Borgwarner Inc. · NYSE:BWA
Borgwarner — Investor Day (June 2023)
79 slides from Borgwarner's investor day presentation, Jun 6, 2023
Slide 1: Investor Day 2023
June 6, 2023 Investor Day 2023
Slide 2: Welcome/Agenda
June 6, 2023 Welcome/Agenda Patrick Nolan Vice President, Investor Relations
Slide 3: Forward-Looking Statements
Forward-Looking Statements This presentation may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management’s current outlook, expectations, estimates and projections. Words such as “anticipates,” “believes,” “continues,” “cou
Slide 4: Non-GAAP Financial Measures
Non-GAAP Financial Measures This presentation contains information about BorgWarner’s financial results that is not presented in accordance with accounting principles generally accepted in the United States (“GAAP”). Such non-GAAP financial measures are reconciled to their closest GAAP financial mea
Slide 5: Today's Agenda
Today’s Agenda ▪ Keynote Address | Fred Lissalde, President & Chief Executive Officer ▪ ePropulsion Products | Stefan Demmerle, President, ePropulsion ▪ eThermal Products | Joe Fadool, President, Emissions, Thermal & Turbo Systems ▪ Battery Systems | Volker Weng, President, Drivetrain and Battery Sy
Slide 6: CEO Keynote Address
June 6, 2023 CEO Keynote Address Investor Day Frédéric B. Lissalde Chief Executive Officer
Slide 7: Executing on Our Vision & Mission
Executing on Our Vision & Mission Pres Today’s Agenda ente Our r Vision ▪ A clean, energy-efficient world Na me Our – Title ▪ We deliver innovative and sustainable Mission mobility solutions 7 Investor Day Investor Day 2023 2023
Slide 8: BorgWarner Today
BorgWarner Today Global Headquarters Auburn Hills, MI Americas Europe Asia ~11,900 ~14,300 ~12,100 Employees Employees Employees 27 23 30 Locations Locations Locations 3 10 6 Countries Countries Countries 8 Investor Day 2023 Note : Data pro forma for completion of spin-off transaction; locations inc
Slide 9: Our Electrification Strategy is Accelerating
Our Electrification Strategy is Accelerating Organic ~$2.2B 29 Awards $2.3-$2.6B eProduct eProduct Awards 2021A – 2023E Organic 2023E eProduct Activity has eProduct R&D & CapEx Announced Since March Sales Guidance 2021 Investor Day Intensified Investment Announced PHINIA CHARGING FORWARD Spin-Off 20
Slide 10: Our Priorities for Delivering on Our Vision
Our Priorities for Delivering on Our Vision Creating a Cleaner, Enhancing the Focusing on Workforce More Energy-Efficient Sustainability of Our Transition World Operations ▪ 88% of 2022 sales from ▪ Commitment to carbon ▪ Power to Evolve program clean and emissions- neutrality by 2035 has placed >90
Slide 11: Our Electrification Opportunity Continues to Grow
Our Electrification Opportunity Continues to Grow Significant Acceleration of EV Market Penetration Since Charging Forward Announcement % BEV Market Penetration: Today 48% Charging Forward 42% Announcement 37% 32% 27% 22% 30% 28% 17% 26% 13% 22% 10% 18% 15% 6% 12% 10% 5% 7% 2021 2022 2023E 2024E 202
Slide 12: Estimated High-Growth Opportunities Across Large eProduct Market
Estimated High-Growth Opportunities Across Large eProduct Market True Addressable Market1 ($B) eProduct True Addressable Market1 ($B) $157 ’23-30 Category CAGR $127 $131 Charging2 25% $112 eHeating3 21% $91 High Voltage $127 eProduct 21% Box & OBC4 $83 $91 $67 $67 $36 Inverter 16% $36 eGear/P4 17% B
Slide 13: Wide-Ranging Electric Vehicle System Portfolio
Our Investments Have Resulted in a Wide- Ranging Electric Vehicle System Portfolio STATIONARY CHARGING ENERGY STORAGE & MANAGEMENT ELECTRIC PROPULSION THERMAL MANAGEMENT Reduction Electric Battery management Inverter motor gear High-voltage coolant heater system (BMS) (HVCH) eFan CV Battery pack POW
Slide 14: Charging Forward Progress Report
Charging Forward Progress Report EV Organic Sales M&A Dispositions in 2025 by 2025 by 2025 Current ~$3.0B Booked Status Post Charging Forward $2.5B $2.0B $3.5B Intended Goals Separation $3.3B $1.3B $0.2B Category Already 1 Exceeded M&A Target Category 1 Executing PHINIA Target On Track Category Spin
Slide 15: Charging Forward Strategy Evolution
Charging Forward Strategy Evolution STRATEGY STRATEGY CHARGING FORWARD 2027 Maximize Organic EV EV-Focused Optimize eProduct eProduct Foundational Growth M&A Combustion Growth Profitability Value 15 Investor Day 2023
Slide 16: Establishing 2027 Targets
Establishing 2027 Targets eProduct ▪ $10B+ in eProduct sales by 2027 STRATEGY Growth 2027 eProduct ▪ eProduct Adj. Operating Profitability Margin ~7% by 2027 eProduct eProduct Maximize Growth Profitability Foundational Value Maximize ▪ Maintain double-digit Foundational margins for Foundational Valu
Slide 17: Driving Growth Across Various eProduct Technologies
Driving Growth Across Various eProduct Technologies Estimated eProduct (% of BorgWarner Sales) 2023 – 2027: Continued Expansion and Building Scale in eProducts 64% Illustrative Growth In- ▪ Estimated eProduct sales of $10B+ by 2027 49% Line with with double-digit annual growth rates Market through 2
Slide 18: Significant Volumes Across Numerous eProduct Categories
Significant Volumes Across Numerous eProduct Categories Inverter Volumes High-Voltage Coolant eHeater Volumes 2027 Estimated Sales: ~$3.5B 2027 Estimated Sales: ~$0.6B ~6.1M ~7.0M ~0.8M ~1.2M 2022 2025 Booked 2027E 2022 2025 Booked 2027E Expect to be #1 Non-Captive Producer by 2025 Expect to be a Ma
Slide 19: Winning eProduct Awards with Large OEMs Around the World
Winning eProduct Awards with Large OEMs Around the World North America Europe China/ROW 7 eProduct Awards Since 2021 10 eProduct Awards Since 2021 12 eProduct Awards Since 2021 Product SOP Year Product SOP Year Product SOP Year CV Battery System 2023 DC Fast Charging Station 2022 HV Coolant Heater 2
Slide 20: eProduct Margins ~7% in 2027
eProduct Margins ~7% in 2027; Pathway to Deliver Double-Digit Margins Longer Term Estimated eProduct Profitability Characteristics + Gross Profit $ R&D $ Operating Margin ~7% Operating Margin by 2027 Breakeven by end of 2023 FCF positive by 2027 Breakeven – 2022 2023E 2027E 2030E 20 Investor Day 202
Slide 21: How Does BorgWarner Drive Strong Profitability in eProducts?
How Does BorgWarner Drive Strong Profitability in eProducts? Key Drivers of eProducts Profitability Global Scale Technology Operational & Product Excellence Leadership Uniquely Positioned with Differentiated Technology and Systems Capabilities Combined with a Track Record of Execution 21 Investor Da
Slide 22: Attractive Characteristics of Remaining Foundational Portfolio
Attractive Characteristics of Remaining Foundational Portfolio Leading Market Positions Maintaining Expected Adjusted Operating Margins ~100% Focused ICE Portfolio Helps Customers Transition Expected Free Cash Flow Conversion1 From Combustion to Hybrid to Electric 22 Investor Day 2023 1. Defined as
Slide 23: Strong Foundation From Core Market-Leading Technologies Supports EV Growth
Strong Foundation From Core Market-Leading Technologies Supports EV Growth Continuity of Technologies and Capabilities Supporting customers with access to Foundational eProduct Supporting critical technology as they execute Air and Thermal Customers Management Thermal Management their own transition
Slide 24: Leveraging Existing Footprint to Support eProduct Growth
Leveraging Existing Footprint to Support eProduct Growth North America Europe China/ROW Plant Location eProduct SOP Plant Plant Location eProduct SOP eProduct SOP Location eMotor & iDM Jiangshan, SLP, Mexico 2021 Landskrona, HV Heaters 2021 assembly eMotors 2018 China Sweden Cadillac, MI, US HV Heat
Slide 25: Delivering on Our Commitments and Continuing to Charge Forward
Delivering on Our Commitments and Continuing to Charge Forward ✓ Actions to complete Charging Forward pillars on track 2 years into plan ✓ Rapid growth across eProduct portfolio with sales of $10B+ expected in 2027 Clear path to eProduct profitability and expected ~7% margin by 2027 with continued ✓
Slide 26: ePropulsion Products
June 6, 2023 ePropulsion Products Investor Day Stefan Demmerle President, ePropulsion
Slide 27: ~$100B Market Opportunity Estimated by 2030
~$100B Market Opportunity Estimated by 2030 True Addressable Market1 ROW ~$99B NA EU China ~$73B Inverter eMotor ~$55B ~$30B Other Power iDM Electronics 2023E 2025E 2027E 2030E 27 Investor Day 2023 Source: BorgWarner Global Market Research 1. Excludes in-house markets; includes High-Voltage Power El
Slide 28: Inverter Volume and Pricing Illustrate Leadership
Inverter Volume and Pricing Illustrate Leadership Inverter True Addressable Market1 Product Leadership Highlights ▪ #1 non-captive supplier by mid-decade (BEV and xEV) with growth expected to be significantly faster than market ROW NA ▪ Market leader in advanced solutions including 800v and SiC ~$36
Slide 29: Innovation Driving Market Leading Position
Innovation Driving Market Leading Position Key Inverter Components Driver input Competitive Advantage GearBox Computer Custom integrated circuits (ASICs) & software Rotational force BEV inverter at wheels Capacitor Power Module Architecture Viper Power switch innovation for with double-sided Electri
Slide 30: Ongoing Innovation to Maintain Leadership Position
Ongoing Innovation to Maintain Leadership Position Viper SiC Usage 100% BorgWarner Leading in efficient use of SiC Leading OEMs R&D focused on maintaining product leadership 50% Leveraging scale across multiple OEM platforms Incremental awards leverage 0% Today @ Today @ Next Gen @ Next Gen Future e
Slide 31: eMotors Positioning Has Improved Significantly
eMotors Positioning Has Improved Significantly eMotor Product Leadership Highlights True Addressable Market1 ▪ By mid-decade, among market leaders in xEV and non-captive BEV ROW ▪ Added scale and in-house tooling capabilities through Santroll NA ~$18B acquisition EU China ▪ Expecting to improve thro
Slide 32: eR&D Leverage by Reusing Key Building Blocks
eR&D Leverage by Reusing Key Building Blocks Leveraging eR&D Scale ▪ Developed base of technology able to drive commonality and reuse across OEM customer programs ▪ Forward-looking R&D concentrates on customer platforms, improving project costs and maximizing talent Customer 1 Customer 2 Platform Ta
Slide 33: Products Designed to Manage Supply Chain Risk
Products Designed to Manage Supply Chain Risk Viper eMotor Switch Inverter Control Board Supplier 1 Supplier 2 Supplier 3 Supplier 1 Supplier 2 Supplier 3 Scalable and flexible power- Hardware abstraction concept: Scalable eMotor platform: switch design: Supporting multiple sources for Performance o
Slide 34: ePropulsion Products Core to Success in Electrification
ePropulsion Products Core to Success in Electrification Estimated ePropulsion eProduct Sales ▪ ePropulsion expected to account for >50% of overall eProduct sales in 2027 ~$5B-$6B ▪ Strong share positions across multiple product lines ▪ Making the necessary investments to maintain our product leaders
Slide 35: eThermal Products
June 6, 2023 eThermal Products Investor Day Joe Fadool President, Emissions, Thermal & Turbo Systems
Slide 36: Electrified Thermal Products Leveraging Foundational Business
Electrified Thermal Products Are Great Examples of Leveraging Foundational Business High-Voltage Heaters Battery Coolers High-Voltage eFans Power Electronics Coolers 36 Investor Day 2023
Slide 37: High-Voltage Heaters
High-Voltage Heaters High-Voltage Heater True Addressable Market1 ~$4.3B ~$2.9B ~$2.2B Product Background ▪ Enables improved battery performance, longer ~$1.1B range and comfortable cabin climate ▪ Organically developed by leveraging low-voltage heater and other thermal expertise including EGR ▪ Fir
Slide 38: High-Voltage Heater Product Line Has Product Leadership and Scale
High-Voltage Heater Product Line Has Product Leadership and Scale Product Leadership Highlights BorgWarner High-Voltage Heater Volumes ▪ 400V and 800V capabilities with awarded business across multiple variations 2027 Target Sales: ~$0.6B ▪ Advantages in efficiency and preventing pressure drop ▪ Exp
Slide 39: eFans for CV On-Highway
eFans for CV On-Highway eFan True Addressable Market1 ~$270M ~$170M eFan HP: 30-60kW eFan LP: 5-20kW ~$90M Product Background ▪ Market leader in clutch fans today ▪ Multiple requests to quote before product was available ~$0M ▪ Strong thermal management knowledge combined with 2023E 2025E 2027E 2030
Slide 40: Battery Coolers
Battery Coolers Battery Cooler True Addressable Market1 ~$4.5B ~$3.2B Product Background ~$2B ▪ Strong relationship in EGRs drove customer to request development of this new product ~$1B ▪ Asked to quote product due to customer intimacy ▪ Award with major German vehicle manufacturer expected to laun
Slide 41: Power Electronics Coolers
Power Electronics Coolers Power Electronics Cooler True Addressable Market1 ~$1.8B ~$1.5B ~$1.2B Product Background ~$0.8B ▪ Heat transfer expertise ▪ In-house copper manufacturing capabilities ▪ Strong design and simulation capabilities for thermal loading, combined with process engineering for cos
Slide 42: eThermal Products Showcases Ability to Organically Develop eProducts
eThermal Products Showcases Ability to Organically Develop eProducts Key eThermal takeaways Estimated eThermal Sales ▪ Leveraging customer intimacy and technical capabilities developed from ~$700M foundational products ▪ Speed to market is differentiator vs. peers ▪ Believe current portfolio additio
Slide 43: Battery Systems
June 6, 2023 Battery Systems Investor Day Volker Weng President, Drivetrain and Battery Systems
Slide 44: Potential for Significant, Long-Term Growth
Potential for Significant, Long-Term Growth True Addressable Market1 for CV On-Hwy in EU+NA ~$5.6B ~$4.2B N. America ~27% 7-year CAGR ~$3.0B Pioneering eCV Battery Packs ~$1.3B Europe ~22% 7-year CAGR ▪ Expected strong growing market opportunities ▪ Electric Bus and Truck penetration in EU and NA ex
Slide 45: Overview of the Business
Overview of the Business Pioneering eCV Battery Packs Estimated Global Battery Pack Sales ~$1.3B CAGR ~38% ~$1.0B ~$600M ~$250M ▪ Ultra-high energy density in customized solutions ▪ Modular and scalable on Battery pack level ▪ Robust and safe designs for eCV requirements ▪ Meeting circular and regul
Slide 46: Battery Systems Manufacturing Footprint
Battery Systems Manufacturing Footprint Hazel Park, MI, USA Seneca, SC, USA Darmstadt & Piracicaba, Brazil Manufacturing location Manufacturing location Langen, Germany Manufacturing location HQ; 2 manufacturing locations & tech center 2.2 GWH >6.0 GWH (22.000 BPs/yr) (>60.000 BPs/yr) 2023 2025E Pro
Slide 47: Seneca, South Carolina Plant Expansion Update
Seneca, South Carolina Plant Expansion Update Plant Overview ▪ BorgWarner manufacturing site since 1995 ▪ Currently produces driveline systems and components Battery Module Expansion ▪ Investment amount of $42 million ▪ Battery modules start of production expected: ▪ First half of 2024 ▪ Launching 2
Slide 48: Next Steps Towards Sustainable Growth
Next Steps Towards Sustainable Growth “GROW NOW” “GO NEXT” “GO BROAD” 21700 cylindrical NMC cell 46xx cylindrical NMC cell LFP / Lithium Sodium Adding production capacity Preparing next generation for Completing product portfolio to capitalize on profitable higher-energy-density CV with a cost-effic
Slide 49: Circular Battery Eco System (CBES)
Circular Battery Eco System (CBES) Circularity eCV market After sales Second-life application Sustainability Repaired battery back to customer 2nd life batteries ▪ Piloting circularity as a new way of EOL End of 1st life End of life thinking for BorgWarner Defective Field or batteries Factory repair
Slide 50: Battery Systems – Business Wins
Battery Systems – Business Wins Key Markets & Customers Awards Announced Since Last Investor Day ▪ Award with GILLIG (North American transit buses) with third generation battery systems, launched in 2023 ▪ Award for leading North American bus platform integrator launched in 2023 High-Quality Custome
Slide 51: Battery Charging
June 6, 2023 Battery Charging Investor Day Isabelle McKenzie President, Morse Systems
Slide 52: Charging Market Overview
Charging Market Overview Expect strong growth across all DC charging segments DC Charging Hardware Market Projection Key takeaways Total Addressable Market in ($B) 2023-2030 17.1 Est. CAGR ▪ Believe DC charging market shows strong growth through 2030 4.1 Truck 53% ▪ Bus and Truck CV segments showing
Slide 53: Charging Market Requirements Vary by Segment
Charging Market Requirements Vary by Segment LIGHT VEHICLE COMMERCIAL VEHICLE Destination Enroute School Bus Transit Bus Truck US only Shopping, work, OEM Mostly charge point School bus fleet OEM, municipalities OEM, fleets dealer, home chargers, operators, oil/gas and operators and private municipa
Slide 54: BorgWarner Charging Strategy
BorgWarner Charging Strategy Focus on segments with highest potential for value creation LIGHT VEHICLE COMMERCIAL VEHICLE Destination Enroute School Bus Transit Bus Truck US only Expand to LV LV Destination Enroute segment Focus on CV segment via OEM, Fleet & CPOs excluded over time Excluded due to
Slide 55: BorgWarner Building Charging Expertise Since 2017
BorgWarner Building Charging Expertise Since 2017 Position strengthened with recent acquisitions of SSE and Rhombus Timeline 2017 Acquired first stationary charging assets via Sevcon 2020 Delphi acquisition added significant electronics scale and capabilities 2022 Acquired Rhombus Energy Solutions (
Slide 56: Broad DC Fast Charging Portfolio
BorgWarner’s Broad, DC Fast Charging Portfolio Light Vehicle School Bus Transit Bus Truck Enroute DC ≤50kW Under development, globally DC 50kW-150kW Not a customer DC 150kW-350kW requirement Under development, globally Not a customer DC >350kW requirement Under development, globally Not a customer V
Slide 57: Established Global Footprint in Key Markets
Established Global Footprint in Key Markets Lugo, Italy Dearborn, MI San Diego, CA Xiangyang, China 57 Investor Day 2023
Slide 58: Potential to Create Differentiation
Potential to Create Differentiation Leverage core automotive capabilities to support charging Key differentiators Estimated Global Charging Sales ▪ We plan to leverage existing foundational capabilities to achieve product leadership − Electronics & software capabilities Potential Add’l − System engi
Slide 59: Financial Outlook
June 6, 2023 Financial Outlook Investor Day Kevin Nowlan Chief Financial Officer
Slide 60: Our Financial Strategy
Our Financial Strategy Driving Maximizing eProduct Foundational Profitability Value Driving Growth High Single-Digit Organic Sales Growth Scaling Balanced eProduct Top-Quartile Capital Portfolio Margins Deployment Strong Free Cash Flow Significant Shareholder Value Creation Opportunity 60 Investor D
Slide 61: BorgWarner Financials at a Glance
BorgWarner Financials at a Glance 2023E Financials Pro Forma for Spin-Off of Fuel Systems and Aftermarket Segments $14.0-$14.6B ~10%-15% $2.3-$2.6B Net Sales YOY Organic Sales Growth eProduct Sales 9.2%-9.6% ~$400-$500M 1 1.3x Adj. Operating Margin Free Cash Flow Net Leverage at YE2023 Post Spin-Off
Slide 62: Accelerating eProduct Strategy & Driving Sales Growth
Accelerating eProduct Strategy & Driving Sales Growth 2023E – 2027E Sales Growth Drivers of Outsized Growth ▪ Focused electrification strategy poised for significant acceleration ~$1.7B ~$21B ~$5B+ ~$19B+ ▪ Customer demand and industry ~$14.3B1 recovery from macro challenges ▪ Expected strategic M&A
Slide 63: eProduct Leadership With Clear Roadmap to ~$10B+ in Sales
eProduct Leadership With 2023E – 2027E eProduct Sales Clear Roadmap to ~$10B+ in ~$1B $10B+ Sales by 2027 ~$3B Beyond Original Charging Forward M&A Target ~$0.7B ~$5.6B $1.3B eHybrid ~$2.5B1 $4.3B $0.8B Electric eHybrid $1.7B Electric 2023E 2025E Booked M&A to Complete 2025E - 2027E Additional 2027E
Slide 64: Expect Strong, Long-Term Profitability for eProducts
Expect Strong, Long-Term Profitability for eProducts eProducts Expected to Breakeven by YE 2023 and …With Clear Path Expected to Deliver Reach Strong Profitability by 2027… Double-Digit Margins by 2030 ~$5-$6B eProduct Sales Increasing Increasing $10B+ Net Sales Scale R&D Spend ~7% eR&D 15% Incremen
Slide 65: Attractive Financial Profile for Foundational Business
Attractive Financial Profile for Foundational Business Leading Margins Robust FCF Conversion1 Relatively Stable Sales Base 2023E Operating Margins 2023E FCF Conversion: FCF / Adj. Net Income BWA Foundational Sales (’23E – ’27E) ~$11.5-$12B ~100% ~$11B ~13% 73% 6.2% BWA Auto Supplier BWA Auto Supplie
Slide 66: Proactive Actions to Sustain Foundational Margins
Proactive Actions to Sustain Foundational Margins Executing from Position of Strength Estimated Restructuring Annualized Cost Savings ▪ Restructuring, closure or $80-$90M consolidation of select facilities in all major regions $60-$70M ▪ Est. additional cash restructuring costs of $130-$150M from 20
Slide 67: Charging Forward Driving Long-Term, Double-Digit Growth in Profitability
Charging BWA Adj. Operating Income (% Margin) Forward $ Sales ~$14.3B ~$21B Driving Long- Term, Double- ~$2.1B Digit Growth in Profitability ~$1.3B ~10% ~9.4% 2023E 1 2027E ~$750M Expected Increase in Annual Adj. Operating Income between 2023 and 2027 67 Investor Day 2023 1. Reflects midpoint of 202
Slide 68: Expected Strong, Stable Earnings Profile Under Multiple EV Scenarios
Expected Strong, Stable Earnings Profile Under Multiple 2030 EV Penetration Scenarios $2.8 $2.7 Adj. Operating Income ($B) $2.6 Baseline EV Ramp Faster EV Ramp $2.5 Slower EV Ramp Total Sales ~$25B Total Sales ~$26B Adj. Op. ~10% Adj. Op. Margin Mid-9% Total Sales ~$24B Adj. Op. Margin ~10%-10.5% $2
Slide 69: Strong Free Cash Flow Enables Disciplined Capital Deployment
Expected Strong Free Cash Flow Generation Enables Disciplined Capital Deployment Historical Capital Allocation (2017 – 2022) Estimated Capital Flows (2023E – 2027E) ~$2.5B Dividends ~$3.5B Available for 13% Cumulative Organic Investments, Capital Share Free Cash Flow1 M&A & Expenditures 12% Repurcha
Slide 70: Proven Track Record of Active Portfolio Management
Proven Track Record of Active Portfolio Management M&A is a Core Competency Enhanced Electrification Portfolio Via M&A ▪ Delphi acquisition was Power Electronics Battery Packs & Modules cornerstone of accelerated eProduct strategy ▪ Completed five eProduct acquisitions since start of Charging Forwar
Slide 71: ROIC Discipline Throughout BorgWarner Transformation
ROIC Discipline Throughout BorgWarner Transformation eR&D, eCapEx & M&A Return on Invested Capital ~$1.3B 12.0% 11.6% ~$1.1B ~11% ~$0.9B M&A eCapex eR&D 2021 2022 2023E 2021 2022 2023E1 Significant Investments in Emerging Technologies Constantly Governed by Focus on Investment Discipline 71 Investor
Slide 72: Financial Summary
Financial ▪ Strategic growth actions through 2027 Summary expected to drive: ▪ $10B+ of eProduct sales ▪ ~7% eProduct margins ▪ Sustained Foundational margins ▪ Expected achievement of these targets supports top-quartile margin performance ▪ Strong FCF generation expected to accelerate through 2027
Slide 73: Investor Day
June 6, 2023 Investor Day 2023
Slide 74: Appendix
Appendix 74 Investor Day 2023
Slide 75: 2023 Expected Outlook and Other Items
2023 Expected Outlook and Other Items Full-year Net Sales Outlook ($M) 2023E 2023EOutlook Outlook 2022 net sales $15,801 Organic Growth 10% to 15% Disposition $3,233 pro forma impact EV Sales $1.5B to $1.8B 9.4% Pro Forma 2022 pro forma sales $12,568 Adj. Operating Margin eProduct Sales $2.3B to $2.
Slide 76: 2023 Market Expectations
2023 Market Expectations LV Units in millions BorgWarner Global North America Europe China Market FY’22 FY’23 Actual Est. FY’22 FY’23 FY’22 FY’23 FY’22 FY’23 82.3 82.0 to 84.8 Actual Est. Actual Est. Actual Est. 26.2 25.1 to 26.2 14.4 to 15.0 15.8 15.8 to 16.3 14.3 BorgWarner Estimated LV/CV Weighte
Slide 77: Adjusted Operating Income and Margin Reconciliation to US GAAP
Adjusted Operating Income and Margin Reconciliation to US GAAP The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinu
Slide 78: Full Year 2022 Pro Forma Adj. Operating Income Reconciliation to US GAAP
Full Year 2022 Pro Forma Adj. Operating Income and Adj. Operating Margin Reconciliation to US GAAP $ in millions 2022 Net Sales $15,801 Pro forma disposition impact ($3,233) Pro forma net sales $12,568 Operating income $1,374 Operating margin % 10.9% Non-comparable items: Intangible asset amortizati
Slide 79: Free Cash Flow Reconciliation to US GAAP
Free Cash Flow Reconciliation to US GAAP The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, including tooling outlays. The measure is useful to both management and investors in evaluating the Company’s ability to service and repay its debt. To