10 • February 18, 2019, TIRE BUSINESS Visit us on the web at www.tirebusiness.com New England East South Central Connecticut, Alabama Maine Kentucky Passenger 4% Massachusetts Passenger 6% Mississippi Tennessee Light Truck 3% New Hampshire Light Truck 6% 41% Rhode Island West North Central 42% Vermont Iowa Kansas Middle Atlantic Passenger 7% Minnesota Passenger 10% Pennsylvania Missouri New Jersey Light Truck 9% Nebraska National National Light Truck 8% New York North Dakota dealerships3 3 General South Dakota General dealerships South Atlantic merchandise 30 merchandise 30 West Virginia West South Central 4 distributors4 Delaware distributors Regional Arkansas Passenger 24% Maryland Passenger 13% Louisiana dealerships2 Washington D.C. Regional Tire makers’ Tire makers’ Light Truck 17% Virginia Light Truck 19% Oklahoma 5 Texas 2 13% outlets 5 North Carolina dealerships outlets South Carolina 20 Mountain 20 18% Georgia 12% Florida Arizona 11% Colorado 12% Idaho East North Central Passenger 5% Local Local Illinois Montana 1 1 2% dealerships dealerships 23% Passenger 16% Indiana Light Truck 9% Nevada Others6 6 Michigan New Mexico 14% Others Utah 7% 10 Light Truck 12% Ohio 4% 10 Wisconsin Wyoming Independents with fewer than 10 outlets Mass merchandisers, Pacic /RFDOGHDOHUVKLSV *HQHUDOPHUFKDQGLVHGLVWULEXWRUV Alaska in a single regional distribution area. wholesale clubs, etc. California Passenger 15% 5HJLRQDOGHDOHUVKLSV Independents with 10 to 40 outlets in 7LUHPDNHUV·RXWOHWV Those operated by the manufacturers Hawaii at least two regions. Light Truck 18% Oregon using various names and store formats. Washington Independents with more than 40 1DWLRQDOGHDOHUVKLSV 2WKHUV Service stations, garages, car dealerships, etc. *Percentage may not add to 100% due to rounding. outlets in three or more regions. Source: U.S. Tire Manufacturers Association’s preliminary 2018 data. Source: U.S. Tire Manufacturers Association’s preliminary 2018 data. *Percentages may not add to 100% due to rounding. TIRE BUSINESSgraphics by Michael McCrady Top North American Retailers (2017 retail sales of tires & related automotive services) 80 Company / Chain Sales No. of outlets ($ millions) (year-end 2018) 78% 70 Discount Tire/America’s Tire1 $4,840 1,020 70% 2 * Bridgestone Americas $4,500 2,222 60 TBC Corp.3 $3,000* 731 Walmart Inc.4 $2,960* 3,200+ 50 Icahn Automotive / Pep Boys5 $2,670* 1,022 Les Schwab Tire Centers $1,573 421 Monro Inc.6 $1,128 1,184 40 Quick Lane Tire & Auto Centers7 $900* 868 Costco Wholesale Corp.8 $855* 528 30 Big O Tires network3 $800* 430+ Sears Holdings Corp.9 $800* 200 20 Mavis Discount10 $775* 649 Midas International3 $750* 971 10 Canadian Tire Corp.# $630* 501 11% 10% 9% 8% Goodyear11,12 $600* 569 6% 7% Point S Tire & Auto13 $550* 400+ 0 4 Wheel Parts $545* 84 Passenger tire market 2018 Light truck tire market # * Kal Tire $475 209 Associate (house) brands Private brands Import brands* Manufacturers’ ag brands† Belle Tire Distributors $350 100 Based on data from U.S. Tire Manufacturers Association; U.S. Dept. of Commerce; etc. 12 # † Fountain Tire Corp. $230 160 *Flag brands of offshore firms with no U.S. manufacturing presence. Companies with U.S. manufacturing base. TIRE BUSINESSgraphics by Michael McCrady Best One Tire & Service $200 117 Sullivan Tire Co. $150 71 Dunlap & Kyle Co. Inc. $140 54 Miles traveled - 2018* A.T.V. Inc. $128 113 U.S. total 3.22 trillion Rent-a-Wheel / Rent-A-Tire $120 124 Dobbs Tire & Auto Centers $110* 40 Car ownership costs per mile1 Car maintenance costs per mile1 Operating cost/mile3 (based on 15,000 miles per year) (based on 15,000 miles per year) Graham Tire Co. $76 35 2018 .................... 59.0 cents 20182...................... 8.2 cents Small sedan ......... 15.26 cents * estimated # sales translated from Canadian $ 2017 .................... 56.5 cents 20172...................... 7.9 cents Medium sedan ....... 17.76 cents 1 — Discount Tire’s sales include revenue from Discounttire.com 2 — Estimated sales for Firestone Complete Car Care, Tires Plus and Wheel Works. 2016 ............................... 57.0 cents 2016 ...................... 5.3 cents Large sedan .......... 20.99 cents Bridgestone also operates 200+ GCR and TDS stores in the U.S. and 39 GCR stores in Canada that primarily are commercial, but which also do a measurable amount of retail/consumer business. 2015 .................... 58.0 cents 2015 ...................... 5.1 cents Minivan................ 20.10 cents 3 — Collective sales estimate for TBC’s National Tire & Battery, Merchant’s Tire and Tire Kingdom stores; TBC also franchises 440+ Big O Tires outlets in the U.S. and 35 in Canada, and 970+ Midas Intl. outlets in the U.S. 2014 .................... 59.2 cents 2014 ...................... 5.1 cents Small SUV ............ 17.57 cents 4 — Estimated tire and auto service sales for Walmart and Sam’s Club locations in the U.S and Canada 2013 .................... 60.8 cents 2013 ...................... 5.0 cents 5 — Represents ‘service center’ revenue, which includes tires and automotive service; excludes $1.22 billion in retail’ sales of Medium SUV.......... 21.09 cents automotive parts to do-it-yourself customers 2012 .................... 59.6 cents 2012 ...................... 4.2 cents 1/2 Ton Pickup ....... 23.18 cents 6 — Total corporate sales; tires represent 49% and auto maintenance/brakes/undecar 51% 7 — Collective sales gure for Quick Lane network in the U.S. and Canada; stores are independently owned by Ford/Lincoln dealers 2010 .................... 56.6 cents 2010 ...................... 4.5 cents Hybrid ................. 13.19 cents 8 — No. of Costco outlets with tire service; includes Puerto Rico 9 — Sears is closing 34 more stores in Q1 2019 2005 .................... 56.1 cents 2005 ...................... 5.3 cents EV ...................... 11.28 cents 10 — Proforma sales data for Mavis, which acqured Kauffman Tire’s retail business -- 69 stores/$114M in sales -- in January 2018 and Express Oil Change/Tire Engineers --- 480 stores/--- in February 2018 2000 .................... 49.1 cents 2000 ...................... 3.6 cents Average ............... 19.26 cents 11 — Estimated sales for Goodyear’s U.S. retail network, including Just Tires 12 — Goodyear is 50% owner of Fountain Tire 1995 .................... 41.2 cents 1995 ...................... 2.6 cents 3 - AAA data; maintentance, repair, tires & fuel 13 — Estimated collective sales for the 200+ Point S outlets in the U.S. and 200+ in Canada 1 2 * U.S. Department of Transportation American Automobile Association Maintenance, repair and tires TIRE BUSINESSgraphics by Michael McCrady Visit us on the web at www.tirebusiness.com TIRE BUSINESS, February 18, 2019 • 11 North American Shares Hankook .............................................. Nissan North America Inc. Goodyear/Dunlop ........................ 25.5% Pirelli .................................................. Michelin/Goodrich ...................... Michelin/Goodrich ....................... 22.5% Toyo .................................................... Continental/General ........................ Bridgestone/Firestone..................17.5% Goodyear/Dunlop ............................ The 10 largest tire manufacturers collectively accounted for an estimated General Motors Co. Bridgestone/Firestone......................... Continental/General ....................16.0% Bridgestone/Firestone................ Hankook .........................................7.0% Falken .................................................. 80.4 percent of the $47.3 billion tire sales in North America in 2018. Goodyear/Dunlop ....................... Hankook .............................................. Pirelli .............................................4.0% Michelin/Goodrich ........................... Kumho ............................................2.0% Toyo ..................................................... Continental/General ........................... Kumho ................................................. Toyo ................................................1.5% Hankook .............................................. Yokohama ......................................1.5% Pirelli .................................................. Subaru of America Goodyear Falken .............................................1.0% Bridgestone/Firestone................ % Michelin Nexen ..............................................1.0% Honda North America Inc. 13.4 % Continental/General ................... 19.2 Cooper .............................................<1% Goodyear/Dunlop ............................ Falken .................................................. BMW of North America Michelin/Goodrich ........................... Goodyear/Dunlop ................................ Continental/General .................. Bridgestone/Firestone..................... Bridgestone Pirelli .......................................... Continental/General ........................ Tesla Inc. Bridgestone/Firestone..................... Hankook ............................................... Continental/General .................. Americas Others Goodyear/Dunlop ................................ Yokohama ........................................... Goodyear/Dunlop ............................ % Michelin/Goodrich ............................... Michelin/Goodrich ........................... 20.6 % Hyundai-Kia Automotive Pirelli .................................................. 19.6 Yokohama ...........................................