WELCOME WABCO INDIA LIMITED INVESTOR DAY 2017 MUMBAI Sept 14 2017 - - PowerPoint PPT Presentation

WABCO Confidential and Proprietary

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WABCO INDIA LIMITED

INVESTOR DAY 2017 MUMBAI

Sept 14 2017

WELCOME

WABCO Confidential and Proprietary

SAFE HARBOR STATEMENT

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Statements in this document describing the Company's objectives, projections, estimates and expectations may be "forward looking statements" within the meaning of applicable securities laws and regulations. Actual results could differ materially from those expressed or implied due to many factors. Important factors that could make a difference to the Company's operations include, among others, economic conditions affecting demand / supply and price conditions in the domestic and overseas markets in which the Company operates, changes in the Government regulations, tax laws and

• ther statutes and incidental factors. The Company does not undertake any obligation to update such forward-looking
• statements. All market and industry data are based on Company estimates.

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WABCO Confidential and Proprietary

SUSTAINING DIFFERENTIATION

WABCO continues to tap into a rich reservoir of organic growth, With proven success in driving technology leadership, and excellence in execution, On a clear path toward enabling commercial vehicle autonomy and connectivity Powered by the passion of a global team

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WABCO Confidential and Proprietary

ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY INNOVATOR

In 2016, WABCO had

$2.8B

Annual revenues

13,000

Employees in 40 countries

No.1

in all BRIC markets

319

Patents granted

2,500

Service Partners

2,400

Engineers worldwide

$403m

Performance EBIT (1)

(14.4% Margin)

All figures relate to 2016

55% 25% 10% 4%

SALES BY CUSTOMER TYPE

Aftermarket Off-Highway OE Truck & Bus Trailer Car 54% 14% 24% 3% 5%

SALES BY REGION

Europe North America

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during the last 5 years Technology industry firsts

10

Years NYSE listing

27

Factories

Asia Brazil Other

See appendix for footnotes 4

WABCO Confidential and Proprietary

ANTICIPATING THE EVOLUTION OF OUR INDUSTRY

Exponential Growth of New Technologies Increasingly Complex Customer Needs Regulatory Push for Greener Environment Population Growth, Urbanization & Smart infrastructure

Mega Trends

Off-Highway Application

Requirements Commercial Transportation

• f Commercial Vehicles

Impact on Commercial Vehicles Requirements

Segmentation

Urban / Suburban Transportation Long Haul Transportation

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WABCO Confidential and Proprietary

Mechanics Electromechanics Electronic Systems Digital Systems

INDUSTRY VISION TECHNOLOGY STRATEGY EVOLUTION

Fleet Management Systems V2V Telematic units Stability Control Braking System Platform MAXX™ Air Disc Brakes Transmission Automation c-comp™ Clutch Compressor Active Steering OnLane ProView OnGuard OnCity FuelGuard™ E-APU Hybrid EBS OptiTire™ Platooning OptiRide™

e-comp™ Electrically Driven Compressor

OptiFlow Evasive Maneuver Assist Lane Keep Assist Maneuvering Big Data Analytics OptiLock Multi Brand Diagnostic

CONSTANTLY INVADING NEW TECHNOLOGY SPACES

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WABCO Confidential and Proprietary

EXPANDING RESERVOIR FOR ORGANIC GROWTH

Applicable content per vehicle

~$300 ~$1000 ~$500

2014 Today Future

Advanced Technology Adoption Advanced Technology Adoption

* At constant FX

~$1000

Content per vehicle gap closure between regions fuels technology adoption

~$3200 ~$3000

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WABCO Confidential and Proprietary

SUSTAINING DIFFERENTIATION: TECHNOLOGY LEADERSHIP

Early anticipation, constant innovation and relentless re-design to cost power the adoption of WABCO technology

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WABCO Confidential and Proprietary

TECHNOLOGY TO ADVANCE VEHICLE EFFICIENCY

• Blending braking technology
• Electrically-sourced compressed air
• Scanning for additional opportunities

A vehicle equipped with all WABCO efficiency technologies can increase fuel economy up to 20%

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WABCO Confidential and Proprietary

CONNECTIVITY: MOBILIZING VEHICLE INTELLIGENCE

Platooning (V2V)

Provide a Broad Spectrum of Vehicle Systems Data Other Data Providers Big Data & Analytics

V2X

WABCO uniquely offers insights on truck, trailer and driver performance

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WABCO Confidential and Proprietary

WABCO TECHNOLOGY FOR ELECTRIFIED VEHICLES

FUEL Powered Trucks ELECTRIC Powered Trucks

FuelGuard™ E-APU Transmission Automation c-comp™ Clutch Compressor MAXX™ Air Disc Brakes EBS Brake Control Air Suspension ADAS & Electronic Controls Telematics ABS Brake Contol e-comp™ Electric Compressor

Air Generation Air Actuation Brake & Vehicle Control ADAS & Telematics

APU Transmission Automation MAXX™ Air Disc Brakes Air Suspension ADAS & Electronic Controls Telematics

Several million trailers in use today need air to be operated No AMT in electric trucks but electronic air suspension control Energy recuperation and brake blending requires electronic braking system More telematics required to operate electric fleets

E l e c t r i f i c a t i o n

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WABCO Confidential and Proprietary

1.7%

WABCO’S LEADING FLEET MANAGEMENT SOLUTIONS

China

~$400

India

~$100

30%  55% 20%  40% 5%  15%

JV with G7 Acquired AssetTrackr

*Source: Frost & Sullivan, MCV & HCV, Sept. 2016

3 year contract value*

DIFFERENTIATED FMS PRODUCTS

Premium solution

• large fleets

ACROSS DIFFERENT WITH A GROWING PENETRATION MARKETS

Europe

~$1800

Acquired Transics

FMS Penetration WABCO M&A 5 year*

Entry solution

• emerging markets

Standard solution

• small fleets

Trailer solutions

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WABCO Confidential and Proprietary

WABCO BLUE-PRINT FOR AUTONOMOUS DRIVING

Predictive control:

• Predicts traffic situation
• Learns behaviors
• Defines system reaction
• 100ms cycle

Reactive Control:

• Measures vehicle situation
• Safety critical
• 5ms cycle

360° sensing

CONNECT

Fail Safe Vehicle Architecure Braking system Active Steering Vehicle Sensors Stability Control AMT

360o sensing

Dynamic Motion Control

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WABCO Confidential and Proprietary

ACQUISITION OF STEERING TECHNOLOGY ENABLES FULL

The transaction is subject to customary U.S. regulatory clearance and it is expected to close by the end of the third quarter 2017

• Established in 1837
• $130m sales
• 900 employees
• North America facilities and JV

in China

• Main products
• Steering Gears
• Steering Columns
• Pumps
• Remanufactured Products

Establishing a gateway to more advanced levels of automation Globalize existing steering solutions Develop and introduce cost-efficient active steering solutions globally together with Nexteer Automotive Provide new functionalities toward Autonomous Driving CONTROL OF VEHICLE DYNAMICS

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WABCO Confidential and Proprietary

MANUFACTURING

SUSTAINING DIFFERENTIATION: GLOBALIZATION

• Globalized ahead of the curve
• #1 in all emerging markets
• Frugal mindset deployed globally
• A globally integrated supply chain
• India developed as a powerful second pillar
• f our global operations

BCC SHARE

ENGINEERING HEADCOUNT SOURCING

2016 BEST COST COUNTRY (BCC) RESOURCES SALES BY REGION 2007 2016

Europe Americas Asia

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WABCO Confidential and Proprietary

A DIFFERENTIATING GLOBAL ENGINEERING TEAM

WABCO Product Creation Process One global and connected team driving innovation --- frugally!

Powerful global development team blends and leverages broad expertise, extensive industry knowledge and frugal engineering principles Global Development Skilled application engineers in all key regions provide excellent customer connectivity and support

Global Development

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WABCO Confidential and Proprietary

A DIFFERENTIATING GLOBAL TEAM

Advanced Technology Best Cost Best Solution

Broad system and vehicle expertise Strength in technology and innovation Frugal engineering Rich software expertise

Advanced technologies at best cost

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WABCO Confidential and Proprietary

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WABCO INDIA

WABCO Confidential and Proprietary

WABCO INDIA THE GROWTH ENGINE

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Continue to leverage on regulation Sales to OEMs through advanced technology offerings, increased sales to non CV customers and smart digital solutions Increased sales to after market through new channels, new business models and new products India manufacturing and engineering excellence to boost export revenue of products and services Delivering operational results through productivity

WABCO Confidential and Proprietary

WABCO INDIA – NO. 1 SUPPLIER TO INDIAN MARKET

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2007 2005 2012 2011 2013 2008 2015

• 2009 WABCO takes majority control in the brakes

division of Sundaram Clayton Limited - WABCO TVS

• 2011 WABCO TVS became WABCO INDIA Limited

Market leader for five decades Sales of ₹ 2260.57 Crores in 2016 - 17 4434 employees (516 engineers) 5 manufacturing sites – fully aligned to customers’ needs

WABCO Confidential and Proprietary

INDIA LEGISLATION – STATUS AND FORECAST

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Legislation requires installation of Safety and Emission Control Systems

Type Status

(August 2017)

2016 2017 2018 2019 2020 2021 2022 2023

Emission / Efficiency BS IV BS VI Safety 100% ABS for TB&C, Trailer & 2 Wheeler Connectivity Others E Vehicles End of Life Scrapping Policy

red = in discussion

BS IV (Nation wide) ABS for M3 / N3 Trailer ABS ABS for M1 / M2 & 2 Wheeler ABS Speed Governor Agricultural Trailer Brakes Trailer Code AIS Bus Body Code Truck Code – AC / Cabin ventilation system ESC / Braking efficiency for M1/N1 Automated Manual Transmission BS VI (Nation wide) Intelligent Transport Solutions N1 / N2 ABS Regulation AEBS System End of Life Scrapping Policy E Vehicles / Hybrid Vehicles for T&B Vehicle location tracking FASTag Fuel Efficiency targets for M3 & N3 BS IV vehicles

WABCO Confidential and Proprietary

WABCO INDIA STRATEGY TO DRIVE TOPLINE GROWTH

Key strategies to sustain outperformance in the market

Increase Penetration of Advanced Technologies

AMT ADB ECAS ESC ADAS

Expand Product Portfolio Horizontally

Door Ctrl System Smart Suspension Trailer Axles Vehicle Harness Filter Solutions Hydraulic Brake System Off Highway & Defense

Offering Smart Digital Solutions

FMS ITS (Intelligent Transport Solutions) Value added services using FMS Data

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WABCO Confidential and Proprietary

DRIVING GROWTH THROUGH DIFFERENTIATING CREATIVITY IN AFTERMARKET

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• Expanding the service network through addition of new

Authorized Service Centers

• Capitalizing on retro fitment as a successful revenue

stream

• Developing unique solutions for Indian market

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Performance enhancement kits

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Fleet Management Solution

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Speed Governor

Speed Governor

WABCO SERVICE CENTER NETWORK – A TOUCH POINT AT EVERY 100KM

Fleet Management Solution

WABCO Confidential and Proprietary

SALES STRATEGY AFTERMARKET

Providing fleets with operational savings thru cost efficiency Fleet activities Key drivers

• Increase AM sales
• Diversify in FMS
• Create pull in OEMs

through retrofit @ fleets

• Requirements for “zero-

breakdown” in bus segment

• Ever increasing cost of
• peration driving fleets

for better operational efficiency

Key objectives Market dynamics

Fleets

ADB AMT WS Tools Video analytics Predictive Maintenance FC Kits

Zero break down; Preventive maintenance

Conv. Product FMS Retro- fit

ECAS ABS Operational management

Increased saving to fleets creates pull for OEMs to adopt in new vehicles Improved efficiency through FMS enabled products

• ADB
• ECAS
• AMT
• ADAS
• FMS
• FC kits

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WABCO Confidential and Proprietary

AM GROWTH EVOLUTION

AM Product Portfolio

Services Repair Kits PE Kits/ FC Kits ABS Retro Kits Advanced retro Products FMS products

01 02 03 04 05 06 07

Services revenue model : In Plan. Digital Products Trailer ABS, EBS, Air suspension with ECAS,Air Disc Brake ABS Retro kits to cater OMC trucks. Performance Enhancer/ Fitness Certificate Kits . Specific repair kits formation As per consumption Assemblies Child parts

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WABCO Confidential and Proprietary

WIN FMS ROAD MAP

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• Track n Trace
• Better view on fleet

utilization

• CAN & Non CAN based
• Integration with WABCO

systems (ABS, AMT, EBS, ECAS, TPMS)

• Camera and Video

integration

• Fuel and driver

management

• Load monitoring
• Video based Driver

behavior Monitoring Solution (Phase 01)

• Remote vehicle

diagnostics

• Intelligent Transport

System.

• Preventive vehicle

Maintenance

• Big data analytics
• Mobile based solutions
• Integration of Trailer ABS

and EBS

• Trailer management
• Ecommerce solution for

logistics

• Toll and Parking system
• Ambulance management
• ADAS support camera

based

• Advance Telematics

Solution

• Automatic Driver’s

training module

• Terrain based vehicle

speed control

• Electronic fencing for

mining

2020 (V2V) 2019 (Solution Provider) 2018 (Advance Level) 2017(Mid Stage) 2016 (Basic) 2017 (Advance)

WABCO Confidential and Proprietary

WABCO INDIA'S INCREASING CAPABILITY

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Supplier to domestic OEMs Local manufacturing of global product

Design and manufacturing of subsystem for global OEMs

Supplier of components for global needs Design and Manufacturing of global products

2006 2014 2008 2010 2012 2016

Centre of excellence for select products

Leverage powerful capabilities to deliver differentiation and value

WABCO Confidential and Proprietary

EXPORT EXCELLENCE

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WABCO Mahindra City Plant was awarded for Export Excellence by Government of India, Ministry of Commerce and Industry , based on the Export performance in Engineering Sector. The Companies in Export Processing Zone are awarded based on the performance in 3 categories ; Growth , Employment and Net Foreign Exchange Earning. Mahindra City plant stood 1st position in all the three category for the year 2014-15 and stood 1st position in Net Foreign Exchange Earning for 2015-16.

WABCO Confidential and Proprietary

WABCO INDIA BUSINESS PERFORMANCE

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• 2.0%
• 0.6%

20.1% 18.6% 31.5% 2012 2013 2014 2015 2016

2012 2013 2014 2015 2016 CUSTOMER Exports

OVERALL SALES IN M$

MARKET OUTPERFORMANCE

32 25 22 37 51 2012 2013 2014 2015 2016

OPERATING RESULT IN $M AND OPERATING MARGIN IN %

28 20 18 25 36 2012 2013 2014 2015 2016

CONTRIBUTION INCOME IN $M AND CONTRIBUTION MARGIN IN %

145 148 182 236 294 22% 17% 12% 16% 17%

23.6% 20.5% 14.8% 15.5% 17.1%

WABCO Confidential and Proprietary

1000 2000 3000 4000 5000 6000 7000 8000 18-Jun-09 18-Jun-10 18-Jun-11 18-Jun-12 18-Jun-13 18-Jun-14 18-Jun-15 18-Jun-16

SHARE PRICE TREND

Solid generation of shareholder value

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Source: National Stock Exchange

WABCO Confidential and Proprietary

WABCO INDIA OPERATIONS PERFORMANCE

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3 2 2 3 1 2012 2013 2014 2015 2016 74 51 26 14 13 2012 2013 2014 2015 2016

ZER0 KM PPM GROSS MATERIAL PRODUCTIVITY CONVERSION COST PRODUCTIVITY SAFETY PERFORMANCE

(LOST WORKDAY CASES) 5.52% 12.73% 7.13% 8.14% 8.11% 2012 2013 2014 2015 2016 12% 9.4% 10.1% 10.9% 11.6% 2012 2013 2014 2015 2016

WABCO Confidential and Proprietary

VALUE IN OE CUSTOMER PARTNERSHIP RECOGNIZED THROUGH AWARDS

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Cummins India “Best Supply Chain Transformation” award VECV’s award for “Outstanding contribution to Technology Innovation”

WABCO Confidential and Proprietary

AWARDS AND ACCOMPLISHMENTS

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Special recognition award in CII-IQ National Safety practice competition – May 2017 First Prize in ACMA Northern region Zonal quality circle competition – June 2017 First and Second Prizes for two teams in ACMA Southern region Business Quiz competition – June 2017 Second Prize in IMTMA National Productivity Championship competition – August 2017 First Prize in CII Kaizen competition – July 2017 4 Gold and 1Silver awards in QCFI QCC competition – Sep 2017

WABCO Confidential and Proprietary

DISCUSSIONS

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WABCO Confidential and Proprietary

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THANK YOU