directly in automotive manufacturing across the UK, and 80 percent of the cars made in the country are exported -- most of those to the EU. Auto dealerships have been struck by a sharp reduction in new-car sales in the UK, and Pendragon and Lookers have pointed the finger at Brexit. 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 40.0% 20.0% UNS FCA F GM NEXTEER SHLO GT STRT MG ALV MRE TOWR LNR BWA LKQ MOD TEN LEA TSLA DORM SMP GPC GNTX SNA THRM SRI CPRT 0.0% (20.0%) Last 3 Months Change DAN MPAA AXL VC (40.0%) CPS (60.0%) 4 Source: Capital IQ Companies not within ranges still considered in weighted group averages

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 11/16/2018 High Cap Value Margin EBITDA P/E LTM 2018 Vehicle Manufacturers Tesla, Inc. TSLA $ % $ 59,839 $ 71,780 NM NM NM NM NM General Motors Company GM % 50,175 52, % 5.0x NM 2.6x 2.6x Fiat Chrysler Automobiles N.V. FCA % 25,396 29, % 1.5x 6.3x 2.2x 1.9x Ford Motor Company F % 37,034 26, % 1.2x 5.5x 1.9x 2.3x Weekly Stock Price Performance (0.6%) (0.4%) 1.1% (0.7%) Mean 10.7% 2.5x 5.9x 2.2x 2.3x High Multiple Suppliers Aptiv PLC APTV $ % $ 19,800 $ 23, % 1.8x 16.0x 10.4x 9.6x BorgWarner Inc. BWA % 8,285 10, % 1.2x 15.6x 5.8x 5.8x Autoliv, Inc. ALV % 7,340 9, % 1.7x 23.2x 6.9x 6.8x Gentex Corporation GNTX % 5,979 5, % 0.0x 13.6x 9.0x 9.0x Visteon Corporation VC % 2,292 2, % 1.3x 14.7x 8.3x 6.7x Gentherm Incorporated THRM % 1,529 1, % 0.9x 51.9x 12.1x 10.5x Stoneridge, Inc. SRI % % 1.2x 14.1x 8.3x 7.5x (0.6%) 2.6% 3.0% 4.5% 0.1% 0.7% 4.6% Mean 16.0% 1.2x 21.3x 8.7x 8.0x Mid Multiple Suppliers Magna International Inc. MG $ % $ 16,600 $ 20, % 1.1x 7.3x 4.8x 4.7x Goodyear Tire & Rubber Co. GT % 5,177 11, % 3.3x 11.0x 5.5x 5.3x Lear Corporation LEA % 8,733 9, % 0.9x 6.9x 4.3x 4.4x Adient plc ADNT % 2,209 5, % 2.3x NM 6.6x 4.6x American Axle & Mfg. AXL % 1,406 4, % 3.2x 3.5x 4.0x 4.1x Tenneco Inc. TEN % 2,710 4, % 1.8x 7.5x 4.8x 3.9x Linamar Corporation LNR % 2,427 4, % 2.2x 5.3x 4.5x 4.4x Dana Incorporated DAN % 2,132 3, % 2.2x 9.9x 4.5x 4.1x Nexteer Automotive Group % 3,738 3, % 0.8x 10.1x 6.5x 5.5x Delphi Technologies PLC DLPH % 1,541 2, % 2.0x 5.5x 3.7x 3.9x Cooper-Standard Holdings Inc. CPS % 1,339 1, % 1.8x 8.7x 4.3x 4.7x Martinrea International Inc. MRE % 770 1, % 1.6x 5.6x 3.6x 3.6x Modine Manufacturing Company MOD % 711 1, % 2.4x 14.4x 5.8x 5.7x Superior Industries SUP % 208 1, % 3.6x NM 5.6x 6.0x Tower International, Inc. TOWR % % 1.5x 10.8x 4.1x 3.9x Shiloh Industries, Inc. SHLO % % 3.2x 10.1x 5.6x 5.4x STRATTEC Security Corp. STRT % % 1.7x 9.5x 6.3x NM (1.4%) (0.0%) (4.0%) (0.8%) 0.3% 1.0% 9.9% 5.7% 1.7% 3.4% 1.1% 2.7% 4.5% 5.2% 13.9% 3.9% 3.0% Mean 11.3% 2.1x 8.4x 5.0x 4.6x Mean 12.5% 1.9x 12.0x 5.6x 5.3x Median 11.7% 1.7x 10.0x 5.5x 4.7x Avg. 2.37% 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 11/16/2018 High Cap Value Margin EBITDA P/E LTM 2018 Retailers & Distributors O'Reilly Automotive, Inc. ORLY $ % $ 27,716 $ 30, % 1.6x 23.6x 15.3x 14.9x AutoZone, Inc. AZO % 20,704 25, % 2.2x 16.6x 11.0x 10.3x Genuine Parts Company GPC % 14,909 17, % 2.1x 20.4x 12.8x 12.2x Advance Auto Parts, Inc. AAP % 13,179 13, % 1.1x 24.8x 14.2x 13.9x Snap-on Incorporated SNA % 9,160 10, % 1.1x 14.8x 9.8x 9.6x Uni-Select Inc. UNS % 714 1, % 3.9x 14.8x 9.0x 9.0x U.S. Auto Parts Network, Inc. PRTS % % 0.9x NM 4.0x 3.4x Weekly Stock Price Performance (2.5%) 2.0% 1.0% 4.6% 1.0% (6.0%) (1.7%) Mean 13.7% 1.8x 19.2x 10.9x 10.5x Aftermarket Suppliers Goodyear Tire & Rubber Co. GT $ % $ 5,177 $ 11, % 3.3x 11.0x 5.5x 5.3x Axalta Coating Systems Ltd. AXTA % 5,963 9, % 4.3x NM 10.4x 10.0x Dorman Products, Inc. DORM % 2,853 2, % 0.0x 23.8x 13.9x 13.8x Cooper Tire & Rubber Company CTB % 1,722 1, % 1.0x 50.0x 6.0x 5.6x Standard Motor Products, Inc. SMP % 1,208 1, % 0.4x 39.7x 9.4x 11.4x Motorcar Parts of America, Inc. MPAA % % 1.6x NM 8.7x 5.3x Horizon Global Corporation HZN % % 11.7x NM 12.2x 8.2x (29.7%) (1.4%) (1.2%) 1.0% 3.7% 4.9% 4.2% Mean 13.0% 3.2x 31.1x 9.4x 8.5x Collision LKQ Corporation LKQ $ % $ 8,846 $ 12, % 3.9x 15.6x 11.4x 10.1x Copart, Inc. CPRT % 11,883 12,008 NM 0.6x 29.4x 16.5x 17.0x KAR Auction Services, Inc. KAR % 7,739 11, % 4.6x 18.8x 12.9x 12.5x Boyd Group Income Fund BYD % 1,711 1, % 1.6x 31.1x 16.0x 14.0x (0.1%) 0.3% 1.1% 1.7% Dealerships Mean 14.5% 2.7x 23.7x 14.2x 13.4x CarMax, Inc. KMX $ % $ 11,038 $ 24, % 10.5x 15.7x 18.9x 18.5x AutoNation, Inc. AN % 3,423 9, % 6.6x 7.7x 10.1x 10.5x Penske Automotive Group, Inc. PAG % 3,700 9, % 7.3x 5.3x 12.1x 11.5x Lithia Motors, Inc. LAD % 1,959 5, % 6.2x 7.0x 9.8x 11.2x Group 1 Automotive, Inc. GPI % 1,044 3, % 6.1x 4.9x 8.2x 10.2x Asbury Automotive Group, Inc. ABG % 1,362 3, % 5.1x 8.4x 9.0x 9.9x Sonic Automotive, Inc. SAH % 741 3, % 7.6x 8.2x 9.9x 11.4x AutoCanada Inc. ACQ % 226 1, % 16.1x NM 19.5x 24.7x (3.8%) (2.3%) (1.2%) (0.4%) (3.2%) (2.3%) 0.7% 2.2% Mean 4.2% 8.2x 8.2x 12.2x 13.5x Mean 10.6% 4.3x 18.7x 11.4x 11.3x Median 8.8% 3.6x 15.7x 10.7x 10.8x Avg. (0.95%) 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 11/16/2018 High Cap Value Margin EBITDA P/E LTM 2018 Vehicle Manufacturers Volkswagen Aktiengesellschaft VOW $ % $ 81,830 $ 248, % 6.5x 5.9x 8.0x 6.3x Daimler AG DAI % 61, , % 8.4x 5.5x 10.4x 8.9x BMW AG BMW % 55, , % 7.1x 5.2x 9.3x 9.0x Renault SA RNO % 19,754 63, % 8.8x 3.7x 8.9x 7.9x Fiat Chrysler Automobiles N.V. FCA % 25,396 29, % 1.5x 6.3x 2.2x 1.8x Peugeot S.A. UG % 20,195 14, % 1.1x 8.6x 1.8x 1.7x Weekly Stock Price Performance (0.9%) 0.0% 1.9% (0.1%) 1.1% (3.6%) Mean 10.6% 5.6x 5.9x 6.8x 5.9x Suppliers Continental AG CON $ % $ 31,019 $ 34, % 0.9x 8.7x 5.3x 4.8x Michelin SCA ML % 18,182 22, % 1.3x 9.0x 4.9x 4.7x Valeo SA FR % 6,668 10, % 2.3x 6.9x 4.0x 3.5x Autoliv, Inc. ALV % 7,340 9, % 1.7x 23.2x 6.9x 6.8x Faurecia S.A. EO % 6,255 7, % 1.1x 8.4x 3.7x 3.2x Plastic Omnium SA POM % 4,119 5, % 2.2x 8.0x 6.0x 5.2x Brembo S.p.A. BRE % 3,458 3, % 1.2x 11.1x 7.1x 6.4x LEONI AG LEO % 1,006 1, % 2.1x 6.5x 4.6x 4.2x ElringKlinger AG ZIL % 536 1, % 4.0x 7.6x 6.5x 5.7x Kongsberg Automotive ASA KOA % % 3.5x NM 7.8x 5.2x Grammer AG GMM % % 1.9x 11.2x 4.7x 5.1x Sogefi S.p.A. SO % % 2.7x 6.9x 3.5x 2.4x Polytec Holding AG PYT % % 1.8x 6.2x 4.0x 4.4x (0.8%) (0.1%) (4.9%) (1.9%) (1.6%) (13.8%) (4.9%) (0.9%) (4.2%) (2.6%) 3.0% 0.3% 4.2% Mean 11.0% 2.1x 9.8x 5.3x 4.7x Mean 10.9% 3.2x 8.3x 5.8x 5.1x Avg. Median 10.8% 2.1x 7.3x 5.3x 5.1x (1.35%) 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 11/16/2018 High Cap Value Margin EBITDA P/E LTM 2018 Vehicle Manufacturers Toyota Motor Corporation 7203 $ % $ 167,609 $ 306, % 4.8x 7.4x 8.0x 8.8x Nissan Motor Co., Ltd % 35,012 98, % 7.0x 5.5x 9.7x 12.1x Honda Motor Co., Ltd % 49,654 96, % 5.1x 5.0x 7.6x 7.4x Hyundai Motor Company A % 18,333 75,300 NM NM NM NM 12.6x BYD Company Limited % 19,897 27, % 5.7x 52.7x 17.7x 12.5x Suzuki Motor Corporation % 21,723 21, % 0.7x 9.9x 4.4x 4.5x Mahindra & Mahindra Limited % 11,603 18, % 4.6x 10.1x 9.5x 18.6x Geely Automobile Holdings Ltd % 16,949 15, % 0.2x 8.9x 7.0x 5.8x Isuzu Motors Limited % 10,292 11, % 1.1x 11.3x 5.2x 5.2x Yamaha Motor Co., Ltd % 7,073 9, % 1.6x 8.5x 5.4x 5.3x Kia Motors Corporation A % 10,482 7, % 3.0x 20.3x 3.6x 2.9x Mitsubishi Motors Co % 9,642 7, % 1.3x 9.9x 5.1x 4.8x Dongfeng Motor Group Co % 8,517 6, % 28.9x 3.7x NM 13.5x NIO Inc. NIO % 7,531 6,637 NM NM NM NM NM Mazda Motor Corporation % 6,622 5, % 3.0x 10.3x 3.5x 3.8x Faw Car Co., Ltd % 1,689 1, % 0.0x NM 20.3x 10.1x Weekly Stock Price Performance (0.7%) (0.8%) (2.1%) (1.6%) 3.2% (2.5%) (2.8%) 1.5% (0.9%) (0.7%) 2.6% (2.6%) 0.9% 8.4% (1.3%) 7.2% Mean 8.9% 4.8x 12.6x 8.2x 8.5x Suppliers DENSO Corporation 6902 $ % $ 35,365 $ 35, % 0.9x 14.3x 6.4x 6.1x Bridgestone Corporation A % 28,729 28, % 0.7x 10.5x 5.1x 5.2x Aisin Seiki Co., Ltd % 10,438 16, % 1.1x 8.3x 3.8x 3.8x AGC Inc % 7,505 13, % 2.8x 11.8x 6.0x 6.0x Hyundai Mobis Co.,Ltd % 16,375 10, % 1.2x 13.5x 4.7x 4.4x Koito Manufacturing Co., Ltd % 8,319 6, % 0.2x 10.8x 5.6x 5.3x NSK Ltd % 4,833 6, % 1.8x 7.8x 4.9x 4.8x JTEKT Corporation % 4,095 5, % 2.0x 11.6x 4.5x 4.5x NTN Corporation % 1,737 4, % 4.5x 9.8x 6.1x 6.0x Stanley Electric Co., Ltd % 4,798 4, % 0.2x 13.8x 5.1x 5.0x Toyoda Gosei Co., Ltd % 2,528 2, % 1.6x 18.6x 4.3x NM Toyota Boshoku Corporation % 3,061 2, % 1.1x 9.7x 2.9x 3.0x NHK Spring Co., Ltd % 2,030 1, % 1.2x 11.7x 3.6x 3.5x Sanden Holdings Corporation % 209 1, % 9.8x 34.8x 10.3x NM Clarion Co., Ltd % 1,234 1, % 1.9x NM 9.7x 10.1x Tokai Rika Co., Ltd % 1,685 1, % 0.2x 7.9x 2.6x 2.7x Akebono Brake Industry Co., Ltd % 237 1, % 6.0x NM 7.1x 6.5x TS TECH Co., Ltd % 1,998 1, % 0.0x 7.9x 2.5x 2.3x Halla Holdings Corp. A % % 8.3x 24.4x 13.4x 8.2x SHOWA Corporation % 1, % 0.2x 7.6x 2.3x 2.3x F-Tech Inc % % 2.8x 4.8x 4.5x 4.1x Alpine Electronics, Inc % 1, % 0.0x 10.4x 3.0x 3.5x SGA Group Co % % 5.9x NM 15.4x NM Futaba Corporation TSE: % % 0.2x 61.9x 8.4x 7.5x China Automotive Systems, Inc. CAAS % % 4.0x NM 2.5x 2.0x (2.5%) (2.3%) (2.6%) (1.1%) (1.6%) (2.5%) (7.7%) (4.0%) (2.3%) (11.6%) (5.8%) (5.7%) (2.1%) (2.2%) (4.2%) (6.8%) (2.6%) (5.0%) 1.8% 0.2% 0.7% 0.6% 0.8% 6.9% 9.2% Mean 10.3% 2.3x 14.9x 5.8x 4.9x Mean 9.7% 3.3x 14.0x 6.6x 6.3x Median 9.2% 1.7x 10.1x 5.1x 5.2x Avg. (1.01%) 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 11/16/2018 High Cap Value Margin EBITDA P/E LTM 2018 Commerical Vehicle Manufacturers Daimler AG DAI $ % $ 61,599 $ 200, % 8.4x 5.5x 10.4x 9.3x AB Volvo (publ) VOLV-B % 28,913 40, % 3.1x 9.3x 8.3x 6.5x PACCAR Inc PCAR % 21,162 26, % 3.0x 10.4x 8.9x 9.7x MAN SE MAN % 15,014 17, % 4.2x 22.2x 18.4x 11.5x Isuzu Motors Limited % 10,292 11, % 1.1x 11.0x 5.1x 5.1x Navistar International Corporation NAV % 3,067 7, % 7.8x 10.8x 10.6x 9.2x Weekly Stock Price Performance 0.0% (4.7%) 3.8% 0.0% (0.9%) 2.3% Mean 10.0% 4.6x 11.5x 10.3x 8.5x Off-Highway, Specialty Vehicles and Trailers Caterpillar Inc. CAT $ % $ 76,372 $ 104, % 3.1x 20.6x 9.0x 9.2x Deere & Company DE % 47,190 87, % 7.8x 23.0x 15.9x 15.9x Oshkosh Corporation OSK % 4,945 5, % 1.1x 12.3x 7.2x 7.0x Thor Industries, Inc. THO % 3,614 3, % 0.0x 8.4x 4.6x 5.3x Wabash National Corporation WNC % 870 1, % 2.8x 7.8x 7.1x 7.2x Winnebago Industries, Inc. WGO % 827 1, % 1.6x 8.1x 6.1x 6.0x Blue Bird Corporation BLBD % % 3.4x 23.4x 14.3x 8.5x Spartan Motors, Inc. SPAR % % 0.5x 12.2x 8.2x 7.3x (2.1%) (6.1%) (1.5%) 2.0% 1.3% 3.2% 1.1% 0.2% Mean 10.3% 2.5x 18.8x 9.1x 8.3x Commercial Vehicle and Off-Highway Suppliers Eaton Corporation plc ETN $ % $ 32,063 $ 38, % 1.9x 15.1x 10.4x 10.0x Ingersoll-Rand Plc IR % 25,479 28, % 1.8x 16.9x 12.5x 12.0x Cummins Inc. CMI % 23,602 25, % 0.8x 18.9x 8.7x 7.2x Westinghouse Air Brake Technologie WAB % 8,314 11, % 6.5x 26.9x 19.7x 17.6x Allison Transmission Holdings, Inc. ALSN % 6,149 8, % 2.4x 9.2x 8.0x 7.6x WABCO Holdings Inc. WBC % 6,056 6, % 1.8x 13.9x 10.0x 9.6x Dana Incorporated DAN % 2,132 3, % 2.2x 9.9x 4.5x 4.1x Meritor, Inc. MTOR % 1,397 2, % 1.8x 4.6x 5.0x 4.4x LCI Industries LCII % 1,874 2, % 0.9x 13.0x 7.5x 7.5x Douglas Dynamics, Inc. PLOW % 867 1, % 3.5x 13.9x 12.9x 12.6x Modine Manufacturing Company MOD % 711 1, % 2.4x 14.4x 5.8x 5.7x SAF-Holland S.A. DB:SFQ % % 3.4x 13.3x 7.7x 7.9x Stoneridge, Inc. SRI % % 1.0x 13.0x 8.0x 7.6x Haldex AB (publ) HLDX % % 0.9x 16.1x 5.7x 6.6x Commercial Vehicle Group, Inc. CVGI % % 2.1x 7.3x 4.1x NM (1.1%) (3.7%) (4.1%) (3.5%) (2.1%) 0.7% 0.8% 3.1% 2.8% 4.4% 3.4% 1.4% 0.2% 5.2% 4.6% Mean 14.4% 2.2x 13.8x 8.7x 8.6x Mean 12.4% 2.8x 13.5x 9.1x 8.5x Median 11.2% 2.2x 13.0x 8.2x 7.6x Avg. 0.34% 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