Slide 1: Q4 2024 Earnings
Q4 2024 EARNINGS February 13, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation This press release contains forward-looking statements within the meaning of U.S. federal securities laws. Forward-looking statements are statements other than historical fact that provide current expectations or forecasts of future events based on certai
Slide 3: Vision for Long-Term Value Creation
VisionOUR For Long-term STRATEGICValue Creation PILLARS Product Stable Growth Financially Total Shareholder Leadership Strategy Disciplined Returns Technology expert and Pursue attractive Sustainable, high-quality Disciplined investment partner of choice for growth opportunities margin and cash flow
Slide 4: Fourth Quarter 2024 Highlights
Fourth Quarter 2024 Highlights Quarter Highlights $ 833M $ 110M 13.2% 12.8% • Continued strength in Aftermarket offsetting CV and LV softness Adjusted Sales Adjusted EBITDA Adjusted EBITDA Total segment adjusted • Second product win in margin operating margin aerospace and defense sector Strong Bala
Slide 5: Business Wins
Business Wins PHINIA is winning new business and retaining existing business across LV and CV / Industrial markets and all regions. Notable wins in Q4 include: New Business Contract Extension Program Extension To Supply To Supply To Supply Second product win in the aerospace Key contract extension w
Slide 6: Aftermarket Segment Wins
Aftermarket Segment Wins Contract Contract Contract Contract Continued Range Extension Win Extension Extension Win Win Extension Win Development Expanded our share of Signed a multi-year Developed new In 2024, 3,640 new SKUs wallet with subsidiaries of a contract to supply distributors to were added
Slide 7: Diversified Global Footprint
Diversified Global Footprint Diversified Business with Expansion Opportunity Lean Organization with Well-Invested Footprint Diverse and resilient end-market with unique cycles / dynamics Existing global infrastructure across 20 countries supports execution plans Strong demand for fuel systems perfor
Slide 8: Accomplishments and Objectives
Accomplishments and Objectives 2024 Accomplishments • Launched key new technologies • Strong Financial Performance • Smooth transition - exited all CMAs and o H2 Injector for ICE o Fuel Systems Adj. operating margin of TSAs o 500 Bar GDi System 10.9% • $256M returned to shareholders via o Value-base
Slide 9: Disciplined Capital Allocation
Disciplined Capital Allocation Expect >$200M Adjusted Free Cash Flow(1) per Year Average Through End of Decade Strong Foundation - Competitive Capital Investment for Balance Sheet Return(2) Growth • Strong balance sheet • Expect to maintain competitive dividend • Disciplined, ROIC-focused reinvestme
Slide 10: Expected Consistent Performance Through The Decade
Expected Consistent Performance Through The Decade Appropriate Strong Margins Leverage Target (1) 2-4% 14-15% >90% ~1.5x Average Organic Adj. EBITDA Adj. Cash Flow Net Leverage Revenue CAGR Margin(2) Conversion(3) Global Scale Highly Cash with Growth Generative (1) Does not include Contract Manufact
Slide 11: Fourth Quarter Financial Performance
Fourth Quarter Financial Performance Adjusted Sales (1) ($mm) Commentary $858 $833 YoY Adjusted Sales $326 $342 Aftermarket growth primarily driven by higher volumes in Asia Pacific, North America and Europe $532 $491 Fuel Systems decline driven by lower commercial vehicle sales in Europe and China
Slide 12: Q4 2024 Adjusted Sales
Q4 2024 Adjusted Sales (1) $858 $(25) $2 $(2) $833 $M Driven by lower commercial vehicle sales in Europe and Pricing changes China partially offset primarily in the by growth in the Fuel Americas Systems Americas and all regions in Aftermarket Q4 2023 Volume / Mix Inflationary & Supply Cost, Net of
Slide 13: Q4 2024 Adjusted EBITDA
Q4 2024 Adjusted EBITDA (1) $127 $(10) $8 $(15) $M $110 $2mm of price and Driven by lower recoveries, $17mm $(2)mm R&D commercial vehicle of supplier savings & increase, $(10)mm sales in Europe and recoveries offset by increased stand- China partially offset $(11)mm of alone corporate costs by growt
Slide 14: Full Year Financial Performance
Full Year Financial Performance Adjusted Sales (1) ($mm) Commentary $3,450 $3,380 YoY Adjusted Sales $1,323 $1,383 Aftermarket growth primarily driven by price and higher volumes in Europe $2,127 Fuel Systems decline due to lower commercial vehicle sales in Europe and $1,997 lower sales in China Q4
Slide 15: Full Year 2024 Adjusted Sales
(1) Full Year 2024 Adjusted Sales $3,450 $(104) $35 $(1) $3,380 $M Driven by lower commercial vehicle Pricing and sales in Europe and inflationary pass- lower sales in China, through in North partially offset by America and Europe higher aftermarket volumes in Europe 2023 Volume / Mix Inflationary &
Slide 16: Full Year 2024 Adjusted EBITDA
(1) Full Year 2024 Adjusted EBITDA $43 $(29) $490 $(26) $478 $M $35mm of price and Driven by lower recoveries, $56mm commercial vehicle $(4)mm R&D of supplier savings & sales in Europe and increase, $(28)mm recoveries offset by lower sales in China, increased stand- $(27)mm in COS partially offset b
Slide 17: 2025 Industry Volume Assumptions vs. 2024
2025 Industry Volume Assumptions vs. 2024 North America Europe Asia Pacific LV down low-single digits % LV down low-single digits % LV flat to up low-single % CV up low to mid-single digits % CV up low-single digits % CV up mid-single digits % CV demand heavily weighted to Fairly Stable Market China
Slide 18: Full Year 2025 Outlook
Full Year 2025 Outlook Metric FY 2025 Outlook* Net Sales $3,230 – $3,430M Adj. EBITDA(1) $450 – $490M Adj. EBITDA Margin(1) 13.7% – 14.5% Adj. Free Cash Flow(1)(2) $160 – $200M Adj. Tax Rate(3) 38% – 42% (1) Non-GAAP metric. See Appendix for definitions and reconciliations to the most directly compa
Slide 19: Appendix
—>PHINIA APPENDIX
Slide 20: Historical Quarterly Financial Metrics
Historical Quarterly Financial Metrics (1) 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Fuel Systems $ 509 $ 551 $ 535 $ 532 $ 2,127 $ 510 $ 513 $ 483 $ 491 $ 1,997 Aftermarket 326 336 335 326 1,323 336 350 355 342 1,383 Adjusted Sales $ 835 $ 887 $ 870 $ 858 $ 3,450 $ 846 $ 863 $ 838 $ 833 $ 3,380 Fuel
Slide 21: Adjusted EBITDA and Margin Reconciliation to US GAAP
Adjusted EBITDA and Margin Reconciliation to US GAAP The Company defines adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) as net earnings less interest, taxes, depreciation and amortization, adjusted to exclude the impact of restructuring expense, separation and trans
Slide 22: Adjusted Operating Income and Margin Reconciliation to US GAAP
Adjusted Operating Income and Margin Reconciliation to US GAAP The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, separation and transaction expense, intangible asset amortization expense, impairment charges, other net expenses,
Slide 23: Adjusted Sales Reconciliation to US GAAP
Adjusted Sales Reconciliation to US GAAP The Company defines adjusted sales as net sales adjusted to exclude certain agreements with BorgWarner that were entered into in connection with the spin-off. 2023 2024 $ in millions Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Q4 FY Fuel Systems net sales $ 509 $ 551 $ 561 $ 556
Slide 24: Adjusted Net Earnings Reconciliation to US GAAP
Adjusted Net Earnings Reconciliation to US GAAP The Company defines adjusted net earnings as net earnings adjusted to exclude the tax-effected impact of restructuring expense, separation and transaction expense, intangible asset amortization, impairment charges, other net expenses, and other gains,
Slide 25: Adjusted Net Earnings per Diluted Share Reconciliation
Adjusted Net Earnings per Diluted Share Reconciliation to US GAAP The Company defines adjusted net earnings per diluted share as net earnings per share adjusted to exclude the tax-effected impact of restructuring expense, separation and transaction expense, intangible asset amortization, impairment