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AUTOMOTIVE INDUSTRY IN MEXICO 2021 IN MEXICO

During 2020, Mexico’s GDP contracted by 8.5%. For 2021, the International Monetary Fund (IMF) estimates it grow by 4.3%

The automotive sector represents approximately 4.0% of Mexico’s GDP and is responsible for 1.7 million direct and indirect jobs

Mexico accounts for 16.4% of the automotive industry’s value in North America

In 2019, automobiles had an average price increase of 5.0%

Automotive Manufacturing Industry in Mexico (US$ billion)

$70.0 66.9 64.1 62.1 59.1 59.8 $60.0 57.5

$50.0

$40.0

$30.0

$20.0

$10.0

$0.0 2019 2020 2021 2022 2023 2024

Automotive Industry Sources: IMF, Marketline, The Economist Seale & Associates 2021 Creative Solutions. Trusted Advice. AUTOMOTIVE PRODUCTION IN MEXICO

Motor vehicle production in Mexico

2.3 million 2017 1.8 million

2.5 million 2018 1.6 million

2.6 million 2019 1.4 million

2.1 million 2020 0.9 million

Trucks, tractors, and buses Automobiles

Company Shares for the Light Commercial Vehicles Market Total units sold (2020): 949,353

Suzuki, 2.7% Renault, 2.7%

Hyundai, 3.4% Ford, 3.9%

Chrysler, 4.6% 20.5%

Mazda, 4.9%

5.1% 15.8% 7.8%

8.1% Other, 10.5% 10.1%

Automotive Industry Sources: National Institute of Statistics and Geography Seale & Associates 2021 (INEGI) Creative Solutions. Trusted Advice. FOREIGN DIRECT INVESTMENT

Car and Truck Manufacturing Foreign Direct Investment (US$ billion)

$4,290.8 $3,880.4

$3,332.6

$2,707.0

$1,762.7

2016 2017 2018 2019 2020

Car Component Manufacturing Foreign Direct Investment (US$ billion)

$3,905.4

$3,117.2 $3,120.3 $2,728.1

$1,053.2

2016 2017 2018 2019 2020

Automotive Industry Sources: Ministry of Economy (SE) Seale & Associates 2021 Creative Solutions. Trusted Advice. FOREIGN TRADE

• Up until 2018, Mexico ranked third among automotive exporters, behind Germany and Japan.

• In the long run, automotive exports are expected to slow down as a result of the decrease in labor cost advantages brought about by the United States- Mexico-Canada Agreement (USMCA).

• The USMCA requires automotive manufacturers to increase the used proportion of car components from North America by 2025, to 75.0%.The current proportion is 62.5%.

• Additionally, 40.0 – 45.0% of used car components must be manufactured in plants that offer workers a minimum wage of US$16.0 per hour, which represents 3 – 5 times the current average wage offered by automotive manufacturers in Mexico.

• “The new USMCA rules will endorse our leadership worldwide and will let us remember we are the number one tractor exporter, fourth in heavy vehicles, and the sixth in heavy cargo vehicle manufacturing worldwide. We have to take advantage of the USMCA and other trade agreements,” Miguel Elizalde, Executive President of the National Association of Bus, Truck and Tractor Manufacturers (ANPACT, for its Spanish acronym).

Automotive Industry Sources: Ministry of Economy (SE), Modern Seale & Associates 2021 Machine Shop, The Economist Creative Solutions. Trusted Advice. FOREIGN TRADE

Automotive Sector Exports from Mexico (US$ billion) 2019

US$4.9B US$4.3B

US$85.9B

US$1.7B US$1.1B

Automotive Industry Sources: Ministry of Economy (SE) Seale & Associates 2021 Creative Solutions. Trusted Advice. GLOBAL INDUSTRY – COMPARABLE PUBLIC COMPANIES AUTOMOTIVE MANUFACTURING

Annual Average Last Update Market Enterprise Revenue EBITDA EV/EBITDA Feb. 28, 2021 Company Country Cap. Value US$MM Margin EV/ EV/ US$MM US$MM 2019 2020 EBITDA Revenue Bayerische Motoren Werke DEU $55,935 $168,143 $116,104 8.9% 11.8x 12.4x 14.1x 1.4x Aktiengesellschaft Daimler AG DEU $85,755 $232,866 $188,757 8.7% 14.1x 19.6x 12.5x 1.2x

Ford Motor Company USA $46,551 $178,918 $127,144 3.8% 13.6x 19.8x NR 1.4x Geely Automobile Holdings HKG $31,898 $29,729 $12,268 8.0% 7.3x 13.4x NR 2.4x Limited Company USA $73,962 $165,743 $122,485 11.1% 8.8x 13.4x 11.4x 1.4x

Honda Motor Co., Ltd. JPN $47,136 $94,257 $126,007 8.1% 6.7x 7.6x 7.9x 0.8x

Hyundai Motor Company KOR $44,180 $105,086 $88,105 4.9% 14.5x 16.0x 23.1x 1.2x

Isuzu Motors Limited JPN $7,704 $9,187 $18,118 9.3% 4.5x 4.5x 5.5x 0.5x

Kia Corporation KOR $28,217 $24,487 $50,128 6.1% 3.8x 3.4x 7.3x 0.5x Motors JPN $4,211 $4,408 $15,078 0.4% 3.4x 8.7x NR 0.3x Corporation Motor Co., Ltd. JPN $21,086 $76,082 $74,501 0.5% 10.4x NR NR 1.1x

Renault SA FRA $12,209 $64,643 $53,179 5.3% 7.7x 9.3x NR 1.2x

Subaru Corporation JPN $14,298 $7,144 $28,432 12.3% 3.7x 2.8x 2.1x 0.3x

Suzuki Motor Corporation JPN $20,938 $21,536 $29,435 10.7% 5.0x 6.0x 6.9x 0.8x

Toyota Motor Corporation JPN $206,396 $357,524 $257,977 13.2% 7.0x 8.1x 10.4x 1.4x

Volkswagen AG DEU $112,325 $311,483 $260,100 5.4% 8.3x 10.3x 16.6x 1.2x NR: Not Relevant Mean 8.2x 10.4x 10.7x 1.1x Median 7.7x 9.8x 10.5x 1.2x

Automotive Industry Sources: Capital IQ, S&P Market Intelligence Seale & Associates 2021 Creative Solutions. Trusted Advice. GLOBAL INDUSTRY – COMPARABLE PUBLIC COMPANIES CAR COMPONENTS

Annual Average Last Update Market Enterprise Revenue EBITDA EV/EBITDA Feb. 28, 2021 Company Country Cap. Value US$MM Margin EV/ EV/ US$MM US$MM 2019 2020 EBITDA Revenue Seiki Co., Ltd. JPN $9,161 $15,728 $33,111 9.4% 3.9x 5.4x 5.1x 0.5x

Aptiv PLC IRL $40,461 $42,336 $13,066 12.0% 11.2x 14.6x NR 3.2x

Autoliv, Inc. SWE $7,863 $9,251 $7,447 11.3% 7.1x 7.2x 10.3x 1.2x

BorgWarner Inc. USA $10,756 $13,408 $10,165 15.1% 5.7x 5.9x 8.4x 1.3x

Brembo S.p.A. ITA $4,221 $4,869 $2,598 15.6% 7.3x 7.8x 10.8x 1.8x Compagnie Plastic Omnium FRA $5,230 $7,118 $8,088 4.5% 5.5x 7.9x 14.6x 0.8x SA Continental Aktiengesellschaft DEU $28,773 $35,336 $44,495 13.8% 5.0x 5.3x 5.2x 0.8x

DENSO Corporation JPN $46,411 $47,765 $46,189 6.3% 5.7x 12.3x NR 1.1x

Faurecia S.E. FRA $7,091 $11,280 $17,925 6.0% 4.1x 5.7x 8.7x 0.6x

Hanon Systems KOR $7,308 $9,573 $5,783 11.0% 11.5x 10.8x 14.5x 1.6x

HELLA GmbH & Co. KGaA DEU $6,590 $6,795 $6,713 7.3% 5.1x 8.2x 12.5x 1.0x

Hyundai Mobis Co.,Ltd KOR $25,095 $18,204 $31,225 7.2% 4.4x 3.6x 6.8x 0.6x

Koito Manufacturing Co., Ltd. JPN $10,700 $8,532 $6,744 13.3% 5.4x 5.6x 9.9x 1.3x

Lear Corporation USA $9,985 $11,636 $17,046 6.6% 4.3x 5.6x 8.7x 0.7x

Magna International Inc. CAN $25,387 $28,478 $32,647 8.7% 4.5x 5.2x 8.3x 0.9x

NGK Spark Plug Co., Ltd. JPN $3,437 $3,879 $3,976 19.7% 5.7x 5.7x 5.1x 1.0x

Schaeffler AG DEU $5,705 $9,092 $14,748 12.4% 3.8x 4.0x 4.7x 0.6x

Stanley Electric Co., Ltd. JPN $4,747 $4,055 $3,374 13.4% 4.3x 6.9x 9.0x 1.2x

Valeo SE FRA $8,500 $13,341 $20,105 5.2% 5.8x 10.8x NR 0.7x NR: Not Relevant Mean 5.5x 7.0x 9.1x 1.0x Median 5.4x 5.9x 8.7x 1.0x

Automotive Industry Sources: Capital IQ, S&P Market Intelligence Seale & Associates 2021 Creative Solutions. Trusted Advice. GLOBAL REPRESENTATIVE TRANSACTIONS AUTOMOTIVE MANUFACTURING

Size EV/ EV/ Date Target Country Description Buyer Stake % US$MM EBITDA Revenue

Comprises a vehicle manufacturing Jul-20 Russia Plant of GM RUS 100.0% $25.0 - - plant

Designs and develops self-driving Jun-20 Zoox Inc. USA Amazon.com, Inc. 100.0% $1,300.0 - - vehicles

Designs, engineers, manufactures, Dec-19 Fiat Automobiles N.V. GBR distributes, and sells vehicles, S.A. (nka: N.V.) 100.0% $45,042.8 2.3x 0.2x components, and production systems

Dec-19 JSC Lada West Togliatti RUS Manufactures and sells cars Public Joint Stock Company Avtovaz 50.0% $6.5 - -

Substantially All Assets of Comprises manufacturing facility and Mar-19 USA Unknown buyer 100.0% $8.0 - - GreenTech Automotive, Inc. intellectual property of electric vehicle

Feb-19 LLC AURUS RUS Manufactures luxury automobiles Tawazun Economic Council 36.0% $124.4 - -

Evergrande Health Industry Group Limited National Electric Vehicle Designs, manufactures, and sells Jan-19 SWE (nka:China Evergrande New Energy 51.0% $925.6 - NR Sweden AB electric vehicles Vehicle Group Limited)

Jiangxi Changhe Suzuki Manufactures and markets passenger Jun-18 CHN Jiangxi Changhe Automobile Co., Ltd. 46.0% - - - Automobile Co., Ltd. cars

Chery Automobile Co., Ltd., Nov-17 Brazilian Operations (nka:Caoa BRA Manufactures automotive vehicles Grupo CAOA 50.0% $60.0 - - Chery) Comprises a commercial vehicle AM General LLC, Commercial Jun-17 USA assembly plant and certain auto SF Motors Inc. 100.0% $110.0 - - Automotive Assembly Plant manufacturing equipment

Designs and manufactures fire and Apr-17 Ferrara Fire Apparatus, Inc. USA REV Group, Inc. 100.0% $100.1 - 0.7x emergency response vehicles

O Luxe Holdings Limited (nka:Apollo Apr-17 GLM.Co.,Ltd. JPN Develops and sells electric cars 100.0% $115.2 - NR Future Mobility Group Limited)

Manufactures and sells passenger cars Mar-17 Adam Opel GmbH DEU Peugeot S.A. (nka:Stellantis N.V.) 100.0% $1,206.9 - 0.1x and light commercial vehicles

NR: Not Relevant Mean 2.3x 0.3x Median 2.3x 0.2x

Automotive Industry Sources: Capital IQ, S&P Market Intelligence Seale & Associates 2021 Creative Solutions. Trusted Advice. GLOBAL REPRESENTATIVE TRANSACTIONS CAR COMPONENTS

Size EV/ EV/ Date Target Country Description Buyer Stake % US$MM EBITDA Revenue

Develops, produces, and distributes Jan-20 Renk Aktiengesellschaft DEU Triton; Triton Fund V L.P. 76.0% $581.0 6.6x 1.0x drive technology products

Designs, develops, and manufactures Jan-20 Delphi Technologies PLC GBR BorgWarner Inc. 100.0% $3,948.2 7.1x 0.8x integrated powertrain technologies

Manufactures and markets diesel Dec-19 UD Trucks Corporation JPN engines, trucks, and special-purpose Motors Limited 100.0% $2,280.9 - 0.9x vehicles

Manufactures and installs brakes for 2- Oct-19 Co., Ltd. JPN Motor Co., Ltd. 65.1% $1,176.6 4.2x 0.6x and 4-wheeled vehicles

Manufactures and sells automotive Oct-19 JPN Honda Motor Co., Ltd. 58.6% $1,136.4 7.2x 0.7x products

Manufactures and sells motorcycle and Oct-19 Keihin Corporation JPN Honda Motor Co., Ltd. 52.2% $1,567.9 14.3x 0.8x automobile products

Manufactures gears for the automotive Sep-19 Somaschini S.p.A. ITA CIE Automotive, S.A. 100.0% $84.4 - - industry

Seoyon Electronics Co., Ltd. Manufactures and sells automotive Sep-19 (nka:Mobase Electronics KOR MOBASE Co.,Ltd. 50.1% $266.2 10.4x 0.4x products Co.,Ltd.) Produces suspensions, filtration COFIDE - Gruppo De Benedetti S.p.A. Compagnie Industriali Riunite Mar-19 ITA systems, and other automotive (nka:CIR S.p.A. - Compagnie Industriali 43.3% $319.1 6.1x 0.5x S.p.A. products Riunite)

Manufactures oil, air, and fuel filters for Feb-19 FRAM Group Holdings Inc. USA First Brands Group, LLC 100.0% $310.0 - - the automotive industry

Designs and manufactures alternative Nov-18 Agility Fuel Solutions LLC USA fuel storage and delivery systems; and Hexagon Composites ASA 50.0% $124.2 NR 1.6x cylinders for vehicles

Produces and sells suspension Oct-18 Rassini, S.A.B. de C.V. MEX GGI Inv SPV SAPI De CV 45.7% $349.4 5.2x 0.9x components

Manufactures and distributes Apr-18 Federal-Mogul LLC USA Tenneco Inc. 100.0% $5,400.0 7.2x 0.7x automotive parts

Develops, manufactures, and supplies Jan-18 GKN Limited GBR various automotive driveline products Melrose Industries PLC 100.0% $12,923.7 9.3x 0.9x and systems

Designs and produces air conditioning Jul-17 Autoclima Spa ITA Indel B S.p.A. 100.0% $37.0 8.7x 1.1x systems for vehicles

Develops, produces, markets, and sells Jun-17 Groeneveld Groep B.V. NLD automatic greasing systems and safety The 100.0% $280.0 - 2.7x systems

Apr-17 Fuji Kiko Co., Ltd. JPN Manufactures and sells auto parts JTEKT Corporation 61.5% $363.0 3.8x 0.4x

Designs, manufactures, and supplies Apr-17 Velvac Inc. USA The Eastern Company 100.0% $39.5 - 0.7x mirrors, parts, and other components

Produces and sells powder metallurgy Johnson Electric International (UK) Mar-17 Halla Stackpole Corporation KOR 50.0% $105.6 6.1x 1.1x products and automobile parts Limited

Researches, develops, manufactures, Erae Automotive Systems Co., Shanghai Aerospace Automobile Feb-17 KOR and sells automotive components and 51.0% $340.3 14.0x 0.4x Ltd. Electromechanical Co., Ltd. modules NR: Not Relevant Mean 7.9x 0.9x Median 7.1x 0.8x

Automotive Industry Sources: Capital IQ, S&P Market Intelligence Seale & Associates 2021 Creative Solutions. Trusted Advice. REPRESENTATIVE GLOBAL ENGAGEMENTS

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