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WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW CORPORATE PRESENTATION 2018 1

CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

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Page 1: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

CORPORATE PRESENTATION 2018

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Page 2: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

ABOUT WABCO

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Page 3: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY INNOVATOR In 2017:

$3.3B Annual revenues

~15,000 Employees in 40 countries

No.1 in all BRIC markets

383 Patents granted

2,900 Service Partners

2,600 Engineers worldwide

$465m Performance EBIT (14.1% Margin)

57% 24%

9%

4% 6% SALES BY CUSTOMER TYPE

OE Truck & Bus AftermarketTrailer Off-HighwayCar

52% 18%

26%

3% 1% SALES BY REGION

Europe North America Asia S.America Other

15 during the last 5 years

Industry technology firsts introduced

10 NYSE listing

Years 27 Factories

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

A STRONG AND RELIABLE PARTNER • Nearly 150 years heritage

• Listed on the NYSE; spun off from American Standard in2007

• Highly respected on Wall Street for consistent performance… growth based on innovation leadership and adherence todifferentiating strategies globally

• Strong balance sheet and cash position for investment tosupport customers’ global needs

• Returned $1.9 billion in cash to shareowners since 2007 viashare buy-back program

0

25

50

75

100

125

150

2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

WBC STOCK EVOLUTION ~$143.5

$48

Ranked WABCO among “the best of the best” companies; listed as “America’s Best-Managed Capital Goods Company”

WABCO and its CEO, Jacques Esculier, recognized by the investment community in the 2018 All-America Executive Team

survey for the sixth consecutive year

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Page 5: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

A RICH PORTFOLIO OF TECHNOLOGIES X%

EBS & ESC Air Brake Valves

ABS

BRAKING CONTROL

AS PERCENTAGE OF WABCO 2017 SALES

35%

Air Processing

Air Management Systems

19%

Compressors

Suspension Control

6% Car Products

6%

Wheel End

12%

Digital Services

3%

Transmission Automation

12%

Steering Control

1% Electronic Controls & Monitoring Systems

6%

5

Page 6: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

OUR VALUE CREATION PROPOSITION We apply advanced technology and services to support commercial vehicle OEM and fleet needs

GLOBAL CAPABILITIES • Global platforms• Connected R&D network• Frugal engineering• Localization• Integrated supply chain

SAFETY • Braking systems• Active steering• Stability control• Collision mitigation systems• Accident prevention• Autonomous driving

CONNECTIVITY • Advanced systems integration• Fleet Management Systems• Remote diagnostics• V2X communications

• Big data

EFFICIENCY • Fuel efficiency• Aerodynamics• Emissions reduction• Weight reduction• Maintenance costs• Vehicle and driver performance

monitoring

OEMs

Fleets

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

A BROAD MARKET FOCUS GLOBALLY

Ashok Leyland, CNHTC, Cummins, Daewoo, DAIMLER, Dongfeng, FAW, Fiat, Foton, GAZ, HINO Motors, Hyundai, Isuzu, KAMAZ, Kinglong, MAN, PACCAR, SCANIA, TATA Motors, Volvo, Yutong, ZF among others.

TRUCK & BUS

CIMC, Faccini, Guerra, GREAT DANE, Kögel KRONE, SCHMITZ Cargobull, Tirsan, Tonar WABASH, Weilton among others.

TRAILER

AGCO, BEML, Caterpillar, Claas, CNH , Hitachi, Hyundai CE, John Deere, Komatsu, Liebherr, Liugong, SANY, Tandano, Volvo CE, XCMG, ZOOMLION among others.

OFF-HIGHWAY

AUDI, BMW, Changan, FCA, General Motors, Mercedes –Benz, Porsche, SAIC, TESLA, Volvo, VW among others.

CAR

Supporting distributors, workshops and fleets over vehicle lifetime thanks to: • Global distribution & service

network• Comprehensive aftermarket

portfolio• Fleet Management

Solutions• Digital Services• WABCO Academy

FLEETS

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

WABCO’S SUCCESS IS ROOTED IN OUR CULTURE Sustaining differentiation throughout a highly diversified, passionately engaged and continuously learning global team

CHANNELLED THROUGH WELL ANCHORED CORE STRATEGIES

• ANTICIPATION: Reading economic and industrydynamics ahead of the curve

• CREATIVITY: First to market with new technologies

• EXCELLENCE: Leveraging early globalization and anindustry-leading Lean Operating System

POWERED BY PASSION

Continuously applying innovation across ourcustomers’ value chain and vehicle life cycle

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Page 9: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

SUSTAINING DIFFERENTIATION THROUGH TECHNOLOGY LEADERSHIP

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Page 10: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

THE INDUSTRY’S LEADING INNOVATOR IN OUR SECTOR

2009 to

2010

2011 to

2014

2015 to

2017

2004 to

2008

1996 to

2003

1980’s to

1995

Anti-Lock Braking System (ABS)

Traction Control System

Pneumatic Transmission Automation System

Electronically Controlled Air Suspension (ECAS)

RSSplusTM Roll Mitigation System

OnGuardTM Collision Mitigation System

Hydraulic Transmission Automation System

d-compTM Dual Stage Compressor

New Generation Air Disc Brake

Air System Protector

Trailer EBS-E

c-compTM Clutch Compressor

Trailer OptiLoadTM

ESCsmartTM Simulation System

Trailer OptiTurnTM

OnLaneTM - Lane Departure Warning System

MAXXUSTM Air Disc Brake

OptiFlowTM SideWings

EBS for Hybrid Drivelines

New Generation Automated Manual Transmission

Improved Integrated Vehicle Tire Monitoring (IVTM TM)

Modular EBS

mBSP TM Modular Braking Platform

EC-APU Air System Protector

MAXX22TTM Air Disc Brake

OptiPaceTM

OnGuardACTIVETM

Electronic Stability Control (ESC) for Hydraulic Braking

Trailer EBS

Electronic Braking System (EBS)

Roll Stability Support (RSS) for Trailers

Integrated Vehicle Tire Monitoring (IVTM TM)

ECAS for automotive

Electronic Stability Control (ESC)

Adaptive Cruise Control

OnGuardMAXTM

Autonomous Emergency Braking System

h-compTM High Output Compressor

OptiDriveTM Transmission Automation System

Trailer Telematics

Air Disc Brake MAXXTM22

Trailer Remote Control

TrailerGUARDTM Telematics

OnGuardPLUSTM Advanced Emergency Braking System

TailGUARDTM Rear Blind Spot Detection

e-compTM Electrically Driven Compressor

FuelGuardTM Electronic Air Processing Unit

OnCityTM

OnGuardMaxTM

OnHandTM

WABCO Communications Unit

OptiFlowTM AutoTail

OnLaneASSIST™

OnSide

OptiLock

OptiLink

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Evasive Maneuver Assist

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

ANTICIPATING THE EVOLUTION OF OUR INDUSTRY

Exponential Growth of New Technologies

Increasingly Complex

Customer Needs

Regulatory Push for Greener

Environment

Population Growth, Urbanization &

Smart infrastructure

Mega Trends

Urban / Suburban Transportation

Long Haul Transportation

Off-Highway Application

Commercial Transportation Requirements

Segmentation of Commercial Vehicles

Impact on Commercial Vehicles Requirements

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

WABCO BLUEPRINT FOR AUTONOMOUS DRIVING

Predictive control: - Predicts traffic situation - Learns behaviors - Defines system reaction - 100ms cycle

Reactive Control: - Measures vehicle situation - Safety critical - 5ms cycle

360° SENSING

CONNECT

Fail Safe Vehicle Architecture

Dynamic Motion Control

Braking system

Vehicle Sensors

Stability Control

AMT

Active Steering

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

TECHNOLOGY TO ADVANCE VEHICLE SAFETY AND AUTONOMOUS DRIVING

Stop’n’Go Assist Platooning

Collision Avoidance Collision Mitigation

Active Steering

Blin

d Sp

ot

Mon

itorin

g

Driver Behavior Monitoring

Active Braking Electronic Stability Control

Vulnerable Road User Protection

mBSP™ MAXX™ AMT

SYSTEMS INTEGRATION

We have a solid roadmap identified towards a vision for zero accidents and automated vehicles

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

TECHNOLOGY TO ADVANCE VEHICLE EFFICIENCY

A vehicle equipped with all WABCO efficiency technologies can increase fuel economy up to 20%

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

DRIVING VEHICLE EFFICIENCY & SUSTAINABILITY

Trailer Aerodynamics

Electronically Controlled Air

Suspension Automated

Manual Transmission

Hybrid EBS Clutch Compressor Air Processing

Unit

Lightweight Air Disc Brakes

High Output Compressor with

Alu-Crankcase

Fuel Efficiency

Weight Reduction

Energy Recuperation

Electric Vehicles

Electronic -APU

Electrically Driven Compressor or compressed air

replacement

Electro Mechanical

Brake

EBS Brake Control

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Page 16: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

CONNECTIVITY: MOBILIZING VEHICLE INTELLIGENCE WABCO uniquely offers insights on truck, trailer and driver performance

Platooning (V2V)

Provide a Broad Spectrum of Vehicle Systems Data

Other Data Providers

Big Data & Analytics

V2X

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Page 17: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

DELIVERING FLEET CRITICAL DATA AND ACTIONABLE INFORMATION TO ONE SINGLE PLATFORM

WABCO ITP

Cost management & efficiency

Compliance

ECO

Satisfaction

Supply chain visibility

€ The image part with relationship ID rId19 was not found in the file.

Safety & security

Maintenance & repair

WABCO Service network

WABCO Academy

REMOTE DOOR LOCK

REMOTE TRAILER DIAGNOSTICS REMOTE

TRUCK DIAGNOSTICS

OPTITIRE EBS BRAKE WEAR

CARGO

TX-TRAILERGUARD TX-SKY

TX-FLEX

TX-CONNECT

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Page 18: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

SUSTAINING DIFFERENTIATION THROUGH GLOBALIZATION

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Page 19: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

DIFFERENTIATION THROUGH GLOBALIZATION

INDIA Chennai Mahindra World City Jamshedpur Lucknow Pantnagar Pune

THAILAND Rayong

SOUTH KOREA Pyungtaek

CHINA Jinan Qingdao Taishan Shanghai

UNITED KINGDOM Leeds

GERMANY Gronau Hannover Mannheim

JAPAN Tokyo

RUSSIA Moscow POLAND

Wroclaw Stanowice

BELGIUM Brussels Ieper

MEXICO Empalme, Sonora San Luis Potosi

BRAZIL Campinas S.P.

UNITED STATES OF AMERICA Rochester Hills, MI Troy, MI North Charleston, SC Hebron, KY North Mankato, MN Hanover, PA Wytheville, VA

Global Headquarters

Global network of development, manufacturing and distribution operations

CANADA Oakville, ON

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Page 20: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

GLOBALIZATION: A PILLAR OF WABCO’S DIFFERERENTIATION

• Uniquely able to supply truck, busand trailer technologies across theglobe

• All regions managed by well- established local teams

• Optimized cost structureleverages mature, fully integratedglobal engineering and supplychain presence in all markets

• Differentiating aftermarket servicenetwork and products

of WABCO’s engineers located in best-cost countries55%

of WABCO’s workforce is located in emerging markets67%

manufacturing sites around the globe: benchmarks for lean manufacturing standards

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in all BRIC markets

Resources, connectivity and capabilities to

cost-efficiently support

growth strategies in every market

WABCO’s service and technical support

115 2900 4500

Countries Service Partners Distributors

21

In 2017, WABCO won 25 major awards from

customers 25 10

nationalities in WABCO's senior executive team

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

Skilled Application Engineers in all key regions provide excellent customer connectivity and support Broad System &

Vehicle Expertise

THE DNA OF OUR INNOVATION LEADERSHIP A Globally Integrated Product Development Team

Frugal Engineering Expertise - able to create pull for new technologies and mature products in increasingly price sensitive markets

- Delivers Advanced Technologies at Best Cost

Best Solution

Advanced Development

Frugal Engineering

Rich Software Expertise

Strength in Technology & Innovation

Advanced Development Organization seeds innovation, leads technology screening and concept validation for rapid protoyping

* As of December 2017

>30%

>380 Patents granted*

Increase in R&D investment

>900 Products released*

100% Increase in number of engineers

During the last decade:

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On an annual basis:

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WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

SUSTAINING DIFFERENTIATION THROUGH EXCELLENCE IN EXECUTION

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Page 23: CORPORATE PRESENTATION 2018hiras.parts/wp-content/uploads/2018/08/WABCO-2018.pdfWABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY

WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

EXCELLENCE IN EXECUTION

WABCO Operating System (WOS) The WOS defines WABCO’s unique culture and powers us to sustain differentiation in quality,

performance and service to customers

• Built on a backbone of Six Sigma Lean o Rigorous management environment across global operations o Standardized processes embedded within advanced quality management systems

• Efficient and agile organization of resources in every region • Drives continuous productivity within the design – build – deliver value chain • Learning culture and individual empowerment to continuously advance quality • Passion to drive excellence in execution as a differentiator for customers

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WABCO Confidential and Proprietary 2018 CORPORATE OVERVIEW

ABOUT WABCO AFTERMARKET

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

WABCO AFTERMARKET: CREATING THE HIGHEST BRAND LOYALTY

>27,000 Diagnostics subscribers Leading penetration

KNOW WABCO

2,900 Service partners Industry benchmark

REACH WABCO

4,500 Distributors Worldwide availability

14 Distribution centers worldwide Best Customer Proximity

GET WABCO

>170,000 Trained mechanics Largest trained community

TRUST

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WABCO Confidential and Proprietary 2018 CORPORATE PRESENTATION FINAL

THE INDUSTRY’S MOST COMPREHENSIVE AFTERMARKET PORTFOLIO

Delivering differentiated products for every vehicle in every market

Competitive at OE quality

ORIGINAL REPAIR KITS PROVIA REMAN

OE choice premium brand

Trusted original budget

parts

Enabling quality repairs

RETROFIT SOLUTIONS

WORKSHOP SOLUTIONS

Improving fleet safety & efficiency

Delivering smart productivity tools

Continuously expanding our segment

Distributors Workshops

Fleets

OES Drivers

Anchored to the fleet eco-system

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WABCO Confidential and Proprietary 28

THANK YOU

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