Slide 1: Advancing Our Strategy Through The Creation of Two Focused Public Companies
December 2022 Advancing Our Strategy Through The Creation of Two Focused Public Companies
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains 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,” “could,
Slide 3: Creating Two Leading, Focused Companies
Creating Two Leading, Focused Companies ▪ In March 2021, BorgWarner announced Charging Forward to plan for Accelerating Our the next decade-plus of profitable and sustainable growth by EV Strategy accelerating the company’s electrification strategy Building on Our ▪ We have been aggressively pursuin
Slide 4: Executing Toward Our Targets
Executing Toward Our Targets EV Organic Sales M&A Dispositions in 2025 by 2025 by 2025 Current ~$3.1B Booked Status Post Charging Forward $2.5B $2.0B $3.5B Intended Goals Separation $3.3B AKASOL, Santroll, $0.9B Rhombus & SSE(1) $0.2B Already exceeded target On track Plan in Place 4 *(1) SSE closing
Slide 5: BorgWarner and NewCo – At a Glance
BorgWarner and NewCo – At a Glance BorgWarner NewCo Leader in Fuel Systems Management Leader in Electrification with Focused ICE Business and Aftermarket Technology 2022E Revenue 2022E Revenue $12.3B $3.3B Air Management e-Propulsion & Drivetrain Aftermarket Fuel Systems 13.7% 6.9% 14.5% 11.3% 2022
Slide 6: Our Investments Have Resulted in a Wide-Ranging Electric Vehicle System Portfolio
Our Investments Have Resulted in a Wide-Ranging Electric Vehicle System Portfolio… 1 STATIONARY CHARGING 3 ENERGY STORAGE & MANAGEMENT Battery management DC system (BMS) 5 ELECTRIC PROPULSION Electric Reduction 2 THERMAL MANAGEMENT Inverter motor gear High-voltage DC fast coolant heater charger (HVC
Slide 7: With Leadership Across Product Categories that We Believe have Strong Growth Prospects
…With Leadership Across Product Categories that We Believe have Strong Growth Prospects Booked Inverter Volumes Booked eMotor Volumes (including in iDM) ~3.1M ~2M ~0.8M Hybrid ~2.3M Electric ~0.5M ~0.3M 2021 2025E 2021(1) 2025E Expect to be #1 Non-Captive Producer by 2025 Business Award Momentum Acr
Slide 8: Strong Foundation From Core Market-Leading Technologies Will Support EV Growth
Strong Foundation From Core Market-Leading Technologies Will Support EV Growth Continuity of Technologies and Capabilities Supporting customers with access to Supporting ICE EV critical technology as they execute Customers Air and Thermal Thermal Management their own transitions to EV Management Exa
Slide 9: Accelerating BorgWarner’s EV Strategy
Accelerating BorgWarner’s EV Strategy ▪ Intended separation would accelerate EV Charging Forward Targets (% Sales) achievement of our Charging Forward objectives ~45% ▪ Separation expected to enhance focus and flexibility to pursue attractive EV opportunities >25% ▪ Better positions BorgWarner to be
Slide 10: NewCo: Product Leader with Top-Quartile Margins and Solid Cash Generation
NewCo: Product Leader with Top-Quartile Margins and (1) Solid Cash Generation ▪ Technology-driven fuel systems, 1 starter/alternator & aftermarket $3.3 Billion (2) businesses with market-leading positions FY22E Sales ’22E Revenue by Market ’22E Revenue by Geography ▪ Top-quartile(1) margins and soli
Slide 11: NewCo: Propulsion Technologies for LV, CV & Aftermarket
NewCo: Propulsion Technologies for LV, CV & Aftermarket Engine Electronics & SW / Management Calibration Diagnostics, Training, & Technical support Gasoline Direct Starters & Injection Systems Alternators Maintenance Solutions Fuel Delivery Canisters Diesel Injection Alternative Modules Systems Fuel
Slide 12: Transaction Summary
Transaction Summary Structure ◼ Upon completion of the intended transaction, Process BorgWarner shareholders would receive shares of ◼ Expected to close in late Next Steps NewCo via a pro rata special 2023 distribution ◼ Finalize separation plans ◼ Subject to customary ◼ Expected to be tax free for