Filed by the Registrant ☒ | Filed by a Party other than the Registrant ☐ |
☐
|
Preliminary Proxy Statement
|
☐
|
Confidential, for Use of the Commission Only (as permitted by Rule 14a-6(e)(2))
|
☐
|
Definitive Proxy Statement
|
☒
|
Definitive Additional Materials
|
☐
|
Soliciting Material Pursuant to §240.14a-12
|
☒
|
No fee required.
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|
☐
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Fee computed on table below per Exchange Act Rules 14a-6(i)(1) and 0-11.
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(1)
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Title of each class of securities to which transaction applies:
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(2)
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Aggregate number of securities to which transaction applies:
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(3)
|
Per unit price or other underlying value of transaction computed pursuant to Exchange Act Rule 0-11 (set forth the amount on which the filing fee is calculated and state how it was
determined):
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(4)
|
Proposed maximum aggregate value of transaction:
|
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(5)
|
Total fee paid:
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☐
|
Fee paid previously with preliminary materials.
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|
☐
|
Check box if any part of the fee is offset as provided by Exchange Act Rule 0-11(a)(2) and identify the filing for which the offsetting fee was paid previously. Identify the previous
filing by registration statement number, or the Form or Schedule and the date of its filing.
|
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(1)
|
Amount Previously Paid:
|
|
(2)
|
Form, Schedule or Registration Statement No.:
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(3)
|
Filing Party:
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(4)
|
Date Filed:
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• |
Diversified Auto Suppliers with Electronics Exposure: Aptiv, Continental, Denso Corporation, HELLA GmbH & Co., Magna International, Valeo;
|
• |
Automotive Focused Technology / Electronics Players: Garmin, Gentex Corporation, Softing, TomTom, Visteon Corporation;
|
• |
Applied Technology Software Leaders: Autodesk, Cadence Design Systems, Dassault Systèmes, Hexagon, PTC, Synopsys; and
|
• |
Chip / Semiconductor Players: Allegro MicroSystems, Ambarella,
|
AV / Sales
|
AV / EBITDA
|
||||
Company
|
2021E
|
2022E
|
2021E
|
2022E
|
|
Diversified Auto Suppliers with Electronics Exposure
|
|
|
|||
Aptiv
|
2.6x
|
2.3x
|
17.3x
|
14.4x
|
|
Continental
|
0.8x
|
0.7x
|
6.2x
|
5.0x
|
|
Denso Corporation
|
1.1x
|
1.0x
|
8.0x
|
6.5x
|
|
HELLA GmbH & Co.
|
1.1x
|
1.0x
|
9.6x
|
7.3x
|
|
Magna International
|
0.6x
|
0.6x
|
5.8x
|
4.9x
|
|
Valeo
|
0.6x
|
0.5x
|
4.6x
|
3.9x
|
|
Automotive Focused Technology / Electronics Players
|
|
|
|
||
Garmin
|
5.6x
|
5.2x
|
20.9x
|
19.1x
|
|
Gentex Corporation
|
4.1x
|
3.6x
|
12.7x
|
11.0x
|
|
Softing
|
0.7x
|
0.6x
|
6.7x
|
4.3x
|
|
TomTom
|
1.1x
|
1.0x
|
NM1
|
39.8x
|
|
Visteon Corporation
|
1.1x
|
0.9x
|
12.9x
|
8.9x
|
|
Applied Technology Software Leaders
|
|||||
Autodesk
|
14.7x
|
12.4x
|
44.0x
|
32.1x
|
|
Cadence Design Systems
|
14.5x
|
13.4x
|
36.3x
|
32.3x
|
|
Dassault Systèmes
|
12.7x
|
11.6x
|
34.1x
|
31.9x
|
|
Hexagon
|
8.0x
|
7.4x
|
21.5x
|
19.6x
|
|
PTC
|
8.4x
|
7.8x
|
30.4x
|
22.1x
|
|
Synopsys
|
10.8x
|
9.9x
|
32.1x
|
28.5x
|
|
Chip / Semiconductor Players
|
|||||
Allegro MicroSystems
|
8.0x
|
7.1x
|
28.9x
|
23.9x
|
|
Ambarella
|
16.6x
|
13.7x
|
NM1
|
57.5x
|
|
Infineon Technologies
|
4.3x
|
3.9x
|
15.5x
|
13.1x
|
|
Intel Corporation
|
3.1x
|
3.1x
|
7.0x
|
6.8x
|
|
Melexis
|
5.7x
|
5.2x
|
19.4x
|
17.2x
|
|
NVIDIA
|
20.4x
|
17.8x
|
50.3x
|
43.3x
|
|
Renesas Electronics
|
3.6x
|
3.2x
|
11.3x
|
10.2x
|
|
Sensata Technologies
|
2.9x
|
2.7x
|
12.1x
|
10.6x
|
|
Silicon Laboratories
|
7.0x
|
6.9x
|
61.6x
|
59.6x
|
|
STMicroelectronics
|
3.1x
|
2.9x
|
12.1x
|
10.6x
|
|
Wolfspeed (f/k/a Cree)
|
15.3x
|
11.0x
|
NM1
|
NM1
|
Institution
|
Price Target ($)
|
Date of Update
|
|
Pareto Securities
|
38(1)
|
28-Apr-21
|
|
DNB Markets
|
34(1)
|
29-Apr-21
|
|
SEB
|
34(1)
|
28-Apr-21
|
|
Handelsbanken
|
35
|
29-Apr-21
|
|
Nordea
|
32(1)
|
29-Apr-21
|
|
Mizuho
|
32
|
28-Apr-21
|
|
Carnegie
|
30(1)
|
29-Apr-21
|
|
Jefferies
|
25
|
29-Apr-21
|
|
Barclays
|
25
|
28-Apr-21
|
|
Deutsche Bank
|
25
|
15-Jul-21
|
|
JP Morgan
|
24
|
28-Apr-21
|
|
Cowen & Co
|
23
|
28-Apr-21
|
|
Wolfe Research LLC
|
22
|
29-Apr-21
|
|
Morgan Stanley
|
20
|
13-May-21
|
|
Kepler Cheuvreux
|
19
|
29-Apr-21
|
|
RBC
|
19
|
28-Apr-21
|
|
Credit Suisse
|
17
|
15-Jul-21
|
• |
Aptiv PLC
|
• |
Garmin Ltd.
|
• |
Sensata Technologies Holding PLC
|
• |
Gentex Corporation
|
• |
TomTom NV
|
• |
Softing AG
|
• |
Denso Corporation
|
• |
Continental AG
|
• |
Magna International Inc.
|
• |
Valeo
|
• |
Hella KGaA Hueck & Co.
|
• |
Visteon Corporation
|
|
|
EV/Sales
|
EV/EBITDA
|
||||||
|
|
2021E
|
|
|
2022E
|
2021E
|
2022E
|
||
Automotive Technology Suppliers
|
|
|
|
|
|||||
Aptiv PLC
|
|
|
2.66x
|
|
|
2.36x
|
17.9x
|
14.9x
|
|
Garmin Ltd.
|
|
|
5.70x
|
|
|
5.34x
|
21.0x
|
19.2x
|
|
Sensata Technologies Holding PLC
|
|
|
3.00x
|
|
|
2.77x
|
12.3x
|
11.0x
|
|
Gentex Corporation
|
|
|
4.08x
|
|
|
3.61x
|
12.6x
|
11.0x
|
|
TomTom NV
|
|
|
1.21x
|
|
|
1.16x
|
136.3x
|
51.0x
|
|
Softing AG
|
|
|
0.80x
|
|
|
0.69x
|
14.2x
|
7.6x
|
|
Diversified Automotive Suppliers with E/E Exposure
|
|
|
|
|
|||||
Denso Corporation
|
|
|
1.07x
|
|
|
0.98x
|
8.1x
|
6.5x
|
|
Continental AG
|
|
|
0.88x
|
|
|
0.83x
|
6.8x
|
5.7x
|
|
Magna International Inc.
|
|
|
0.54x
|
|
|
0.48x
|
5.0x
|
4.2x
|
|
Valeo
|
|
|
0.60x
|
|
|
0.54x
|
6.4x
|
5.5x
|
|
Hella KGaA Hueck & Co.
|
|
|
1.02x
|
|
|
0.95x
|
8.7x
|
7.8x
|
|
Visteon Corporation
|
|
|
1.07x
|
|
|
0.89x
|
13.3x
|
8.9x
|
|
Overall Mean
|
|
|
1.89x
|
|
|
1.72x
|
21.9x
|
12.8x
|
|
Overall Median
|
|
|
1.07x
|
|
|
0.97x
|
12.5x
|
8.3x
|
|
1st Quartile
|
|
|
2.93x
|
|
|
2.69x
|
18.4x
|
15.7x
|
|
3rd Quartile
|
|
|
0.98x
|
|
|
0.88x
|
8.6x
|
7.3x
|
|
Veoneer (Management Projections) at $34.55
|
|
|
2.01x
|
|
|
1.68x
|
(17.9x)
|
(57.8x)
|
|
Veoneer (Broker Consensus) at $34.55
|
|
|
2.11x
|
|
|
1.73x
|
(17.6x)
|
(58.8x)
|
|
Veoneer (Management Projections) at $37.00 (Merger Consideration)
|
|
|
2.23x
|
|
|
1.87x
|
(19.9x)
|
(64.3x)
|
|
Veoneer (Broker Consensus) at $37.00 (Merger Consideration)
|
|
|
2.34x
|
|
|
1.92x
|
(19.5x)
|
(65.4x)
|
Implied Value Reference Range Per Share of Veoneer Common Stock
|
Merger
Consideration
|
|||||||||||
2021E EV/Sales
|
$
|
20.75
|
$
|
26.75
|
$
|
37.00
|
||||||
2022E EV/Sales
|
$
|
22.25
|
$
|
28.50
|
Announcement
Date
|
|
Target
|
|
Acquirer
|
|
EV/LTM
Sales
|
EV/LTM
EBITDA
|
August 2021
|
HELLA GmbH & Co. KGaA
|
Faurecia S.A.
|
1.05x
|
7.6x
|
|||
Jan 2019
|
|
TomTom NV
|
|
Bridgestone Corporation
|
|
5.24x
|
12.7x
|
Oct 2018
|
|
Clarion Co Ltd
|
|
Faurecia SA
|
|
0.84x
|
9.5x
|
Jul 2018
|
|
AMETEK, Inc.
|
|
Motec GmbH
|
|
2.59x
|
n.a.
|
Mar 2018
|
|
Laird PLC
|
|
Advent International Corporation
|
|
1.28x
|
10.0x
|
Jul 2017
|
|
Alpine Electronics Inc.
|
|
Alps Electric Co., Ltd.
|
|
0.40x
|
8.3x
|
Mar 2017
|
|
Mobileye N.V.
|
|
Intel Corporation
|
|
41.0x1
|
n.m.2
|
Feb 2017
|
|
Orlaco Products BV
|
|
Stoneridge, Inc.
|
|
1.60x
|
n.a.
|
Jan 2017
|
|
PKC Group Plc
|
|
Motherson Sumi Systems Ltd
|
|
0.81x
|
11.5x
|
Nov 2016
|
|
Harman International Industries, Incorporated
|
|
Samsung Electronics Co., Ltd.
|
|
1.31x
|
10.3x
|
Feb 2016
|
|
TechniSat Digital GmbH
|
|
Preh Holding GmbH; Ningbo Joyson Electronic Corp.
|
|
0.56x
|
6.7x
|
Apr 2016
|
|
IEE S.A.
|
|
Aerospace Hi-tech Holding Group Co.
|
|
0.84x
|
9.4x
|
Jul 2015
|
|
HellermannTyton Group PLC
|
|
Delphi Automotive PLC
|
|
2.65x
|
13.2x
|
May 2015
|
|
Elektrobit Corporation
|
|
Continental AG
|
|
3.28x
|
26.7x
|
Mean
|
|
1.73x
|
11.4x
|
||||
Median
|
|
1.28x
|
10.0x
|
||||
Veoneer 2021 June LTM Sales Multiple
|
|
2.51x
|
n.m.
|
||||
Veoneer 2021E Sales Multiple
|
|
2.23x
|
n.m.
|
1
|
Excluded for purposes of calculating the mean and median.
|
2
|
Negative multiples and EV/LTM EBITDA multiples over 100.0x denoted as “n.m.”
|
3
|
Implied multiple at Merger Consideration price.
|
Implied Value Reference Range Per Share of Veoneer Common Stock
|
Merger
Consideration
|
|||||||||||
EV/LTM Sales
|
$
|
23.75
|
$
|
34.50
|
$
|
37.00
|
Implied Value Reference Range Per Share of Veoneer Common Stock
|
Merger
Consideration
|
|||||||||||
10-year DCF analysis
|
$
|
24.25
|
$
|
33.75
|
$
|
37.00
|
||||||
15-year DCF analysis
|
$
|
28.00
|
$
|
39.00
|
• |
historic closing prices of shares of Veoneer Common Stock, noting, as a reference point, that the closing price of shares of Veoneer Common Stock ranged from $14.64 to $40.46 in the
fifty two- (52) week period preceding October 1, 2021, the last trading day prior to public announcement of the transaction;
|
• |
based on information Rothschild & Co obtained from FactSet, twenty (20) selected equity analyst per share target prices for shares
of Veoneer Common Stock as of October 1, 2021, noting that the range of these target prices was from $23.00 to $60.45 and the median of these target prices was $31.25
|
Institution
|
Price Target ($)
|
Date
|
|
DNB Markets
|
36.50(1)
|
8-Aug-21
|
|
Jefferies
|
23.00
|
22-Jul-21
|
|
Credit Suisse
|
37.00
|
18-Aug-21
|
|
UBS
|
31.25
|
29-Jul-21
|
|
Berenberg
|
31.25
|
26-Jul-21
|
|
Pareto Securities
|
60.45(1)
|
25-Jul-21
|
|
Kepler Cheuvreux
|
31.25
|
28-Jul-21
|
|
Deutsche Bank Research
|
25.00
|
23-Jul-21
|
|
Barclays
|
24.00
|
23-Jul-21
|
|
RBC
|
31.25
|
5-Aug-21
|
|
Cowen & Company
|
31.25
|
23-Jul-21
|
|
ABG Sundal Collier
|
30.80(1)
|
5-Aug-21
|
|
Carnegie
|
31.37(1)
|
5-Aug-21
|
|
Danske Bank
|
37.00
|
3-Sep-21
|
|
JP Morgan
|
24.00
|
23-Jul-21
|
|
Mizuho Securities
|
37.00
|
1-Sep-21
|
|
Nordea Equity Research
|
36.64(1)
|
6-Sep-21
|
|
Evercore ISI
|
31.25
|
29-Jul-21
|
|
Handelsbanken
|
35.00
|
25-Jul-21
|
|
SEB Group
|
33.65(1)
|
8-Sep-21
|
|
(1) Converted from SEK to USD at an exchange rate of 0.11 SEK/USD
|
• |
; and the premiums paid in one hundred and three (103) selected
precedent transactions, involving U.S. targets announced over the last five (5) years with implied enterprise values between $1 billion and $5 billion (excluding oil and gas and real estate transactions) for cash only, noting that the first
(1st) and third (3rd) quartile of premiums paid in these selected transactions relative to the target company’s closing stock price on the day prior to public announcement of the transaction, ranged from fourteen point three percent (14.3%)
to sixty three point eight percent (63.8%) and based on the first (1st) and third (3rd) quartile premiums noted above and Rothschild & Co’s professional judgment, Rothschild & Co applied an illustrative range of premiums of fifteen
percent (15%) to sixty five percent (65%) to the closing price per share of Veoneer Common Stock on July 22, 2021, the resulting range of implied prices was $23.00 to $33.00 per share of Veoneer Common Stock.
|
|
Business Plan
|
|
Extrapolations
|
|||||||||||||||||
|
2021E
|
|
2022E
|
|
2023E
|
|
2024E
|
|
2025E
|
|
2026E
|
|
2027E
|
|
2028E
|
|
2029E
|
|
2030E
|
|
|
($ MM)
|
|||||||||||||||||||
Active Safety
|
|
969
|
|
1,275
|
|
1,677
|
|
1,983
|
|
2,333
|
|
2,693
|
|
3,139
|
|
3,574
|
|
3,987
|
|
4,411
|
RCS & Other Niche Products(1)
|
|
852
|
|
928
|
|
982
|
|
936
|
|
953
|
|
967
|
|
982
|
|
996
|
|
1,011
|
|
1,026
|
Brake Control Systems
|
|
30
|
|
7
|
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net Sales
|
|
1,850
|
|
2,210
|
|
2,661
|
|
2,919
|
|
3,286
|
|
3,661
|
|
4,120
|
|
4,570
|
|
4,998
|
|
5,438
|
Direct Costs
|
(1,328)
|
(1,563)
|
(1,849)
|
(1,989)
|
(2,194)
|
(2,402)
|
(2,658)
|
(2,908)
|
(3,146)
|
(3,390)
|
||||||||||
Production Overhead (POH)
|
(225)
|
(241)
|
(257)
|
(275)
|
(309)
|
(345)
|
(389)
|
(431)
|
(472)
|
(514)
|
||||||||||
Gross Profit
|
|
297
|
|
406
|
|
555
|
|
655
|
|
783
|
|
913
|
|
1,074
|
|
1,231
|
|
1,381
|
|
1,534
|
Research, Development & Engineering
|
(459)
|
(427)
|
(414)
|
(413)
|
(415)
|
(416)
|
(468)
|
(524)
|
(576)
|
(631)
|
||||||||||
SG&A and Other Inclusions / Exclusions
|
(169)
|
(166)
|
(165)
|
(166)
|
(168)
|
(171)
|
(173)
|
(176)
|
(179)
|
(192)
|
||||||||||
Operating Income
|
|
(331)
|
|
(187)
|
|
(23)
|
|
76
|
|
200
|
|
327
|
|
432
|
|
531
|
|
625
|
|
711
|
Depreciation and Amortization
|
123
|
123
|
129
|
122
|
138
|
155
|
176
|
196
|
215
|
234
|
||||||||||
EBITDA(2)
|
|
(208)
|
|
(64)
|
|
106
|
|
198
|
|
338
|
|
482
|
|
608
|
|
727
|
|
840
|
|
946
|
Δ Net Working Capital
|
|
(37)
|
|
(18)
|
|
(23)
|
|
(13)
|
|
(18)
|
|
(19)
|
|
(23)
|
|
(22)
|
|
(21)
|
|
(22)
|
Capital Expenditures
|
|
(91)
|
|
(105)
|
|
(85)
|
|
(122)
|
|
(138)
|
|
(155)
|
|
(176)
|
|
(196)
|
|
(215)
|
|
(234)
|
Cash Tax Expense(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(134)
|
|
(171)
|
Unlevered Free Cash Flow(4)
|
|
(336)
|
|
(187)
|
|
(2)
|
|
63
|
|
181
|
|
308
|
|
409
|
|
509
|
|
470
|
|
519
|
|
Extrapolations
|
|||||||||
|
2031E
|
|
2032E
|
|
2033E
|
|
2034E
|
|
2035E
|
|
|
($ MM)
|
|||||||||
Active Safety
|
|
4,804
|
|
5,150
|
|
5,430
|
|
5,633
|
|
5,746
|
RCS & Other Niche Products
|
|
1,042
|
|
1,057
|
|
1,073
|
|
1,089
|
|
1,106
|
Brake Control Systems
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
Net Sales
|
|
5,846
|
|
6,207
|
|
6,504
|
|
6,722
|
|
6,851
|
Direct Costs
|
(3,617)
|
(3,818)
|
(3,983)
|
(4,105)
|
(4,177)
|
|||||
Production Overhead (POH)
|
(552)
|
(587)
|
(615)
|
(636)
|
(648)
|
|||||
Gross Profit
|
|
1,676
|
|
1,802
|
|
1,906
|
|
1,982
|
|
2,026
|
Research, Development & Engineering
|
(681)
|
(725)
|
(762)
|
(788)
|
(804)
|
|||||
SG&A and Other Inclusions / Exclusions
|
(206)
|
(219)
|
(229)
|
(237)
|
(241)
|
|||||
Operating Income
|
|
789
|
|
858
|
|
915
|
|
957
|
|
982
|
Depreciation and Amortization
|
253
|
269
|
282
|
292
|
297
|
|||||
EBITDA
|
|
1,042
|
|
1,127
|
|
1,197
|
|
1,248
|
|
1,279
|
Δ Net Working Capital
|
|
(20)
|
|
(18)
|
|
(15)
|
|
(11)
|
|
(6)
|
Capital Expenditures
|
|
(253)
|
|
(269)
|
|
(282)
|
|
(292)
|
|
(297)
|
Cash Tax Expense
|
|
(189)
|
|
(206)
|
|
(220)
|
|
(230)
|
|
(236)
|
Unlevered Free Cash Flow
|
|
579
|
|
634
|
|
680
|
|
716
|
|
740
|
(1) |
RCS & Other Niche Products includes Brake Control ECU / PCB sales: 2021: $62m, 2022: $48m, 2023: $46m.
|
(2) |
EBITDA is defined for purposes of the Company Projections as operating income plus depreciation and amortization.
|
(3) |
~$10-15m of yearly cash taxes in certain jurisdictions excluded due to its minor impact on the 15-year cash flow valuation analysis.
|
(4) |
Unlevered Free Cash Flow is defined for purposes of the Company Projections as EBITDA (as defined in Note 1 above), less changes in net working capital, less capital expenditures and
less tax expenses.
|