Slide 1: Q3 2023 Earnings
Q3 2023 EARNINGS November 6, 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: 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 4: Hydrogen Progress
HYDROGEN PROGRESS Industry News PHINIA Activity U.S. DOE: $7 billion funding to support regional clean Technical Papers and Industry hydrogen hubs and accelerate production, deployment and Engagement cost reduction of low carbon hydrogen. Participation in inaugural Saudi Arabia building a $5 billion
Slide 5: Third Quarter Highlights
THIRD QUARTER HIGHLIGHTS Successfully Adjusted net Consolidated diluted EPS Total segment Adjusted completed first Strong free adjusted EBITDA of $117 quarter as $0.53 operating million. cash flow of independent per share margin of Adjusted $118m company EBITDA margin 11.6% of 13.4% Rapid progress o
Slide 6: Third Quarter 2023 Financial Performance
THIRD QUARTER 2023 FINANCIAL PERFORMANCE Adjusted Sales (1) ($mm) Commentary YoY Adjusted Sales Growth Aftermarket growth primarily driven by foreign currencies due to the strengthening of the British Pound and Euro relative to the US Dollar, partially offset by the weaker Chinese Renminbi relative
Slide 7: Q3 2023 Adjusted Sales
Q3 2023 ADJUSTED SALES (1) Reduction in CV sales in China Strengthening of $mm partially offset by GBP and EUR growth in North offset by America GDi weakening CNY products (1) Non-GAAP metric. See Appendix p. 14 for definition and reconciliation to the most directly comparable GAAP measure. 7
Slide 8: Q3 2023 Adjusted EBITDA
Q3 2023 ADJUSTED EBITDA (1) $mm Reduction in $18mm of Primarily CV sales recoveries/ increase in offset by price, offset by SG&A expense growth in GDi $32mm including products of inflationary corporate costs Adj. EBITDA (1) (1) Margin (1) (1) Non-GAAP metric. See Appendix p. 12 for definition and re
Slide 9: Revised FY 2023 Outlook
REVISED FY 2023 OUTLOOK Revised FY23 Metric Previous FY23 Guidance Guidance Adj. Sales(1) $3,400 - $3,450mm $3,450 - $3,550mm Adj. EBITDA(1)(2) $465 - $475mm $485 - $505mm Adj. EBITDA 13.6 – 13.9% 13.8 - 14.3% Margin(1)(2) Capex $140 - 160mm $140 - 160mm Tax Rate 34% 27% (1) Non-GAAP metric. See App
Slide 10: Appendix
—PHINIA APPENDIX
Slide 11: Historical Quarterly Financial Metrics
HISTORICAL QUARTERLY FINANCIAL METRICS 2022 2023 $mm Q1 Q2 Q3 Q4 FY Q1 Q2 Q3 Fuel Systems $538 $473 $534 $527 $2,072 $509 $551 $535 Aftermarket 304 323 325 324 1,276 326 336 335 Adjusted Sales (1) $842 $796 $859 $851 $3,348 $835 $887 $870 Fuel Systems 66 43 84 59 252 43 62 55 Margin % 12.3% 9.1% 15.
Slide 12: Adjusted EBITDA and Margin Reconciliation to US GAAP
Adjusted EBITDA and Margin 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, merger, acquisition and divestiture expense, impairment charges, other net expenses, and ot
Slide 13: 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, merger, acquisition and divestiture expense, intangible asset amortization expense, impairment charges, other net
Slide 14: Adjusted Sales and 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. Free Cash Flow Reconciliation to US GAAP The Company defines free cash flow as net cash provided by
Slide 15: 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 impact of restructuring expense, merger, acquisition and divestiture expense, impairment charges, other net expenses, and ot