BWA 14 1Q FastForwardSlides (PDF)

Fast Forward

March 2014

The BorgWarner Strategic Difference


Technology Leadership

Customer and Geographic Diversity

Financial Strength and Discipline
2

A Portfolio of Industry Leading Powertrain Technology
Engine

67% / SALES

Drivetrain

33% / SALES

Turbo Systems

Morse TEC

Transmission Systems

TorqTransfer Systems

• Wastegate

• Engine Valve Timing Systems

• AWD Couplings

• Variable Turbine Geometry
(VTG)
• Regulated 2-stage
(R2S™)
• Actuators

-Timing Chain
• Variable Cam Timing
-Oil Pressure Actuated
-Torsional Assist
- Cam Torque Actuated
• HY-VO® Transmission Chain
-Transmission/Transfer
case chain

• DualTronic® Systems for Dual
Clutch Transmissions
• ECO-LaunchTM Stop/Start
Accumulator Solenoid Valves

Thermal Systems
• Thermal Management
Components and Systems
• Visctronic® Systems

• eGearDrive® Electric
Drive Transmissions
• One-way Clutches and Modules • eAWD Torque Vectoring
• Friction and Steel Plates
• AWD Electronic Controls
and Systems Integration

Morse TEC
Thermal
Systems

• Fans/Fan Drives

• Exhaust Gas Recirculation
(EGR) Valves
• EGR Coolers & EGR tubes
• Integrated EGR Modules
• Secondary Air Systems
• Thermostats

Transmission
Systems
TorqTransfer
Systems

Emissions Systems
• Glow Plugs
• Instant Start System
• Pressure Sensor Glow Plugs
• Gasoline Ignition Technology
• Sensor Technology
• PTC Cabin Heaters

• Transfer Cases

Turbo
Systems
BERU
Systems
Emissions
Systems
3

Miles per Gallon Equivalent (CAFE/Local Test Cycle)

Fuel Economy Standards are Tightening
65.0

E.U. Enacted

60.0
Japan Enacted

55.0
China Proposed

50.0
U.S. Enacted

45.0
40.0

China Enacted

35.0
30.0
25.0
20.0
2005

2010

2015

2020

2025

Year
4
Source: International Council on Clean Transportation, August 2013

Consumers Are Focused on Fuel Economy
Survey of U.S. Consumers: What is the leading consideration
when shopping for a car?
37%

17%

Fuel Economy

Quality

16%

Safety

14%

Value

5
*Source: Consumer Reports, 2012

The Road to Better Fuel Economy
Transmissions

Turbochargers

Fuel Economy

up to 15%*

up to 30%*

EGR Systems

VCT

up to 5%*

up to 5%*
6
* Improvement in fuel economy

Fuel Economy Drives Growth for BorgWarner
LV Transmissions

LV Turbocharged Systems
103.2

103.2
86.6

86.6

Manual Transmissions
9.4
4.6
31.1

30.1
1.0

9.7

1.0

2014E

Non-Turbocharged

DCT (15%)*
Step ATs (1%)*
CVT (8%)*
AMTs and Other (0%)*

21.5

(13%)* Gasoline
(4%)*Diesel

13.9
2019E

11.6
17.8

21.5

2014E

2019E

LV VCT Systems

LV EGR Systems

103.2

103.2
Fuel Economy
86.6

86.6

Non-EGR

Non-VCT
(6%)* VCT Systems

9.6
2.8
16.6

21.3

2014E

2019E

Gasoline (28%)*
Diesel (5%)*

64.4
47.4

2014E

2019E

Global light vehicle industry volumes; units in millions (January 2014)
*CAGRs are shown in parentheses

7

Improved Emissions Drives Growth for BorgWarner
CV Turbocharged Systems
10.4

Non-Turbocharged

8.7

Turbocharged (7%)*

CV EGR Systems

7.9

10.4

5.7

8.7

Non-EGR
2014E

2019E

CV Thermal Systems
4.5

10.4

Improved Emissions

8.7

EGR (19%)*

1.9
2014E

2019E

NonElectronicallyControlled
2.8

1.3
2014E

ElectronicallyControlled (17%)*

2019E

8
Global commercial vehicle industry volumes (excludes aftermarket); units in millions (January 2014)
*CAGRs are shown in parentheses

Attractive Business Model, Difficult to Replicate
New Entrant

New Entrant

New Entrant

New Entrant
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