February 20, 2012

The Motor Weekly Index: 131.19

3-Month Price Performance
EQUITY
INDEX RETURNS

140.0
125.0

1 Week

3 Months

S&P 500

1.38%

11.98%

NA Autos

3.70%

20.27%

95.0

EUR Autos

3.20%

26.42%

80.0

ASIA Autos

2.27%

3.73%

Heavy Duty

2.83%

25.39%

*Represents market-weighted index

*Source: Capital IQ

126.42
125.39
120.27
111.98

110.0

65.0
50.0
Nov 2011

103.73
S&P 500
NA Autos
EUR Autos
ASIA Autos
Heavy Duty
Dec 2011

Jan 2012

Feb 2012

LTM Trading Multiples (EV / LTM EBITDA)

NA Autos
EUR Autos
ASIA Autos
Heavy Duty
9.4x

12.0x
TRADING MULTIPLES

10.0x
2-17-12

1 Year

NA Autos

7.9x

(1.33x)

EUR Autos

5.7x

(1.57x)

ASIA Autos

6.9x

0.64x

Heavy Duty

9.4x

(1.79x)

*Multiples use LTM EBITDA

*Source: CapitalIQ

8.0x

7.9x
6.9x

6.0x
4.0x
Feb 2011

News Highlights
2/17/2012 USA (Bloomberg) Visteon Said to Near Sale of
Lighting Unit to Varroc Group
2/17/2012 USA (Bloomberg) UAW Bonuses on GM Profit May
Lift Economy
2/16/2012 USA (Bloomberg) GM Earns Record Net Income
While Fixing Opel Will Take Longer

5.7x

Jun 2011

Oct 2011

Feb 2012

Contact Information
Justin Mirro
Managing Director
Group Head, Automotive
RBC Capital Markets
justin.mirro@rbccm.com

Three World Financial Center

200 Vesey Street, 10th Floor
New York, NY 10281
T: 212.863.4814
M: 646.382.5153
F: 212.266.4063

If you would like to be added to the weekly distribution, please contact:

Ashley Kate Molloy: T: 212.863.4822 E: ashley.molloy@rbccm.com

News Highlights

2/17/2012 USA (Bloomberg) Visteon Corp., the auto-parts maker shopping two of its four units, is in talks
with Indias Varroc Group about a sale of its lighting unit, three people familiar with the sales process said. A
deal may come as early as the end of the month, two of the people said, and the discussions could break
down. The unit, Visteons smallest, may fetch $75 million to $100 million, the people said. Its net worth is
$150 million, so Visteon would have to take a noncash writedown related to the sale, said the people, who
declined to be identified because the talks are private. The negotiations are part of managements plan for
Visteon, which exited a 16-month bankruptcy in 2010, to pare lower-margin revenue in interiors and lighting to
focus on faster-growing operations in Asia, five people familiar with the sales process said in October. Varroc
is an Aurangabad, India-based supplier of parts for passenger and commercial vehicles and motorcycles. Its
customers include Honda Motor Co., Yamaha Motor Co., Fiat SpA, General Motors Co., Caterpillar Inc. and
Visteon, according to its website. Visteons lighting unit, which had $456 million in consolidated revenue in
2010, is the sixth-largest in a $9.5 billion market. About 81 percent of the revenue comes from North America
and Europe, the company said in a July presentation. The units gross margin, which measures gross profit as
a percentage of revenue, is 2.6 percent, according to the presentation.

2/17/2012 USA (Bloomberg) Mike Green says he already knows how hes going to use a $7,000 profitsharing check from General Motors Co.: Hell help his son buy a new car, throw him a graduation party and
sock some money away in the bank. A lot of people are going to catch up on stuff, said Green, president of
UAW Local 652 in Lansing, Michigan, where GM builds Cadillacs. People havent really had a raise since
2005. Its kind of nice we get to reap some of the rewards now. The rebound in carmaker profits is putting
money into the pockets of U.S. workers after years of belt-tightening. GM yesterday reported a record $9.19
billion in net income for 2011, which will mean profit-sharing bonuses of as much as $7,000 for 47,500 eligible
UAW members. Thats an all-time high for GM, and up from an average of $4,300 for the companys U.S.
union workers last year. The payouts, scheduled for March 2, come on top of similar bonuses at Ford Motor
Co. and Chrysler Group LLC. The money may help lift the economies of states with unionized auto factories
such as Michigan, Ohio and Kentucky. This is a day that none of us thought wed see, said Harley Shaiken,
labor professor at University of California at Berkeley. Given what UAW workers have been through, if there
is a time to buy something, it is now. The return of bonuses will help consumers shake off fears from the
Great Recession and boost spending, said Donald Grimes, a senior research specialist at the University of
Michigan who studies labor and the economy. Savings rates peaked in December 2009 and have now fallen
back to 2004 levels, he said.

2/16/2012 USA (Bloomberg) General Motors Co. earned $9.19 billion last year, the largest annual profit in
its 103-year- history, while saying it may take months to craft a plan to stop European losses.Fourth-quarter
net income attributable to stockholders slid 48 percent to $725 million, the lowest in two years. GM, which
regained the global auto sales lead last year, had earned more than $2 billion in each of the three previous
quarters. Profit in the fourth quarter fell 25 percent to 39 cents a share, trailing the 41-cent average estimate
of 17 analysts surveyed by Bloomberg. Overall we posted a solid performance for the year and showed
steady progress toward a sustained, long-term strong financial performance, Chief Executive Officer Dan
Akerson told analysts today. Obviously, we still have a lot of work to do in some areas and were taking the
necessary corrective actions to get the ball over the goal line. GM North America earnings before interest
and taxes more than tripled for the year to $7.19 billion on improved U.S. sales, the Detroit-based company
said today in a statement. The automakers Europe business, including the Opel brand, lost $747 million for
the year. While thats better than Europes restated $1.95 billion loss in 2010, its not break-even as GM had
planned until November. GMs results in Europe certainly dampen the positive results in the U.S. but you
have to still say they had a really good year, Rebecca Lindland, an industry analyst with IHS Automotive,
said before the results were released. Before a government-backed bankruptcy in 2009, they were making
record losses, so theyve made a tremendous amount of progress.

Recent News

Recent News

Automotive Markets

Automotive Markets
Annual Light Vehicle Sales
(Units in millions)

70.0
60.0
50.0
40.0
30.0

12.7

13.9

15.3

16.5

17.2

18.1

17.6

17.7

18.4

19.6

19.8

18.1

20.2

19.7

21.0

20.0

20.0
10.0

29.6

23.6

17.8

17.9

17.1

16.8

16.6

16.9

16.9

16.5

16.1

13.2

10.4

11.6

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

0.0
U.S.

Europe

Asia

US S.A.A.R.
(Units in millions)

20.0
15.0

14.1

10.0

7.3
6.9

5.0
0.0
Jan-06

Jan-07

Jan-08

Jan-09

Total Car

Jan-10

Total Light Truck

Jan-11

Jan-12

Total Light Vehicles

Monthly Light Vehicle Sales

(Units in millions)

North America
2010
2011
2012

1.60
1.40

Europe

1.47
1.36

2.00
1.60

1.00

1.20

1.56

May

Sep

Dec

Source: Ward's Automotive Group

3.60
2.76

2.80

2010
2011
2012
2.56

1.51
2.00
1.20

0.80
Jan

2010
2011
2012

2.40

1.20

0.80

Asia

Jan

May

Sep

Dec

Jan

May

Sep

Dec

The Motor Weekly Index Summary

131.19
M-Index: 131.66 S-Index: 130.72

The Motor Weekly Index is the average of two sub-indexes Manufacturers Index (MIndex) and Suppliers Index (S-Index). Manufacturers Index is a market weighted
average of global companies representing different original equipment manufacturers.
The Suppliers Index is a market weighted average of global companies representing
different components of the automotive industry including suppliers and aftermarket
companies.

The Motor Weekly Index

Indexed as of January 2006
160
140
131.19
120
109.05
100
80
60
40
Jan-06

Sep-06

May-07

Jan-08

Sep-08

May-09

S&P 500

Manufacturers Index (M-Index)

Jan-10

May-11

Feb-12

MW Index

Suppliers Index (S-Index)

Last Three Months

Last Three Months

175

175

150

150

131.66

125

Sep-10

130.72

125

109.05
100

75

75

50
Jul-11

Sep-11
S&P 500

109.05

100

Dec-11

Feb-12

Vehicle Manufacturers (Global)

50
Jul-11

Sep-11
S&P 500

Dec-11
Suppliers (Global)

Feb-12

The Motor Weekly Index

The Motor Weekly Index

Corporate Rating(1)

Historical Yields
Credit Rating
S&P
Moody's 2

Company

Aisin Seiki Co. Ltd.

Asahi Glass Co. Ltd.
BMW Group
Caterpillar Inc.
Cummins Inc.
Deere & Company
Denso Corp.
Eaton Corporation
Honda Motor Co., Ltd.
PACCAR Inc.
Scania AB
Toyota Motor Corporation
Volkswagen AG

A+
A
AA
A
A
AAAA+
A+
AAAA-

A1
A2
A3
A2
A2
A2
Aa3
A3
A1
A1
A3
Aa3
A3

Autoliv, Inc.
AutoNation Inc.
BorgWarner Inc.
Bridgestone Corp.
Daimler AG
Hyundai Mobis
Hyundai Motor Co.
Ingersoll-Rand Plc
Johnson Controls Inc.
Kia Motors Corp.
Magna International, Inc.
Michelin SCA
Nissan Motor Co. Ltd.
Volvo AB

BBB+
BBBBBB
BBB+
BBB+
BBB
BBB
BBB+
BBB+
BBB
BBB+
BBB
BBB+
BBB

Baa1
Baa3
Baa2
Baa1
Baa1
Baa2
Baa2
Baa1
Baa1
Baa2
Baa1
Baa2
Baa1
Baa2

American Axle & Manufacturing

CNH Global NV
Dana Holding Corporation
Delphi Automotive PLC
Douglas Dynamics, Inc.
Fiat S.p.A.
Ford Motor Co.
General Motors Company
GKN plc
Goodyear Tire & Rubber Co.
Harman International Industries Inc.
Lear Corp.
LKQ Corp.
Navistar International Corporation
Oshkosh Corporation
PSA Peugeot Citroen
Renault SA
Tata Motors Ltd.
Tenneco Inc.

BBBB+
BBBB
BBBB
BB+
BB+
BB+
BBBB+
BB
BB+
BBBB
BB+
BB+
BBBB

Ba3
Ba1
Ba3
Ba2
Ba3
Ba2
Ba1
Ba1
Ba1
Ba3
Ba1
Ba2
Ba1
Ba3
Ba2
Ba1
Ba1
Ba3
Ba2

Continental AG
Federal-Mogul Corp.
KAR Auction Services, Inc.
Meritor, Inc.
Mitsubishi Motors Corp.
Penske Automotive Group, Inc.
Visteon Corp.

B+
B+
B+
B
B+
B+
B+

B1
B1
B1
B2
B1
B1
B1

Loan Markets

Loan Markets

High Yield Bonds YTW

10%
8%

7.3%

6%

5.6%
4.3%

4%
2%
0%
Feb-11
B

0.51%
Jun-11
BB

Oct-11
BBB

Feb-12
3M LIBOR

Term Loan Spreads

900
700

B
BB
BBB
657

500

455

300
100
Feb-11

228
Jun-11

Oct-11

Feb-12

New Industrial Loan Issues

No loans were issued during the week of February 10th.

Source: CapitalIQ, Thomson Reuters LPC LoanConnector, Standard & Poor's Leveraged Commentary & Data
(1) This is not an exhaustive list of companies additional companies rated B or lower
(2) Moodys equivalent

Class 5 Sales
5,448

5,600

CL5 RV

4,548

4,600

4,417
4,129

4,043

3,600

3,702

3,593

4,132

4,128

3,809

3,752

CL5 Bus

3,394

CL5 Truck

2,600
Feb

Mar

Apr

May

Jun

18,582

21,061

Jul

Aug

Sep

21,035

21,683

Oct

Nov

Dec

Jan

27,772

25,200

Class 6 8 Sales
32,000
24,000

27,089
18,561

16,000

17,481

24,117

17,950

13,826

CL8 Total

8,000
7,375

9,847

8,656

9,917

9,604

8,546

10,137

9,145

9,455

7,465

8,379

Nov

Dec

10,000

CL6-7 Total

0
Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Jan

Market Stats

U.S. Market Share(1)

ATA Truck Tonnage Index

125

15%

Other 25%

120
10%

115
110

Freightliner
28%

5%

105
0%

100
95

-5%

90

-10%

85
-15%
80
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
ATA Seasonally Adjusted Truck Tonnage Index

Peterbilt
8%

Year-Over-Year (%)

Source: ACT, Thomson Equity Research, Ward's Automotive Group

(1) Class 5-8

Kenworth
12%

International
26%

Heavy Duty Vehicles

Heavy Duty Vehicles

($ in millions, except price per share)

Company

Ticker

Price
as of
2/17/12

% of
52-Wk
High

Market
Cap

Total
Enterprise
Value

LTM
EBITDA
Margin

Total
Debt /
EBITDA

NTM
P/E

TEV /
EBITDA
2011E
2012E

Vehicle Manufacturers
Ford Motor Co.(1)

$ 12.75

71.3%

$ 48,451

$ 39,397

9.4%

1.1x

8.7x

3.5x

3.3x

General Motors Company

GM

27.34

71.9%

42,780

35,727

8.0%

1.0x

7.4x

2.7x

2.6x

TSLA

34.97

96.0%

3,647

3,647

NM

NM

NM

NM

NM

8.7%

1.0x

8.1x

3.1x

2.9x

Tesla Motors, Inc.

Mean
Suppliers
Johnson Controls Inc.

2.5%
7.2%
12.4%

$ 35.16

81.9%

$ 23,924

$ 30,097

6.6%

2.2x

12.0x

10.3x

8.7x

Delphi Automotive PLC

DLPH

31.29

99.3%

10,271

11,494

13.4%

1.0x

8.9x

5.7x

5.2x

BorgWarner Inc.

BWA

81.21

98.0%

8,864

9,898

15.2%

1.2x

14.9x

9.2x

7.9x

5.4%

MG

44.58

74.9%

10,402

9,240

7.3%

0.1x

10.3x

4.7x

4.4x

5.0%

Sensata Technologies Holding NV

ST

31.83

80.3%

5,604

7,348

27.0%

3.7x

14.9x

14.3x

12.4x

Goodyear Tire & Rubber Co.

GT

13.42

71.3%

3,282

7,086

8.1%

2.8x

7.1x

3.6x

3.5x

Magna International, Inc.

JCI

Weekly
Stock Price
Performance

TRW Automotive Holdings Corp.

TRW

48.56

76.8%

6,009

6,499

10.7%

0.9x

7.9x

3.8x

3.8x

Federal-Mogul Corp.

FDML

17.49

64.3%

1,730

3,785

9.6%

4.4x

9.2x

5.3x

5.1x

6.7%
4.2%

0.4%
(3.3% )
17.4%
1.2%

Lear Corp.

LEA

46.13

80.9%

4,634

3,575

6.6%

0.7x

9.3x

3.5x

3.6x

Tenneco Inc.

TEN

39.74

84.9%

2,396

3,461

8.5%

2.0x

11.9x

5.6x

5.1x

7.9%

Visteon Corp.

VC

55.43

72.2%

2,936

3,425

6.9%

1.1x

13.2x

5.3x

5.1x

7.8%

Gentex Corp.

GNTX

26.55

80.5%

3,809

3,390

26.9%

0.0x

20.6x

11.9x

10.6x

Dana Holding Corporation

DAN

16.45

85.0%

2,421

3,279

9.1%

1.4x

9.1x

4.4x

3.9x

Harman International Industries Inc.

HAR

51.11

97.3%

3,587

3,205

8.9%

1.0x

15.3x

9.1x

6.7x

American Axle & Manufacturing

AXL

12.85

82.9%

964

1,980

14.7%

3.1x

6.2x

5.2x

4.9x

Linamar Corp.

LNR

18.50

79.4%

1,197

1,790

12.1%

2.0x

10.1x

5.3x

4.3x

Martinrea International Inc.

Tower International, Inc.
Modine Manufacturing Company

MRE

9.78

90.6%

811

1,109

7.5%

1.9x

9.2x

6.8x

4.5x

TOWR

13.73

72.2%

270

776

8.6%

2.8x

25.0x

3.4x

3.4x

MOD

10.05

56.0%

470

608

7.4%

1.4x

10.3x

5.1x

4.3x

2.7%

3.3%
7.8%
2.5%
6.3%
1.3%
4.7%
6.7%
(0.1% )

Measurement Specialties Inc.

MEAS

33.41

85.7%

504

583

17.0%

2.0x

16.9x

10.5x

9.4x

1.6%

Amerigon Inc.

ARGN

15.50

85.3%

359

546

13.1%

2.9x

26.0x

11.3x

7.3x

1.3%

Stoneridge Inc.

SRI

9.93

57.7%

260

496

5.1%

6.8x

8.3x

9.5x

4.8x

Superior Industries International, Inc.

SUP

19.11

72.5%

519

367

10.0%

0.0x

15.4x

5.6x

4.8x

STRT

24.47

64.3%

81

72

6.7%

0.1x

13.9x

3.9x

3.7x

11.1%

1.9x

12.7x

6.8x

5.7x

Strattec Security Corp.

Mean

(3.6% )
2.3%
4.2%

Aftermarket
Genuine Parts Company

GPC

$ 65.58

98.7%

$ 10,208

$ 10,183

8.0%

0.5x

17.1x

10.2x

9.2x

1.1%

LKQ Corp.

LKQX

32.29

96.2%

4,733

5,328

13.3%

1.6x

18.2x

12.6x

10.1x

1.4%

Snap-on Inc.

SNA

62.16

96.6%

3,630

4,449

17.9%

1.9x

12.7x

9.1x

8.7x

TriMas Corporation

TRS

23.06

85.1%

798

1,263

15.9%

2.8x

13.4x

7.3x

7.2x

(2.0% )
(1.1% )

Uni-Select Inc.
Dorman Products, Inc.
Standard Motor Products Inc.

UNS

26.65

90.1%

577

1,022

6.4%

4.1x

8.9x

8.9x

8.1x

DORM

45.81

95.3%

827

781

17.8%

0.0x

14.1x

8.3x

7.3x

(1.1% )

SMP

24.87

99.6%

563

590

8.9%

0.5x

14.9x

7.6x

6.8x

(1.4% )

Motorcar Parts of America Inc.

MPAA

8.03

50.6%

100

183

16.1%

2.7x

9.0x

5.4x

4.3x

LoJack Corp.

LOJN

3.25

44.2%

58

14

5.9%

1.2x

NA

NM

NM

Mean

12.2%

1.7x

13.5x

8.7x

7.7x

Dealerships
CarMax Inc.
AutoNation Inc.

1.9%

KMX
AN

$ 30.18

81.5%

$ 6,838

$ 10,949

7.2%

6.2x

16.1x

14.8x

14.8x

35.00

84.2%

4,617

7,549

4.7%

4.6x

15.8x

11.6x

11.1x

Penske Automotive Group, Inc.

PAG

24.03

96.1%

2,169

4,692

2.8%

7.3x

12.2x

14.1x

13.1x

KAR Auction Services, Inc.

KAR

16.13

76.8%

2,198

4,375

24.4%

5.3x

13.5x

9.1x

8.5x

16.5%
(3.6% )

0.9%
(3.1% )
1.4%
(1.6% )

Group 1 Automotive Inc.

GPI

54.80

95.0%

1,181

2,463

3.7%

5.8x

12.9x

11.7x

10.8x

0.8%

Sonic Automotive Inc.

SAH

17.30

95.5%

912

2,252

3.3%

5.4x

11.5x

8.8x

7.9x

0.0%

Asbury Automotive Group, Inc.

ABG

25.92

95.3%

824

1,612

3.3%

5.7x

12.1x

9.8x

8.8x

Lithia Motors Inc.

LAD

25.61

95.0%

664

1,278

4.4%

5.5x

12.6x

10.7x

9.8x

Mean

6.7%

5.7x

13.3x

11.3x

10.6x

Mean

10.4%

2.5x

12.8x

7.8x

6.9x

Avg.

Median

8.6%

2.0x

12.4x

7.9x

6.8x

2.5%

Source: Capital IQ and Thomson Financial

Note: Price, Market Cap and Total Enterprise Value are converted into USD
(1) Valuation excludes financial division

5.0%
(0.2% )

North American Autos

North American Autos Equity

($ in millions, except price per share)

Company
Vehicle Manufacturers
Daimler AG

Ticker

Price
as of
2/17/12

% of
52-Wk
High

Market
Cap

Total
Enterprise
Value

LTM
EBITDA
Margin

Total
Debt /
EBITDA

NTM
P/E

TEV /
EBITDA
2011E
2012E

DAI

$ 62.82

84.5%

$ 66,975

$ 139,854

10.1%

5.5x

9.2x

8.1x

8.4x

Volkswagen AG

VOW

169.99

93.2%

82,036

134,513

10.2%

4.2x

6.1x

5.3x

5.5x

BMW Group

BMW

94.55

97.4%

60,181

130,863

16.0%

6.0x

9.9x

8.0x

8.7x

Renault SA

RNO

52.32

84.3%

14,182

43,525

7.1%

10.6x

5.4x

8.3x

8.9x

UG

19.10

43.2%

4,332

36,643

6.9%

8.1x

7.5x

6.6x

6.9x

6.24

60.9%

7,613

22,984

8.1%

5.6x

6.7x

2.9x

2.3x

9.7%

6.7x

7.5x

6.5x

6.8x

PSA Peugeot Citroen

Fiat S.p.A.

Mean
Suppliers
Continental AG
Michelin SCA
Pirelli & C. SpA

CON

Weekly
Stock Price
Performance
2.8%
1.5%
2.7%
10.1%
(6.3%)
3.0%

$ 89.79

88.5%

$ 17,959

$ 28,001

14.4%

2.1x

9.0x

5.1x

4.7x

ML

71.89

79.8%

12,941

16,047

14.6%

1.3x

7.6x

4.3x

3.9x

PC

10.73 100.0%

5,180

6,823

14.6%

2.2x

10.4x

6.3x

5.2x

5,479

6,331

11.0%

1.1x

9.7x

6.2x

5.3x

3.1%
3.5%

GKN plc

GKN

3.53

Autoliv, Inc.

89.6%

4.7%
0.9%
8.7%

ALV

67.69

80.7%

6,045

5,987

14.1%

0.6x

10.6x

5.1x

5.1x

Valeo SA

FR

52.15

79.5%

4,134

4,831

10.2%

1.7x

7.3x

3.1x

3.0x

3.3%

Faurecia S.A.

EO

26.54

64.2%

2,928

4,689

5.8%

2.0x

6.7x

3.4x

3.3x

3.1%

ElringKlinger AG

ZIL2

32.51

96.2%

2,060

2,357

21.7%

1.2x

14.6x

7.5x

7.2x

Compagnie Plastic Omnium

POM

28.83

81.1%

1,393

2,297

10.1%

2.1x

6.7x

3.8x

4.0x

Leoni AG

LEO

49.97

88.6%

1,632

2,073

9.5%

1.8x

7.9x

4.5x

4.2x

Brembo SpA

BRE

11.45

83.0%

748

1,189

11.5%

3.0x

10.9x

6.1x

5.3x

SO

2.81

72.5%

322

774

10.6%

3.6x

6.3x

4.9x

4.1x

KOA

0.36

38.5%

144

585

7.4%

5.3x

NM

5.1x

5.5x

Sogefi SpA
Kongsberg Automotive

4.6%
2.9%
5.3%
1.9%
(3.3%)
(12.5%)

Saf-Holland SA

SFQ

6.99

55.1%

288

521

8.8%

2.7x

7.2x

5.8x

5.6x

Grammer AG

GMM

22.15

80.9%

248

400

6.3%

2.0x

7.3x

4.5x

4.3x

Polytec Holding AG

PYT

9.26

80.7%

207

222

8.7%

0.7x

5.2x

2.6x

3.2x

Montupet SA

MON

7.74

68.6%

83

210

10.5%

2.4x

NA

NM

NM

Mean

11.2%

2.1x

8.5x

4.9x

4.6x

Mean

10.8%

3.3x

8.2x

5.3x

5.2x

Avg.

Median

10.2%

2.2x

7.5x

5.1x

5.2x

2.5%

Source: Capital IQ and Thomson Financial

Note: Price, Market Cap and Total Enterprise Value are converted into USD

2.2%
9.1%
2.2%
3.4%

European Autos

European Autos Equity

($ in millions, except price per share)

Company

Ticker

Price
as of
2/17/12

% of
52-Wk
High

Market
Cap

Total
Enterprise
Value

LTM
EBITDA
Margin

Total
Debt /
EBITDA

NTM
P/E

TEV /
EBITDA
2011E
2012E

Vehicle Manufacturers
Toyota Motor Corporation

7203

$ 41.43

84.0%

$ 129,920

$ 247,793

7.1%

9.4x

18.4x

14.6x

12.1x

Honda Motor Co., Ltd.

7267

37.21

79.2%

67,059

102,462

6.9%

7.2x

12.6x

11.6x

9.0x

Nissan Motor Co. Ltd.

Weekly
Stock Price
Performance
5.1%
4.3%

7201

10.00

89.3%

41,839

83,807

14.1%

3.0x

8.9x

5.9x

6.1x

2.6%

Hyundai Motor Co.

A005380

198.24

86.8%

41,486

68,742

11.2%

3.2x

7.1x

12.7x

12.4x

2.7%

Kia Motors Corp.

A000270

64.01

85.1%

25,873

28,139

9.7%

1.1x

7.6x

11.5x

9.9x

489

1.97

89.9%

16,979

15,556

18.2%

1.0x

9.4x

5.6x

5.0x

500520

15.21

85.7%

8,933

12,232

16.8%

2.9x

15.3x

16.7x

14.4x

1211

3.21

56.0%

9,014

11,798

8.2%

4.8x

36.0x

16.6x

12.4x

Dongfeng Motor Group Co. Ltd.

Mahindra & Mahindra Ltd.
BYD Company Ltd.
Isuzu Motors Ltd.

7202

5.44

98.6%

9,211

11,018

9.1%

2.1x

9.8x

6.5x

5.6x

Suzuki Motor Corp.

7269

23.90

94.8%

13,408

10,363

8.7%

2.1x

15.4x

3.5x

3.3x

Daihatsu Motor Co. Ltd.

7262

19.41

94.9%

8,271

9,950

11.3%

1.0x

10.7x

4.6x

4.0x

Mazda Motor Corp.

7261

2.04

72.3%

3,617

9,813

1.3%

28.3x

NM

15.2x

11.5x

Mitsubishi Motors Corp.

7211

1.24

81.0%

6,845

8,016

7.2%

2.8x

20.8x

5.2x

4.7x

Yamaha Motor Co. Ltd.

7272

14.23

70.6%

4,967

6,764

7.5%

3.0x

18.9x

5.0x

5.2x

Geely Automobile Holdings Ltd.

175

0.40

67.8%

2,981

3,261

8.7%

2.7x

12.2x

7.3x

6.3x

000800

1.53

50.7%

2,484

2,468

4.2%

0.8x

9.3x

10.0x

4.5x

Mean

9.4%

4.7x

14.2x

9.5x

7.9x

Faw Car Co., Ltd.

Suppliers
Bridgestone Corp.

5108

$ 23.12

91.6%

$ 18,094

$ 24,285

12.0%

1.9x

8.9x

5.1x

4.3x

A012330

248.92

67.2%

23,747

24,189

11.9%

0.9x

7.9x

11.2x

9.7x

Denso Corp.

6902

32.73

82.3%

26,377

22,299

9.8%

1.9x

14.5x

4.9x

4.5x

Asahi Glass Co. Ltd.

5201

8.61

58.7%

9,958

14,942

22.8%

1.7x

10.1x

4.1x

4.3x

7259

35.08

84.8%

9,883

13,273

10.4%

1.6x

11.2x

4.5x

3.6x

A000240

39.12

88.0%

5,679

7,301

14.7%

2.9x

12.0x

12.9x

8.9x

Hyundai Mobis

Aisin Seiki Co. Ltd.

Hankook Tire Co. Ltd.

9.4%
1.6%
9.0%
(4.2%)
3.2%
3.8%
2.8%
9.4%
1.0%
2.4%
10.7%
5.6%

4.0%
(1.6%)
5.7%
3.7%
6.7%
(0.3%)

NSK Ltd.

6471

7.82

75.5%

4,227

6,563

11.2%

4.1x

10.9x

6.3x

6.0x

4.8%

JTEKT Corporation

6473

11.17

70.0%

3,821

5,300

8.3%

2.9x

11.8x

4.7x

4.5x

4.6%

4.34

69.5%

2,307

5,030

10.7%

4.4x

13.7x

6.7x

6.1x

HYUNDAI WIA Corp.

NTN Corp.

A011210

6472

124.46

78.4%

3,202

3,722

NM

NM

11.8x

12.5x

10.3x

0.1%
0.4%

2.4%

Mando Corporation

A060980

150.24

74.6%

2,734

3,072

9.1%

1.4x

10.4x

7.8x

6.3x

NHK Spring Co. Ltd.

5991

10.58

82.3%

2,477

2,737

10.5%

1.6x

10.6x

4.5x

4.3x

Toyota Boshoku Corporation

3116

11.83

66.1%

2,192

2,700

5.7%

3.2x

13.2x

3.4x

3.1x

5.8%

Koito Manufacturing Co. Ltd.

7276

17.30

91.1%

2,781

2,668

11.5%

0.5x

10.7x

3.8x

3.6x

5.1%

Stanley Electric Co. Ltd.

6923

16.71

87.7%

2,836

2,451

17.6%

0.4x

12.0x

4.1x

3.8x

Toyoda Gosei Co. Ltd.

7282

17.59

68.7%

2,277

2,388

12.3%

1.0x

13.4x

2.9x

2.8x

Takata Corporation

7312

25.23

73.7%

2,098

2,090

7.4%

2.4x

8.6x

4.9x

4.0x

Calsonic Kansei Corporation

7248

5.73

84.9%

1,534

2,018

5.3%

1.1x

5.3x

3.6x

3.4x

4.5%

5.6%
3.5%
6.1%
(3.6%)

Sanden Corp.

6444

3.43

64.9%

468

1,493

4.1%

11.1x

5.1x

NM

NM

Akebono Brake Industry Co. Ltd.

7238

5.34

78.8%

707

1,412

5.9%

7.6x

18.6x

NM

NM

3.5%
4.1%

Tokai Rika Co. Ltd.

6995

18.34

87.1%

1,656

1,138

7.6%

0.6x

11.6x

3.0x

2.9x

TS TECH Co., Ltd.

7313

19.16

85.9%

1,303

1,094

5.5%

0.3x

10.9x

4.1x

3.4x

Clarion Co. Ltd.

6796

2.08

83.8%

587

990

7.8%

3.0x

18.8x

6.4x

6.3x

Showa Corp.

7274

7.56

82.3%

574

831

7.9%

1.4x

25.6x

3.7x

3.5x

600303

1.15

62.0%

661

718

6.7%

3.3x

13.4x

8.9x

6.9x

SGA Group Co.

5.7%

6.2%
7.0%
7.8%
1.8%

F-Tech Inc.

7212

15.97

68.8%

191

686

8.6%

3.2x

NA

NM

NM

Alpine Electronics, Inc.

6816

13.21

86.2%

921

489

6.9%

0.4x

14.2x

2.7x

2.7x

China Automotive Systems Inc.

CAAS

5.02

33.4%

141

141

14.4%

0.7x

7.9x

3.1x

2.9x

SORL Auto Parts, Inc.

SORL

3.06

34.5%

59

91

15.6%

0.8x

3.4x

3.1x

2.7x

Mean

10.1%

2.4x

11.7x

5.5x

4.8x

Mean

9.8%

3.2x

12.5x

7.0x

6.0x

Avg.

Median

8.9%

3.1x

11.6x

5.1x

4.6x

3.3%

Source: Capital IQ and Thomson Financial

Note: Price, Market Cap and Total Enterprise Value are converted into USD

6.7%
1.5%
(3.5%)
(5.0%)

Asian Autos

Asian Autos Equity

($ in millions, except price per share)

Company
Commercial Vehicle Manufacturers
Daimler AG

Ticker

Price
as of
2/17/12

% of
52-Wk
High

Market
Cap

Total
Enterprise
Value

LTM
EBITDA
Margin

Total
Debt /
EBITDA

NTM
P/E

TEV /
EBITDA
2011E
2012E

Weekly
Stock Price
Performance

$ 62.82

84.5%

$ 66,975

$ 139,854

10.1%

5.5x

9.2x

8.1x

8.2x

2.8%

VOLV B

14.54

81.3%

29,523

43,554

10.9%

3.9x

12.3x

7.4x

7.5x

3.8%

PACCAR Inc.

PCAR

46.18

84.0%

16,477

21,538

13.2%

3.7x

13.9x

10.3x

9.9x

Scania AB

SCV B

19.29

78.7%

15,245

19,437

17.1%

2.6x

14.5x

8.5x

10.7x

MAN SE

MAN

111.76

84.6%

16,236

19,372

9.4%

2.0x

15.6x

7.1x

8.3x

Isuzu Motors Ltd.

7202

5.44

98.6%

9,211

11,018

9.1%

2.1x

9.8x

6.5x

5.6x

Navistar International Corporation

NAV

44.53

62.3%

3,077

6,800

6.5%

5.3x

8.3x

6.9x

5.6x

Mean

10.9%

3.6x

11.9x

7.8x

8.0x

Volvo AB

DAI

Off-Highway, Specialty Vehicles and Trailers

Caterpillar Inc.
CAT
Deere & Company

DE

$ 113.95

97.8%

$ 73,682

$ 106,964

16.1%

3.6x

12.0x

11.4x

8.9x

83.87

84.0%

33,832

57,378

16.4%

5.1x

10.4x

13.5x

11.6x

CNH Global NV

CNH

44.18

81.1%

10,534

22,413

13.6%

6.5x

10.4x

12.0x

10.7x

Oshkosh Corporation

OSK

24.48

61.0%

2,241

2,821

7.0%

1.9x

15.8x

5.0x

6.8x

6.7%
10.3%
4.0%
3.2%
(2.8%)

2.0%
(4.2%)
4.0%
(1.8%)
3.0%

Thor Industries Inc.

THO

33.71

86.2%

1,849

1,641

6.1%

0.0x

14.3x

NM

7.8x

Wabash National Corp.

WNC

11.09

84.2%

760

810

3.0%

2.0x

12.4x

22.5x

10.5x

7.4%

Winnebago Industries Inc.

WGO

10.23

61.6%

298

227

2.6%

0.0x

24.4x

14.1x

13.1x

6.6%

Spartan Motors Inc.

SPAR

5.92

78.2%

199

172

4.2%

0.3x

24.2x

12.2x

7.1x

Mean

8.6%

2.4x

15.5x

13.0x

9.6x

Commercial Vehicle and Off-Highway Suppliers

Cummins Inc.
CMI
Eaton Corporation
Ingersoll-Rand Plc
WABCO Holdings Inc.
Dana Holding Corporation

ETN

$ 122.07

98.6%

$ 23,541

$ 22,805

13.5%

0.3x

11.8x

8.0x

7.0x

50.82

90.0%

16,984

19,696

13.7%

1.7x

11.5x

8.4x

7.8x

IR

40.92

78.2%

12,775

15,101

12.9%

1.9x

13.4x

7.8x

7.7x

WBC

61.71

82.3%

3,983

3,958

16.0%

0.2x

13.7x

8.2x

8.9x

DAN

16.45

85.0%

2,421

3,279

9.1%

1.4x

9.1x

4.4x

3.9x

Meritor, Inc.

MTOR

7.90

34.9%

748

1,609

5.6%

3.9x

5.7x

4.6x

4.2x

Accuride Corp.

ACW

9.07

57.7%

429

713

7.6%

4.4x

50.4x

8.3x

5.9x

Drew Industries Inc.

DW

29.68

98.4%

655

648

10.1%

0.0x

15.5x

8.3x

6.9x

Modine Manufacturing Company

MOD

10.05

56.0%

470

608

7.4%

1.4x

10.3x

5.1x

4.3x

Commercial Vehicle Group Inc.

CVGI

13.05

66.5%

368

530

7.5%

4.0x

10.4x

8.5x

6.9x

SRI

9.93

57.7%

260

496

5.1%

6.8x

8.3x

9.5x

4.8x

Fuel Systems Solutions, Inc.

FSYS

27.71

89.0%

555

471

7.0%

0.4x

35.4x

14.1x

9.7x

Douglas Dynamics, Inc.

PLOW

13.66

80.5%

301

446

22.7%

3.3x

18.3x

9.2x

8.4x

Stoneridge Inc.

(4.8%)

1.5%
(1.2%)
7.7%
5.7%
7.8%
4.4%
9.5%
11.8%
(0.1%)
6.1%
2.7%
14.7%
2.7%

Haldex AB

HLDX

6.41

37.2%

283

346

9.6%

1.2x

12.0x

1.6x

5.4x

Shiloh Industries Inc.

SHLO

9.78

70.2%

164

190

7.3%

0.7x

16.3x

4.5x

4.6x

Williams Controls Inc.

WMCO

11.06

88.5%

81

82

13.2%

0.3x

12.2x

NM

NM

Azure Dynamics Corp.

AZD

0.07

19.4%

51

56

NM

NM

NM

NM

NM

Mean

10.5%

2.0x

15.9x

7.4x

6.4x

Mean

10.0%

2.7x

14.4x

9.4x

8.0x

Avg.

Median

10.5%

2.4x

15.5x

7.8x

8.0x

3.5%

10 Source: Capital IQ and Thomson Financial

Note: Price, Market Cap and Total Enterprise Value are converted into USD

19.1%
1.1%
(0.1%)
(6.8%)

Heavy Duty Vehicles

Heavy Duty Vehicles Equity

Dedicated Auto Team

Automotive Investment Banking

Justin Mirro
Managing Director, Group Head
(212) 863-4814
justin.mirro@rbccm.com

Greg Lellouche
Director
(212) 863-4816
gregory.lellouche@rbccm.com

Daniel Huber
Associate
(212) 863-4824
daniel.huber@rbccm.com

Joseph Lok
Associate
(212) 618-5301
joseph.lok@rbccm.com

Dino Bilankov
Analyst
(212) 905-5927
dino.bilankov@rbccm.com

Ashley Molloy
Administrative Assistant
(212) 863-4822
ashley.molloy@rbccm.com

Automotive Corporate Banking

Mergers & Acquisitions

Leveraged Finance

Patrick Shields
Managing Director
(212) 428-2322
patrick.shields@rbccm.com

Vito Sperduto
Managing Director
(212) 428-6682
vito.sperduto@rbccm.com

Charles Smith
Managing Director
(212) 266-4044
charles.smith@rbccm.com

Meredith Majesty
Director
(212) 428-6427
meredith.majesty@rbccm.com

Doug Yablonski
Managing Director
(212) 558-0414
doug.yablonski@rbccm.com

Michael Barrish
Director
(212) 658-6104
michael.barrish@rbccm.com

Industrials & Diversified Services

Transportation

Senior Coverage

Kevin Smith
Managing Director
(212) 436-9088
kevin.j.smith@rbccm.com

Michael Coyne
Managing Director
(212) 618-3287
michael.coyne@rbccm.com

Stewart Burton
Vice Chairman
(416) 842-7536
stewart.burton@rbccm.com

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is the global brand name for the capital markets business of Royal Bank of Canada and its affiliates, including RBC Capital Markets, LLC (member FINRA, NYSE
and SIPC); RBC Dominion Securities Inc. (member IIROC and CIPF) and Royal Bank of Canada Europe Limited (authorized and regulated by FSA). Registered
trademark of Royal Bank of Canada. Used under license. Copyright 2011. All rights reserved.

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U.S. Automotive Team

U.S. Automotive Team