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WABCO Confidential and Proprietary 1
WABCO INDIA LIMITED INVESTOR DAY 2017
MUMBAI
Sept 14 2017
WELCOME
WABCO Confidential and Proprietary
SAFE HARBOR STATEMENT
2
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
other 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.
2
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
3
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
15 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
of Commercial Vehicles
Impact on Commercial Vehicles Requirements
Segmentation
Urban / Suburban Transportation
Long Haul Transportation
5
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
6
WABCO Confidential and Proprietary
EXPANDING RESERVOIR FOR ORGANIC GROWTH A
pp
lic
ab
le c
on
ten
t p
er
ve
hic
le
~$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
7
WABCO Confidential and Proprietary
SUSTAINING DIFFERENTIATION: TECHNOLOGY LEADERSHIP
Early anticipation, constant innovation and relentless re-design to cost
power the adoption of WABCO technology
8
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%
9
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
10
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
11
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
12
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
13
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
14
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
of our global operations
BCC SHARE
ENGINEERING
HEADCOUNT SOURCING
2016 BEST COST COUNTRY (BCC) RESOURCES
SALES BY REGION
2007 2016
Europe
Americas
Asia
15
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
16
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
17
WABCO Confidential and Proprietary 18
WABCO INDIA
WABCO Confidential and Proprietary
WABCO INDIA THE GROWTH ENGINE
19
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
20
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
21
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
22
WABCO Confidential and Proprietary
DRIVING GROWTH THROUGH DIFFERENTIATING CREATIVITY
IN AFTERMARKET
23
• 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
Performance enhancement kits
Fleet Management Solution
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
operation 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
24
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
25
WABCO Confidential and Proprietary
WIN FMS ROAD MAP
26
• 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
27
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
28
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
29
-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
0
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 30
Source: National Stock Exchange
WABCO Confidential and Proprietary
WABCO INDIA OPERATIONS PERFORMANCE
31
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
32
Cummins India “Best Supply Chain Transformation” award VECV’s award for “Outstanding contribution to
Technology Innovation”
WABCO Confidential and Proprietary
AWARDS AND ACCOMPLISHMENTS
33
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
34
34
WABCO Confidential and Proprietary 35
THANK YOU