Slide 1: Q1 2022 Earnings Call Presentation
May 4, 2022 Q1 2022 — Earnings Call Presentation
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “cou
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains information about BorgWarner’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial mea
Slide 4: Agenda
Agenda Fred Lissalde Chief Executive Officer Kevin Nowlan Chief Financial Officer Q&A 4
Slide 5: Managing Near-term Headwinds While Securing Our Future
Managing Near-term Headwinds While Securing Our Future ▪ Strong relative revenue Net Sales Adj. EPS* Free Cash Flow* performance vs. industry Organic Sales* volume declines Increase of ~1% ▪ Margin performance impacted 11.6% 10.0% Adj. Op Margin* Adj. Op Margin* by commodity and other cost $147 infl
Slide 6: Awards for First Battery Management System & Second Dual Inverter
Awards for First Battery Management System & Second Dual Inverter Battery Management System (BMS) Dual Inverter + DC/DC Converter + Boost Module ▪ Award with a leading global vehicle manufacturer ▪ Award with a leading Chinese OEM expected to expected to launch in 2023 launch in 2023 ▪ Equips all B-
Slide 7: eMotor Business Expected to Grow
eMotor Business Expected to Grow Estimated Booked eMotor Volumes including iDMs 800V eMotor ▪ Award with a leading EV brand in China expected to launch in 2023 ~2.0M ▪ Used in the company’s second generation 800V propulsion system platform ▪ Features premium reliability, higher efficiency, ~0.8M pow
Slide 8: Santroll Builds Strength in Light Vehicle eMotors
Santroll Builds Strength in Light Vehicle eMotors Santroll Sales Outlook Illustrative Sample of Pursuit Opportunities $ in millions Booked / Customers Products >$300 Unbooked A eMotor Booked* B eMotor Unbooked $60 to $70 C eMotor Unbooked Q2-Q4 2022E 2025E D eMotor Booked* ▪ 2022 Adj. Operating Inco
Slide 9: BorgWarner Q1 2022 Net Sales Walk
BorgWarner Q1 2022 Net Sales Walk $ in millions ▪ Global vehicle markets down ~7% year over year Q1 2021 net sales $4,009 ▪ Organic sales* increased ~1%, with Disposition impact** $52 positive relative performance in Europe and North America Q1 2021 pro forma net sales* $3,957 ▪ Europe – Benefit of
Slide 10: BorgWarner Financial Results & Adj. Operating Income
BorgWarner Financial Results & Adj. Operating Income $ in millions Q1 2021 adj. operating (in millions, except per share income* $464 Three months ended amounts) GAAP & Non-GAAP March 31, Financial Information 2021 2022 Disposition impact** $(5) Sales $4,009 $3,874 Q1 2021 pro forma adj. operating i
Slide 11: 2022 Market Expectations Have Moderated
2022 Market Expectations Have Moderated LV Units in millions BorgWarner Global North America Europe China Market FY’21 FY’22 Actual Est. FY’21 FY’22 FY’21 FY’22 FY’21 FY’22 78.3 to 80.9 Actual Est. Actual Est. Actual Est. 77.2 24.6 23.3 to 24.2 16.5 to 16.9 14.5 to 14.8 15.9 13.0 Assumes lost volume
Slide 12: 2022 Expected Outlook and Considerations
2022 Expected Outlook and Considerations $ in millions Full-year Net Sales Outlook Market & Earnings Outlook Considerations 2021 net sales $14,838 Prior Guidance 2022 Outlook Disposition Global light pro forma impact** $(177) 78.4M to 81.6M 78.3M to 80.9M vehicle production 10.9% Pro forma 2021 pro
Slide 13: Thank You
May 4, 2022 Q1 2022 Earnings Call Presentation — THANK YOU
Slide 14: Appendix
AP |> E N D [IX x BorgWarner
Slide 15: 2022 Planning Assumptions
2022 Planning Assumptions ▪ CapEx $800 to $850 million ▪ Adjusted tax rate for ongoing operations ~28% 15
Slide 16: BorgWarner Global Production Outlook (2022 vs. 2021)
BorgWarner Global Production Outlook (2022 vs. 2021) Actual & Estimated Production Totals (in Millions of Units) North America Europe China Total 2021 2022 2021 2022 2021 2022 2021 2022 Light Vehicle 13.0 14.5 to 14.8 15.9 16.5 to 16.9 24.6 23.3 to 24.2 77.2 78.3 to 80.9 Commercial Vehicle 0.6 ~0.6
Slide 17: First Quarter Reconciliation to US GAAP
First Quarter Reconciliation to US GAAP Adjusted Operating Income and Operating Margin In 2021 and prior, the Company defined adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discon
Slide 18: First Quarter Reconciliation to US GAAP
First Quarter Reconciliation to US GAAP Adjusted Earnings Per Diluted Share The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued o
Slide 19: First Quarter Organic Net Sales Change
First Quarter Organic Net Sales Change Organic Net Sales Change BorgWarner net sales change year over year excluding the estimated impact of foreign exchange (FX) and net M&A. 19
Slide 20: FY'22 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation
FY’22 Adj. Operating Income and Adj. Operating Margin Guidance Reconciliation to US GAAP 20
Slide 21: FY'22 Adj. Earnings per Diluted Share Guidance Reconciliation
FY’22 Adj. Earnings per Diluted Share Guidance Reconciliation to US GAAP 21
Slide 22: Q1'22, Q1'21 and FY'22 Free Cash Flow Reconciliation
Q1’22, Q1’21 and FY’22 Free Cash Flow Reconciliation to US GAAP The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, including tooling outlays. The measure is useful to both management and investors in evaluating the Company’s ability to service
Slide 23: Key Definitions
Key Definitions The terms below are commonly used by management and investors in assessing ongoing financial performance: Organic Net Sales Change. BorgWarner net sales change year over year excluding the estimated impact of foreign exchange (FX) and net MD&A. Market. Light and commercial vehicle pr