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WABCO CORPORATE OVERVIEW
FIRST QUARTER 2009
© 2009 WABCO Holdings Inc. All rights reserved.
FIRST QUARTER 2009 2
FORWARD LOOKING STATEMENTS
Comments in this document contain certain forward-looking statements, which are based on management’s good faith expectations and beliefs concerning future developments. Actual results may differ materially from these expectations as a result of many factors. These factors include, but are not limited to, the risks and uncertainties described in the “Risk Factors” section and the “Forward Looking Statements” section of WABCO’s Form 10-K, as well as in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Information Concerning Forward Looking Statements” section of WABCO’s Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such forward-looking statements. All market and industry data are based on Company estimates.
This presentation contains certain non-GAAP financial measures as that term is defined by the SEC. EBIT and sales excluding the effects of foreign exchange are non-GAAP financial measures. Additionally, operating income, EBIT, EBIT margin, net income and net income per diluted share on a "performance basis" are non-GAAP financial measures that exclude separation and streamlining costs, one-time and discrete tax items as well as a one-time transitional impact from a new accounting standard (SFAS No. 141R) that WABCO will adopt in 2009, as applicable. Lastly, "free cash flow" presents our net cash provided by operating activities less net cash used in investing activities. These measures should be considered in addition to, not as a substitute for, GAAP measures. Management believes that presenting these non-GAAP measures is useful to shareholders because it enhances their understanding of how management assesses the operating performance of the Company's business. Certain non-GAAP measures may be used, in part, to determine incentive compensation for current employees. Reconciliations of the non-GAAP financial measures to the most comparable GAAP measures are available in WABCO’s quarterly results presentations posted on the company’s website.
FIRST QUARTER 2009 3
Sales of $2.6 BILLION in 2008, 7% growth
GLOBAL TECHNOLOGY LEADER in commercial vehicle industry
Over 7,200 EMPLOYEES in 31 countries; 1,000 ENGINEERS
16 MANUFACTURING LOCATIONS in 10 countries
Listed on NYSE with the stock symbol WBC
ABOUT WABCO
FIRST QUARTER 2009 4
MARKET FOCUS
Products, systems, servicesand support for vehiclemanufacturers andaftermarket customers
TRUCK
CNHTC
DAIMLER
FREIGHTLINER
HINO
MAN
PACCAR
SCANIA
VOLVO
among others
CIMC
GREAT DANETRAILERS
KÖGEL
KRONE
SCHMITZCARGOBULL
WABASH
among others
TRAILER
AUDI
BMW
DAIMLER
GENERALMOTORS
PSAPEUGEOTCITROEN
SSANGYOUNG
among others
CAR
BUS
EVOBUS
MAN
NISSAN
YUTONG
among others
AFTERMARKET
Supportingfleet and truckowners over
vehiclelifetime
Distributors
Workshops
Fleets
FIRST QUARTER 2009 5
MANUFACTURING LOCATIONS
FIRST QUARTER 2009 6
1981 1986 1996 1998 2000 2001 2003 2004 2006 2007 2008
TECHNOLOGY AND INNOVATIONLEADER
PneumaticTransmissionAutomation
System
ElectronicallyControlled AirSuspension
(ECAS)
Two StageCompressor
Trailer EBS - E
IntegratedVehicle TireMonitoring
Roll StabilitySupport for
trailers
TractionControlSystem
Anti-LockBrakingSystem
ElectronicStabilityControl
AdaptiveCruise Control
ECASfor automotive
Trailer Electronic Braking System
New GenerationAir Disc Brake
Air SystemProtector
HydraulicTransmissionAutomation
System
OnGuard™CollisionMitigationSystem
RSSplus™Roll Stability
SupportTrailer System
>Trailer Telematics
OptiDrive™Transmission
Automation System
OnGuardMaxTM
Autonomous Emergency Braking
System
High OutputCompressor
ElectronicBrakingSystem
FIRST QUARTER 2009 7
COMMERCIAL VEHICLE AIR CYCLE
Generates and
pressurizes the air to be
used in the braking
system and other
air-based applications
Dries, cleans, stores
and distributes the
compressed air to enable
proper system operation
under all conditions
MECHANICALService brakes, Parking brakes
Actuators
Foundation brakes
ELECTRONIC/ELECTRO-MECHANICALAnti-lock Braking Systems
Electronic Braking Systems
Transmission Automation
Electronic Suspension Control
AIRMANAGEMENT
AIRCOMPRESSION
AIRAPPLICATION
FIRST QUARTER 2009 8
Others 7%
% 2008 Sales
PRODUCT PORTFOLIO
Air Compressors 11%
Air Processing 8%
Conventional Brake Controls 12%
Actuators 9%
Foundation Brakes 6%
Suspension Control 7%
Anti-Lock Braking Systems 12%
Car Products 4%
Transmission Automation,Clutch Control 13%
Electronic Braking and StabilityControl Systems 11%
FIRST QUARTER 2009 9
TRUCK AND TRAILER PRODUCTS
TRUCKElectronic Control UnitsAdaptive Cruise ControlEBS Proportional Relay ValvePedal Unit with EBS Brake Signal TransmitterABS Modulator ValveAutomatic Temperature ControlElectronically Controlled Air SuspensionShock AbsorberFront Air Disc BrakeSteering Angle SensorTransmission AutomationClutch ControlRetarder ControlAir CompressorRear Air Disc Brake(Electronic-) Air Processing Unit ReservoirEBS Trailer Control ValveElectronic Stability Control ModuleEBS Axle Modulator
TRUCK AND TRAILERBrake ChamberTristop® CylinderAir BellowIntegrated Vehicle Tire Monitoring ECUIVTM Wheel ModuleDouble Diaphragm Spring Brake
TRAILERTrailer Central ElectronicSmartBoardTrailer Electronic Braking SystemElectronically Controlled Air SuspensionTrailer Air Disc Brake
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
EBS: Electronic Braking System
ABS: Anti-Lock Braking System
ECU: Electronic Control Unit
FIRST QUARTER 2009 10
BUS PRODUCTS
EBS Brake Signal TransmitterEBS Proportional Relay ValveABS Solenoid Modular ValveElectronic Stability Control UnitEBS Backup ValveEBS Axle ModulatorAdaptive Cruise Control ModuleHand Brake ValveIVTM DisplayIVTM Wheel ModuleIVTM Electronic Control UnitAutomatic Traction Control Water ValveATC Operating ConsoleATC SubstationElectronic Control Units EBS, CVCECAS Electronic Control Unit ECAS Solenoid valveECAS Level SensorAir Disc BrakeBrake ChamberTristop Cylinder(Electronic) Air Processing UnitCompressorMTS SensorMTS Door CylinderMTS Electronic Control UnitMTS Door Valve
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
EBS: Electronic Braking System
ABS: Anti-Lock Braking System
CVC: Central Vehicle Controller
IVTM: Integrated Vehicle Tire Monitoring
ECAS: Electronically Controlled Air Suspension
MTS: Door Control for Bus
21
22
23
24
25
26
27
1
234
56
7
8
9
10
11
12
1314
15
16
17
18
19
20
21
22
23
24
25
2627
FIRST QUARTER 2009 11
CAR PRODUCTS
Air BellowElectronic Control Unit for ECAS & ESACVacuum PumpAir Supply UnitHeight SensorAir ReservoirSolenoid Valve Block
1
2
3
4
5
6
7
1
2
3
4
56
7
ECAS: Electronically Controlled Air Suspension
ESAC: Electronic Shock Absorber Control
FIRST QUARTER 2009 12
AFTERMARKET CAPABILITIES
Servicecenters
WABCOUniversity
Services,customersupport
Extensiverange of
products andsystems
Universalcustomer
hotline
Regionalcustomer
teams
Customerpartnerprogram
Globaldistributornetwork
Sales,promotion
andmarketing
SUPPORTING FLEETAND TRUCK OWNERS
OVER VEHICLELIFETIME
FIRST QUARTER 2009 13
CUSTOMER DYNAMICS
TRUCK AND BUS MANUFACTURERSLARGE VOLUMES, LONG CYCLES 30+ Customers
TRAILER MANUFACTURERSSMALL VOLUMES, SHORT CYCLES 2,000+ Customers
AFTERMARKETSMALL VOLUMES, SHORT CYCLES 3,000+ Customers
CAR MANUFACTURERSVERY LARGE VOLUMES, LONG CYCLES ~10 Customers
� Few, large, consolidating, globalizing� Use technology to meet regulation, comfort,
safety and economics� Need for global suppliers and development
partners with system expertise
� Very many, small, local or regional� Closely follow truck and bus technology� Dependent on suppliers for product and
technical support, services and knowledge
� Small, many, local/regional; dependent on suppliers for product, services and knowledge
� Multiple step distribution: distributors, repair shops, and fleet operators
� 2 channels: independent aftermarket and original equipment supply
� Few, large, global, sophisticated� Many competitive suppliers for most
technologies� Very high expectations for quality, program
management and supplier support
FIRST QUARTER 2009 14
GLOBAL TRUCK & BUS PRODUCTION
0
100
200
300
400
500
600
700
800
900
'00 '01 '02 '03 '04 '05 '06 '07 '08
WESTERN & EASTERN EUROPEWESTERN & EASTERN EUROPE NORTH AMERICANORTH AMERICA
CHINA & INDIACHINA & INDIAJAPAN & KOREAJAPAN & KOREA
(1,000 units; over 6 tonnes Gross Vehicle Weight)
0
100
200
300
400
500
600
700
'00 '01 '02 '03 '04 '05 '06 '07 '08
0
200
400
600
800
1000
1200
'00 '01 '02 '03 '04 '05 '06 '07 '08
KoreaKorea
ChinaChina
IndiaIndia
Western Western EuropeEurope
Eastern Eastern EuropeEurope
0
50
100
150
200
250
300
350
'00 '01 '02 '03 '04 '05 '06 '07 '08
JapanJapan
FIRST QUARTER 2009 15
TRUCK & BUS REGIONAL ATTRIBUTES
SOUTH AMERICA <$1,500 $65K
JAPAN & KOREA <$1,000 $80K
CHINA <$300 $30K
NORTH AMERICA <$1,000 $80K
WESTERN EUROPE >$3,000 $130K
EASTERN EUROPE <$500 $70K
Typical heavy truckprice in market
Estimated applicable content per vehicle$ $K
� Less advanced technology vs.Western Europe� Large OEMs: Daimler, Volvo, PACCAR, ITE � Large fleets, able to influence OEM design
� Less advanced technology – mostly from Brazil� Main OEMs: Daimler, VW, Volvo, Scania
� Advanced technology, high electronics penetration� 6 OEMs: Daimler, Volvo, MAN, Iveco,
PACCAR, Scania � Few large, pan European fleets
� Fast growing production� Improving quality and safety� Global and local OEMs: KamAZ, MAZ,
RusBus, Tatra, Roman
� Technology moving towards Western Europe� Main OEMs: Hyundai, Hino, Isuzu, ND� Targeting global market
� Basic technology; advanced technology penetration under 10% of total market
� 3 large OEMs: FAW, DFM, CNHTC; many small
FIRST QUARTER 2009 16
COMPETITIVE OVERVIEW
KNORR HALDEX LCC COMPETITORS� Technical capabilities similar
to WABCO� No position in transmission
automation or cars� Strong position in North America
following BENDIX acquisition� Trailing in emerging markets
� Challenger position� Lower electronics capabilities
compared to WABCO and KNORR� Strong automatic slack
adjuster business� Entering into special products for
diesel engines
WABCO KNORR HALDEX LCC competitors(2008 Estimated Commercial Vehicle Sales) ($2.6B ) (~$2.9B ) (~$0.5B) (All Under ~$0.2B)
Anti-lock Braking Systems Electronic Braking SystemsConventional ProductsTransmission AutomationAir CompressorsAir ProcessingActuatorsSuspension ControlFoundation Brakes
Complete Offering Partial Offering Niche Offering
LCC COMPETITORS
� Strong low cost / low tech solutions� Mainly mechanical capabilities � Targeting specific markets
with specific product ranges� Low price strategy in Aftermarket
sources: KNORR-BREMSE website, HALDEX Annual Report 2008
FIRST QUARTER 2009 17
0
2
4
6
8
10
12
14
16
Global NorthAmerica
Europe Asia SouthAmerica
SALES BY REGION ANDCUSTOMER TYPE
2008 SALES BY REGION 2008 SALES BY CUSTOMER TYPE
Americas
Asia/Restof World
Europe
Car
Trailer
AftermarketTruck & Bus
SALES 5-YEAR CAGR*
* Compound annual growth rate in local currencies from 2003 to 2008
Per
cent
age
62%
4%
21%
13%76%
12%
12%
FIRST QUARTER 2009 18
POWER FOR GROWTH
ABOVE MARKET SALES GROWTH THROUGH 2013*
2013
CAGR4 - 6%
2008
Cars
AftermarketExpansion
OE Truck,Bus andTrailer
OE TRUCK, BUS AND TRAILERINCREASING VALUE PER VEHICLE� Air Disc Brakes� Transmission Automation Controls� Electronic Stability Control� Driver Assistance Systems
GLOBALIZATION� China� Eastern Europe / Russia� India
AFTERMARKET EXPANSION � Enhanced Penetration� New Product Ranges� New Services (e.g. Diagnostics, Training)� East Europe, North America and Asia
AUTOMOTIVE PENETRATION� Electronic Air Suspension� Vacuum Pumps
*Assumes commercial vehicle production flat at 2008 levels
FIRST QUARTER 2009 19
INNOVATION: AIR DISC BRAKES
SALES PROJECTIONSIndexed (2008 Sales = 100)
2008 2011 2013
CAGR23%
100
145
285
� New generation for heavy duty
trucks and buses
� Patented reinforced single-piston
technology delivers high
performance at lowest weight
� Increased reliability, longer brake
pad life, extended service intervals
NG22MAX
FIRST QUARTER 2009 20
� Mandatory in EU in 2011; North
America and Japan in 2012/13
� Includes yaw control to keep
vehicle on steered course and
avoid jack-knifing
� Roll Stability Support mitigates roll-
over situations for coaches, trucks
and trailers
INNOVATION:ELECTRONIC STABILITY CONTROL
SALES PROJECTIONSIndexed (2008 Sales = 100)
100
321
840
2008 2011 2013
CAGR 53%
FIRST QUARTER 2009 21
INNOVATION: TRANSMISSION AUTOMATION SYSTEMS
�Provides fuel savings, reduced
clutch wear, improved serviceability,
reduced driver training
�Developed modular version to meet
requirements of new customers in
emerging markets
�Standardized components provide
improved cost position and reduced
application engineering
SALES PROJECTIONSIndexed (2008 Sales = 100)
100
151
163
2008 2011 2013
CAGR 10%
New OptiDrive TM Transmission Automation system
FIRST QUARTER 2009 22
GLOBALIZATION: CHINA
SALES PROJECTIONSIndexed (2008 Sales = 100)
100
190
300
2008 2011 2013
CAGR 25%
� 2005 to 2008 sales grew at 70% CAGR
�CNHTC, China’s largest heavy duty truck
maker, equips its flagship series with
WABCO’s new modular AMT system
�Signed long term agreement with CNHTC
through 2016 including sole supplier of
transmission automation systems
�Created joint venture with Fuwa, world’s
largest maker of trailer axles, to produce
air disc brakes in China
FIRST QUARTER 2009 23
AFTERMARKET GROWTH STRATEGY
2008 20132002-2004 2004-2007
6%
10%
GROWTH DRIVERSCORE GROWTH� New product categories� Geographic expansion
NEW PRODUCTS AND SERVICES� New diagnostics products� New training services� New business arenas
REDEFINING OURADDRESSABLE MARKET
$50BTOTALAFTERMARKET� Tires� Air filters� Oil� Other consumables
$25BREPLACEMENT� Exhaust systems � Engine parts� Steering and suspension� Engine accessories� Drum brakes� Spares
SERVICES� Fleet support � Telematics� Preventative
maintenance� Diagnostics
$3BWABCO
REPLACEMENTAFTERMARKET
Expanded addressable marketChoose not to compete
Historical GrowthCAGR
Sales ProjectionsIndexed (2008 Sales = 100)
100
160
CAGR10%
REVENUE GROWTH
FIRST QUARTER 2009 24
POWER THROUGH EXECUTION
We are globalizing constantly: growing, leveraging and optimizing our network of
capabilities in manufacturing, sourcing and engineering
The WABCO Operating System is our roadmap andone of the most advanced
management environments in our industry
GLOBALIZATIONGLOBALIZATIONWABCO OPERATING WABCO OPERATING
SYSTEMSYSTEM
FIRST QUARTER 2009 25
WABCO OPERATING SYSTEM
�Increase VSM maturity across all facilities�Optimize supplier development structure�Support integration of WABCO-TVS
2008200820082008 2009200920092009
Accountability and alignment across the
value chain
Integrated supply chain supported by Lean
processes from suppliers to customers
Processes based on Design For Six Sigma driving
speed and reliability
Establish partnerships as competitive differentiator
Hoshin-like management system
in place
VisionVisionVisionVision
�Drive roll-out in Hanover and Campinas�Focus on Lean Expert Certification�Enhance Lean Logistics maturity�Broaden Lean supplier base
�Launch Lean in Hanover and Campinas�Initiate Kaizen program for other facilities�Launch Lean Expert program�Start Lean Logistics Deployment
�Extend Value Stream Mgmt to all facilities�Enhance People Development Processes�Expand global footprint for key support functions (IT, engineering)
�DFMA integrated in design to value process�Drive Design for Six Sigma (DFSS) with customers�DFSS for Engineering alignment projects
�Design for manufacturing and assembly (DFMA) applied to all key projects�Improve Scheduling & Planning�Increase focus on Gate Reviews
�Business Unit leverage to drive CP standardization�Collaboration focus with all major OE Key Accounts for deeper connectivity
�Deploy in all other major OE Key Accounts
�Enhance White Belt deployment globally�Drive RCCA rigor though Yellow Belt certification
�Implement White Belt training for target areas�Launch Yellow Belt Concept for Root Cause Corrective Action (RCCA)
Organizational
Development
6 Sigma Lean
Common Development
Process
Customer Partnership
Total Employee
Involvement
PillarPillarPillarPillar
FIRST QUARTER 2009 26
GLOBALIZATION:MANUFACTURING STRATEGY
� Supporting Local Markets from Local
Factories
� Leveraging Manufacturing Capabilities in
China and India to Lower Costs
� Focusing Western European Factories on
More Complex Technologies
� Starting to Move from High Cost Countries
to Best Cost Countries
� Accelerating 6 Sigma Lean Deployment in
all Facilities
Global Manufacturing StrategyGlobal Manufacturing Strategy Share of Workforce By:Share of Workforce By:
90%78%
61%54%
45% 42%
10%22%
39%46%
55% 58%
2000 2002 2004 2006 2008 2010F
High Cost Country Best Cost Country
FIRST QUARTER 2009 27
GLOBALIZATION:SOURCING STRATEGY
� Focusing Purchasing Strategy on 3 Main
Regional Clusters - Western Europe,
Central/Eastern Europe and Asia
� Consolidating Supply Base
� Driving Quality Improvement and 6 Sigma
Lean Implementation at Key Suppliers
� Leveraging Broad Internal and External
Capabilities in India and China
� Performing Continuous Supplier Risk
Management Analysis
90%78%
70% 65% 60%53%
10%22%
30% 35% 40%47%
2000 2002 2004 2006 2008 2010F
Global Sourcing Strategy Share of Sourcing By:High Cost Country Best Cost Country
FIRST QUARTER 2009 28
GLOBALIZATION:ENGINEERING STRATEGY
Global Engineering StrategyGlobal Engineering Strategy Engineering Workforce by:Engineering Workforce by:
2002 2004 2006 2008 2010F
High Cost Country Best Cost Country
ASIA
� Customize Products for the Region
� Software Development� Design and Calculation
Support
AMERICAS
� Connectivity to US and South American OEMs
� Regional Variant Development
� Application Development
WESTERN EUROPE
� Advanced products and Systems
� Connectivity to European OEM development
� Technology, Process, Data and Systems
CENTRAL EUROPE
� Conventional Products� Design Support� Standards, material and
Requalification Test Center
Growth in Resources(Indexed to 2002)
100
114121 123
130
96% 86% 83%73% 69%
31%27%17%14%
FIRST QUARTER 2009 29
FY 2008 FINANCIAL SUMMARY
Sales $2,588.0 $2,415.9 7%
Performance Op. Income(1) 298.2 281.4 6%
11.5% 11.6% (13 bps)
Equity Income 8.1 9.1
Performance EBIT(1) 301.1 280.0 8%
11.6% 11.6% + 4 bps
Performance Net Income(2) 246.8 208.5 18%
9.5% 8.6% + 91 bps
Diluted Shares 65.9 69.3
Performance EPS (2) 3.75 3.01 25%
FY 2008 FY 2007 Growth Performance Drivers(in $ Millions except per share data)
Flat in Local Currencies
Transactional FX Impact of (26 bps)
Performance Tax Rate of 19%
Reduction of 3.4 Million Diluted Shares Outstanding
Free Cash Flow (3) $241.2 ($76.1)
Transactional FX Impact of (26 bps)
113% Conversion of Net Income
(1) Adjusted for streamlining and separation costs, as well as a one-time transitional impact from a new accounting standard SFAS 141R that WABCO will adopt in 2009
(2) Adjusted for streamlining, separation and one-time tax and discrete tax items, as well as a one-time transitional impact from a newaccounting standard SFAS 141R that WABCO will adopt in 2009
(3) Net cash provided by operating activities less net cash used in investing activities
FIRST QUARTER 2009 30
53,6
317,9
Q1 Sales Bridge
Performance
TranslationalFX
705.4705.4
20092008
(53%)
Q1 Sales Growth (1) By Channel
Aftermarket -14%
OEMs -53%
Sales to JVs -43%
� Sharp Global Decline in Production� China and Brazil Markets Less
Affected � Western Europe Trailer Production
down 70%
� Slowdown in Transportation� Performance Better than
Anticipated
Q1 T&B Sales Growth (1) vs. Estimated Production By Region
Europe
North America
South America
Japan/Korea
China
(55%)
(33%)
(42%)
(60%)
(33%)
(58%)
(39%)
(42%)
(55%)
(30%)
� Continued Decline in the U.S.
WABCO Est. Q1 Prod
333.9333.9
(45%)
( )
( )
� All Economies Strongly Affected by the Global Recessive Environment
� Weak Demand Drives Severe Production Cuts at All T&B OEMs
� Stimulus Package Improving Truck Demand in China
� Production Volumes are Preliminary Estimates
Comments
(in $ Millions)
(1) Adjusted for currency translation
SALES PERFORMANCEAND MARKET TRENDS
FIRST QUARTER 2009 31
Sales $333.9 $333.9 (45.1%)
Gross Profit 58.2 80.0 (53.0%)
17.4% 24.0% (403 bps)
OPEX & Other (88.2) (77.0) 15.7%
(26.4%) (23.1%) (797 bps)
Operating (Loss)/Income (30.0) 3.0 (95.8%)
(9.0%) 0.9% (1,199 bps)
Equity Income/(Loss) (4.8) (4.8)
EBIT ($36.3) ($2.5)
(10.9%) (0.7%)
Taxes 0.5 3.3
Net Income ($36.4) ($5.4)
EPS ($0.57) ($0.08)
PerformanceQ1 Q1 vs. 2008
Reported Performance In Local Curr. Performance Drivers(in $ Millions) (1) (2)
• Volume & Mix: ($73.0)
• Productivity:– Materials: $7.7– Conversion $3.9– OH Absorption & Other: ($37.7)
• Labor Inflation: ($5.4)
• OPEX & Other Savings: $20.4
• Unprecedented Market Slowdown
• Order Book at $636, Down 51%
• Price: ($7.2) or (1.8%)
• ($6.2) vs. ‘08, Predominantly from the Non-Brakes Indian JV
• Versus $1.04 in Prior Year
Q1 2009 FINANCIAL PERFORMANCE
Free Cash Flow (3) $23.3
(1) Adjusted for streamlining, separation and one-time tax and discrete tax items(2) Adjusted for currency translation, streamlining and separation costs(3) Net cash provided by operating activities less net cash used in investing activities
FIRST QUARTER 2009 32
Full Year Operating Assumptions *
Salesvs. ‘08
Performance Operating
Margin
Streamlining Costs ’09
Free Cash Flow
(25%) – (35%)
1H:(35%)-(45%) - 2H:(10%)-(20%)
6% – 3%
$60M – $65M
Positive (Excluding Streamlining &
Separation)
(2)
Key Inputs
� Containing Price Erosion at 1.5% to 2.0%
� Completion of Streamlining Activities in 1H’09 while Adding Flexibility for Short-Term Market Volatility
� Cost of Raw Materials at Levels Below 2008
� Additional Reduction of 150 Positions
� Execution of Cost Reduction Plan
� Excludes Potential Impact from EC Fine(3)
(1)
FULL YEAR 2009 OPERATING FRAMEWORK
(*) Assumptions as announced on April 27, 2009. Inclusion of this information in this presentation is not an update or reaffirmation of those financial assumptions
(1) Adjusted for currency translation(2) Adjusted for streamlining and separation costs(3) Net cash provided by operating activities less net cash used in
investing activities
FIRST QUARTER 2009 33
WABCO SUMMARY
� Industry leader, well PREPARED and sufficiently FLEXIBLE to successfully
manage the global downturn in commercial vehicle industry in 2009, without
compromising commitment to long term GROWTH STRATEGY
� Power to remain TECHNOLOGY LEADER adding breakthroughs to portfolio of
technologies and products for full connectivity to all markets
� WABCO Operating System, one of our industry’s most advanced management
environments, delivers continuous OPERATIONAL improvements
� Connecting with and adapting to CUSTOMERS everywhere in the world and
continuing to anticipate and satisfy their needs
PASSION© 2009 WABCO Holdings Inc. All rights reserved.