Slide 1: Q3 2024 Earnings
Q3 2024 EARNINGS October 31, 2024
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation This press release contains forward-looking statements within the meaning of the 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 ce
Slide 3: Our Vision and Strategic Pillars
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: Third Quarter 2024 Highlights
Third Quarter 2024 Highlights Quarter Highlights $ 838M $ 120M 14.3% 13.2% • Continued strength in Aftermarket offsetting CV softness Adjusted Sales Adjusted EBITDA Adjusted EBITDA Total segment adjusted • Second bond margin operating margin issuance improved debt position • Increased share repurcha
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 Q3 include: New Business Conquest Business Conquest Business To Supply To Supply To Supply Electronically–controlled, low Light vehicle GDi pump to a GD
Slide 6: Aftermarket Segment Wins
Aftermarket Segment Wins Contract New Business New Business Extension Win Win Win Renewed our agreement with Signed a first-time agreement Signed a new agreement with one of our largest global with a major customer group in a North American customer to independent aftermarket Europe, opening new exp
Slide 7: Disciplined Capital Allocation
Disciplined Capital Allocation Expect >$200M Adjusted Free Cash Flow(1) per Year Average Through End of Decade Strong Foundation - Competitive Capital Investment for Balance Sheet Return (2) Growth • Strong balance sheet • Expect to maintain competitive dividend • Disciplined, ROIC-focused reinvestm
Slide 8: Expected Consistent Performance Through The Decade
Expected Consistent Performance Through The Decade Appropriate Strong Margins Leverage Target 2-4% 14-15% >90% ~1.5x (1) Average Organic Adj. EBITDA Adj. Cash Flow Net Leverage Revenue CAGR Margin(2) Conversion(3) Global Scale Highly Cash with Growth Generative (1) Does not include Contract Manufact
Slide 9: Third Quarter Financial Performance
Third Quarter Financial Performance Adjusted Sales (1) ($mm) Commentary $870 $838 YoY Adjusted Sales Growth $335 $355 Aftermarket growth primarily driven by price and higher aftermarket volumes in Europe $535 $483 Fuel Systems performance driven by lower commercial vehicle sales in Europe and China
Slide 10: Q3 2024 Adjusted Sales
Q3 2024 Adjusted Sales (1) $870 $(51) $18 $1 $838 $M Driven by lower commercial vehicle Pricing and sales in Europe and inflationary pass- China, partially through in North offset by higher America and Europe aftermarket volumes in Europe Q3 2023 Volume / Mix Inflationary & Supply Cost, Net of FX Q3
Slide 11: Q3 2024 Adjusted EBITDA
(1) Q3 2024 Adjusted EBITDA $19 $(8) $117 $(8) $120 $M Driven by lower $18mm of price and commercial vehicle recoveries, $11mm $(2)mm R&D sales in Europe and of supplier savings & increase, $(5)mm China, partially offset recoveries offset by increased stand- by European $(10)mm of alone corporate co
Slide 12: Revised Full Year 2024 Outlook
Revised Full Year 2024 Outlook Metric FY 2024 Outlook* Prior Outlook Adj. Sales(1) $3,340 – $3,390M $3,400 – $3,550M Adj. EBITDA(1) $470 – $490M $470 – $510M Q2 2024 Earnings Deck_Working Draft.pptx Adj. EBITDA Margin(1) 14.1% – 14.5% 13.8% – 14.4% Adj. Free Cash Flow(1)(2) $160 – $200M $160 – $200M
Slide 13: Appendix
—>PHINIA APPENDIX
Slide 14: Historical Quarterly Financial Metrics
Historical Quarterly Financial Metrics (1) 2023 2024 Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Fuel Systems $ 509 $ 551 $ 535 $ 532 $ 2,127 $ 510 $ 513 $ 483 Aftermarket 326 336 335 326 1,323 336 350 355 Adjusted Sales $ 835 $ 887 $ 870 $ 858 $ 3 ,4 5 0 $ 846 $ 863 $ 838 Fuel Systems 43 62 55 55 215 55 52 55 Margin %
Slide 15: 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 16: 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 17: Adjusted Sales and Adjusted Free Cash Flow 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 m illio ns Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Fuel Systems net sales $ 509 $ 551 $ 561 $ 556 $ 2
Slide 18: 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 19: Adjusted Net Earnings per Diluted Share Reconciliation to US GAAP
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