Slide 1: Q2 2023 Earnings
Q2 2023 EARNINGS August 7, 2023
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “could,” “designed,” “effect,” “estimates,” “evaluates,” “expects,” “forecas
Slide 3: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains information about PHINIA’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 most directly comparable GAAP
Slide 4: Day 1 Global Celebrations
DAY 1 GLOBAL CELEBRATIONS yey e Laka Cad
Slide 5: Vision for Long-Term Value Creation
VISION FOR LONG-TERM VALUE CREATION Product Stable Growth Financially Total Shareholder Leadership Strategy Disciplined Returns Value-based innovation Attractive, resilient end market Strong, high-quality margins Investment Competitive and product expansion and cash flow generation For Growth Capita
Slide 6: Second Quarter Financial Performance
SECOND QUARTER FINANCIAL PERFORMANCE Sales ($mm) Commentary $887 $796 YoY Sales Growth $336 $323 Fuel Systems growth driven by higher demand and customer recoveries $551 $473 Aftermarket growth driven by higher demand and increased pricing Q2 2022 Q2 2023 Volume accounted for ~8% year-over-year grow
Slide 7: Q2 2023 Sales
Q2 2023 SALES $30 $(3) $887 $64 $796 Pass-through includes retro recovery from the beginning of this year Q2 2022 Volume / Mix Pricing and Inflation FX Q2 2023 Pass-Through 7
Slide 8: Q2 2023 Adj. EBITDA
Q2 2023 Adj. EBITDA $30mm of Favorable recoveries/ Reduction in volume price, offset corporate partially by $(22)mm and other offset by mix of inflationary costs costs $mm $9 $130 $7 $8 $106 Adj. EBITDA 13.3% 14.7% Margin (1) Q2 2022 Volume / Mix Inflationary Costs, Net of Corporate Costs and Q2 202
Slide 9: Reiterating 2023 Full Year Outlook, Excluding CMA
REITERATING 2023 FULL YEAR OUTLOOK, EXCLUDING CMA No change to our outlook from Investor Day. Guidance now excludes temporary negligible margin Metric FY23 Guidance contract manufacturing Sales Adj. Sales(1) $3,450 - $3,550mm YoY Sales increase of ~2%, in addition to ~2 % of inflationary adjustments
Slide 10: Debt and Liquidity at Spin
DEBT AND LIQUIDITY AT SPIN Credit Agreement – 5-Year Maturity (3) $mm $500M Revolving Credit Facility SOFR + 250 b.p. 75 Term Loan A SOFR + 250 b.p. 300 Term Loan B SOFR + 400 b.p. 425 Secured Debt 800 Other Debt 24 Total Debt 824 Cash(2) ~(300) Net Debt 524 Total Debt / Adj. EBITDA(1) (TTM) 1.6x Co
Slide 11: Appendix
i —PHINIA APPENDIX
Slide 12: Historical Quarterly Financial Metrics
HISTORICAL QUARTERLY FINANCIAL METRICS $mm 2022 2023 Q1 Q2 Q3 Q4 FY Q1 Q2 Fuel Systems $538 $473 $534 $527 $2,072 $509 $551 Aftermarket 304 323 325 324 1,276 326 336 Sales $842 $796 $859 $851 $3,348 $835 $887 Fuel Systems 66 43 84 59 252 43 62 Margin % 12.3% 9.1% 15.7% 11.2% 12.2% 8.4% 11.3% Afterma
Slide 13: Adjusted EBITDA & Margin Reconciliation to US GAAP
ADJUSTED EBITDA & 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, merger, acquisition an
Slide 14: Adjusted Operating Income & Margin Reconciliation to US GAAP
ADJUSTED OPERATING INCOME & MARGIN RECONCILIATION TO US GAAP The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges, other net ex
Slide 15: Adjusted Sales Reconciliation to US GAAP
ADJUSTED SALES RECONCILIATION TO US GAAP The Company defines adjusted sales as sales adjusted to exclude certain agreements with BorgWarner that were entered into in connection with the Spin-Off. Full Year 2023 Guidance Low High Sales $3,495 $3,600 Post Spin-Off agreement adjustment 45 50 Adjusted s