NEWSLETTER

NEWSLETTER

Industrials

Electric
Vehicles
The Future of Mobility
February 2020

1September
NEWSLETTER:
2019 INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com
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CONTENTS

1 Introduction 03-06

2 Global EV Status and Forecast 07-10

3 Global EV Adoption Targets 11-16

4 Electric Vehicles Value Chain 17-37

5 Key Trends and Growth Drivers 38-41

6 Trading Comparables 42-47

7 M&A Trends 48-51

8 Share Price Performance 52-56

9 GMAP Industrials Team 57-58

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Electric Vehicles

Introduction

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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

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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

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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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Electric Vehicles

Global EV Status
and Forecast

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Global EV Forecast

Status of Electric Mobility: Developing at a Rapid Pace

Electric Cars

Europe followed with

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

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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

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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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Electric Vehicles

Global EV
Adoption Targets

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 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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Introduction

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%

Total Annual NEV Sales

• The massive subsidy cuts may hinder the achievement
of expected market share 10

(millions)
• Further, regulators are expected to further cut
subsidies from 2020 onwards, which could be a major 5
setback to electric car sales
• 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
300 285 307
• Carmakers are embracing electrification and 251
214
Project Volumes (in ‘000)

capitalizing on scaling up EV volumes 200 176

• Further, EU-manufactured battery supply is expected 100
98
to match with the EV growth after 2023, subsequent to 48 60
12 18 23 29 39
delivery of current plans 0

• These confirmed plans are likely to generate nearly 131

GWh of battery production capacity by 2023 and is
Volkswagen PSA
expected to grow to 274 GWh in 2028 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

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Introduction

Notable Developments

The German government and automakers are planning to increase cash incentives for EVs as a part
Germany 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 intrastructure 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 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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Introduction

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
• According to Navigant Research, the Canadian market
Year
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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Global Regulations

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

Electric Vehicles
Value Chain

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 EV Value Chain

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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EV Value Chain

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 impede their use
Lead-Acid Batteries

• 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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EV Value Chain

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

Value (in USD bn)

• 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
13.4
15.6
vehicles is expected to drive the market growth
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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EV Value Chain

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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EV Value Chain

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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EV Value Chain

Planned Battery Manufacturing

Capacity Expansion Megafactory Capacity by
Country
A battery megafactory is a lithium-ion battery cell production factory which is
capable of producing over 1 GWh (gigawatt hour) of battery cells per year. 5.6%
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
13.8%
Global Lithium-ion Megafactory Capacity 2010 – 2028

2017
Total:
1,000
800 144.8
GWh

600 13.0% GWh 62.9%

400
200
0
2012
2011

2014
2015

2024(f)
2010

2018

2021(f)
2013

2016
2017

2019(f)

2022(f)
2020(f)

2023(f)

2025(f)
2026(f)
2027(f)
2028(f)
0.6%
The growing battery capacity expansion requires significant volume of raw 0.6%
materials including lithium, cobalt, nickel and graphite, which showcases
4.0% 10.3%
significant potential for growth in raw material demand. Governments and
businesses worldwide are focusing on securing raw material supply to 3.4%

2023
enhance battery storage mechanism. Procurement of these materials is Total:
6.2%
critical in line with securing required investment based on distinctive,
complex, and global supply chains. 6.0%
658.0
GWh 63.0%
Existing and Planned Battery Cell Production 2.7%
Finland 3.1%
Germany 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%
2028

South Korea 4.5% Total:

Poland 23.1 GWh
Czech Republic 5 GWh 4.6% 1,102.5
1 GWh Hungary 5.5% GWh
57.2%
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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 EV Value Chain

Global Raw Material Demand vs Lithium-ion Cell/Megafactory Capacity

292 GWh 1,189.4 GWh 1,956.6 GWh
2,500,000

1,427,280

1,265,401
1,274,357
2,000,000
Tonnes

2,347,920
1,500,000

667,409

2,112,984

351,067
350,400
303,440

271,280
115,290
1,000,000
98,399

500,000

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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EV Value Chain

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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EV Value Chain

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
Automotive OEMs: Shifting towards EVs
into how quickly the world will adopt EVs. Below are highlighted the significant EV model 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 models
$17.2bn in R&D for electrification, autonomous driving,
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
cars entire brand
Up to 3 million EV
sales annually produced (300 models)
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 EV Sales Forecast

Model announcements
USD) or acquisitions
Source: M.J. Bradley & Associates and press releases

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EV Value Chain

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

Shared mobility
Electrification

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
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
New entrants

autonomous "driving" have led to

convergence
challenged existing business models

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
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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EV Value Chain

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 (%)
(2012 = 100)

7.2 7.3 7.2 7.2

Indexed

123 126 127 7.1 7.1

120 6.8
113
107
100 ~120 - 125
~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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EV Value Chain

How automotive suppliers are proceeding for electrification

Automotive suppliers are investing billions on EV and autonomous vehicles to gain major share in the expected
Growth Drivers
multitrillion dollar market. 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
• GKN Automotive is conducting extensive testing and trail runs of battery electric vehicle (BEV) with
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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EV Value Chain

Electric Two-wheelers
Growth Drivers
1/4th 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
Major circulation of electric two-wheelers is observed in
250 million units till 2018
India, China, and ASEAN countries. Further, deployment
of electric two-wheelers is observed through rental
models in European countries
26 million units produced in 2018
• 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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EV Value Chain

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
Number of chargers

Number of chargers

140 2.5
120
(thousands)
(thousands)

100 2.0
80 1.5
60 1.0
40
20 0.5
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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EV Value Chain

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

8–12 hours 4–6 hours

0.5 hours
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
(in thousand units)

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
400 371
grew by 20% in 2018 compared to the growth of 24%,
30%, and 80% in 2017, 2016, and 2015 respectively
• The count of public chargers installed globally remains 193
632,000 till 2018. Further, ratio of public chargers per 200 136
77 101
electric car has declined from 0.14 in 2017 to 0.11 in
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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EV Value Chain

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 5%
41%
3% Germany
6% France
6% Norway
4% Netherlands 78%
13% 5%
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
to be a concern factor as the EV per 79
44 Union
public charger ratio globally is still
above 10. 25 United
48 18 53
States
6 23
• Developed nations like US and Norway
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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EV Value Chain

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 19
14 China
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
demand of around 139 billion kilowatt. European
5 17
Anticipated investment for this is around Union
USD11 bn 15
5
• Further, European Union is expected to invest 2 8
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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EV Value Chain

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 volume
e-motor
3 19.5

Remove Assumed 50-kWh3

14 ICE-related content battery-pack cost at 11
Direct
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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EV Value Chain

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
and value- for urban Partnership
and e-motor 22.5
neutral mobility during
decontenting2 transition3 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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 EV Value Chain

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 Engine Control Modules (ECU)
Tire Pressure Monitoring for DC-DC converters
System (TPMS) • High current power inductors
• Power inductors, gate drive • Custom transformers
• RFID coils for LF circuit wake-up 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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Electric Vehicles

Key Trends and

Growth Drivers

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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

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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 costs. Also in future battery costs will continue declining, making EVs
Battery cost will
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 comply with increased regulations for CO2-emission in
511
500 different countries. China has introduced New-Energy
421 Vehicle (NEV) whereas Europe mandated limits related
400 335 to Corporate Average Fuel Consumption (CAFC)
(in units)

300 263
• Another reason behind these new launches is the
200 162 expectation of fierce competition in near future
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

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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
Growth Drivers
Crude Oil increased 12%, 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% 14%
12%
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
Driving range (km)

Polestar 2
550
Audi e-tron Porsche Taycan
500 Daimler/BYD Mercedes-Benz
EQC
ID. Crozz Genesis Essentia
Denza 500 Ford Mach 1
Jaguar I-PACE Kia e-Niro
450
Hyundai Kona
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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Electric Vehicles

Valuation and
Share Price Analysis

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Valuation

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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Valuation

(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)

44 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

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)

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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)

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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)

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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

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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 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

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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

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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

51 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%
Indexed to 100

200 Toyota 10.9%

GM 3.2%
150
Honda (10.6%)
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%
Indexed to 100

Koito 50.6%
400 CUB
44.5%
Elecparts
Stanley
200 25.0%
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
Indexed to 100

Topre 16.5%
200
Marcopolo 5.8%
150 Plastic
(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)

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Valuation

Select Auto Safety Equipment

600

500
Mosa (0.7%)
Indexed to 100

400
HMT (Xiamen) (3.0%)
300
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
Indexed to 100

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

200 Mould & 30.3%

Plastic
Huazhong In-
150 23.2%
Vehicle

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)

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Valuation

Select Brake Systems

600 ITT 97.6%

Brembo 80.5%
500
Nissin Kogyo 36.0%
Indexed to 100

400
Zhejiang VIE 13.2%

300 Shenzhen
9.3%
Terca
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%
Indexed to 100

250 Exedy (8.3%)

200 Dana (21.4%)

150 Linamar (32.2%)

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
Indexed to 100

Riken (2.5%)
1200
Mahle-Metal
1000 (2.8%)
Leve
800 Aisan Industry (21.4%)
600 Chongqing
(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)

54 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com

Valuation

Select Exhausts & Emissions

300

250
Indexed to 100

200

150 Dorman 61.4%

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
Indexed to 100

Fujian
31.6%
200 Snowman
Hanon 8.3%
150 Zhejiang Yilida
(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%

Indexed to 100

TS Tech 19.0%
150 Toyoda Gosei 17.7%
Toyota
17.2%
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)

55 NEWSLETTER: INDUSTRIALS – ELECTRIC VEHICLES www.globalma.com

Valuation

Select Steering & Suspension

300

250
Ege Endustri 12.6%
Indexed to 100

200 Nexteer (7.9%)

150 S & T Motiv (12.9%)

JTEKT (26.8%)
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%
Indexed to 100

Linglong
150 Nokian 15.8%
Yokohama (4.5%)
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%
Indexed to 100

Autoliv 7.1%
100 Denso (0.3%)
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)

56 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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About Us
Established in 1999, Global M&A Partners is one of the world's leading partnerships of independent M&A firms gathered
together to offer to their respective clients best in class services for their goals completion. Operating through over 200
M&A advisors, we serve various sectors including Aerospace Defense, Food Beverage, Consumer Products, Business
Services, Energy Mining, Maritime Offshore, Healthcare, Pharmaceuticals, Industrials, Packaging, Leisure Retail and
Technology. The partnership operates in over 30 countries and has completed over 1500 transactions with a combined
value in excess of EUR 42bn since 2010.

© 2020 Global M&A Partners. All rights reserved.

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