NEWSLETTER Industrials

Electric Vehicles The Future of Mobility

February 2020

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2 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com CONTENTS

1 Introduction 04-07

2 Global EV Status and Forecast 08-11

3 Global EV Adoption Targets 12-19

4 Electric Vehicles Value Chain 20-40

5 Key Trends and Growth Drivers 41-44

6 Trading Comparables 45-52

7 M&A Trends 53-57

8 Share Price Performance 58-62

9 GMAP Industrials Team 63

3 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Electric Vehicles

Introduction

4 NEWSLETTER: INDUSTRIALS – –ELECTRICELECTRIC VEHICLES VEHICLES www.globalma.com Introduction

Electric Vehicle Introduction Electric Vehicles (EV) have emerged as a green and reliable alternative to conventional internal combustion engine (ICE) vehicles. Existing OEMs and new specialised players in major parts of the US, Europe and Asia are focusing on transforming the automotive value chain for smooth transition to EV. Green aspirations of authorities has lead to less initial requirements for OEMs to manufacture EVs. This governmental/regulatory pressure linked with technological advancements, increased charging infrastructures and growing demand for fuel efficient vehicles has triggered the adoption rate. EV cars mechanically are less complex when compared to traditional ICE vehicles. This leads to cutting down the jobs and labor in operations related to vehicle production.

EVs Will Impact Existing Segments

Exhaust Transmissions ICE engines Fuel systems systems

However, new opportunities would open in the segment of batteries, and related products

Various cities including Paris, Copenhagen, London, Beijing are planning to ban gasoline and diesel vehicles from the city in near future. The huge push from the authorities have made China the largest consumer of EVs leading ahead of US and Norway. Meanwhile in Europe, the Parliament has established new CO2 emission standards for cars and LCVs with incentives for Zero Emission Vehicles (ZEVs).

Source: WEF, Energy.gov, Business Insider, and other secondary sources

5 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Introduction

Evolution - Electric Vehicle Introduction 1820’s 1830’s 1901 1910’s 1960’s

First small First crude Ferdinand Porsche Affordable Spike in gas price scale EV EV invented first gas-powered car reignited interest Hybrid electric car started fading EVs in EV

1990’s 1997 2006 2009 2010

New regulations created First mass-produced Tesla announced Charging station First Commercially interest in OEMs to hybrid vehicle Prius, luxury electric infrastructures Available Plug-In Hybrid modify introduced by sports car with begin to for Sale EVs Toyota range of roll out 200+ miles 2010’s 2011 2013 2017 2019

Development of models First fast charger Battery prices Increased • with longer driving range in Norway dropped by 50% adoption of fast Heavy investments in EV in 4 years chargers • More than 160 models of EVs in existence • EVs with increased driving range

Comparison – BEV, PHEV,HEV, ICE Introduction

Battery Electric Vehicle Plug-in Hybrid Hybrid Gas-powered Vehicle (BEV) Electric Vehicle (PHEV) Electric Vehicle (HEV) A traditional internal Electric motor only. Plug Electric motor plus Electric motor plus combustion engine in to charge combustion engine. Plug combustion engine. Does powered by fossil fuels in to charge not plug in Power source Plug-in

Battery

Gasoline

Fuel Efficiency Measured by miles per gallon equivalent (MPGe) & miles per gallon (MPG) Dollars per mile The cost of every trip is lower overall in EVs Emissions Lifetime emissions from EVs will continue to decrease Source: Interesting Engineering, TOI, Popular Mechanics, and other secondary sources

6 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Introduction

Impact of EV on the Automotive Stakeholders

Emergence of Electric Vehicles has lead to disruption in the automotive industry. As it is expected, automakers will provide both conventional and Electric Vehicles significantly impacting the participants of automotive ecosystem

End Government Automakers Dealers Suppliers Customers Regulations

Automakers are The dealer business Powertrain-related Customers prefer Government may realizing that the surge model will undergo suppliers will need to vehicles that are fun bank on electric is arriving sooner than changes as electric reinvent themselves to drive and packed vehicles to meet expected paving the vehicle maintenance to be relevant in the with the latest their climate change way for new internal costs are expected to future technology goals power centers and be lower than those and features external partnerships of conventional cars

• Huge investments in advanced technologies is observed through Automakers to avoid being outplayed by disruptive electric cars. Automakers will now have to enter in new supply chain partnerships to procure the raw materials utilized for manufacturing of Electric Vehicle. • An analysis by Reuters of 29 global automakers in 2019, found that automakers are investing at least USD 300bn in electric vehicles over the next five to ten years, with more than 45% of that earmarked for China • Dealers and suppliers are switching their existing business to accommodate the EV technology related demands to persist in the market. • Government and other regional authorities are encouraging the usage of EV to reduce the carbon footprints and meet other climate control goals

Source: BCG, McKinsey, Reuters and other secondary sources

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Global EV Status and Forecast

8 NEWSLETTER: INDUSTRIALS – –ELECTRICELECTRIC VEHICLES VEHICLES www.globalma.com Global EV Forecast

Status of Electric Mobility: Developing at a Rapid Pace

Electric Cars

Europe followed with 1.8 million electric cars The global electric car Norway remained the and United States global leader in terms of fleet exceeded remained the China with 1.4 million on the electric car market share 7.4 million in 2019, world’s largest road by the end of 2019 up by 2.3 million since at 56% of its new and market growth of 2018, a 45% increase in electric car market electric car sales in 579,000 and 329,000 the electric car fleet on with nearly 1.2 million 2019, more than double electric cars, the road by the end of electric cars sold in 2019 the second-largest respectively, from 2018 2018 and with a total electric market share in car stock of 3.5 million Iceland at 25% units, accounted for almost half of the global electric car stock

Global Electric Car Sales and Market Share, 2017 – 2019

Global Electric Car Sales Per Year in Respective Regions (thousand units)

China European Union United States

CAGR: +25% CAGR: +37% CAGR: +28% 1,256 1,206

777 579

407 361 307 329 200

2017 2018 2019 2017 2018 2019 2017 2018 2019

Electric Car Market Share among Overall Car Sales Per Year in Respective Regions (%)

4.7% 4.9% 3.8% 2.8% 2.7% 2.0% 2.1% 2.0% 1.2%

2017 2018 2019 2017 2018 2019 2017 2018 2019

Source: IEA analysis based on country submissions, CleanTechnica

9 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Global EV Forecast

Forecast: A Rising Tide of Electric Vehicles

The forecast for the Electric Vehicle market is positive according to scenarios put forth both by International Energy Agency (IEA) and Electric Vehicle Initiative (EVI), which is a multi-governmental policy forum established in 2009 under the Clean Energy Ministerial. The EV forecast according to these scenarios is discussed below:

New Policies Scenario (NPS) EV30@30 Scenario It is the central scenario of the IEA World Energy It is in line with the ambitions of the Electric Vehicle Outlook. The scenario incorporates the policies and Initiative (EVI) signatories of the EV30@30 Campaign measures that governments around the world have Declaration, which is to achieve by 2030 a 30% market already put in place, and the likely effects of share for EVs in all modes (except for two-wheelers, announced policies that are expressed in official where this goal has been exceeded). targets or plans. • EV sales and stock are expected to nearly double by • In 2030, global EV sales are expected to reach 23 2030, with sales reaching 43 million and the stock million and the stock exceeds 130 million vehicles larger than 250 million (excluding two/ three-wheelers) • China leads with the highest level of EV uptake, • EVs make up 70% of all vehicle sales in China in with share of EVs in new vehicle sales reaching 57% 2030 (42% excluding two/three-wheelers) • Followed by Europe, where the EV sales share • Almost half of all vehicles sold in 2030 in Europe are reaches 26% in 2030, and Japan at 21% share. In EVs, 37% in Japan, more than 30% in Canada and North America, Canada would lead with a 26% EV United States, 29% in India and 22% in other share of sales. countries, taken together.

Future Global EV Stock and Sales by Scenario, 2018 – 2030 Electric Vehicle Stock 250 million

130 +38% +31% million CAGR CAGR 5.1 5.1 million million

Electric Vehicle Sales 43 CAGR: +23% CAGR: +29% million from 2018-30 from 2018-30 23 million 2 million

Source: IEA analysis developed with the IEA Mobility Model Note: PLDVs = passenger light-duty vehicles; LCVs = light-commercial vehicles; BEV = battery electric vehicle; PHEV = plug-in hybrid vehicle

10 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Global EV Forecast

Electric two/three-wheelers and LSEVs • Electric two and three-wheelers on the road exceeded 300 million by the end of 2018. • The vast majority are in China. With sales in the tens of millions per year, the Chinese market for electric two-wheelers is hundreds of times larger than anywhere else in the world. • Low-speed electric vehicles (LSEVs) in 2018 were estimated at 5 million units, up almost 700,000 units from 2017. Almost all LSEVs were located in China.

• Shared “free floating” electric foot scooters flourished very rapidly in 2018 and early 2019 in major cities around the world. These foot scooter schemes now operate in around 129 cities in the United States, 30 in Europe, 7 in Asia and 6 in Australia and New Zealand.

Electric Buses and Freight Transport • In 2018, electric buses continued to witness dynamic developments, with more than 460,000 vehicles on the world’s road, almost 100,000 more than in 2017. • In freight transport, electric vehicles were mostly deployed as light-commercial vehicles (LCVs), which reached 250,000 units in 2018, up 80,000 from 2017. • Medium truck sales were in the range of 1,000-2,000 in 2018, mostly concentrated in China.

EV Chargers • The number of EV chargers continued to rise in 2018 to an estimated 5.2 million worldwide for light-duty vehicles (LDVs). • Most are slow chargers (levels 1 and 2 at homes and workplaces), complemented by almost 540,000 publicly accessible chargers (including 150,000 fast chargers, 78% of which are in China). • With the 156,000 fast chargers for buses, by the end of 2018 there were about 300,000 fast chargers installed globally.

Electricity Demand • The global EV fleet consumed an estimated 58 terawatt-hours (TWh) of electricity in 2018, similar to the total electricity demand of Switzerland in 2017. • Two-wheelers continued to account for the largest share (55%) of EV energy demand, while light-duty vehicles (LDVs) witnessed the strongest growth of all transport modes in 2017-18. • China accounted for 80% of world electricity demand for EVs in 2018.

CO2 Emissions • The global EV stock in 2018 emitted about 38 million tonnes of carbon-dioxide equivalent (Mt CO2-eq) on a well-to-wheel basis(1). • This compares to 78 Mt CO2-eq emissions that an equivalent internal combustion engine fleet would have emitted, leading to net savings from EV deployment of 40 Mt CO2-eq in 2018.

Note: (1) A “well-to-wheel” analysis is the assessment of the environmental impact of a given product or service throughout its lifespan.

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Global EV Adoption Targets

12 NEWSLETTER: INDUSTRIALS – –ELECTRICELECTRIC VEHICLES VEHICLES www.globalma.com Introduction

Electric Mobility Targets

• During H1 2019, global EV sales increased by 92% reached 780,000 units including 765,000 units corresponding to 41 countries • China remained the global leader in the BEV sales volumes worldwide with achieving a sales volume of 430,700 during H1 2019 followed by USA (116,200) and Norway (36,300) • The share of EVs out of total vehicle sales in China was recorded significantly higher at 4.0% in H1 2019 as compared with 1.9% during H1 2018

Country Sales Market Country (‘000) Share (%) Global Sales by Markets (H1 2019) China 430.7 Norway 37.1

USA 116.2 Netherlands 6.5 Others, 4% USA-Canada Norway 36.3 Sweden 4.8 17% Germany 33.0 China 4.0 Europe France 24.3 Switzerland 3.4 23% Netherlands 17.8 Portugal 2.7

Korea 17.7 Austria 2.4 China 56% Canada 13.1 Ireland 2.2

UK 12.7 Korea 2.1

Japan 11.0 Denmark 1.7

• In terms of market share, Norway holds the largest shares of 37.1% in H1 2019, followed by Netherlands (6.5%), Sweden (4.8%), and China (4.0%) • Tesla remained as the largest brand worldwide with sales volumes of 166,000, followed by BYD (96,000), Baic (52,000), Nissan (47,000), JAC and Hyundai (31,000 each), Renault (29,000), Chery (28,000), Geely (27,000), and ORA (24,000) • The existing dynamism in the market is expected to continue or even accelerate further in 2020 in line with strategic plans of major OEMs including Tesla, Nissan, Volkswagen, Mercedes, and Peugeot to upscale their production of EVs

Source: JATO – Global EV Sales Study

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China’s share of EVs will reach over 25% market share by 2025 • China has set aggressive plans to raise its share of new EVs to take 50% China Market Share by 2025 energy vehicles (NEVs) account to 25% of all car sales 15 by 2025, growing from an earlier target of 20% • The massive subsidy cuts may hinder the achievement of expected market share 10 • Further, regulators are expected to further cut

subsidies from 2020 onwards, which could be a major (millions) 5

setback to electric car sales Total Annual NEV Sales AnnualNEV Total • China has the potential to leapfrog from its trailing 0 position in combustion technology and become a major 2018 2020 2022 2024 2026 EV producer globally

Notable Developments

• In December 2019, Tesla announced plans to focus on expanding EV manufacturing in China through its Gigafactory 3, which has initiated production of Made-in-China versions of the company’s mass-market vehicles including the Model 3 sedan. Additionally, the company is planning to manufacture Model Y crossover at the plant • Billionaire Chinese business tycoons such as Jack Ma, Pony Ma, Hui Ka Yan, and Robin Li are investing in the country’s EV market • Toyota Motor is boosting its efforts to sell electric vehicles in China by introducing its first electric Lexus in 2020 in line with Beijing's intent to further boost sales of eco-friendly vehicles • VW plans to build 22 mn EVs over the next 8 years including ~50% in China and expects to produce 600,000 EVs a year at its two Chinese factories. • VW is also planning to offer 15 electric car models in the Chinese market by 2025

Europe is Set to Target Mass Production by 2025

• The European EV market is expected to witness Expected EV Models in Europe 2012-2025 aggressive growth during 2020-2021 to become the 400 mainstream sector in Europe 333 307 300 285 • Carmakers are embracing electrification and 251 214 capitalizing on scaling up EV volumes 200 176 • Further, EU-manufactured battery supply is expected 98 100 60 39 48 to match with the EV growth after 2023, subsequent to 12 18 23 29 delivery of current plans 0 • These confirmed plans are likely to generate nearly 131

GWh of battery production capacity by 2023 and is ‘000) (in VolumesProject expected to grow to 274 GWh in 2028 Volkswagen PSA Toyota Daimler BMW Group FCA Renault-Nissan-Mitsubishi Volvo-Geely Hyundai-Kia Jaguar-Land Rover Ford Honda

Source: CleanTechnica, Oil Price, Nikkei, Transport and Environment, Deloitte, engadget, Deutsche Welle

14 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Introduction

Notable Developments

Germany The German government and automakers are planning to increase cash incentives for EVs as a part of accelerating the transition from ICE vehicles

• The government is planning to strengthen the volume of public charging stations to 50,000 within two years. Automakers will help fund 15,000 of the stations by 2022. • Volkswagen is strengthening its charging infrastructure and closely associating with has·to·be GmbH, an e-mobility OS provider to further expand the pan-European charging network and participate in the rapidly growing market for charging solution • In another development, Volkswagen announced plans to invest EUR900 mn in a joint-venture agreement with Sweden's Northvolt AB to build a battery plant with an annual capacity of 16 GWh in Salzgitter, Germany • Germany’s Lild and Kaufland are planning to add EV charging stations at their stores to have charging stations on parking lot at ~3,900 Kaufland and Lidl stores across the country

By 2025, the Norwegian government is planning to transform all new vehicles sold in the country to be Norway fully electric

• Further, by 2030, the government has planned to downsize GHG emissions by 40% • The government is incentivizing the EV sales by offering tax rebates to meet its targets for 2025 • Avinor, the state-owned airport operator, is planning to use electric-powered aircraft on short-distance flights by 2030

The UK is planning to boost research and development spending in the country to become a major U.K. force in the electric vehicles market

• The government has initiated its plans to implement Road to Zero strategy with a focus on ~50% of cars and 40% of vans sold in the UK to be ultra-low emission by 2030. • Further, the government is planning to completely restrict sales of new ICE-powered cars by 2040 • Additionally, the government established GBP400 mn fund to finance the expansion of EV charging infrastructure • Rimac Automobili is planning to attract financial investors to expand its EV infrastructure and introduce its first full production electric hypercar, the C Two. Rimac will deliver the first of a planned run of 150 cars at the end of 2020

The French government is planning to develop EV infrastructure as an economic priority and increase France EV sales fivefold by 2020. Further, Paris is intending to phase-out ICE vehicles in the city by 2030 to downsize the level of air pollution

The Spanish government is focusing on expanding EV infrastructure through offering various Spain incentive plans

• For instance, the Spanish utility Iberdrola, in association with the French oil company Avia, initiated its plans to invest USD1.6 mn in new charging points at 27 Avia gas stations • Further, Iberdrola is planning to establish 25,000 charging points by 2021 that comprise 16,000 for private homes and 9,000 for companies

Italy is developing nationwide charging infrastructure and encouraging buyers of full electric or Italy hybrid vehicles by offering nationwide incentives such as providing annual registration tax exemption for five years

• The state-run utility firm, Enel announced its plans to invest USD110 mn – USD350 mn for installing nearly 14,000 charging stations in Italy by 2022

Source: Deloitte

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North America Witnesses Growing EV Adoption • BEVs and Hybrids are expected to be the major Projected US EV Sales as a % of Light-Duty Vehicle variants during 2020-2030; however, plug-in hybrids Sales (2015 – 2040) are likely to trail behind in the North American region • Stricter fuel economy regulation are expected Year to support automakers to expand their EV U.S. offerings 80 80 • According to EEI, the US market is expected to have the next ~1 mn EVs on the road by 2021 60 60 • The number of EVs on the US roads is 40 40 projected to reach over 18 mn by 2030 • Further, ~9.6 mn charge ports will be required 20 20 to support 18.7 mn EVs in 2030 representing potential for a significant investment in EV 0 0 charging infrastructure 2015 2040 Year • According to Navigant Research, the Canadian market is expected to have between 74,000 and 91,000 light- duty plug-in electric vehicles on the road by 2024

Notable Developments • In December 2019, Tesla announced plans to allow Tesla customers to charge their vehicles at EVgo charging stations in the US. EVgo and Tesla are planning for a joint infrastructure development, where EVgo will install Tesla’s proprietary connector at some of its 750 public charging stations nationwide • In October 2019, Ford initiated its plans to develop EV infrastructure and create a strong network of EV chargers in North America. The company announced plans to sell electric crossovers with styling based on the Ford Mustang from 2020. The company’s The FordPass charging network will include over 12,000 charging stations with a cumulative 35,000 plugs in the US and Canada. • In December 2019, General Motors announced plans to establish a joint venture with South Korea’s LG Chem for mass production of EV batteries through a joint investment of USD2.3 bn to build a new facility in Lordstown, Ohio. • In January 2018, Daimler is planning to spend ~USD11.7 bn to launch 10 pure electric and 40 hybrid models, and also planning to electrify its complete range of vehicles including minicompact commuters, and heavy-duty trucks

EV Delivery Forecast of Key OEMs (2020-2025)

1,200,000 1,200,000 1,200,000

1,000,000 1,000,000 1,000,000

800,00 800,00 800,00 0 0 0 600,00 600,00 600,00 0 0 0 400,00 400,00 400,00 0 0 0 200,00 200,00 200,00 0 0 0

2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025 2020 2021 2022 2023 2024 2025

Source: CNN Edition, Reuters, JP Morgan, Electrical Industry, EEI, Clean Technica, The Verge

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Country Focus: India

Overview Asia-Pacific EV Market by Value (2016 – 2026) • India is one of the major countries in the Asia-Pacific region (other than China), which has strong focus on (USD bn) 150 electrifying vehicles to curb pollution in the country • The government has preponed the implementation of 100 the next stage of emission standards, Bharat Stage 6 50 (equivalent to Euro 6 norms), to April 1, 2020

0 • The government has also introduced various incentives 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 for the adoption of electric vehicles including two and China India Japan Australia wheelers as they are used by majority of the population Rest of Asia Pacific

Indian Government Initiatives • The government of India (GoI) is planning to transform 30% of vehicles on the road into EVs by 2030 by offering special incentives such as lower GST on EVs as compared to ICEs and tax exemption on loans to buy such vehicles • Additionally, GoI focuses on developing India as a global manufacturing center and an R&D hub • Under NATRiP, the GoI is planning to establish R&D centers at a total cost of USD388.5 mn to enable the industry to be at par with global standards • The Ministry of Heavy Industries has shortlisted 11 cities in the country for introducing EVs in their public transport systems under the FAME [Faster Adoption and Manufacturing of (Hybrid) and Electric Vehicles in India] scheme • Further, the government is planning to establish incubation centers for startups working in EV space • In February 2019, the GoI approved FAME-II scheme with a fund allocation of USD1.39 bn for FY’2020–22

Key Initiatives Taken for EVs by OEMs in India Company Developments

• On January 28, 2020, Tata Motors launched the fully electric Nexon EV, priced at INR14 lakh – The Company also announced that it will launch 4 new electric cars in India in the next 24 months, which will include 2 SUVs, a sedan and a hatchback • Additionally, Tata Power is setting up EV charging network across India, Tata Chemicals is working on battery chemistry and Tata AutoComp on battery packs and other EV components Tata Motors • The company also plans to launch its premium EV brand Jaguar i-Pace in India by end of 2020

• In December 2019, Maruti Suzuki filed a trademark application for the name ‘Futuro-E’ and planning to introduce an all-electric concept vehicle that will be showcased at the Auto Expo 2020 • Additionally, the Company is planning to introduce an electric version of its successful economical model WagonR, WagonR EV and already initiated testing the vehicle on road. However, the Maruti Suzuki company has recently put the launch of its electric model of WagonR on hold.

• During December 2019, Hyundai unveiled Strategy 2025 as a part of its focus on transition into smart mobility solutions. Further, announced plans to invest USD 1 bn in India by 2020 • On July 9, 2019, Hyundai launched its all-electric SUV Kona in India in line with its strategic push at global level. The company is planning to introduce affordable EV models as the market Hyundai progresses to be largely driven by electric four-wheelers

Source: Deloitte

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Company Developments

• Mahindra is planning to replace its e20 hatchbacks with eKUV100 having 16kWh li-ion battery and power of 54bhp • The company wants to make it affordable and plans to price it at less than INR 9 lakhs (0.9mn) • Mahindra & Mahindra and Sequoia Capital backed self-driving car rental Zoomcar is focusing on the EV segment and plans to introduce ~3,000 additional EVs • Zoomcar currently operates a fleet of 500 EVs, which it claims is growing four times year-on-year • In November 2018, Mahindra Electric Mobility established its electric technology manufacturing hub in Bangalore with an investment of USD 14.3mn, which will increase its annual manufacturing Mahindra Electric capacity to 25,000 units • On December 5, 2019, MG Motors, owned by SAIC Motor, launched its electric vehicle ZS EV, to compete with EV variants such as Hyundai Kona, and is priced at INR 20.9lakhs (2.1mn) MG Motors • The model has a 44.5kWh motor that is appropriate to drive for 300kms

• On January 23, 2020, Audi introduced Audi e-tron in India, the car is an all electric SUV that has a Audi 95kWh battery pack and a claimed range of over 400km; expected to be priced at INR 1.2crore

• Ashok Leyland initiated its focus on electric vehicle strategy in line with the current lineup of existing LCV models. The company is planning to introduce new platform for EVs during April 2020 • In another development, during FY2018–19, the company announced its plans for a capital expenditure worth USD155.2mn for introducing 20–25 new electric models across various Ashok Leyland commercial vehicle categories

• Okinawa is planning to introduce it first electric motorcycle, in addition to its existing scooter models, Okinawa Oki100 with 150km range, 100-120kmph top speed and chain drive. The Okinawa Scooters motorcycle is expected to have a swappable battery and fast charging capabilities

• Tork Motors is planning to introduce its electric motorcycle – T6X, during the Q1 2020. The motorcycle has a 6kW electric motor, which will produce 27Nm and a top speed of 100kmph Tork Motorcycles • The company has installing charging stations around Pune • On January 28, 2020, Ather launched its new scooter, Arther 450X in two variants Plus and Pro, Ather Energy priced at INR 1.49lakhs and INR 1.59lakhs, respectively, with a range of over 85kms

• In 2020, the company plans to introduce its first electric scooter – B3 and a motorcycle – B2, both Blacksmith Electric come with a swappable batteries giving a total range of 240kms

• The Bengaluru-based start-up announced its plans to introduce their first electric superbike called Emflux Motors Emflux One in India with 200kmph top speed during H2 2020 • In July 2019, Revolt Motors launched the RV400 motorcycle priced at INR 1 lakh, with a range of Revolt Motors 156 km and a 85kmph top speed; operates in Delhi and Pune and has started deliveries since Oct’19 • On January 14, 2020, Bajaj Auto launched the Bajaj Chetak electric scooter, with a 4kW electric motor and a range of up to 95kms • The sales of the Chetak electric will first commence in Pune and Bengaluru from the existing Bajaj Auto Probiking network with KTM. Also plans to export the scooter to the European market.

• In November 2019, Ultraviolette Automotive unveiled the F77 electric motorcycle in India, the motorcycle has three modular 4.2 kWh Lithium-ion battery packs, with a range of 130-150 kms Ultraviolette • TVS Motors has a ~25% stake in the Company • On January 27, 2020, TVS Motors launched iQube Electric, an electric scooter with a 75km range and priced at INR 1.15 lakhs (0.1mn); currently available only in Bangalore TVS Motors • TVS invested USD 28mn at its Hosur plant which will manufacture 1,000 e-scooters per month

Source: Deloitte, Press releases

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Targets for Charging Infrastructure

Charging Infrastructure expansion targets have been announced by various charging point operators, utility companies and vehicle OEMs which are trying to provide charging network for their users. The significant players which have made announcements during 2018-19 include: • ChargePoint: The world's largest network of EV charging stations in the United States and Europe (also a supporter of the EV30@30 Campaign) • EV-Box: A charging station provider originally based in the Netherlands, which was recently acquired by ENGIE, a leading power sector company • Vehicle OEMs, which are active in the charging infrastructure space mostly through joint ventures, focus predominantly on public destination chargers or highway chargers − Tesla, Electrify America (a subsidiary of Volkswagen) and Porsche all announced public chargers across the US − Ionity (a joint venture of BMW Group, Daimler AG, Ford Motor Company and Volkswagen Group with Audi and Porsche funded by European Commission) focuses on highway chargers • In the US, utility companies are actively deploying charging stations in key states such as California, New York, New Jersey and Maryland − Various large US utilities are in the phase of pilot projects, such as DTE Energy, Duke Energy and Consumers Energy Company • In Europe, electric utilities are expected to develop significant numbers of highway chargers − In 2018, Iberdrola started deploying fast charging stations in Spain, aiming to install 400 chargers by the end of 2019 • China has the largest market for EV charging infrastructure, however private sector announcements are lower than for European and North American companies − The State Grid Corporation of China has a target of building 120,000 charging points by 2020 and China Southern Power Grid plans to build 25,000 for the same year

Selected providers of charging infrastructure and plans/targets announced during 2018-19

Source: IEA Global EV Outlook 2019 Notes: SGCC = State Grid Corporation of China; SCE = Southern California Edison; CSPG= China Southern Power Grid; SAIC=Shanghai Automotive Industry Corporation; EA= Electrify America; NG = National Grid

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Electric Vehicles Value Chain

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Electric Vehicle Value Chain Introduction

Car Manufacturer

Batteries Grid & Technology & Lightweight Infrastructure Connectivity Materials

Battery Smart Grid Charging Autonomous Data Apps & Alloys & Manufacturer Stations Driving Analytics Entertainment Composite

Lithium Commercial Household Miner

Introduction of electric vehicles has led to disruption of the value chain in automotive segment, leading to introduction of few new players. However, some existing players will disappear. Batteries will be major component, with almost 20% of the industry’s revenue. Emergence of new businesses in the field of electric charging infrastructure and other EV related services is bound to happen.

Source: WEF, Energy.gov, Business Insider, and other secondary sources

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Existing Battery Ecosystem

Lithium-ion batteries are major battery-types globally that is currently succeeding over other battery types. Automobile manufacturers have identified three types of rechargeable batteries as suitable for electric car use: lead-acid batteries, nickel metal hydride (NiMH) batteries, and ultracapacitors.

Benefits Challenges

• High energy density helps EVs to sustain in the • Require excessive protection mobile conditions for a longer time from being over charged and • Lower self-discharge with low maintenance discharged too far • No requirement of priming while receiving first • Suffer from ageing Lithium-Ion charge • ~40% costlier to manufacture Batteries than nickel-cadmium cells

• Used in computer and medical equipment • Offer reasonable specific energy and specific power • High cost, high self-discharge capabilities and heat generation at high • Longer life cycle than lead-acid batteries and are temperatures, and the need Nickel-Metal safe and abuse tolerant to control hydrogen loss Hydride Batteries • Widely used in hybrid electric vehicles

• • Designed to produce high power and are Low specific energy, poor inexpensive, safe, and reliable cold-temperature performance, and short • Used in commercially available electric-drive calendar and cycle life vehicles for ancillary loads Lead-Acid Batteries impede their use

• Store energy in a polarized liquid between electrode and electrolyte • Energy storage capacity increases as the liquid's surface area increases • Provide additional power to vehicles during Ultracapacitors acceleration and hill climbing • Useful as secondary energy-storage devices in electric-drive vehicles due to their load power levelling for electrochemical batteries

Source: BCG, Electronics Notes, Web Search

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Potential in EV Batteries

Battery manufacturers are keeping a fast-pace integration plans with electric vehicles; however, the manufacturers are facing various challenges including governments’ sluggish response towards infrastructure development, slow growth in the transition from fuel to electric vehicles, and existing unstructured infrastructure. For instance, the US Department of Energy (DOE) has identified gaps in some critical parameters of Li-ion. Lithium-ion is becoming a preferred alternative for electric powertrain. For instance, Li-nickel-manganese-cobalt (NMC), Li-phosphate and Li-manganese are being majorly used over other batteries. Newer NiMH batteries, which are cheaper and safer than Li-ion, are also suitable for the electric powertrain but these mature systems are often excluded from government grants for research.

Global Electric Vehicle Battery Market (2018 – 2025) • The global electric battery market reached USD13.4 50 bn in 2018 and is expected to reach USD39.5 bn 39.5 growing at a CAGR of 16.7% during 2019-2025. 40 33.8 • Factors such as growing focus on introducing electric 29 30 24.8 vehicles by major brands including BMW, General 21.3 18.2 Motors, and Ford Motors in rolling out electric 20 15.6 13.4 vehicles is expected to drive the market growth Value (in USD bn) USD (in Value 10 • Further, continued rollout of Electric Vehicle Supply Equipment (EVSE) and the subsequent increase in 0 the sales of electric vehicles support market growth 2018 2019 2020 2021 2022 2023 2024 2025

Global Electric Vehicle Batteries Growth % (2018 – 2025)

19.8% 18.6% 18.3% Others 11.4%

Nickel Zinc-Air Molten Salt Lithium-ion Lead Acid Nickel Metal Cadmium Battery Battery Battery Battery Hydride Battery Battery

Major EV Battery Manufacturers

Beijing Pride Power Tiannerg (BPP) Source: Battery University, Grandview Research, PR Newswire

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Battery Market Concentration

The EV producers are taking investment decisions in mass manufacturing of EVs based on various factors such as design, functionality and price of vehicle batteries. Batteries are integral to the main formats of EVs including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). The ongoing revolution in the batteries manufacturing are poised to become a significant driving factor for electric vehicle mobility. Battery cell producers are adding massive amounts of production capacity to capture market share and economies of scale.

• Asia-Pacific remains the largest region in the global electric vehicle battery market and is likely to grow at a CAGR of 19%, during 2019 – 2025 • Apart from China, several other major countries such as Japan, India and South Korea have focus on expanding the EV industry, which will support growth of batteries market in the region • Further, North America is expected to grow at a CAGR of 18.7% during 2019 – 2025 due to the growing Asia Pacific Europe North America investments in the manufacturing of EVs

Five Largest Lithium-ion Battery Producers by Capacity (2018)

• LG Chem has been aggressively focusing on expanding its cell capacity since last two years and has pushed ahead with a five megafactory approach on three continents • CATL announced two new lithium ion battery plants in Germany and Guangzhou while expanding its primary production base in Ningde.

51 GWh 38 GWh 26.5 26.6 22 GWh GWh GWh

Factory costs are falling thanks to improvements in manufacturing equipment and increased energy density at the cathode and cell level. The expansion of existing facilities also offers companies a lower-cost route to expand capacity Logan Goldie-Scot, Head of Energy Storage at BNEF

Source: Benchmark Minerals, BNEF, The Driven

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Reducing Battery Cost through Smart Factories

The EV producers are taking investment decisions in mass manufacturing of EVs based on various factors such as design, functionality and price of vehicle batteries. Batteries are integral to the main formats of EVs including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs). The ongoing revolution in the batteries manufacturing are poised to become a significant driving factor for electric vehicle mobility. Battery cell producers are adding massive amounts of production capacity to capture market share and economies of scale.

Reduction in Future Battery Costs through Industry 4.0 Technologies

Battery production cost ($/kWh) Factory-of-the- 225 future elements

55 2

23 209 17

112

0 Current Cost Higher energy Plant Plant Plant Factory-of- (2018) density structure processes digitization the-future cost

• According to BCG’s research, the existing battery market is burdened with overcapacity, which could be managed by becoming cost-competitive through improving operational performance • The battery manufacturers are required to adopt the concept of smart factory with the integration of industry 4.0 technologies that enhance plant structures and processes • Such transition to smart factory will enable battery manufacturers to reduce the cumulative battery cell costs per kilowatt-hour (kWh) of capacity by up to 20% • These savings are the outcome of achieving lower capex and utility costs, and in-turn higher yield rates • The production-related costs, excluding materials, could be reduced within 20% - 35% across three major steps of battery cell production: electrode production, cell assembly, and cell finishing

Source: ENI Day, BCG Study (April 2019): The Future of Battery Production for Electric Vehicles

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Planned Battery Manufacturing Capacity Expansion Megafactory Capacity by Country A battery megafactory is a lithium-ion battery cell production factory which is 5.6% capable of producing over 1 GWh (gigawatt hour) of battery cells per year. 1.1% According to Benchmark Minerals, lithium-ion battery capacity pipeline 3.8% stands at 1,956.6GWh by 2028. The production volume equates to 35,000,000 - 37,000,000 electric vehicles annually Global Lithium-ion Megafactory Capacity 2010 – 2028 13.8% Total: 1,000 800 144.8 600 2017 13.0% GWh 62.9% GWh 400 200

0

2017

2011

2013

2015

2012

2010 2014 2018

2016

2027(f)

2021(f)

2023(f)

2019(f)

2025(f)

2022(f)

2020(f) 2024(f) 2028(f) 2026(f) 0.6% The growing battery capacity expansion requires significant volume of raw 0.6% materials including lithium, cobalt, nickel and graphite, which showcases 10.3% significant potential for growth in raw material demand. Governments and 4.0% businesses worldwide are focusing on securing raw material supply to 3.4% enhance battery storage mechanism. Procurement of these materials is 6.2% Total: critical in line with securing required investment based on distinctive, complex, and global supply chains. 6.0% 658.0 2023 GWh 63.0% Existing and Planned Battery Cell Production 2.7% Finland Germany 3.1% 100 MWh Russia China 726 MWh 1 GWh 217.2 GWh

U.K. 0.6% 0.5% 1.4 GWh Japan U.S. France 14 GWh 0.7% 13.4% 49.9 GWh 1.1 GWh 4.5% South Korea Total: Poland 23.1 GWh 4.5% Czech Republic 4.6% 1,102.5 5 GWh 57.2%

1 GWh 2028 Hungary 5.5% GWh 1.7 GWh 2.7% 5.4% China and RoW Planned Production

China 130.4 GWh China Germany Hungary Japan South Korea Poland Rest of the World Sweden UK 42.4GWh US TBA Australia

Source: Greentech Media, BNEF Study (2018): The Breakneck Rise of China’s Colossus of Electric Car Batteries

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Global Raw Material Demand vs Lithium-ion Cell/Megafactory Capacity 292 GWh 1,189.4 GWh 1,956.6 GWh 2,500,000

2,000,000 1,427,280

1,500,000 1,265,401 1,274,357

Tonnes 1,000,000

667,409

2,347,920

351,067

350,400

303,440 2,112,984

271,280 115,290

500,000 98,399

0

2018 2023 2028 Lithium Graphite Cobalt Nicket

The existing plants, which are operating at their full planned capacity, are expected to have a sizeable demand for raw materials from battery megafactories in pipeline. Based on the hypothesis, nickel demand from batteries is expected to increase by over 10 times and lithium production at over 2 mn tonnes annually to cater to these demands. In 2018, lithium production was approximately 300,000 tonnes, of which approximately 50% went into batteries. As EVs become widely adopted and battery megafactories continue to grow in number and scale, the impact race on raw materials will be seismic.

Technology advances are delivering substantial cost reductions for batteries

Ongoing developments in battery storage technology has led to significant transformation in battery structure. These structural elements indicate continued cost reductions through changes in battery characteristics including energy density, chemistry, and battery pack size and scale of manufacturing plants. Batteries will increasingly use cathode chemistries, which are less dependent on cobalt that will increase energy density and a decline battery costs by 2025. Further, the development will allow the availability of silicon-graphite chemistries for anode technology.

Solid State Batteries Wireless Charging

Wet lithium-ion batteries, which use liquid electrolytes to Engineers at Witricity think are trying to identify a possible move energy, is being considered to be replaced with solid solution for charging batteries not only with a cable and dry conductive material. The solid and dry material is charger, but also wirelessly all around the place. The more efficient and less-likely to catch fire than lithium-ion technology will also be applicable to various other batteries. industries apart from automotive. The technology was earlier invented at the MIT, which is based on using Solid-state batteries safely and quickly draw power from magnetic resonance to charge batteries over distances the batteries and enables fast charging. Further, these and even through different materials. batteries require lesser room than lithium-ion batteries for temperature control that allows companies to squeeze The technology will help vehicle drivers in gaining access more battery cells into same size pack. However, the to the required charging infrastructure and will also allow successful execution of such innovative battery faster and smooth infrastructure technologies require removal of the bottlenecks.

Source: The Verge, India Environment Portal

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Automotive OEMs: Shifting towards EVs

How are Automakers Impacted by Electrification? Traditional automotive original equipment manufacturers (OEMs) have been impacted by the shift towards electrification. OEMs are accelerating their electrification efforts to achieve the delivery of profitable and desirable electric vehicles that are in line with the changing consumer tastes and expectations from electric vehicles. The impact of electrification is expected in three key business areas: research & development (R&D), production and supply chain.

• Traditional automakers are quickly ramping up R&D efforts to be able to participate in the electrification of the powertrain. For instance: – Volkswagen has set a target of spending USD 84bn to bring 300 electric vehicle models to market by 2030 – Ford will spend USD 11bn to bring 40 hybrid and fully electric vehicles in its model Research & line-up by 2022 Development (R&D) – Daimler indicated it will spend EUR 10bn for electrification

• Redesigning a vehicle architecture for BEVs means a company can re-imagine their manufacturing footprint • The product simplification that comes with BEVs could lead to capital efficiencies – For instance, Ford has indicated that their next system of battery electric vehicles in the final Production assembly area will have a 50% reduction in footprint, a 50% reduction in capital investment, and a 30% improvement in hours per unit or labor savings

• New suppliers (such as battery and electric motor companies) may enter the fray while others (fuel systems, transmissions, exhaust) leave. • OEMs need to decide how they will design EVs but also how much they do internally versus leveraging a supply base • In the current ICE world, much of the know-how, and hence value-add has been outsourced to the supply base. This is a reason why supplier margins and ROIC are Supply Chain greater than automakers’. • However, EVs offer an opportunity for automakers to re-insource and capture value. • Further, BEVs are “simpler” than ICE. The production components being outsourced may be more standardized and commoditized.

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Current Automotive OEMs Electrification Targets The majority of the world’s largest automakers have outlined a strategy as it pertains to EVs, which gives further insight intoAutomotive how quickly the world will OEMs: adopt EVs. Below Shifting are highlighted thetowards significant EV model EVs announcements, investments and sales forecasts by key automotive OEMs.

Company 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 $15.5bn for 20 electrified electric mobility, models digitization and AI 800,000 EVs annually (1/3 total sales) All models have electrified versions

500,000 5 BEV models 25 electrified models electric (at least 12 BEVs) vehicles 15-25% of sales are electric $22.5bn Smart brand: only 10 BEV battery cell selling cars with models purchase electric systems in Europe / N. America

Phase out all diesel More than 30 electrified passenger car models (Jeep: at least production in Europe 10 PHEV and 4 BEVs) $10.5bn for electrification 40 electrified (16 BEVs & 24 PHEVs) $11bn for electrification $300mn MI EV 20 all 1 million manufacturing plant electric EV units models globally Cadillac will introduce new model every 6 months through 2021 560,000 BEV Electrify and 110,000 most new FCEV units $17.2bn in R&D for electrification, autonomous driving, models AI, robotics and new energy area between 2020-25 23 BEV models $1bn for US 130 15-25% of new production plant electrified vehicles are variants electric

Acquired 1 million Electrified Enevate electrified vehicles make Corp. vehicles up 20-30% of US Sales

$70mn DCFC $6.7bn in 50% of new investments electrification vehicles “could at dealerships have an electric drive system”

10 BEVs in early Every model is $13bn for 2020s dedicated electric battery tech or has an electric 5.5 million EVs option (1 million BEV/FCEV) $50bn in EV/autonomous vehicle development 80 electrified 22 million Electric models (50 BEV) electric version for entire brand Up to 3 million EV cars (300 models) sales annually produced Every future car will Invest 5% of annual revenue BEVs make up have electric motor (~$1bn annually) in the next 50% of sales Acquired Invested in few years to develop and Freewire Momentum build EVs Tech. Dynamics

Investments (converted to Model announcements EV Sales Forecast USD) or acquisitions Source: M.J. Bradley & Associates and press releases

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Automotive Components Suppliers

Transformative Forces Affecting Suppliers The four key transformative forces expected to have a significant impact on the automotive supplier landscape:

Increased regulatory pressure, Preferences of younger, more mobility Shared technological improvements, urban customers to use ride- investments in charging hailing services, along with infrastructure, and environment- saturation of smartphones and friendly customers drive the advanced 5G networks, will likely

Electrification growth of e-powered vehicles. make shared mobility even more accessible.

Big technology and consumer Shifts in vehicle technology and electronics players are entering the functionality, such as proliferation

automotive value chain. They have of software and advances in convergence challenged existing business models autonomous "driving" have led to Technology and placed pressure on traditional a convergence of auto motives suppliers to innovate quickly and and technology, and have avoid getting left behind by faster- transferred significant supplier

New New entrants moving peers and rivals. value from hardware to software.

According to Deloitte, automotive suppliers have created USD 510bn in shareholder value since the last recession, more than doubling the overall market value from the end of 2008. However, the top one-third of performers have accounted for more than 99% of that total value created. However, as the mobility transformation takes shape and new competitors claim market share, suppliers may find that past performance does not guarantee future value creation, especially now.

How are Suppliers Impacted by Electrification? Electrification is expected to be very disruptive for the existing automotive supply chain, particularly for the companies engaged in the manufacture and supply of powertrain and exhaust system components. The impact can be gauged by looking at what is a supplier providing today and what will an EV need in the future.

Out Unchanged Evolved Winners New Fuel systems, Seats, safety, Braking systems Thermal Electric motors, transmissions, interiors and body- (move to management and batteries and power exhaust systems and in-white regenerative simple gear electronics other powertrain braking) and axles reduction (CPUs, inverters, products (move to e-Axles) converters, on-board chargers) • Suppliers have the advantage of scale as they can sell across to multiple customers. So it is imperative for them to come up with strong technology at a low cost, which would imply investing now. • Also suppliers may have to increasingly look to partnerships to fill competency gaps, quicken time to market and reduce capital spend. • Some companies have done a more pro-active job preparing for the future (such as BWA) while others remain content believing that ICE mix will still be the vast majority of vehicles for the foreseeable future.

Source: RBC Capital Markets, Deloitte

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Growth and Profit of Previous Years Expected to Decline The automotive suppliers’ growth and profit of previous years is expected to come to an end in 2019. According to Lazard/Roland Berger’s 2019 Global Automotive Supplier Study covering over 600 automotive suppliers, the average 2019 EBIT margin for these suppliers is likely to be less than 7% in 2019, for the first time in the last seven years.

Key supplier performance indicators, 2012 – 2019E (n=~600 suppliers) Revenue Growth EBIT Margin (%) 126 127 7.2 7.3 7.1 7.1 7.2 7.2 120 123 6.8 113 107

Indexed Indexed 100 ~120 - 125 (2012 = = 100)(2012 ~6.0 - 6.3

2012 2013 2014 2015 2016 2017 2018 2019E 2012 2013 2014 2015 2016 2017 2018 2019E

Differentiated Future for Automotive Suppliers Each part of the automotive supplier ecosystem is impacted differently by the disruption and transformation caused by electrification, leading to a future where outlooks diverge based on the segments in which a supplier operates in. • Suppliers driving innovation in autonomous and electrified systems will likely see the most opportunity and growth (as much as approximately 300% in some segments) • While suppliers operating in more commoditized automotive supply segments like frames, interiors, brakes and internal combustion engines could be most at risk as these segments stagnate and decline between 2019 and 2025 • The most risky segments are those with limited ability to differentiate coupled with stagnant or declining growth: axles, exhaust, transmission, brakes, fuel systems and steering

Market size in 2018 (USDbn) Market size in 2025 (USDbn) Change Electric drivetrain 14 56 306% Battery/fuel cell 39 142 266% ADAS and sensors 20 59 190% Growth Electronics 108 127 18% Infotainment & communication 108 125 16%

Wheels and tires 49 53 7% Seats 86 92 6% Body 244 252 3% Interior 147 149 1% Stagnant Climate control 25 25 0% Frame 47 46 -1% Suspension 26 25 -4%

Transmission 139 131 -6% ICE 250 234 -6% Brakes 35 33 -8% Axles 43 39 -10% Lagging Exhaust system 51 46 -10% Steering 33 27 -17% Fuel system 17 13 -20%

Growth: Total segment revenue Stagnant: Total segment revenue Declining: Total segment expected to grow between 2018 expected to remain relatively flat revenue expected to shrink and 2025 (AEV content/volume, between 2018 and 2025 between 2018 and 2025 aftermarket and service) (traditional content/volume) Source: Deloitte - 2019 Global Automotive Supplier Study Note: Market size for each segment was calculated based on the 2018 IHS Markit data for more than 280 traditional suppliers and technology companies

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How automotive suppliers are proceeding for electrification Automotive suppliers are investing billions on EV and autonomous vehicles to gain major share in the expected multitrillionGrowthdollar marketDrivers. As per a report of AlixPartners automaker partnerships increased to 543, that is 43% more than 2017. The automotive suppliers are taking various steps from collaborations to development of innovative product to sustain in the dynamic market of EV. Below mentioned are the few steps taken by players in automotive segment to be a part of EV environment

Company Developments

• Launched e-AAM program in 2018 and planning to launch another electrification programs by 2020 with OEMs, expect to generate USD100-200 mn revenue from the same by 2021 • The new e-AAM is enabled with features like eDrive, eBoost, electric traction control, electric AWD, American Axle coast regeneration, load point shifting, and brake regeneration • Company plans to focus on high voltage/high power CPV segment as management expects it to grow at around 17% on y-o-y basis for 5 years and around 21% on y-o-y basis for 15 years • Also management is planning to capture 40% share of wire harnessing, portable plug-in chargers by Aptiv 2022 from 20% currently • BorgWarner has made recent investment of 1.3 billion to develop products for electric powertrains • The company is also actively focusing on all powertrains: internal combustion, hybrid and electric to support all three propulsion systems BorgWarner • In Oct’19 developed high-voltage, electrified demonstration vehicle as the supplier is expecting EV and hybrid parts to generate more than 12 % of their revenue in 2020 BorgWarner • Dana invested more than USD 8bn in last 2 years to acquire firms to get support in electrification of vehicles and other model developments. Out of which more than USD 6bn were invested in acquisitions to support their electric axles segment for heavy and off-highway vehicles • The company introduced integrated e-axle solution for mini-buses in 2018, and e-Axle for the transit Dana bus market in 2019 • Delphi made significant investment for a new Electrification & Electronics plant in Poland for providing support in electrification solutions, while aligning with EU’s CO2 emission initiatives • Delphi Technologies launched first 800-volt silicon carbide (SiC) inverter which will reduce EV Delphi Technologies charging time by 50%, compared to the currently used 400-volt systems • Denso to invest USD 1.6bn to strengthen development and production of automotive electrification products and systems and is also collaborating with start-ups to develop software-based solutions, automated driving, connectivity and shared economy DENSO • Denso has partnered with Honeywell to develop hybrid-electric and fully-electric propulsion systems for urban air mobility • GKN launched integrated 3-in-1 system which integrates inverter and electric motor, with the single- speed transmission module to scale up the torque enabling cost reduction • GKN Automotive is conducting extensive testing and trail runs of battery electric vehicle (BEV) with GKN torque vectoring and two-speed transmission • Magna opened new electronics manufacturing facility in Grand Blanc Township with an investment of more than USD50 mn to accelerate deployment of advanced robotics, advanced driver assistance systems (ADAS), and micro-LED lighting Magna International • In Oct’19, Magna received a grant from U.S. Department of Energy to develop an electric motor that is 50% the cost and 8 times the power density of current motors, and delivers 125 kW peak power • Valeo collaborated with Dana to develop end-to-end 48V hybrid and electric vehicle systems. The system contains an electric motor and inverter, allowing it to generate voltage and alternating Valeo currents from power sources with different voltage Source: RBC, CNBC, AAM and other secondary sources

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Electric Two-wheelers Growth Drivers th 1/4 of global motorized two-wheelers are electric; • The global production of electric two-wheelers in 2018 was 26 millions units. Further, till 2018 almost 250 million they are mostly in China (95%), units were into existence. This accounts for more than India and ASEAN countries 1/4th of global motorized two-wheeler stock of around 800 million units 250 million units till 2018 • Major circulation of electric two-wheelers is observed in India, China, and ASEAN countries. Further, deployment of electric two-wheelers is observed through rental 26 million units produced in 2018 models in European countries • In China electric two-wheelers are exempted from vehicle registration with that few cities banned conventional gasoline two-wheelers from urban centres • However, some cities are banning low-speed electric two- wheelers to avoid road accidents. This policy is effecting the demand as 2/3rd of electric two-wheelers in China have low-speed range • Electric two-wheelers have no dedicated charging infrastructure till now. However, vehicles are charged through regular power outlets available in local buildings

Electric Three-wheelers

• The market and production of electric three-wheelers is heavily concentrated in China and India. • China alone has stock of more than 50 million units of electric three-wheelers. Whereas, the count of the same in India is 2.38 million units, as of end of 2018 • In China, the market is getting depressed after the introduction of limits related to production low-speed electric vehicle • In India, heavy support of government derived the growth as 630,000 units of electric three-wheelers were sold in 2018. The government through its FAME programme provides 8 models of electric three-wheeler at subsidised prices • Due to lack of availability of dedicated charging infrastructure regular power outlets in local buildings are used for charging. Further few on-grid fixed charging stations and off-grid mobile solar-powered charging points have came into existence • In Aug’19, Shado Group from Singapore introduced a new instant-charging electric three-wheeler “Erick “

Source: IEA and other secondary sources

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Electric Buses

• Electric buses stock registered a growth of 25% in 2018. The global stock of buses reached 460,000 with 92,000 new registrations in 2018 • China remains the leader in electric buses segment, accounting for almost 99% of the global market. Outside China only 900 new electric buses were registered in 2018, most of these registrations were done in Europe • In India, Government funding for 390 electric buses in 11 cities made available in late 2017 under the first phase of the FAME scheme drove adoption of electric buses in 2018; in 2019, India sanctioned 5,645 electric buses for intra-city operations in 65 cities and for inter-city operations in 8 states, however no timeframe has been given yet • Till 2018, 157,000 dedicated chargers were installed globally for charging electric buses with 153,000 chargers installed in China, accounting for 97% of global installed dedicated bus chargers Dedicated Bus Chargers, by Country (2018) 160 3.0 140 2.5 120 100 2.0 80 1.5

60 1.0 (thousands) (thousands) 40

0.5 Number Number chargers of 20 Number chargers of 0 0.0 China UK Germany Netherlands France Chile Sweden

Electric Trucks

• The electric truck market is in very early stages compared to other electric vehicle markets. • China being the largest player registered sale of 1,000-2,000 medium and heavy trucks in 2018 with overall stock of electric trucks crossing 5,000 units • European region has shown some signs of growth as a group of OEMs provided more than 50 medium freight trucks for fleet operators • Minimal dedicated charging infrastructure is available for electric trucks. Moreover, due to the heavy load and battery power even fast chargers consumes 6 hours to completely charge the battery • However, Tesla recently announced launch of new mega chargers which can completely charge battery in 30 minutes

Off-Highway Electric Vehicles

• The off-highway EV are gaining popularity due to their non-toxic exhaust, which enables mining companies to avoid installation cost of ventilation system • Mass adoption of off-highway EVs will require 10-15 years due to the varied usage and purposes of off-highway vehicles

In a decade from now the best selling, and most profitable electric vehicles (EVs) will be in the off-highway sector - Peter Harrop, Chairman and Founder, IDTechEx

Source: IEA, RBC, and other secondary sources

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Charging Infrastructure

Growing adoption of EVs has created a need for better deployment of charging infrastructure. Access to EV charging infrastructure is one of the major barriers in the path of discovery of complete potential in e-mobility. EV charging value chain is in its growth stage and is supposed undergo an evolvement in future, with expansion of the market with increased participation of active players.

• Charging stations and charging points are the major part of value chain infrastructure facilitating the EV charging. Further, EV chargers could be classified by three main types:

AC Level 1 AC Level 2 DC Fast Charger

hours 8–12 hours 4–6 hours 0.5 for 80% charge • Charging speed of slow chargers remains a concern as a normal AC Level 1 charger requires 8-12 hours battery and AC Level charger requires 4-6 hours to completely charge depleted battery, while DC Fast chargers deliver DC power and bypasses the vehicle’s on-board AC-DC converter and requires 30 minutes to charge 80% of fully depleted battery • Despite the lower cost of slow charger, the longer time periods required to park the car for charging hinders the utility of EV cars

Charging Points

• Approximately 5.2 million charging points are in Public Charging Outlets existence till the end of 2018 globally. The count of charging points was up by 44% from 2017 800 • Majority of growth came from the installation of private charging points. Almost 90% of the new 632 installation in 2018 i.e., 1.6 million private charging 600 526 points were installed during the year • Whereas, the number of publicly available chargers 371 grew by 20% in 2018 compared to the growth of 24%, 400 30%, and 80% in 2017, 2016, and 2015 respectively

• The count of public chargers installed globally remains (in thousand units) 193 632,000 till 2018. Further, ratio of public chargers per 200 136 101 electric car has declined from 0.14 in 2017 to 0.11 in 77 2018 • Out of totally installed public chargers till 2018, the 0 count of fast chargers was 26.7%. Whereas, rest 73.3% 2012 2013 2014 2015 2016 2017 2018 were slow chargers

Source: Capgemini, McKinsey, Deloitte and other secondary sources

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Charging Points: Regional Analysis

• China accounts for more than 50% of publicly installed EV chargers globally, with almost 78% of total fast public chargers and 41% of total slow public chargers • The installation rate of slow public chargers was higher when compared to fast public chargers in European region and US • The ratio of EV per public charger is 20 in US and Norway, despite their heavy EV adoption rate • Whereas, the ratio of public chargers to EV is 4-8 in Denmark and Netherlands • For private chargers, China and Japan have ratio of 1.5 EVs per private charger • Whereas, other countries excluding China and Japan have ratio of 1.1 private charger per EV

2018 1% 1% 1% China 2% 13% Japan 2% 7% United States 3% 9% United Kingdom 41% 5% 3% Germany 6% France 6% Norway 4% Netherlands 78% 5% 13% Other

Insufficient charging infrastructure poses a key challenge for EV adoption

• Increased adoption of EVs has resulted Charging-energy Demand for EVs (in billion kilowatt-hours) in higher energy requirements in near future. The energy requirement will 271 cross ~270bn kilowatt-hours by 2030. • This will require heavy investments in China 139 charging infrastructure to meet up with the increased energy demand • Current charging infrastructure seems 92 European 79 to be a concern factor as the EV per Union public charger ratio globally is still 44 above 10. 25 United 4 8 18 53 23 States • Developed nations like US and Norway 6 2020 2025 2030 have EV per public charger ratio of more than 20 I think the biggest problem with charging stations is there is no • These issues related to charging one responsible for installing charging stations infrastructure stops EV to reach full -Nick Sifuentes (Executive director, Tri-State Transportation Campaign) potential of its driving range

Source: IEA, McKinsey, Deloitte

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Charging Infrastructure Investments

• According to a study conducted by McKinsey, The industry may need to invest $50 billion in the four regions the combined charging-energy demand in studied through 2030 to meet the need for chargers. China, EU, and US is expected to reach 280 billion kilowatt by 2030. This will require Estimated number of Estimated capital investment of approximately USD50 bn in chargers,1 investment, segment of chargers in these regions (million units) 42 (USD bn) • 95% of chargers will be installed in a personal space, with almost 70% of the total investment required for covering the energy requirements 13 United 11 in personal space States • China is expected to install 14 million chargers to meet energy demand of around 139 billion kilowatt by 2030. This will require around 14 China 19 USD11 bn investment for EV chargers in China 19

• As per estimates, US is supposed to install 13 6 million chargers by 2030 to fulfill the energy European demand of around 139 billion kilowatt. 17 Anticipated investment for this is around 5 Union 15 USD11 bn 5 2 8 • Further, European Union is expected to invest 1 USD17 bn with installation of around 15 million 1 chargers by 2030 to meet the energy demand 2020 2025 2030 of around 79 billion kilowatt

Key Players

• Heavy collaboration and competition is observed in automakers, government agencies, charging network companies, private players, electrical utilities, and oil companies for the deployment of EV charging infrastructure • The heavy initial investments, uncertain future demand, and heavy competition from private home chargers is refraining the growth of profitable business models in EV charging segment

Source: McKinsey

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Cost Structure: BEVs vs ICE Vehicles

• ICEs power majority of cars worldwide; however, vehicle dynamics are changing with the technology advancements that is supporting surge in vehicle production. • EVs are gaining stronghold due to various advantages over ICE vehicles that include faster movement due to higher torque at the beginning, lower maintenance due to the removal of moving parts, nearly zero emission from the tail-pipe that offers an environment-friendly vehicle in a world where most of countries are fighting against negative climate changes

ICE Electric Engine

Cost Gap Analysis: ICE Vehicles vs EVs in 2019 • Currently, cost gap between ICE vehicles and EVs stands at nearly USD12,000 • However, continuous focus on reducing cost through decontenting, targeting specific customer segments, partnering with other automakers to reduce R&D and capital expenditures, enhancing range for urban mobility, and exploring battery leasing alternatives will allow the market participants to collectively accelerate the industry towards profitability 34-35 ~2.5 ~2.5 Difference in 9.5-10.5 Power indirect cost 12-13 12 electronics and because of 22.5 e-motor volume 3 19.5

Remove Assumed 50-kWh3 11 Direct 14 ICE-related content battery-pack cost at 11 $190-$210 per kWh

11 Indirect2 8.5 8.5

Base ICE-vehicle Base ICE-vehicle total cost without Base EV total total cost ICE-related content cost Estimated average price per vehicle, USD ‘000 Source: Suntech Auto Glass, BCG Study (April 2019): The Future of Battery Production for Electric Vehicles

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Cost Reduction Initiatives for EVs • With the continuous efforts for bringing down the EV costs, the cost of EVs could be significantly scaled down at competitive levels when compared with ICEs

34.5 1.8-2.4 5.7-7.1 0.5-0.6 1.9-2.1 Battery pack, 1.5-2 power Design Final assembly 27.4- 4.9-6.3 electronics, simplifications optimization Optimizing 28.8 for urban Partnership and e-motor and value- 22.5 neutral mobility during 3 decontenting2 transition Gap remains for EV cost to Direct break even with ICE- vehicle cost

Indirect1

Base EV Cost-reduction levers Base EV adjusted Base ICE4-Vehicle total cost total cost total cost Estimated average price per vehicle, USD ‘000

Source: BCG Study (April 2019): The Future of Battery Production for Electric Vehicles

Comparative Case of Ownership Costs: ICEV vs BEV Canada’s highest-selling ICE vehicles are compared below with an equivalent battery-powered alternatives having similar size, features and quality

2019 Honda Civic LX 2019 Toyota RAV4 2019 Hyundai Kona 2019 Nissan LEAF S (Automatic) XLE Electric

Sticker price: USD23,770 Sticker price: USD36,798 Sticker price: USD33,690 Sticker price: USD36,798 Fuel consumption Fuel consumption Fuel consumption Fuel consumption - 2.0 eLitrs 7.1 ltrs per 100 km 2.1 eLitrs per 100 km 7.8 ltrs per 100 km per 100 km Battery capacity - n/a Battery capacity - 40 kWh Battery capacity - n/a Battery capacity - 64 kWh Range - n/a Range - 242 km Range - n/a Range - 415 km Charging time - n/a Charging time - 8 hours (240V) Charging time - n/a Charging time – 9.5 hrs (Lvl 2) Engine size - 2.0 ltrs, 4 cylinders Engine size - 110 kilowatts Engine size - 2.5 ltrs, 4 cylinders Engine size - 150 kilowatts Horsepower - 158 Horsepower - 147 Horsepower - 203 Horsepower - 201 Torque - 138 pound-feet Torque - 236 pound-feet Torque - 184 pound-feet Torque - 290 pound-feet Passenger volume - 2,769 ltrs Passenger volume - 2,616 ltrs Passenger volume - 2,746 ltrs Passenger volume - 2,618 ltrs. Cargo volume - 428 ltrs Cargo volume - 668 ltrs Cargo volume - 1,061 ltrs Cargo volume - 544 ltrs

The analysis clearly signifies that Hyundai Kona Electric, and Nissan LEAF S have clear edge in terms of total cost of ownership, while comparing with their ICE counterparts.

Source: Deloitte

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Future EV Technology Up-gradation

The rapidly changing technology landscape in terms of EVs will see the addition of a range of supplementary technologies in addition to improved battery technology.

Rear/front view camera system UDAR/Radar Systems (ADAS) and forward-looking Sensor / System (ADAS) imagers Communication Bus • Custom sensors • Power over Coax power Multi-function antenna • Chip inductors injection chokes systems • Power inductors for switching • Common made chokes • Chip inductors for impedance power supplies for Ethernet/CAN matching

LED backlight/display screen Telematics • Backlight power inductors • Chip inductors for impedance matching and filtering sections Instrument Cluster • Power inductors for power supplies • Power inductors • Common made chokes for data line filtering Class-D Audio • Dual inductors Adaptive Cruise Control with low coupling (ACC, ADAS) factor • Power inductors for power • Coupled power supplies inductors Mobile Device Wireless Supplemental Charging restraint system • Inductors for efficient (SRS, Airbag) DC-DC converters • Power inductors for • Common made chokes air bag control module • Inductors for L-C filters • Chokes for squib • Current sensing connector transformers

Electric Power Steering (EPS) • High pack current inductors • Signal level inductors • Custom high current LED Lighting common made chokes • Power inductors for voltage divider and current divider drivers HEV/EV power systems including On-board chargers (OBC) • High current power magnetics Tire Pressure Monitoring Engine Control Modules (ECU) for DC-DC converters • System (TPMS) High current power inductors • Power inductors, gate drive • • RFID coils for LF circuit wake-up Custom transformers transformers for control circuits • • Chip inductors for Q matching Custom inductors for power • Power inductors and line filtering transformers for battery pack monitoring and charging • Custom transformers and power inductors Source: Deloitte

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Key Trends and Growth Drivers

41 NEWSLETTER: INDUSTRIALS – –ELECTRICELECTRIC VEHICLES VEHICLES www.globalma.com Trends, Growth Drivers and Challenges

Key Trends in the EV Market

Advanced Creative Design EV manufacturers are transforming the structure of vehicles in line with dynamic demands of buyers. In addition to the innovative technology, the manufacturers are focusing on enhancing design, efficient utilization of space for fuel cells and batteries, and enhanced safety standards. EV manufacturers are catering to such demands by reducing development time, and product lifecycles to offer unique vehicle variants.

Intelligent Vehicles The vehicle manufacturers are taking constructive steps to further advance the vehicle driving experiences by introducing autonomous, self-driving vehicles. For instance, Einride, the Swedish company that introduced the T-pod and T-log, developed a system to enable an operator to remotely control multiple self-driving trucks at once. Such advanced feature significantly reduces the manpower, enhances efficiency and reinvent whole markets.

Increased Range ICEs offer better speed, convenience, and refueling options; however, EVs are lagging behind the ICE against these benefits, which is a major barrier with EVs that offer limited range of output. EV infrastructure is not fully established worldwide and charging stations are not installed in the close proximity with one another due to which the vehicles run out of power faster. Contrary to these challenges, the technology developers are working on probable solutions that include installation of range-extending hybrids, and introduction of solar-powered car.

Growing EV Production Globally, manufacturers are increasing production volume of EVs, which offer delivers comparatively efficient operational and maintenance than traditional cars. Such traits allow EV producers to capitalize on the growing demand make these vehicles easily available to the customers. Further, EV powertrains are simple and provide interchangeable components that enable manufacturers to work on additional details including such as design, ergonomics and in-turn cater to customer requirements.

Electrify ICE Major OEMs who develop ICE-based vehicles, are shifting their focus towards EVs and identifying efficient ways to convert their ICE-powered vehicles to hybrid or fully electric vehicles. The EV design teams of such OEMs are looking beyond EV-only products and using advanced PLM tools to figure ways to work smarter, analyze vehicle designing and perform comprehensive simulation across various environments to find efficient ways for ICE-to-EV conversions.

Using PLM to Speed Up EV Innovation Premium automotive brands such as BMW, Tesla and Faraday Future have enhanced their EV value chain using Product Lifecycle Management (PLM) software solutions. These participants are using PLM technology to precisely track and collaborate on all stages of product development including idea conceptualization, consumer/market buy-in, and customer delivery. These OEMs are working on immediately changing the designing with a few clicks and simulating the results to make it easier and faster to experiment new ideas. For instance, Tesla Motors utilized Dassault Systems’ software solutions since its inception and is standardizing on Version 6 PLM as its sole development platform.

Source: Deloitte

42 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Trends, Growth Drivers and Challenges

Growth Drivers Growth Drivers Reduced battery costs • High demand for batteries is leading to technical advancements and economies of scale. These developments are resulting in drastic decline in Battery cost will battery costs. Also in future battery costs will continue declining, making EVs to shift to a further affordable range reduce by 15-20% • Despite the short-term moments in price of batteries, the battery prices are expected to fall from current level of USD176/kWh to USD87/kWh in 2025 and every year, as per USD62/kWh in 2030. As per a study by JP Morgan, rapid reduction of 15-20% in battery price is expected allowing China to produce EV and ICE vehicle at a JP Morgan cost parity by 2020

Launch of new models BEV and PHEV models • Major players are planning to launch new models to 600 511 comply with increased regulations for CO2-emission in 500 different countries. China has introduced New-Energy 421 Vehicle (NEV) whereas Europe mandated limits related 400 335 to Corporate Average Fuel Consumption (CAFC) 263 300 • Another reason behind these new launches is the 200 162 expectation of fierce competition in near future (in (in units) 96 100 • OEMs are expected to launch 66 new EV models in 2019 and 101 models in 2020. Availability of these new 0 options will further allow EV OEMs to capture the 2018 2019 2020 2021 2022 2023 market share of the traditional ICE technology vehicles

Regulatory boost/pressure • Zero emission vehicle (ZEV) mandates and strict regulations related to fuel economy are boosting the demand for EV. For instance, the fleet average CO2 emission targets in Europe will require at least 10% of market share to be captured by PHEVs and BEVs by 2025 • Financial incentives provided by local governments are providing traction to EV demand. Various local governments are providing subsidies, VAT and vehicle registration tax exemptions on purchase of EV and EV chargers to incentivize the EV buyers. These incentives are making EV to compete the ICE vehicles on pricing

Canada China European Union India Japan USA(1)

ZEV mandate ✓ ✓ ✓ Regulations (vehicles) Fuel economy standards ✓ ✓ ✓ ✓ ✓ ✓

Incentives (vehicles) Fiscal incentives ✓ ✓ ✓ ✓ ✓

Targets (vehicles) ✓ ✓ ✓ ✓ ✓ ✓

Industrial policies Subsidy ✓ ✓ ✓

Incentives (chargers) Fiscal incentives ✓ ✓ ✓ ✓ ✓

Targets (chargers) ✓ ✓ ✓ ✓ ✓ ✓

Source: McKinsey, BNEF, JP Morgan, Deloitte, IEA, and other secondary sources Note: (1) The regulations, incentive and targets are provided by few states and is not applicable across the country

43 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Trends, Growth Drivers and Challenges

Rising fuel prices • Spike in fuel prices have led consumers to seek for alternatives for the traditional ICE. The price of Gasoline, Diesel and GrowthCrude Oil increased Drivers12%, 14% and 32% in 2019 respectively. • Various local authorities declined their fuel subsidies and further introduced significant taxes resulting in increased prices for the end consumers • Deepening supply-side issues from Middle East region have further lead to increase in price Global Annual Fuel Price Changes (%) 40% 32% 30% 24% 20% 12% 14% 10% 8% 8%

0%

-10% -7% -8% -20% -17% 2016 2017 2018 Gasoline Diesel Crude Oil

Improving driving range

• Driving range of EV was considered one of the major barrier but due to model advancements the driving range has significantly improved • The new models to be launched in next 2 years by Nissan, Tesla and Porsche will have driving range between 400-1000 kilometers. Tesla next gen Roadster being the leader with driving range above 1000 kilometers • These advancements will lead to increased adoption of EV as better driving range allows EV to be preferred for long trips which previously was a major hurdle in the way of EV adoption

Driving range of the next gen BEVs (NEDC cycle)

Tesla next gen 1000 Roadster ID. VIZZION 600 Buick Enspire Polestar 2 550 Audi e-tron Porsche Taycan 500 Daimler/BYD Mercedes-Benz ID. Crozz Genesis Essentia Denza 500 EQC Jaguar I-PACE Kia e-Niro Ford Mach 1 450 Hyundai Kona Driving range (km) rangeDriving 400 Renault Zoe Nissan Leaf ID. Concept

0 2018 2019 2020 2021 2022 2023 Hyundai-Kia Daimler AG Tata Motors Volkswagen Group Renault Nissan Geely Ford Tesla General Motors

Source: IEA and Deloitte

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Valuation and Share Price Analysis

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Trading Comparables – Global Automotive Industry

(in US$m) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Automotive OEMs Toyota Motor Corp. $236,534 $375,400 1.4x 1.4x 1.4x 11.5x 11.3x 10.9x 12.0x 11.7x 10.9x Volkswagen AG Pref 100,848 93,526 0.4x 0.3x 0.3x 2.6x 2.5x 2.4x 7.0x 6.4x 6.2x Tesla Inc 98,630 109,328 5.1x 4.5x 3.7x 47.5x 40.9x 26.8x NM NM 89.9x Daimler AG 55,091 43,697 0.2x 0.2x 0.2x 2.3x 3.0x 2.8x 6.6x 10.3x 9.1x Bayerische Motoren Werke AG 51,081 112,043 1.0x 1.0x 1.0x 7.8x 8.1x 7.7x 6.3x 8.6x 7.4x General Motors Company 49,993 45,990 0.3x 0.3x 0.3x 3.2x 3.9x 3.1x 5.4x 6.9x 5.5x Honda Motor Co., Ltd. 49,987 97,256 0.7x 0.7x 0.7x 8.7x 9.3x 8.8x 7.6x 8.9x 8.0x SAIC Motor Corporation Limited 39,070 56,415 0.4x 0.5x 0.5x 9.1x 7.3x 7.0x 7.4x 10.0x 8.7x Ford Motor Company 36,517 28,494 0.2x 0.2x 0.2x 2.4x 2.7x 2.4x 7.0x 7.4x 7.0x Nissan Motor Co., Ltd. 24,362 17,110 0.2x 0.2x 0.2x 2.0x 2.6x 2.6x 5.9x 14.4x 11.9x Suzuki Motor Corp. 22,670 23,167 0.7x 0.7x 0.7x 5.2x 6.2x 6.1x 13.2x 15.4x 14.8x Fiat Chrysler Automobiles N.V. 21,450 19,010 0.1x 0.2x 0.2x 1.3x 1.5x 1.5x 3.7x 4.1x 4.5x Hyundai Motor Company 21,421 72,413 0.8x 0.8x 0.8x 13.2x 11.4x 9.8x 15.5x 7.7x 5.8x BYD Company Limited Class H 20,257 31,084 1.7x 1.7x 1.5x 13.5x 16.7x 15.2x 49.0x 81.1x 65.6x SUBARU CORP 20,018 14,452 0.5x 0.5x 0.5x 4.7x 4.7x 4.0x 11.9x 12.1x 9.7x Peugeot SA 19,602 14,006 0.2x 0.2x 0.2x 1.6x 1.4x 1.5x 5.8x 5.1x 4.8x Geely Automobile Holdings Limited 16,651 21,790 1.4x 1.6x 1.4x 8.8x 11.1x 10.0x 8.8x 13.3x 11.0x KIA Motors Corporation 14,449 12,623 0.3x 0.3x 0.2x 4.6x 3.7x 3.5x 14.1x 8.3x 7.3x High 5.1x 4.5x 3.7x 47.5x 40.9x 26.8x 49.0x 81.1x 89.9x Average 0.9x 0.8x 0.8x 8.3x 8.2x 7.0x 11.0x 13.6x 16.0x Median 0.5x 0.5x 0.5x 5.0x 5.5x 5.1x 7.4x 8.9x 8.4x Low 0.1x 0.2x 0.2x 1.3x 1.4x 1.5x 3.7x 4.1x 4.5x

Auto Lighting Equipment Koito Manufacturing Co., Ltd. $7,505 $5,514 0.7x 0.7x 0.7x 4.3x 4.6x 3.8x 11.0x 13.0x 12.3x HELLA GmbH & Co. KGaA 5,712 5,933 0.7x 0.8x 0.8x 5.1x 5.7x 5.8x 9.6x 11.5x 14.7x Stanley Electric Co., Ltd. 4,945 4,120 1.0x 1.1x 1.1x 5.1x 5.4x 4.8x 14.0x 15.9x 14.5x Changzhou Xingyu Automotive Lighting 4,046 3,844 5.0x 4.5x 3.7x 32.2x 26.6x 21.2x 44.6x 37.8x 29.8x CUB Elecparts, Inc. 1,036 1,074 8.0x 7.7x 6.4x 22.7x 20.6x 16.9x 28.8x 25.7x 19.8x Ichikoh Industries,Ltd. 661 721 0.6x 0.6x 0.6x 4.6x 4.5x 4.0x 7.5x 13.6x 10.8x Thai Stanley Electric Public Co., Ltd. 436 321 0.7x 0.7x 0.6x 3.3x 3.2x 3.1x 7.4x 7.1x 7.1x Depo Auto Parts Industrial Co. Ltd. 334 780 1.5x NA NA 5.8x NA NA 10.7x NA NA TYC Brother Industrial Co, Ltd. 296 674 1.2x 1.1x 1.1x 10.1x NA NA 14.7x 12.9x 12.3x Ta Yih Industrial Co., Ltd. 164 174 0.9x NA NA 12.2x NA NA 16.0x NA NA High 8.0x 7.7x 6.4x 32.2x 26.6x 21.2x 44.6x 37.8x 29.8x Average 2.0x 2.2x 1.9x 10.5x 10.1x 8.5x 16.4x 17.2x 15.2x Median 1.0x 0.9x 0.9x 5.5x 5.4x 4.8x 12.5x 13.3x 13.4x Low 0.6x 0.6x 0.6x 3.3x 3.2x 3.1x 7.4x 7.1x 7.1x

Auto Metal Stamping Plastic Omnium SA $4,143 $5,574 0.7x 0.6x 0.6x 5.4x 5.8x 5.2x 9.4x 12.4x 10.9x CIE Automotive, S.A. 3,024 5,304 1.5x 1.3x 1.2x 8.8x 7.9x 7.1x 11.7x 9.7x 8.7x Topre Corporation 856 990 0.5x 0.5x 0.5x 3.1x NA NA 5.9x 7.5x 7.1x Marcopolo SA Pfd 713 905 0.8x 0.9x 0.8x 9.4x 11.8x 8.8x 15.1x 14.4x 10.1x G-Tekt Corporation 686 992 0.4x NA NA 3.0x NA NA 7.0x NA NA Unipres Corporation 674 898 0.3x 0.3x 0.3x 2.5x 3.0x 2.9x 5.4x 9.6x 9.4x Lingyun Industrial Corp. Ltd. 643 1,328 0.7x NA NA 6.8x NA NA 15.9x NA NA Futaba Industrial Co., Ltd. 601 1,371 0.3x 0.3x 0.3x 5.2x 4.6x 4.2x 12.5x 10.4x 8.1x H-One Co., Ltd. 207 651 0.4x 0.4x 0.4x 3.1x 4.1x 4.4x 4.9x 8.5x 10.0x High 1.5x 1.3x 1.2x 9.4x 11.8x 8.8x 15.9x 14.4x 10.9x Average 0.6x 0.6x 0.6x 5.3x 6.2x 5.4x 9.8x 10.4x 9.2x Median 0.5x 0.5x 0.5x 5.2x 5.2x 4.8x 9.4x 9.7x 9.4x Low 0.3x 0.3x 0.3x 2.5x 3.0x 2.9x 4.9x 7.5x 7.1x

Source: FactSet as of January 21, 2020; Financials calendarised to December; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

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(in US$mm) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Auto Safety Equipment Veoneer, Inc. $1,512 $865 0.4x 0.5x 0.4x NM NM NM NM NM NM HMT (Xiamen) New Technical Materials 660 588 4.0x NA NA 11.4x NA NA 15.8x NA NA Shoei Co. Ltd. 637 553 3.5x 3.2x 3.1x 12.9x 11.8x 11.1x 26.8x 23.1x 21.5x Mosa Industrial Corp. 238 316 3.6x 3.5x 3.4x 10.4x 9.5x 10.1x 14.5x 13.7x 13.2x Ashimori Industry Co., Ltd. 77 154 0.3x NA NA 3.8x NA NA 8.0x NA NA TUS International Limited 61 154 2.6x NA NA NM NA NA NM NA NA High 4.0x 3.5x 3.4x 12.9x 11.8x 11.1x 26.8x 23.1x 21.5x Average 2.4x 2.4x 2.3x 9.6x 10.6x 10.6x 16.3x 18.4x 17.3x Median 3.1x 3.2x 3.1x 10.9x 10.6x 10.6x 15.1x 18.4x 17.3x Low 0.3x 0.5x 0.4x 3.8x 9.5x 10.1x 8.0x 13.7x 13.2x

Automotive Engineering & Tech Hyundai Mobis Co., Ltd $19,681 $12,880 0.4x 0.4x 0.4x 5.3x 4.9x 4.6x 11.7x 9.5x 8.4x Siix Corporation 668 935 0.4x 0.5x 0.4x 8.0x 9.7x 7.9x 11.5x 17.1x 13.8x Bertrandt AG 615 750 0.6x 0.6x 0.6x 6.5x 7.0x 5.7x 12.1x 14.3x 12.3x Intron Technology Holdings Ltd. 317 307 1.0x 0.8x 0.7x 9.7x 7.9x 6.4x 11.8x 11.4x 9.3x EDAG Engineering Group AG 277 604 0.7x 0.7x 0.7x 7.6x 7.5x 6.5x 8.8x 15.0x 10.8x TeleNav, Inc. 236 122 0.7x 0.5x 0.5x NM NM 24.9x NM NM NM Semcon AB 129 135 0.7x 0.7x 0.6x 9.4x 6.5x 6.0x 12.7x 11.4x 10.2x Pininfarina S.p.A. 99 112 0.9x 1.1x 1.0x 7.9x NM 19.0x 40.4x NM NM High 1.0x 1.1x 1.0x 9.7x 9.7x 24.9x 40.4x 17.1x 13.8x Average 0.7x 0.7x 0.6x 7.8x 7.3x 10.1x 15.6x 13.1x 10.8x Median 0.7x 0.7x 0.6x 7.9x 7.2x 6.4x 11.8x 12.9x 10.5x Low 0.4x 0.4x 0.4x 5.3x 4.9x 4.6x 8.8x 9.5x 8.4x

Body & Chassis Gestamp Automocion S.A. $2,569 $6,427 0.6x 0.6x 0.6x 6.0x 5.6x 5.1x 8.8x 10.3x 9.0x Jiangnan Mould & Plastic Technology Co., 1,215 1,595 2.1x NA NA NM NA NA NM NA NA Tianjin Motor Dies Co. Ltd. 777 947 2.8x NA NA 24.8x NA NA 24.2x NA NA Huazhong In-Vehicle Holdings Co. Ltd. 219 314 1.1x NA NA 8.4x NA NA 10.4x NA NA MS Autotech Co., Ltd. 188 609 0.8x NA NA 8.1x NA NA 59.0x NA NA Y.C.C. Parts Mfg. Co., Ltd. 138 154 1.6x NA NA 6.3x NA NA 13.5x NA NA High 2.8x 0.6x 0.6x 24.8x 5.6x 5.1x 59.0x 10.3x 9.0x Average 1.5x 0.6x 0.6x 10.7x 5.6x 5.1x 23.2x 10.3x 9.0x Median 1.3x 0.6x 0.6x 8.1x 5.6x 5.1x 13.5x 10.3x 9.0x Low 0.6x 0.6x 0.6x 6.0x 5.6x 5.1x 8.8x 10.3x 9.0x

Brake Systems ITT, Inc. $6,341 $6,003 2.2x 2.1x 2.0x 12.7x 11.3x 10.6x 22.1x 19.2x 18.0x Brembo S.p.A. 4,121 4,603 1.5x 1.6x 1.5x 8.2x 8.1x 8.1x 14.4x 15.8x 15.2x Mando Corp 1,438 2,841 0.6x 0.6x 0.5x 6.7x 6.6x 6.0x 14.8x 11.9x 9.7x Nissin Kogyo Co., Ltd. 1,329 1,215 0.7x 0.7x 0.7x 5.3x NA NA 43.1x 19.1x 16.3x Shandong Gold Phoenix 580 535 2.6x 2.2x 1.9x 22.4x 11.7x 10.0x 43.5x 18.9x 16.2x Zhejiang VIE Science & Technology 567 607 1.8x NA NA 18.4x NA NA NM NA NA Zhejiang APAC Mechanical & Electronic 548 721 1.2x NA NA 20.1x NA NA NM NA NA Shenzhen Terca Technology 386 374 20.2x NA NA NM NA NA NM NA NA Shandong Longji Machinery 367 324 1.1x NA NA 9.9x NA NA 29.9x NA NA AKEBONO BRAKE INDUSTRY 296 652 0.3x NA NA 4.5x NA NA NM NA NA Haldex AB 235 331 0.6x 0.6x 0.6x 7.9x 7.6x 6.0x 11.0x 11.4x 14.0x Bosch Fren Sistemleri Sanayi ve Ticaret A.S. 132 131 2.9x NA NA 16.1x NA NA 18.7x NA NA TBK Co., Ltd. 129 205 0.4x NA NA 3.8x NA NA 13.7x NA NA High 20.2x 2.2x 2.0x 22.4x 11.7x 10.6x 43.5x 19.2x 18.0x Average 2.8x 1.3x 1.2x 11.3x 9.1x 8.1x 23.5x 16.1x 14.9x Median 1.2x 1.2x 1.1x 9.1x 8.1x 8.1x 18.7x 17.3x 15.7x Low 0.3x 0.6x 0.5x 3.8x 6.6x 6.0x 11.0x 11.4x 9.7x

Source: FactSet as of January 21, 2020; Financials calendarised to December; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

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(in US$m) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Drivetrain Components

Aisin Seiki Co Ltd $10,630 $18,291 0.5x 0.5x 0.5x 4.6x 5.7x 5.2x 10.2x 19.3x 13.6x Wanxiang Qianchao Co., Ltd. 2,407 2,596 1.5x NA NA 15.5x NA NA 22.0x NA NA Dana Incorporated 2,405 4,882 0.6x 0.6x 0.6x 5.1x 4.8x 4.7x 5.5x 5.5x 5.5x Linamar Corporation 2,381 3,845 0.7x 0.7x 0.7x 4.4x 4.6x 4.6x 5.5x 6.5x 6.5x F.C.C.Co., Ltd. 1,148 945 0.6x 0.6x 0.6x 3.7x 3.6x 3.3x 11.3x 11.6x 10.3x Exedy Corporation 1,062 1,135 0.4x 0.5x 0.5x 3.3x 3.5x 3.4x 8.6x 10.6x 10.2x American Axle & Manufacturing Holdings 1,056 4,477 0.6x 0.7x 0.7x 3.8x 4.6x 4.4x 2.8x 6.2x 4.3x Hota Industrial Manufacturing Co., Ltd. 1,043 1,318 5.6x 6.4x 5.3x 21.4x 26.6x 21.6x 25.7x 41.8x 29.1x Delphi Technologies Plc 907 2,556 0.5x 0.6x 0.6x 3.4x 4.9x 4.9x 2.3x 4.5x 5.1x Musashi Seimitsu Industry Co., Ltd. 859 1,519 0.7x 0.7x 0.7x 5.0x 5.5x 5.3x 9.4x 12.6x 12.1x Tianrun Crankshaft Co., Ltd. 614 795 1.6x NA NA 7.4x NA NA 11.9x NA NA Zhejiang Shuanghuan Driveline Co., Ltd. 562 1,028 2.2x NA NA 11.0x NA NA 19.3x NA NA Zhejiang Tieliu Clutch Co. Ltd. 278 256 1.8x NA NA 15.6x NA NA 22.1x NA NA SNT Corporation 240 149 0.7x NA NA 5.8x NA NA 19.3x NA NA

High 5.6x 6.4x 5.3x 21.4x 26.6x 21.6x 25.7x 41.8x 29.1x Average 1.3x 1.2x 1.1x 7.9x 7.1x 6.4x 12.6x 13.2x 10.7x Median 0.7x 0.6x 0.6x 5.0x 4.8x 4.7x 10.8x 10.6x 10.2x Low 0.4x 0.5x 0.5x 3.3x 3.5x 3.3x 2.3x 4.5x 4.3x

Engines & Parts

Rheinmetall AG $5,180 $6,041 0.8x 0.9x 0.8x 6.6x 7.1x 6.9x 14.9x 15.4x 15.2x Kuang-Chi Technologies Co., Ltd. 2,763 1,882 27.2x NA NA NM NA NA NM NA NA Nemak SAB de CV 1,381 2,566 0.5x 0.6x 0.6x 3.6x 3.9x 3.8x 7.8x 10.9x 9.7x Mahle-Metal Leve S.A. 967 1,016 1.4x 1.7x 1.6x 8.2x 9.4x 8.9x 12.5x 16.8x 15.6x Chongqing Zongshen Power Machinery Co. 953 1,086 1.2x NA NA 11.6x NA NA 16.9x NA NA Sichuan Haowu Electromechanical Co., Ltd. 446 501 5.3x NA NA 34.5x NA NA 37.2x NA NA Aisan Industry Co., Ltd. 435 511 0.3x 0.3x 0.3x 2.9x 3.0x 2.9x 8.4x 9.5x 8.9x Riken Corporation 393 437 0.5x NA NA 4.0x NA NA 8.9x NA NA Nanjing YueBoo Power System Co., Ltd. 266 363 4.9x NA NA NM NA NA 82.9x NA NA Motonic Corporation 248 (2) NM NA NA NM NA NA 27.9x NA NA Parsan Makina Parcalari Sanayii Anonim 242 407 4.0x NA NA 15.0x NA NA NM NA NA Sirketi Ruifeng Power Group Co., Ltd. 153 157 1.7x NA NA 6.6x NA NA 9.9x NA NA SHW AG 142 195 0.4x NA NA 4.4x NA NA 38.5x NA NA

High 27.2x 1.7x 1.6x 34.5x 9.4x 8.9x 82.9x 16.8x 15.6x Average 4.0x 0.9x 0.8x 9.7x 5.8x 5.6x 24.2x 13.2x 12.3x Median 1.3x 0.7x 0.7x 6.6x 5.5x 5.4x 14.9x 13.2x 12.5x Low 0.3x 0.3x 0.3x 2.9x 3.0x 2.9x 7.8x 9.5x 8.9x

HVAC Systems

Hanon Systems $5,054 $7,104 1.3x 1.2x 1.1x 12.2x 9.3x 8.2x 20.4x 18.9x 16.4x Fujian Snowman Co., Ltd. 866 998 5.1x NA NA 52.1x NA NA NM NA NA Songz Automobile Air Conditioning Co., Ltd. 467 548 1.0x NA NA 18.4x NA NA 17.6x NA NA Zhejiang Yilida Ventilator Co., Ltd. 376 566 2.5x NA NA 24.8x NA NA 96.8x NA NA Changzhou Langbo Seal Polytron Tech. 344 316 12.2x NA NA 49.5x NA NA 75.4x NA NA Raval ICS Ltd. 280 388 1.6x NA NA 13.5x NA NA NM NA NA SANDEN HOLDINGS CORP 189 1,367 0.5x 0.7x 0.8x 11.4x NA 12.9x NM 19.2x 6.5x WOORY INDUSTRIAL CO.,LTD 165 215 0.7x 0.7x 0.7x 8.6x 9.2x 8.2x 15.4x 21.4x 13.8x T.RAD Co., Ltd. 148 208 0.2x NA NA 1.9x NA NA 7.3x NA NA

High 12.2x 1.2x 1.1x 52.1x 9.3x 12.9x 96.8x 21.4x 16.4x Average 2.8x 0.9x 0.9x 21.4x 9.2x 9.8x 38.8x 19.8x 12.2x Median 1.3x 0.7x 0.8x 13.5x 9.2x 8.2x 19.0x 19.2x 13.8x Low 0.2x 0.7x 0.7x 1.9x 9.2x 8.2x 7.3x 18.9x 6.5x

Source: FactSet as of January 21, 2020; Financials calendarised to December; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

48 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

(in US$m) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Exhausts & Emissions

Dorman Products, Inc. $2,536 $2,519 2.6x 2.5x 2.3x 12.3x 17.2x 12.8x 18.2x 27.4x 20.4x Tenneco Inc. 851 6,699 0.6x 0.4x 0.4x 6.4x 4.6x 4.6x 2.3x 3.1x 3.0x Feilong Auto Components Co., Ltd. 383 496 1.2x 17.9x 15.8x 7.6x NA NA 10.3x 14.4x 12.6x Baumot Group AG 41 40 5.5x 1.9x 1.0x NM 35.3x 13.9x NM 92.6x 16.1x

High 5.5x 17.9x 15.8x 12.3x 35.3x 13.9x 18.2x 92.6x 20.4x Average 2.5x 5.7x 4.9x 8.7x 19.0x 10.5x 10.3x 34.4x 13.0x Median 1.9x 2.2x 1.7x 7.6x 17.2x 12.8x 10.3x 20.9x 14.4x Low 0.6x 0.4x 0.4x 6.4x 4.6x 4.6x 2.3x 3.1x 3.0x

Seating & Trim

Lear Corporation $8,329 $10,169 0.5x 0.5x 0.5x 4.6x 5.7x 5.3x 6.9x 9.9x 9.4x Faurecia SA 6,967 10,124 0.5x 0.5x 0.5x 4.7x 4.0x 3.8x 7.8x 10.0x 8.6x Toyoda Gosei Co., Ltd. 3,210 3,575 0.5x 0.5x 0.5x 5.4x 6.7x 5.1x 15.6x 24.0x 13.4x Toyota Boshoku Corp. 2,964 2,831 0.2x 0.2x 0.2x 3.2x 3.5x 3.3x 10.5x 12.2x 10.7x NHK Spring Co., Ltd. 2,183 2,045 0.3x 0.3x 0.3x 4.2x 4.7x 4.4x 22.9x 27.0x 15.5x TS Tech Co., Ltd. 2,005 929 0.2x 0.3x 0.3x 2.0x 2.2x 2.1x 6.8x 9.1x 9.3x Adient plc 1,947 5,153 0.3x 0.3x 0.3x 4.7x 6.4x 5.9x 6.6x 12.9x 12.1x Ningbo Huaxiang Electronic Co., Ltd. 1,634 1,862 0.8x 0.8x 0.7x 8.0x 7.0x 6.5x 15.0x 12.0x 10.7x Nippon Seiki Co., Ltd. 993 1,281 0.5x 0.6x 0.6x 6.1x 7.0x 7.3x 9.5x 12.8x 14.2x Shanghai Shenda Co., Ltd 834 1,265 0.5x NA NA 16.7x NA NA 44.1x NA NA Changshu Automotive Trim Co., Ltd. 664 889 4.1x NA NA 40.4x NA NA 12.9x NA NA Kuangda Technology Group Co., Ltd. 615 500 1.9x NA NA 8.7x NA NA 17.6x NA NA Tachi-S Co., Ltd. 451 346 0.2x 0.2x 0.1x 2.4x NA 3.3x 13.5x 46.6x 11.7x Grammer AG 431 874 0.4x 0.4x 0.4x 6.0x 4.9x 4.9x 13.2x 9.4x 10.7x Ningbo Shuanglin Auto Parts Co., Ltd. 406 667 0.8x NA NA 9.8x NA NA NM NA NA

High 4.1x 0.8x 0.7x 40.4x 7.0x 7.3x 44.1x 46.6x 15.5x Average 0.8x 0.4x 0.4x 8.5x 5.2x 4.7x 14.5x 16.9x 11.5x Median 0.5x 0.4x 0.4x 5.4x 5.3x 4.9x 13.1x 12.2x 10.7x Low 0.2x 0.2x 0.1x 2.0x 2.2x 2.1x 6.6x 9.1x 8.6x

Steering & Suspension

JTEKT Corporation $4,038 $5,852 0.4x 0.4x 0.4x 4.8x 5.6x 5.2x 13.8x 16.4x 10.3x Nexteer Automotive Group Limited 2,136 1,995 0.5x 0.6x 0.5x 3.2x 3.8x 3.4x 5.8x 8.2x 7.4x KYB Corporation 739 1,315 0.4x 0.4x 0.4x 5.3x NA NA NM NM 8.3x S & T Motiv Co., Ltd. 513 342 0.4x 0.4x 0.4x 4.4x 3.5x 3.2x 10.1x 10.5x 6.9x Zhejiang Shibao Co. Ltd. 431 429 2.5x NA NA 65.6x NA NA NM NA NA Yorozu Corporation 333 633 0.4x NA NA 3.9x NA NA 37.5x NA NA Ege Endustri ve Ticaret A.S. 318 318 2.6x NA NA 6.7x NA NA 4.4x NA NA ADD Industry (Zhejiang) Corp. Ltd. 309 346 2.1x NA NA 18.1x NA NA 20.3x NA NA Shanghai Carthane Co. Ltd. 298 260 3.2x 3.6x 3.0x 12.8x 17.9x 11.6x 15.8x 24.2x 16.5x Somboon Advance Technology 189 129 0.5x 0.5x 0.5x 2.7x 2.6x 2.6x 6.6x 6.5x 6.4x F-Tech Inc. 137 631 0.3x NA NA 3.8x NA NA 4.6x NA NA China Automotive Systems, Inc. 96 148 0.3x 0.3x 0.3x 10.6x 5.5x 5.2x 40.4x 10.3x 10.2x

High 3.2x 3.6x 3.0x 65.6x 17.9x 11.6x 40.4x 24.2x 16.5x Average 1.1x 0.9x 0.8x 11.8x 6.5x 5.2x 15.9x 12.7x 9.4x Median 0.5x 0.4x 0.4x 5.1x 4.6x 4.3x 11.9x 10.4x 8.3x Low 0.3x 0.3x 0.3x 2.7x 2.6x 2.6x 4.4x 6.5x 6.4x

Source: FactSet as of January 21, 2020; Financials calendarised to December; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

49 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

(in US$m) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Tires

Bridgestone Corporation $26,019 $28,283 0.9x 0.9x 0.9x 5.2x 5.6x 5.4x 9.9x 10.8x 12.2x Michelin SCA 22,054 30,103 1.2x 1.1x 1.1x 6.4x 5.7x 5.6x 11.2x 10.8x 10.0x Cheng Shin Rubber Ind. Co., Ltd. 4,575 5,980 1.7x 1.6x 1.6x 9.1x 8.9x 8.4x 26.0x 35.5x 29.0x Nokian Renkaat Oyj 4,066 4,526 2.5x 2.5x 2.5x 8.5x 9.4x 9.0x 12.1x 14.5x 15.0x MRF Limited 4,048 4,000 1.8x 1.7x 1.6x 10.6x 10.4x 9.3x 25.3x 24.4x 19.9x Shandong Linglong Tyre Co., Ltd. 3,975 5,002 2.2x 2.0x 1.8x 13.7x 11.6x 10.1x 22.6x 18.4x 15.1x Goodyear Tire & Rubber Company 3,398 10,187 0.7x 0.7x 0.7x 6.5x 6.3x 5.6x 6.1x 12.6x 7.1x Hankook Tire & Technology Co., Ltd. 3,275 4,241 0.7x 0.7x 0.7x 3.7x 4.2x 3.9x 7.0x 7.6x 7.1x Yokohama Rubber Co., Ltd. 3,128 5,428 0.9x 0.9x 0.9x 6.2x 6.2x 6.4x 9.7x 8.2x 9.1x Sumitomo Rubber Industries, Ltd. 3,080 5,313 0.7x 0.7x 0.6x 5.1x 5.5x 5.3x 9.4x 11.1x 10.4x Toyo Tire Corporation 2,072 3,032 0.9x 0.9x 0.8x 4.9x 5.2x 4.6x 21.7x 10.1x 7.2x Sailun Group Co., Ltd. 1,927 2,506 1.2x 1.1x 1.0x 7.6x 7.5x 6.9x 19.4x 11.2x 9.4x Cooper Tire & Rubber Company 1,432 1,751 0.6x 0.6x 0.6x 5.1x 5.5x 4.2x 13.0x 17.9x 9.8x Nankang Rubber Tire Corp., Ltd. 1,415 1,583 4.7x 4.1x 3.9x 36.6x 19.6x 26.1x NM 36.7x 46.5x Apollo Tyres Limited. 1,405 2,197 0.9x 0.9x 0.8x 8.1x 7.9x 7.1x 11.9x 14.9x 13.2x

High 4.7x 4.1x 3.9x 36.6x 19.6x 26.1x 26.0x 36.7x 46.5x Average 1.4x 1.4x 1.3x 9.2x 8.0x 7.9x 14.7x 16.3x 14.7x Median 0.9x 0.9x 0.9x 6.5x 6.3x 6.4x 12.0x 12.6x 10.4x Low 0.6x 0.6x 0.6x 3.7x 4.2x 3.9x 6.1x 7.6x 7.1x

Diversified Auto Component Suppliers

DENSO CORPORATION $35,867 $35,096 0.7x 0.7x 0.7x 6.3x 6.1x 5.4x 21.9x 17.0x 13.7x Continental AG 24,687 31,202 0.6x 0.6x 0.6x 4.4x 4.7x 4.7x 7.6x 11.3x 9.9x Aptiv PLC 23,231 27,879 1.9x 1.9x 1.8x 11.6x 12.4x 10.8x 16.6x 19.3x 16.8x Magna International Inc. 16,462 21,185 0.5x 0.5x 0.5x 4.7x 5.5x 5.2x 7.1x 8.7x 8.6x HUAYU Automotive Systems Company 12,601 11,940 0.5x 0.6x 0.5x 8.4x 5.9x 5.5x 10.8x 12.8x 11.7x Limited Class A BorgWarner Inc. 8,363 9,730 0.9x 1.0x 0.9x 5.6x 6.0x 5.8x 8.9x 10.4x 10.1x Valeo SA 8,159 12,598 0.6x 0.6x 0.6x 5.4x 5.3x 4.8x 12.0x 19.9x 14.3x Autoliv Inc. 6,954 8,892 1.0x 1.0x 1.0x 6.9x 8.0x 7.0x 11.8x 14.3x 11.8x Bosch Limited 6,188 5,951 3.4x 3.8x 3.6x 18.9x 23.1x 23.2x 27.6x 31.8x 29.6x Motherson Sumi Systems Limited 6,140 7,964 0.9x 0.8x 0.8x 10.2x 10.2x 8.8x 25.5x 25.9x 21.1x Huizhou Desay SV Automotive Co., Ltd. 2,906 2,891 3.6x 4.1x 3.6x 35.1x 62.2x 39.2x 46.9x 88.9x 52.8x Weifu High-Technology Group Co. Ltd. 2,647 2,034 1.6x 1.8x 1.8x 17.8x 8.1x 7.8x 7.5x 8.9x 9.4x Endurance Technologies Ltd. 2,104 2,107 2.0x 2.0x 1.8x 13.5x 12.3x 11.2x 29.9x 24.7x 21.9x Shanghai Daimay Automotive Interior 2,059 2,012 3.1x 2.7x 2.4x 20.2x 16.3x 13.6x 24.4x 21.7x 18.2x Keihin Corp. 1,737 1,655 0.5x 0.5x 0.5x 4.1x 4.7x 4.5x 11.7x 22.7x 21.3x

High 3.6x 4.1x 3.6x 35.1x 62.2x 39.2x 46.9x 88.9x 52.8x Average 1.5x 1.5x 1.4x 11.5x 12.7x 10.5x 18.0x 22.6x 18.1x Median 0.9x 1.0x 0.9x 8.4x 8.0x 7.0x 12.0x 19.3x 14.3x Low 0.5x 0.5x 0.5x 4.1x 4.7x 4.5x 7.1x 8.7x 8.6x

Source: FactSet as of January 21, 2020; Financials calendarised to December; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

50 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Trading Comparables – India

Trading Comparables – India

(in US$mm) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Automotive OEMs

Maruti Suzuki India Limited $31,938 $31,222 2.5x 2.2x 2.0x 16.7x 14.9x 13.3x 26.3x 22.9x 20.1x Mahindra & Mahindra Ltd. 12,833 21,358 2.8x 2.5x 2.3x 20.1x 17.8x 16.4x 18.9x 16.5x 15.5x Bajaj Auto Limited. 11,093 10,569 2.6x 2.3x 2.1x 14.3x 12.9x 12.2x 18.0x 16.2x 14.8x Hero Motocorp Limited 8,465 7,870 1.6x 1.4x 1.3x 10.0x 9.3x 9.0x 15.9x 14.9x 14.1x Tata Motors Limited 8,074 16,825 0.4x 0.3x 0.3x 3.3x 2.9x 2.5x 14.0x 8.8x 5.9x Eicher Motors Limited 7,795 7,350 5.2x 4.4x 3.8x 16.1x 13.7x 11.7x 22.9x 19.5x 17.0x Ashok Leyland Limited 3,894 6,459 1.5x 1.3x 1.3x 14.4x 12.4x 12.6x 15.1x 12.6x 12.6x TVS Motor Company Limited 3,612 4,751 1.9x 1.7x 1.5x 24.2x 19.7x 17.4x 34.1x 27.0x 23.4x Escorts Limited 1,277 1,202 1.5x 1.3x 1.2x 12.2x 10.6x 9.8x 20.1x 17.2x 15.2x Force Motors Limited 302 343 0.7x NA NA 7.8x NA NA 14.2x NA NA VST Tillers Tractors Limited 198 180 1.7x 1.6x 1.4x 14.0x 11.9x 10.2x 14.7x 12.6x 14.1x

High 5.2x 4.4x 3.8x 24.2x 19.7x 17.4x 34.1x 27.0x 23.4x Average 2.0x 1.9x 1.7x 13.9x 12.6x 11.5x 19.5x 16.8x 15.3x Median 1.7x 1.6x 1.4x 14.3x 12.7x 11.9x 18.0x 16.4x 15.0x Low 0.4x 0.3x 0.3x 3.3x 2.9x 2.5x 14.0x 8.8x 5.9x

Automotive Component Suppliers

Bosch Limited $8,107 $7,870 4.3x 3.8x 3.2x 24.4x 21.4x 19.2x 35.2x 30.0x 25.8x Motherson Sumi Systems Limited 7,128 8,953 1.0x 0.9x 0.8x 10.4x 8.8x 7.6x 24.4x 19.0x 15.8x Exide Industries Limited 3,153 2,926 2.0x 1.7x 1.5x 13.5x 11.2x 9.6x 27.8x 23.7x 20.2x Bharat Forge Ltd 3,129 3,468 2.6x 2.3x 2.1x 11.8x 10.5x 10.0x 20.7x 17.1x 15.5x Endurance Technologies Ltd. 2,417 2,420 2.3x 2.0x 1.7x 15.7x 13.4x 11.0x 34.8x 27.9x 23.5x Balkrishna Industries Limited 2,395 2,393 3.1x 2.7x 2.4x 11.2x 9.4x 8.0x 19.3x 16.2x 14.0x WABCO India Limited 1,731 1,580 3.7x 3.2x 2.9x 24.5x 21.1x 19.1x 37.1x 31.7x 28.3x Sundram Fasteners Limited 1,567 1,707 2.8x 2.5x NA 15.3x 13.2x NA 22.9x 18.7x NA Varroc Engineering Limited 1,419 1,713 NA 0.9x 0.7x NA 9.0x 6.9x NA 18.1x 12.2x Mahindra CIE Automotive Limited 1,315 1,498 1.3x 1.2x 1.1x 9.8x 8.5x 7.8x 17.5x 14.8x 13.2x Minda Industries Limited 1,205 1,349 1.7x 1.4x 1.2x 13.6x 11.1x 9.4x 25.1x 20.2x 16.6x Sundaram-Clayton Ltd. 976 2,379 0.8x NA NA 5.8x NA NA 16.4x NA NA Tube Investments of India Limited 902 942 1.2x 1.1x 1.0x 13.6x 11.2x 8.6x 33.0x 24.4x 16.5x Asahi India Glass Limited 884 1,080 2.5x 2.3x NA 14.3x 12.2x NA 30.3x 20.8x NA Minda Corp. Ltd. 486 507 1.2x 1.0x NA 11.3x 9.7x NA 20.5x 16.7x NA Suprajit Engineering Limited 446 447 2.0x 1.7x 1.5x 12.6x 10.8x 9.4x 22.1x 18.4x 15.5x Federal-Mogul Goetze (India) Limited 420 415 2.1x NA NA 12.5x NA NA 32.6x NA NA Shriram Pistons & Rings Ltd. 364 362 1.3x NA NA 8.4x NA NA 18.0x NA NA Jamna Auto Industries Limited 356 386 1.3x 1.1x 1.0x 9.7x 8.0x 6.9x 16.9x 13.5x 11.9x JTEKT India Limited 355 362 1.6x 1.5x NA 12.0x 10.4x NA 32.1x 25.1x NA Time Technoplast Limited 325 432 0.9x 0.8x NA 6.2x 5.2x NA 12.6x 10.2x NA Wheels India Limited 307 377 0.9x 0.8x NA 11.8x 10.5x NA 28.0x 24.9x NA Gabriel India Limited 297 282 1.0x 0.9x 0.8x 10.1x 8.7x 7.9x 18.9x 16.2x 14.5x Automotive Axles Limited 279 279 1.0x 0.9x NA 8.9x 7.2x NA 17.2x 13.8x NA TVS Srichakra Limited 269 314 0.9x 0.8x NA 7.2x 6.2x NA 13.7x 11.3x NA Rane Holdings Limited 259 350 1.0x NA NA 10.3x NA NA 16.9x NA NA Sandhar Technologies Ltd. 256 286 0.9x 0.8x NA 7.9x 6.5x NA 16.4x 11.7x NA Subros Limited 252 267 0.9x 0.8x 0.7x 8.0x 6.8x 5.9x 21.1x 15.6x 12.9x

Source: FactSet as of January 8, 2020; Financials calendarised to December

51 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Trading Comparables – India

(in US$mm) Market Cap Enterprise EV/Sales EV/EBITDA P/E Company ($m) Value ($m) 2018A 2019E 2020E 2018A 2019E 2020E 2018A 2019E 2020E

Automotive Component Suppliers contd.

Igarashi Motors India Limited 246 250 2.8x NA NA 13.5x NA NA 25.7x NA NA Lumax Industries Limited 224 254 0.9x 0.8x 0.7x 11.1x 8.9x 7.4x 18.6x 13.8x 10.5x Steel Strips Wheels Ltd 202 307 1.1x 0.9x 0.8x 7.9x 6.3x 5.4x 15.5x 10.5x 8.4x Banco Products (India) Limited 187 168 0.8x NA NA 6.1x NA NA 14.1x NA NA L.G. Balakrishnan & Bros Ltd. 184 216 1.0x 0.9x NA 6.9x 6.0x NA 13.0x 11.0x NA Sterling Tools Limited 179 182 2.4x 2.1x NA 12.3x 10.5x NA 22.4x 18.9x NA Kirloskar Ferrous Industries Ltd 177 205 0.7x 0.7x NA 8.2x 5.6x NA 16.9x 10.6x NA JBM Auto Limited 171 246 0.9x 0.8x 0.7x 7.0x 6.1x 5.1x 12.0x 8.7x 7.4x Lumax Auto Technologies Limited 167 173 0.9x 0.8x 0.7x 9.8x 7.8x 6.7x 17.3x 14.2x 12.4x Kesoram Industries Ltd 157 536 0.9x NA NA 24.1x NA NA NM NA NA India Nippon Electricals Limited 141 120 1.7x 1.6x NA 10.3x 9.3x NA 18.3x 16.9x NA Shanthi Gears Limited 138 129 3.8x 3.4x NA 16.5x 14.9x NA 29.7x 26.5x NA Rico Auto Industries Limited 133 180 0.9x 0.8x NA 8.1x 6.6x NA 13.1x 10.4x NA Sharda Motor Industries Ltd. 126 98 0.6x 0.5x NA 4.6x 3.7x NA 9.3x 9.1x NA GNA Axles Ltd 112 141 1.2x 1.0x 0.8x 7.6x 6.4x 5.4x 13.0x 11.3x 9.6x Atul Auto Ltd 105 101 1.2x 1.0x 1.0x 9.1x 7.9x 7.5x 14.7x 12.7x 11.8x Munjal Showa Limited 101 66 0.3x NA NA 4.2x NA NA 9.0x NA NA Fiem Industries Limited 97 119 0.6x 0.5x NA 5.5x 4.7x NA 12.0x 9.9x NA Precision Camshafts Ltd. 91 93 1.0x NA NA 5.6x NA NA 26.4x NA NA Hi-Tech Gears Limited 88 132 1.0x NA NA 7.8x NA NA 17.0x NA NA Munjal Auto Industries Limited 84 98 0.6x NA NA 10.3x NA NA 17.2x NA NA PPAP Automotive Limited 70 74 1.2x 1.1x NA 5.7x 5.0x NA 11.4x 9.7x NA Setco Automotive Limited 67 114 1.2x NA NA 8.4x NA NA 127.8x NA NA Automobile Corporation of Goa Limited 60 59 0.9x NA NA 15.4x NA NA 23.2x NA NA Harita Seating Systems Limited 59 76 0.5x NA NA 6.0x NA NA 12.9x NA NA UCAL Fuel Systems Limited 58 83 0.7x NA NA 4.5x NA NA 6.5x NA NA Talbros Automotive Components Limited 43 63 0.9x 0.8x NA 8.0x 6.8x NA 11.3x 9.0x NA

High 4.3x 3.8x 3.2x 24.5x 21.4x 19.2x 127.8x 31.7x 28.3x Average 1.4x 1.4x 1.3x 10.5x 9.2x 8.8x 21.9x 16.6x 15.1x Median 1.0x 1.0x 1.0x 9.8x 8.8x 7.8x 18.0x 15.9x 14.0x Low 0.3x 0.5x 0.7x 4.2x 3.7x 5.1x 6.5x 8.7x 7.4x

Automotive Tires

MRF Limited $4,011 $3,963 1.7x 1.6x 1.4x 10.2x 8.7x 7.7x 22.3x 17.9x 15.6x Apollo Tyres Limited. 1,865 2,656 1.1x 0.9x 0.8x 9.1x 7.3x 6.3x 14.7x 11.5x 9.6x CEAT Limited 732 978 1.0x 0.9x 0.8x 9.2x 7.7x 6.8x 16.2x 14.0x 12.0x JK Tyre & Industries Limited 363 1,064 0.8x 0.7x 0.6x 6.9x 5.6x 4.9x 9.1x 6.0x NA Goodyear India Limited 305 224 0.8x 0.8x 0.7x 8.8x 8.2x 7.2x 21.5x 19.0x 17.0x

High 1.7x 1.6x 1.4x 10.2x 8.7x 7.7x 22.3x 19.0x 17.0x Average 1.1x 1.0x 0.9x 8.8x 7.5x 6.6x 16.8x 13.7x 13.5x Median 1.0x 0.9x 0.8x 9.1x 7.7x 6.8x 16.2x 14.0x 13.8x Low 0.8x 0.7x 0.6x 6.9x 5.6x 4.9x 9.1x 6.0x 9.6x

Source: FactSet as of January 8, 2020; Financials calendarised to December

52 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Strategic Collaborations

Strategic Collaborations

Tata Autocomp Systems Enters Into A JV With Prestolite Electric In January 2020, Tata AutoComp Systems, the auto-component arm of the Tata Group entered a JV with Beijing-based Prestolite Electric to enter the EV components market. Owned by the Broad Ocean Motor Group, the Chinese partner brings access to various powertrain products like motors, controllers and integrated drivetrains. Meanwhile, Tata AutoComp offers its well-established supply-chain network in India.

GM Enters $2.3B JV To Further Production Of Electric Vehicles In December 2019, General Motors partnered with Korea’s LG Chem to produce battery cells in bulk for battery- electric vehicles. GM and LG Chem will jointly invest USD2.3 bn through a new equally-owned joint venture company, which will set up a battery cell assembly plant on a greenfield manufacturing site in Northeast Ohio. The plant will utilize enhanced manufacturing processes to efficiently develop battery cells.

Xpeng And Nio Team Up For Charging, Amid China EV Sales Slump In December 2019, Xpeng Motors entered into an agreement with Nio Power for a wide range of charging services such as home-charger installation. The agreement will lead to the merger of Xpeng’s network and payment-and- processing system with Nio’s. The longest-range version of the P7 may go up to 385 miles on the NEDC, or nearly 250 miles by the US standards.

Tesla Acquires Hibar Systems In October 2019, Tesla acquired Hibar Systems to produce its own batteries and control all aspects of its production. Tesla is planning to capitalize on Hibar’s high-speed manufacturing process for Li-Ion cells and make their price significantly drop. The acquisition also strategically form part of Tesla’s plans to enter into the mining business to secure access to raw materials.

BMW Joins China’s Tencent to Build Level ¾ Automated Driving Platform In July 2019, BMW China Automotive Trading Ltd. entered into an agreement with Tencent to work together on building BMW’s Data-Driven Development (“D³”) platform, which will be the stepping stone of BMW’s upcoming automated driving technologies in China. The collaboration will help in developing highly (Level 3) and fully (Level 4) automated driving functions. These technologies will help in developing automated driving technologies and products, which are suitable for complex local traffic conditions and cater to local customer demands.

Ford and VW Partner on EVs, Self-Driving Vehicles In July 2019, Volkswagen (VW) partnered with Ford to invest USD2.6 bn into Argo at a valuation of USD7 bn. The investment will include USD1 bn in cash and contributing its Munich-based Autonomous Intelligent Driving (AID) group. Post development, AID will be merged with Argo AI to become AI Argo Europe, which include a combined majority stake in the same ratio owned by Ford and VW each. The deal will provide opportunities for all the entities to spread the technology development costs over a larger fleet of vehicles.

BMW and Jaguar to Collaborate on Next-Gen Electrification Tech In June 2019, Jaguar, Land Rover and BMW Group entered into a collaboration to develop next generation Electric Drive Units (EDUs). The collaboration will further drive the advancement of electrification technologies. Such collaborative investments in R&D, and engineering and procurement will offer required economies of scale to support increased consumer adoption of electric vehicles.

Source: Deloitte

53 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Strategic Collaborations

Tesla Acquires Maxwell Technologies In May 2019, Tesla acquired California-based supercapacitor maker Maxwell Technologies for a stock consideration worth USD288 mn. Tesla finds potential in supercapacitors, which have significantly higher power in terms of rate of charge and discharge than lithium-ion batteries. The acquisition allows Tesla to leverage Maxwell’s supercapacitor manufacturing process that uses a proprietary electrode process. Tesla is planning to integrate Maxwell’s proprietary battery technology with its lithium-ion batteries to produce batteries with great energy density. Additionally, the process eradicates the requirement of producing batteries through the traditional process of storing lithium in cathode material.

Shell Acquires Greenlots In January 2019, Shell New Energies, a subsidiary of Royal Dutch Shell, acquired EV charging startup Greenlots. The acquisition will allow Shell to strengthen its electric mobility business in North America. The company has strategic focus on investing in cleantech space in recent years and also concentrates on businesses around new fuels, including electricity.

Grin Scooters Merges with Yellow

In January 2019, Y Combinator-backed Grin Scooters merged with Yellow, the bike-share startup based in Brazil to get into electric scooters market. The merger will allow Grin and Yellow to rebranding as Grow Mobility. Grow Mobility has a strong network of over 135,000 micromobility vehicles in six countries and planning to achieve two-fold growth in its fleet across Latin America.

Ride Mobility Acquires Grin Scooters

In October 2018, Grin Scooters merged with São Paulo-based Ride post raising USD45 mn Series A round to further expand across Latin American region. As part of the merger, Ride will operate under the Grin brand in Brazil and the Ride team will be in charge of all of Grin’s operations in Brazil.

BP Buys Chargemaster

In June 2018, the British oil and gas giant BP acquired Changemaster, the largest charging company in its home country for a consideration of USD170 mn. Chargemaster has large infrastructure of 6,500 chargers spread across homes, businesses, and in public spaces. The acquisition forms part of BP’s focus on grid edge technologies, and transition to electric vehicles.

Uber Acquires Jump Bikes In April 2018, Uber acquired bike-sharing startup JUMP for an expected consideration of USD200 mn. The acquisition is in line with Uber’s plans to launch Uber Bike, which lets Uber riders book JUMP bikes via the Uber app.

Source: Deloitte

54 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Key M&A Transactions

Key M&A Transactions – Global Automotive Industry

Announced Target Deal Value EV EV/Revenue EV/EBITDA Target Company Bidder Company Date Country (US$mm) (US$mm) (x) (x) 18-Dec-19 PSA Peugeot-Citroen SA France Fiat Chrysler Automobiles N.V 16,408 16,408 0.2x 2.0x 2-Dec-19 Opus Group AB Sweden Searchlight-Geilen consortium 490 490 1.8x 8.9x Nissin Kogyo Co., Ltd. 30-Oct-19 Japan Honda Motor Co., Ltd. 505 974 0.6x 4.1x (65.14% Stake) Showa Corporation 30-Oct-19 Japan Honda Motor Co., Ltd. 700 1,239 0.5x 3.5x (66.5% Stake) Keihin Corporation 30-Oct-19 Japan Honda Motor Co., Ltd. 1,467 1,467 2.8x 3.7x (58.65% Stake) 17-Oct-19 Vetrerie Riunite S.p.A. Italy Sun European Partners, LLP 122 122 1.0x 6.7x Shandong Jiatai Transport Guangdong Huatie Tongda High- 14-Oct-19 China 136 267 8.5x 30.9x Equipment Co., Ltd. (51% Stake) speed Railway Equipment Corp. 27-Sep-19 Hankuk Glass Industries Co., Ltd. South Korea Glenwood Private Equity 245 245 0.6x 5.5x Dongfeng Xiaokang Motor Co., 17-Sep-19 China Chongqing Sokon Industry Group 543 754 0.3x 4.7x Ltd. (50% Stake) 16-Sep-19 Newmar Corporation USA Winnebago Industries, Inc. 344 344 0.5x 6.6x Seoyon Electronics Co., Ltd. 2-Sep-19 South Korea Mobase Co., Ltd. 260 279 0.4x 8.5x (50.12% Stake) Suzuki Motor Corporation 28-Aug-19 Japan Toyota Motor Corporation 903 15,817 0.4x 3.6x (4.95% Stake) 25-Jul-19 Cobham Plc UK Advent International Corporation 5,171 5,171 2.2x 21.7x 12-Jul-19 Tower International, Inc. USA Autokiniton Global Group, LP 853 853 0.5x 5.5x 26-Jun-19 BCA Marketplace Plc UK TDR Capital LLP 2,645 2,645 0.7x 12.1x 24-Jun-19 Altran Technologies S.A. France Capgemini SA 5,590 5,590 1.6x 11.9x 19-Jun-19 Chassis Brakes International B.V. Netherlands Hitachi Automotive Systems, Ltd. 659 659 0.6x 11.8x Zhongce Rubber Group Co., Ltd. Shanghai Tongzhong Enterprise 4-Jun-19 China 182 2,751 0.7x 6.5x (10.16% Stake) Management Co., Ltd. Zhongce Rubber Group Co., Ltd. Hangzhou Zhongce Haichao 4-Jun-19 China 839 2,751 0.7x 6.5x (46.95% Stake) Enterprise Management Co., Ltd. 18-Apr-19 Prime Car Management S.A. Poland PKO Leasing S.A. 479 479 2.9x 9.2x 1-Apr-19 Ningbo Jiye Investment Co., China Ningbo Jifeng Auto Parts Co., Ltd. 1,072 1,072 0.4x 5.9x 28-Mar-19 WABCO Switzerland ZF Friedrichshafen AG 7,243 7,584 2.0x 13.2x 20-Feb-19 Prime Car Management S.A. Poland Pollen Street Capital 509 509 3.1x 9.7x Compagnie Generale des 22-Jan-19 PT Multistrada Arah Sarana Tbk Indonesia 700 700 2.2x 20.1x Etablissements Michelin SA 28-Dec-18 Prime Car Management S.A. Poland Hitachi Capital Polska Sp z o.o. 510 510 3.6x 9.0x SL Lighting Co., Ltd. (66.54% 18-Dec-18 South Korea SL Corporation 160 284 0.3x 6.1x Stake) Tianjin FAW Toyota Motor Co., China FAW Group Corporation 28-Nov-18 China 420 2,171 0.3x 7.7x Ltd. (15% Stake) Limited Xingmin Intelligent Sichuan Shengbang Chuangheng 22-Nov-18 Transportation Systems Co., Ltd. China 202 800 3.0x 19.3x Enterprise Management Co., Ltd. (28.01% Stake) Spectrum Brands, Inc. (Global 15-Nov-18 USA Energizer Holdings, Inc. 1,250 1,250 2.7x 10.7x Auto Care Business) Caisse de Depot et Placement du 13-Nov-18 Clarios USA 13,244 13,244 1.7x 7.9x Quebec; Brookfield Business Partners 7-Nov-18 Prime Car Management S.A. Poland PKO Leasing S.A. 514 514 3.6x 9.1x 7-Nov-18 U-Shin Ltd. Japan MinebeaMitsumi Inc. 466 466 0.3x 4.2x Toyo Tire & Rubber Co., Ltd. 1-Nov-18 Japan Mitsubishi Corporation 453 3,409 0.9x 5.4x (17.52% Stake) Rassini, S.A.B. de C.V. (54.27% 31-Oct-18 Mexico GGI INV SPV, S.A.P.I. de C.V. 242 411 0.4x 2.6x Stake) 26-Oct-18 Clarion Co., Ltd. Japan Faurecia S.A. 1,361 1,361 0.8x 9.5x

Source: MergerMarket

55 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Key M&A Transactions

Announced Target Deal Value EV EV/Revenue EV/EBITDA Target Company Bidder Company Date Country (US$mm) (US$mm) (x) (x) RENK Aktiengesellschaft (76% 25-Oct-18 Germany Volkswagen AG 411 597 1.1x 6.6x Stake) Well to Sea Investment Co., Ltd.; 16-Oct-18 Junjin Heavy Industry Co., Ltd. South Korea 224 224 1.2x 7.5x Motrex Co., Ltd. Honeywell International Inc. 1-Oct-18 Garrett Motion Inc Switzerland 1,304 2,712 0.9x 6.6x (Shareholders) 18-Sep-18 Erwin Hymer Group Germany Thor Industries, Inc. 2,340 2,340 0.9x 18.7x Hebei Xin'ou Auto Parts 13-Sep-18 China Tianjin Pengling Group Co., Ltd. 167 167 2.5x 18.7x Technology Co., Ltd. Jonjee Hi-tech Industrial and Zhongshan Runtian Investment Co., 8-Sep-18 Commercial Holding Co., Ltd. China 834 3,292 6.2x 28.3x Ltd. (24.92% Stake) 2-Aug-18 Ovako AB Sweden Sanyo Special Steel Co., Ltd. 914 912 0.8x 8.1x Nexus Vehicle Management 31-Jul-18 UK Phoenix Equity Partners Limited 186 186 2.4x 26.6x Limited Oerlikon (Drive Systems 30-Jul-18 Switzerland Dana Incorporated 605 605 0.8x 7.7x Segment) Compagnie Generale des 12-Jul-18 Camso Inc. Canada 1,610 1,610 1.7x 11.8x Etablissements Michelin SA FTZ Autodele & Vaerktoej A/S; 6-Jul-18 Denmark Mekonomen AB 463 463 0.8x 9.6x Inter-Team Sp z o.o. Imperial Holdings Limited 21-Jun-18 Motus Corporation South Africa 1,372 1,807 0.3x 5.0x (Shareholders) Kedaara Capital Investment 4-Jun-18 Sunbeam Auto Pvt. Ltd. India 132 132 0.6x 7.9x Managers 29-May-18 Grammer AG (84.23% Stake) Germany Ningbo Jiye Investment Co., Ltd. 920 1,061 0.5x 7.9x 24-May-18 Veoneer,Inc. Sweden Autoliv, Inc. (Shareholders) 3,638 3,700 1.6x 52.6x AMA Group Limited (100% 13-Apr-18 Australia Blackstone Group L.P. 366 366 1.2x 12.6x Stake) 10-Apr-18 Federal-Mogul LLC USA Tenneco Inc 5,400 5,400 0.7x 7.5x 10-Apr-18 Wheel Pros, LLC USA Clearlake Capital Group, L.P. 405 405 8.1x Zhejiang Xinlong Industrial Co., 10-Apr-18 China Zhejiang XCC Group Co., Ltd. 104 104 1.3x 11.8x Ltd. 6-Apr-18 Kumho Tire Co., Inc. (45% Stake) South Korea Xingwei Korea Company Limited 610 3,433 1.3x 56.6x eHi Car Services Limited (52.3% A consortium led by MBK Partners 6-Apr-18 China 1,114 1,523 3.6x 8.1x Stake) and Ray Zhang Samvardhana Motherson Automotive 2-Apr-18 Reydel Automotive France SAS France 105 105 0.1x 1.5x Systems Group B.V. Thomson Industries Inc; Kollmorgen Corporation; 7-Mar-18 USA Altra Industrial Motion Corp 2,961 2,961 3.3x 13.5x Portescap; Jacobs Vehicle Systems, Inc. 1-Mar-18 HBPO GmbH (33.33% Stake) Germany Plastic Omnium 142 427 0.2x 4.2x 1-Mar-18 Laird Plc UK Advent International Corporation 1,599 1,599 1.2x 11.6x Mitsubishi Motors Corporation 20-Feb-18 Japan Mitsubishi Corporation 1,117 6,770 0.4x 14.0x (10.76% Stake) 19-Feb-18 Faster S.p.A. Italy Helios Technologies 605 605 5.2x 20.2x 17-Jan-18 GKN Plc UK Melrose Plc 12,101 12,101 0.9x 8.1x Comstar Automotive 1-Jan-18 India Blackstone Group L.P. 121 121 1.4x 4.5x Technologies Pvt. Ltd 28-Dec-17 Unidas S.A. (59.7% Stake) Brazil Companhia de Locacao das Americas 500 620 1.6x 5.3x Companhia de Locacao das Americas; 28-Dec-17 Unidas S.A. (49.7% Stake) Brazil 149 622 1.6x 5.3x Fitpart Capital Partners Ltd. Zhejiang Geely Holding Group Co., 27-Dec-17 AB Volvo (8.2% Stake) Sweden 3,208 51,354 1.4x 11.0x Ltd. 14-Dec-17 Brink Group B.V. Netherlands Horizon Global Corporation 200 200 1.5x 8.7x 11-Dec-17 STAHLGRUBER GmbH Germany LKQ Corporation, Inc. 1,768 1,768 1.0x 12.5x 4-Dec-17 NAPEC Inc. Canada Oaktree Capital Management LP 246 246 0.9x 14.5x Average 1.5x 11.1x Median 1.0x 8.1x

Source: MergerMarket

56 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Key M&A Transactions – India

Key M&A Transactions – India

Announced Deal Value EV EV/Revenue EV/EBITDA Target Company Bidder Company Date (US$mm) (US$mm) (x) (x) 17-Jan-20 Talegaon manufacturing facility of General Motors Great Wall Motor Company - - - - 14-Jan-20 Seoyon E-Hwa Automotive India (30% stake) Unknown Investor 39 131 - - 23-Dec-19 India Japan Lighting Koito Manufacturing 21 70 - - 18-Dec-19 India Nippon Electricals MAHLE Holding (India) - - - - 2-Dec-19 ARGL Limited Investment Opportunities V - - - - 29-Nov-19 TB Kawashima Automotive Textile (India) AUNDE Achter & Ebels GmbH - - - - 5-Nov-19 Ampere Vehicles Pvt Ltd Greaves Cotton Limited (BSE:501455) 8 45 6.0x - 18-Oct-19 Mahansaria Tyres Private Limited International Finance Corporation 8 - - - 1-Oct-19 Ford Motor Company (India operations) (51% Stake) Mahindra & Mahindra Ltd. 138 271 - - 30-Aug-19 Sona BLW Precision Forgings Ltd (33% Stake) Blackstone Group L.P. 180 - - - KSS Abhishek Safety Systems Pvt. Ltd.; Joyson ANAND Abhishek Safety 4-Jun-19 20 20 - - Takata India Pvt. Ltd. Systems Private Limited 28-May-19 Ather Energy Pvt Ltd Hero MotoCorp Ltd; Sachin Bansal 51 - - - 12-Mar-19 Aurangabad Electricals Limited Mahindra CIE Automotive Ltd 117 117 1.2x - 14-Feb-19 Harita Seating Systems Limited Minda Industries Limited 49 49 0.8x 7.3x Commercial Engineers & Body Builders Co Limited 1-Dec-18 Jupiter Wagons Limited 11 19 1.4x 13.0x (38.6% Stake) 16-Oct-18 Sona BLW Precision Forgings Ltd (66.28% Stake) Blackstone Group L.P. - - - - 29-Aug-18 Ampere Vehicles Pvt Ltd (67% Stake) Greaves Cotton Limited 11 - - - 23-Aug-18 MAN SE (India assets) Force Motors Ltd - - - - 25-Jul-18 Amtek Auto Limited Liberty House Group 643 643 0.9x - TVS Elastomeric Engineered Products Private 30-Jun-18 Argomm SpA - - - - Limited TAL Manufacturing Solutions Limited; Tata Motors 3-May-18 Tata Advanced Systems Limited 109 109 - - Defence 18-Apr-18 SMI Amtek Crankshaft Pvt Ltd (50% Stake) Nippon Steel Corporation 29 - - - Supreme Industries Limited (automotive component 4-Apr-18 Kumi Kasei Co., Ltd. 17 - - - factory) (79.33% Stake) 4-Jan-18 MS Global India Automotive Samvardhana Motherson International 55 59 1.2x 13.0x 1-Jan-18 Comstar Automotive Technologies Pvt. Ltd Blackstone Group L.P. 121 121 1.4x 4.5x 29-Nov-17 Team Concepts Private Limited (70% Stake) Varroc Engineering Limited 15 - - - 31-Oct-17 JJ Automotive Ltd. (Auto Components Division) TVS Automobile Solutions Pvt. Ltd. 5 5 - - Track Components Ltd. (Bangalore automotive 23-Oct-17 Nahars Engineering India Pvt. Ltd. 23 23 - - component business) 11-Aug-17 Synergies Castings Limited (67.1% Stake) Jamy LLC 16 - - - 5-Jul-17 ABC Bearings Ltd Timken India Limited 79 79 2.7x 16.0x 23-Jun-17 Tata Motors Limited (2.9% Stake) Tata Sons Ltd. 587 31,960 0.8x 6.8x 9-Jun-17 Sakthi Global Holdings Limited (25.1% Stake) AAPICO Hitech Public Company 100 - - - PMP Auto Components Pvt. Ltd. (Non-Wiping India 31-May-17 Pricol Limited - - - - Undertaking) PMP Auto Components Pvt. Ltd. (Wiping Systems 30-May-17 Pricol Limited - - - - Business) Agile Electric Sub Assembly Private Limited Padmanaban Mukund (Private 9-May-17 66 206 1.7x 7.1x (34.04% Stake) Investor) 6-Apr-17 General Motors Company (Halol Factory) SAIC Motor Corporation Limited - - - - Visteon Electronics India Private Limited (Hanon 14-Feb-17 Visteon Corporation 47 - - - Systems Stake) 1-Feb-17 Sona Koyo Steering Systems Ltd (50.35% Stake) JTEKT Corporation 147 264 1.2x 8.5x Hindustan Motors Finance Corporation Ltd. (Facility 25-Jan-17 PSA Peugeot-Citroen SA - - - - at Tiruvallur) (80% Stake) 5-Jan-17 Mahindra Sona (37.5% Stake) Sona Group 18 - - - Average 1.8x 9.5x Median 1.2x 7.9x

Source: MergerMarket

57 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

Share Price Performance – Last Five Years

Select Automotive OEMs

300 Tesla 178.4%

250 BYD 55.2%

200 Toyota 10.9% GM 3.2% 150

Honda (10.6%) Indexed 100 to Indexed 100 Volkswagen (10.7%)

50 BMW (27.9%) Daimler (40.7%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Toyota Volkswagen Tesla Daimler General Motors BMW Honda BYD

Select Auto Lighting Equipment Changzhou Xingyu 800 349.8% Automotive Lighting 600 Ichikoh 226.2%

Koito 50.6% 400 CUB 44.5% Elecparts

Indexed 100 to Indexed Stanley 25.0% 200 Electric HELLA 23.1% 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Koito Manufacturing HELLA Stanley Electric Changzhou Xingyu Automotive Lighting CUB Elecparts Ichikoh

Select Auto Metal Stamping 350 CIE 86.1% 300 Automotive G-Tekt 65.1% 250 Topre 16.5% 200 Marcopolo 5.8% 150 Plastic Indexed 100 to Indexed (1.9%) Omnium 100 Unipres (17.3%) 50 Lingyun (46.8%) 0 Industrial Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Plastic Omnium CIE Automotive Topre Marcopolo G-Tekt Unipres Lingyun Industrial

Source: FactSet as of January 21, 2020; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

58 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

Select Auto Safety Equipment

600

500 Mosa (0.7%) 400 HMT (Xiamen) (3.0%) 300

Indexed 100 to Indexed Ashimori (6.3%) 200 TUS (34.2%) International 100 Veoneer (67.7%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Veoneer HMT (Xiamen) Mosa Ashimori TUS International

Select Automotive Engineering & Tech

300

250

Siix 31.4% 200 Semcon 12.1% 150 Hyundai (11.2%) Indexed 100 to Indexed Mobis 100 TeleNav (26.4%)

50 Pininfarina (36.7%) Bertrandt (53.3%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Hyundai Mobis Siix Bertrandt TeleNav Semcon Pininfarina

Select Body & Chassis 300

250 Jiangnan 200 Mould & 30.3% Plastic Huazhong In- 150 23.2%

Vehicle Indexed 100 to Indexed 100 MS Autotech 20.4% Tianjin Motor 10.6% 50 Dies Gestamp (21.4%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Gestamp Jiangnan Mould & Plastic Tianjin Motor Dies Huazhong In-Vehicle MS Autotech

Source: FactSet as of January 21, 2020; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

59 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

Select Brake Systems

600 ITT 97.6%

Brembo 80.5% 500 Nissin Kogyo 36.0% 400 Zhejiang VIE 13.2% Shenzhen 300 9.3%

Terca Indexed 100 to Indexed 200 Mando 2.7% Zhejiang Asia- (36.1%) 100 Pacific Shandong (36.1%) Gold Phoenix 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 ITT Brembo Mando Nissin Kogyo Shandong Gold Phoenix Zhejiang VIE Zhejiang Asia-Pacific Shenzhen Terca

Select Drivetrain Components

350 F.C.C. 19.5%

300 Aisin Seiki 1.2%

250 Exedy (8.3%)

200 Dana (21.4%)

150 Linamar (32.2%) Indexed 100 to Indexed Wanxiang (37.3%) 100 Qianchao American Axle (61.1%) 50 Delphi Tech (79.1%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Aisin Seiki Wanxiang Qianchao Dana Linamar F.C.C. Exedy American Axle Delphi Tech

Select Engines & Parts

1800 Rheinmetall 159.9% 1600 Kuang-Chi 90.9% 1400 Tech Riken (2.5%) 1200 Mahle-Metal (2.8%) 1000 Leve

800 Aisan Industry (21.4%) Indexed 100 to Indexed Chongqing 600 (41.8%) Zongshen 400 Sichuan (42.3%) 200 Haowu Nemak (64.6%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Rheinmetall Kuang-Chi Tech Nemak Mahle-Metal Leve Chongqing Zongshen Sichuan Haowu Aisan Industry Riken

Source: FactSet as of January 21, 2020; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

60 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

Select Exhausts & Emissions

300

250

200

150 Dorman 61.4%

Indexed 100 to Indexed Feilong Auto (25.0%) 100 Components Baumot (57.5%) 50 Tenneco (79.6%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

Dorman Tenneco Feilong Auto Components Baumot

Select HVAC Systems

350 Raval ICS 175.2% Changzhou 300 Langbo Seal 127.3% Polytron 250 Fujian 31.6% 200 Snowman Hanon 8.3% 150 Zhejiang Yilida Indexed 100 to Indexed (38.5%) Ventilator 100 Songz (55.3%) 50 Automobile AC SANDEN (73.0%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Hanon Fujian Snowman Songz Automobile AC Zhejiang Yilida Ventilator Changzhou Langbo Seal Polytron Raval ICS SANDEN

Select Seating & Trim

250 Lear 40.6%

200 Faurecia 29.9% TS Tech 19.0% 150 Toyoda Gosei 17.7% Toyota 17.2%

Indexed 100 to Indexed 100 Boshoku NHK Spring 3.3% 50 Ningbo (0.5%) Huaxiang Adient (57.9%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Lear Faurecia Toyoda Gosei Toyota Boshoku NHK Spring TS Tech Adient Ningbo Huaxiang

Source: FactSet as of January 21, 2020; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

61 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Valuation

Select Steering & Suspension

300

250 Ege Endustri 12.6% 200 Nexteer (7.9%)

150 S & T Motiv (12.9%)

JTEKT (26.8%) Indexed 100 to Indexed 100 Yorozu (27.1%) KYB (29.3%) 50 Zhejiang (58.4%) Shibao 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20

JTEKT Nexteer KYB S & T Motiv Zhejiang Shibao Yorozu Ege Endustri

Select Tires & Wheels

250 MRF 51.1% Michelin 32.0% 200 Shandong 18.6% Linglong 150 Nokian 15.8% Yokohama (4.5%)

Indexed 100 to Indexed 100 Bridgestone (8.7%) Cheng Shin (40.7%) 50 Goodyear (42.9%) Hankook (44.1%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Bridgestone Michelin Cheng Shin Nokian MRF Shandong Linglong Goodyear Hankook Yokohama

Select Diversified Auto Component Suppliers

200 Aptiv 58.3% HUAYU 39.8% Automotive 150 Magna 14.5% Autoliv 7.1% 100 Denso (0.3%)

Indexed 100 to Indexed BorgWarner (24.3%)

50 Valeo (25.7%) Bosch (40.3%) Continental (45.3%) 0 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Jan-20 Denso Continental Aptiv Magna HUAYU Automotive BorgWarner Valeo Autoliv Bosch

Source: FactSet as of January 21, 2020; Sector classifications based on Bloomberg Industry Classification Systems (BICS)

62 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com Overview of GMAP Industrials Team

EUROPE

Andy Parker Bogdan Petrea Christian Kollmann Cooper Parry Invescom Corporate Finance InterFinanz GmbH

[email protected] [email protected] [email protected] UNITED KINGDOM HUNGARY GERMANY

Harald Klien Karlis Krastins Michael Maerki CD Invest Consult GmbH Prudentia AS Zetra International AG michael.maerki@zetra- [email protected] [email protected] international.com AUSTRIA BALTICS SWITZERLAND

Onno Sloterdijk Peter Sogaard Philippe Dore JBR Nordic Corporate Finance Financière de Courcelles

[email protected] [email protected] [email protected] NETHERLANDS DENMARK FRANCE

AMERICAS

Alexander Von Andrew Petryk Brian Murphy Griesheim Brown Gibbons Lang & Co Meridian Capital RIóN [email protected] [email protected] [email protected] MEXICO USA USA

Ian Macdonell Paulo Cury Tristan Lopez Gordillo Fenix Partners Crosbie & Company Inc. Condere Consultoria tristan.lopez@ [email protected] [email protected] fenixpartners.com.ar CANADA BRAZIL ARGENTINA

ASIA

Deepak Ladha Candice Chou Jacob Hoyeon Won Acquizon Advisory FCC Partners Locus Capital Partners

[email protected] [email protected] [email protected] INDIA TAIWAN SOUTH KOREA

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