Automotive Industry Market Update

Transcription

1 Metrics Q1 % YoY Q1 % YoY 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 of M&A International, the world s largest alliance of investment banking firms, as well as World Services Group, a global consortium of middle market focused law firms and other advisors, which provides unparalleled access to global companies and investors. The firm is a FINRA-member broker / dealer and member of SIPC. Metrics Miles Driven (in Billions ) Q3 % 3.6% YoY OEM N.A. Production (in 000s ) 4,460 YTD % 4.7% YoY YAvg. TD Miles Retail Driven Gasoline (in Price Billions ) 4 2,098 $2.00 (15.) 3.4% OEM N.A. Production (in 000s ) 14, % Avg. Retail Gasoline Price $2.69 (24.9%) M&A M&A 5 Q1 LTM Q1 LTM Count Q3 86 LTM 390 Value (in $Billions ) $8.6 Q3 $29,641 LTM Count Value (in $Billions ) $2.2 $27,989 Public Market Performance 5 6 Public Market Performance 5 6 Q1 LTM Q1 LTM Automotive Manufacturers (7.3%) Q3 (23.) LTM Aftermarket Suppliers 1.9% Q3 (0.7%) LTM Automotive Domestic OEM Manufacturers Suppliers (8.) (4.2%) (17.9%) 2. Aftermarket Retailers and Suppliers Distributors 10.3% 3.7% 21.1% 17.2% Domestic International OEM OEM Suppliers Suppliers (6.2%) 0.4% (1.5%) 9.5% Retailers Dealers and and Service Distributors Providers (5.2%) 9.8% (17.6%) 30.1% International OEM Suppliers 0.2% 23.4% Dealers and Service Providers (3.7%) % 15% 5% (5%) (15%) (25%) (35%) Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 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 03/31/16 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM Automotive Manufacturers Toyota Motor Corporation $ % $160,909 $296,461 $237,523 $24,471 $37, % x 10.2x 12.3x 6.8x 9.3x Daimler AG $ % $82,085 $180,984 $171,150 $13,833 $25, % 3.8x 12.2x 11.2x 6.9x 8.2x Ford Motor Co. $ % $53,758 $163,154 $153,376 $9,639 $17, % 11.5% 6.6x 16.6x 22.0x 9.2x 13.5x Volkswagen AG $ % $68,949 $162,775 $231,650 $8,035 $18, % 7.8% 5.3x 13.0x 6.6x 5.7x Bayerische Motoren Werke Aktiengesellschaft $ % $59,989 $146,510 $104,904 $10,499 $14, % 13.8% 6.1x 13.1x 13.1x 9.7x 8.8x Nissan Motor Co. Ltd. $ % $41,144 $103,808 $101,745 $6,373 $13, x 13.5x 15.2x 6.9x 8.6x Honda Motor Co., Ltd. $ % $49,500 $98,286 $124,612 $5,808 $8, % 6.5% 5.4x 13.4x 15.0x 10.1x 8.4x General Motors Company $ % $48,653 $91,915 $153,909 $8,016 $15, % 10.1% 3.4x 10.1x 8.8x 5.8x 5.8x Hyundai Motor Company $ % $24,067 $64,327 $78,146 $5,403 $7, % 9.1% 4.8x 8.8x 11.1x 7.1x 7.5x Tesla Motors, Inc. $ % $30,343 $32,063 $4,253 ($862) ($411) 21.5% (9.7%) NM NM 154.5x NM 37.8x Fiat Chrysler Automobiles N.V. $ % $10,423 $17,814 $126,569 $4,530 $8, % x 4.5x 2.9x 2.1x NM Kia Motors Corp. $ % $16,958 $15,118 $42,083 $2,001 $2, % 6.7% NM 4.6x 6.8x 3.6x 4.1x Peugeot S.A. $ % $13,670 $13,985 $59,382 $2,958 $4, % 8.2% NM 3.9x 4.3x 2.5x 2.4x AUDI AG $ % $30,720 $11,246 $63,448 $6,613 $8, % 13.7% NM NM NM NM NM Mazda Motor Corporation $ % $9,292 $10,303 $30,319 $2,018 $2, % x 4.7x NM 3.6x 3.8x Mean $46,698 $93,917 $112,205 $7,289 $12, % 8.3% 4.0x 9.9x 22.2x 6.2x 9.5x Median $41,144 $91,915 $104,904 $6,373 $8, % x 10.2x 6.8x 8.2x Domestic OEM Suppliers Johnson Controls Inc. $ % $25,262 $33,149 $36,317 $2,389 $3, % x 12.8x 10.8x 9.6x 8.4x Delphi Automotive PLC $ % $20,718 $24,674 $15,419 $1,975 $2, % 16.4% 1.5x 12.5x 10.9x 9.9x 8.6x Magna International Inc. $ % $17,318 $17,179 $33,262 $2,388 $3, % 10.1% 0.8x 6.3x 6.6x 4.7x 4.8x BorgWarner Inc. $ % $8,379 $10,445 $8,308 $1,058 $1, % 16.8% 1.6x 9.7x 9.4x 7.4x 7.0x Lear Corp. $ % $8,157 $9,005 $18,211 $1,260 $1, % 8.8% 0.5x 6.9x 6.5x 5.4x 5.1x Gentex Corp. $ % $4,533 $4,213 $1,580 $472 $ % 35.1% NM 9.2x 8.4x 7.8x 7.0x Tenneco Inc. $ % $2,963 $3,971 $8,322 $598 $ % 9.4% 1.3x 6.8x 6.4x 5.1x 4.8x Linamar Corp. $ % $3,141 $3,302 $4,166 $465 $ % 16.4% 1.6x 7.3x 5.9x 5.0x 4.0x Metaldyne Performance Group Inc. $ % $1,145 $2,864 $3,047 $270 $ % 16.4% 3.4x 10.6x 10.7x 5.7x 5.5x Dana Holding Corporation $ $2,097 $2,822 $5,901 $420 $ % x 6.9x 6.3x 4.8x 4.4x American Axle & Manufacturing Holdings Inc. $ % $1,177 $2,274 $3,903 $372 $ % 14.5% 2.0x 6.3x 6.2x 4.1x 3.9x Cooper-Standard Holdings Inc. $ % $1,235 $1,651 $3,405 $265 $ % 11.3% 1.2x 6.6x 6.6x 4.5x 4.2x Gentherm Incorporated $ % $1,511 $1,464 $865 $124 $ % 18.1% NM 11.1x 9.6x 8.8x Martinrea International Inc. $ % $683 $1,214 $3,076 $144 $ % x 8.8x 7.5x 5.2x 4.6x Tower International, Inc. $ % $576 $893 $1,971 $86 $ % 8.4% 2.1x 10.2x 7.8x 5.3x 4.3x Visteon Corporation $ % $3,093 $844 $3,231 $196 $ % 8.3% NM 4.4x 3.6x 3.2x 2.6x Superior Industries International, Inc. $ % $557 $504 $740 $62 $ % 12.8% NM 10.4x 10.8x 6.2x 6.1x Stoneridge Inc. $ % $405 $482 $645 $33 $ % 8.5% 1.3x 16.6x 11.0x 9.4x 6.9x Shiloh Industries Inc. $ % $89 $366 $1,114 $18 $52 7.6% 4.7% 5.3x 20.2x NM 7.1x NM STRATTEC Security Corporation $ % $209 $214 $391 $20 $ % 7.5% NM 10.4x 6.5x 7.1x 5.2x Mean $5,162 $6,077 $7,694 $631 $ % 12.5% 1.9x 9.8x 8.1x 6.4x 5.6x Median $1,804 $2,548 $3,318 $321 $ % 10.1% 1.6x 9.4x 7.5x 5.6x 5.1x International OEM Suppliers Continental Aktiengesellschaft $ % $45,512 $50,126 $45,002 $4,828 $6, % 15.2% 0.5x 10.4x 9.4x 7.4x 6.7x Valeo SA $ % $12,223 $12,477 $15,796 $1,133 $1, % 10.7% 1 9.2x 6.8x 5.5x Autoliv, Inc. $ % $10,449 $10,667 $9,426 $913 $1, % 13.2% 0.3x 13.1x 11.7x 9.4x 8.4x GKN plc $ % $7,130 $8,270 $10,664 $736 $1, % x 10.3x 8.1x 6.7x 6.1x Faurecia S.A. $ % $5,201 $6,528 $20,386 $896 $1, % 6.4% 0.8x 6.8x 6.3x 4.7x 3.7x Compagnie Plastic Omnium SA $ % $5,059 $5,485 $5,441 $439 $ % 11.1% 0.6x 11.0x 9.4x 8.1x 6.6x Brembo SpA $ % $3,366 $3,557 $2,269 $265 $ % 16.2% 0.5x 12.3x 12.2x 9.0x 8.4x Cie Automotive, S.A. $ % $2,329 $3,493 $2,858 $285 $ % 14.6% 1.9x 11.6x 10.9x 8.0x 7.4x ElringKlinger AG $ $1,753 $2,345 $1,732 $141 $ % 13.5% 2.4x 16.0x 12.3x 9.9x 7.9x Autoneum Holding AG $ % $1,194 $1,405 $2,083 $141 $ % 9.9% 0.5x 9.4x 7.7x 6.5x 5.5x Tupy S.A. $ % $670 $966 $865 $81 $ % 1.8x 10.7x 7.5x 5.8x 4.9x Grammer AG $ $447 $637 $1,707 $44 $ % 5.2% 0.4x 13.9x 9.5x 7.1x 5.5x Mean $7,944 $8,830 $9,852 $825 $1, % x 11.3x 9.5x 7.4x 6.4x Median $4,213 $4,521 $4,150 $362 $ % 12.2% 0.6x 10.8x 9.4x 7.2x 6.3x

3 3 Automotive Industry Market Update Q Public Company Valuation Metrics 5 Price % of 52 LTM Margin Net Debt / EV/EBIT EV/EBITDA Company 03/31/16 Wk Hi Mkt Cap EV Revenue EBIT EBITDA Gross EBITDA EBITDA LTM NTM LTM NTM Aftermarket Suppliers The Goodyear Tire & Rubber Company $ % $8,813 $13,315 $16,110 $1,662 $2, % 14.7% 2.1x 8.1x 6.8x 5.7x 5.1x Snap-on Incorporated $ $9,125 $9,948 $3,593 $764 $ % 23.2% 1.0x 13.0x 11.8x 11.9x 10.7x Allison Transmission Holdings, Inc. $ % $4,617 $6,771 $1,944 $477 $ % x 13.3x 15.8x 9.7x 11.1x Federal-Mogul Holdings Corporation $ % $1,670 $4,670 $7,481 $272 $ % 8.2% 4.6x 16.1x 12.4x 7.4x 6.8x Cooper Tire & Rubber Co. $ % $2,056 $1,898 $2,959 $454 $ % 19.5% NM 4.4x 5.3x 3.4x 3.9x Dorman Products, Inc. $ % $1,895 $1,816 $823 $151 $ % 20.5% NM 12.4x 11.4x 11.2x 10.4x Meritor, Inc. $ % $736 $1,689 $3,392 $213 $ % 8.2% 3.3x 6.8x 7.2x 5.4x 5.2x Standard Motor Products Inc. $ % $784 $813 $983 $99 $ % 11.8% 0.3x 8.7x 8.7x 7.4x 7.4x Motorcar Parts of America, Inc. $ % $696 $712 $355 $31 $ % 9.6% 0.5x 22.8x 8.4x 20.8x 8.1x Fox Factory Holding Corp $ % $585 $627 $367 $43 $ % 15.3% 0.7x 14.6x 11.2x 9.0x Modine Manufacturing Company $ % $528 $604 $1,372 $52 $ % 7.4% 0.7x 11.5x 8.7x 5.9x NM Horizon Global Corporation $ % $228 $393 $579 $35 $ % x 12.7x 10.3x 8.2x 7.1x Mean $2,645 $3,605 $3,330 $355 $ % 15.1% 2.0x 9.9x 9.0x 7.7x Median $1,227 $1,753 $1,658 $182 $ % 13.2% 1.5x 12.5x 9.5x 7.8x 7.4x Aftermarket Retailers and Distributors AutoZone, Inc. $ % $23,788 $28,423 $10,427 $2,004 $2, % 21.9% 2.0x 14.2x 13.3x 12.4x 11.7x O'Reilly Automotive Inc. $ % $26,553 $27,827 $8,161 $1,601 $1, % 22.2% 0.6x 18.2x 16.4x 16.0x 14.5x Genuine Parts Company $ % $14,856 $15,320 $15,262 $1,119 $1, % 8.3% 0.4x 13.6x 13.1x 12.1x 11.5x Advance Auto Parts Inc. $ % $11,756 $12,898 $9,737 $964 $1, % 12.7% 0.9x 13.4x 11.6x 10.5x 9.5x LKQ Corp. $ $9,779 $11,270 $7,340 $732 $ % 11.8% 3.0x 15.7x 13.5x 13.3x 11.7x Uni-Select Inc. $ % $928 $915 $1,208 $86 $ % 7.9% 0.8x 10.8x 11.3x 9.6x 9.5x U.S. Auto Parts Network, Inc. $ $87 $106 $291 ($2) $6 28.7% x NM 159.4x 17.9x 8.2x Mean $12,535 $13,823 $7,489 $929 $1, % 12.4% 1.5x 14.3x 34.1x 13.1x 10.9x Median $11,756 $12,898 $8,161 $964 $1, % 11.8% 0.9x 13.9x 13.3x 12.4x 11.5x Dealers and Service Providers CarMax Inc. $ % $10,002 $20,573 $15,150 $1,059 $1, % 7.9% 8.9x 19.6x 18.9x 17.5x 16.6x AutoNation, Inc. $ % $4,813 $10,832 $21,037 $865 $ % 4.7% 6.7x 12.4x 11.8x 10.9x 10.1x KAR Auction Services, Inc. $ % $5,227 $8,146 $2,752 $453 $ % 24.4% 4.4x 18.9x 16.5x 12.7x 11.2x Penske Automotive Group, Inc. $ % $3,269 $7,916 $19,627 $575 $ % 3.3% 7.3x 13.1x 13.3x 11.6x 11.8x Copart, Inc. $ % $4,566 $5,083 $1,168 $360 $ % 34.4% 1.3x 14.1x 13.0x 12.7x 11.7x Lithia Motors Inc. $ $2,493 $4,407 $8,058 $346 $ % 5.0x 13.2x 12.1x 11.7x 10.9x Group 1 Automotive Inc. $ % $1,322 $4,117 $10,808 $372 $ % 3.9% 6.8x 11.2x 11.3x 9.9x 10.1x Asbury Automotive Group, Inc. $ $1,494 $3,237 $6,597 $300 $ % x 10.7x 10.9x 9.7x 9.9x Sonic Automotive Inc. $ % $851 $3,191 $9,623 $233 $ % 3.2% 7.5x 13.3x 13.6x 10.3x 10.5x Monro Muffler Brake Inc. $ % $2,301 $2,597 $934 $119 $ % 16.9% 1.9x 21.9x 18.7x 16.5x 14.2x Boyd Group Income Fund $ % $1,075 $1,138 $846 $54 $ % 8.6% 0.8x 19.7x 17.5x 14.6x 12.2x AutoCanada Inc. $ % $385 $1,034 $2,265 $77 $ % 4.1% 7.0x 13.7x 13.7x 11.5x 12.3x America's Car-Mart Inc. $ % $204 $327 $551 $28 $ % 5.8% 3.8x 11.7x 9.8x 10.2x 8.3x Mean $2,923 $5,584 $7,647 $372 $ % 9.8% 5.1x 14.9x 13.9x 12.3x 11.5x Median $2,301 $4,117 $6,597 $346 $ % x 13.3x 13.3x 11.6x 11.2x

4 4 Automotive Industry Market Update Q Public Market Average Enterprise Value / EBITDA Valuation Trends 5 Automotive Manufacturers Aftermarket Suppliers 9.0x 6.0x 7.6x 7.6x 7.5x 6.9x 7.3x 7.3x 6.2x 6.3x 9.0x 6.0x 8.2x 8.2x 7.8x 7.6x 7.5x 9.1x 8.6x 8.9x 3.0x 3.0x Domestic OEM Suppliers Retailers and Distributors 16.0x 9.0x 11.8x 11.2x 11.2x 12.2x 12.1x 12.4x 6.6x 6.6x 6.8x 6.8x 7.3x 7.4x 6.5x 6.3x 6.0x 8.0x 3.0x 4.0x International OEM Suppliers Dealers and Service Providers 16.0x 13.0x 13.9x 13.7x 12.9x 13.6x 13.3x 12.9x 12.7x 9.0x 7.7x 7.6x 6.8x 6.7x 8.0x 8.4x 6.9x 7.5x 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% 17.5% 17.9% 17.6% 18.3% % 17.4% 17.1% 25% 15% 27% 25% 23.5% 24.1% 24.1% 24.4% 24.9% 25.3% 25.9% 26.3% 6% 4% 16% 5% 23% 1.9% 2% 14% 12% 2.1% (0.9%) (4.5%) (4.4%) 0.4% 2.8% 1.7% 1.4% (5%) 21% 19% 0.1% (0.5%) (1.2%) (1.4%) (1.8%) (1.1%) (0.8%) (2%) (15%) 17% (4%) Domestic OEM Suppliers Retailers and Distributors 17% 15% 15.7% 15.7% 15.8% % 16.6% 16.8% 7% 44% 42% 41.9% 41.7% 41.5% 41.4% 41.6% 41.8% % 8% 6% 13% 11% 9% 0.5% 0. (0.4%) (0.1%) 2. (1.4%) (2.9%) 1.7% 4% 1% (2%) (5%) 4 38% 36% 4.3% 3.5% 3.6% 2.8% % 0.1% 0.2% 4% 2% 7% (8%) 34% (2%) International OEM Suppliers Dealers and Service Providers 26% 25% 24.3% 24.6% 24.6% 24.9% 3 24% 23% 23.4% 23.5% 23.7% 23.6% 18% 17.1% % 16.9% 8% 22% 16% 6% 21% 19% 18% 0.7% (2.4%) (2.8%) (5.2%) (2.1%) 3.8% 1.7% 0.8% () 14% 12% 3.1% 3.1% 3.8% 3.2% 3.2% 2.8% 4% 2% 17% 1.6% 1.5% 16% ()

6 6 Automotive Industry Market Update Q Merger and Acquisition Trends 5 Transaction Volume (# of Deals) 150 Transaction Value ($ in millions) 20, ,000 12,000 $16, ,000 4,000 $8,520 $1,285 $3,805 $4,762 $5,381 $2,312 $2,034 $8,580 0 Q1'14 0 Q1'14 Select Merger and Acquisition Activity Date Target Buyer Overview Mar-1 6 Mar-1 6 Take 5 Oil Change (Trivest Partners) The Paslin Company (Tower Three Partners) Driven Brands (Roark Capital Group) Prov ides oil change and ancillary serv ices Zhejiang Wanfeng Technology Dev elopment Co. Prov ides design, assembly and integration of robotic assembly equipment Mar-1 6 Jiffy -tite Company Oetiker Limited Manufactures highly engineered fluid connection parts and assemblies Mar-16 SUR&R Husky Corp. Supplies fuel, brake, air conditioning and transmission fuel line repair kits and specialty tools Mar-1 6 LoJack CalAmp Provides of aftermarket theft protection and security systems Roll-N-Lock Corporation Autom otiv e Dev elopm ent Group (Zabel Companies) Roadtrek Motorhom es (Industrial Opportunity Partners) Millennium Industries Corp. Luv erne Truck Equipment Applied Acoustics International (UGN, Inc.) Pure Power Technologies (Navistar) Lund International (Highland Partners) APCO Holdings Erwin Hymer Group TI Autom otiv e (Bain Capital) CURT Manufacturing (Audax) Angeles Equity Partners Feb-16 Magnum Automotiv e Group Dana Holding Corp Smithfield Group, Kensington Partners Designs and manufactures retractable tonneau covers and other cargo management products Prov ides automotiv e dealership training and consulting serv ices and F&I products Designs and m anufactures Class B m otorhom es Manufactures fuel rails and power steering reserv oirs Manufactures steel and alum inum exterior accessories for pickup trucks, v ans, SUVs and semi-tractors Manufactures sound barrier and noise damping products Supplies high performance diesel fuel injection sy stems Supplies gasket and sealing products for automotiv e and commercial v ehicle applications Pep Boy s Icahn Enterprises Sells automotiv e parts and repair serv ices Jan-1 6 Boston Plastics (Baird Capital) US Farathane Corp (The Gores Group) Manufactures plastic injection molded components and sub-assemblies Jan-1 6 Henman Engineering & Machine, Inc. JD Norman Industries Manufactures precision machined components Jan-1 6 Montupet Linamar Manufactures cast aluminum components Jan-1 6 Tepso Plastics Mex US Farathane Corp (The Gores Group) Manufactures engineered plastic injection molded components and assemblies Jan-1 6 Drake Autom otiv e Group Huron Capital Designs and distributes branded aftermarket products serv ing the classic car, offroad, and late model muscle car markets Jan-1 6 C.A.R.S. Protection Plus Summit Park Prov ides v ehicle serv ice contracts, primarily for the high mileage used car segment Jan-1 6 Getrag Magna International Manufacturers transm issions for the autom otiv e industry

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 1,016,369 1,048,171 (3.) 59.5% 58.7% U.S. Light Truck 2,009,808 1,829, % 73.1% 73.9% U.S. Light Vehicle 3,026,177 2,877, % 67.9% 67.5% Canada Car 220, ,906 (3.4%) 12.9% 12.8% Canada Light Truck 410, , % 14.9% 12.5% Canada Light Vehicle 630, , % 14.1% 12.6% Mexico Car 472, ,328 (7.2%) 27.7% 28.5% Mexico Light Truck 330, ,413 (1.6%) % Mexico Light Vehicle 802, ,741 (4.9%) % $3.00 $2.50 $2.00 $1.50 $2.56 $2.80 $2.89 $2.88 $2.73 $2.46 $2.39 $2.26 $2.14 $2.06 $2.07 $1.87 () North America Car 1,709,508 1,785,405 (4.3%) 38.3% 41.9% North America Light Truck 2,750,424 2,474, % 61.7% 58.1% North America LV 4,459,932 4,260, % $1.00 A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16 M-16 Retail Gasoline Price (All Grades) YOY Change (4) U.S. Light Vehicle Sales and Market Share 3 Unit Sales, YTD March % Share % Change Miles Traveled % General Motors 431, ,164 (0.6%) 17.4% 18.1% Ford 378, , % 15.3% 14.6% Toyota 349, ,661 (0.1%) 14.1% 14.6% FCA 335, , % 13.5% 12.8% Nissan 236, , % 9.6% 9.3% Honda 219, , % 8.9% 8.7% Hyundai 98,020 97, Kia Motors 88,042 82, % 3.6% 3.4% Subaru 83,112 82, % 3.4% 3.4% Daimler 52,616 52, % 2.1% 2.2% Other 204, ,596 (4.9%) 8.2% 8.9% Total 2,477,077 2,399, % % 3.1% 3.3% 3.5% 3.6% 3.6% 3.4% 2.2% 2.2% % 1.7% F-15 M-15 A-15 M-15 J-15 J-15 A-15 S-15 O-15 N-15 D-15 J-16 F-16 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 6. Indices weighted by market capitalization 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 Overview of Western Reserve Partners 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 partners average nearly 30 years of experience and have executed more than 600 transactions throughout their careers. What We Do Why We re Different Financial Advisory Services Focused Industry Verticals Dedicated Senior Attention Global Reach Sell-Side Advisory Buy-Side Advisory Capital Raising Financial Opinions and Valuations Restructuring and Bankruptcy Industrial Consumer Healthcare and Technology Distribution Services Real Estate Partners average nearly 30 years of experience and have collectively executed more than 600 transactions We are a member of M&A International Inc., a premier alliance of nearly 50 investment banking firms in over 40 countries Recent Automotive Industry Transactions a portfolio company of a portfolio company of a subsidiary of & Defiance Partners has been acquired by and has sold its Wiring Business segment to has been acquired by a portfolio company of has been acquired by a portfolio company of Sell-Side Advisor Sell-Side Advisor Sell-Side Advisor Sell-Side Advisor Automotive Practice Overview Western Reserve s professionals have extensive experience in the automotive industry, having completed 70 transactions at a collective value of nearly $6 billion We have worked with clients across the automotive industry, including: Segments Aftermarket Original Equipment Distribution Manufacturing Automation 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