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Automotive M&A reviewQ2 2019 Financial Advisory

FOR MANUAL HEADERS UPDATE HERE (as well as on the main front cover):COVER TITLECOVER SUBTITLE

Contents

Introduction 03

Highlights 04

Notable transactions 06

Intelligence 08

Statistics 09

Welcome to the Q2 2019 edition of Deloitte’s Automotive M&A review, the latest in a series of quarterly updates that provides an overview of relevant news and transaction activity in the Automotive sector.

We hope you enjoy the summary and find it both interesting and informative. If you have any questions, comments or would like to discuss the sector in more detail, please do not hesitate to get in touch.

Deloitte Financial Advisory - Industrials

Introduction

This publication is an easy to digest summary of information sourced from publicly available and third party sources and has not been checked or verified in any way

03

Automotive M&A review Q2 2019 | Deloitte Financial Advisory

¹ STOXX 600 Automobiles & Parts regional indices ² Multiples shown above are the median, current year (“CY”) EV/EBITDA multiple for a representative group of companiesSource: FactSet, Deloitte analysis

Highlights

Note: The multiples are derived from FactSet without adjustment and are dependent on FactSet’s analysis of the constituent companies’ financial performance. In the case of OEMs, FactSet may exclude certain financial assets from its calculation of enterprise value, which can lead to high multiples

0.0

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AutomotiveSales

AftermarketTiresPowertrainInteriors &Exteriors

DiversifiedControls &Electronics

ChassisOEMs

6.7x 6.6x

8.8x 8.6x

5.1x4.0x 4.4x 4.8x

7.2x

6.0x 6.0x 6.3x5.8x

4.6x5.1x 5.1x

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6.2x5.5x 5.5x 5.7x 5.6x

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10.0x10.9x

10.2x10.7x11.0x

Figure 3. Trading multiples2

Q318 Q418 Q119 Q219

CY E

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Global automotive indices were volatile in Q2 2019, and European and North American indices finished the quarter down on Q1, despite some recovery in June. With the exception of Uber’s IPO, major transactional activity was mutedEuropean and North American automotive indices were volatile during the quarter and, despite initial gains, ended the period lower (Figure 1). The AsiaPac index followed a comparatively steadier trajectory and was flat over the period. Key themes continue to be sector consolidation, portfolio realignment, new technologies, trading relationships and consumer demand.

Total announced M&A deal value in the period was $8.2bn (Figure 2), down on the previous quarter of $12.4bn. Nonetheless, three deals were recorded with a transaction value over $1bn, including TDR Capital’s $2.9bn offer for UK used vehicles marketplace BCA Marketplace. The equity markets enjoyed some recovery in capital issuance, including the much-anticipated IPO of Uber, which raised proceeds of $8.1bn.

Figure 3 provides quarter-on-quarter multiples for a variety of automotive sub-sectors. Trading multiples had a mixed performance in the quarter. Share prices declined very slightly on average across the quarter (less than 1%), with the strongest performing sub-sectors being Automotive Sales (10%) and Aftermarket (12%). Of the OEMs, Ford had a particularly strong quarter (17%) with a significant investment in the electric vehicle space.

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Figure 1. Regional automotive index performance1

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Figure 2. M&A deal value by region & subsector – Q2 2019

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04


OEMsThe M&A highlight of the quarter was a deal that did not happen. FCA proposed a €33bn all-share merger with Renault which would have seen the combined business ranked third globally in terms of vehicle sales. FCA subsequently withdrew its proposal, stating that “the political conditions in France do not currently exist for such a combination to proceed successfully”.

Volkswagen successfully completed the Frankfurt and NASDAQ Stockholm listing of a 11.5% equity stake in Traton, its truck division that includes the Man and Scania brands. The transaction raised approximately $1.7bn for VW and valued Traton at $15.3bn, equivalent to nearly nine times 2018 EBIT.

Tesla, the EV specialist, confirmed many market commentators’ expectations and raised $2.35bn via the issue of $750m of equity and $1.6bn of convertible bonds. The funds will be used for “general corporate purposes”.

BatteryNorthvolt, the European battery start-up, undertook a capital raising to help construct the first phase of its battery factory in northern Sweden. When complete, the factory will produce 16 gigawatt hours of lithium-ion batteries per year. Equity funding of $1bn was invested by VW and BMW amongst others. Additional debt capital was provided by the European Investment Bank ($400m) and other lenders. In addition, Northvolt established a joint venture with VW to develop a 16GWh battery cell gigafactory in Lower Saxony, Germany.

Daimler invested $100m for a 10 per cent equity stake in Sila Nanotechnologies, a Californian battery materials start-up. Sila, which raised a total of $170m, focuses on chemistries that enable higher energy densities and claims that its materials can improve the density of batteries by 20 per cent. Its products have applications in a variety of end markets including electric vehicles.

BrakesThe Dutch braking systems manufacturer, Chassis Brakes International, which was put up for sale by KPS Capital in January 2019, was sold to Hitachi Automotive Systems. Terms were not disclosed, although KPS reportedly made a six times return on its investment. CBI was established by KPS in 2012 to acquire the automotive foundation brakes business of Robert Bosch.

Controls & ElectronicsVeoneer, the Swedish safety systems specialist, raised $600m in equity and convertible loan notes for working capital purposes following weak trading.

Automotive salesBCA Marketplace, the UK used vehicles marketplace, received an offer from private equity operator TDR Capital that values BCA’s equity at $2.4bn. The enterprise value under the offer equates to circa 12.5 times BCA’s reported adjusted EBITDA.

UK car dealership Pendragon undertook an operational & financial review following poor trading, particularly in its used car division, and operational issues. The business subsequently disposed of two US JLR dealerships to Lithia Motors for $77m and will provide a strategic update to investors in Q3.

TelematicsThe theme of tire OEMs investing in the telematics sector continued, with Michelin announcing the acquisition of Masternaut, a leading European telematics provider. Masternaut operates primarily in France and the UK and manages over 220,000 mostly light utility vehicles under contract. Michelin cited benefits such as the accelerated development of its Services & Solutions business for light vehicles, the potential for geographical expansion and the increased volume of data capture enabling greater services. Consideration was stated as eight times 2018 EBITDA.

Autonomous drivingApple acquired autonomous driving startup Drive.ai. Terms have not been disclosed although reports suggested consideration would be less than the $77m raised in venture capital to date.

Renault, Nissan and Mitsuibishi have agreed to partner with Waymo, Alphabet’s autonomous vehicle unit, to explore driverless mobility services. The partnership will involve establishing “alliance-focused” joint venture companies in France and Japan.

Ford agreed to invest $500m in Rivian, an EV start-up that has developed its own battery pick-up truck. Amazon is an existing investor in the venture.

TuSimple, a San Diego based autonomous truck company closed a $200m Series D financing. TuSimple is undertaking a mail delivery trial for the US Postal Service between Phoenix and Dallas.

Ride-hailingUber become the second ride-hailing company to publicly list its shares, following in the footsteps of Lyft’s Q1 IPO. The business raised $8.1bn in new capital at a valuation of $82bn, pricing at the bottom end of its reported price range. At the end of the quarter, Uber’s shares were trading marginally below their issue price.

Source: Company announcements, press

05


Transaction Sector Date Description Detail

BCA Marketplace Target

TDR CapitalAcquirer

Automotive Sales

20-Jun TDR Capital acquired BCA Marketplace, the listed UK-based second-hand car auctioneer and owner of the ‘WeBuyAnyCar.com’ brand. BCA Marketplace is one of the UK’s largest auction and remarketing business, selling over one million vehicles per annum

Value: $2,901mEV/Rev: 0.7xEV/EBITDA: 12.4x

Chassis Brakes Target

Hitachi AutomotiveAcquirer

Brakes 19-Jun Hitachi Automotive, the automotive components and systems subsidiary of Hitachi, acquired Chassis Brakes International, one of the world’s largest manufacturers of automotive foundation brakes and components. The transaction is in line with Hitachi Automotive’s strategy to enhance its core business areas of powertrain, chassis and safety systems

Value: $772mEV/Rev: 0.7xEV/EBITDA: 11.8x

Pritex Target

Saint GobainAcquirer

Interiors 29-May French industrial conglomerate Saint-Gobain acquired UK-based acoustic-insulation company Pritex. Saint Gobain’s stated intention is to combine Pritex’s thermo-acoustic capabilities with its existing automotive glazing expertise to develop differentiated noise control and lightweight products for electric vehicles

Value: n/dEV/Rev: n/dEV/EBITDA: n/d

GuardKnox Investee

FaureciaInvestor

Controls & Electronics

28-May The venture fund of automotive technology company Faurecia invested in GuardKnox, an Israeli automotive cyber-security provider. The acquisition is expected to enable Faurecia to reinforce data security in its connected car technologies

Investment: n/dImplied value: n/d

Ravin.ai Investee

VariousInvestor

Autonomous Driving

21-May Ravin.ai, an Israel and UK-based startup developing AI to autonomously inspect vehicles for damage, has secured a $4m seed investment round led by Pico Venture Partners and including Shell Ventures. The company is developing technology to detect and analyse damage via standard cameras such as smartphones or CCTV cameras

Investment: $4mImplied value: n/d

Quadric.io Investee

VariousInvestor

Autonomous Driving

21-May Tier one automotive supplier Denso led a series A funding round in Quadrico.io, a startup that is developing machine learning software for autonomous vehicles and robots. The purpose of the investment is to help fund Quadric.io’s development of edge processing units, seen as potential foundations for automated driving


Masternaut Target

MichelinAcquirer

Telematics 16-May French tire maker Michelin acquired Masternaut, the provider of onboard telematics solutions for vehicle fleet management and monitoring, operating primarily in the UK and France. Michelin is seeking to accelerate its telematics offering in Europe

Value: n/dEV/Rev: n/dEV/EBITDA: 8.0x

Rimac Automobili Investee

Hyundai/KiaInvestor

OEM 15-May Hyundai and Kia invested €64m and €16m respectively in Croatian EV sportscar developer Rimac Automobili. The companies will work together to develop two models of performance-oriented electric vehicles by 2020


XTRONIC Target

SchaefflerAcquirer

Controls & Electronics

09-May Schaeffler sought to strengthen its software and electronics capabilities through the acquisition of Xtronic. Xtronic provides services and solutions in a range of areas, including automated driving applications, electric mobility, functional safety, as well as methods, tools and test systems

Value: n/dEV/Rev: n/dEV/EBITDA: n/d

Bond Mobility Investee

DENSOInvestor

Alternative Mobility

02-May Denso’s New Mobility Group led a $20m series A funding round in Bond Mobility, a station-less, high-speed eBike service company. The investment was made by DENSO’s New Mobility Group, which includes Toyota and Softbank


Notable transactions

Notes: EV/Rev and EV/EBITDA refer to trailing financials Source: Company announcements, press

06


Transaction Sector Date Description Detail

AxleTech/Vantage Power Target

Allison TransmissionAcquirer

Powertrain 29-Apr Allison Transmission Holdings, the global manufacturer of medium and heavy-duty fully automatic transmissions, acquired AxleTech’s electric vehicle systems division and London-based Vantage Power. Both acquisitions are expected to advance Allison’s electrification propulsion technologies for commercial vehicles

Combined value: $132mEV/Rev: n/dEV/EBITDA: n/d

Drivy Target

GetaroundAcquirer

Car Sharing 24-Apr San Francisco-based car sharing platform Getaround acquired French rival Drivy for $300m as it seeks to build a business in Europe. Drivy has an estimated two and a half million users across Europe

Value: $300mEV/Rev: n/dEV/EBITDA: n/d

Uber ATG Investee

VariousInvestor

Autonomous Driving

23-Apr Toyota, Denso and Softbank’s investment fund invested $1bn in Uber Advanced Technologies Group, Uber’s entity focused on developing and commercialising automated ride-hailing services

Investment: $1.0bnImplied value: n/d

Sila Nanotechnologies Investee

DaimlerInvestor

Battery 16-Apr Daimler invested $100m in return for a 10% stake in Sila Nanotechnologies, a battery materials developer founded by one of Tesla’s first employees. Sila’s battery materials purportedly outperform existing lithium-ion technologies

Investment: $100mImplied value: $1.0bn

Xevo Target

Lear CorporationAcquirer

Software 03-Apr Lear Corporation, the automotive seating and electronic systems company, acquired Tier 1 automotive software supplier Xevo. Lear is aiming to enhance its capabilities in software, telematics and connected car technology

Value: $320mEV/Rev: n/dEV/EBITDA: n/d

07


M&AVolkswagen may seek to put Renk, its manufacturer of transmissions, on the market in Autumn 2019. A Reuters report suggested that the business will be marketed to a number of private equity operators as well as industry peers.

Toyota is considering investing up to $550 million in Chinese ride-hailing giant Didi Chuxing in an effort to expand its business in China. Toyota and Didi are reportedly looking to set up a joint venture to offer mobility services including ride-sharing.

Shareholders voted to reorganise the Daimler Group, clearing the way for the automaker to separate its car and van business from its truck and bus business into two legally independent entities.

Belgium-based company D’Ieteren, which is active in the automotive import market and provides auto glass repair services, is looking to deploy over $1bn in capital on a single acquisition. Suitable targets will be based in Europe with a strategy to expand services further into Europe or Asia.

The automotive interiors unit of the Belgium-based Recticel has reportedly attracted several suitors. The division produces instrument panels and door pieces.

Horizon Global, a leading manufacturer of branded towing and trailering equipment, has launched a sales process for its Asia-Pacific business segment.

Axcel, the Danish private equity firm, has plans to exit Mountain Top Industries with an auction due to commence after the summer. Reports suggest current EBITDA is around $30m. Mountain Top produces accessories for pick-up trucks and car manufacturers for factory assembly.

Italian brakes manufacturer Brembo is preparing to make a major acquisition to beef up its presence in electronics, software and data management.

wejo, a UK developer of a trading platform for connected car data, is looking at acquisitions to expand its offering and distribution network.

Nucap, a Spanish firm specialising in brake systems and components for the automotive industry, is being marketed. The process is in early stages, but Nucap has reportedly already attracted initial offers from private equity.

Magna International, the US-based automobile parts manufacturer, is looking for growth and is open to buys according to reports. Magna recently acquired a manufacturer of tail lights based in Italy.

Teklas Kaucuk, a Turkish automotive component maker, has mandated advisers for a potential sale. The manufacturer of heating and cooling systems may be valued at €600m to €700m, according to reports.

UK-based car retailer Vertu Motors is interested in acquiring counterparts across all its business lines. Interesting assets include premium and volume car retailers, as well as commercial vehicle and motorbike dealerships. Dealerships selling vehicles manufactured by companies Vertu Motors has a relationship with are the focus.

Czech automotive parts manufacturer ATEK has mandated advisers to find a buyer for the family-owned company. ATEK produces plastic and rubber products as well as providing assembly services.

Spanish group CIE Automotive is preparing a 2020-2025 strategic plan that will be marked by “very ambitious growth”, much of which will come from further acquisitions. The automotive components group made the announcement the day after closing the purchase of the car roofing business of US-based Inteva for circa $760m. CIE went on to acquire two Mexico-based machining components businesses for $65m.

Capital RaisingByton, a Chinese electric vehicle startup, is aiming to raise about $500m in its latest fundraising round from investors, according to a newswire report.

Intelligence

Source: Company announcements, press

08


Statistics

09

Notes: M&A Transactions captures announced (but not necessarily completed) transactions with disclosed values greater than $5m. Transaction value differs to Implied Enterprise Value where 100% control not acquired. TV = Transaction Value; EV = Enterprise Value; Rev = Revenue; EV/Rev and EV/EBITDA = trailing multiples. Equity offerings captures offerings with gross proceeds greater than $10mSource: FactSet

Date Target Country Focus Acquirer TV $m

Implied EV $m EV/Rev EV/

EBITDA

24-Jun-19 MYOUNG SHIN Co., Ltd. South Korea Diversified MS Autotech Co., Ltd. 22.6 36.9 0.3x -

24-Jun-19 INZI AMT Co. Ltd. South Korea Diversified INZI DISPLAY Co., Ltd. 14.4 14.4 - -

20-Jun-19 BCA Marketplace Plc United Kingdom Automotive Sales TDR Capital LLP 2,901.3 2,901.3 0.7x 12.4x

19-Jun-19 Chassis Brakes International BV Netherlands Powertrain Hitachi Automotive Systems Ltd. 771.8 771.8 0.7x -

06-Jun-19 Motorcycle Distributors Australia Pty Ltd. Australia Automotive Sales KTM Sportmotorcycle GmbH 9.3 12.6 - -

29-May-19 Zhongce Rubber Group Co., Ltd. China Tires Hangcha Group Co., Ltd. and others 1,020.2 1,786.3 0.5x -

28-May-19 Alexander Dennis Ltd. United Kingdom Chassis NFI Group, Inc. 369.3 369.3 0.5x 7.1x

27-May-19 Jackspeed Corp. Ltd. /Jackspeed Business/ Singapore Interiors & Exteriors Jackspeed Corp. Ltd. /Jackspeed Business//Management/ 34.9 34.9 - -

17-May-19 Tata International DLT Pvt Ltd. India Chassis ADV Partners Ltd 19.6 19.6 - -

16-May-19 HK Motors Co., Ltd. South Korea Aftermarket HK Automotive 5.4 5.4 - -

11-May-19 Beijing Prestolite e-Propulsion Technology Co. Ltd. China Powertrain Dana Electric Holdings BVBA 47.9 95.7 4.0x -

10-May-19 Changzhou Dongfeng Xinchen Power Machinery Co. Ltd. China Powertrain Dongfeng Motor Co., Ltd. 7.4 14.8 421.2x -

08-May-19 AxleTech International, Inc. United States Chassis Meritor, Inc. 175.0 175.0 0.7x -

07-May-19 Roechling Automotive Germany /Wolfsburg-Hattorf Factory Germany Interiors & Exteriors Kasai (Germany) GmbH 13.5 13.5 - -

02-May-19 Pendragon Plc /Jaguar Land Rover California Dealership Bus/ United States Automotive Sales Lithia Motors, Inc. 37.9 37.9 - -

01-May-19 Air Ride Technologies, Inc. United States Chassis Fox Factory Holding Corp. 14.0 14.0 - -

26-Apr-19 Shanghai SIIC Transportation Electric Co., Ltd. China Controls &

Electronics Huayu Automotive Systems Co., Ltd. 65.9 219.5 - -

26-Apr-19 SORL Auto Parts, Inc. China Diversified Zhejiang Ruili Group Co., Ltd.; Sorl Auto Parts, Inc. /Private Group/ 33.8 242.9 - -

16-Apr-19 Federal-Mogul Motorparts LLC United States Aftermarket KTRI Holdings, Inc. 27.3 27.3 - -

16-Apr-19 Omron Automotive Electronics Co., Ltd. Japan Controls & Electronics NIDEC Corp. 892.8 892.8 2.8x -

08-Apr-19 Eaton Ltda. Brazil Diversified Aços Macom Indústria e Comércio Ltda. 5.7 5.7 - -

05-Apr-19 Automotive Holdings Group Ltd. Australia Automotive Sales A. P. Eagers Ltd. 1,211.9 1,342.2 0.3x 15.2x

03-Apr-19 Setrab AB Sweden Controls & Electronics Zhejiang Yinlun Machinery Co., Ltd. 7.5 7.5 - -

02-Apr-19 Sime Kubota Sdn. Bhd. Malaysia Automotive Sales Kubota Corp. 6.3 12.0 - -

02-Apr-19 WABCO India Ltd. India Powertrain ZF Friedrichshafen AG 432.5 1,729.9 3.9x 26.8x

01-Apr-19 Stoneridge, Inc. /Pollak Bus/ United States Controls & Electronics Standard Motor Products, Inc. 40.0 40.0 - -

M&A transactions

Offer Date Company Country Description Stock Exchange Offer Type Proceeds

($m)

27-Jun-19 TRATON SE Germany Automotive OEM Frankfurt IPO 1,537.4

23-May-19 Veoneer, Inc. United States Automotive safety electronics NYSE Follow-On 420.0

21-May-19 AB Dynamics Plc United Kingdom Advanced driver assistance systems

London Stock Exchange Follow-On 45.1

21-May-19 LiqTech International, Inc. Denmark Diesel particulate filters NASDAQ Follow-On 16.1

21-May-19 Carvana Co. United States Online car dealing platform NYSE Follow-On 273.0

09-May-19 Uber Technologies, Inc. United States Ride-hailing NYSE IPO 8,100.0

02-May-19 Tesla, Inc. United States Automotive OEM NASDAQ Follow-On 750.0

18-Apr-19 Nanjing Chervon Auto Precision Technology Co. Ltd. China Automotive components Shanghai IPO 73.0

Equity offerings

10


Trading Comparables

Summary Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

$m $m H C F H C F % %

OEMs - Europe 37,804 99,639 2.1 2.0 1.8 9.7 9.8 8.9 16.4% 7.3%

OEMs - N. America 38,884 94,029 1.1 1.0 0.9 13.6 11.6 9.3 9.6% 13.8%

OEMs - AsiaPac 22,599 36,342 1.0 1.0 0.9 16.4 7.4 6.7 4.1% 33.9%

OEMs - Total 27,935 57,402 1.3 1.2 1.1 14.3 8.6 7.5 7.7% 27.0%

Chassis 2,937 4,683 0.6 0.6 0.6 5.0 4.8 4.5 12.2% 20.4%

Controls & Electronics 3,515 4,321 1.4 1.3 1.2 13.9 8.1 6.8 14.0% 32.5%

Diversified 8,515 9,499 0.8 0.7 0.7 5.9 5.5 5.0 12.4% 14.5%

Interiors & Exteriors 3,315 3,631 0.9 0.8 0.8 6.3 5.6 5.1 13.4% 13.5%

Powertrain 4,792 5,990 1.1 1.1 1.0 7.2 6.6 6.2 14.9% 8.8%

Tires 10,365 12,909 1.2 1.2 1.1 6.5 5.8 5.4 18.8% 19.1%

Automotive Aftermarket 3,663 4,309 1.8 1.6 1.5 20.3 11.2 10.6 11.7% 28.7%

Automotive Sales 3,032 6,376 0.6 0.5 0.5 11.4 10.0 9.6 3.1% 25.8%

Mean 13,946 28,261 1.1 1.1 1.0 10.9 7.9 7.1 11.5% 20.4%

Median 6,654 7,938 1.1 1.1 1.0 10.5 7.8 6.7 12.3% 19.7%

Trading Comparables

Automotive OEMs Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

$m $m H C F H C F % %

Europe

Aston Martin 2,954 3,679 2.6 2.4 1.8 12.7 10.1 7.0 23.5% nmf

BMW 48,139 159,726 1.5 1.4 1.4 8.1 11.0 10.0 13.1% nmf

Daimler 59,480 205,759 1.1 1.1 1.0 7.5 10.9 10.3 9.8% 4.8%

Ferrari 30,581 31,710 8.2 7.6 7.0 25.1 22.3 19.4 34.0% nmf

PSA 22,481 16,444 0.2 0.2 0.2 1.7 1.8 1.7 10.7% 9.0%

Renault 18,580 61,665 0.9 1.0 0.9 8.2 8.9 8.6 10.7% nmf

Volkswagen 85,797 272,714 1.0 1.0 1.0 5.8 6.8 6.5 14.5% 9.9%

Volvo 34,418 45,413 1.1 1.0 1.1 8.6 6.9 7.7 14.9% 5.4%

North America

FCA 21,774 24,827 0.2 0.2 0.2 2.4 1.8 1.7 11.3% 9.2%

Ford 40,088 162,275 1.0 1.0 1.0 14.2 12.6 12.7 8.2% 25.5%

GM 54,651 139,348 0.9 1.0 1.0 7.7 8.9 9.2 10.7% 6.8%

Tesla 39,021 49,664 2.3 1.9 1.6 30.1 23.2 13.5 8.4% nmf

Notes: EV = Enterprise Value; H = historical year; C = current year; F = forecast year; EPS growth = growth per annum in earnings per share between historical and forecast periods; nmf = no meaningful figure. Market Cap and EV as of 30 June 2019Source: FactSet

Listed Automotive Companies

11


Trading Comparables

Automotive OEMs Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

$m $m H C F H C F % %

AsiaPac

BAIC 1,582 4,401 0.2 0.2 0.2 1.1 1.0 0.9 17.6% 15.3%

Brilliance 5,582 5,791 8.7 9.0 7.9 nmf nmf nmf -6.9% 13.3%

BYD 19,275 28,413 1.5 1.3 1.1 12.9 11.6 10.6 11.0% 17.7%

Changan 4,360 2,588 0.3 0.3 0.2 nmf 11.0 8.7 2.3% 84.1%

Dongfeng Motor 2,340 4,938 0.3 0.3 0.3 160.6 10.1 10.8 3.2% nmf

GAC 14,800 13,142 1.2 1.3 1.2 18.3 16.1 13.7 8.0% 4.0%

Geely Auto 15,588 13,854 0.9 0.9 0.8 5.7 5.5 5.0 15.8% 2.2%

Great Wall 9,757 11,298 0.8 0.7 0.7 7.9 7.5 6.8 9.6% 0.1%

Honda 47,592 93,986 0.6 0.7 0.6 4.7 8.2 7.7 8.0% 10.6%

Hyundai 30,622 78,598 0.9 0.9 0.9 14.5 11.6 10.7 7.5% 72.8%

JAC 1,463 1,770 0.2 0.2 0.2 nmf 5.2 4.7 4.4% nmf

JMC 1,796 748 0.2 0.2 0.1 12.1 3.9 3.2 4.0% 244.8%

Kia 15,011 14,365 0.3 0.3 0.3 5.4 4.3 4.1 7.0% 36.2%

Mazda 6,686 6,093 0.2 0.2 0.2 3.8 3.5 3.1 5.2% 14.5%

Mitsubishi 7,335 4,979 0.2 0.2 0.2 3.1 3.0 2.6 7.0% nmf

NIO 1,969 1,416 1.9 0.8 0.4 nmf nmf nmf -71.0% nmf

Nissan 30,777 93,942 0.9 0.9 0.9 8.5 13.0 11.5 7.1% 3.5%

SAIC 44,464 61,368 0.5 0.5 0.4 14.4 11.5 9.1 4.0% 3.2%

Subaru 19,417 11,811 0.4 0.4 0.4 4.2 3.2 3.0 11.7% 28.3%

Suzuki 23,313 23,314 0.7 0.6 0.6 5.3 5.0 4.6 12.7% 11.7%

Tata Motors 7,619 14,760 0.3 0.3 0.3 4.2 3.0 2.6 10.6% nmf

Toyota 207,137 343,027 1.2 1.2 1.2 8.8 10.1 9.6 12.2% 14.5%

Zotye 1,286 1,257 0.6 nmf nmf nmf nmf nmf nmf nmf

Mean 27,935 57,402 1.3 1.2 1.1 14.3 8.6 7.5 7.7% 27.0%

Median 19,275 16,444 0.9 0.8 0.7 8.0 8.6 7.7 9.7% 11.2%



12


Trading Comparables

Automotive Suppliers Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

Chassis $m $m H C F H C F % %

Aisin Seiki 10,368 17,524 0.5 0.5 0.5 4.6 4.3 3.9 10.9% 3.0%

American Axle 1,435 4,986 0.7 0.7 0.7 4.4 4.2 4.2 16.2% nmf

Dana 2,870 5,334 0.7 0.6 0.6 5.8 4.8 4.6 12.3% 9.4%

Georg Fischer 3,923 4,211 0.9 1.0 1.0 8.4 8.4 7.8 12.5% nmf

Gestamp 3,415 7,304 0.8 0.7 0.7 7.0 6.0 5.5 11.7% 14.4%

Iochpe Maxion 891 1,642 0.7 0.6 0.6 5.8 5.4 4.9 11.6% 32.0%

JOST Werke 511 608 0.7 0.7 0.7 5.8 5.3 5.4 13.0% nmf

NHK Spring 1,932 1,743 0.3 0.3 0.3 3.6 3.6 3.4 7.5% 62.6%

NSK 5,071 6,595 0.7 0.8 0.8 5.7 6.4 5.8 12.0% nmf

Showa 1,080 799 0.3 0.3 0.3 2.1 2.2 2.0 14.2% 1.0%

Unipres 813 768 0.3 0.3 0.3 2.2 2.2 2.1 12.3% nmf

Mean 2,937 4,683 0.6 0.6 0.6 5.0 4.8 4.5 12.2% 20.4%

Median 1,932 4,211 0.7 0.6 0.6 5.7 4.8 4.6 12.3% 11.9%

Trading Comparables


Controls & Electronics $m $m H C F H C F % %

Amara Raja 1,561 1,557 1.6 1.5 1.3 11.3 9.8 8.7 14.8% 16.2%

Aptiv 20,841 25,711 1.8 1.7 1.6 11.3 10.9 9.9 16.0% 19.2%

Autoliv 6,150 7,910 0.9 0.9 0.8 6.3 6.3 5.7 14.2% 88.7%

Autoneum Holding 660 1,057 0.5 0.5 0.4 7.0 6.3 5.1 7.2% 2.0%

CUB Elecparts 1,011 1,025 7.9 6.6 5.3 22.6 16.7 13.9 39.4% 23.9%

Exide Industries 2,550 2,356 1.1 1.4 1.3 5.0 9.9 8.9 14.0% 10.6%

Gentex 6,290 5,888 3.2 3.1 3.0 9.6 9.8 9.5 32.1% 4.1%

Hanon Systems 5,322 7,307 1.4 1.2 1.1 12.7 10.3 8.8 11.4% 22.2%

Hella 5,514 6,059 0.8 0.8 0.7 5.6 4.7 5.4 16.2% 1.6%

Gentherm 1,409 1,481 1.4 1.4 1.4 10.7 10.0 8.6 14.4% 52.0%

Hu Lane 238 248 1.9 1.9 1.7 7.9 8.5 7.0 22.5% 4.4%

Iron Force 220 182 1.3 1.3 nmf 7.8 6.2 nmf 20.2% nmf

Koito 8,731 6,804 0.9 0.9 0.8 5.5 5.1 4.7 16.8% 3.1%

Kongsberg Automotive 333 721 0.6 0.5 0.5 5.8 5.3 5.0 10.0% 59.5%

Leoni 527 1,758 0.3 0.3 0.3 5.6 15.2 5.5 2.0% nmf

Melexis 2,789 2,789 4.3 4.8 4.2 13.9 19.0 14.2 25.5% nmf


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Trading Comparables


Diversified $m $m H C F H C F % %

CIE 3,673 5,213 1.5 1.3 1.2 8.7 7.5 6.7 17.3% nmf

Continental 29,177 34,606 0.7 0.7 0.6 5.7 5.1 4.6 13.3% nmf

Denso 33,778 34,059 0.7 0.7 0.6 5.8 5.2 4.9 12.7% 14.8%

Global PMX 331 397 2.8 2.5 2.3 10.6 9.4 8.0 27.0% 18.3%

Hyundai Mobis 19,333 12,639 0.4 0.4 0.4 5.4 4.9 4.6 8.1% 16.4%

Magna 16,063 20,750 0.5 0.5 0.5 4.9 5.1 5.0 10.0% 3.9%

Martinrea 686 1,400 0.5 0.5 0.5 4.0 3.7 3.5 13.1% 13.5%

Modine 726 1,141 0.5 0.5 0.5 5.7 5.3 5.0 9.8% 4.5%

Ningbo Joyson 3,083 5,612 0.7 0.6 0.6 7.5 6.2 5.3 9.5% 16.6%

S&T Motiv 550 360 0.4 0.4 0.4 4.4 4.3 3.9 9.8% 5.0%

SKF 8,402 9,652 1.0 1.0 1.0 7.2 7.1 7.1 14.6% nmf

Sogefi 170 572 0.3 0.3 0.3 2.4 2.7 2.6 11.7% 46.4%

Toyoda Gosei 2,590 3,002 0.4 0.4 0.4 4.4 4.2 3.9 9.1% 14.8%

Valeo 7,515 11,170 0.5 0.5 0.5 4.5 4.2 3.8 11.9% 15.9%

Visteon 1,656 1,913 0.6 0.7 0.6 6.5 7.8 6.0 8.4% 4.5%

Mean 8,515 9,499 0.8 0.7 0.7 5.9 5.5 5.0 12.4% 14.5%

Median 3,083 5,213 0.5 0.5 0.5 5.7 5.1 4.9 11.7% 14.8%

Trading Comparables


Controls & Electronics $m $m H C F H C F % %

Motherson Sumi 5,757 7,326 0.8 0.7 0.7 9.5 8.2 7.0 8.8% 24.6%

NOK 2,643 3,070 0.5 0.5 0.5 4.8 4.3 3.9 11.5% 181.4%

Stanley Electric 4,428 3,633 0.9 0.9 0.9 4.5 4.5 4.2 20.2% 1.2%

Stoneridge 905 964 1.1 1.1 1.1 10.1 10.2 8.5 11.2% 5.1%

Sumitomo 10,573 15,965 0.5 0.5 0.5 5.5 5.5 5.2 9.9% 0.0%

Sumitomo Riko 817 1,560 0.4 0.4 0.4 4.3 4.7 4.4 7.8% nmf

Tenneco 634 6,302 0.5 0.4 0.3 7.1 4.1 3.8 8.5% 128.4%

TI Fluid Systems 1,311 2,276 0.6 0.6 0.5 4.4 4.1 4.1 13.9% 23.6%

Tokai Rika 1,600 1,158 0.2 0.2 0.2 2.4 2.4 2.3 9.9% 11.0%

Tung Thih Electronic 171 215 0.9 0.9 nmf 159.6 nmf nmf nmf nmf

Veoneer 1,928 1,352 0.6 0.7 0.6 nmf nmf nmf -14.9% nmf

Mean 3,515 4,321 1.4 1.3 1.2 13.9 8.1 6.8 14.0% 32.5%

Median 1,600 2,276 0.9 0.9 0.8 7.0 6.3 5.6 14.0% 16.2%



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Trading Comparables


Interiors & Exteriors $m $m H C F H C F % %

Adient 2,270 5,572 0.3 0.3 0.3 8.1 7.0 5.8 4.8% nmf

Faurecia 6,284 7,243 0.4 0.3 0.3 3.5 3.0 2.7 11.4% 8.5%

Fuyao Glass 8,315 8,707 2.9 2.7 2.5 10.1 9.5 8.4 28.1% 0.2%

Grammer 470 871 0.4 0.4 0.4 7.0 4.6 4.4 7.9% 58.5%

Huayu Automotive 10,253 9,077 0.4 0.4 0.4 6.7 5.8 5.3 6.6% nmf

Lear 8,671 9,744 0.5 0.5 0.4 4.4 4.6 4.4 10.1% 6.5%

Macauto 201 207 1.0 1.0 0.9 7.4 7.1 6.0 14.2% 10.2%

Minth 3,097 3,067 1.6 1.5 1.3 7.8 6.6 5.7 23.0% 15.2%

Nifco 2,747 2,717 1.0 1.0 1.0 6.6 6.3 6.1 15.8% 4.4%

Nihon Flush 310 273 1.2 nmf nmf 7.4 nmf nmf nmf nmf

Ningbo Jifeng 739 650 2.1 1.8 1.6 10.6 9.2 8.0 19.7% 12.7%

Plastic Omnium 3,854 4,931 0.6 0.5 0.5 4.9 4.6 4.3 11.0% nmf

Polytec 222 376 0.5 0.5 0.5 5.5 4.7 4.3 11.1% 19.9%

Stabilus 1,171 1,380 1.3 1.3 1.2 6.5 6.6 6.2 19.1% nmf

Toyota Boshoku 2,509 2,298 0.2 0.2 0.2 2.6 2.7 2.5 6.4% 11.2%

TS Tech 1,931 981 0.3 0.3 0.3 2.1 2.1 2.1 11.9% 1.2%

Mean 3,315 3,631 0.9 0.8 0.8 6.3 5.6 5.1 13.4% 13.5%

Median 2,390 2,507 0.6 0.5 0.5 6.7 5.8 5.3 11.4% 10.2%

Trading Comparables


Tires $m $m H C F H C F % %

Bridgestone 30,311 30,610 0.9 0.9 0.9 5.5 5.3 5.0 17.0% 4.5%

Cooper 1,582 1,740 0.6 0.6 0.6 4.8 4.8 4.2 12.6% 46.8%

Goodyear 3,557 10,246 0.7 0.7 0.7 5.3 5.5 4.9 12.1% nmf

Hankook 3,753 4,853 0.8 0.8 0.8 4.4 4.5 4.2 17.8% 7.8%

Michelin 22,933 27,312 1.1 1.0 1.0 5.8 5.2 4.9 19.1% 14.5%

Nokian 4,354 4,292 2.4 2.3 2.2 8.2 8.1 7.6 28.4% nmf

Pirelli 6,065 11,310 1.9 1.8 1.7 12.0 7.4 6.8 24.8% 21.6%

Mean 10,365 12,909 1.2 1.2 1.1 6.5 5.8 5.4 18.8% 19.1%

Median 4,354 10,246 0.9 0.9 0.9 5.5 5.3 4.9 17.8% 14.5%


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Trading Comparables


Powertrain $m $m H C F H C F % %

BorgWarner 8,701 10,382 1.0 1.0 1.0 6.0 6.2 5.9 16.2% 1.3%

Brembo 3,906 4,378 1.5 1.4 1.3 8.4 7.4 6.9 19.2% 8.2%

Cummins 26,985 28,739 1.2 1.2 1.2 9.6 7.1 7.9 16.5% 6.2%

Delphi 1,759 3,206 0.7 0.7 0.7 4.3 5.0 4.6 13.7% nmf

ElringKlinger 395 1,331 0.7 0.7 0.6 7.4 6.4 5.6 10.5% 5.5%

Exedy 1,042 1,154 0.4 0.4 0.4 3.2 3.1 2.9 13.8% 9.7%

Garrett Motion 1,145 2,503 0.7 0.8 0.7 4.2 3.9 3.8 19.1% nmf

Haldex 271 366 0.7 0.6 0.6 8.3 5.7 6.3 11.1% 10.7%

Hota Industrial 885 1,096 4.7 5.0 4.3 18.6 18.8 15.9 26.4% 3.2%

JTEKT 4,296 5,863 0.4 0.4 0.4 4.8 4.8 4.5 8.7% 35.1%

Keihin 1,093 947 0.3 0.3 0.3 2.4 2.4 2.2 11.8% nmf

Knorr Bremse 17,872 19,064 2.5 2.4 2.3 14.4 12.5 11.9 19.2% 12.0%

Linamar 2,437 3,997 0.7 0.7 0.6 4.6 4.3 4.3 15.2% 0.4%

Mando 1,210 2,638 0.5 0.5 0.5 6.5 6.4 5.9 7.8% 23.8%

Musashi 869 1,574 0.7 0.7 0.6 5.2 4.9 4.6 13.6% 8.9%

Nexteer 3,121 2,866 0.7 0.7 0.7 4.6 4.4 4.1 16.3% nmf

SAF-HOLLAND 528 821 0.6 0.5 0.5 6.9 6.1 5.8 8.8% 13.1%

Schaeffler 1,175 4,665 0.3 0.3 0.3 1.9 2.0 1.8 14.4% 0.1%

SHW 141 193 0.4 nmf nmf 4.5 nmf nmf nmf nmf

Toyota Industries 18,175 27,228 1.3 1.3 1.2 9.3 10.8 10.2 12.0% 5.4%

WABCO 6,794 7,094 1.9 1.8 1.8 11.0 11.5 11.0 16.1% 3.2%

Weifu High-Tech 2,626 1,679 1.3 1.3 1.3 11.8 5.5 5.2 23.7% 3.6%

Mean 4,792 5,990 1.1 1.1 1.0 7.2 6.6 6.2 14.9% 8.8%

Median 1,485 2,752 0.7 0.7 0.7 6.2 5.7 5.6 14.4% 6.2%



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Trading Comparables

Automotive Aftermarket Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

$m $m H C F H C F % %

D'Ieteren 2,574 890 0.2 0.2 0.2 6.3 4.9 4.8 3.4% 110.2%

Dorman 2,870 2,829 2.9 2.7 2.5 14.2 13.2 12.3 20.3% 10.7%

Fox Factory 3,149 3,195 5.2 4.4 4.0 29.6 22.0 19.6 19.9% 16.2%

Genuine Parts 15,129 18,216 1.0 0.9 0.9 13.1 12.1 11.6 7.8% 5.8%

Halfords 575 681 0.5 0.5 0.5 5.2 5.4 5.2 8.5% 7.6%

Horizon Global 90 524 0.6 0.6 0.6 72.3 9.5 7.5 6.3% nmf

LKQ 8,355 12,326 1.0 1.0 0.9 9.9 9.2 8.5 10.5% 31.1%

Motorcar Parts 403 573 1.2 nmf nmf 22.8 6.8 nmf nmf nmf

Standard Motor 1,014 1,116 1.0 1.0 0.9 8.6 10.6 9.7 9.0% 33.3%

Thule 2,473 2,735 3.9 3.5 3.3 20.5 17.9 15.8 19.8% 14.6%

Mean 3,663 4,309 1.8 1.6 1.5 20.3 11.2 10.6 11.7% 28.7%

Median 2,524 1,926 1.0 1.0 0.9 13.7 10.0 9.7 9.0% 15.4%

Trading Comparables

Automotive Sales Market Cap EV EV/Revenue EV/EBITDA EBITDA margin EPS growth

$m $m H C F H C F % %

AutoNation 3,741 10,162 0.5 0.5 0.5 11.5 10.6 11.2 4.6% nmf

BCA 2,416 2,875 0.7 0.8 0.7 13.4 12.1 11.2 6.5% 33.3%

CarMax 14,361 28,774 1.6 1.5 1.4 36.9 20.1 19.2 7.3% 8.9%

Carvana 3,063 4,047 2.1 1.1 0.7 nmf nmf nmf -4.9% nmf

Group 1 1,516 4,439 0.4 0.4 0.4 9.1 10.9 10.7 3.5% 14.2%

Inchcape 3,224 3,186 0.3 0.3 0.3 5.5 5.7 5.5 4.7% 133.3%

Lithia 2,655 6,317 0.5 0.5 0.5 12.2 13.2 12.8 3.9% 3.0%

Lookers 246 381 0.1 0.1 0.1 3.2 3.0 3.0 2.0% 3.4%

Pendragon 293 455 0.1 0.1 0.1 2.7 4.2 3.0 1.9% nmf

Penske 3,957 12,521 0.5 0.5 0.5 16.3 15.4 15.0 3.6% 1.0%

Sonic 725 3,170 0.3 0.3 0.3 10.5 10.7 10.8 3.0% 30.5%

Vertu 188 189 0.1 0.0 0.0 3.8 3.7 3.5 1.3% 4.2%

Mean 3,032 6,376 0.6 0.5 0.5 11.4 10.0 9.6 3.1% 25.8%

Median 2,535 3,617 0.4 0.4 0.4 10.5 10.7 10.8 3.6% 8.9%


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Notes

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