Borgwarner Inc. · NYSE:BWA
Borgwarner — Q3 2016 Earnings Presentation
16 slides from Borgwarner's earnings presentation, Oct 27, 2016
Slide 1: Earnings Call Presentation Q3 2016
Earnings Call Presentation Q3 2016 October 27, 2016
Slide 2: CEO Commentary
CEO Commentary Macro and Industry Perspective General Comments Market Outlook Regulatory/Technology Trends BorgWarner Summary Third Quarter 2016 Financial Recap 2016 Outlook Growth Highlights © BorgWarner Inc. 2
Slide 3: Reconciliation to US GAAP
Reconciliation to US GAAP $ in millions, except per share data Non-US GAAP Non-US GAAP (Excluding non- (Excluding non- comparable comparable US GAAP Restructuring Contract Items, including Items, excluding (Reported) Asset Impairment Expense Expiration Gain M&A Expense Tax Adjustments M&A) M&A M&A)
Slide 4: BorgWarner Net Sales
BorgWarner Net Sales Q3 2015 to Q3 2016, $ in millions $215 $2,214 $115 $1,999 $1,884 Q3 2015 net sales Market growth, price and Q3 2016 net sales from Remy net sales Q3 2016 net sales net new business continuing operations * % change to net sales 6.1%* 11.4%* © BorgWarner Inc. 4
Slide 5: BorgWarner Operating Income
BorgWarner Operating Income* Q3 2015 to Q3 2016, $ in millions $7 $265 $8 $259 $250 7% incremental margin 13.3% 12.9% 12.0% margin margin margin Q3 2015 operating income* Market growth, price, net new Q3 2016 operating income Remy operating income** Q3 2016 operating income* business and performance
Slide 6: BorgWarner Diluted EPS
BorgWarner Diluted EPS* Q3 2015 to Q3 2016 $0.02 $0.78 $0.03 $0.01 $0.76 $0.73 Q3 2015 EPS* Market growth, price, net Share repurchases, net of Q3 2016 EPS from Remy EPS** Q3 2016 EPS* new business and incremental interest expense continuing operations performance and higher tax rate * Diluted EPS a
Slide 7: Engine Segment Net Sales
Engine Segment Net Sales Q3 2015 to Q3 2016, $ in millions $1,359 $1,309 $50 Q3 2015 net sales Market growth, price and net new business Q3 2016 net sales * % change to net sales 3.8%* © BorgWarner Inc. 7
Slide 8: Engine Segment Adjusted EBIT
Engine Segment Adjusted EBIT Q3 2015 to Q3 2016, $ in millions $6 $218 $212 12% incremental margin 16.2% margin 16.0% margin Q3 2015 adjusted EBIT Market growth, price, net new business and Q3 2016 adjusted EBIT performance © BorgWarner Inc. 8
Slide 9: Drivetrain Segment Net Sales
Drivetrain Segment Net Sales Q3 2015 to Q3 2016, $ in millions $215 $866 $67 $651 $584 Q3 2015 net sales Market growth, price and Q3 2016 net sales excluding Remy net sales Q3 2016 net sales including net new business Remy Remy * % change to net sales 11.4%* 36.8%* © BorgWarner Inc. 9
Slide 10: Drivetrain Segment Adjusted EBIT
Drivetrain Segment Adjusted EBIT Q3 2015 to Q3 2016, $ in millions $7 $87 $80 $70 $10 15% incremental margin 12.0% 12.4% 10.0% margin margin margin Q3 2015 net adjusted EBIT Market growth, price, net Q3 2016 adjusted EBIT Remy adjusted EBIT* Q3 2016 adjusted EBIT new business and excluding Remy incl
Slide 11: 2016 Sales Guidance
2016 Sales Guidance $ in millions $935 $9,139 $9,070 HIGH end of range $374 $(46) $8,204 LOW end of range $(56) $8,155 $915 $7,876 $335 2015 net sales Market growth, price FX 2016 net sales from Remy net sales 2016 net sales excluding Remy and net new business continuing operations HIGH end of range
Slide 12: 2016 Operating Income Guidance
2016 Operating Income Guidance* $ in millions $9 $(8) $37 $1,118 HIGH end of range LOW end of range $45 $1,081 $1,106 $7 $(9) $1,069 $37 $1,035 $37 13%-14% 13.1% incremental margin >13% >12% margin margin margin 2015 operating Market growth, Tailwinds from FX 2016 operating Remy operating 2016 opera
Slide 13: 2016 Diluted EPS Guidance
2016 Diluted EPS* Guidance $0.12 $3.28 HIGH end of range $0.14 $0.03 $(0.02) $3.17 LOW end of range $3.24 $0.02 $(0.03) $3.13 $0.11 $3.02 $0.11 2015 EPS excluding Market growth, price, net Tailwinds from FX 2016 EPS from Remy EPS** 2016 EPS* Remy* new business and restructurings and continuing opera
Slide 14: Q4 2016 Sales Guidance
Q4 2016 Sales Guidance $227 $2,327 HIGH end of range $99 $25 $2,100 $2,258 LOW end of range $15 $2,050 $207 $1,976 $59 Q4 2015 net sales Market growth, price FX Q4 2016 net sales from Remy net sales Q4 2016 net sales excluding Remy and net new business continuing operations HIGH end of range 5.0%* 1
Slide 15: Q4 2016 Diluted EPS Guidance
Q4 2016 Diluted EPS* Guidance $0.02 $0.86 $0.02 $0.84 HIGH end of range $0.05 $0.01 $0.01 $0.82 LOW end of range $0.80 $0.02 $- $0.01 $0.02 $0.75 $0.02 Q4 2015 EPS* Market growth, price, Tailwinds from FX Share repurchases, Q4 2016 EPS from Remy EPS** Q4 2016 EPS* excluding Remy net new business and
Slide 16: Thank you!
© BorgWarner Inc. Thank you! SISIS Combustion Hybrid Electric 16 BorgWarner