Weekly Automotive Aftermarket Intelligence Report January 12, 2015 AUTOMOTIVE AFTERMARKET Automotive Aftermarket Stock Performance* 20% SLIPPING LEADING 15% Cooper Tire Remy 10% CarMax Pep Boys Lithia Uni-Select 5% Goodyear S&P 500 Penske Last Month’s Return Solera Boyd Monro (0.7%) KAR Advance Auto Genuine Parts 0% AutoZone O'Reilly Snap-on Sonic AutoNation Tenneco Asbury Dorman Copart (5%) Last Month’s Return Last Month’s Standard Motor LKQ Federal-Mogul Group 1 (10%) MPA (15%) U.S. Auto Parts S&P 500 Rush (20%) Last Week’s Return (0.7%) LAGGING IMPROVING (25%) (10%) (5%) 0% 5% Last Week’s Return Percent Change Segment Index1 1 Week 1 Month LTM Suppliers (1.6%) 0.7% 11.6% Retailers & Distributors (2.1%) (0.7%) 30.9% Independent Service Providers & Dealers (2.1%) 2.6% 28.1% Collision (0.8%) (3.2%) (4.3%) BB&T Automotive Aftermarket Index (1.1%) 0.7% 21.7% S&P 500 (0.7%) (0.7%) 12.0% 1 Weighted by market capitalization *Size of the bubble represents relative market capitalization Source: Capital IQ 1 Automotive Aftermarket Stock Performance 40% 30% 20% 10% 0% (10%) (20%) Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Suppliers Retailers & Distributors Independent Service Providers & Dealers Collision Source: Capital IQ BB&T Automotive Aftermarket Index S&P 500 Index Most Recent Quarter Sales Growth (Year-Over-Year) 50.6% 50% 45.8% 40% 35.9% 32.6% 30% 28.5% 21.3% 20% 17.5% 15.5% 12.2% 11.2% 10.7% 10% 10.5% 9.4% 10.4% 10.1% 9.8% 10.4% 7.1% 7.7% 8.2%8.0% 8.6% 8.3% 7.8% 6.0% 5.1% 2.1% 2.1% 3.8% 0.2% 0% (2.7%) (10%) (6.9%) LKQ Corp. LKQ Copart, Inc. Copart, CarMax Inc. Tenneco Inc. Tenneco Snap-on Inc. Uni-Select Inc. Uni-Select AutoZone, Inc. AutoNation Inc. Lithia Motors Inc. Solera Holdings Inc. Federal-Mogul Corp. Federal-Mogul Rush Enterprises, Inc. Sonic Automotive Inc. Dorman Products, Inc. Dorman Products, Advance Auto Parts Inc. Auto Parts Advance Remy International, Inc. Remy Genuine Parts Company Genuine Parts O'Reilly Automotive O'Reilly Inc. Group 1 Automotive Inc. 1 Group Monro Muffler Brake Inc. Muffler Brake Monro Cooper Tire & Rubber Co. & Rubber Tire Cooper Boyd Group Income Fund Group Boyd KAR Auction Services, Inc. KAR Auction Services, Inc. Goodyear Tire & Rubber Co. & Rubber Tire Goodyear U.S. Auto Parts Network, Inc. Auto Parts U.S. Standard Motor Products Inc. Motor Products Standard Pep Boys - Manny, Moe & Jack Moe & - Manny, Boys Pep Pep Boys - Manny, Moe & Jack Moe & - Manny, Boys Pep Motorcar Parts of America Inc. of Parts Motorcar Penske Automotive Group, Automotive Group, Inc. Penske Asbury Automotive Group, Asbury Automotive Group, Inc. Suppliers Retailers & Distributors Independent Service Providers & Dealers Collision Source: Capital IQ 2 Enterprise Value / Last 12 Months’ EBITDA Multiples1,2,3 SUPPLIERS RETAILERS & DISTRIBUTORS 10.0x 14.0x 8.6x 12.0x 12.4x 8.0x 12.2x 8.6x 8.7x 8.5x 11.1x 10.0x 9.8x 6.0x 8.0x 6.0x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x One Year Ago One Month Ago Current One Year Ago One Month Ago Current 5-Year Average 5-Year Average INDEPENDENT SERVICE PROVIDERS & DEALERS COLLISION 14.0x 18.0x 16.0x 12.0x 13.0x 13.1x 11.6x 16.1x 12.7x 14.0x 10.0x 13.9x 13.9x 12.0x 12.1x 8.0x 10.0x 8.0x 6.0x 6.0x 4.0x 4.0x 2.0x 2.0x 0.0x 0.0x One Year Ago One Month Ago Current One Year Ago One Month Ago Current 5-Year Average 5-Year Average TOTAL AUTOMOTIVE AFTERMARKET 14.0x 12.0x 12.0x 10.5x 10.0x 11.5x 11.9x 8.0x 6.0x 4.0x 2.0x 0.0x One Year Ago One Month Ago Current 5-Year Average 1 Enterprise Value = Market Capitalization + Debt – Cash; EBITDA = Earnings Before Interest, Taxes, Depreciation, and Amortization 2 Pep Boys is included in both Retailers & Distributors and Independent Service Providers & Dealers 3 KAR is included in both Retailers & Distributors and Collision Source: Capital IQ 3 Valuation Metrics As of 1/9/2015 ($ in millions, except per share) Stock 52 Week Market Price / P / E Forward PEG TEV / Revenue TEV / EBITDA Ticker Price High / Low Cap TEV TBV LTM CY 2015 CY 2016 CY 2015 CY 2016 LTM CY 2015 CY 2016 LTM CY 2015 CY 2016 SUPPLIERS Cooper Tire & Rubber Co. CTB $34.53 $35.31 / $21.95 $2,006 $2,407 2.8x 15.4x 12.8x 10.5x 0.8x 0.6x 0.7x 0.8x 0.8x 5.5x 6.1x 5.5x Dorman Products, Inc. DORM $47.63 $60.99 / $37.22 1,699 1,654 4.1x 19.4x 17.4x 14.6x 1.0x 0.9x 2.2x 1.9x 1.7x 10.6x 9.4x 8.7x Federal-Mogul Corp. FDML $14.27 $21.12 / $13.52 2,141 4,475 NM 16.5x 11.2x 7.3x NA NA 0.6x 0.6x 0.5x 6.8x 6.1x 5.1x Goodyear Tire & Rubber Co. GT $28.26 $28.98 / $18.87 7,759 13,706 7.0x 13.1x 9.1x 8.2x 0.8x 0.7x 0.7x 0.7x 0.7x 5.9x 5.4x 5.0x Motorcar Parts of America, Inc. MPAA $30.14 $36.43 / $18.56 540 534 3.0x 38.6x 16.9x 14.7x 0.7x 0.6x 1.9x 1.7x 1.4x NM 7.9x 6.5x Remy International, Inc. REMY $19.90 $20.24 / $18.65 637 897 14.4x 13.8x 12.2x 10.4x NA NA 0.8x 0.8x 0.7x 6.8x 6.3x 5.8x Snap-on, Inc. SNA $135.73 $140.22 / $96.24 7,887 8,699 6.4x 21.8x 17.8x 15.9x 1.4x 1.3x 2.5x 2.5x 2.4x 12.0x 11.4x 9.8x Standard Motor Products, Inc. SMP $35.88 $45.80 / $30.28 821 870 3.0x 14.7x 12.7x 11.2x 1.2x 1.1x 0.9x 0.9x 0.8x 7.9x 7.0x NA Tenneco, Inc. TEN $53.15 $69.22 / $46.64 3,246 4,332 6.2x 12.4x 10.5x 9.2x 0.7x 0.7x 0.5x 0.5x 0.4x 5.7x 5.1x 4.6x MEAN $2,971 $4,175 5.9X 18.4X 13.4X 11.3X 0.9X 0.8X 1.2X 1.2X 1.1X 7.7X 7.2X 6.4X MEDIAN $2,006 $2,407 5.2X 15.4X 12.7X 10.5X 0.8X 0.7X 0.8X 0.8X 0.8X 6.8X 6.3X 5.6X RETAILERS & DISTRIBUTORS Advance Auto Parts, Inc. AAP $160.30 $163.46 / $109.58 $11,701 $13,347 NM 23.6x 18.4x 15.8x 1.0x 0.9x 1.5x 1.3x 1.3x 11.8x 9.9x 9.0x AutoZone, Inc. AZO $606.02 $627.30 / $481.30 19,331 23,623 NM 19.1x 17.0x 15.1x 1.3x 1.1x 2.5x 2.3x 2.2x 11.1x 10.7x 10.1x Genuine Parts Company GPC $101.37 $109.00 / $76.50 15,495 16,206 7.5x 23.0x 20.1x 18.7x 2.5x 2.3x 1.1x 1.0x 1.0x 13.0x 11.3x 10.6x KAR Auction Services, Inc. KAR $34.69 $35.70 / $25.91 4,886 7,287 NM 43.9x 20.6x 18.9x 0.9x 0.8x 3.2x 2.9x 2.9x 15.8x 11.4x 11.2x O'Reilly Automotive, Inc. ORLY $187.81 $196.80 / $129.72 19,052 20,151 15.6x 27.4x 22.5x 19.9x 1.2x 1.1x 2.8x 2.6x 2.5x 14.3x 12.7x 11.8x Pep Boys - Manny, Moe & Jack PBY $9.48 $13.68 / $8.36 507 847 1.0x NM NM 33.3x NM NA 0.4x 0.4x 0.4x 9.4x 8.5x 6.1x U.S. Auto Parts Network, Inc. PRTS $2.21 $4.09 / $1.82 74 93 4.5x NM NM 44.2x NM 2.9x 0.3x 0.3x 0.3x 15.6x 8.8x 6.7x Uni-Select, Inc.1 UNS $25.95 $26.53 / $21.07 550 940 3.0x 16.3x 9.7x 9.3x 1.4x 1.3x 0.5x 0.5x 0.5x 11.1x 7.9x 7.9x MEAN $8,950 $10,312 6.3X 25.6X 18.0X 21.9X 1.4X 1.5X 1.5X 1.4X 1.4X 12.8X 10.1X 9.2X MEDIAN $8,293 $10,317 4.5X 23.3X 19.2X 18.8X 1.3X 1.1X 1.3X 1.2X 1.1X 12.4X 10.3X 9.6X INDEPENDENT SERVICE PROVIDERS & DEALERS Asbury Automotive Group, Inc. ABG $74.45 $78.73 / $45.31 $2,216 $3,370 4.8x 18.6x 15.3x 13.6x 0.9x 0.8x 0.6x 0.5x 0.5x 12.3x 10.7x 9.9x AutoNation, Inc. AN $58.95 $61.42 / $46.16 6,670 11,310 16.4x 18.3x 15.3x 13.6x 1.0x 0.9x 0.6x 0.6x 0.5x 13.1x 11.9x 10.9x CarMax, Inc.