TRANSPORTATION & LOGISTICS · Group. Through its two iconic brands, Maaco and Meineke, Driven Brands is one of the largest franchise platforms in the automotive aftermarket services

www.harriswilliams.com

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised andregulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

TRANSPORTATION & LOGISTICS

0

AUTOMOTIVE AFTERMARKET SECTOR UPDATE │ APRIL 2015

PAGE |

www.harriswilliams.com

1

CONTENTS

M&A TRANSACTIONS

PUBLIC MARKETS OVERVIEW

STOCK PRICE PERFORMANCE

OUR GROUP

CONTACTS

UNITED STATES

Frank MountcastleManaging [email protected]+1 (804) 915-0124

Jason BassManaging [email protected]+1 (804) 915-0132

Joe ConnerManaging Director [email protected]+1 (804) 915-0151

Jershon JonesDirector [email protected]+1 (804) 932-1356

Jeff BurkettDirector [email protected] +1 (804) 932-1334

Jeff KiddVice President [email protected] +1 (804) 915-0178

EUROPE

Jeffery PerkinsManaging Director [email protected]+49 (0) 69 3650638 00



MICHELIN ACQUIRES STAKE IN ONLINE TIRE RETAILER

Groupe Michelin is acquiring a 40 percent stake in France’s leading online tireretailer Allopneus. The tiremaker is investing roughly €60 million for its minority sharein the Internet company. Working with Allopneus, Michelin will expand its onlinerange and extend its commercial presence, the tiremaker said. Allopneus currentlyholds 7 percent of the French tire market share and sold roughly 3 million tires in2014. The company was established in 2004, and employs roughly 200 people.Michelin’s acquisition of shares in Allopneus SAS is subject to validation from theFrench Competition Authority.

AftermarketNews

AAA RELEASES AMERICAN DRIVING SURVEY

The first year data show that all drivers 16 and older drive, on average, 29.2 milesper day or 10,658 miles a year. Men reported driving more miles than women;Caucasians reported driving more miles than respondents of other races; Hispanicrespondents reported driving the least. Teenagers and drivers ages 75+ also drivesignificantly fewer miles on average. About 50% of all miles driven are in a car, andanother 40% in an SUV or pickup truck.

AAA

WARREN BUFFETT ADDS TO AUTOMOTIVE BETS WITH AXALTA INVESTMENT

Berkshire Hathaway's Warren Buffett is increasing his investment in the recoveringU.S. automotive sector, this time by taking a $560 million stake in Axalta CoatingSystems , a 145-year old seller of coatings for cars, SUV’s and commercial vehicles.The investment comes as Axalta’s private equity owner The Carlyle Group beginsexiting an extremely successful buyout investment. Carlyle bought Axalta fromDuPont for $4.9 billion in 2013 as the chemical and agriculture giant’s CEO EllenKullman sought to pare down its operations and focus on high margin businesses.

Forbes

HARRIS WILLIAMS & CO. DEAL SPOTLIGHT

Harris Williams & Co. advised Driven Brands, a portfoliocompany of Harvest Partners, on its sale to Roark CapitalGroup. Through its two iconic brands, Maaco and Meineke,Driven Brands is one of the largest franchise platforms in theautomotive aftermarket services sector.

Press Release

Driven Brands

Harris Williams & Co. advised Dent Wizard, a portfoliocompany of H.IG. Capital, on its sale to Gridiron Capital.Dent Wizard is the leading provider of cosmetic automotivereconditioning services in North America.

Press Release

Dent Wizard

WHAT WE’RE READING

a portfolio company of

has been acquired by



http://www.harriswilliams.com/

mailto:[email protected]







http://www.aftermarketnews.com/michelin-acquires-stake-in-online-tire-retailer/

https://www.aaafoundation.org/sites/default/files/2015AmericanDrivingSurveyRerport.pdf

http://www.forbes.com/sites/antoinegara/2015/04/07/warren-buffett-adds-to-automotive-bets-with-560-million-axalta-investment/

http://www.harriswilliams.com/news/harris-williams-co-advises-driven-brands-inc-its-sale-roark-capital-group

http://www.harriswilliams.com/news/harris-williams-co-advises-dent-wizard-its-sale-gridiron-capital

PAGE |

Pending Car Brite, Inc. and Eagle One

Industries, Inc. and Pyroil and

Valvoline Maintenance

Prov ider of automotive lubricants and chemicals for consumer, and

commercial and industrial applications.

Highlander Partners, L.P.

Pending Delphi Automotive PLC, Thermal

Business

Manufacturer of automotive heating and cooling components. MAHLE Industrial Thermal

Systems GmbH & Co. KG

Pending Anixter Inc., Fasteners Segment Global distributor and manufacturer of highly-engineered fasteners. American Industrial Partners

Pending Uni-Select USA, Inc. and

Beck/Arnley Worldparts, Inc.

(excludes FinishMaster business)

Uni-Select USA: automotive parts distributor.

Beck/Arnley Worldparts: premium OE parts distributor.

Icahn Enterprises, L.P.

Pending TI Automotive LTD Car-parts manufacturer. Bain Capital

4/17/2015 Driven Brands, Inc. Largest franchise platform in the automotive aftermarket serv ices

sector, prov iding paint & collision and repair & maintenance serv ices.

Roark Capital Group

4/7/2015 Dent Wizard International

Corporation

National prov ider of automotive reconditioning serv ices in

North America.

Gridiron Capital, LLC

4/10/2015 Armstrong Tyres Pty Ltd. Manufacturer of tires and wheels. Trelleborg Wheel Systems

Australia Pty Ltd

3/31/2015 Tribar Manufacturing LLC Developer, manufacturer, and supplier of injection molded parts for the

industrial and automotive industries.

HCI Equity Partners

3/31/2015 Revocoat SAS Developer, manufacturer, and supplier of sealants, dampers, and

anticorrosion products for the automotive industry.

PPG Industries Inc.

3/25/2015 Superwinch, LLC Designer and producer of winches. Kinderhook Industries;

Kinderhook Capital Fund IV

3/24/2015 American Tire Distributors

Holdings, Inc.

Independent supplier of tires to the North American replacement tire

market.

Ares Management, L.P.

3/16/2015 Visteon Corp., Global Interiors

Business

Manufacturer of interior products such as instrument panels, door

panels, consoles, and pillars for vehicle manufacturers.

Reydel Automotive Minority

Holdings B.V.

3/16/2015 Phillips & Temro Industries, Inc. Designer and manufacturer of automotive heating products, systems,

and controls as well as cooling and silencing products.

Harbour Group

3/10/2015 Van Tuyl Group Operator of automotive dealerships and franchises throughout the

Southeast and Midwest.

Berkshire Hathaway Inc.

3/2/2015 Maval Manufacturing Inc. Manufacturer of power steering pumps, power steering gear boxes,

and electric steering columns and gears.

Remy International, Inc.

2/12/2015 ATDynamics, Inc. Designer, manufacturer, and supplier of clean technology products

engineered to reduce fuel consumption and carbon emissions in the

transportation industry.

Stemco LP

1/30/2015 ZF Lenksysteme GmbH

(nka:Robert Bosch Automotive

Steering GmbH)

Developer, producer, and seller of steering systems for passenger cars

and commercial vehicles worldwide.

Robert Bosch GmbH

M&A TRANSACTIONS

2

RECENT M&A TRANSACTIONS1,2



PAGE |

PUBLIC MARKETS OVERVIEW

3


TEV / LTM EBITDA TEV / 2015E EBITDA

AVERAGE REVENUE GROWTH (2011 – 2014) AVERAGE REVENUE GROWTH (2014 – 2016P)

AVERAGE EBITDA GROWTH (2011 – 2014) AVERAGE EBITDA GROWTH (2014 – 2016P)


7.7x

10.2x

12.0x

13.5x

Suppliers

Vehicle Manufacturers

Distributors and Retailers

Dealerships and Services

Providers

7.1x

10.2x

11.2x

12.3x

Suppliers




Providers

2.8%

3.3%

7.6%

14.2%


Suppliers



Providers

2.2%

2.2%

3.4%

10.6%



Suppliers


Providers

4.6%

7.3%

7.5%

13.5%



Suppliers


Providers

3.6%

5.6%

7.9%

9.8%



Suppliers


Providers

PAGE |

(30%)

(20%)

(10%)

0%

10%

20%

30%

40%

4/20/14 7/20/14 10/20/14 1/20/15 4/20/15

Suppliers Distributors and Retailers

Dealerships and Service Providers Vehicle Manufacturers

S&P 500 Index

STOCK PRICE PERFORMANCE

4


(Indexed to April 20, 2014)

TRAILING TWELVE MONTHS

MEDIAN % CHANGE (1 MONTH) MEDIAN % CHANGE (12 MONTH)


(2.2%)

(0.0%)

1.3%

2.1%

Vehicle

Manufacturers

Distributors and

Retailers

Dealerships and

Service Providers

Suppliers

(5.2%)

(3.0%)

14.5%

23.2%

Vehicle

Manufacturers

Suppliers

Distributors and

Retailers

Dealerships and

Service Providers

PAGE |

OUR GROUP

Harris Williams & Co. is a leading advisor to the transportation and logistics M&A market. Our Transportation & LogisticsGroup has experience across a broad range of sectors, including third-party logistics, rail and rail services, marinetransportation, transportation equipment, niche transportation, automotive and heavy duty vehicle, and airport andaviation services.



RECENTLY CLOSED T&L TRANSACTIONS

DEEP EXPERIENCE ACROSS T&L SECTORS

MARINE TRANSPORTATION

NICHE TRANSPORTATION

TRANSPORTATION EQUIPMENT

RAIL & RAIL SERVICES

AUTOMOTIVE & HEAVY DUTY

VEHICLE



THIRD-PARTY LOGISTICS

AIRPORT & AVIATION SERVICES

5







a portfolio company ofa portfolio company of

has been acquired byhas been acquired by




and

in partnership with

and

RCL Services Group

has sold

tohas been acquired by






http://www.portlogisticsgroup.com/

http://www.portlogisticsgroup.com/

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

http://corpjetfin.live.subhub.com/custom/Hawker_Beechcraft_black_h_logo.jpg

Energy & Power

IndustrialsHealthcare & Life Sciences

Transportation & Logistics

Aerospace, Defense & Government

Services

Business Services

Building Products & Materials

Technology, Media & Telecom

Specialty Distribution

Consumer

PAGE |

HARRIS WILLIAMS & CO. OFFICE LOCATIONS

UNITED STATES EUROPE

BostonTwo International Place24th FloorBoston, Massachusetts 02110Phone: +1 (617) 482-7501Fax: +1 (617) 482-7503

Cleveland1900 East 9th Street20th FloorCleveland, Ohio 44114Phone: +1 (216) 689-2400Fax: +1 (216) 689-2401

Minneapolis222 South 9th StreetSuite 3350Minneapolis, Minnesota 55402Phone: +1 (612) 359-2700Fax: +1 (612) 359-2701

Philadelphia1600 Market Street21st FloorPhiladelphia, Pennsylvania 19103Phone: +1 (267) 675-5900Fax: +1 (267) 675-5901

Richmond (U.S. Headquarters)1001 Haxall Point9th FloorRichmond, Virginia 23219Phone: +1 (804) 648-0072Fax: +1 (804) 648-0073

San Francisco575 Market Street31st FloorSan Francisco, California 94105, USAPhone: +1 (415) 288-4260Fax: +1 (415) 288-4269

FrankfurtBockenheimer Landstrasse 33-3560325 FrankfurtGermanyPhone: +49 069 3650638 00Fax: +49 069 3650638 01

London63 Brook StreetLondon W1K 4HS, EnglandPhone: +44 (0) 20 7518 8900Fax: +44 (0) 20 7526 2187

NETWORK OFFICES

Beijing

Hong Kong

Mumbai

New Delhi

Shanghai

Transportation & Logistics

OUR FIRM



Harris Williams & Co. has a broad range of industry expertise, which creates powerful opportunities.Our clients benefit from our deep-sector experience, integrated industry intelligence andcollaboration across the firm, and our commitment to learning what makes them unique. For moreinformation, visit our website at www.harriswilliams.com/industries.

6

PAGE |

PUBLIC COMPARABLES

7



Suppliers

BorgWarner Inc. $14,399 $60.72 1.0% (3.0%) $67.49 90.0% 11.4x 9.5x 10.3x 10.3x 9.5x

Cooper Tire & Rubber Co. 2,281 41.79 5.2% 67.8% 43.94 95.1% 4.5x 4.8x 4.4x 4.4x 5.3x

Dorman Products, Inc. 1,735 50.04 5.8% (13.5%) 59.99 83.4% 14.1x 9.7x 11.3x 11.3x 10.1x

Federal-Mogul Holdings Corporation 4,713 13.32 0.6% (25.0%) 21.12 63.1% 7.7x 7.3x 7.7x 7.7x 7.4x

The Goodyear Tire & Rubber Company 12,396 27.23 8.1% 0.9% 28.98 94.0% 5.3x 5.0x 5.5x 5.5x 5.1x

Modine Manufacturing Company 674 12.45 (6.7%) (13.1%) 17.51 71.1% 6.4x 5.7x 5.9x 5.6x 5.7x

Motorcar Parts of America, Inc. 500 27.56 5.0% 2.0% 36.43 75.7% 13.1x 12.8x 13.2x 13.9x 7.6x

Remy International, Inc. 937 22.11 (3.5%) (12.7%) 26.89 82.2% 7.6x 6.4x 7.4x 7.4x 6.9x

Standard Motor Products Inc. 1,010 41.03 2.1% 10.4% 45.80 89.6% 8.0x 8.1x 8.9x 8.9x 8.2x

Tenneco Inc. 4,353 55.72 (1.5%) (6.9%) 69.22 80.5% 6.3x 5.6x 5.9x 5.9x 5.4x

Visteon Corporation 5,666 102.32 5.3% 18.2% 109.41 93.5% 7.1x 7.2x 8.8x 8.8x NM

Median 2.1% (3.0%) 83.4% 7.6x 7.2x 7.7x 7.7x 7.1x


Advance Auto Parts Inc. $12,513 $149.80 0.4% 24.0% $165.00 90.8% 8.8x 10.4x 10.1x 10.1x 9.4x

AutoZone, Inc. 25,972 683.43 2.4% 32.4% 704.45 97.0% 10.4x 9.9x 12.1x 12.4x 11.7x

Genuine Parts Company 14,677 91.67 (4.0%) 5.0% 109.00 84.1% 11.2x 10.9x 11.5x 11.5x 10.6x

LKQ Corp. 9,425 25.22 4.1% (7.9%) 29.84 84.5% 14.1x 12.8x 11.9x 11.9x 10.8x

O'Reilly Automotive Inc. 22,937 214.05 (0.4%) 46.2% 222.94 96.0% 12.6x 11.8x 15.6x 15.6x 14.0x

Pep Boys - Manny, Moe & Jack 779 8.60 (12.5%) (16.2%) 11.66 73.8% 7.8x 7.9x 10.0x 7.2x 7.8x

U.S. Auto Parts Network, Inc. 87 2.12 (5.4%) (27.9%) 4.09 51.8% 17.7x 17.0x 16.2x 16.2x 13.4x

Uni-Select Inc. 1,161 36.35 5.3% 33.3% 37.30 97.5% 11.9x 10.7x 12.6x 12.6x 12.8x

Median (0.0%) 14.5% 87.7% 11.6x 10.8x 12.0x 12.2x 11.2x

Dealerships and Service Providers

Asbury Automotive Group, Inc. $3,980 $85.33 7.4% 55.1% $87.25 97.8% 10.7x 10.9x 13.4x 13.4x 12.5x

AutoNation Inc. 12,368 63.52 0.2% 15.5% 65.67 96.7% 13.3x 12.2x 13.5x 13.5x 12.7x

Boyd Group Income Fund 808 44.18 13.6% 30.7% 45.24 97.7% 15.4x 14.4x 13.6x 13.6x 11.5x

CarMax Inc. 23,830 70.61 7.6% 58.9% 75.40 93.6% 18.0x 18.4x NM NM NM

Copart, Inc. 4,773 37.00 (1.0%) 1.4% 38.50 96.1% 14.6x 10.4x 11.4x 12.1x 11.5x

Group 1 Automotive Inc. 4,486 83.66 1.3% 30.5% 93.23 89.7% 11.2x 11.6x 11.6x 11.6x 12.0x

KAR Auction Services, Inc. 7,733 37.28 0.2% 23.2% 39.52 94.3% 14.1x 12.4x 13.5x 13.5x 11.9x

Lithia Motors Inc. 4,452 101.35 4.8% 48.3% 102.10 99.3% 12.5x 11.9x 16.7x 16.7x 13.1x

Monro Muffler Brake Inc. 2,254 62.39 (5.7%) 15.6% 67.93 91.8% 14.9x 12.6x 15.9x 17.7x 15.8x

Penske Automotive Group, Inc. 8,763 51.87 1.9% 20.5% 53.70 96.6% 14.6x 12.9x 15.3x 15.3x 13.7x

Sonic Automotive Inc. 3,276 24.04 (4.0%) 3.6% 27.87 86.3% 10.9x 10.7x 10.9x 10.9x 11.4x

Median 1.3% 23.2% 96.1% 14.1x 12.2x 13.5x 13.5x 12.3x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Apr-14 Oct-14 Current 2014 2015E

Automotive Aftermarket

TEV / LTM EBITDA as of

PAGE |

PUBLIC COMPARABLES

8




Bayerische Motoren Werke Aktiengesellschaft $149,586 $118.84 (4.0%) (7.3%) $133.29 89.2% 11.0x 9.8x 10.2x 10.2x 9.9x

Daimler AG 185,280 91.39 (4.8%) (1.7%) 103.52 88.3% 8.0x 7.8x 8.5x 8.5x 10.1x

Ford Motor Co. 160,482 15.76 (3.5%) (1.5%) 18.12 87.0% 13.7x 14.1x 14.3x 14.3x 15.0x

General Motors Company 81,412 36.64 (5.2%) 7.8% 39.00 94.0% 6.3x 8.4x 9.0x 9.0x 5.3x

Harley-Davidson, Inc. 17,660 60.60 (0.9%) (9.1%) 74.13 81.7% 13.9x 11.8x 12.1x 12.1x 11.3x

Navistar International Corporation 6,741 28.94 2.3% (14.9%) 40.17 72.0% NM NM NM NM 10.2x

Oshkosh Corporation 4,586 48.72 2.5% (14.5%) 58.21 83.7% 8.1x 6.5x 7.8x 7.4x 7.2x

PACCAR Inc. 27,602 62.77 0.3% (4.0%) 71.15 88.2% 13.4x 11.3x 11.3x 11.3x 10.7x

Toyota Motor Corporation 349,676 69.69 (0.8%) 28.3% 73.77 94.5% 8.9x 8.7x 10.7x 10.2x 11.2x

Volkswagen AG 205,373 253.22 (4.0%) (6.4%) 282.80 89.5% 8.3x 7.5x 8.3x 8.3x 7.0x

Median (2.2%) (5.2%) 88.3% 8.9x 8.7x 10.2x 10.2x 10.2x

Stock Performance

Stock Price Change from 52-Week TEV / EBITDA EBITDA

($ in millions except per share data) TEV Current Prior Month Prior Year High % of High Apr-14 Oct-14 Current 2014 2015E


TEV / LTM EBITDA as of

PAGE |

PUBLIC COMPARABLES

9



Suppliers

BorgWarner Inc. $7,115 $7,183 $7,437 $8,305 $8,632 $9,670 5.3% 7.9% $1,073 $1,126 $1,224 $1,398 $1,504 $1,718 9.2% 10.8%

Cooper Tire & Rubber Co. 3,908 4,201 3,439 3,425 3,083 3,156 (4.3%) (4.0%) 286 629 483 518 438 453 21.8% (6.5%)

Dorman Products, Inc. 513 570 664 751 828 918 13.5% 10.5% 95 112 138 153 170 196 17.2% 13.0%

Federal-Mogul Holdings Corporation 6,719 6,444 6,786 7,317 8,270 8,706 2.9% 9.1% 622 439 565 611 643 769 (0.6%) 12.2%

The Goodyear Tire & Rubber Company 22,767 20,992 19,540 18,138 17,598 17,877 (7.3%) (0.7%) 1,893 1,819 2,105 2,251 2,446 2,659 5.9% 8.7%

Modine Manufacturing Company 1,448 1,577 1,376 1,478 1,516 1,515 0.7% 1.3% 103 128 98 120 119 125 5.2% 2.3%

Motorcar Parts of America, Inc. 161 179 213 259 317 381 17.1% 21.4% 32 32 39 36 66 85 4.4% NM

Remy International, Inc. 1,195 1,140 1,140 1,182 1,151 1,241 (0.4%) 2.4% 165 145 127 126 135 157 (8.6%) 11.5%

Standard Motor Products Inc. 875 949 984 980 1,029 1,081 3.9% 5.0% 79 88 106 113 123 134 12.8% 8.8%

Tenneco Inc. 7,205 7,363 7,964 8,420 8,438 9,061 5.3% 3.7% 597 638 695 736 820 894 7.2% 10.2%

Visteon Corporation 7,532 5,715 6,371 7,509 3,280 3,413 (0.1%) (32.6%) 541 479 560 646 244 284 6.1% NM

Total $59,438 $56,313 $55,914 $57,764 $54,142 $57,017 3.3% 2.2% $5,486 $5,636 $6,140 $6,709 $6,709 $7,473 7.3% 7.9%


Advance Auto Parts Inc. $6,170 $6,205 $6,494 $9,844 $9,976 $10,311 16.8% 2.3% $841 $847 $901 $1,243 $1,350 $1,464 13.9% 8.5%

AutoZone, Inc. 8,073 8,604 9,148 9,475 10,166 10,667 5.5% 6.1% 1,691 1,841 2,002 2,089 2,226 2,360 7.3% 6.3%

Genuine Parts Company 12,459 13,014 14,078 15,342 15,940 16,555 7.2% 3.9% 998 1,114 1,209 1,273 1,368 1,438 8.4% 6.3%

LKQ Corp. 3,270 4,123 5,063 6,740 7,368 7,930 27.3% 8.5% 424 493 624 790 857 969 23.1% 10.8%

O'Reilly Automotive Inc. 5,789 6,182 6,649 7,216 7,732 8,232 7.6% 6.8% 1,030 1,159 1,291 1,468 1,634 1,760 12.6% 9.5%

Pep Boys - Manny, Moe & Jack 1,989 2,064 2,091 2,067 2,087 2,137 1.3% 1.7% 155 147 118 109 100 113 (11.3%) 1.9%

U.S. Auto Parts Network, Inc. 327 304 255 284 305 331 (4.7%) 8.1% 13 8 5 5 7 10 NM NM

Uni-Select Inc. 1,781 1,798 1,788 1,784 1,426 1,144 0.1% (19.9%) 97 79 82 92 94 85 (1.8%) (4.0%)

Total $39,857 $42,293 $45,565 $52,751 $55,000 $57,306 7.6% 2.2% $5,250 $5,687 $6,232 $7,069 $7,636 $8,199 7.5% 5.6%

Dealerships and Service Providers

Asbury Automotive Group, Inc. $4,004 $4,475 $5,128 $5,639 $6,429 $6,812 12.1% 9.9% $171 $210 $259 $297 $323 $344 20.2% 7.6%

AutoNation Inc. 13,305 15,020 16,674 18,180 20,473 21,545 11.0% 8.9% 652 737 827 915 979 1,038 11.9% 6.5%

Boyd Group Income Fund 351 436 544 715 872 930 26.7% 14.1% 23 28 39 59 71 80 NM 16.6%

CarMax Inc. 8,976 10,004 10,963 12,574 14,269 15,846 11.9% 12.3% 719 783 828 932 1,077 1,197 9.0% 13.3%

Copart, Inc. 872 924 1,046 1,163 1,180 1,245 10.1% 3.4% 312 338 335 393 412 444 8.1% 6.3%

Group 1 Automotive Inc. 5,884 7,216 8,607 9,571 10,614 11,272 17.6% 8.5% 225 271 322 386 365 397 19.6% 1.5%

KAR Auction Services, Inc. 1,886 1,963 2,173 2,365 2,530 2,676 7.8% 6.4% 462 471 495 574 650 706 7.5% 10.8%

Lithia Motors Inc. 2,549 3,204 3,867 5,200 7,684 8,375 26.8% 26.9% 129 166 210 266 340 371 27.4% 18.2%

Monro Muffler Brake Inc. 637 687 732 831 901 1,001 9.3% 9.7% 101 115 103 127 144 170 8.0% 15.5%

Penske Automotive Group, Inc. 10,769 12,584 14,074 16,741 19,251 20,380 15.8% 10.3% 342 417 493 574 642 687 18.9% 9.4%

Sonic Automotive Inc. 7,312 8,115 8,571 8,897 9,579 9,989 6.8% 6.0% 263 288 300 300 288 311 4.4% 1.8%

Total $56,545 $64,628 $72,380 $81,877 $93,781 $100,072 14.2% 10.6% $3,398 $3,824 $4,210 $4,823 $5,291 $5,744 13.5% 9.8%

Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


PAGE |

PUBLIC COMPARABLES

10




Bayerische Motoren Werke Aktiengesellschaft $66,659 $75,546 $77,374 $96,471 $91,741 $95,713 13.1% (0.4%) $13,439 $13,956 $14,458 $15,627 $14,905 $15,647 5.2% 0.1%

Daimler AG 122,715 132,833 142,477 137,845 150,854 158,308 4.0% 7.2% 18,444 19,337 20,974 21,896 18,036 19,806 5.9% (4.9%)

Ford Motor Co. 128,168 126,567 139,369 135,782 143,550 149,979 1.9% 5.1% 12,163 11,464 12,370 11,211 10,659 12,196 (2.7%) 4.3%

General Motors Company 148,866 150,295 152,092 151,092 154,617 157,832 0.5% 2.2% 12,648 10,914 12,356 9,084 15,612 16,701 (10.4%) NM

Harley-Davidson, Inc. 4,662 4,943 5,258 5,568 5,849 6,136 6.1% 5.0% 1,078 1,198 1,317 1,460 1,565 1,652 10.6% 6.4%

Navistar International Corporation 13,441 12,527 10,617 10,653 11,310 12,050 (7.5%) 6.4% 958 (468) (375) 128 652 895 NM NM

Oshkosh Corporation 7,539 8,141 7,665 6,808 6,415 6,434 (3.3%) (2.8%) 668 511 639 622 638 660 (2.3%) 3.0%

PACCAR Inc. 15,326 15,952 15,949 17,793 19,455 20,126 5.1% 6.4% 1,807 1,927 2,047 2,446 2,577 2,805 10.6% 7.1%

Toyota Motor Corporation 215,055 212,497 222,030 236,160 225,419 236,865 3.2% 0.1% 19,838 17,273 26,711 34,414 30,169 34,690 20.2% 0.4%

Volkswagen AG 184,595 227,862 241,001 214,898 226,667 236,893 5.2% 5.0% 21,684 25,594 26,303 24,820 28,619 31,292 4.6% 12.3%

Total $907,026 $967,163 $1,013,833 $1,013,070 $1,035,877 $1,080,337 2.8% 3.4% $102,726 $101,705 $116,799 $121,708 $123,433 $136,344 4.6% 3.6%

Revenue Revenue Growth EBITDA EBITDA Growth

($ in millions) 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P 2011 2012 2013 2014 2015E 2016P '11-14 '14-16P


PAGE |


SOURCES


1. Capital IQ.

2. MergerMarket.

Harris Williams & Co. (www.harriswilliams.com) is a preeminent middle market investment bank focused on the advisory needs of clients worldwide. The firm has deep industry knowledge, global transaction expertise, and an unwavering commitment to excellence. Harris Williams & Co. provides sell-side and acquisition advisory, restructuring advisory, board advisory, private placements, and capital markets advisory services.

Investment banking services are provided by Harris Williams LLC, a registered broker-dealer and member of FINRA and SIPC, and Harris Williams & Co. Ltd, which is authorised and regulated by the Financial Conduct Authority. Harris Williams & Co. is a trade name under which Harris Williams LLC and Harris Williams & Co. Ltd conduct business.

THIS REPORT MAY CONTAIN REFERENCES TO REGISTERED TRADEMARKS, SERVICE MARKS AND COPYRIGHTS OWNED BY THIRD-PARTY INFORMATION PROVIDERS. NONE OF THE THIRD-PARTY INFORMATION PROVIDERS IS ENDORSING THE OFFERING OF, AND SHALL NOT IN ANY WAY BE DEEMED AN ISSUER OR UNDERWRITER OF, THE SECURITIES, FINANCIAL INSTRUMENTS OR OTHER INVESTMENTS DISCUSSED IN THIS REPORT, AND SHALL NOT HAVE ANY LIABILITY OR RESPONSIBILITY FOR ANY STATEMENTS MADE IN THE REPORT OR FOR ANY FINANCIAL STATEMENTS, FINANCIAL PROJECTIONS OR OTHER FINANCIAL INFORMATION CONTAINED OR ATTACHED AS AN EXHIBIT TO THE REPORT. FOR MORE INFORMATION ABOUT THE MATERIALS PROVIDED BY SUCH THIRD PARTIES, PLEASE CONTACT US AT THE ABOVE ADDRESSES OR NUMBERS.

The information and views contained in this report were prepared by Harris Williams & Co. (“Harris Williams”). It is not a research report, as such term is defined by applicable law and regulations, and is provided for informational purposes only. It is not to be construed as an offer to buy or sell or a solicitation of an offer to buy or sell any financial instruments or to participate in any particular trading strategy. The information contained herein is believed by Harris Williams to be reliable, but Harris Williams makes no representation as to the accuracy or completeness of such information. Harris Williams and/or its affiliates may be market makers or specialists in, act as advisers or lenders to, have positions in and effect transactions in securities of companies mentioned herein and also may provide, may have provided, or may seek to provide investment banking services for those companies. In addition, Harris Williams and/or its affiliates or their respective officers, directors and employees may hold long or short positions in the securities, options thereon or other related financial products of companies discussed herein. Opinions, estimates and projections in this report constitute Harris Williams’ judgment and are subject to change without notice. The financial instruments discussed in this report may not be suitable for all investors, and investors must make their own investment decisions using their own independent advisors as they believe necessary and based upon their specific financial situations and investment objectives. Also, past performance is not necessarily indicative of future results. No part of this material may be copied or duplicated in any form or by any means, or redistributed, without Harris Williams’ prior written consent.

Copyright© 2015 Harris Williams & Co., all rights reserved.

DISCLOSURES

11


http://www.harriswilliams.com/

Documents

TRANSPORTATION & LOGISTICS · Group. Through its two iconic brands, Maaco and Meineke, Driven Brands is one of the largest franchise platforms in the automotive aftermarket services