" T H E D E A L " C A S E S T U D Y " T H E D E AL " C A S E S T U D Y JULY 2012 S T R I C T L Y P R I V A T E A N D C O N F I D E N T I A L " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L Table of contents 1. J.P.

Morgan case study competition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 1.1 Phase I: Screening of written submissions August 08, 2012 1 1.2 Phase II: Campus Championships September/October, 2012 1 1.3 Phase III: Country Championships November, 2012 1 2. Your work stream . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3. Relative valuation metrics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 3.1 Transaction comparables 3 3.2 Trading comparables 4 4. Submission guidelines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 5. Additional information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 1 1. J.P. Morgan case study competition Welcome to the 2012 J.P. Morgan IB case study competition! The competition provi des students with an invaluable opportunity to gain insight into the real world of corporate transactions which an investment banking analyst is involved in and the opportunity for winning tea ms to spend time with J.P. Morgan bankers. The competition is structured in three stages as listed below and the same case study will be used for all the three phases. 1.1 Phase I: Screening of written submissions August 08, 2012 Case study submissions are due on August 08, 2012 and must be a PowerPoint prese ntation along with an excel backup. Entries from each campus will be shortlisted by a J. P. Morgan panel. 1.2 Phase II: Campus Championships September/October, 2012 Shortlisted teams from each campus will participate in the campus round. It will be judged based on the written case study submission plus a team presentation followed by Q&A by J.P. Morgan bankers (total 30mins), at respective campuses. All team members must speak duri ng the presentation and Q&A. From each campus, the top team (Campus Champion) will be sel ected. Top 5 Campus Champions will be chosen from across all the participating campuses (Country Finalists) and will participate in the Country Championships. 1.3 Phase III: Country Championships November, 2012 Country Finalists will be invited to present at the Country Championships at J.P . Morgan Mumbai office. The format must be a PowerPoint presentation. The teams will be judged b ased on their team presentation with Q&A by J.P. Morgan bankers (total 30min). All team member s must

speak during the presentation and Q&A. " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 2 2. Your work stream (To be submitted by August 08, 2012) It is June 2012. You are financial advisor to the Board of Directors of BMW AG, a global automobile manufacturer, on its potential acquisition of a 100% stake in HarleyDavidson, one of the leading motorcycle manufacturers based in the United States. BMW is listed o n the Frankfurt Stock Exchange (ticker BMW.DE); Harley-Davidson is listed on the New York Stock Exchange (ticker HOG). Harley Davidson is a premium motorcycle manufacturer operating in 2 segments: mo torcycle segment (OpCo) and the financial services segment (FinCo) J.P. Morgan has provided you with research notes on BMW and an industry report o n European auto and auto parts. You can get the various company filings from their respecti ve websites. You have also been provided with some trading and transaction comparables for th e broad sector. However, you may need to conduct additional research for more industry b ackground, company history, competitive position and financial information. Based on the collected information, you need to submit a written proposal to the Board on the strategic rationale of this transaction, the work scope and project process tail ored for this deal. In this proposal (PowerPoint format), you need to cover: Why should BMW acquire Harley-Davidson? Should BMW acquire both the FinCo and OpCo? If not, please suggest alternative s trategies for the FinCo. What are the other key issues to consider as part of the acquisition of Harley-D avidson? What is your assessment of BMWs credit worthiness? You are also required to provide an indicative valuation in your proposal that c overs the following: What are the valuation drivers for Harley-Davidson? What is your assessment of Harley-Davidsons fair value as on June 15, 2012? You should consider discounted cash flow (DCF) valuation, valuation based on com parable transactions and comparable trading multiples and sum-of-the-parts analysis Clearly explain the assumptions underlying your valuation model Analyze the benefits and limitations of the various valuation methodologies in v aluing Harley-Davidson Discuss the synergies that BMW may achieve through the transaction How should BMW fund the transaction? What would be the impact of this acquisition on BMWs credit rating? Will the deal be accretive or dilutive for BMW? What other alternatives does BMW have apart from Harley-Davidson to achieve the same objective? Your written proposal should be a PowerPoint presentation and can also cover poi nts you think relevant or necessary, but should be no more than twenty (20) A4 slides. In addi

tion to the proposal, the Board also requires you to deliver your valuation model as a refer ence. While the Board has provided a list of questions and issues, it is up to you to decide which are most relevant. However, you should think about your response to all of the issue s, as they may come up in questions the Board poses to you. " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 3 3. Relative valuation metrics 3.1 Transaction comparables Please use your judgment in selecting appropriate comparables Transaction comparables (OpCo) Date Target Acquirer FV/ EBITDA FV/ EBIT Feb-12 Peugeot GM 2.1x 7.0x Jan-12 Proton holdings DRB-HICOM 5.1x 25.9x Nov-11 Brioni PPR 14.3x 30.5x May-11 Jimmy Choo Labelux 16.7x N/A May-11 Chrysler Fiat 3.2x 10.9x Mar-11 Bulgari LVMH 27.7x 50.6x Dec-10 Suzuki Volkswagen 6.7x 22.1x Nov-10 Ferrari ESOP 9.3x 22.3x Oct-10 Renault Nissan 4.1x 8.4x Oct-10 Nissan Renault 4.4x 9.8x Sep-10 Mitsubishi Fuso Truck and Bus DaimlerChrysler N/A 36.0x Jun-10 Ferrari Mediobanca SpA 16.0x 38.3x Jun-10 Caterpillar Electro-motive Diesel N/A N/A May-10 Chrysler Group Cerberus Capital Management 4.8x N/A Mar-10 Volvo Car Corporation Zhejiang Geely Holding Group 19.2x N/M Mar-10 Renault Nissan 4.3x 8.8x May-10 Stuart Weitzman Jones Apparel Group 8.0x 12.6x Mar-10 Net-A-Porter Richemont 26.5x N/A Jul-09 Tory Burch Tresalia Capital 10.0x N/A Dec-09 Bucyrus International, Inc. TEREX Corp. 8.7x 11.3x Nov-09 Stanley Black & Decker 10.7x 15.5x Aug-09 Porsche Volkswagen 9.4x 18.3x Sep-08 Manitou Gehl 13.4x 15.5x Mar-08 Jaguar and Land Rover Tata Motors 2.2x 3.5x Feb-08 Dorel Industries Cannondale 10.0x N/A Jan-08 Terex Corp. A.S.V. Inc. 24.0x 28.3x Apr-07 Puma PPR 12.2x 13.5x Jun-07 Valentino Permira 13.9x 17.8x Oct-07 SRI Sports Cleveland Golf Company 12.6x N/A Jul-07 Doosan Heavy Industries Ingersoll-Rand, Bobcat, Utility Equip. N/A 13.2x Mar-07 Aston Martin David Richards & Investment Dar 11.3x 20.2x Feb-07 Volvo Ingersoll-Rand, Road Development 11.5x 12.9x Oct-06 Oshkosh Truck JLG Industries 10.5x 12.0x Apr-06 Sandvik AB SDS Corp. 8.2x N/A Dec-05 Action Performance Companies International Speedway/ Speedway Motorsports 11.2x N/M Dec-05 Tommy Hilfiger Apax 6.7x 10.2x Aug-05 Reebok International Adidas-Soloman 10.9x N/A Jul-05 Stanley Works Facom Tools 7.2x 9.8x

Jun-05 Ferrari Mubadala Development Co. 8.9x 15.8x May-05 Joseph Onward Kashiyama 10.8x N/A May-05 Princesse Tam Tam Fast Retailing N/A 11.2x Jan-05 Doosan Heavy Industries Daewoo Heavy Industries 9.3x 11.8x Mean 10.7x 17.5x Median 10.0x 13.4x " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 4 3.2 Trading comparables Please use your judgment in selecting appropriate comparables Trading comparables (OpCo) Company Firm value ($mm) Market cap ($mm) EV/ Revenue EV/ EBITDA P/E 2012E 2013E 2012E 2013E 2012E 2013E Caterpillar 69,974 58,932 1.00x 0.90x 5.5x 4.9x 9.0x 7.7x Daimler 32,769 45,813 0.24x 0.22x 2.3x 2.1x 7.1x 6.3x Ferragamo 3,608 3,481 2.50x 2.24x 12.5x 10.5x 24.9x 18.6x Fiat Auto 22,402 5,546 0.22x 0.21x 2.6x 2.3x 6.7x 4.7x Fiat Industrial 18,345 13,289 0.57x 0.54x 6.3x 5.6x 16.6x 12.5x Ford 45,557 41,607 0.35x 0.33x 4.0x 3.5x 7.2x 6.1x Fuji Heavy Industries 7,217 5,926 0.31x 0.30x 4.0x 3.6x 8.7x 7.6x General Motors 25,116 36,481 0.16x 0.15x 1.9x 1.6x 6.1x 4.6x Herms 31,924 33,199 7.81x 7.10x 22.8x 20.1x 40.8x 36.0x Hino Motors 7,180 3,897 0.38x 0.36x 5.7x 4.9x 10.0x 8.4x Honda 51,799 58,280 0.40x 0.38x 3.6x 3.2x 8.7x 7.5x Hyundai 39,521 58,781 0.55x 0.51x 4.2x 3.9x 8.2x 7.5x Isuzu Motors 10,438 8,780 0.49x 0.45x 4.7x 4.2x 8.3x 7.6x KTM 789 575 1.23x 1.12x 9.7x 8.5x 29.2x 21.0x Luxottica 18,349 15,760 2.09x 1.94x 11.0x 9.9x 21.1x 18.2x LVMH 81,982 75,058 2.38x 2.19x 9.3x 8.4x 16.2x 14.6x MAN 14,790 14,574 0.73x 0.67x 8.0x 6.6x 15.9x 12.4x Mazda 7,608 3,797 0.27x 0.26x 6.4x 4.9x 28.2x 9.2x Mitsubishi 11,093 5,415 0.44x 0.40x 6.2x 5.3x 12.8x 8.9x Navistar 3,889 2,110 0.27x 0.25x 4.8x 3.3x N/M 6.6x Nissan 40,427 42,124 0.31x 0.29x 2.6x 2.3x 8.0x 6.6x Paccar 11,401 14,122 0.65x 0.61x 5.4x 4.8x 11.3x 10.0x Pandora 1,500 1,373 1.40x 1.27x 5.9x 5.0x 7.1x 6.0x Peugeot 6,163 3,196 0.08x 0.08x 2.1x 1.6x N/M 6.4x Piaggio 1,494 912 0.75x 0.69x 5.5x 4.7x 14.1x 10.8x Polaris 4,852 5,079 1.59x 1.42x 9.8x 8.2x 17.7x 15.0x Porsche 4,389 15,485 N/A N/A N/M N/M 4.2x 3.5x Prada 16,825 16,854 4.25x 3.60x 13.8x 11.3x 23.5x 19.2x Richemont 27,045 31,066 2.20x 2.00x 8.4x 7.5x 13.4x 11.7x Scania 11,995 13,145 1.01x 0.92x 6.8x 5.6x 12.6x 10.1x Sinotruk 2,515 1,555 0.44x 0.41x 5.5x 4.9x 9.5x 8.3x Suzuki 6,088 11,521 0.18x 0.17x 1.9x 1.7x 11.6x 10.5x Swatch 16,630 19,317 2.10x 1.93x 7.6x 6.8x 13.6x 12.1x Tiffany 7,371 6,879 1.87x 1.71x 7.5x 6.7x 13.5x 11.8x Tod s 2,861 2,993 2.38x 2.19x 9.1x 8.2x 16.5x 14.7x Toyota 99,018 120,510 0.36x 0.34x 3.9x 3.4x 11.0x 8.8x Volkswagen 58,506 70,075 0.26x 0.25x 2.5x 2.2x 5.2x 4.8x Volvo AB 26,508 22,312 0.58x 0.54x 5.2x 4.6x 9.7x 8.0x Yamaha Motor 6,195 3,363 0.37x 0.34x 5.9x 4.7x 11.8x 7.9x

Mean 1.14x 1.03x 6.4x 5.6x 13.3x 10.4x Median 0.56x 0.52x 5.6x 4.9x 11.5x 8.6x Note: Market data as of June 15, 2012 " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 5 Trading comparables (FinCo) Company Market cap ($mm) Price/BV Northgate 341 0.58x Nicholas Financial 153 1.26x White River Capital 70 0.83x Mean 0.89x Median 0.83x Note: Market data as of June 15, 2012 " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 6 4. Submission guidelines All participating teams need to submit their analysis in Microsoft PowerPoint fo rmat. All supporting calculations/analyses are also to be submitted, in an accompanying Mi crosoft Excel file. All submissions need to adhere to the following format: File type: MS PowerPoint presentation, MS Excel Page limit: 20 slides (excluding title slide, agenda pages and appendix) Font: Arial Filename: The Deal 2012_<Campus name>_<Team name> " T H E D E A L " C A S E S T U D Y C O N F I D E N T I A L 7 5. Additional information The following materials are attached: 1. Research notes on BMW (J.P. Morgan) May 09, 2012; Mar 15, 2012 2. European Auto & Auto Parts (J.P. Morgan) April 23, 2012