November 2017

MARCH 2018 Industry snapshot

AUTOMOTIVE

www.clairfield.com

INSIDE

• Market highlights

• Key players

• Deal volumes

• About Clairfield

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AUTOMOTIVE SNAPSHOT MARCH 2018

The automotive sector is currently undergoing massive transformations, on of the most important of which is the replacement of combustion engines with hybrid, electric powertrains.

Lightweight and electric vehicles that reduce emissions remain the strongest trends, but are accompanied by other interesting tendencies including big data and autonomous driving. Digitization or big data is a growing market and is estimated to reach USD 600 billion by 2030. Autonomous driving is a moon-shot project and is becoming an important purchase criteria. The number of new registered hybrid and electric vehicles is expected to increase by more than 75% in the three global markets in Europe, North America, and China.

Along with economic factors including the large cash reserves on balance sheets and private equity dry powder, technological developments and digitization are key drivers of the increase in M&A activity over the last twelve months.

Brexit is an ongoing topic for the automotive sector. The UK produced about 1.7 million cars in 2016 and the European export market is crucial as 57% of exports go to Europe. Expenditures will change in capex, R&D, and talent acquisition.

The market is growing. Further cost reduction while retaining a high quality is the challenge for all automotive companies in the future.

HIGHLIGHTS

DIRK FREILAND SECTOR HEAD

NUMBER OF AUTOMOTIVE OEMS AND SUPPLIERS IN EUROPE BY COUNTRY REVENUES OF AUTOMOTIVE COMPANIES BY COUNTRY IN EUR BILLION

685

746

1,072

1,125

1,361

1,600

2,041

2,253

2,754

2,834

Portugal

Netherlands

Sweden

Czech Republic

Poland

Spain

France

Italy

United Kingdom

Germany

21.3

22.6

29.0

33.2

36.1

57.5

58.5

78.9

101.5

419.9

Slowakei

Hungary

Poland

Sweden

Czech Republic

Spain

Italy

United Kingdom

France

Germany

Slovakia

Source: Statistisches Amt der Europäischen Union (Eurostat)

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1.98x

0.95x

1.28x

0.70x

1.01x

0.61x

0.90x

0.94x

11.87%

5.79%

12.43%

6.94%

8.30%

7.52%

12.75%

7.57%

16.66x

16.38x

10.31x

9.91x

12.18x

8.06x

7.10x

12.40x

SELECTED TRANSACTIONS (EUR MILLION)

DATE TARGET COUNTRY BUYER COUNTRY EV EV/ SALES

2/2017 US ES 99 .71x

5/2016 Century Plastics US ES 174 1.06x

5/2016 ES ES 186 1.39x

4/2016 DE DE 21 .39x

LISTED PLAYERS

Aptiv PLC United Kingdom

Bertrandt AG Germany

BorgWarner Inc. United States

Durr AG Germany

ElringKlinger AG Germany

Magna International Inc. Canada

Schaeffler AG Germany

Valeo SA France

CAD 50 billion in total revenue with about 35% stemming from Europe 335 production sites in 28 countries Involved in 115 deals

EUR 17 billion in total revenue of which Europe accounts for 51% 300 production sites in 35 countries Involved in 42 deals

EUR 3 billion in revenue of which Europe accounts for 54%. 98 production sites in 17 countries Involved in 66 deals

EUR 5.5 billion in revenue 100 production sites in 30 countries Involved in 36 deals

EV/SALES EV/EBIT EBIT%

Median: .98x

Median: 12.29x

Median: 7.94%

KEY MARKET CONSOLIDATORS

AUTOMOTIVE SNAPSHOT MARCH 2018

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IMR Automotive S.p.A., a global manufacturer and supplier of exterior parts for the automotive and truck industry, acquired 81.25% of Industrialesud S.p.A. (IS), an Italian company active in the same industry. The residual shares were acquired by Simest S.p.A., an Italian government institution. After the transaction, with an enterprise value in the range of EUR 80 million, the Italian group expects to reach a consolidated turnover in the range of EUR 370 million. Clairfield International advised IMR.

AUTOMOTIVE DEAL SPOTLIGHT

acquired

Italy

AUTO EXTERIOR PARTS

SELECTED RECENT AUTOMOTIVE TRANSACTIONS

CLAIRFIELD IS A LEADING ADVISOR FOR MIDMARKET INDUSTRIAL TRANSACTIONS

Germany

AUTO PARTS

together with management acquired 100 % of the shares of

Germany/China

AIRPORT VEHICLES

was sold to

Poland/Germany

SPARE CAR PARTS

was sold to

Italy/US

AUTOMOTIVE EQUIPMENT

was sold to

Finland

AUTO BODY REPAIR

was sold to

AUTOMOTIVE SNAPSHOT MARCH 2018

Source: Thomson Reuters

Financial advisor 2017 Rank # of Deals

Ernst & Young LLP 6 27

Lazard 6 27

BDO 8 24

KBS Corporate Sales Ltd 8 24

Lincoln International 10 23

Oaklins (FKA M&A Intl Inc) 11 22

Clairfield International 12 20

Global M&A 13 17

Baker Tilly International 14 15

Morgan Stanley 15 14

NOVEMBER 2017 EMEA SECTOR FOCUS: INDUSTRIALS

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CLAIRFIELD – A GLOBAL PARTNERSHIP OF M&A SPECIALISTS

Clairfield International provides advisory services on middle-market transactions for large companies, private investors and private equity, public sector clients, and family businesses. Headquartered in Europe with locations in every major region worldwide, Clairfield offers clients access to local corporate businesses, investors, and key decision makers, combined with a deep understanding of local regulations and cultures. Clairfield ranks as one of the top independent M&A advisors in the annual worldwide, European, US, Latin American, and Asian Pacific league tables by Thomson Reuters. DISCLAIMER: No part of this report may be reproduced without the written permission of Clairfield International. The information herein has been obtained from sources that we believe to be reliable, but we do not guarantee its accuracy or completeness. Much of the information contained in this report is subject to variation due to changes in market conditions, legislation or regulatory matters and Clairfield International does not undertake to notify any recipient of the report of changes to the information contained herein. This report is not to be construed as an offer to sell or the solicitation of an offer to buy any security in any jurisdiction Additional supporting information is available upon request Please contact: Press office Clairfield International Tel: +41 22 518 0242 press@clairfield com

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80% OF OUR WORK IS CROSSBORDER

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400+ PROFESSIONALS

Contact Dirk F. Freiland Managing partner freiland@de.clairfield.com T: +49 711 6200790

www.clairfield.com