BorgWarner Company Overview. Copyright © 2015 BorgWarner Inc. Our Vision, Mission and Beliefs ...

BorgWarner Company Overview

Copyright © 2015 BorgWarner Inc. 2

Our Vision, Mission and Beliefs

Vision A Clean, Energy-Efficient World

Mission Deliver Innovative Powertrain

Solutions that Improve Fuel Economy, Emissions & Performance

Our Beliefs Respect for Each Other Power of Collaboration Passion for Excellence Personal Integrity Responsibility to

Our Communities


BorgWarner at a Glance

2014 Sales: $8.3 Billion ($9B unconsolidated)

Employees: 22,000

Operations: 58 Locations

19 Countries

Products: Engine, Transmission and Driveline systems

Market Drivers: Fuel Economy, Emissions, Performance

Financial and Employee information as of December 31, 2014.

Locations as of February 12, 2015


The BorgWarner Strategic Difference

Product Leadership

Customer and Geographic Diversity

Financial Strength and Discipline


A Portfolio of Leading Powertrain Solutions

Engine 68%/SALESTurbo Systems Regulated 2-stage (R2S™) Variable Turbine Geometry

(VTG) Wastegate

Thermal Systems Thermal Management

Components and Systems Fans/Fan Drives Visctronic® Systems

Morse TEC Engine Valve Timing Systems

Timing Chain

HY-VO® Transmission Chain Transmission/Transfer

Case Chain

Variable Cam Timing Cam Torque Actuated Oil Pressure Actuated Torsional Assist

Transmission Systems DualTronic® Systems for Dual

Clutch Transmissions ECO-LaunchTM Stop/Start

Accumulator Solenoid Valves Solenoids & solenoid blocks Friction and Steel Plates One-way Clutches and

Modules

Thermal Systems

EmissionsSystems

TurboSystems

MorseTEC

TransmissionSystems

TorqTransferSystems

Emissions Systems Actuators Coolant Control Valves Diesel Cold Start

Glow Plugs Instant Start System Pressure Sensor Glow Plugs

Exhaust Gas Recirculation (EGR) Coolers & tubes Integrated Modules Valves

Gasoline Ignition Technology PTC Cabin Heaters Secondary Air Systems Sensor Technology Thermostats

Drivetrain 32%/SALESTorqTransfer Systems AWD Couplings AWD Electronic Controls

and Systems Integration eAWD Torque Vectoring eGearDrive® Electric

Drive Transmissions Transfer Cases


58 Locations in 19 Countries

Americas18 Locations

Europe19 Locations

Asia21 Locations

Drivetrain

Engine

Strategic Global Operations


Customer and Geographic Diversity

*NSK-Warner included** NSK-Warner excluded Europe

AsiaAmericas ~27%*

~30%*~43%*

29%**26%**45%**

VW/Audi 11%

Daimler 6%

Ford 4%

Renault 3%

BMW 3%

Fiat 2%

PSA 1%

GM 1%

Commercial 2%Vehicles

Other 11%

Hyundai/Kia 6%

Toyota 4%

Nissan 1%

Honda 1%

China 13%

Other 5%

Ford 8%

Chrysler 5%

GM 3%

Asian OEMs 2%

Commercial 4%Vehicles

Other 5%

2015 Sales Outlook*


Providing Value Across Markets

Truck

Efficient Gasoline

Clean Diesel

Stop-Start

Hybrid

Electric

Bus

Agricultural

Construction

Marine

Gensets

Locomotive

Light Vehicle

Medium & Heavy Duty 7%

Agricultural, Off-Highway & Other 6%

Aftermarket 4%

Light Vehicles 83%

Motorcycle and Powersports

2014 Actual Sales

http://ford.wieck.com/db/previewpage?061990&cf_user=ectric


Growth in Asia Leading to Geographic Balance

2015E 2019E

26%

29%

45% ~30%

~30%

~40%

EuropeAsiaAmericas


President and CEO Org Chart

Julie WattsSenior Executive Assistant

Scott GallettVice PresidentMarketing & Public Relations

John GasparovicVice PresidentGeneral Counsel & Secretary

Kim JenettVice President Human Resources

February 2015

Dan PaterraPresident & General Manager

Thermal Systems

Emissions Systems

Brady EricsonPresident & GeneralManager

Robin KendrickPresident & General Manager

Transmission Systems

Tom TanPresidentBorgWarner China

Ron HundzinskiVice President,Chief Financial Officer

Fred LissaldePresident & General Manager

Turbo Systems

Joe FadoolPresident & General Manager

Morse TEC

Chris ThomasVice PresidentChief Technology Officer

Dr. Stefan DemmerlePresident & General Manager

TorqTransfer Systems

James VerrierPresident and Chief Executive Officer


Product Leadership Recognition

BorgWarner is one of the most decorated companies in the history of the PACE Awards

2014

Eco-Launch™ Stop/Start Accumulator Solenoid Valve

INNOVATION PARTNERSHIP AWARD

Eco-Launch™ Stop/Start Accumulator Solenoid Valve

2013

New Regulated 3-Turbocharger System (R3S)


Regulated 3-Turbocharger System (R3S) with BMW

2012

Turbocharger for Internal Combustion Engines with Low Pressure EGR

2009

CTA Camshaft Phasing System

Pressure Sensor Glow Plugs (PSG)for Diesel Engines


Cam Torque Actuated (CTA) Cam Phaser with Ford Motor Company

2008

Turbocharger with R2S® Regulated Two-Stage Technology

ENVIRONMENTAL AWARD

Turbocharger with R2S® Regulated Two-Stage Technology

2007

Gasoline Turbocharger with Variable Turbine Geometry

INNOVATIVE OEM COLLABORATOR AWARD

Gasoline Turbocharger with Variable Turbine Geometry with Porsche AG

INNOVATIVE OEM COLLABORATOR AWARD

High Energy ITM 3e® AWD System with Porsche AG

2005

Dualtronic™ Dual Clutch, Direct Shift Gearbox (DSG)


Road to Innovation

1880s Forerunner of Morse Chain formed

1900Manual transmissions, differentials and automotive clutches developed, first BERU glow plugs

1940 First transfer cases produced

1950Automatic transmission and turbocharger production starts

1990sEngine timing systems, activeall-wheel drive systems introduced

2000Variable Turbine Geometry (VTG) turbochargers

2005Acquired BERU AG diesel cold start, gasoline ignition and electronics technology

2006Cool Logic® fan drive, ITM3e®

all-wheel drive coupling

2008Cam phasers with Cam Torque Actuated (CTA) technology and pressure sensor glow plugs, eGearDrive® Electric Drive Transmissions

2009Acquired advanced ignition technology (EcoFlash® ) from Etatech Inc.

2010Acquired Dytech ENSA EGR cooler, tube and integrated EGR module technology, Variable Camshaft Timing with Mid-Position Lock

2011Acquired Traction Systems division of Haldex Group for AWD products, Official turbocharger supplier for the IndyCar® Series

2012Turbocharger for internal combustionengines with low pressure EGR

2013Regulated 3 – turbocharger system (R3S), compact brushless actuator, Visctronic® high speed reservoir system

2014ECO-Launch™ stop/startaccumulator solenoid valve, acquired Wahler EGR Valve, Tube and Thermostat technology2003

DualTronic™ clutch and control moduletransmission technology

2004 Regulated Two-Stage (R2S®) turbochargers 2015Timing chains for GTDI engines, Gasoline EGR module, FWD electronic limited-slip differential (FXD)


Fuel Economy Drives Growth for BorgWarner

LV Transmissions

2015E 2020E2.0 3.79.4 13.0

32.432.8

6.410.8

LV Turbocharged Systems

2015E 2020E

19.3 22.1

15.628.5

DCT (11%)*

CVT (7%)*AMTs and EVTs (13%)*

Step ATs (1%)*

Manual Transmissions

(3%)*Diesel(13%)* Gasoline

Non-Turbocharged

LV EGR Systems

2015E 2020E

17.6 21.23.6

15.9

LV VCT Systems

2015E 2020E

53.572.4Diesel (4%)*

Gasoline (35%)*Non-EGR

(6%)* VCT SystemsNon-VCT

89.6103.8

89.6103.8

89.6103.8

Fuel Economy

Global light vehicle industry volumes; units in millions (January 2015)* CAGRs are shown in parentheses


Thank You

Fuel Economy Emissions Performance

BorgWarner Company Overview. Copyright © 2015 BorgWarner Inc. Our Vision, Mission and Beliefs ...

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