Meritor Download

Table of Contents
Rpt. 26628803
29-Jul-2015
MERITOR INC
PIPER JAFFRAY - COMPANY REPORT
- POTTER, ALEXANDER
2 - 10
Rpt. 26627627
29-Jul-2015
MERITOR INC
KEYBANC CAPITAL MARKETS
- HOSELTON, BRETT D
11 - 18
Rpt. 26624661
29-Jul-2015
MERITOR INC
- HOSELTON, BRETT D
19 - 21
Rpt. 26492588
13-Jul-2015
MERITOR INC
BUYSELLSIGNALS RESEARCH
- RESEARCH TEAM, ET AL
22 - 48
Rpt. 26260797
14-Jun-2015
MERITOR INC
- HOSELTON, BRETT D
49 - 59
Rpt. 25943897
29-Apr-2015
MERITOR INC
PIPER JAFFRAY - COMPANY REPORT
- POTTER, ALEXANDER
60 - 68
These reports were compiled using a product of Thomson Reuters
www.thomsonreuters.com
COMPANY NOTE
July 29, 2015
Meritor, Inc. (MTOR)
Neutral
Upping Price Target by $1 to Reflect a Stronger Margin Outlook, Staying Neutral

CONCLUSION
PRICE: US$13.79
Price as of the close July 29, 2015
We are reiterating our Neutral rating on MTOR following a solid Q3 characterized by

impressive margins. MTOR increased margin and EPS guidance, reflecting continued
cost control measures and operational efficiency. Revenue guidance for the year
remained intact at $3.5B-$3.55B (inclusive of new incremental revenue from truck maker
PCAR). MTOR's margin performance under the M2016 initiative speaks for itself - and
we are raising our price target to $14 (from $13) thanks to a higher margin outlook
- but we still think MTOR lacks the growth drivers necessary to offset ~60% revenue
exposure to North America, where the truck cycle seems likely to fade in 2016/2017.
TARGET: US$14.00
7.0x 2016E EV/EBITDA (EBITDA $393.2m,
$1.36bn net debt, 100.3m shares)
Alexander E. Potter
Sr Research Analyst, Piper Jaffray & Co.
612 303-6709, alexander.e.potter@pjc.com
Winnie Dong
Research Analyst, Piper Jaffray & Co.
212 284-9338, winnie.x.dong@pjc.com
Strong Q3 results marked by solid sales and EPS performance. Revenue of $909M
missed our estimate of $919M but bested consensus of $908M (though revenue would
have been a strong "beat" if not for continued FX headwinds). Q3 adjusted EBITDA
margin of 9.6% topped our estimate of 8.9%, and management guided this metric
up to 9.3% for the full year (up from 9.0%-9.2% previously). Adjusted EPS was
$0.41 which was well above PJC/street estimates of $0.33/$0.32. Full year EPS is now
guided at $1.40-$1.50 (up from $1.30-$1.40), thanks to higher margins and an equity
repurchase program that will last through the end of 2016.
Changes
Rating
Price Tgt
FY15E Rev (mil)
FY16E Rev (mil)
FY15E EPS
FY16E EPS
Previous
US$13.00
US$3,528.5
US$3,801.8
US$1.36
US$1.74
52-Week High / Low

Shares Out (mil)
Market Cap. (mil)
Avg Daily Vol (000)
Book Value/Share
Net Cash Per Share
Debt to Total Capital
Div (ann)
Fiscal Year End
Growth drivers needed to leverage M2016 cost cuts. For evidence that MTOR has
used the M2016 initiative to deliver higher margins, one need look no further than
the company's operational performance over the last several quarters. We are now
firmly convinced that a 10% adjusted EBITDA margin is achievable in 2016, even
at revenue levels far below those originally envisioned by the plan. But as always,
revenue growth remains our primary sticking point. An expanded relationship with
PCAR does suggest that MTOR is finding ways to grow despite a peaking truck cycle
in North America, but it's unclear whether these wins can be replicated, or whether
vertical integration at other OEMs might erode the impact of these new revenue
streams.
Current
Neutral
US$14.00
US$3,541.9
US$3,803.1
US$1.47
US$1.80
US$15.65 / US$9.46
100.3
US$1,383.1
1,210
US$(6.16)
US$(7.50)
151.0%
US$0.00
Sep
Price Performance - 1 Year

USD
16
15
Staying Neutral, raising price target to $14 (from $13). We're maintaining our Neutral
14
stance on the shares but raising our price target to $14, due primarily to stronger
margins and a recovering truck cycle in Europe. Our price target remains based on 7x
2016 EV/EBITDA. We think cost-cutting and operational efficiency are positives, but
evidence of sustainable top-line growth will be needed before these cost savings can
be fully leveraged. We will remain Neutral on MTOR until such evidence materializes
(or until the stock's multiple contracts).
13
12
11
10
9
Jul-14 Sep-14
Nov-14
Jan-15
Mar-15
May-15
Jul-15
Source: Bloomberg
R I S K S T O A C H I E V E M E N T O F P R I C E TA R G E T
Steel price fluctuations, macroeconomic sluggishness, competition from independent

and captive suppliers, customer concentration, high leverage
COMPANY DESCRIPTION
MTOR makes axles, drivelines, suspensions, and brakes for trucks & machinery.
YEAR
REVENUE (US$ m)
EARNINGS PER SHARE (US$)
Dec
Mar
Jun
Sep
FY
CY
FY RM
CY RM
Dec
Mar
Jun
Sep
FY
CY
FY P/E
CY P/E
2014A
900.0
954.0
979.0
933.0
3,751.0
3,752.0
0.4x
0.4x
0.12
0.22
0.28
0.35
1.02
1.21
13.5x
11.4x
2015E
879.0A
864.0A
909.0A
889.9
3,541.9
3,604.6
0.4x
0.4x
0.35A
0.41A
0.41A
0.30
1.47
1.52
9.4x
9.1x
2016E
941.8
955.5
985.0
920.8
3,803.1
3,768.0
0.4x
0.4x
0.40
0.45
0.51
0.43
1.80
1.73
7.7x
8.0x
Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware
that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as
only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure
information, including an attestation under Regulation Analyst certification, found on pages 8 - 9 of this report or at the following
site: http://www.piperjaffray.com/researchdisclosures.
Meritor, Inc.
Page 1 of 9
2
Piper Jaffray Co.
MERITOR Inc. (MTOR)
Alexander E. Potter
(612) 303-6709
alexander.e.potter@pjc.com
Income Statement
(millions, except per share amount)
Date: 7/29/2015
Current disclosure information for this company can be found at:
http://www.piperjaffray.com/researchdisclosures
Net sales
Cost of sales
Gross profit
Selling, general and administrative
Other expenses
Operating Income from con. Op.
Equity share unconsolidated affiliates
Other income(expense)
EBIT
Net interest income (expense)
Income before income taxes
Income taxes
Income from continuing operations
Minority interest
Earnings from discontinued ops
Net income (loss) attributed to MTOR
Adjustments
Adjusted net income (loss) from cont. OP
Diluted income per common share:
Reported EPS (GAAP)
Operating EPS (Non-GAAP)
Weighted average diluted shares
EBITDA
1Q
Dec-12
891.0
808.0
83.0
62.0
7.0
14.0
9.0
23.0
(29.0)
(6.0)
10.0
(16.0)
(5.0)
(21.0)
5.0
(11.0)
FY2013
2Q
3Q
Mar-13
Jun-13
908.0
993.0
813.0
884.0
95.0
109.0
65.0
67.0
12.0
48.0
18.0
(6.0)
10.0
15.0
28.0
9.0
(25.0)
(45.0)
3.0
(36.0)
7.0
1.0
(4.0)
(37.0)
(1.0)
(4.0)
(38.0)
10.0
70.0
6.0
33.0
4Q
Sep-13
902.0
803.0
99.0
60.0
(54.0)
93.0
8.0
3.0
111.0
(27.0)
84.0
45.0
39.0
2.0
4.0
41.0
(26.0)
11.0
1QA
Dec-13
900.0
795.0
105.0
59.0
2.0
44.0
8.0
52.0
(27.0)
25.0
11.0
14.0
2.0
(1.0)
11.0
1.0
13.0
FY2014A
2QA
3QA
Mar-14
Jun-14
954.0
979.0
836.0
855.0
118.0
124.0
66.0
53.0
2.0
1.0
50.0
70.0
9.0
201.0
59.0
271.0
(48.0)
(22.0)
11.0
249.0
8.0
12.0
3.0
237.0
2.0
3.0
(3.0)
4.0
234.0
23.0
(208.0)
24.0
29.0
($0.22)
($0.11)
96.7
46.0
($0.04)
$0.06
97.2
58.0
($0.39)
$0.34
97.2
87.0
$0.42
$0.11
98.7
70.0
$0.11
$0.13
98.7
72.0
$0.04
$0.25
97.6
80.0
Growth Rates:
Total Sales
EBIT
EBITDA
Net income
EPS (operating)
-23.1%
-34.3%
-41.8%
-4.5%
-197.7%
-21.7%
-61.6%
-38.9%
-120.0%
-81.3%
-10.8%
-89.9%
-7.4%
-177.6%
-10.8%
-8.5%
217.1%
-11.4%
720.0%
-65.1%
1.0%
126.1%
56.5%
-152.4%
-215.8%
5.1%
110.7%
37.9%
-200.0%
298.4%
Margins & Ratios:

GPM
SG&A
EBITDA
Tax rate
9.3%
7.0%
5.2%
-166.7%
10.5%
7.2%
6.4%
233.3%
11.0%
6.7%
8.8%
-2.8%
11.0%
6.7%
7.8%
53.6%
11.7%
6.6%
8.0%
44.0%
12.4%
6.9%
8.4%
72.7%
Meritor, Inc.
$2.31
$0.29
101.1
82.0
4QA
Sep-14
933.0
793.0
140.0
80.0
7.0
53.0
10.0
63.0
(33.0)
30.0
30.0
1.0
(26.0)
3.0
6.0
35.0
1QA
Dec-14
879.0
764.0
115.0
65.0
2.0
48.0
9.0
2.0
59.0
(19.0)
40
7.0
33
1.0
(3.0)
29.0
3.0
35
FY2015E
2QA
3QA
Mar-15
Jun-15
864.0
909.0
749.0
785.0
115.0
124.0
57.0
65.0
3.0
8.0
55.0
51.0
9.0
10.0
2.0
(1.0)
66.0
60.0
(21.0)
(38.0)
45
22
6.0
6.0
39
16
1.0
4.0
(2.0)
43.0
13.0
3.0
26.0
42
41
4Q
Sep-15
889.9
774.2
115.7
56.0
(22.7)
33
2.3
31
1.0
29.9
30
1Q
Dec-15
941.8
819.3
122.4
71.7
(22.5)
49
8.6
41
1.0
39.6
40
FY2016E
2Q
3Q
Mar-16
Jun-16
955.5
985.0
831.3
856.9
124.2
128.0
76.9
82.4
(22.3)
(22.1)
55
60
9.6
10.6
45
50
1.0
1.0
44.1
48.8
44
49
4Q
Sep-16
920.8
801.1
119.7
72.9
(21.8)
51
8.9
42
1.0
41.2
41
FY2012
FY2013
FY2014
FY2015E
FY2016E
4,418.0
3,933.0
485.0
285.0
27.0
173.0
52.0
7.0
232.0
(95.0)
137.0
56.0
81.0
11.0
(18.0)
52.0
41.0
111.0
3,694.0
3,308.0
386.0
254.0
13.0
119.0
42.0
3.0
171.0
(126.0)
45.0
63.0
(18.0)
2.0
(2.0)
(22.0)
59.0
39.0
3,751.0
3,261.0
490.0
257.0
12.0
221.0
228.0
449.0
(130.0)
319.0
32.0
287.0
5.0
(32.0)
252.0
(178.0)
106.0
3,541.9
3,072.2
469.7
187.0
13.0
154.0
28.0
3.0
241.0
(100.7)
140.3
21.3
118.9
3.0
(1.0)
114.9
32.0
147.9
3,803.1
3,308.7
494.4
304.0
(88.7)
215.3
37.7
177.6
4.0
173.6
173.6
$2.54
$1.06
99.7
320.0
$1.14
$1.47
100.9
331.1
$1.80
$1.80
96.4
393.2
$0.03
$0.35
101.3
80.0
$0.29
$0.35
101.2
79.0
$0.42
$0.41
102.9
87.0
$0.13
$0.41
100.3
87.0
$0.30
$0.30
99.2
78.1
$0.40
$0.40
98.1
93.9
$0.45
$0.45
97.0
99.2
$0.51
$0.51
95.9
104.7
$0.43
$0.43
94.7
95.4
$0.54
$1.14
97.2
345.0
($0.22)
$0.40
97.1
261.0
-1.4%
2911.1%
-5.7%
-715.8%
-15.5%
3.4%
-43.2%
14.3%
-92.7%
210.0%
-2.3%
13.5%
9.7%
163.6%
162.6%
-9.4%
11.9%
8.7%
975.0%
66.0%
-7.2%
-77.9%
6.1%
-94.4%
42.5%
-4.6%
-11.2%
-2.4%
897.6%
-12.7%
7.1%
21.6%
18.8%
36.6%
16.8%
10.6%
16.5%
14.0%
2.5%
11.3%
8.4%
37.3%
20.4%
275.2%
24.5%
3.5%
30.3%
22.2%
37.5%
44.0%
-4.4%
-8.7%
NA
-17.5%
34.1%
-16.4%
-26.3%
-24.3%
-142.3%
-64.9%
1.5%
162.6%
22.6%
-1245.5%
165.0%
-5.6%
-46.3%
3.5%
-54.4%
38.7%
7.4%
26.1%
18.8%
51.1%
22.4%
12.7%
5.4%
8.4%
4.8%
15.0%
8.6%
8.6%
0.0%
13.1%
7.4%
9.0%
17.5%
13.3%
6.6%
10.1%
13.3%
13.6%
7.2%
9.6%
27.3%
13.0%
0.0%
8.8%
7.0%
13.0%
0.0%
10.0%
17.5%
13.0%
0.0%
10.4%
17.5%
13.0%
0.0%
10.6%
17.5%
13.0%
0.0%
10.4%
17.5%
11.0%
6.5%
7.8%
40.9%
10.4%
6.9%
7.1%
140.0%
13.1%
6.9%
8.5%
10.0%
13.3%
5.3%
9.3%
15.2%
13.0%
0.0%
10.3%
17.5%
Page 2 of 9
3
MERITOR Inc. (MTOR)

Segment & Regional Revenue Analysis
1Q
Dec-12
Revenue by Segment & Geography
North America
Europe
S. America (mostly Brazil)
China
Other Asia Pacific (Includes India)
Total Commercial Truck & Industrial
Aftermarket & Trailer
Total Revenue (Before Intersegment)
Intersegment Eliminations
Total Consolidated Revenue
Sales Growth (y/y%) by Segment & Geography
North America
Europe
China
Revenue Seasonality Assumptions
Commercial Truck & Industrial
Meritor, Inc.
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
715
203
918
(27.0)
891
712
224
936
(28.0)
908
784
238
1,022
(29.0)
993
709
233
942
(33.0)
909
1QA
Dec-13
30.0
727
208
935
(28.0)
907
-26.7%
-6.9%
-23.1%
-20.6%
-23.1%
-25.2%
-7.8%
-21.7%
-20.0%
-21.7%
-13.2%
-2.5%
-10.9%
-14.7%
-10.8%
-9.5%
0.4%
-7.2%
13.8%
-7.8%
24.5%
22.6%
24.4%
24.9%
26.8%
26.5%
24.3%
25.9%
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3QA
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
(PJC est)
FY2012
(PJC est)
FY2013
(PJC est)
FY2014
FY2015E
FY2016E
763
225
988
(34.0)
954
761
253
1,014
(35.0)
979
729
240
969
(36.0)
933
703
208
911
(32.0)
879
681
212
893
(29.0)
864
705
233
938
(29.0)
909
690
230
920
(30.2)
890
765
209
974
(32.1)
942
762
226
988
(32.6)
955
777
242
1,019
(33.6)
985
720
232
952
(31.4)
921
1,836.4
712.7
484.0
262.6
317.2
3,613.0
937.0
4,550.0
(132.0)
4,418.0
1,468.6
616.8
463.2
142.4
229.0
2,920.0
898.0
3,818.0
(117.0)
3,701.0
1,527.8
640.3
422.5
151.2
238.2
2,980.0
920.0
3,900.0
(134.0)
3,766.0
1,722.8
610.9
144.5
98.3
202.5
2,778.9
883.2
3,662.1
(120.2)
3,541.9
1,845.3
659.7
151.7
103.2
263.2
3,023.2
909.7
3,932.9
(129.8)
3,803.1
1.7%
2.5%
1.9%
3.7%
1.8%
7.2%
0.4%
5.6%
21.4%
5.1%
-2.9%
6.3%
-0.8%
20.7%
-1.4%
2.8%
3.0%
2.9%
9.1%
2.6%
-3.3%
0.0%
-2.6%
14.3%
-3.1%
-10.7%
-5.8%
-9.6%
-14.7%
-9.4%
-7.4%
-7.9%
-7.5%
-17.1%
-7.2%
-5.4%
-4.1%
-5.1%
-16.2%
-4.6%
8.8%
0.6%
6.9%
0.4%
7.1%
11.9%
6.6%
10.6%
12.4%
10.6%
10.2%
3.9%
8.6%
15.9%
8.4%
4.3%
1.0%
3.5%
4.1%
3.5%
20.4%
-17.0%
-37.2%
-18.6%
-9.7%
-5.6%
-1.3%
-4.8%
-14.8%
-4.4%
-20.0%
-13.5%
-4.3%
-45.8%
-27.8%
-19.2%
-4.2%
-16.1%
-11.4%
-16.2%
4.0%
3.8%
-8.8%
6.2%
4.0%
2.1%
2.4%
2.1%
14.5%
1.8%
12.8%
-4.6%
-65.8%
-35.0%
-15.0%
-6.7%
-4.0%
-6.1%
-10.3%
-6.0%
7.1%
8.0%
5.0%
5.0%
30.0%
8.8%
3.0%
7.4%
8.0%
7.4%
24.4%
22.6%
25.6%
24.5%
25.5%
27.5%
24.5%
26.1%
25.3%
23.6%
24.5%
24.0%
25.4%
26.4%
24.8%
26.1%
25.3%
23.0%
25.2%
24.8%
25.7%
26.6%
23.8%
25.6%
Page 3 of 4
9
Piper Jaffray Co.
MERITOR Inc. (MTOR)
Alexander E. Potter
(612) 303-6709
Segment Analysis
Segment Analysis
Revenue by Segment
Segment EBITDA & EBIT
Total segment EBITDA
Unallocated costs, net
Adjusted EBITDA
Depreciation and Amortization
Other costs
EBIT
1Q
Dec-12
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3QA
Mar-15 Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
FY2013
FY2014
FY2015E FY2016E
715.0
203.0
(27.0)
891.0
712.0
224.0
(28.0)
908.0
784.0
238.0
(29.0)
993.0
709.0
227.0
(34.0)
902.0
727.0
202.0
(29.0)
900.0
763.0
225.0
(34.0)
954.0
761.0
253.0
(35.0)
979.0
729.0
240.0
(36.0)
933.0
703.0
208.0
(32.0)
879.0
681.0
212.0
(29.0)
864.0
705.0
233.0
(29.0)
909.0
689.9
230.2
(30.2)
889.9
764.6
209.3
(32.1)
941.8
762.2
225.9
(32.6)
955.5
776.6
242.0
(33.6)
985.0
719.8
232.4
(31.4)
920.8
3,613.0
937.0
(132.0)
4,418.0
2,920.0
892.0
(118.0)
3,694.0
2,980.0
907.0
(136.0)
3,751.0
2,778.9
883.2
(120.2)
3,541.9
3,023.2
909.7
(129.8)
3,803.1
34.0
13.0
47.0
(1.0)
46.0
(16.0)
(7.0)
23.0
37.0
22.0
59.0
(1.0)
58.0
(17.0)
(13.0)
28.0
67.0
25.0
92.0
(5.0)
87.0
(16.0)
(62.0)
9.0
54.0
24.0
78.0
(8.0)
70.0
(17.0)
58.0
111.0
53.0
21.0
74.0
(2.0)
72.0
(16.0)
(4.0)
52.0
57.0
24.0
81.0
(1.0)
80.0
(17.0)
(4.0)
59.0
55.0
28.0
83.0
(1.0)
82.0
(17.0)
206.0
271.0
53.0
34.0
87.0
(7.0)
80.0
(17.0)
63.0
56.0
25.0
81.0
(2.0)
79.0
(15.0)
(5.0)
59.0
57.0
30.0
87.0
87.0
(17.0)
(4.0)
66.0
58.0
31.0
89.0
(2.0)
87.0
(17.0)
(10.0)
60.0
49.7
30.4
80.1
(2.0)
78.1
(17.1)
(5.0)
56.0
68.1
27.8
95.9
(2.0)
93.9
(17.2)
(5.0)
71.7
70.9
30.3
101.2
(2.0)
99.2
(17.3)
(5.0)
76.9
74.6
32.2
106.7
(2.0)
104.7
(17.3)
(5.0)
82.4
66.2
31.1
97.4
(2.0)
95.4
(17.4)
(5.0)
72.9
270.0
81.0
351.0
(6.0)
345.0
(63.0)
(61.0)
221.0
192.0
84.0
276.0
(15.0)
261.0
(66.0)
(23.0)
172.0
218.0
112.0
330.0
(10.0)
320.0
(67.0)
198.0
445.0
220.7
116.4
337.1
(6.0)
331.1
(66.1)
(24.0)
241.0
279.7
121.4
401.2
(8.0)
393.2
(69.2)
(20.0)
304.0
EBITDA Margins
Adjusted EBITDA
EBIT
4.8%
6.4%
5.3%
5.2%
2.6%
5.2%
9.8%
6.5%
6.4%
3.1%
8.5%
10.5%
9.3%
8.8%
0.9%
7.6%
10.6%
8.6%
7.8%
12.3%
7.3%
10.4%
8.2%
8.0%
5.8%
7.5%
10.7%
8.5%
8.4%
6.2%
7.2%
11.1%
8.5%
8.4%
27.7%
7.3%
14.2%
9.3%
8.6%
6.8%
8.0%
12.0%
9.2%
9.0%
6.7%
8.4%
14.2%
10.1%
10.1%
7.6%
8.2%
13.3%
9.8%
9.6%
6.6%
7.2%
13.2%
9.0%
8.8%
6.3%
8.9%
13.3%
10.2%
10.0%
7.6%
9.3%
13.4%
10.6%
10.4%
8.0%
9.6%
13.3%
10.8%
10.6%
8.4%
9.2%
13.4%
10.6%
10.4%
7.9%
Incremental Margins
Commercial Truck & Industrial (y/y)
Aftermarket & Trailer (y/y)
Total Adjusted EBITDA (y/y)
Total Adjusted EBITDA (q/q)
10.4%
26.7%
12.3%
34.7%
15.8%
10.5%
14.7%
70.6%
3.4%
-50.0%
5.8%
34.1%
12.2%
-120.0%
10.7%
18.7%
158.3%
-800.0%
288.9%
-100.0%
39.2%
200.0%
47.8%
14.8%
52.2%
20.0%
35.7%
8.0%
-5.0%
76.9%
32.3%
4.3%
-12.5%
66.7%
-33.3%
1.9%
0.0%
-46.2%
-7.8%
-53.3%
-5.4%
-15.0%
-7.1%
0.0%
8.5%
36.9%
4.5%
46.8%
19.6%
218.1%
23.7%
30.5%
17.1%
2.0%
13.3%
38.4%
23.1%
13.2%
23.3%
18.9%
55.2%
34.0%
55.9%
14.6%
Meritor, Inc.
FY2012
7.5%
8.6%
7.9%
7.8%
5.0%
6.6%
9.4%
7.5%
7.1%
4.7%
7.3%
12.3%
8.8%
8.5%
11.9%
7.9%
13.2%
9.5%
9.3%
6.8%
9.3%
13.4%
10.5%
10.3%
8.0%
11.3%
-6.7%
11.6%
43.3%
186.7%
103.5%
-1.3%
-18.4%
-5.3%
24.2%
19.1%
23.8%
Page 4 of 9
5
Piper Jaffray Co.
MERITOR Inc. (MTOR)
Alexander E. Potter
(612) 303-6709
Balance Sheet
1Q
Dec-12
ASSETS
Cash and cash equivalents
Accounts receivable
Inventories
Other current assets
Total current assets
PP&E
Goodwill
Other assets
Total Assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, deferred revenues and other
Other current liabilities
Short-term debt (incl. curr. port. of LT debt)
Total current liabilities
Long term debt
Retirement benefits
Others
Total Liabilities
Total equity (deficit)
Noncontrolling interests
% sales analysis:
LTM sales
LTM COGS
AR
Inventory
AP as % of COGS
Net Working Capital as % of Sales
Meritor, Inc.
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3QA
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
139.0
483.0
463.0
56.0
1,141.0
407.0
433.0
360.0
2,341.0
117.0
555.0
420.0
54.0
1,146.0
395.0
427.0
369.0
2,337.0
228.0
596.0
411.0
51.0
1,286.0
384.0
427.0
380.0
2,477.0
318.0
596.0
414.0
56.0
1,384.0
417.0
434.0
335.0
2,570.0
300.0
534.0
432.0
57.0
1,323.0
410.0
436.0
328.0
2,497.0
233.0
618.0
436.0
58.0
1,345.0
410.0
437.0
339.0
2,531.0
303.0
644.0
441.0
56.0
1,444.0
411.0
439.0
516.0
2,810.0
247.0
610.0
379.0
56.0
1,292.0
424.0
431.0
355.0
2,502.0
214.0
511.0
379.0
58.0
1,162.0
407.0
423.0
354.0
2,346.0
207.0
545.0
365.0
55.0
1,172.0
387.0
414.0
344.0
2,317.0
345.0
530.0
365.0
52.0
1,292.0
393.0
420.0
348.0
2,453.0
364.5
506.5
361.3
52.0
1,284.2
410.6
420.0
348.0
2,462.9
364.3
515.5
367.7
52.0
1,299.4
414.6
420.0
348.0
2,482.0
366.6
528.5
377.0
52.0
1,324.2
418.9
420.0
348.0
2,511.1
374.9
539.4
384.8
52.0
1,351.0
423.7
420.0
348.0
2,542.7
379.0
543.8
387.9
52.0
1,362.8
427.0
420.0
348.0
2,557.8
597.0
297.0
23.0
917.0
1,032.0
1,070.0
333.0
3,352.0
616.0
297.0
25.0
938.0
1,030.0
1,056.0
327.0
3,351.0
657.0
328.0
23.0
1,008.0
1,144.0
1,043.0
341.0
3,536.0
694.0
339.0
13.0
1,046.0
1,125.0
886.0
335.0
3,392.0
651.0
323.0
12.0
986.0
1,126.0
875.0
318.0
3,305.0
696.0
345.0
6.0
1,047.0
1,082.0
868.0
316.0
3,313.0
715.0
351.0
5.0
1,071.0
1,086.0
861.0
319.0
3,337.0
680.0
351.0
7.0
1,038.0
965.0
775.0
309.0
3,087.0
597.0
292.0
5.0
894.0
962.0
759.0
307.0
2,922.0
618.0
281.0
5.0
904.0
945.0
737.0
301.0
2,887.0
611.0
303.0
18.0
932.0
1,079.0
729.0
304.0
3,044.0
614.4
303.0
18.0
935.4
1,061.5
729.0
313.0
3,038.9
625.5
303.0
18.0
946.5
1,044.0
729.0
314.0
3,033.5
642.0
303.0
18.0
963.0
1,026.5
729.0
315.0
3,033.5
656.3
303.0
18.0
977.3
1,009.0
729.0
316.0
3,031.3
661.7
303.0
18.0
982.7
991.5
729.0
317.0
3,020.2
(1,041.0)
30.0
(1,042.0)
28.0
(1,086.0)
27.0
(850.0)
28.0
(838.0)
30.0
(813.0)
31.0
(558.0)
31.0
(612.0)
27.0
(603.0)
27.0
(596.0)
26.0
(618.0)
27.0
(603.1)
27.0
(578.5)
27.0
(549.4)
27.0
(515.6)
27.0
(489.5)
27.0
4,150.0
3,688.0
11.6%
11.2%
16.2%
8.0%
3,898.0
3,475.0
14.2%
10.8%
17.7%
8.7%
3,778.0
3,378.0
15.8%
10.9%
19.4%
8.8%
3,694.0
3,308.0
16.1%
11.2%
21.0%
9.0%
3,703.0
3,295.0
14.4%
11.7%
19.8%
9.1%
3,749.0
3,318.0
16.5%
11.6%
21.0%
9.1%
3,735.0
3,289.0
17.2%
11.8%
21.7%
9.2%
3,766.0
3,279.0
16.2%
10.1%
20.7%
8.9%
3,745.0
3,248.0
13.6%
10.1%
18.4%
8.8%
3,655.0
3,161.0
14.9%
10.0%
19.6%
8.9%
3,585.0
3,091.0
14.8%
10.2%
19.8%
8.6%
3,541.9
3,072.2
14.3%
10.2%
20.0%
8.1%
3,604.6
3,127.5
14.3%
10.2%
20.0%
7.7%
3,696.1
3,209.8
14.3%
10.2%
20.0%
7.3%
3,772.1
3,281.7
14.3%
10.2%
20.0%
7.0%
3,803.1
3,308.7
14.3%
10.2%
20.0%
6.9%
Page 5 of 9
6
Piper Jaffray Co.
MERITOR Inc. (MTOR)
Alexander E. Potter
(612) 303-6709
Statement of Cash Flows
1Q
Dec-12
Cash flows from operating activities:
Net income (loss)
(16.0)
Depreciation and amortization
16.0
Exp assoc. with share-based comp, stock option Deferred income taxes
Other
32.0
Loss on sale of assets
Changes in assets and liabilities:
Receivables
59.0
Inventories
(25.0)
Accounts payable
(100.0)
Accrued expenses
Other assets and liabilities
(47.0)
Net cash provided by operating activities
(81.0)
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3QA
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16 Jun-16
4Q
Sep-16
FY2012
FY2013
FY2014
FY2015E
FY2016E
(4.0)
17.0
(97.0)
-
(37.0)
16.0
62.0
-
39.0
18.0
41.0
-
14.0
16.0
81.0
-
3.0
17.0
(44.0)
-
237.0
17.0
(203.0)
-
30.0
17.0
10.0
-
33.0
15.0
46.0
-
39.0
17.0
(114.0)
-
16.0
17.0
174.0
-
30.9
17.1
-
40.6
17.2
-
45.1
17.3
-
49.8
17.3
-
42.2
17.4
-
81.0
63.0
108.0
-
(18.0)
67.0
38.0
-
284.0
67.0
(156.0)
-
118.9
66.1
106.0
-
(72.0)
43.0
19.0
66.0
(28.0)
(41.0)
9.0
41.0
(14.0)
36.0
(3.0)
37.0
(140.0)
(8.0)
62.0
(18.0)
(43.0)
(116.0)
(4.0)
(84.0)
(4.0)
45.0
89.0
22.0
(26.0)
(5.0)
19.0
46.0
85.0
34.0
62.0
(35.0)
(6.0)
112.0
99.0
(83.0)
(119.0)
(9.0)
(34.0)
14.0
21.0
95.0
38.0
15.0
(7.0)
(122.0)
93.0
23.5
3.7
3.4
8.0
86.7
(9.0)
(6.4)
11.1
53.5
(13.1)
(9.3)
16.5
56.4
(10.9)
(7.8)
14.4
62.9
(4.4)
(3.2)
5.4
57.4
170.0
22.0
(144.0)
(211.0)
89.0
(54.0)
24.0
(3.0)
(135.0)
(81.0)
(14.0)
35.0
(14.0)
13.0
215.0
103.5
17.7
(65.6)
(138.0)
208.7
177.6
69.2
(37.4)
(26.6)
47.3
230.1
(15.0)
(15.0)
(8.0)
6.0
(2.0)
(8.0)
(5.0)
(13.0)
(23.0)
1.0
182.0
1.0
161.0
(12.0)
(12.0)
(13.0)
3.0
(10.0)
(14.0)
(14.0)
(38.0)
4.0
(34.0)
(12.0)
(12.0)
(11.0)
4.0
(7.0)
(22.0)
4.0
(18.0)
(34.7)
(34.7)
(21.2)
(21.2)
(21.5)
(21.5)
(22.2)
(22.2)
(20.7)
(20.7)
(89.0)
18.0
3.0
(68.0)
(54.0)
1.0
182.0
2.0
131.0
(77.0)
7.0
(70.0)
(79.7)
4.0
4.0
(71.7)
(85.6)
(85.6)
Cash flows from financing activities:

Principal payment on debt
(233.0)
Proceeds from debt
225.0
Dividend
Issuance of common stock
Repurchase of common stock
Others
(4.0)
Net cash provided (used) by financing activities (12.0)
(3.0)
(3.0)
(191.0)
275.0
2.0
86.0
(48.0)
1.0
(47.0)
(4.0)
3.0
(1.0)
(304.0)
225.0
1.0
(78.0)
(3.0)
(3.0)
(131.0)
1.0
(130.0)
(4.0)
(4.0)
(16.0)
(16.0)
(2.0)
(34.0)
(143.0)
225.0
(4.0)
(14.0)
(1.0)
63.0
(17.5)
(15.0)
(32.5)
(17.5)
(15.0)
(32.5)
(17.5)
(15.0)
(32.5)
(17.5)
(15.0)
(32.5)
(17.5)
(15.0)
(32.5)
(86.0)
100.0
(12.0)
2.0
(475.0)
500.0
(1.0)
24.0
(439.0)
225.0
2.0
(212.0)
(159.0)
207.5
(4.0)
(45.0)
(7.0)
(7.5)
(70.0)
(60.0)
(130.0)
Effect of exchange rate changes

Discontinued Operations - net cash used
(10.0)
1.0
10.0
(4.0)
6.0
(1.0)
(15.0)
(1.0)
(3.0)
(1.0)
3.0
2.0
-
(4.0)
-
(8.0)
-
(4.0)
-
1.0
16.0
(4.0)
(9.0)
(4.0)
-
(12.0)
-
(118.0)
(22.0)
111.0
90.0
(21.0)
(64.0)
70.0
(56.0)
(33.0)
(7.0)
138.0
19.5
(0.2)
2.4
8.2
4.2
40.0
61.0
(71.0)
117.5
14.5
(96.0)
39.0
(36.0)
45.0
28.0
25.0
(31.0)
129.0
(16.0)
68.0
9.0
76.0
71.0
288.0
74.0
80.0
(21.0)
74.0
27.0
83.0
71.0
77.0
52.0
73.1
32.3
88.9
34.9
94.2
40.7
99.7
36.7
90.4
236.0
(135.0)
238.0
138.0
512.0
129.0
307.1
144.5
373.2
Cash flows from investing activities:

Cash payments for PPE
Proceeds from sale PPE
Acquisitions, net of cash
Other
Net cash used by investing activities
Net increase (decrease) in cash

Free cash flow - before acquisitions
EBITDA
Meritor, Inc.
Page 6 of 7
9
Piper Jaffray Co.
MERITOR Inc. (MTOR)
Alexander E. Potter
(612) 303-6709
Financial Ratios
1Q
WORKING CAPITAL MGMT
DSO
DIO
DPO
CCC
Inventory Turns
Payables Turns
Recivable Turns
LEVERAGE
Debt to EBITDA
Interest Coverage
Net Cash
RETURNS
ROS
ROE
ROA
ROIC
52.4
46.2
72.2
26.4
7.9
5.1
7.0
FY2013
2Q
3Q
58.2
46.8
76.5
28.5
7.8
4.8
6.3
FY16E
0%
0%
0%
0.0%
2.3%
14.4%
3.3%
5.0%
4.2%
17.0%
6.2%
7.9%
5.7%
16.5%
8.1%
9.0%
6.6%
18.8%
10.0%
10.6%
58%
50%
55%
62%
49%
52%
62%
59%
11%
12%
12%
0%
0%
0%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
16.00 14.00 15.00 15.00 15.00 15.00 15.00
N/M
0.0%
0.0%
0.00
0.00
0.00
-40.0%
-23.0%
0.0%
0.00
0.00
0.00
55.8%
15.0%
0.0%
0.00
0.00
0.00
61.8%
59.2%
0.00
0.00
45.00
0.00
0.00
60.00
CASH MANAGEMENT
CAPEX/FCF
-100% -135% -74% -40% -93% -560% 188%
FCF Yield
-15% -10% -15% -24%
-8%
-1%
3%
Dividend Yield
0%
0%
0%
0%
0%
0%
0%
Dividend (total) ($USD)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Dividend Per Share ($USD)
Share Buybacks ($USD)
-
56%
13%
0%
0.0
-
Meritor, Inc.
FY15E
7%
-46%
10%
11%
6%
-35%
9%
9%
6%
-37%
9%
9%
50.7
41.3
70.1
21.9
8.8
5.2
7.2
FY14
194%
280%
4.2
-630
6%
-33%
8%
9%
51.9
41.8
70.8
22.9
8.7
5.2
7.0
FY13
227%
334%
3.0
-715
0%
-1%
0%
0%
52.8
42.9
71.6
24.2
8.5
5.1
6.9
FY12
270%
204%
4.0
-725
6%
-34%
9%
9%
55.7
43.9
74.1
25.5
8.3
4.9
6.6
4Q
395%
462%
1.9
-820
5%
-26%
7%
8%
57.8
45.6
76.1
27.3
8.0
4.8
6.3
FY2016E
2Q
3Q
2865%
355%
3.1
-803
4%
-21%
6%
7%
58.5
46.2
76.3
28.3
7.9
4.8
6.2
1Q
196% 197% 197% 172% 171% 171% 140% 154% 154% 155% 151% 150% 148% 145% 142% 139%
3.3x
3.8x
4.0x
4.2x
3.9x
3.6x
3.7x
3.5x
3.3x
3.1x
3.0x
3.1x
3.0x
2.9x
2.8x
2.7x
1.3
1.8
0.6
4.8
2.5
1.6
13.1
-3.9
3.9
4.0
2.0
3.2
4.0
4.2
4.5
4.1
-1,986 -1,994 -1,982 -1,706 -1,713 -1,723 -1,649 -1,500 -1,512 -1,480 -1,481 -1,444 -1,427 -1,407 -1,381 -1,359
9%
-43%
14%
17%
56.9
46.5
75.0
28.3
7.9
4.9
6.4
4Q
50.4
41.3
70.4
21.3
8.8
5.2
7.2
3%
-11%
4%
5%
58.4
47.4
75.8
30.0
7.7
4.8
6.3
FY2015E
2QA
3QA
57.5
44.0
76.9
24.6
8.3
4.7
6.3
1%
-5%
2%
3%
56.4
46.5
72.9
30.0
7.9
5.0
6.5
1QA
58.7
44.4
76.9
26.2
8.2
4.7
6.2
2%
-8%
3%
5%
54.5
47.4
71.2
30.7
7.7
5.1
6.7
4QA
56.2
47.0
76.7
26.5
7.8
4.8
6.5
1%
-5%
2%
3%
54.8
47.4
72.0
30.2
7.7
5.1
6.7
FY2014A
2QA
3QA
51.8
41.7
71.4
22.1
8.8
5.1
7.0
3%
-11%
5%
7%
54.5
47.4
72.2
29.7
7.7
5.1
6.7
1QA
50.6
41.4
70.6
21.4
8.8
5.2
7.2
5%
-19%
8%
13%
54.8
47.7
73.4
29.1
7.6
5.0
6.7
4Q
6%
-42%
10%
10%
Page 7 of 8
9
COMPANY NOTE
July 29, 2015
IMPORTANT RESEARCH DISCLOSURES
Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target. Each
box represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first Note
written during the past three years.
Legend:
I: Initiating Coverage
R: Resuming Coverage
T: Transferring Coverage
D: Discontinuing Coverage
S: Suspending Coverage
OW: Overweight
N: Neutral
UW: Underweight
NA: Not Available
UR: Under Review
Distribution of Ratings/IB Services
Piper Jaffray
IB Serv./Past 12 Mos.
Rating
Count
Percent
Count
Percent
BUY [OW]
427
60.06
103
24.12
HOLD [N]
266
37.41
13
4.89
18
2.53
0.00
SELL [UW]
Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its affiliates
received compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings most closely
correspond with "buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but instead represent
recommended relative weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and Underweight with sell. See
Stock Rating definitions below.
Analyst Certification Alexander E. Potter, Sr Research Analyst

Analyst Certification Winnie Dong, Research Analyst
The views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part of
my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.
Meritor, Inc.
Page 8 of 9
9
COMPANY NOTE
July 29, 2015
Research Disclosures
Piper Jaffray was making a market in the securities of Meritor, Inc. at the time this research report was published. Piper Jaffray will buy and sell
Meritor, Inc. securities on a principal basis.
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Stock Ratings: Piper Jaffray ratings are indicators of expected total return (price appreciation plus dividend) within the next 12 months. At times
analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks. Stock performance
is measured relative to the group of stocks covered by each analyst. Lists of the stocks covered by each are available at www.piperjaffray.com/
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Copyright 2015 Piper Jaffray. All rights reserved.
Meritor, Inc.
Page 9 of 10
9
July 29, 2015
INDUSTRIAL: Construction & Farm Machinery & Heavy

Trucks (Ind'l)
Earnings Recap / Estimates Change
Meritor, Inc.
Brett D. Hoselton, CFA / (216) 689-0237
MTOR: Increasingly Optimistic on LT EBITDA

Margin Potential
ihodakovsky@key.com
bhoselton@key.com
Maintaining SW: 1) we are increasingly optimistic the next 3-year plan to be

announced in December could introduce an EBITDA margin target as high as
12%; 2) FY15 FCF guidance increased 10% to $110M, and we believe annual
FCF of $100M+ is sustainable into 2016 and will fund small bolt-on acquisitions
and share repurchases; and 3) mixed end markets outlook keeps us on the
sidelines as strong North American outlook and a stable Europe are offset by
challenging China and South American commercial vehicle outlook.
Key Investment Points
Following 3Q15 earnings release and conference call, we are maintaining our SW rating:
1) We are increasingly optimistic the next 3-year plan to be announced in December
could introduce an EBITDA margin target as high as 12%. We are incrementally
confident MTOR will meet the M16 EBITDA margin objective of 10.0%. Management
is now preparing the next 3-year plan to be announced in December. The new margin
objective could be as high as 12% as competition in the on-highway and off-highway
markets, ~75% of MTOR mix, averages 10-14%, and MTOR's remaining 25% of sales,
Aftermarket & Trailer, runs at 13%+ with upside potential.
2) FY15 FCF guidance increased 10% to $110M, and we believe annual FCF of
$100M+ is sustainable into 2016 and will fund small bolt-on acquisitions and
share repurchases. NOLs, valued at $1.50-$2.00/share based on our calculations,
are expected to provide a cash tax shield of $25M-$30M annually for an estimated 10
years. We expect capital deployment will continue to be allocated to share buybacks and
potentially small bolt-on acquisitions as M16 balance sheet objectives have been met.
$161M remains outstanding under the current buyback authorization, which expires at
the end of 2016.
3) Mixed end markets outlook keeps us on the sidelines as strong North American
outlook and a stable Europe are offset by challenging China and South American
commercial vehicle outlook. North American commercial vehicle outlook is strong, and
management increased FY15 guidance to 325K from prior 305K-315K, in line with the
industry average. A run rate above 300K is expected to continue into FY16. European
production outlook continues, stable with positive indicators. China's outlook deteriorated,
and management lowered its guidance to -35% from prior -20%, in line with consensus.
The South American outlook deteriorated, and management lowered its guidance to
85K-90K units from prior 90K-100K.
Irina Hodakovsky / (216) 689-5374

Anthony Deem / (216) 689-0294
adeem@key.com
NYSE: MTOR
Rating:
Price Target:
Price:
Sector Weight
NA
$13.79
17
16
15
14
13
12
11
10
Sep-14
Nov-14
Jan-15
Mar-15
Vol (mil)
May-15
Jul-15
MTOR
Sources: Company reports, FactSet, KeyBanc Capital

Markets Inc.
Company Data
52-week range
$9 - $16
Market Cap. (M)
$1,396.9
Shares Out. (M)
101.30
Enterprise Value (M)

Avg. Daily Volume (30D)
SI as % of Float
SI % Chg. from Last Per.
Book Value/Share
$2,160.9
1,148,890.0
5.2%
(27.6)%
$(5.87)
Total Debt/Cap
Cash (mm)
NA
$247.0

Markets Inc.
Estimates
FY ends 9/30
F2014A
1Q15A
2Q15A
3Q15A
4Q15E
F2015E
F2016E
EPS (Net)
$0.96
$0.35
$0.41
$0.41
$0.29
$1.46
$1.76
Cons. EPS
--
$0.35
$0.41
$0.33
$0.29
$1.39
$1.67
Previous
--
--
--
$0.34
$0.30
$1.40
$1.69
14.4x
--
--
--
--
9.4x
7.8x
--
--
--
--
--
6.6x
6.0x
Valuation
P/E
EV/EBITDA
Sources: Company reports, FactSet, KeyBanc Capital Markets Inc.
For analyst certification and important disclosures, please refer to the Disclosure Appendix.
KeyBanc Capital Markets Inc. | Member NYSE/FINRA/SIPC
11
Meritor - MTOR
Earnings Recap
Valuation
MTOR is currently trading at an EV/EBITDA of 5.7x our 2015 EBITDA estimate of $327M. From 2005-2009,
MTOR has traded at an average EV/EBITDA of 5.5x. MTOR is currently trading at 9.4x our 2015 EPS estimate
of $1.46. From 2005-2009, MTOR has traded at an average 12-month forward P/E of 9x.
Investment Risks
We believe the largest risk to our earnings is a decline in global vehicle production.
Estimate Revisions
We are maintaining our FY15 EBITDA estimate at $327M (FactSet consensus $320M) and our FY16 EBITDA
estimate at $360M (FactSet consensus $359M), and we are increasing our FY15 EPS estimate to $1.46 from
$1.40 (FactSet consensus $1.39) and our FY16 EPS estimate to $1.79 from $1.69 (FactSet consensus $1.67)
on lower interest expense outlook.
July 29, 2015

Brett D. Hoselton
Pg.2
(216) 689-0237 / bhoselton@key.com
12
Meritor - MTOR
Earnings Recap
Meritor, Inc. Earnings Brett D. Hoselton, CFA (216) 689-0237

($ in millions, except per share data; FY ends September 30)
1Q14
2Q14
3Q14
4Q14
2014
1Q15
2Q15
3Q15
4Q15E
2015E
2016E
112
6%
114
18%
2.5%
-30.0%
0.0%
1.5%
1.5%
$136.13
118
18%
89
9%
3.6%
-50.0%
0.0%
1.5%
1.5%
$137.03
133
10%
95
8%
8.8%
-70.0%
1.5%
1.5%
1.5%
$136.00
137
20%
95
9%
3.0%
-70.0%
1.5%
1.5%
1.5%
$132.51
500
14%
394
11%
4.5%
-55.0%
0.8%
1.5%
1.5%
$135.42
135
21%
118
3%
0.0%
-50.0%
1.5%
1.0%
1.0%
$124.86
137
16%
100
12%
-8.6%
-50.0%
1.5%
1.0%
1.0%
$112.65
147
10%
100
5%
-10.0%
-50.0%
0.0%
1.0%
1.0%
$110.65
144
5%
97
2%
-10.0%
-50.0%
0.0%
1.0%
1.0%
$110.00
563
13%
414
5%
-7.2%
-50.0%
0.8%
1.0%
1.0%
$114.54
545
-3%
416
0%
3.0%
0.0%
2.5%
5.5%
1.0%
$110.00
$891.0
19.6
(13.7)
(14.8)
9.9
15.0
$907
$908.0
30.0
(14.1)
5.2
7.9
25.0
$962
$993.0
2.1
(14.9)
14.9
9.0
(18.1)
$986
$909.0
21.0
(14.0)
14.0
(0.0)
3.0
$933
$3,701.0
72.8
(56.6)
19.2
26.8
0.0
24.8
$3,788
$907.0
27.4
(9.3)
9.3
(17.0)
(38.4)
$879
$962.0
4.1
(9.7)
9.7
(37.8)
(64.3)
$864
$986.0
(31.8)
(9.5)
9.5
(39.1)
(6.1)
$909
$933.0
(50.5)
(8.8)
8.8
(33.0)
0.0
$850
$3,788.0
(50.8)
(37.4)
37.4
(126.9)
0.0
(108.8)
$3,502
$3,501.6
2.5
(35.0)
192.7
(30.6)
0.0
$3,631
$798.2
5.8
804.0
103.0
68.0
(9.0)
59.0
1.0
43.0
$846.6
(0.6)
846.0
116.0
72.2
(6.1)
66.0
0.0
50.0
$867.7
(4.7)
863.0
123.0
74.0
(20.0)
54.0
1.0
68.0
$821.0
(28.0)
793.0
140.0
70.0
8.0
78.0
0.0
62.0
$3,333.4
(27.4)
3,306.0
482.0
284.1
(27.1)
257.0
2.0
223.0
$769.1
(5.1)
764.0
115.0
61.5
3.5
65.0
(1.0)
51.0
$756.0
(7.0)
749.0
115.0
60.5
(3.5)
57.0
0.0
58.0
$795.4
(10.4)
785.0
124.0
63.6
1.4
65.0
(1.0)
60.0
$743.4
(5.5)
737.9
111.7
59.5
(2.0)
57.5
0.0
54.2
$3,063.9
(28.0)
3,035.9
465.7
245.1
(0.6)
244.5
(2.0)
223.2
$3,159.1
(24.0)
3,135.1
496.0
254.2
(10.0)
244.2
0.0
251.9
Interest Exp. (Inc.), Net

Equity & Other (Inc.) Exp.
Inc. Before Tax
27.0
(8.0)
24.0
27.0
(9.0)
32.0
22.0
7.0
39.0
33.0
(10.0)
39.0
109.0
(20.0)
134.0
19.0
(11.0)
43.0
21.0
(11.0)
48.0
19.0
(9.0)
50.0
19.0
0.0
35.2
78.0
(31.0)
176.2
76.0
(30.0)
205.9
Taxes
Minority Interest
Net Income, Recurring
10.0
2.0
12.0
9.0
2.0
21.0
11.0
0.0
28.0
3.0
1.0
35.0
33.0
5.0
96.0
7.0
1.0
35.0
6.0
0.0
42.0
8.0
1.0
41.0
5.5
1.0
28.8
26.5
3.0
146.8
34.0
3.1
168.8
Nonrecurring Items
Discontinued Ops
Net Income, Reported
$12.0
(20.0)
0.0
$1.0
208.0
(2.0)
$234.0
(6.0)
(26.0)
$3.0
(3.0)
(3.0)
$29.0
(3.0)
4.0
$43.0
(26.0)
(2.0)
$13.0
$28.8
(32.0)
(1.0)
$113.8
$168.8
98.7
98.7
97.6
97.6
101.1
101.1
101.3
101.3
99.7
99.7
101.2
101.2
102.9
102.9
100.3
100.3
98.4
98.4
100.7
100.7
96.0
96.0
EPS, Dil., Recurring

EPS, Dil., Reported
$0.12
$0.12
$0.22
$0.01
$0.28
$2.31
$0.35
$0.03
$0.96
$2.51
$0.35
$0.29
$0.41
$0.42
$0.41
$0.13
$0.29
$0.29
$1.46
$1.13
$1.76
$1.76
Adjusted EBITDA,
EBITDA/Share
$70.0
$0.72
$78.0
$0.80
$80.0
$0.82
$80.0
$0.82
$308.0
$3.09
$79.0
$0.79
$87.0
$0.87
$87.0
$0.87
$74.2
$0.74
$327.2
$3.25
$360.3
$3.75
Revenue Assumptions
NA Prd-M/H Trk (000)
Year/Year % Chg.
Europe-M/H Trk (000)
Year/Year % Chg.
Aftermarket
Military
ROW
Organic Growth
Price Reductions
FX-Euro ($/100)
Revenue Calculation
Ttl. Sgmt. Prior Year
Prod/Demand Chg
Pricing
Org Growth, Mix, etc.
FX-Euro
LVS & Other Divestitures
Other
Sales
Gross Profit Calculation
COGS-Estimate
COGS-Adjustment
COGS-Total
Gross Profit
SG&A-Estimate
SG&A-Adjustment
SG&A-Total
Amortization & Other
Operating Income
Avg. Shrs Out., Basic (Mil.)

Avg. Shrs Out., Diluted (Mil.)
Memo: Pro Forma FASB 142

Estimated Goodwill Adj.
EPS, Dil., Post Adjustment
% of Sales
Gross Margin
SG&A
Operating Margin
Net Margin
Adjusted EBITDA
Tax Rate
% Change Year-Over-Year
Sales
Operating Income
Net Income
EPS, Diluted, Recurring
182.0
(28.0)
$250.0
11.4%
6.6%
4.7%
1.3%
7.7%
41.7%
12.1%
6.9%
5.2%
2.2%
8.1%
28.1%
12.5%
5.6%
6.9%
2.8%
8.1%
28.2%
15.0%
8.4%
6.6%
3.8%
8.6%
7.7%
12.7%
6.8%
5.9%
2.5%
8.1%
24.6%
13.1%
7.3%
5.8%
4.0%
9.0%
16.3%
13.3%
6.6%
6.7%
4.9%
10.1%
12.5%
13.6%
7.0%
6.6%
4.5%
9.6%
16.0%
13.1%
6.8%
6.4%
3.4%
8.7%
15.5%
13.3%
6.9%
6.4%
4.2%
9.3%
15.0%
13.7%
6.7%
6.9%
4.6%
9.9%
16.5%
1.8%
115.0%
5.9%
72.4%
250.0%
248.6%
-0.7%
25.9%
-15.2%
-18.4%
2.6%
-38.0%
218.2%
210.0%
2.4%
9.9%
146.2%
140.0%
-3.1%
18.6%
191.7%
184.5%
-10.2%
16.0%
100.0%
89.7%
-7.8%
-11.8%
46.4%
47.6%
-8.9%
-12.5%
-17.8%
-15.4%
-7.6%
0.1%
52.9%
51.3%
3.7%
12.8%
15.0%
20.7%
Source: Company data; KeyBanc Capital Markets Inc. estimates.
July 29, 2015

Brett D. Hoselton
Pg.3
13
Meritor - MTOR
Earnings Recap

Revenue Assumptions
Year/Year % Chg.
Year/Year % Chg.
Aftermarket
Military
ROW
Organic Growth
Price Reductions
FX-Euro ($/100)
Revenue Calculation
Prod/Demand Chg
Pricing
FX-Euro
Other
Sales
COGS-Estimate
COGS-Adjustment
COGS-Total
Gross Profit
SG&A-Estimate
SG&A-Adjustment
SG&A-Total
Operating Income
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015E
2016E
463
32%
376
3%
0.0%
$121.70
582
26%
421
12%
0.0%
$125.47
621
7%
439
4%
0.0%
$123.08
484
-22%
479
9%
0.0%
$132.55
377
-22%
562
17%
0.0%
$150.31
231
-39%
266
-53%
0.0%
$135.47
257
11%
260
-2%
2.0%
-13.8%
37.0%
-1.7%
1.5%
$135.65
381
48%
383
47%
2.0%
-2.5%
10.0%
-2.4%
1.5%
$139.46
476
25%
379
-1%
0.0%
28.0%
-20.0%
-4.8%
1.5%
$129.84
440
-7%
354
-7%
0.0%
-33.8%
0.7%
-0.5%
1.5%
$131.22
500
14%
394
11%
4.5%
-55.0%
0.8%
1.5%
1.5%
$135.42
563
13%
414
5%
-7.2%
-50.0%
0.8%
1.0%
1.0%
$114.54
545
-3%
416
0%
3.0%
0.0%
2.5%
5.5%
1.0%
$110.00
$6,882
$7,788
$8,836
$8,903
$9,150
$7,221
$7,167
(965.0)
$4,457
$4,457.0
673.5
(77.0)
(83.8)
3.3
(389.0)
0.0
$4,584
$4,584.0
1,271.9
(87.8)
(150.5)
43.4
(994.0)
0.0
$4,667
$4,667.0
318.0
(74.8)
(240.9)
(76.3)
(45.0)
(130.0)
$4,418
$4,418.0
(351.1)
(61.0)
(19.8)
9.8
0.0
(295.0)
$3,701
$3,701.0
72.8
(56.6)
19.2
26.8
0.0
24.8
$3,788
$3,788.0
(50.8)
(37.4)
37.4
(126.9)
0.0
(108.8)
$3,502
$3,501.6
2.5
(35.0)
192.7
(30.6)
0.0
$3,631
6,130.0
752.0
400.0
352.0
7,064.0
724.0
435.0
289.0
8,072.0
764.0
471.0
293.0
$8,197.8
70.2
8,263.0
640.0
391.3
(2.3)
394.0
246.0
$8,511.8
7.2
8,519.0
631.0
381.4
(1.4)
380.0
251.0
$6,695.7
14.3
6,710.0
511.0
370.6
15.4
386.0
125.0
$6,644.8
(130.8)
6,514.0
653.0
370.3
67.7
438.0
215.0
$4,093.4
42.6
4,136.0
321.0
355.1
(45.1)
310.0
11.0
$4,212.9
(128.9)
4,084.0
500.0
355.8
(9.8)
346.0
154.0
$4,107.0
86.0
4,193.0
474.0
294.6
(12.6)
282.0
192.0
$3,887.8
45.2
3,933.0
485.0
257.4
9.6
267.0
4.0
214.0
$3,256.9
39.1
3,296.0
405.0
214.7
39.3
254.0
(52.0)
203.0
$3,333.4
(27.4)
3,306.0
482.0
284.1
(27.1)
257.0
2.0
223.0
$3,063.9
(28.0)
3,035.9
465.7
245.1
(0.6)
244.5
(2.0)
223.2
$3,159.1
(24.0)
3,135.1
496.0
254.2
(10.0)
244.2
0.0
251.9

Inc. Before Tax
105.0
3.0
244.0
104.0
(24.0)
209.0
107.0
(10.0)
196.0
127.0
(28.0)
147.0
124.0
(36.0)
163.0
104.0
(36.0)
57.0
89.0
(43.9)
169.9
88.0
(19.0)
(58.0)
99.0
(46.0)
101.0
95.0
(73.0)
170.0
95.0
(59.0)
178.0
107.0
(19.0)
115.0
109.0
(20.0)
134.0
78.0
(31.0)
176.2
76.0
(30.0)
205.9
Taxes
Minority Interest
78.0
11.0
155.0
68.0
5.0
136.0
53.4
10.0
132.6
34.0
3.0
110.0
33.0
12.0
118.0
5.0
15.0
37.0
37.9
15.0
117.0
48.0
(3.0)
(103.0)
62.0
14.0
25.0
77.0
17.0
76.0
56.0
11.0
111.0
74.0
2.0
39.0
33.0
5.0
96.0
26.5
3.0
146.8
34.0
3.1
168.8
Nonrecurring Items
Discontinued Ops
(48.0)
$107.0
$136.0
(172.6)
($40.0)
(98.0)
$12.0
(293.0)
($175.0)
(10.0)
$15.0
(23.0)
$53.0
(59.0)
$52.0
(57.0)
($18.0)
(32.0)
(1.0)
$113.8
$168.8
87.2
87.2
96.8
96.8
97.2
97.2
97.2
97.2
99.7
99.7
100.7
100.7
96.0
96.0

EPS, Dil., Reported
Adjusted EBITDA,
EBITDA/Share
% of Sales
Gross Margin
SG&A
Operating Margin
Net Margin
Adjusted EBITDA
Tax Rate
Sales
Operating Income
Net Income
(191.4)
($154.4)
(208.0)
($91.0)
(1,109.0)
($1,212.0)
72.6
72.6
182.0
(28.0)
$250.0
67.2
67.2
67.9
67.9
68.6
68.6
69.9
69.9
69.3
69.3
71.1
71.1
72.4
72.4
$2.31
$1.59
$2.00
$2.00
$1.93
($0.58)
$1.57
$0.17
$1.69
($2.51)
$0.52
($2.17)
$1.60
($1.26)
($1.42)
($16.70)
$0.29
$0.17
$0.79
$0.55
$1.14
$0.53
$0.40
($0.19)
$0.96
$2.51
$1.46
$1.13
$1.76
$1.76
$534.0
$7.95
$522.0
$7.69
$476.0
$6.94
$453.0
$6.48
$447.0
$6.45
$275.0
$3.87
$388.9
$5.37
$114.0
$1.57
$266.0
$3.05
$342.0
$3.53
$345.0
$3.55
$261.0
$2.69
$308.0
$3.09
$327.2
$3.25
$360.3
$3.75
10.9%
5.8%
5.1%
2.3%
7.8%
32.0%
9.3%
5.6%
3.7%
1.7%
6.7%
32.5%
8.6%
5.3%
3.3%
1.5%
5.4%
27.2%
7.2%
4.4%
2.8%
1.2%
5.1%
23.1%
6.9%
4.2%
2.7%
1.3%
4.9%
20.2%
7.1%
5.3%
1.7%
0.5%
3.8%
8.8%
9.1%
6.1%
3.0%
1.6%
5.4%
22.3%
7.2%
7.0%
0.2%
2.6%
-82.8%
10.9%
7.5%
3.4%
0.5%
5.8%
61.4%
10.2%
6.0%
4.1%
1.6%
7.3%
45.3%
11.0%
6.1%
4.8%
2.5%
7.8%
31.5%
10.9%
5.5%
5.5%
1.1%
7.1%
64.3%
12.7%
6.8%
5.9%
2.5%
8.1%
24.6%
13.3%
6.9%
6.4%
4.2%
9.3%
15.0%
13.7%
6.7%
6.9%
4.6%
9.9%
16.5%
1.1%
26.2%
69.7%
67.3%
13.2%
-17.9%
-12.3%
-13.2%
13.5%
1.4%
-2.5%
-3.5%
0.8%
-16.0%
-17.0%
-18.6%
2.8%
2.0%
7.3%
7.6%
-21.1%
-50.2%
-68.6%
-69.2%
-0.7%
72.0%
216.2%
207.6%
-37.8%
-94.9%
-188.0%
-188.6%
2.8%
1300.0%
1.8%
24.7%
204.0%
173.9%
-5.3%
11.5%
46.1%
45.4%
-16.2%
-5.1%
-64.9%
-64.9%
2.4%
9.9%
146.2%
140.0%
-7.6%
0.1%
52.9%
51.3%
3.7%
12.8%
15.0%
20.7%
July 29, 2015

Brett D. Hoselton
Pg.4
14
Meritor - MTOR
Earnings Recap
Meritor, Inc. Balance Sheet Brett D. Hoselton, CFA (216) 689-0237

2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015E
2016E
Cash & Equivalents

Accounts Receivable
Inventories
Other Current Assets
Total Current Assets
$56.0
1,251.0
458.0
211.0
1,976.0
$103.0
1,327.0
543.0
266.0
2,239.0
$132.0
1,478.0
523.0
218.0
2,351.0
$187.0
1,655.0
541.0
787.0
3,170.0
$350.0
1,645.0
596.0
502.0
3,093.0
$409.0
1,223.0
541.0
216.0
2,389.0
$497.0
1,114.0
623.0
218.0
2,452.0
$95.0
694.0
374.0
97.0
1,260.0
$343.0
579.0
382.0
417.0
1,721.0
$217.0
712.0
460.0
70.0
1,459.0
$257.0
542.0
438.0
61.0
1,298.0
$318.0
596.0
414.0
56.0
1,384.0
$247.0
610.0
379.0
56.0
1,292.0
$508.8
563.9
348.0
56.0
1,476.7
$642.3
584.7
359.4
56.0
1,642.4
Property, Plant & Equip.-Net

Goodwill - Net
Other Assets
Total Assets
1,179.0
808.0
688.0
$4,651
1,332.0
951.0
731.0
$5,253
1,032.0
808.0
1,369.0
$5,560
1,013.0
801.0
886.0
$5,870
988.0
503.0
929.0
$5,513
738.0
520.0
1,142.0
$4,789
775.0
522.0
925.0
$4,674
445.0
438.0
365.0
$2,508
389.0
432.0
337.0
$2,879
421.0
431.0
352.0
$2,663
417.0
433.0
353.0
$2,501
417.0
434.0
335.0
$2,570
424.0
431.0
355.0
$2,502
447.5
431.0
205.0
$2,560
471.0
431.0
205.0
$2,749
Short-term Debt
Accounts Payable
Other Current Liabilities
Total Current Liabilities
$15.0
1,150.0
578.0
1,743.0
$20.0
1,311.0
547.0
1,878.0
$3.0
1,366.0
602.0
1,971.0
$131.0
1,483.0
909.0
2,523.0
$56.0
1,649.0
844.0
2,549.0
$18.0
1,342.0
719.0
2,079.0
$240.0
1,287.0
610.0
2,137.0
$97.0
674.0
518.0
1,289.0
670.0
720.0
1,390.0
$84.0
841.0
328.0
1,253.0
$18.0
697.0
313.0
1,028.0
$13.0
694.0
339.0
1,046.0
$7.0
680.0
351.0
1,038.0
$7.0
624.4
351.0
982.4
$7.0
644.8
351.0
1,002.8
Long-term Debt
Preferred Securities
Other Long-term Liabilities
Shareholders' Equity
Total Liab. & Shr. Eqty.
1,435.0
39.0
635.0
799.0
$4,651
1,541.0
39.0
832.0
963.0
$5,253
1,487.0
39.0
1,075.0
988.0
$5,560
1,451.0
58.0
963.0
875.0
$5,870
1,184.0
0.0
771.0
1,009.0
$5,513
1,130.0
0.0
1,037.0
543.0
$4,789
1,063.0
1,012.0
462.0
$4,674
1,080.0
1,416.0
(1,277.0)
$2,508
1,029.0
1,483.0
(1,023.0)
$2,879
950.0
1,421.0
(961.0)
$2,663
1,042.0
1,413.0
(982.0)
$2,501
1,125.0
1,221.0
(822.0)
$2,570
965.0
1,084.0
(585.0)
$2,502
965.0
1,084.0
(471.2)
$2,560
965.0
1,084.0
(302.4)
$2,749
13.4
6.2
1.5
14.1
6.0
1.6
15.1
6.3
1.6
15.5
5.7
1.6
15.0
5.5
1.6
11.8
5.0
1.4
11.2
6.1
1.5
8.3
4.9
1.2
10.8
7.2
1.7
10.0
7.2
1.7
8.8
7.0
1.7
7.7
6.5
1.5
8.3
6.3
1.5
8.4
6.0
1.4
8.9
6.3
1.4
0.7
1.1
0.8
1.2
0.8
1.2
0.7
1.3
0.8
1.2
0.8
1.1
0.8
1.1
0.6
1.0
0.7
1.2
0.7
1.2
0.8
1.3
0.9
1.3
0.8
1.2
1.1
1.5
1.2
1.6
Activity Ratios
Inventory Turnover
Receivable Turnover
Total Asset Turnover
Liquidity Ratios
Quick Ratio
Current Ratio
Debt Ratios
EBIT Interest Coverage
EBITDA Interest Coverage
Funds from Ops./Total Debt
Free Oper. CF/Total Debt
Long Term Debt/Capital
Total Debt/Capital
3.2
5.0
24.2%
11.8%
63.1%
63.4%
2.9
4.9
22.4%
3.9%
60.6%
60.9%
2.7
4.3
21.2%
22.0%
59.1%
59.2%
2.1
3.5
18.5%
0.6%
60.9%
62.9%
2.1
3.4
23.4%
20.6%
54.0%
55.1%
1.4
2.5
14.5%
1.5%
67.5%
67.9%
2.5
4.0
20.1%
-4.1%
69.7%
73.8%
0.4
1.3
-1.9%
-6.3%
1.8
2.5
9.2%
8.3%
2.5
3.2
13.7%
-3.1%
2.7
3.3
16.4%
11.7%
1736.7%
1359.0%
2.0
2.6
9.3%
-0.9%
371.3%
360.1%
2.1
2.7
16.8%
10.8%
253.9%
251.2%
3.0
3.8
21.9%
14.9%
195.4%
194.1%
3.2
3.9
24.2%
13.7%
145.6%
145.2%
Return On Investment Ratios

Return On Avg. Total Assets
Return On Average Equity
Return On Total Capital
5.0%
20.4%
15.4%
4.2%
15.4%
12.3%
3.9%
13.6%
11.2%
3.6%
11.8%
10.5%
3.8%
12.5%
11.5%
2.6%
4.8%
7.2%
3.9%
23.3%
13.5%
1.6%
2.3%
4.6%
6.8%
3.0%
7.0%
8.4%
8.7%
July 29, 2015

Brett D. Hoselton
Pg.5
15
Meritor - MTOR
Earnings Recap
Meritor, Inc. Cash Flow Brett D. Hoselton, CFA (216) 689-0237

2002
2003
2004
2005
2006
2007
2008
2009

Depreciation & Amortization
Net Chg. In Working Capital
Other -Pension, etc.
Operating Cash Flow
$107.0
196.0
4.0
(123.0)
$184
$136.0
214.0
(96.0)
1.0
$255
($40.0)
183.0
164.0
(88.0)
$219
$12.0
182.0
(136.0)
(90.0)
($32)
($175.0)
172.0
116.0
327.0
$440
($154.4)
129.0
(29.0)
90.4
$36
($91.0)
145.0
(144.0)
265.0
$163
($1,077.0)
81.0
59.0
642.0
($295)
Capital Expenditures
Sale of Prop., Plant & Equip.
Acquisitions/Divestitures
Other
Investing Cash Flow
(184.0)
11.0
(25.0)
($198)
(193.0)
21.0
0.0
($172)
(152.0)
82.0
(50.0)
($120)
(146.0)
18.0
153.0
$25
(150.0)
65.0
(6.0)
201.0
$110
(120.0)
12.0
199.0
5.0
$96
(172.0)
9.0
(57.0)
5.0
($160)
4.0
(9.0)
(27.0)
($32)
(29.0)
(27.0)
($56)
6.0
(55.0)
(28.0)
($77)
112.0
(26.0)
(28.0)
(4.0)
$54
1.0
(264.0)
(28.0)
(100.0)
($391)
28.0
(37.0)
(49.0)
(29.0)
(11.0)
($98)
132.0
(29.0)
(6.0)
$97
1.0
20.0
7.0
8.0
4.0
25.0
(12.0)
(15.0)
4.0
($45)
$47
$29
$55
$163
$59
$88
($402)
$248
101.0
$56.0
56.0
$103.0
103.0
$132.0
132.0
$187.0
187.0
$350.0
350.0
$409.0
409.0
$497.0
497.0
$95.0
95.0
$343.0
$155.0
105.0
78.0
196.0
$534
$136.0
104.0
68.0
214.0
$522
$132.6
107.0
53.4
183.0
$476
$110.0
127.0
34.0
182.0
$453
$118.0
124.0
33.0
172.0
$447
$37.0
104.0
5.0
129.0
$275
$117.0
89.0
37.9
145.0
$389
($103.0)
88.0
48.0
81.0
$114
$7.95
$7.69
$6.94
$6.48
$6.45
$3.87
$5.37
$22.67
67.2
1,450.0
39.0
56.0
$2,956
$17.05
67.9
1,561.0
39.0
103.0
$2,654
$20.46
68.6
1,490.0
39.0
132.0
$2,800
$18.05
69.9
1,582.0
58.0
187.0
$2,715
$15.50
69.3
1,240.0
0.0
350.0
$1,964
$18.64
71.1
1,148.0
0.0
409.0
$2,063
$13.17
72.4
1,303.0
497.0
$1,759
5.5
5.1
5.9
6.0
4.4
7.5
Net Changes In Stock

Net Changes In ST Debt
Net Changes In LT Debt
Dividends Paid
Other
Financing Cash Flow
Exchange Rate Gain/(Loss)
Net Incr./Decr. In Cash
Beginning Cash Balance
Ending Cash Balance
EBITDA & Enterprise Value
Net Income
Net Interest Exp. (Inc.)
Taxes
MTOR Adjustments
EBITDA
EBITDA/Share
Stock Price
Average Comm. Shares Out
Short & Long Term Debt
Cash & Equivalents
Enterprise Value
Enterprise Value/EBITDA
Enterprise Value = (Price x Shares) + LTD + Preferred Equity/Convertible Debt - Cash / Marketable Securities.
4.5
2011
2012
2013
2014
2015E
2016E
$12.0
70.0
46.0
83.0
$211
$82.0
66.0
(69.0)
(38.0)
$41
$52.0
63.0
39.0
(77.0)
$77
($18.0)
67.0
(62.0)
(83.0)
($96)
$250.0
67.0
19.0
(89.0)
$247
$113.8
66.5
21.5
(10.0)
$192
$168.8
66.5
(11.8)
0.0
$223
(111.0)
125.0
$14
(56.0)
(8.0)
($64)
(105.0)
(69.0)
2.0
($172)
(89.0)
18.0
28.0
3.0
($40)
(54.0)
1.0
182.0
8.0
$137
(77.0)
160.0
$83
(90.0)
160.0
$70
(90.0)
($90)
(9.0)
(83.0)
0.0
(14.0)
($106)
209.0
0.0
(54.0)
0.0
(58.0)
$97
14.0
0.0
(12.0)
$2
25.0
0.0
(1.0)
$24
0.0
$0
0.0
$0
0.0
$0
(1.0)
1.0
(4.0)
($126)
$40
$61
$330
$262
$133
343.0
$217.0
217.0
$257.0
257.0
$318.0
318.0
$648.0
648.0
$909.8
909.8
$1,043.3
$25.0
99.0
62.0
70.0
10.0
$266
$76.0
95.0
77.0
66.0
28.0
$342
$111.0
95.0
56.0
63.0
20.0
$345
$39.0
107.0
74.0
67.0
(26.0)
$261
$96.0
109.0
33.0
67.0
3.0
$308
$146.8
78.0
26.5
66.5
9.5
$327
$168.8
76.0
34.0
66.5
15.0
$360
$1.57
$3.05
$3.53
$3.55
$2.69
$3.09
$3.25
$3.75
$4.65
72.6
1,177.0
95.0
$1,419
$12.56
87.2
1,029.0
343.0
$1,781
$16.55
96.8
1,034.0
217.0
$2,418
$6.50
97.2
1,060.0
257.0
$1,435
$5.68
97.2
1,138.0
318.0
$1,372
$11.19
99.7
972.0
247.0
$1,840
$13.79
100.7
972.0
508.8
$1,852
$13.79
96.0
972.0
642.3
$1,653
12.5
2010
6.7
6.0
0.0
0.0
0.0
0.0
$6
7.1
4.2
5.3
6.0
5.7
4.6
July 29, 2015

Brett D. Hoselton
Pg.6
16
Disclosure Appendix
Meritor, Inc. - MTOR
We expect to receive or intend to seek compensation for investment banking services from Meritor, Inc. within the next three months.
As of the date of this report, we make a market in Meritor, Inc..
For the three-year history represented in this chart, this stock has been rated Sector Weight.
Reg A/C Certification

The research analyst(s) responsible for the preparation of this research report certifies that:(1) all the views expressed
in this research report accurately reflect the research analyst's personal views about any and all of the subject
securities or issuers; and (2) no part of the research analyst's compensation was, is, or will be directly or indirectly
related to the specific recommendations or views expressed by the research analyst(s) in this research report.
Three-Year Rating and Price Target History
Rating Disclosures
Distribution of Ratings/IB Services Firmwide and by Sector
KeyBanc Capital Markets
INDUSTRIAL
IB Serv/Past 12 Mos.
Rating
Count
Percent
Count
Overweight [OW]
356
45.76
84
Sector Weight [SW]
406
52.19
66
16
2.06
0.00 Underweight [UW]
Underweight [UW]
July 29, 2015

Brett D. Hoselton
Percent Rating
Count
Percent
Count
Percent
23.60 Overweight [OW]
107
44.77
21
19.63
16.26 Sector Weight [SW]
131
54.81
6.87
0.42
0.00
Pg.7
17
Disclosure Appendix (cont'd)

Rating System
Overweight - We expect the stock to outperform the analyst's coverage sector over the coming 6-12 months.
Sector Weight - We expect the stock to perform in line with the analyst's coverage sector over the coming 6-12
months.
Underweight - We expect the stock to underperform the analyst's coverage sector over the coming 6-12 months.
Note: KeyBanc Capital Markets changed its rating system after market close on February 27, 2015. The previous
ratings were Buy, Hold and Underweight. Additionally, Pacific Crest Securities changed its rating system to match
KeyBanc Capital Markets rating system after market close on April 10, 2015, in conjunction with the merger of
the broker dealers. The previous ratings were Outperform, Sector Perform and Underperform.
Other Disclosures
KeyBanc Capital Markets is a trade name under which corporate and investment banking products and services of
KeyCorp and its subsidiaries, KeyBanc Capital Markets Inc., Member NYSE/FINRA/SIPC (KBCMI), and KeyBank National
Association (KeyBank N.A.), are marketed. Pacific Crest Securities is a division of KeyBanc Capital Markets Inc.
KeyBanc Capital Markets Inc. (KBCMI) does and seeks to do business with companies covered in its research reports. As
a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report.
Investors should consider this report as only a single factor in making their investment decision.
This report has been prepared by KBCMI. The material contained herein is based on data from sources considered to be
reliable; however, KBCMI does not guarantee or warrant the accuracy or completeness of the information. It is published for
informational purposes only and should not be used as the primary basis of investment decisions. Neither the information
nor any opinion expressed constitutes an offer, or the solicitation of an offer, to buy or sell any security. The opinions and
estimates expressed reflect the current judgment of KBCMI and are subject to change without notice. This report may contain
forward-looking statements, which involve risk and uncertainty. Actual results may differ significantly from the forward-looking
statements. This report is not intended to provide personal investment advice and it does not take into account the specific
investment objectives, financial situation and the specific needs of any person or entity.
No portion of an analysts compensation is based on a specific banking transaction; however, part of his/her compensation
may be based upon overall firm revenue and profitability, of which investment banking is a component. Individuals associated
with KBCMI (other than the research analyst(s) listed on page 1 of this research report) may have a position (long or short) in
the securities covered in this research report and may make purchases and/or sales of those securities in the open market
or otherwise without notice. As required by NASD Rule 2711(h)(1)(A), financial interest, if any, by any research analysts
listed on page 1 of this report will be disclosed in Important Disclosures, Company-specific regulatory disclosures located
above in the Disclosure Appendix. KBCMI itself may have a position (long or short) in the securities covered in this research
report and may make purchases and/or sales of those securities in the open market or otherwise without notice. As required
by NASD Rule 2711(h)(1)(B), if KBCMI beneficially owns 1% or more of any class of common equity securities of the subject
company(ies) in this research report as of the end of the month immediately preceding the date of publication of this research
report will be disclosed in Important Disclosures, Company-specific regulatory disclosures located above in the Disclosures
Appendix. This communication is intended solely for use by KBCMI clients. The recipient agrees not to forward or copy the
information to any other person without the express written consent of KBCMI.
July 29, 2015

Brett D. Hoselton
Pg.8
18
Alert
July 29, 2015
INDUSTRIAL: Construction & Farm Machinery &

Heavy Trucks (Ind'l)
NYSE: MTOR
Meritor, Inc. (Sector Weight)

MTOR - ALERT: First Look: 9% EBITDA Beat; Increased 2015 FCF Guidance by 10%
and EBITDA to 3% Above Consensus
Brett D. Hoselton, CFA / (216) 689-0237 / bhoselton@key.com
Irina Hodakovsky / (216) 689-5374 / ihodakovsky@key.com
Anthony Deem / (216) 689-0294 / adeem@key.com
We believe investors will view the earnings release favorably as:

1) adjusted earnings of $0.41 were 24% above the Streets expectations of $0.33, adjusted EBITDA of $87M was 9% above the Streets
expectations of $80M and EBITDA margin of 9.6% was 80 bps above the Streets expectations of 8.8%, on in line revenue results of $909M;
2) Management revised FY15 guidance above consensus, as follows:
increased free cash flow by 10% to $110M from prior ~ $100M

implied adjusted EBITDA increased to a range of $326M-$330M from prior range of $319M-$327M, ~3% above consensus of $318M at
mid-point
increased adjusted EBITDA margin to ~9.3% from prior range of 9.0-9.2%, or 30 bps above consensus of 9.0%
increased adjusted EPS to a range of $1.40-$1.50 from $1.30-$1.40, ~4% above consensus of $1.40 at mid-point
maintained revenue outlook in the range of $3.50B-$3.55B, in line with consensus
EPS:
$0.41: Recurring
$0.34: KBCM
$0.33: FactSet
$0.28: Prior Year
Revenue:
$909M Recurring
$864M KeyBanc
$908M FactSet
$986M Prior Year
Adjusted EBITDA
$87M: Recurring
$83M: KBCM
$80M: FactSet
$80M: Prior Year
EBITDA Margin:
9.6%: Recurring
9.0%: KBCM
8.8%: FactSet
8.1%: Prior Year
19
Disclosure Appendix

Rating Disclosures
Distribution of Ratings/IB Services Firmwide and by Sector
INDUSTRIAL
Rating
Count
Percent
Count
Overweight [OW]
356
45.76
84
Sector Weight [SW]
406
52.19
66
16
2.06
0.00 Underweight [UW]
Underweight [UW]
July 29, 2015

Brett D. Hoselton
Percent Rating
Count
Percent
Count
Percent
23.60 Overweight [OW]
107
44.77
21
19.63
16.26 Sector Weight [SW]
131
54.81
6.87
0.42
0.00
Pg.2
20

Rating System
months.
Other Disclosures
July 29, 2015

Brett D. Hoselton
Pg.3
21
United States Edition

July 13, 2015
Meritor (MTOR : US$13.60)

Meritor increases 7.9% in trailing
year
Fig 1: Stock Summary

52-Week Range
US$9.46-US$15.65
Sector
Commercial Vehicles &
Meritor, Inc., NYSE's 3rd largest Commercial Vehicles &

Trucks sector company by market cap, increased 99.40c (or
Trucks
7.9%) in the trailing 12 months to July 13, 2015 to close at

US$13.60. Compared with the S&P 500 Index which has risen
Market Cap
US$1.3 billion
EPS Growth % (q.o.q)
45.8
trailing year was 0.9 times average daily volume in the
Shares Outstanding
96,551,713
previous year. In the trailing 12 months the market cap has
ISIN
US0433531011
jumped US$80.8 million.
PermID
1-4295912004
Introduction with Trends
Relative Strength (3 mo)
87
6.7% over the same period, this is a relative price increase of

1.2%. Average daily volume of 1.3 million shares in the
We are currently bullish on this stock in the

short-term based on technical indicators, but
are neutral in the long-term based on
fundamental metrics
What makes us bullish on the stock is the following:
In the last three months the number of rises
outnumbered falls 32:31 or 1.03:1.
The price to 200-day MAP ratio is 1.02, a bullish
indicator.
However, there are some reasons why we remain

neutral on the stock for the long-term:
Price/Earnings of 5.3 versus sector average of 15.0 and
market average of 20.4.
Return on Assets of 10% versus sector average of 6.9%
and market average of 2.6%.
www.BuySellSignals.com
Fig 2: Financial Summary

Year ended
Sep 2014
Sep 2013
Sep 2012
Sales (USD B)
3.8
4.5
Pretax (USD M) 315
51
137
Net (USD M)
249
(22)
52
EPS (USD)
2.51
(0.22)
0.54
Fig 3: Global Rank out of 45,026

stocks
Description
Value
Rank
Quartile
MCap (US$)
1.3B
6519
Top
Total Assets (US$)
2.5B
5071
Top
Revenue (US$)
4B
2263
Top
Net Profit (US$)
249M
2329
Top
Net Profit Margin %
6.2
13894
Second
Price Earnings
5.3
1990
Top
PV$1000 (1Year) US$
1,078.8
14093
Second
US$ Change (1Year) %
7.9
12611
Second
Rel Strength 6 Mo (US$)
43
25587
Third
Page 1
22
Analysis
Bullish Signals
Rises to Falls: In the last three months the number of rises
outnumbered falls 32:31 or 1.03:1.
The Price/MAP 200 of 1.02 for Meritor is higher than the
Price/MAP 200 for the S&P 500 Index of 0.9.
The price to 200-day MAP ratio is 1.02, a bullish indicator.
In the past 200 days this ratio has exceeded 1.02, 108
times suggesting further upside. The 50-day MAP of
US$13.74 is higher than the 200-day MAP of US$13.29, a
bullish indicator. The 200-day MAP has increased to
US$13.29. An increase is another bullish indicator.
Undervaluation:
Price/Earnings of 5.3 versus sector average of 15.0 and
market average of 20.4.
The earnings yield of 19.0% is 7.9 times the 10-year bond
yield of 2.4%.
The company is cash rich with Cash to Market
Capitalisation at 18.8%.
The Q Ratio, defined by James Tobin as MCap divided
by Total Assets, is 0.5. Compared with the rest of the
market the stock is undervalued.
Other Bullish Signals:

Return on Assets of 10% versus sector average of 6.9%
and market average of 2.6%.
Return on Capital Employed of 30.4% versus sector
average of 16.4% and market average of 10.4%.
Over the last 3 years average annual compound growth
rate of earnings per share was 56.9%. This is better than
sector average of 50.3%.
Fig 4: Bullish Indicators and Rank

in Market
Description
Value
Rank In Market
Return on Capital
Employed [ROCE]
%
30.4
In Top 5%
Price Earnings
5.3
In Top 7%
Price to Sales
0.3
In Top 8%
Earnings Yield %
19.0
In Top 8%
Price Change %
2.3
In Top Quartile
Cash to MCap %
18.8
In Top Quartile
Return on Assets
[ROA] %
10
In Top Quartile
Note
It is at a discount of 13.1% to the 12-month high of
US$15.65 on 08 Jan, 2015. It is also at a premium of 43.8%
to the 12-month low of US$9.46 on 15 Oct, 2014.
The present value of USD1,000 (PV1000) invested five
years ago in Meritor is US$963, for a capital loss of US$37.
Fig 5: Present Value of USD1000

invested 5 years ago
Also, the following criteria set by Benjamin Graham:

"An earnings-to-price yield of at least twice the triple-A
bond"; the stock's earning yield of 19% is 7.9 times the
triple-A bond yield of 2.4%.
"Earnings growth over the most recent ten years of 7%
compounded - that is a doubling of earnings in a fiveyear period"; the earnings per share have more than
doubled in the last 5 years.
5 years Multiplier in USD = 1.0x

Avg annual cpd gr rate (CAGR) in USD = -0.8 %
Bearish Signals:
In the NYSE market of 2,063 stocks and 412 units traded
today, the stock has a 6-month relative strength of 20
indicating it is trailing 80% of the market.
Page 2
23
Analysis (continued)
The Moving Average Convergence Divergence (MACD)
indicator of 12-day Exponential Moving Average (EMA)
of 13.42 minus the 26-day EMA of 13.57 is negative
suggesting a bearish signal.
Overvaluation:
The average annual compound return on the share
price in the last 5 years was -0.8%, underperforming the
average annual compound return on the S&P 500 Index
of 13.9%.
Other Bearish Signals:

Net profit margin has averaged 2.3% in the last 3 years.
This suggests the company is less profitable with a low
margin of safety.
The stock has a score of merely 3 out of 9 set by Joseph
Piotroski [pass mark >=5 ]:
Positive net income; positive operating cashflow;
improvement in gross margin [from 10.3% to 12.2%].
Fig 6: Bearish Indicators and Rank

in Market
Description
Value
Rank In Market
Volatility %
2.6
In Bottom Quartile
Relative Strength
(6M)
20
In Bottom Quartile
Page 3
24
Price Volume Dynamics

Volatility
The stock traded between a 52-week low of US$9.46 and a
high of US$15.65. The average daily volatility of 3.0% places
the stock in the 1st quartile in the market meaning it is highly
volatile.
Fig 7: Price High Low Close
PVUS$1,000
Trailing Qtr
Trailing Yr
Trailing 3 Yrs
US$1,094
US$1,079
US$2,810
Commercial
Vehicles &
Trucks sector
937
709
1,012
S&P 500 Index
1,002
1,086
1,547
MTOR
Fig 9: Other Listings

Exchange
RIC
Avg. Daily
Volume
Volume
% of Total
Primary Exchange (United States)

New York
MTOR.N
1,276,540
91.73
MTOR.N
33,020
8.27
Other Listings
United States
BATS
Total
100.00
Fig 10: Turnover Rate & Turnover

Period
Fig 8: Shareholder Returns

Trailing quarter: The stock rose 32 times (50.8% of the time)
and fell 31 times (49.2% of the time). The aggregate volume
was 0.9 times average trading of 117.3 million shares. The
value of US$1,000 invested 3 months ago is US$1,094 [vs 1,002
for the S&P 500 Index] for a capital gain of US$94.
Trailing 12 Months: The stock fell 126 times (50% of the time),
rose 123 times (48.8% of the time) and was unchanged 3
times (1.2% of the time). The value of US$1,000 invested a
year ago is US$1,079 [vs 1,086 for the S&P 500 Index] for a
capital gain of US$79.
Fig 11: Trailing 3 months

Turnover
US$986.8 million
Volume
72,852,758
Volume Index (1 is avg)
0.9
Page 4
25
Price Volume Dynamics (continued)

Fig 12: Weekly Price Volume
Dynamics (Last 12 Weeks)
Fig 14: Price Change %

Price Change %
Trailing Qtr Trailing Yr
Tr 3 Yrs
MTOR
9.41
7.89
180.99
Commercial
Vehicles & Trucks
-6.3
-29.06
1.22
S&P 500 index
0.2
6.71
54.75
Fig 15: YTD Comparison Stock

Sector Index (%)
Price increase fuelled by above average Volume

Price increase on below average Volume
Price decrease fuelled by above average Volume
Price decrease on below average Volume
Price unchanged on above average Volume
Price unchanged on below average Volume
Untraded
Fig 13: Price/Moving Avg Price

[P/MAP200]
Fig 16: Short Selling to Mcap
Page 5
26
Fig 17: Year-on-Year Comparison (Trailing year - ended 30 Jun)

2015
2014
2013
2012
2011
2010
Price 30 Jun (USD)
13.12
13.04
7.04
5.22
16.04
13.1
% Price Change
0.6
85.2
34.9
-67.5
22.4
198.4
Avg Daily Volume
1,270,801
1,348,252
1,345,882
2,092,903
1,988,490
2,186,538
VWP (USD)
13.13
10.26
4.53
7.46
17.07
14.79
Turnover Period
3 mo
3 mo
3 mo
2 mo
58 d
44 d
Price Range (USD)
9.46 - 15.65
6.09 - 15.14
3.83 - 7.5
4.78 - 17.33
11.95 - 22.65
12.93 - 16.22
Index Change %
5.2
22.1
17.9
3.1
28.1
12.1
Relative Price Change %
-4.6
63.2
17
-70.6
-5.7
186.3
In the past 6 years average daily volume has declined 41.9% from 2.2 million shares to 1.3 million shares. Turnover period has
increased from 44 days to 3 months. This indicates a larger number of core investors, making a long-term investment safer.
Fig 18: Price Volume Trend: Trailing Quarter
Page 6
27
Fig 19: Stock v Index (Trailing Year)
Fig 20: Fibonacci Retracement
Page 7
28
Ranking
Fig 21: Global Peer Group Analysis (all figures in USD)
Name
Relative Str.
(6 mo)
MCap
PV $1000
(1 yr)
Revenue
Net Profit
Total Assets
Cosmo Oil
74
1.4B
795.6
24.7B
(629.6M)
11.6B
Alon USA Energy
95
1.3B
1,616.8
6.8B
38.5M
2.2B
Burelle
58
1.3B
750.8
5.7B
121.4M
4B
BlueScope Steel
20
1.3B
433.4
6B
(61M)
5.6B
Meritor
43
1.3B
1,078.8
4B
249M
2.5B
Nisshin Steel Holdings
82
1.3B
960.0
4.7B
143.9M
6B
Companhia De Gas De Sao Paulo
33
1.2B
616.3
2B
194.2M
2.4B
Oil Refineries
88
1.2B
1,266.3
9.6B
(196.4M)
4.9B
Unipetrol
77
1.2B
1,034.5
4.1B
(56.9M)
2B
Global Peer Group Analysis (continued)

Code
Country
Last Price
5007
JP
JPY198.0
ALJ
US
US$19.06
BUR
FR
EUR648.05
BSL
AU
AUD3.15
MTOR
US
US$13.60
5413
JP
CGAS3
P/E
P/S
Turnover Rate
(%)
% Disc to 52-w
Hi
0.1
121.3
9.6
0.2
283.6
0.7
2.2
12.3
0.2
181.4
49.7
5.3
0.3
327.6
13.1
JPY1,439.0
8.9
0.3
217.8
18.1
BR
R$41.50
7.3
0.6
1.0
21.7
ORL
IL
NIS1.44
33.5
4.8
BAAUNIPE
CZ
CZK160.0
3.8
5.7
20.8
Fig 22: Recent Analyst Recommendations

Date
Brokerage
Action
Past Rating
Current Rating
07-May-2015
JPMorgan Chase & Co.
Reiterated Rating
Neutral
21-Apr-2015
Citigroup Inc.
Lower Price Target
Neutral
Page 8
29
Ranking (continued)
Fig 23: Relative Strength
Ranking
Meritor, Inc. is placed 793/2436 in BSS ranking of NYSE
performers in the past year, a percentile ranking of 68%.
Meritor, Inc. was ranked 942 in the Industry Week list of the
world's largest 1000 manufacturers by Revenues in 2014; a
deterioration over a year from rank 833 in 2013.
Sector Sorting
For Company searches, or for sorting by stocks and
variables, an interactive version of today's Table is
available here
Page 9
30
Financial Results (Annual)
30 September, 2014
Fig 24: Income Statement

Currency in Million of USD
2014-09-30
2013-09-30
Change %
Sales
3,766
3,672
Up 2.6
Cost of sales
-3,279
-3,277
Deterioration 0.1
GROSS MARGIN
487
395
Up 23.3
-258
-253
Deterioration 2.0
Pension settlement losses

Restructuring costs
-109
-10
-23
Reduced 56.5
Other operating expense, net
-2
-3
Reduced 33.3
OPERATING INCOME
217
Up 3,000.0
Gain on sale of property
Other income, net
Gain on sale of equity investment
125
Equity in earnings of ZF Meritor
190
Equity in earnings of affiliates
38
42
Down 9.5
228
170
Up 34.1
Interest expense, net
130
126
Up 3.2
INCOME BEFORE INCOME TAXES
315
51
Up 517.6
Provision for income taxes
31
64
Down 51.6
INCOME (LOSS) FROM CONTINUING OPERATIONS
284
-13
Recovery
LOSS FROM DISCONTINUED OPERATIONS, net of tax
-30
-7
Deterioration
328.6
NET INCOME (LOSS)
254
-20
Recovery
Less: Net income attributable to noncontrolling interests
-5
-2
Deterioration
150.0
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC.
249
-22
Recovery
Net income (loss) from continuing operations
279
-15
Recovery
Loss from discontinued operations
-30
-7
Deterioration
328.6
Net income (loss)
249
-22
Recovery
Continuing operations
US$2.86
-15.0c
Recovery
Discontinued operations
-31.0c
-7.0c
Deterioration
342.9
Basic earnings (loss) per share
US$2.55
-22.0c
Recovery
Continuing operations
US$2.81
-15.0c
Recovery
Discontinued operations
-30.0c
-7.0c
Deterioration
328.6
Diluted earnings (loss) per share
US$2.51
-22.0c
Recovery
NET INCOME (LOSS) ATTRIBUTABLE TO MERITOR, INC.
BASIC EARNINGS (LOSS) PER SHARE
DILUTED EARNINGS (LOSS) PER SHARE
Page 10
31
Financial Results (Annual) (continued)
30 September, 2014
Basic average common shares outstanding
97,500,000
97,100,000
Up 0.4
Diluted average common shares outstanding
99,200,000
97,100,000
Up 2.2
2014-09-30
2013-09-30
Change %
247
318
Down 22.3
Receivables, trade and other, net
610
596
Up 2.3
Inventories
379
414
Down 8.5
56
56
Steady
TOTAL CURRENT ASSETS
1,292
1,384
Down 6.6
NET PROPERTY
424
417
Up 1.7
GOODWILL
431
434
Down 0.7
OTHER ASSETS
355
335
Up 6.0
1,210
1,186
Up 2.0
2,502
2,570
Down 2.6
Short-term debt
13
Down 46.2
Accounts and notes payable
680
694
Down 2.0
351
339
Up 3.5
TOTAL CURRENT LIABILITIES
1,038
1,046
Down 0.8
LONG-TERM DEBT
965
1,125
Down 14.2
RETIREMENT BENEFITS
775
886
Down 12.5
OTHER LIABILITIES
309
335
Down 7.8
2,049
2,346
Down 12.7
3,087
3,392
Down 9.0
Common stock (September 30, 2014 and 2013, 97.8 and 97.4 shares 97
issued and outstanding, respectively)
97
Steady
Additional paid-in capital
918
914
Up 0.4
Accumulated deficit
-878
-1,127
Reduced 22.1
Accumulated other comprehensive loss
-749
-734
Deterioration 2.0
Total deficit attributable to Meritor, Inc.
-612
-850
Reduced 28.0
27
28
Down 3.6
TOTAL DEFICIT
-585
-822
Reduced 28.8
Fig 25: Balance Sheet

ASSETS
CURRENT ASSETS:
TOTAL ASSETS
LIABILITIES AND EQUITY (DEFICIT)
CURRENT LIABILITIES:
TOTAL LIABILITIES
COMMITMENTS AND CONTINGENCIES
EQUITY (DEFICIT):
Page 11
32

TOTAL LIABILITIES AND DEFICIT
30 September, 2014
2,502
2,570
Down 2.6
2014-09-30
2013-09-30
Change %
215
-96
Recovery
-77
-54
Deterioration 42.6
Fig 26: Cash Flow

OPERATING ACTIVITIES
CASH PROVIDED BY (USED FOR) OPERATING ACTIVITIES (see Note 25)
INVESTING ACTIVITIES
Capital expenditures
Proceeds from sale of equity investment
182
Proceeds from sale of property

Other investing activities
Net investing cash flows provided by (used for) continuing -77

operations
131
Deterioration
Net investing cash flows provided by discontinued operations
Up 16.7
CASH PROVIDED BY (USED FOR) INVESTING ACTIVITIES
-70
137
Deterioration
Proceeds from debt issuances
225
500
Down 55.0
Repayment of notes and term loan
-439
-475
Reduced 7.6
Other financing activities
12
11
Up 9.1
Net change in debt
-202
36
Deterioration
Debt issuance costs
-10
-12
Reduced 16.7
CASH PROVIDED BY (USED FOR) FINANCING ACTIVITIES
-212
24
Deterioration
EFFECT OF CURRENCY EXCHANGE RATES ON CASH AND CASH
-4
-4
Steady
CHANGE IN CASH AND CASH EQUIVALENTS
-71
61
Deterioration
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR
318
257
Up 23.7
CASH AND CASH EQUIVALENTS AT END OF YEAR
247
318
Down 22.3
FINANCING ACTIVITIES
EQUIVALENTS
Fig 27: EBITDA And Margins

2014-09-30
2013-09-30
Gross Profit Margin %
12.19
10.28
Earnings from Cont. Ops. Margin %
11.14
4.61
Net Income Margin %
6.23
-0.57
Page 12
33
30 September, 2014
Fig 28: Performance Ratios

2014-09-30
2013-09-30
Change %
Return on Assets (%)
9.95
-0.86
Total Liabilities to Operating Cash Flow
14.36
-35.33
Recovery
Total Liabilities/Total Assets
1.23
1.32
Down 6.5
Interest Cover
3.42
1.4
Up 143.7
Current Ratio
1.24
1.32
Down 5.9
2014-09-30
2013-09-30
Change %
Sales
US$38.63
US$37.82
Up 2.1
EBIT
US$4.56
US$1.82
Up 150.4
Cash
US$2.53
US$3.27
Down 22.6
Working Capital
US$2.61
US$3.48
Down 25.2
Shareholders' Funds
-627.69c
-875.39c
Reduced 28.3
Total Liabilities
US$31.66
US$34.93
Down 9.4
Total Assets
US$25.66
US$26.47
Down 3.0
Current Debt
7.18c
13.39c
Down 46.4
Net Tangible Assets
-1,069.74c
-1,322.35c
Reduced 19.1
EPS Final
US$2.51
-22.0c
Fig 29: Per Share figures
Fig 30: Average Income Tax paid

2014
As % of profit before tax
9.8
As % of sales
0.8
2013
1.7
2012
2011
40.9
48.4
1.2
1.7
2010
5-yr avg
1.4
1.3
In the past 5 years, Income Tax as % of profit before tax decreased from 48.4% to 9.8%.
Market Share
Meritor vs Commercial Vehicles & Trucks sector [Commercial Vehicles & Trucks sector Total in Brackets]
Revenue of US$4 billion[10.9% of aggregate sector revenue of US$36.8 billion; down from 11.2% in the previous year.]
Net Profit of US$249 million [18.4% of aggregate sector net profit of US$1.4 billion]
EBIT of US$445 million [15.6% of aggregate sector EBIT of US$2.8 billion; up from 9.8% in the previous year.]
Page 13
34
Company Overview and Regulatory Announcements

Activities
Meritor is a global supplier of a range of integrated systems,
modules and components serving commercial truck, light
vehicle, trailer and speciality original equipment
manufacturers (OEMs) and certain after markets. Meritor
serves a range of OEM customers worldwide, including truck
OEMs, light vehicle OEMs, trailer producers and speciality
vehicle manufacturers, and certain after markets. The
Company operate manufacturing facilities in 22 countries
worldwide, including facilities operated by joint ventures, in
which it has interests. On December 19, 2007, the Company's
Commercial Vehicle Systems (CVS) business acquired
Mascot Truck Parts Ltd. On July 2, 2008, the Company's CVS
business acquired Truck technic SA.
Fig 31: List of Top 10 Institutional

Holdings
Name of
Shareholder
No. of Shares % Held
Value
USD
Vanguard Group Inc
8,703,825
9.01
118.4 M
Glenview Capital
Management LLC
7,516,803
7.79
102.2 M
Lasry Marc
7,207,466
7.46
98 M
LSV Asset
Management
5,472,270
5.67
74.4 M
Hotchkis & Wiley

Capital Management
LLC
5,298,910
5.49
72.1 M
Blackrock Institutional
Trust Company N.a.
4,128,273
4.28
56.1 M
Frontier Capital
Management Co LLC
3,979,692
4.12
54.1 M
Dimensional Fund
Advisors LP
3,387,275
3.51
46.1 M
within 3 Months), click here
Issued Capital
Gotham Asset
Management LLC
3,137,085
3.25
42.7 M
Blackrock Fund
Advisors
2,507,427
2.6
34.1 M
Total
51,339,026
53.17
Further details can be found at
http://www.meritor.com.
Call and Put Options

To view top three Meritor Call and Put Options (Expiring
Based on 96,551,713 issued equity shares the market

capitalisation is US$1.3 billion. It is NYSE's 3rd largest
Commercial Vehicles & Trucks sector by total revenue.
The top twenty shareholders hold 68.1% of the issued capital
leaving a float of 31.9%.
Fig 32: Top 20 Institutional Holdings

as % of total
Page 14
35
Regulatory Announcements (continued)

8-K other news
July 10: Meritor: Other Events
[News Story]
http://www.buysellsignals.net/hbn/8kviewer.jsp?doc=_Archiv
es_edgar_data_1113256_000089383815000050_000089383815-000050.txt
December 02: Meritor: Regulation FD Disclosure

[News Story]
es_edgar_data_1113256_000120677414003421_000120677414-003421.txt
Source: 8-K United States Securities and Exchange
Commission

Commission
November 12: Meritor: Results of Operations and

Financial Condition
June 11: Meritor: Entry into a Material Definitive

Agreement
[News Story]
es_edgar_data_1113256_000111325614000033_000111325614-000033.txt
[News Story]
es_edgar_data_1113256_000120677415001970_000120677415-001970.txt

Commission

Commission
October 20: Meritor: Entry into a Material Definitive

Agreement
May 28: Meritor: Regulation FD Disclosure
[News Story]
es_edgar_data_1113256_000089383814000142_000089383814-000142.txt
[News Story]
es_edgar_data_1113256_000120677415001803_000120677415-001803.txt
Commission
May 04: Meritor: Costs Associated with Exit or Disposal

Activities.
[News Story]
es_edgar_data_1113256_000089383815000035_000089383815-000035.txt

Commission
October 02: Meritor: Other Events

[News Story]
es_edgar_data_1113256_000089383814000134_000089383814-000134.txt
Commission

Commission
September 15: Meritor: Entry into a Material Definitive

Agreement
February 05: Meritor: Regulation FD Disclosure
[News Story]
es_edgar_data_1113256_000089383814000131_000089383814-000131.txt
[News Story]
es_edgar_data_1113256_000120677415000382_000120677415-000382.txt
Commission
January 28: Meritor: Results of Operations and Financial

Condition
[News Story]
es_edgar_data_1113256_000111325615000004_000111325615-000004.txt

Commission
August 12: Meritor: Regulation FD Disclosure

[News Story]
es_edgar_data_1113256_000120677414002497_000120677414-002497.txt
Commission

Commission
Page 15
36

July 31: Meritor: Results of Operations and Financial
Condition
[News Story]
es_edgar_data_1113256_000111325614000028_000111325614-000028.txt
Commission
Changes in Board and

Management
May 01: Meritor Names Rob Speed President,
Aftermarket & Trailer and Chief Procurement Officer
TROY, Mich., April 30, 2015 -- Meritor, Inc. (NYSE:MTOR) today
announced the appointment of Rob Speed as president,
Aftermarket & Trailer and Chief Procurement Officer. In this
role, Speed will have responsibility for the planning,
organization and implementation of all sales and business
strategies and operations for the Aftermarket & Trailer
business segment.
May 01: Meritor appoints Chief Executive Officer

Meritor has appointed Jeffrey A. Craig as Chief Executive
Officer. The effective date is April 29, 2015.
For more details click here.
April 29: Meritor appoints Director

Meritor has appointed Jeffrey A. Craig as a Director. The
effective date is April 29, 2015.
Annual Meetings
January 22: Meritor announces AGM
Meritor has announced its Annual General Meeting will take
place on January 22, 2015.
Performance
April 29: Meritor Reports Second-Quarter Fiscal Year
2015 Results
July 31 2014: Meritor Reports Third-Quarter Fiscal Year

2014 Results - Raises Fiscal Year 2014 Earnings and Free
Cash Flow Guidance
[Company Release] TROY, Mich., (July 31, 2014) - Meritor, Inc.
(NYSE: MTOR) today reported financial results for its third fiscal
quarter ended June 30, 2014.
Third-Quarter Highlights
Sales were $986 million, down $7 million from the same period
last year. Net income on a GAAP basis was $234 million,
compared to a net loss of $38 million, in the same period last
year.
Press Releases
July 10: Meritor Purchases Assets Of Sypris Facility In
Morganton, North Carolina
[News Story] TROY, Mich., July 10, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) today announced that it has
purchased the majority of the assets at the Sypris Solutions,
Inc. manufacturing facility in Morganton, North Carolina.
"Bringing the Morganton facility under the Meritor umbrella
allows us to expand operations while demonstrating our
continued commitment to supplying axle and suspension
components to our customers," said Brett Penzkofer, vice
president and general manager of Meritor's trailer business.
The facility currently manufactures trailer axle beams, and
machines carriers and differentials for Meritor, in addition to
producing light vehicle components for other customers.
<a href='http://www.nasdaq.com/press-release/meritorpurchases-assets-of-sypris-facility-in-morganton-northcarolina-20150710-00198'>Read more...</a>
Source: Nasdaq Stock Exchange
July 06: Meritor Hosts Conference Call And Webcast To

Present Fiscal Year 2015 Third-quarter Earnings
[News Story] TROY, Mich., July 6, 2015 /PRNewswire/ -- Meritor,
Inc. (NYSE: MTOR) will host a conference call and webcast to
discuss the company's third-quarter results for fiscal year 2015
on Wednesday, July 29, 2015, at 9 a.m. ET.
To participate, call 617-213-4865, 10 minutes prior to the start
of the call.
TROY, Mich., April 29, 2015 Meritor, Inc. (NYSE:MTOR) today

reported financial results for its second fiscal quarter ended
March 31, 2015.
Second-Quarter Highlights
Sales were $864 million, down $90 million, or 9.4 percent, from
the same period last year. Net income attributable to Meritor
on a GAAP basis was $43 million, compared to $1 million
during the second quarter of fiscal year 2014.
January 28: Meritor Reports First-Quarter Fiscal Year

2015 Results
[News Story]
http://www.nasdaq.com/aspx/stockmarketnewsstoryprint.as
px?storyid=meritor-reports-firstquarter-fiscal-year-2015-results20150128-00358
Page 16
37

July 01: Meritor Champtruck World Series Brings Thrill Of
Big Rig Racing To Charlotte Motor Speedway
June 08: Meritor Announces Offering Of $225 Million Of

Senior Unsecured Notes
[News Story] CONCORD, N.C., July 1, 2015 /PRNewswire/ -Drivers will rev their engines for a Fourth of July weekend of
heavy-duty truck racing when the Charlotte Motor
Speedway hosts the Meritor ChampTruck World Series.
"We're bringing the thrill of semi-truck racing back to the
United States for the first time since 1993," said James Taylor,
general manager, North America Field Operations for
Meritor. "ChampTruck races are family affordable and fanfriendly. People have access to the trucks, drivers and teams,
so there's plenty of excitement for everyone."
The two days of racing at Charlotte Motor Speedway is the
fourth event in the Meritor ChampTruck World Series. Gates
open at 8 a.m. on Friday and Saturday. Friday's activities
include two Meritor ChampTruck practice sessions, a
qualifying session and two heat races.
<a href='http://www.nasdaq.com/press-release/meritorchamptruck-world-series-brings-thrill-of-big-rig-racing-tocharlotte-motor-speedway-20150701-00423'>Read
more...</a>
[News Story] TROY, Mich., June 8, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) today announced that it is offering,
subject to market and other conditions, an additional $225
million aggregate principal amount of its existing series of 61/4% notes due 2024 in an underwritten registered public
offering.
June 29: Meritor Mourns The Passing Of Former Board

Member David W. Devonshire
[News Story] TROY, Mich., June 29, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR), regretfully announces the passing
of David Devonshire who died on June 25 at the age of 70.
Devonshire served on Meritor's board of directors since 2004
and was the presiding director from 2013 to 2015. He was the
chair of the Audit Committee and a member of the
Compensation and Management Development Committee.
June 15: Meritor Donates $50,000 To Wyakin Warrior

Foundation
[News Story] TROY, Mich., June 15, 2015 /PRNewswire/ -- Staff
Sgt. George Nickel of the U.S. Army Reserve's321st Engineer
Battalion was in a Mine-Resistant Ambush Protected (MRAP)
vehicle with three other soldiers clearing the route to a
downed helicopter in central Iraq when they ran over a 500pound insurgent bomb.
June 08: Meritor Announces Pricing Of $225 Million Of

Senior Unsecured Notes
[News Story] TROY, Mich., June 8, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) today announced that it priced
$225 million aggregate principal amount of its 6-1/4% senior
unsecured notes due 2024 ( the "notes") in an underwritten
registered public offering, pursuant to a reopening of its
existing series of such notes.
June 08: Meritor Adds Dedicated Customer Support To

Drivetrain Direct Program
[News Story] FLORENCE, Ky., June 8, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) announced it is expanding support
for aftermarket differential and transmission component
rebuilders enrolled in its Drivetrain Direct program by offering
more personalized service and quicker response from a
single point of contact.
May 28: Meritor Names Jay Beeler 2014 Manufacturing

Engineer Of The Year
[News Story] TROY, Mich., May 28, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR), a leading global supplier of
drivetrain, mobility, braking and aftermarket solutions for
commercial vehicle and industrial markets, recently named
Jay Beeler the company's 2014 Manufacturing Engineer of
the Year.
Beeler, manufacturing engineer for Meritor'sMorristown,
Tennessee facility, earned the award for development work
on the relaunch of the company's 14X near net program as
well as milling technology and forging simulation processes
that improved the plant's manufacturing capabilities.
May 28: Meritor Awards Gareth Cantle With 2014

Lifetime Achievement Award For Manufacturing
Engineering
commercial vehicle and industrial markets, recently honored
Gareth Cantle with its 2014 Lifetime Achievement Award for
Manufacturing Engineering.
May 28: Meritor Awards Tomaz Varela With 2014

Lifetime Achievement Award For Product Engineering
commercial vehicle and industrial markets, recently honored
Tomaz Varela with its 2014 Lifetime Achievement Award for
Product Engineering.
Page 17
38

May 28: Meritor Names Pedro Garcia 2014 Product
Engineer Of The Year
commercial vehicle and industrial markets, recently named
Pedro Garcia the company's 2014 Product Engineer of the
Year.
Garcia, project engineer for Meritor, earned the award for his
distinguished leadership in the design and development of
Meritor's carriers for trucks and off-highway applications.
May 27: Meritor Champtruck World Series Brings Thrill

Of Big Rig Racing To Pikes Peak International Raceway
[News Story] FOUNTAIN, Colo., May 27, 2015 /PRNewswire/ -The thrill of big rig racing returns to Colorado Friday when
drivers at the Pikes Peak International Raceway rev their
engines for the Meritor ChampTruck World Series.
The three-day series at Pikes Peak is the third event in the
Meritor ChampTruck World Series which is bringing semi truck
racing back to the United States after a 22-year absence.
May 27: Meritor To Present At Keybanc Capital Markets

2015 Industrial, Automotive & Transportation
Conference
[News Story] TROY, Mich., May 27, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) will participate in the KeyBanc
Capital Markets 2015 Industrial, Automotive & Transportation
Conference on Thursday, May 28 in Boston. Kevin Nowlan,
senior vice president and chief financial officer for Meritor,
will present at 11 a.m.
May 22: Meritor ChampTruck World Series Brings Thrill of

Big Rig Racing to Willows Thunderhill Raceway Park
[News Story] WILLOWS, Calif., May 22, 2015 /PRNewswire/ -Race fans at the Thunderhill Raceway Park will experience
the thrill of big rig racing beginning today when drivers rev
their engines at the Meritor ChampTruck World Series.
The three-day series at Thunderhill is the second event in the
Meritor ChampTruck World Series, which is bringing semi truck
racing back to the United States after a 22-year absence.
May 04: Meritor(Registered) to Host Webinars

Highlighting Proper Application of Downspeeding
[News Story]TROY, Mich., May 4, 2015 Meritor, Inc.
(NYSE:MTOR) is launching a series of webinars to update fleet
and dealer customers on the correct application of
downspeeding at the 2015 Alternative Clean Transportation
(ACT) Expo May 4-7 in Dallas.
"Downspeeding, one of the integrated fuel-efficiency
solutions we'll showcase at ACT, is an effective way for fleets
to reduce fuel costs and minimize the negative impact on
the environment, but there can be unintended
consequences if not applied correctly," said Bob Ostrander,
chief engineer, Driveline for Meritor.
May 01: Meritor Named Doleco USA Master Distributor

[News Story] FLORENCE, Ky., April 30, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) today announced a master
distribution agreement with Doleco USA, Inc. to sell Doleco's
cargo restraint products for flatbeds and van trailers to North
America warehouse distributors (WDs) and original
equipment dealers, effective immediately.
April 24: Big Rig Racing Returns to United States with

Debut of Meritor ChampTruck World Series at New
Jersey Motorsports Park
MILLVILLE, N.J, April 24, 2015 The excitement of heavy-duty
truck racing returns to the United States for the first time since
1993 when, beginning today, drivers start their engines for the
Meritor ChampTruck World Series(Registered) 2015 season
opener at New Jersey Motorsports Park.
"This marks the first time in 22 years that American racing fans
can experience the fun of watching Class 8 heavy-duty
trucks compete in three days of exciting events," said Krista
Sohm, vice president, Marketing & Communications for
Meritor, Inc.
April 15: Meritor Announces Closure of Heath, Ohio

Manufacturing Facility
[Company Release]
<link>http://www.meritor.com/ourcompany/news/pressrelea
ses/Lists/allnewsitems/DispForm.aspx?ID=1780</link>
Source: Company Website
April 09: Events Calendar: Meritor Hosts Conference

Call and Webcast to Present Fiscal Year 2015 SecondQuarter Earnings
TROY, Mich., April 8, 2015 /PRNewswire/ -- Meritor, Inc.
(MTOR) will host a conference call and webcast to discuss
the company's second-quarter results for fiscal year 2015 on
Wednesday, April 29, 2015, at 9 a.m. ET.
To participate, call 617-213-4847, 10 minutes prior to the start
of the call. Please reference passcode 11820707 when
registering.
March 27: Meritor Announces Executive Title

Sponsorship of ChampTruck World Series Racing
LOUISVILLE, Ky., March 27, 2015 Meritor, Inc. (NYSE:MTOR) is
the executive title sponsor of the Meritor ChampTruck World
Series(Registered) for the 2015 season, marking the return of
big-rig truck racing to major U.S. racetracks for the first time
since 1993. The announcement was made at the MidAmerica Trucking Show.
Page 18
39

March 17: Meritor Grant Funds 11 Robots for Academy
of the Sacred Heart's Upper School
February 26: Meritor Recognizes 16 Companies with

2014 Supplier Partner Awards
[News Story] BLOOMFIELD HILLS, Mich., March 17, 2015

/PRNewswire-USNewswire/ -- Meritor, Inc. presented a $10,000
grant to the Academy of the Sacred Heart to enhance the
school's robotics curriculum. In 2013-2014, the school
introduced a robotics requirement for all ninth-graders in its
Upper School for Girls, providing the students with an early
exposure to engineering and programming.
TROY, Mich., Feb. 26, 2015 /PRNewswire/ -- Meritor, Inc.

(NYSE:MTOR) announced recipients of its first Supplier Partner
Awards that recognize 16 North America companies for
achieving excellence in quality, delivery, cost savings and
innovation. The awards were presented at a ceremony held
on Feb. 25, at Meritor's headquarters.
March 09: Grede Recognized by Meritor, Inc. with 2014

Supplier Partner Award
February 18: Meritor® Earns Top 20 Product Award

from Heavy Duty Trucking Magazine for P600 Series
Heavy-Haul Planetary Axles
[News Story]
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Grede Recognized by Meritor, Inc.
[News Story] TROY, Mich., Feb. 17, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) earned Heavy Duty Trucking (HDT)
magazine's 2015 Top 20 Product Award for its P600 Series
Heavy-Haul Planetary Axles. The award honors the most
innovative and significant new products that address industry
issues and help fleets improve their bottom line, according to
Deborah Lockridge, HDT editor.
March 09: Meritor Employees to Support 19 Charities in

Nine Countries on Fourth Annual Global Service Day
[News Story] MTIS(TradeMark) Tire Inflation System for Trucks

Helps Reduce Total Cost of Ownership
NASHVILLE, Tenn., Feb. 16, 2015- Meritor(Registered)
(NYSE:MTOR) is introducing the industry's first automatic tire
inflation system for linehaul tractors at the Technology &
Maintenance Council (TMC) 2015 Annual Meeting &
Transportation Technology Exhibition.
[News Story] TROY, Mich., March 6, 2015 /PRNewswire/ -When 14-year-old John and his mother, a cancer patient,
showed up at The Salvation Army Family Life Resource
Centre (FLRC) in Brampton, Ontario, Canada, they were
escaping an abusive relationship. "For my mom to actually
seek help was a huge step, and it shows just how badly she
needed it," said John.
March 06: Meritor Employees to Support 19 Charities in

Nine Countries on Fourth Annual Global Service Day
[News Story] TROY, Mich., March 6, 2015-- When 14-year-old
John and his mother, a cancer patient, showed up at The
Salvation Army Family Life Resource Centre (FLRC) in
Brampton, Ontario, Canada, they were escaping an abusive
relationship. "For my mom to actually seek help was a huge
step, and it shows just how badly she needed it," said John.
February 16: Meritor WABCO's New Aftermarket

Programming Tool Helps Reduce Commercial Vehicle
Downtime
[News Story] NASHVILLE, Tenn., Feb. 16, 2015 -- Meritor
WABCO is announcing a breakthrough programming tool
that helps significantly shorten delivery times of replacement
electronic control units (ECU) for antilock braking systems
(ABS). The Aftermarket Programming Tool will be introduced
at the Technology & Maintenance Council (TMC) 2015
Annual Meeting & Transportation Technology Exhibition.
February 16: Meritor Announces Industry's First

Automatic Tire Inflation System for Linehaul Market
February 13: Meritor Showcases New Products that 'Fuel

Change'
[News Story] TROY, Mich., Feb. 12, 2015 /PRNewswire/ -Meritor(Registered) (NYSE:MTOR) will introduce three new
products and announce a new ratio for a current axle
solution at the Technology & Maintenance Council (TMC)
2015 Annual Meeting & Transportation Technology Exhibition
in Nashville, Tennessee from Feb.
Page 19
40

February 04: Meritor to Host Analyst Day in New York on
Feb. 5
January 28: Meritor Grows Wheel-End Offering with

Three New Products
Accessible by Webcast and Conference Call

TROY, Mich., Feb. 3, 2015 /PRNewswire/ -- Meritor, Inc.
(NYSE:MTOR) will host a webcast and conference call of its
Analyst Day presentation from 9 a.m. until noon ET on
Thursday, Feb. 5 at The St. Regis New York in New York City.
Investors can access the webcast (audio and slides
combined) in real time by visiting the Investors section of
Meritor's website at meritor.com.
[News Story] LAS VEGAS, Jan. 27, 2015 /PRNewswire/ -Meritor Inc. (NYSE:MTOR) announced at Heavy Duty
Aftermarket Week '15 (HDAW) that it is creating a one-stop
resource for wheel-end solutions by adding three new
products.
With the introduction of the Doctor Preload(Registered)
Bearing Adjustment Tools, Temper-Loc(Registered) spindle
nuts from Temper(Registered) and Meritor(Registered)
hubcaps, Meritor continues to reinforce its leadership in
wheel-end solutions by broadening its robust portfolio of
products.
January 28: After 75 Years, Growth Continues for

Meritor's Euclid Brand with Expansion of Suspension
Line
Aftermarket Week '15 (HDAW) it is carrying on its 75-year
tradition as a trusted and reliable brand by expanding its
Euclid-branded suspension product line, adding 200 new
parts to its portfolio of more than 2,000 in-stock parts.
January 28: Meritor Announces 'Shoes for Soldiers' to

Help Injured Veterans Build a Successful Future
January 28: Meritor WABCO Offering Promotional

Pricing on TOOLBOX Software at HDAW
[News Story] LAS VEGAS, Jan. 27, 2015 /PRNewswire/ -Meritor WABCO is offering special promotional pricing of $249
for TOOLBOX(TradeMark) 11.2, the commercial vehicle
industry's leading diagnostics and troubleshooting software,
to aftermarket customers at Heavy Duty Aftermarket Week
'15 (HDAW) Jan. 26 through Jan.
[News Story] LAS VEGAS, Jan. 27, 2015 /PRNewswire/ -Meritor, Inc. (NYSE:MTOR) today announced it is launching
"Shoes for Soldiers" to help severely wounded, injured or ill
veterans become leaders in business, government and their
communities by contributing a percentage of its
remanufactured brake shoe sales to the Wyakin Warrior
Foundation.
January 26: Meritor Director awarded shares
January 28: Meritor Expands its Genuine and All-Makes

Air Disc Brake Portfolios and Updates Catalogs
Meritor (NYSE:MTOR) Director Lyons William J, was awarded

6,565 shares worth US$99,919 on January 22, 2015.
Aftermarket Week '15 (HDAW) the expansion of its air disc
brake (ADB) product line and introduced updated parts
catalogs to support rising market demand.
The expansion includes more than 150 part numbers for
genuine Meritor ADB systems, such as the ADB1560, DX and
EX+ models and over 130 Meritor AllFit(TradeMark) part
numbers covering brakes made by other manufacturers.
January 28: Meritor-Approved Service Point Program

Launches in the United States and Canada
LAS VEGAS, Jan. 27, 2015 /PRNewswire/ -- Meritor Inc.
(NYSE:MTOR) announced at Heavy Duty Aftermarket Week
'15 (HDAW) that it will launch a network of Meritor-approved
repair shops with independent service garages (ISGs) across
the United States and Canada.
"Fleets taking their vehicles to a garage approved for the
Meritor Service Point program will benefit from Meritor parts
that are engineered for quality and installed by technicians
trained with Meritor's deep product knowledge," said Terry
Livingston, general manager, Category Management,
Aftermarket.
Meritor (NYSE:MTOR) Director Anderson Joseph B Jr, was

awarded 6,565 shares worth US$99,919 on January 22, 2015.

Meritor (NYSE:MTOR) Director Bridges Victoria J, was awarded

Meritor (NYSE:MTOR) Director Newlin William R, was awarded

Meritor (NYSE:MTOR) Director Brooks Rhonda L, was awarded
January 08: Meritor(Registered) to Host Analyst Day in

New York on Feb. 5
[Company Release] TROY, Mich. (Jan. 8, 2015) - Meritor, Inc.
(NYSE: MTOR) will host its Analyst Day event from 9 a.m. until
noon ET Thursday, Feb. 5 at The St. Regis New York.
Investment professionals who would like to attend the
conference must register in advance as space is limited. To
attend, please send an email to
investor.relations@meritor.com by 5 p.m.
Page 20
41

January 06: Meritor Hosts Conference Call and
Webcast to Present Fiscal Year 2015 First-Quarter
Earnings
[News Story] TROY, Mich., Jan. 6, 2015-- Meritor, Inc.
(NYSE:MTOR) will host a conference call and webcast to
discuss the company's first-quarter results for fiscal year 2015
on Wednesday, Jan. 28, 2015, at 9 a.m. ET.
To participate, call (617) 213-4866, 10 minutes prior to the
start of the call. Please reference passcode 16406418 when
registering.
January 06: Meritor Hosts Conference Call and

Webcast to Present Fiscal Year 2015 First-Quarter
Earnings
[News Story]
TROY, Mich., Jan. 6, 2015-- Meritor, Inc. (NYSE:MTOR) will host
a conference call and webcast to discuss the company's
first-quarter results for fiscal year 2015 on Wednesday, Jan. 28,
2015, at 9 a.m. ET.
To participate, call (617) 213-4866, 10 minutes prior to the
start of the call. Please reference passcode 16406418 when
registering.
December 08 2014: D. Mike Pennington, Longtime

Meritor(Registered) Employee, Passes Away at 64 Global Trucking Industry Loses a Legend
[Company Release] TROY, Mich. (Dec. 8, 2014) - D. Mike
Pennington, a significant presence in the North American
trucking industry and retired Meritor, Inc. (NYSE: MTOR)
employee, passed away suddenly on Dec. 5.
"Mike's contributions to Meritor during his 25-year tenure, and
over the past several years, were extraordinary," said Krista
Sohm, vice president, Marketing and Communications.
October 16 2014: Meritor Hosts Conference Call and

Webcast to Present Fiscal Year 2014 Fourth-Quarter
Earnings
TROY, Mich., Oct. 16, 2014 Meritor, Inc. (NYSE:MTOR) will host
a conference call and webcast to discuss the company's
fourth-quarter results for fiscal year 2014 at 9 a.m. (ET)
Wednesday, Nov. 12, 2014.
To participate, call (617) 213-4866 10 minutes prior to the start
of the call. When registering, reference passcode 60647739.
October 15 2014: Meritor Simulator Brings the Reality of

Driving Military Vehicles in Afghanistan to AUSA 2014
[Company Release] WASHINGTON, D.C. (Oct. 14, 2014) - U.S.
Department of Defense and military industry customers will
get a real-world look at driving conditions in the mountains of
Afghanistan when Meritor(Registered) (NYSE: MTOR)
showcases the capabilities of its defense products at the
AUSA 2014 Annual Meeting and Exposition Oct.
October 15 2014: Meritor Announces the Nomination of

Lloyd Trotter to its Board of Directors
[News Story] TROY, Mich., Oct. 15, 2014 -- Meritor, Inc.
(NYSE:MTOR) today announced that Lloyd G. Trotter will be
nominated for election to its Board of Directors. If elected,
Trotter's appointment will become effective at the
company's annual meeting of shareowners in January 2015.
Trotter has extensive experience in business operations,
finance, consumer goods and information technology from
his years at General Electric, a diversified technology and
financial services company.
October 08 2014: Meritor Makes $10,000 Contribution to

Trucking Moves America Forward Campaign
[Company Release] SAN DIEGO, Calif. (Oct. 8, 2014) Meritor, Inc. (NYSE: MTOR) announced a financial
contribution of $10,000 to a nationwide industry campaign
highlighting trucking and its important role in the U.S.
economy.
Meritor made the contribution to Trucking Moves America
Forward (TMAF), a movement spearheaded by the Allied
Committee for the Trucking Industry, on Monday at its annual
reception recognizing the outgoing and incoming chairmen
of the American Trucking Associations.
October 07 2014: Meritor' Previews Launch of a

Downspeeding Portfolio for Commercial Vehicles
[News Story] TROY, Mich., Oct. 7, 2014 -- Beginning early in
2015, Meritor(Registered) (NYSE:MTOR) will launch a portfolio
of products that supports trucking industry demand for fuel
economy through downspeeding of engines.
Meritor will offer a 2.28 ratio on its 14X(TradeMark) tandem for
6x4 linehaul applications and a 2.31 ratio on its new
FUELite+(TradeMark) tandem for the 6x2 market.
October 06 2014: Meritor(Registered) Launches

RPL35(TradeMark) and RPL35SD(TradeMark) Drivelines
for Linehaul and Heavy Service Applications
[Company Release] SAN DIEGO, Calif. (Oct. 6, 2014) Meritor(Registered) (NYSE: MTOR) announced today the
introduction of the newest members of the
Permalube(TradeMark) RPL family. The high-capacity RPL35
and RPL35SD(TradeMark) drivelines are engineered for
linehaul and heavy-service applications in North and South
America.
October 03 2014: Four Meritor Sites Hosting Students for

NAM Manufacturing Day
[News Story] Four Meritor Sites Hosting Students for NAM
Manufacturing Day
TROY, Mich., Oct. 3, 2014-- High school and middle school
students in North Carolina, South Carolina and Tennessee will
learn about high-tech careers in manufacturing when they
visit Meritor, Inc. (NYSE:MTOR) plants during Manufacturing
Day activities this month.
Page 21
42

October 01 2014: Sen. Mitch McConnell Addresses
Employees at Meritor"s Florence, Kentucky Facility
[News Story] FLORENCE, Ky., Sept. 30, 2014 /PRNewswire/ -U.S. Sen. Mitch McConnell, R-Kentucky, made an official visit
to Meritor, Inc.'s (NYSE:MTOR) Florence, Kentucky distribution
center today to meet with employees and discuss issues
facing the manufacturing industry.
McConnell met with executives to discuss topics including
energy policy and trucking industry regulations with
Meritor'sIke Evans, chairman and CEO; Craig Frohock, vice
president, Aftermarket & Trailer; Krista Sohm, vice president,
Communications; Rick Fulks, senior director, Aftermarket
Operations; and Terry Livingston, general manager, Global
Product Management & Shared Services.
September 29 2014: Meritor Sells Mascot Brand to

Investor Group
[Company Release] TROY, Mich., Sept. 29, 2014 -- Meritor, Inc.
(NYSE:MTOR) today announced that it completed the sale of
its Mascot operations in Canada and the United States to an
entity that will operate under the name Mascot Industries
LLC. All other Meritor brake and trailer axle remanufacturing
operations, as well as Meritor's distribution business, are not
affected by the sale and will continue to operate as usual.
September 29 2014: Meritor: Creative Realities' CEO,

Paul Price, to Address Attendees at the NextPoint 2014
Conference
September 24 2014: Meritor Demonstrates Global Axle

and Brake Capabilities at IAA Commercial Vehicles
2014
[Company Release] HANNOVER, Germany, Sept. 24, 2014 / -Meritor, Inc. (NYSE:MTOR) will showcase the versatility of its
axles, brakes and drivelines for the global trucking industry at
the 65th IAA Commercial Vehicles 2014 show Sept. 25-Oct. 2
in Hannover, Germany, booth 26 D12.
Meritor will exhibit its global capabilities for light-, mediumand heavy- duty applications with regional specifications.
September 18 2014: Meritor Announces Redemption

Price for Redemption of its Outstanding $84,396,000
Aggregate Principal Amount of 8.125% Notes Due 2015
[News Story] TROY, Mich., Sept. 18, 2014 -- Meritor, Inc.
(NYSE:MTOR) today announced that it has issued a notice of
redemption announcing the redemption price for all of its
outstanding $84,396,000 aggregate principal amount of
8.125% notes due 2015 (the "Notes"). The redemption date is
Sept. 20, 2014 ("Redemption Date") and the redemption
price will be equal to $1,073.27725 per $1,000 principal
amount of the Notes to be redeemed, plus accrued and
unpaid interest, if any, up to, but not including, the
Redemption Date.
August 21 2014: Meritor Announces Redemption of all

of its Outstanding $84,396,000 Aggregate Principal
Amount of 8.125% Notes Due 2015
[Company Release] HANNOVER, Germany, Sept. 24, 2014

/PRNewswire/ -- Meritor(Registered) (NYSE:MTOR) will
demonstrate its versatile new 10X drive axle, which is meeting
demand for reliability and longer life across multiple
applications in emerging markets at the 65th IAA
Commercial Vehicles 2014 show Sept.
[Company Release] TROY, Mich. - (Aug. 21, 2014) - Meritor,

Inc. (NYSE: MTOR) today announced that it has issued a
notice of redemption for all of its outstanding $84,396,000
aggregate principal amount of 8.125% notes due 2015 (the
"Notes"). The redemption date is Sept. 20, 2014 ("Redemption
Date") and the redemption price will be equal to the greater
of (i) 100% of the principal amount of the Notes to be
redeemed or (ii) the sum of the present values of the
remaining scheduled payments of principal and interest on
the Notes (exclusive of interest accrued to the Redemption
Date) discounted to the Redemption Date on a semi-annual
basis (assuming a 360-day year consisting of twelve 30-day
months) at the adjusted treasury rate, which will be
calculated on the third business day preceding the
Redemption Date, plus 50 basis points, plus accrued and
unpaid interest, if any, to, but not including, the Redemption
Date.
September 24 2014: Meritor(Registered) to Showcase its

ELSA Family of Air Disc Brakes at IAA
August 14 2014: Meritor Supports Remembrance

Rescue Project's 9/11 Rescue Trucks
[Company Release] HANNOVER, Germany, Sept. 24, 2014 -Meritor(Registered) (NYSE:MTOR) will feature its ELSA air disc
brake (ADB) series at the 65th IAA Commercial Vehicles 2014
show Sept. 25-Oct. 2 in Hannover, Germany.
"We use best-in-class manufacturing processes to build
brakes that are weight-optimized and deliver performance
with longer component life," said Tony Nicol, general
manager, Brakes, Europe for Meritor.
[Company Release] TROY, Mich., Aug. 14, 2014 -- Meritor, Inc.

(NYSE:MTOR) is helping preserve two pieces of history with a
contribution to the Remembrance Rescue Project, which is
focused on restoring and preserving former FDNY Rescue 4
and Rescue 5 from 9/11 - two of the first responder vehicles
on the scene of the World Trade Center attacks almost 13
years ago.
NEW YORK, Sept. 29, 2014 /PRNewswire/ -- Creative Realities,

LLC ("Creative Realities" or the "Company") (OTCQB:CREX)
today announced that its Chief Executive Officer, Paul Price,
will share key insights on the opportunities for enterprises to
leverage the latest marketing technologies at the NextPoint
2014 Conference.
September 25 2014: Meritor(Registered) 10X Axle to be

Featured at World's Largest Commercial Vehicle Show
Page 22
43

August 11 2014: Meritor to Present at Jefferies Global
Industrials Conference
[Company Release] TROY, Mich., Aug. 11, 2014 -- Meritor, Inc.
(NYSE:MTOR) will participate in the Jefferies 2014 Global
Industrials Conference on Tuesday, Aug. 12, in New York City.
Kevin Nowlan, senior vice president and chief financial
officer for Meritor, will present at 11 a.m. (ET).
A live webcast of the presentation will be accessible via the
Investors page of the company's website at
www.meritor.com.
Page 23
44
Board and Management & creation of shareholder value

Jeffrey A. Craig
CEO & President & Director
Jeffrey ("Jay") Craig has been Meritor's President and Chief

Operating Officer since 2014. In this position, Craig provides
oversight to Meritor's business segments - Commercial Truck &
Industrial and Aftermarket & Trailer - and helps lead the
company toward the successful execution of its strategic
M2016 initiatives. Prior to taking on this position, he was Senior
Vice President and President of Meritor's Commercial Truck &
Industrial segment. He served as Senior Vice President and
Chief Financial Officer at Meritor from 2009 to 2013 and has
held various positions at the company since 2006.
Before joining Meritor, Craig served as president and CEO of
General Motors Acceptance Corp.'s (GMAC) Commercial
Finance organization from 2001 to 2006. Prior to that, he
served as President and CEO of GMAC's Business Credit
division from 1999 until 2001. He joined GMAC as a general
auditor in 1997 from Deloitte & Touche, where he served as
an audit partner. Craig holds a Bachelor of Science in
accounting from Michigan State University and a Master of
Business Administration from Duke University in Durham, N.C.
Creation of shareholder value in Meritor:

Since appointment as CEO: The present value of USD1,000
invested on the appointment date of April 29, 2015 at close
price of US$13.35 is US$1,019, for a capital gain of US$19.
Ivor J. Evans
Executive Chairman
Ivor J. "Ike" Evans is chairman and chief executive officer of

Meritor, Inc. He has been a member of the Board of Directors
since 2005.
Prior to this position, Evans served as president and chief
operating officer of Union Pacific Railroad from 1998 until
2004 and as vice chairman of Union Pacific Corporation from
January 2004 until his retirement in March 2005.
From 1989 to 1998, he served in various executive positions at
Emerson Electric Company, including senior vice president,
Industrial Components and Equipment. Prior to that, he was
president of Blackstone Corp., an automotive component
and systems manufacturer, from 1985 to 1989. He also spent
21 years serving in key operations roles for General Motors
Corporation.
Evans is on the board of directors of Textron, Inc. and Spirit
AeroSystems and is an operating partner of HCI Equity
Partners.
Kevin Nowlan
CFO & Senior Vice President
Kevin Nowlan is the senior vice president and chief financial

officer of Meritor, Inc. He is responsible for driving the
financial performance of the company, as well as providing
financial direction and guidance. Specifically, Nowlan is
responsible for worldwide financial controls; financial systems;
treasury and tax; financial planning and management
reporting; accounting policies; external reporting; internal
audit; investor relations; and other financial support. He had
been Meritor's vice president and controller since 2010. Prior
to that, Nowlan held roles including treasurer and vice
president of Shared Services. Before joining the company in
2007, he worked for GMAC and General Motors Treasurer's
Office for 12 years in a variety of roles, including the past 8
years as an executive. Nowlan holds a bachelor's degree in
economics, political science, and history and an MBA, both
from the University of Michigan.

Year of appointment: 2013
In the last 2 years the average annualized return to
shareholders was 37.8%. The present value of USD1,000
(PV1000) invested 2 years ago is now US$1,899, a gain of
US$899.
Rhonda L. Brooks
Director
Brooks, a director since July 1999, is chair of the Corporate

Governance and Nominating Committee and a member of
the Audit Committee. She is currently the president of R.
Brooks Advisor, a consultant for start-up firms and advisor for
a private equity company. She served Owens Corning as
president of the Exterior Systems business from June 2000 to
July 2002; as president of the Roofing Systems business from
December 1997 to June 2000; as vice president, Investor
Relations from January to December 1997; and as vice
president of Marketing for the Composites Division from 1995
to 1996. She served as senior vice president and general
manager of PlyGem Industries, Inc. from 1994 to 1995, and as
vice president of Oral Care and New Product Strategies, and
vice president of Marketing and Sales for Warner Lambert
Co. from 1990 to 1994. She was with General Electric Co.
from 1976 to 1990. She is a director of Menasha Corporation.
Page 24
45

(continued)
James E. Marley
Director
Marley, a director since April 1999, is a member of the

Compensation and Management Development Committee
and a member of the Environmental and Social Responsibility
Committee. He is the retired chairman of the Board of AMP
Inc., serving in that position from 1993 to 1998. He served AMP
as president and COO from 1990 to 1992, as president from
1986 to 1990, and in a variety of engineering and executive
positions from 1963, when he joined AMP, until 1986. He is a
director of a number of business, educational and civic
organizations, and is also a member of several engineering
and management professional associations.
William J. Lyons
Director
Lyons, a Class II director since May 2013 with a term expiring

at the 2014 annual meeting of stockholders is a member of
the Audit Committee.
He retired from CONSOL Energy on February 28, 2013, and
will remain as a consultant to the company until December
31, 2013. Until his retirement, Lyons served as Chief Financial
Officer of CONSOL Energy Inc. (provider of coal and natural
gas) since December 2000 and Chief Financial Officer of
CNX Gas Corporation (provider of natural gas) since April
2008. He added the title of Executive Vice President of
CONSOL Energy Inc. in May 2005 and of CNX Gas
Corporation in January 2009. He was also a director of CNX
Gas Corporation from October 2005 to January 2009.
Lyons is a Director of Calgon Carbon Corporation since 2008
and currently serves as the Chairman of the Audit Committee
of Calgon. In January 2013, he became trustee of the 1974
United Mines Workers of America Pension Trust which
oversees $4.5 billion in assets. He has also been a member of
the Board of Directors of Duquesne University since 2005.
Lyons holds a Master of Science in Accounting and is a
Certified Public Accountant and a Certified Management
Accountant.

Month of appointment: May 2013
US$899.
David W. Devonshire
Director
Devonshire, a director since July 2004, is the Board's presiding

director, chair of the Audit Committee and a member of the
Compensation and Management Development Committee.
He was executive vice president and CFO for Motorola, Inc.
from 2002 to March 2007, and executive vice president of
Motorola from March 2007 until his retirement in December
2007. He had previously served as executive vice president
and CFO for Ingersoll-Rand, a leading diversified industrial
firm, from 1998 to 2002. Prior to that, he served as senior vice
president and CFO for Owens Corning from 1993 to 1998;
corporate vice president of Finance for Honeywell from 1992
to 1993; and corporate vice president and controller for
Honeywell from 1990 to 1992. Prior to that, Devonshire served
in financial positions with Mead Corporation; Baxter
International, Inc.; and KPMG, where he began his career in
1968. Devonshire serves on the Boards of Roper Industries,
Arbitron Inc. and Career Education and the advisory boards
of CFO Magazine and LEK Consulting, and is a member of
the Board of Trustees of the John G. Shedd Aquarium of
Chicago.
Joseph B. Anderson
Director
Anderson, a director since September 1997, is chair of the

Environmental and Social Responsibility Committee and a
member of the Corporate Governance and Nominating
Committee. He has served as Chairman of the Board and
CEO of TAG Holdings, LLC since 2003, and of its subsidiaries:
Vibration Control Technologies, LLC since 2002; A&D
Technologies, LLC and North American Assemblies, LLC since
2003; and Great Lakes Assemblies, LLC since 2005. He was
chairman of the Board and CEO of Chivas Industries LLC
(and its predecessor, Chivas Products, Ltd.) from October
1994 until March 2002. From December 1992 to July 1993,
Anderson was president and CEO of Composite Energy
Management Systems, Inc. Anderson served in a variety of
positions, primarily in manufacturing, with General Motors
Corp. from 1979 until December 1992. He also served as an
assistant to the U.S. Secretary of Commerce from 1977 to
1979. Anderson is a director of Quaker Chemical Corp., Rite
Aid Corp., NV Energy and Valassis Communications, Inc.
Page 25
46

(continued)
Thomas L. Pajonas
Director
Thomas L. Pajonas is a Class I director with a term expiring at

the 2016 annual meeting of shareholders.
He has served as senior vice president and chief operating
officer of Flowserve Corp. since January 2012. Prior to that, he
served as president of the Flow Control Division from 2004 to
2012, holding the positions of vice president from 2004 to
2006 and senior vice president from 2006 as an officer of
Flowserve Corp.
Before joining Flowserve Corp., he was managing director of
Alstom Transport's U.S. rail products unit, and from 1999 to
2003, Pajonas was senior vice president of the Worldwide
Power Boiler Business of Alstom, Inc. Prior to that, he served in
various capacities as senior vice president and general
manager International Boiler Operations and subsequently
senior vice president and general manager Standard Boilers
Worldwide of Asea Brown Boveri, including supply chain,
power products manufacturing, and strategic operations.
He holds a B.S.M.E. from Worcester Polytechnic Institute and
an MBA from Rensselaer Polytechnic Institute.
William R. Newlin
Director
Newlin, a director since July 2003, is the chair of the

Compensation and Management Development Committee
and a member of the Corporate Governance and
Nominating Committee. He is chairman of Newlin Investment
Company, LLC and the chairman of Plextronics, Inc., since
May 2008 and a director since June 2005. He served as
executive vice president and chief administrative officer of
Dick's Sporting Goods, Inc. from October 2003 until his
retirement in 2007. Newlin served as chairman and CEO of
Buchanan Ingersoll Professional Corp. from 1980 to October
2003. He is a director of Kennametal Inc. and Calgon Carbon
Corp.
Sandra Quick
Senior Vice President &
Corporate Secretary &
General Counsel

Since appointment as Director: The present value of USD1,000
invested on the appointment date of September 16, 2013 at
close price of US$8.14 is US$1,671, for a capital gain of
US$671.
Victoria Jackson Bridges

Director
Jackson Bridges, a director since July 1999, is a member of

the Audit Committee and the Environmental and Social
Responsibility Committee. She currently serves as president of
Victoria Belle, Inc., a designer, manufacturer and marketer of
specialty retail products. She was president and CEO of
DSS/Prodiesel, Inc. from 1979 until 1998, when the company
was sold to TransCom USA. She served as a consultant to
TransCom USA from 1998 to February 2000. Bridges is a
member of the Advisory Board of Stratco Global.
Sandra Quick is senior vice president, general counsel and

corporate secretary. In this position, Quick has responsibility
for the legal affairs of the entire corporation and manages
the corporate legal department. Quick also directs legal
activities related to corporate governance, acquisitions and
divestitures, litigation, business standards compliance,
regulatory compliance and intellectual property. As a strong
advocate of employee development and corporate
diversity, she is a co-executive sponsor of the companys
Womens Business Resource Group and continues its efforts to
advance and empower women at Meritor. Quick was
formerly group vice president and general counsel for the
Electronics and Interiors Division of Johnson Controls, Inc. Prior
to that, she was vice president and general counsel for the
North American and South American operations of Johnson
Controls Automotive Experience Group. Before joining
Johnson Controls, Quick was vice president, general counsel
and secretary at Toyoda Gosei North America Corp. and
held legal positions with Valeo Electrical Systems, ITT
Automotive and Dickinson Wright PLLC earlier in her career.
Quick has a Juris Doctor from the University of Notre Dame
Law School and a Bachelor of Arts from Duke University.

Year of appointment: 2014
US$79.
Page 26
47
Glossary
Capital Gain/Loss from n Years Ago to n-1 Years Ago:
Cash/MCap:
Capital Gain or Loss over 1 Year/Price 1 Year Ago (%)
Cash plus Liquids/Market Capitalisation (times)
Current Ratio (Fig 29):
Earnings Yield (Fig 4):
Current Assets/Current Liabiliites (times)
Earnings Per Share/Share Price (%)
Interest Cover (Fig 29):
Moving Average Price (n periods) (Fig 13):
Earnings Before Interest and Tax/Interest (times)
Sum of Prices for each Period/Number of Periods
PVUS$1000 (Fig 8, 5):
Price Close/Moving Avg Price (Fig 13):
Present value of US$1000 invested 1 year/'n' years ago
Latest Price/Moving Average Price
Price/Earnings (Fig 22, 3, 4):
Price/Sales (Fig 22):
Share Price/Earnings Per Share (times)
Share Price/Sales Per Share (times)
Relative Price Change (Fig 17):
Relative Strength (n-th Period) (Fig 1, 6, 23, 3, 21):
Today's Relative price change with respect to Benchmark Index
Price close today/Price close 'n' periods ago, then ranked by

percentile within the entire market.
Return on Assets (Fig 4, 29):
Turnover (Fig 11):
Net Profit/Total Assets (%)
Last Price * Volume
Turnover Period (Fig 10, 17):
Turnover Rate (Fig 22, 10):
Time Period required for trading all Outstanding Shares
US Dollar value of annual trading volume as a percentage of market

capitalisation
Volatility (Fig 6):
Volume Index (Fig 11):
Highest Price minus Lowest Price/Lowest Price (%)
Number of shares traded in the period/Average number of shares

traded for the period
Volume Weighted Price (VWP) (Fig 17):

The Volume Weighted Price (VWP) is the summation of turnover
divided by total volume in the same period.
BuySellSignals Financial Research provides equity research on over 48,000 companies listed in
more than 90 countries and 120 markets across the world. BuySellSignals believes that every
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BuySellSignals offers the latest pertinent and comprehensive information so that investors can
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Page 27
48
June 14, 2015
INDUSTRIAL: Construction & Farm Machinery & Heavy

Trucks (Ind'l)
Management Meeting / Estimates Change
Meritor, Inc.
Brett D. Hoselton, CFA / (216) 689-0237
MTOR: Increasingly Confident in Execution;

End Markets Mixed
ihodakovsky@key.com
bhoselton@key.com
Maintaining Sector Weight: 1) increasingly confident in execution of M2016 plan

and beyond as new business revenue growth is accelerating, EBITDA margin
could increase as high as 12%, and capital deployment is increasingly allocated
to share buybacks and M&A; 2) end markets remain mixed as North American
outlook is strong, Europe is stable, but China is challenging, and South American
commercial vehicle production remains weak.
1) We are increasingly confident in execution of M2016 plan and beyond
Rating:
Price Target:
Price:
Sector Weight
NA
$14.18
10
17
16
15
14
13
4
12
11
Increasingly more focused on new product, with 20 new launches scheduled for the
next two years, a company record
Recently announced win with PACCAR, which could drive as much as $150M in
incremental revenue at peak
Upcoming ESC mandate should drive higher revenue for JV with Wabco Holdings,
Inc. (WBC)
Military business could see a material increase
10
Aug-14
Oct-14
Dec-14
Feb-15
Vol (mil)
Apr-15
Jun-15
MTOR

Markets Inc.
Company Data
$9 - $16
Market Cap. (M)
$1,436.4
High probability the 10.0% target under M2016 plan will be achieved
Beyond 2016, EBITDA margin could increase as high as 12.0%, largely driven by
leverage and higher-margin new product launches.
Shares Out. (M)
101.30
Capital deployment is increasingly allocated to share buybacks and potentially small

bolt-on acquisitions as free cash flow outlook is positive at ~$100M annually with
upside potential
SI as % of Float
7.7%
SI % Chg. from Last Per.
9.2%
EBITDA margin could increase as high as 12%
NYSE: MTOR
52-week range
adeem@key.com
New business revenue growth is accelerating to 2-3% above industry annually
Anthony Deem / (216) 689-0294
Following an NDRS with MTOR management, we are maintaining our Sector Weight
rating based on our belief that:
Irina Hodakovsky / (216) 689-5374
2) End markets remain mixed as North American outlook is strong, Europe is stable, but
China is challenging, and South American commercial vehicle production remains weak
We are increasing our FY15 EBITDA estimate to $327M from $322M (FactSet $312M)
and our FY15 EPS estimate to $1.40 from $1.34 (FactSet $1.39), and our FY16 EBITDA
estimate to $360M from $352M (FactSet $354M) and our FY16 EPS estimate to $1.69
from $1.54 (FactSet $1.69) on increased confidence in execution.
Enterprise Value (M)

Avg. Daily Volume (30D)
Book Value/Share
$2,200.4
1,299,110.0
$(5.87)
Total Debt/Cap
Cash (mm)
NA
$247.0

Markets Inc.
Estimates
FY ends 9/30
F2014A
1Q15A
2Q15A
3Q15E
4Q15E
F2015E
F2016E
EPS (Net)
$0.96
$0.35
$0.41
$0.34
$0.30
$1.40
$1.69
Cons. EPS
--
$0.35
$0.41
$0.33
$0.30
$1.39
$1.69
Previous
--
--
--
$0.33
$0.26
$1.34
$1.54
14.8x
--
--
--
--
10.1x
8.4x
Valuation
P/E
Sources: Company reports, FactSet, KeyBanc Capital Markets Inc.
49
Meritor - MTOR
Management Meeting
Valuation
MTOR is currently trading at an EV/EBITDA of 5.7x our 2015 EBITDA estimate of $327M. From 2005-2009,
MTOR has traded at an average EV/EBITDA of 5.5x. MTOR is currently trading at 10.1x our 2015 EPS
estimate of $1.40. From 2005-2009, MTOR has traded at an average 12-month forward P/E of 9x.
Investment Risks
We believe the largest risk to our earnings is a decline in global vehicle production.
Following an NDRS with MTOR management we are maintaining our Sector Weight rating based on our
belief that:
Increasingly Confident 1) We are increasingly confident in the execution of the M2016 plan and beyond, and management plans to
provide detailed objectives for the three-year M2019 plan at its Analyst Day in December, 2015:
in Execution
New business revenue growth is accelerating to 2-3% above industry annually as management has
secured ~$300M of the $500M new business target under the M2016 plan, and we are incrementally
confident the target will be achieved:
EBITDA margin could increase as high as 12%:
June 14, 2015

Brett D. Hoselton
Management expects to execute on the $179M outstanding under the current share buyback
authorization by the end of FY16. Going forward, we expect capital deployment will continue to
be allocated to share buybacks and potentially small bolt-on acquisitions as M2016 balance sheet
objectives have been met.
NOLs, valued at ~$1.50-$2.00/share based on our calculations, are a positive to cash-generating
capacity, and are expected to provide a cash tax shield of ~$25M-$30M annually for approximately ten
years.
2) End markets remain mixed as North American outlook is strong, Europe is stable, but China is challenging,
and South American commercial vehicle production remains weak:
Increasing Estimates
There is a high probability the 10.0% target under the M2016 plan will be achieved as MTOR is already
tracking at an average of 9.5% through F1H15 despite a decline in revenue, and improved execution
should drive solid leverage on new business launches in FY16.
Beyond 2016, EBITDA margin could increase as high as 12.0%, largely driven by leverage and highermargin new product launches.
Capital deployment is increasingly allocated to share buybacks and potentially small bolt-on acquisitions
as free cash flow outlook is positive at ~$100M annually with upside potential:
Mixed End Markets
Management is increasingly more focused on new product, with 20 new launches scheduled for the
next two years, a company record and a substantial increase from 2014s total of five launches.
Recently announced win with PACCAR could drive as much as $150M in incremental revenue at peak,
and is included in the $300M confirmed new business wins.
Upcoming ESC mandate issued by NHTSA should drive higher revenue for the JV with WBC.
Military business could see a material increase driven by the JLTV program award expected to be
announced around August. MTORs content is higher with Lockheed than OshKosh Corporation (OSK),
and should Lockheed win the contract, MTORs military revenue could increase substantially, as high
as $200M at peak from the current $30M, based on discussions with management.
North American commercial vehicle production remains strong with 2015 estimates ranging
~320,000-340,000 units, and is expected to remain above 300,000 units in 2016 as freight rates remain
healthy, fleet age remains high, used truck prices remain strong, and new technology, such as improved
fuel economy, adds value to ownership.
European production outlook is stable with some emerging positive indicators.
China production remains challenged by macroeconomic headwinds.
South American commercial vehicle production remains weak, despite some signs of stabilization.
We are increasing our FY15 EBITDA estimate to $327M from $322M (FactSet $312M) and our FY15 EPS
estimate to $1.40 from $1.34 (FactSet $1.39), and our FY16 EBITDA estimate to $360M from $352M
(FactSet $354M) and our FY16 EPS estimate to $1.69 from $1.54 (FactSet $1.69) on increased confidence
in execution.
Pg.2
50
Meritor - MTOR
Management Meeting

1Q14
2Q14
3Q14
4Q14
2014
1Q15
2Q15
3Q15E
4Q15E
2015E
2016E
112
6%
114
18%
2.5%
-30.0%
0.0%
1.5%
1.5%
$136.13
118
18%
83
2%
3.6%
-50.0%
0.0%
1.5%
1.5%
$137.03
133
10%
92
5%
8.8%
-70.0%
1.5%
1.5%
1.5%
$136.00
137
20%
88
0%
3.0%
-70.0%
1.5%
1.5%
1.5%
$132.51
500
14%
377
7%
4.5%
-55.0%
0.8%
1.5%
1.5%
$135.42
129
15%
97
-15%
0.0%
-50.0%
1.5%
1.0%
1.0%
$124.86
140
19%
84
1%
-8.6%
-50.0%
1.5%
1.0%
1.0%
$112.65
146
10%
92
0%
-8.6%
-50.0%
0.0%
1.0%
1.0%
$110.00
141
3%
88
0%
-8.6%
-50.0%
0.0%
1.0%
1.0%
$110.00
556
11%
361
-4%
-6.5%
-50.0%
0.8%
1.0%
1.0%
$114.38
548
-2%
369
2%
3.0%
-30.0%
2.5%
5.5%
1.0%
$110.00
$891.0
19.6
(13.7)
(14.8)
9.9
15.0
$907
$908.0
20.0
(13.9)
15.1
7.8
25.0
$962
$993.0
(2.5)
(14.9)
14.9
9.0
(13.5)
$986
$909.0
8.9
(13.8)
13.8
(0.0)
15.2
$933
$3,701.0
46.0
(56.2)
28.9
26.6
0.0
41.7
$3,788
$907.0
(14.5)
(8.9)
8.9
(16.3)
2.7
$879
$962.0
(2.8)
(9.6)
9.6
(37.5)
(57.7)
$864
$986.0
(36.2)
(9.5)
9.5
(39.9)
15.0
$925
$933.0
(58.1)
(8.7)
8.7
(32.7)
15.0
$857
$3,788.0
(111.5)
(36.8)
36.8
(126.4)
0.0
(25.0)
$3,525
$3,525.1
(73.6)
(34.5)
189.8
(29.1)
25.0
$3,603
$798.2
5.8
804.0
103.0
68.0
(9.0)
59.0
1.0
43.0
$846.6
(0.6)
846.0
116.0
72.2
(6.1)
66.0
0.0
50.0
$867.7
(4.7)
863.0
123.0
74.0
(20.0)
54.0
1.0
68.0
$821.0
(28.0)
793.0
140.0
70.0
8.0
78.0
0.0
62.0
$3,333.4
(27.4)
3,306.0
482.0
284.1
(27.1)
257.0
2.0
223.0
$769.1
(5.1)
764.0
115.0
61.5
3.5
65.0
(1.0)
51.0
$756.0
(7.0)
749.0
115.0
60.5
(3.5)
57.0
0.0
58.0
$809.3
(5.5)
803.8
121.1
64.7
(2.0)
62.7
0.0
58.4
$750.1
(5.5)
744.6
112.7
60.0
(2.0)
58.0
0.0
54.6
$3,084.5
(23.1)
3,061.3
463.8
246.8
(4.0)
242.7
(1.0)
222.0
$3,134.4
(25.0)
3,109.4
493.4
252.2
(18.0)
234.2
0.0
259.2

Inc. Before Tax
27.0
(8.0)
24.0
27.0
(9.0)
32.0
22.0
7.0
39.0
33.0
(10.0)
39.0
109.0
(20.0)
134.0
19.0
(11.0)
43.0
21.0
(11.0)
48.0
21.0
(4.0)
41.4
21.0
(2.0)
35.6
82.0
(28.0)
168.0
82.0
(20.0)
197.2
Taxes
Minority Interest
10.0
2.0
12.0
9.0
2.0
21.0
11.0
0.0
28.0
3.0
1.0
35.0
33.0
5.0
96.0
7.0
1.0
35.0
6.0
0.0
42.0
6.7
0.0
34.6
5.8
0.0
29.8
25.6
1.0
141.5
32.5
1.0
163.6
Nonrecurring Items
Discontinued Ops
$12.0
(20.0)
0.0
$1.0
208.0
(2.0)
$234.0
(6.0)
(26.0)
$3.0
(3.0)
(3.0)
$29.0
(3.0)
4.0
$43.0
$34.6
$29.8
(6.0)
1.0
$136.5
$163.6
98.7
98.7
97.6
97.6
101.1
101.1
101.3
101.3
99.7
99.7
101.2
101.2
102.9
102.9
101.1
101.1
99.4
99.4
101.2
101.2
96.8
96.8

EPS, Dil., Reported
$0.12
$0.12
$0.22
$0.01
$0.28
$2.31
$0.35
$0.03
$0.96
$2.51
$0.35
$0.29
$0.41
$0.42
$0.34
$0.34
$0.30
$0.30
$1.40
$1.35
$1.69
$1.69
Adjusted EBITDA,
EBITDA/Share
$70.0
$0.72
$78.0
$0.80
$80.0
$0.82
$80.0
$0.82
$308.0
$3.09
$79.0
$0.79
$87.0
$0.87
$83.4
$0.84
$77.6
$0.78
$327.0
$3.23
$360.1
$3.72
Revenue Assumptions
Year/Year % Chg.
Year/Year % Chg.
Aftermarket
Military
ROW
Organic Growth
Price Reductions
FX-Euro ($/100)
Revenue Calculation
Prod/Demand Chg
Pricing
FX-Euro
Other
Sales
COGS-Estimate
COGS-Adjustment
COGS-Total
Gross Profit
SG&A-Estimate
SG&A-Adjustment
SG&A-Total
Operating Income


% of Sales
Gross Margin
SG&A
Operating Margin
Net Margin
Adjusted EBITDA
Tax Rate
Sales
Operating Income
Net Income
182.0
(28.0)
$250.0
11.4%
6.6%
4.7%
1.3%
7.7%
41.7%
12.1%
6.9%
5.2%
2.2%
8.1%
28.1%
12.5%
5.6%
6.9%
2.8%
8.1%
28.2%
15.0%
8.4%
6.6%
3.8%
8.6%
7.7%
12.7%
6.8%
5.9%
2.5%
8.1%
24.6%
13.1%
7.3%
5.8%
4.0%
9.0%
16.3%
13.3%
6.6%
6.7%
4.9%
10.1%
12.5%
13.1%
6.8%
6.3%
3.7%
9.0%
16.3%
13.1%
6.8%
6.4%
3.5%
9.1%
16.3%
13.2%
6.9%
6.3%
4.0%
9.3%
15.2%
13.7%
6.5%
7.2%
4.5%
10.0%
16.5%
1.8%
115.0%
5.9%
72.4%
250.0%
248.6%
-0.7%
25.9%
-15.2%
-18.4%
2.6%
-38.0%
218.2%
210.0%
2.4%
9.9%
146.2%
140.0%
-3.1%
18.6%
191.7%
184.5%
-10.2%
16.0%
100.0%
89.7%
-6.2%
-14.2%
23.7%
23.6%
-8.1%
-11.9%
-14.8%
-13.1%
-6.9%
-0.4%
47.4%
45.2%
2.2%
16.7%
15.6%
20.9%
June 14, 2015

Brett D. Hoselton
Pg.3
51
Meritor - MTOR
Management Meeting

Revenue Assumptions
Year/Year % Chg.
Year/Year % Chg.
Aftermarket
Military
ROW
Organic Growth
Price Reductions
FX-Euro ($/100)
Revenue Calculation
Prod/Demand Chg
Pricing
FX-Euro
Other
Sales
COGS-Estimate
COGS-Adjustment
COGS-Total
Gross Profit
SG&A-Estimate
SG&A-Adjustment
SG&A-Total
Operating Income
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015E
2016E
463
32%
376
3%
0.0%
$121.70
582
26%
421
12%
0.0%
$125.47
621
7%
439
4%
0.0%
$123.08
484
-22%
479
9%
0.0%
$132.55
377
-22%
562
17%
0.0%
$150.31
231
-39%
266
-53%
0.0%
$135.47
257
11%
260
-2%
2.0%
-13.8%
37.0%
-1.7%
1.5%
$135.65
381
48%
383
47%
2.0%
-2.5%
10.0%
-2.4%
1.5%
$139.46
476
25%
379
-1%
0.0%
28.0%
-20.0%
-4.8%
1.5%
$129.84
440
-7%
354
-7%
0.0%
-33.8%
0.7%
-0.5%
1.5%
$131.22
500
14%
377
7%
4.5%
-55.0%
0.8%
1.5%
1.5%
$135.42
556
11%
361
-4%
-6.5%
-50.0%
0.8%
1.0%
1.0%
$114.38
548
-2%
369
2%
3.0%
-30.0%
2.5%
5.5%
1.0%
$110.00
$6,882
$7,788
$8,836
$8,903
$9,150
$7,221
$7,167
(965.0)
$4,457
$4,457.0
673.5
(77.0)
(83.8)
3.3
(389.0)
0.0
$4,584
$4,584.0
1,271.9
(87.8)
(150.5)
43.4
(994.0)
0.0
$4,667
$4,667.0
318.0
(74.8)
(240.9)
(76.3)
(45.0)
(130.0)
$4,418
$4,418.0
(351.1)
(61.0)
(19.8)
9.8
0.0
(295.0)
$3,701
$3,701.0
46.0
(56.2)
28.9
26.6
0.0
41.7
$3,788
$3,788.0
(111.5)
(36.8)
36.8
(126.4)
0.0
(25.0)
$3,525
$3,525.1
(73.6)
(34.5)
189.8
(29.1)
25.0
$3,603
6,130.0
752.0
400.0
352.0
7,064.0
724.0
435.0
289.0
8,072.0
764.0
471.0
293.0
$8,197.8
70.2
8,263.0
640.0
391.3
(2.3)
394.0
246.0
$8,511.8
7.2
8,519.0
631.0
381.4
(1.4)
380.0
251.0
$6,695.7
14.3
6,710.0
511.0
370.6
15.4
386.0
125.0
$6,644.8
(130.8)
6,514.0
653.0
370.3
67.7
438.0
215.0
$4,093.4
42.6
4,136.0
321.0
355.1
(45.1)
310.0
11.0
$4,212.9
(128.9)
4,084.0
500.0
355.8
(9.8)
346.0
154.0
$4,107.0
86.0
4,193.0
474.0
294.6
(12.6)
282.0
192.0
$3,887.8
45.2
3,933.0
485.0
257.4
9.6
267.0
4.0
214.0
$3,256.9
39.1
3,296.0
405.0
214.7
39.3
254.0
(52.0)
203.0
$3,333.4
(27.4)
3,306.0
482.0
284.1
(27.1)
257.0
2.0
223.0
$3,084.5
(23.1)
3,061.3
463.8
246.8
(4.0)
242.7
(1.0)
222.0
$3,134.4
(25.0)
3,109.4
493.4
252.2
(18.0)
234.2
0.0
259.2

Inc. Before Tax
105.0
3.0
244.0
104.0
(24.0)
209.0
107.0
(10.0)
196.0
127.0
(28.0)
147.0
124.0
(36.0)
163.0
104.0
(36.0)
57.0
89.0
(43.9)
169.9
88.0
(19.0)
(58.0)
99.0
(46.0)
101.0
95.0
(73.0)
170.0
95.0
(59.0)
178.0
107.0
(19.0)
115.0
109.0
(20.0)
134.0
82.0
(28.0)
168.0
82.0
(20.0)
197.2
Taxes
Minority Interest
78.0
11.0
155.0
68.0
5.0
136.0
53.4
10.0
132.6
34.0
3.0
110.0
33.0
12.0
118.0
5.0
15.0
37.0
37.9
15.0
117.0
48.0
(3.0)
(103.0)
62.0
14.0
25.0
77.0
17.0
76.0
56.0
11.0
111.0
74.0
2.0
39.0
33.0
5.0
96.0
25.6
1.0
141.5
32.5
1.0
163.6
Nonrecurring Items
Discontinued Ops
(48.0)
$107.0
$136.0
(172.6)
($40.0)
(98.0)
$12.0
(293.0)
($175.0)
(10.0)
$15.0
(23.0)
$53.0
(59.0)
$52.0
(57.0)
($18.0)
(6.0)
1.0
$136.5
$163.6
87.2
87.2
96.8
96.8
97.2
97.2
97.2
97.2
99.7
99.7
101.2
101.2
96.8
96.8

EPS, Dil., Reported
Adjusted EBITDA,
EBITDA/Share
% of Sales
Gross Margin
SG&A
Operating Margin
Net Margin
Adjusted EBITDA
Tax Rate
Sales
Operating Income
Net Income
(191.4)
($154.4)
(208.0)
($91.0)
(1,109.0)
($1,212.0)
72.6
72.6
182.0
(28.0)
$250.0
67.2
67.2
67.9
67.9
68.6
68.6
69.9
69.9
69.3
69.3
71.1
71.1
72.4
72.4
$2.31
$1.59
$2.00
$2.00
$1.93
($0.58)
$1.57
$0.17
$1.69
($2.51)
$0.52
($2.17)
$1.60
($1.26)
($1.42)
($16.70)
$0.29
$0.17
$0.79
$0.55
$1.14
$0.53
$0.40
($0.19)
$0.96
$2.51
$1.40
$1.35
$1.69
$1.69
$534.0
$7.95
$522.0
$7.69
$476.0
$6.94
$453.0
$6.48
$447.0
$6.45
$275.0
$3.87
$388.9
$5.37
$114.0
$1.57
$266.0
$3.05
$342.0
$3.53
$345.0
$3.55
$261.0
$2.69
$308.0
$3.09
$327.0
$3.23
$360.1
$3.72
10.9%
5.8%
5.1%
2.3%
7.8%
32.0%
9.3%
5.6%
3.7%
1.7%
6.7%
32.5%
8.6%
5.3%
3.3%
1.5%
5.4%
27.2%
7.2%
4.4%
2.8%
1.2%
5.1%
23.1%
6.9%
4.2%
2.7%
1.3%
4.9%
20.2%
7.1%
5.3%
1.7%
0.5%
3.8%
8.8%
9.1%
6.1%
3.0%
1.6%
5.4%
22.3%
7.2%
7.0%
0.2%
2.6%
-82.8%
10.9%
7.5%
3.4%
0.5%
5.8%
61.4%
10.2%
6.0%
4.1%
1.6%
7.3%
45.3%
11.0%
6.1%
4.8%
2.5%
7.8%
31.5%
10.9%
5.5%
5.5%
1.1%
7.1%
64.3%
12.7%
6.8%
5.9%
2.5%
8.1%
24.6%
13.2%
6.9%
6.3%
4.0%
9.3%
15.2%
13.7%
6.5%
7.2%
4.5%
10.0%
16.5%
1.1%
26.2%
69.7%
67.3%
13.2%
-17.9%
-12.3%
-13.2%
13.5%
1.4%
-2.5%
-3.5%
0.8%
-16.0%
-17.0%
-18.6%
2.8%
2.0%
7.3%
7.6%
-21.1%
-50.2%
-68.6%
-69.2%
-0.7%
72.0%
216.2%
207.6%
-37.8%
-94.9%
-188.0%
-188.6%
2.8%
1300.0%
1.8%
24.7%
204.0%
173.9%
-5.3%
11.5%
46.1%
45.4%
-16.2%
-5.1%
-64.9%
-64.9%
2.4%
9.9%
146.2%
140.0%
-6.9%
-0.4%
47.4%
45.2%
2.2%
16.7%
15.6%
20.9%
June 14, 2015

Brett D. Hoselton
Pg.4
52
Meritor - MTOR
Management Meeting
Meritor, Inc. Balance Sheet Brett D. Hoselton, CFA (216) 689-0237

2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015E
2016E
Cash & Equivalents

Accounts Receivable
Inventories
Other Current Assets
Total Current Assets
$56.0
1,251.0
458.0
211.0
1,976.0
$103.0
1,327.0
543.0
266.0
2,239.0
$132.0
1,478.0
523.0
218.0
2,351.0
$187.0
1,655.0
541.0
787.0
3,170.0
$350.0
1,645.0
596.0
502.0
3,093.0
$409.0
1,223.0
541.0
216.0
2,389.0
$497.0
1,114.0
623.0
218.0
2,452.0
$95.0
694.0
374.0
97.0
1,260.0
$343.0
579.0
382.0
417.0
1,721.0
$217.0
712.0
460.0
70.0
1,459.0
$257.0
542.0
438.0
61.0
1,298.0
$318.0
596.0
414.0
56.0
1,384.0
$247.0
610.0
379.0
56.0
1,292.0
$530.5
567.7
351.0
56.0
1,505.1
$663.0
580.2
356.5
56.0
1,655.6
Property, Plant & Equip.-Net

Goodwill - Net
Other Assets
Total Assets
1,179.0
808.0
688.0
$4,651
1,332.0
951.0
731.0
$5,253
1,032.0
808.0
1,369.0
$5,560
1,013.0
801.0
886.0
$5,870
988.0
503.0
929.0
$5,513
738.0
520.0
1,142.0
$4,789
775.0
522.0
925.0
$4,674
445.0
438.0
365.0
$2,508
389.0
432.0
337.0
$2,879
421.0
431.0
352.0
$2,663
417.0
433.0
353.0
$2,501
417.0
434.0
335.0
$2,570
424.0
431.0
355.0
$2,502
447.0
431.0
205.0
$2,588
470.0
431.0
205.0
$2,762
Short-term Debt
Accounts Payable
Other Current Liabilities
Total Current Liabilities
$15.0
1,150.0
578.0
1,743.0
$20.0
1,311.0
547.0
1,878.0
$3.0
1,366.0
602.0
1,971.0
$131.0
1,483.0
909.0
2,523.0
$56.0
1,649.0
844.0
2,549.0
$18.0
1,342.0
719.0
2,079.0
$240.0
1,287.0
610.0
2,137.0
$97.0
674.0
518.0
1,289.0
670.0
720.0
1,390.0
$84.0
841.0
328.0
1,253.0
$18.0
697.0
313.0
1,028.0
$13.0
694.0
339.0
1,046.0
$7.0
680.0
351.0
1,038.0
$7.0
629.7
351.0
987.7
$7.0
639.6
351.0
997.6
Long-term Debt
Other Long-term Liabilities
Shareholders' Equity
Total Liab. & Shr. Eqty.
1,435.0
39.0
635.0
799.0
$4,651
1,541.0
39.0
832.0
963.0
$5,253
1,487.0
39.0
1,075.0
988.0
$5,560
1,451.0
58.0
963.0
875.0
$5,870
1,184.0
0.0
771.0
1,009.0
$5,513
1,130.0
0.0
1,037.0
543.0
$4,789
1,063.0
1,012.0
462.0
$4,674
1,080.0
1,416.0
(1,277.0)
$2,508
1,029.0
1,483.0
(1,023.0)
$2,879
950.0
1,421.0
(961.0)
$2,663
1,042.0
1,413.0
(982.0)
$2,501
1,125.0
1,221.0
(822.0)
$2,570
965.0
1,084.0
(585.0)
$2,502
965.0
1,084.0
(448.5)
$2,588
965.0
1,084.0
(284.9)
$2,762
13.4
6.2
1.5
14.1
6.0
1.6
15.1
6.3
1.6
15.5
5.7
1.6
15.0
5.5
1.6
11.8
5.0
1.4
11.2
6.1
1.5
8.3
4.9
1.2
10.8
7.2
1.7
10.0
7.2
1.7
8.8
7.0
1.7
7.7
6.5
1.5
8.3
6.3
1.5
8.4
6.0
1.4
8.8
6.3
1.3
0.7
1.1
0.8
1.2
0.8
1.2
0.7
1.3
0.8
1.2
0.8
1.1
0.8
1.1
0.6
1.0
0.7
1.2
0.7
1.2
0.8
1.3
0.9
1.3
0.8
1.2
1.1
1.5
1.2
1.7
Activity Ratios
Inventory Turnover
Receivable Turnover
Total Asset Turnover
Liquidity Ratios
Quick Ratio
Current Ratio
Debt Ratios
EBIT Interest Coverage
EBITDA Interest Coverage
Funds from Ops./Total Debt
Free Oper. CF/Total Debt
Long Term Debt/Capital
Total Debt/Capital
3.2
5.0
24.2%
11.8%
63.1%
63.4%
2.9
4.9
22.4%
3.9%
60.6%
60.9%
2.7
4.3
21.2%
22.0%
59.1%
59.2%
2.1
3.5
18.5%
0.6%
60.9%
62.9%
2.1
3.4
23.4%
20.6%
54.0%
55.1%
1.4
2.5
14.5%
1.5%
67.5%
67.9%
2.5
4.0
20.1%
-4.1%
69.7%
73.8%
0.4
1.3
-1.9%
-6.3%
1.8
2.5
9.2%
8.3%
2.5
3.2
13.7%
-3.1%
2.7
3.3
16.4%
11.7%
1736.7%
1359.0%
2.0
2.6
9.3%
-0.9%
371.3%
360.1%
2.1
2.7
16.8%
10.8%
253.9%
251.2%
2.8
3.6
21.4%
14.3%
186.8%
185.7%
3.0
3.7
23.7%
13.6%
141.9%
141.5%
Return On Investment Ratios

Return On Avg. Total Assets
Return On Average Equity
Return On Total Capital
5.0%
20.4%
15.4%
4.2%
15.4%
12.3%
3.9%
13.6%
11.2%
3.6%
11.8%
10.5%
3.8%
12.5%
11.5%
2.6%
4.8%
7.2%
3.9%
23.3%
13.5%
1.6%
2.3%
4.6%
6.8%
3.0%
7.0%
8.3%
8.7%
June 14, 2015

Brett D. Hoselton
Pg.5
53
Meritor - MTOR
Management Meeting
Meritor, Inc. Cash Flow Brett D. Hoselton, CFA (216) 689-0237

2002
2003
2004
2005
2006
2007
2008
2009

Net Chg. In Working Capital
Other -Pension, etc.
Operating Cash Flow
$107.0
196.0
4.0
(123.0)
$184
$136.0
214.0
(96.0)
1.0
$255
($40.0)
183.0
164.0
(88.0)
$219
$12.0
182.0
(136.0)
(90.0)
($32)
($175.0)
172.0
116.0
327.0
$440
($154.4)
129.0
(29.0)
90.4
$36
($91.0)
145.0
(144.0)
265.0
$163
($1,077.0)
81.0
59.0
642.0
($295)
Capital Expenditures
Sale of Prop., Plant & Equip.
Acquisitions/Divestitures
Other
Investing Cash Flow
(184.0)
11.0
(25.0)
($198)
(193.0)
21.0
0.0
($172)
(152.0)
82.0
(50.0)
($120)
(146.0)
18.0
153.0
$25
(150.0)
65.0
(6.0)
201.0
$110
(120.0)
12.0
199.0
5.0
$96
(172.0)
9.0
(57.0)
5.0
($160)
4.0
(9.0)
(27.0)
($32)
(29.0)
(27.0)
($56)
6.0
(55.0)
(28.0)
($77)
112.0
(26.0)
(28.0)
(4.0)
$54
1.0
(264.0)
(28.0)
(100.0)
($391)
28.0
(37.0)
(49.0)
(29.0)
(11.0)
($98)
132.0
(29.0)
(6.0)
$97
1.0
20.0
7.0
8.0
4.0
25.0
(12.0)
(15.0)
4.0
($45)
$47
$29
$55
$163
$59
$88
($402)
$248
101.0
$56.0
56.0
$103.0
103.0
$132.0
132.0
$187.0
187.0
$350.0
350.0
$409.0
409.0
$497.0
497.0
$95.0
95.0
$343.0
$155.0
105.0
78.0
196.0
$534
$136.0
104.0
68.0
214.0
$522
$132.6
107.0
53.4
183.0
$476
$110.0
127.0
34.0
182.0
$453
$118.0
124.0
33.0
172.0
$447
$37.0
104.0
5.0
129.0
$275
$117.0
89.0
37.9
145.0
$389
($103.0)
88.0
48.0
81.0
$114
$7.95
$7.69
$6.94
$6.48
$6.45
$3.87
$5.37
$22.67
67.2
1,450.0
39.0
56.0
$2,956
$17.05
67.9
1,561.0
39.0
103.0
$2,654
$20.46
68.6
1,490.0
39.0
132.0
$2,800
$18.05
69.9
1,582.0
58.0
187.0
$2,715
$15.50
69.3
1,240.0
0.0
350.0
$1,964
$18.64
71.1
1,148.0
0.0
409.0
$2,063
$13.17
72.4
1,303.0
497.0
$1,759
5.5
5.1
5.9
6.0
4.4
7.5
Net Changes In Stock

Net Changes In ST Debt
Net Changes In LT Debt
Dividends Paid
Other
Financing Cash Flow
Exchange Rate Gain/(Loss)
Net Incr./Decr. In Cash
Beginning Cash Balance
Ending Cash Balance
EBITDA & Enterprise Value
Net Income
Net Interest Exp. (Inc.)
Taxes
MTOR Adjustments
EBITDA
EBITDA/Share
Stock Price
Average Comm. Shares Out
Short & Long Term Debt
Cash & Equivalents
Enterprise Value
Enterprise Value/EBITDA
Enterprise Value = (Price x Shares) + LTD + Preferred Equity/Convertible Debt - Cash / Marketable Securities.
4.5
2011
2012
2013
2014
2015E
2016E
$12.0
70.0
46.0
83.0
$211
$82.0
66.0
(69.0)
(38.0)
$41
$52.0
63.0
39.0
(77.0)
$77
($18.0)
67.0
(62.0)
(83.0)
($96)
$250.0
67.0
19.0
(89.0)
$247
$136.5
67.0
20.1
(10.0)
$214
$163.6
67.0
(8.1)
0.0
$222
(111.0)
125.0
$14
(56.0)
(8.0)
($64)
(105.0)
(69.0)
2.0
($172)
(89.0)
18.0
28.0
3.0
($40)
(54.0)
1.0
182.0
8.0
$137
(77.0)
160.0
$83
(90.0)
160.0
$70
(90.0)
($90)
(9.0)
(83.0)
0.0
(14.0)
($106)
209.0
0.0
(54.0)
0.0
(58.0)
$97
14.0
0.0
(12.0)
$2
25.0
0.0
(1.0)
$24
0.0
$0
0.0
$0
0.0
$0
(1.0)
1.0
(4.0)
($126)
$40
$61
$330
$284
$132
343.0
$217.0
217.0
$257.0
257.0
$318.0
318.0
$648.0
648.0
$931.5
931.5
$1,064.0
$25.0
99.0
62.0
70.0
10.0
$266
$76.0
95.0
77.0
66.0
28.0
$342
$111.0
95.0
56.0
63.0
20.0
$345
$39.0
107.0
74.0
67.0
(26.0)
$261
$96.0
109.0
33.0
67.0
3.0
$308
$141.5
82.0
25.6
67.0
11.0
$327
$163.6
82.0
32.5
67.0
15.0
$360
$1.57
$3.05
$3.53
$3.55
$2.69
$3.09
$3.23
$3.72
$4.65
72.6
1,177.0
95.0
$1,419
$12.56
87.2
1,029.0
343.0
$1,781
$16.55
96.8
1,034.0
217.0
$2,418
$6.50
97.2
1,060.0
257.0
$1,435
$5.68
97.2
1,138.0
318.0
$1,372
$11.19
99.7
972.0
247.0
$1,840
$14.17
101.2
972.0
530.5
$1,875
$14.17
96.8
972.0
663.0
$1,680
12.5
2010
6.7
6.0
0.0
0.0
0.0
0.0
$6
7.1
4.2
5.3
6.0
5.7
4.7
June 14, 2015

Brett D. Hoselton
Pg.6
54
Meritor - MTOR
Management Meeting
Table 1. Meritor EV/EBITDA Sensitivity Analysis - Brett D. Hoselton, CFA (216) 689-0237
($ in millions, except per share data; production in thousands)
Assumptions
2015-2016 New Business Revenue CAGR
Debt
Cash & Equivalents
Free Cash Flow
Share Repurchase
Dividend
Pension Contributions
Unfunded Pension
Deferred Tax Assets
FX-Euro-2014
FX-Euro-2016E
Shares
Comment
3%
$965
$247
$124
$105
$0
$11
$227
$0
$135.42
$110.00
97
As of 4Q14
As of 4Q14
Projected 2015E
Projected 2015E
Projected 2015E
Projected 2015E
As of 4Q14
Global Asset = $754 million.
Platform
N.A. Commercial Vehicle
N.A. Trailer
European Commercial Vehicle
Other
Production Estimate Range

475
525
220
270
280
330
-49%
-44%
575
320
380
-39%
625
370
430
-34%
2014 Sales
Chg-Euro
Chg-N.A. Commercial Vehicle
Chg-N.A. Trailer
Chg-Europe Commercial Vehicle
Chg-Other
New Business
2016E Sales
2016E Sales at Various Production Levels

$3,788
$3,788
$3,788
($94)
($110)
($127)
$215
$329
$444
$20
$111
$201
($183)
($94)
($5)
($909)
($817)
($724)
$178
$201
$224
$3,014
$3,407
$3,801
$3,788
($144)
$558
$292
$84
($631)
$247
$4,194
EBITDA
Margin
8.5%
9.5%
10.5%
11.5%
12.5%
2016E EBITDA at Various Sales Levels

$3,014
$3,407
$3,801
$256
$290
$323
$286
$324
$361
$316
$358
$399
$347
$392
$437
$377
$426
$475
$4,194
$356
$398
$440
$482
$524
FY 2014 OE Sales and Production

% Sls
Sales
Prod
23%
$871
381
10%
$379
209
18%
$682
383
49%
$1,856
NA
100%
$3,788
EV/EBITDA Analysis - Including Unfunded Pension Obligations as Debt
8.5%
9.5%
10.5%
11.5%
12.5%
$8
$10
$12
$14
$16
Stock Price at EV/EBITDA of 6.50

$10
$12
$12
$15
$15
$17
$17
$20
$19
$22
$14
$17
$20
$23
$26
Memo: EV/EBITDA Analysis - Excluding Unfunded Pension Obligations as Debt
8.5%
9.5%
10.5%
11.5%
12.5%
$10
$12
$14
$16
$18
Stock Price at EV/EBITDA of 6.50

$12
$15
$15
$17
$17
$20
$19
$22
$21
$25
$17
$20
$22
$25
$28
Source: Company data; KeyBanc Capital Markets estimates.
June 14, 2015

Brett D. Hoselton
Pg.7
55
Meritor - MTOR
Management Meeting
Table 2. Meritor EPS Sensitivity Analysis - Brett D. Hoselton, CFA (216) 689-0237
($ in millions, except per share data; production in thousands)
Assumptions
2015-2016 New Business Revenue CAGR
D&A
Interest Expense
EBITDA Adjustment
Minority Interest
Other
FX-Euro-2014
FX-Euro-2016E
Tax Rate
Shares
Comment
3%
$67
$82
$15 MTOR adjustment of various items
$1
$0
$135.42
$110.00
17% Cash taxes potentially lower due to NOLs.
97
Region
N.A. Commercial Vehicle
N.A. Trailer
European Commercial Vehicle
Other
Production Estimate Range

475
525
220
270
280
330
-49%
-44%
2014 Sales-CVS
Chg-Euro
Chg-N.A. Commercial Vehicle
Chg-N.A. Trailer
Chg-Europe Commercial Vehicle
Chg-Other
New Business
2016E Sales
2016E Sales at Various Production Levels

$3,788
$3,788
$3,788
$3,788
($94)
($110)
($127)
($144)
$215
$329
$444
$558
$20
$111
$201
$292
($183)
($94)
($5)
$84
($909)
($817)
($724)
($631)
$178
$201
$224
$247
$3,014
$3,407
$3,801
$4,194
EBITDA
Margin
8.5%
9.5%
10.5%
11.5%
12.5%
2016E EPS at Various Sales Levels

$3,014
$3,407
$3,801
$0.78
$1.07
$1.36
$1.05
$1.37
$1.69
$1.31
$1.66
$2.02
$1.57
$1.96
$2.35
$1.83
$2.25
$2.67
8.5%
9.5%
10.5%
11.5%
12.5%
$7
$9
$12
$14
$16
575
320
380
-39%
Stock Price at P/E of 9.0

$10
$12
$12
$15
$15
$18
$18
$21
$20
$24
625
370
430
-34%
FY 2014 OE Sales and Production

% Sls
Sales
Prod
23%
$871
381
10%
$379
209
18%
$682
383
49%
$1,856
NA
100%
$3,788
$4,194
$1.65
$2.01
$2.37
$2.74
$3.10
$15
$18
$21
$25
$28
Source: Company data; KeyBanc Capital Markets estimates.
June 14, 2015

Brett D. Hoselton
Pg.8
56
Disclosure Appendix
Oshkosh Corporation - OSK
We expect to receive or intend to seek compensation for investment banking services from Oshkosh Corporation within the next
three months.
As of the date of this report, we make a market in Oshkosh Corporation.
WABCO Holdings Inc. - WBC
We expect to receive or intend to seek compensation for investment banking services from WABCO Holdings Inc. within the next
three months.
As of the date of this report, we make a market in WABCO Holdings Inc..

June 14, 2015

Brett D. Hoselton
Pg.9
57
Rating Disclosures
Rating
Count
Percent
Count
Percent
Overweight [OW]
358
46.55
79
22.07
Sector Weight [SW]
391
50.85
67
17.14
20
2.60
5.00
Underweight [UW]
June 14, 2015

Brett D. Hoselton
Pg.10
58

Rating System
months.
Other Disclosures
June 14, 2015

Brett D. Hoselton
Pg.11
59
COMPANY NOTE
April 29, 2015
Meritor, Inc. (MTOR)
Neutral
Model Update Post 2Q15 Results; Reiterate Neutral

CONCLUSION
We are updating our model and adjusting our estimates to reflect 2Q15 results and
revised company guidance. Our price target remains at $13 based on 7x 2016 EV/
EBITDA (EBITDA $382.3M, $1.33B net debt, and 102.9M shares).
PRICE: US$12.84
TARGET: US$13.00
7.0x 2016E EV/EBITDA (EBITDA $382.3m,
$1.33bn net debt, 102.9m shares)
R I S K S T O A C H I E V E M E N T O F P R I C E TA R G E T
Alexander E. Potter
Sr Research Analyst, Piper Jaffray & Co.
612 303-6709, alexander.e.potter@pjc.com
Steel price fluctuations, macroeconomic sluggishness, competition from independent

and captive suppliers, customer concentration, high leverage
Winnie Dong
Research Analyst, Piper Jaffray & Co.
212 284-9338, winnie.x.dong@pjc.com
COMPANY DESCRIPTION
MTOR makes axles, drivelines, suspensions, and brakes for trucks & machinery.
Changes
Rating
Price Tgt
FY15E Rev (mil)
FY16E Rev (mil)
FY15E EPS
FY16E EPS
Previous
US$3,711.2
US$3,943.0
US$1.25
US$1.72
52-Week High / Low

Shares Out (mil)
Market Cap. (mil)
Avg Daily Vol (000)
Book Value/Share
Net Cash Per Share
Div (ann)
Fiscal Year End
Current
Neutral
US$13.00
US$3,528.5
US$3,801.8
US$1.36
US$1.74
US$15.65 / US$9.46
101.2
US$1,299.4
1,247
US$(5.79)
US$(7.22)
155%
US$0.00
Sep
Price Performance - 1 Year

USD
16
15
14
13
12
11
10
9
Apr-14 Jun-14
Aug-14
Oct-14
Dec-14
Feb-15
Apr-15
Source: Bloomberg
YEAR
REVENUE (US$ m)
EARNINGS PER SHARE (US$)
Dec
Mar
Jun
Sep
FY
CY
FY RM
CY RM
Dec
Mar
Jun
Sep
FY
CY
FY P/E
CY P/E
2014A
907.0
962.0
986.0
933.0
3,766.0
3,752.0
0.3x
0.3x
0.12
0.22
0.28
0.35
1.02
1.21
12.6x
10.6x
2015E
879.0A
864.0A
919.8
865.7
3,528.5
3,591.9
0.4x
0.4x
0.35A
0.41
0.32
0.29
1.36
1.41
9.4x
9.1x
2016E
942.3
955.9
990.2
913.3
3,801.8
3,782.1
0.3x
0.3x
0.39
0.44
0.50
0.41
1.74
1.70
7.4x
7.6x
Piper Jaffray does and seeks to do business with companies covered in its research reports. As a result, investors should be aware
that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as
only a single factor in making their investment decisions. This report should be read in conjunction with important disclosure
information, including an attestation under Regulation Analyst certification, found on pages 8 - 9 of this report or at the following
site: http://www.piperjaffray.com/researchdisclosures.
Meritor, Inc.
Page 1 of 9
60
MERITOR Inc. (MTOR)

Income Statement
Date: 4/29/2015
Current disclosure information for this company can be found at:
http://www.piperjaffray.com/researchdisclosures
Net sales
Cost of sales
Gross profit
Other expenses
Operating Income from con. Op.
Equity share unconsolidated affiliates
Other income(expense)
EBIT
Net interest income (expense)
Income before income taxes
Income taxes
Income from continuing operations
Minority interest
Earnings from discontinued ops
Net income (loss) attributed to MTOR
Adjustments
Adjusted net income (loss) from cont. OP
Diluted income per common share:
Reported EPS (GAAP)
Operating EPS (Non-GAAP)
Weighted average diluted shares
EBITDA
1Q
Dec-12
891.0
808.0
83.0
62.0
7.0
14.0
9.0
23.0
(29.0)
(6.0)
10.0
(16.0)
(5.0)
(21.0)
5.0
(11.0)
FY2013
2Q
3Q
Mar-13
Jun-13
908.0
993.0
813.0
884.0
95.0
109.0
65.0
67.0
12.0
48.0
18.0
(6.0)
10.0
15.0
28.0
9.0
(25.0)
(45.0)
3.0
(36.0)
7.0
1.0
(4.0)
(37.0)
(1.0)
(4.0)
(38.0)
10.0
70.0
6.0
33.0
4Q
Sep-13
902.0
803.0
99.0
60.0
(54.0)
93.0
8.0
3.0
111.0
(27.0)
84.0
45.0
39.0
2.0
4.0
41.0
(26.0)
11.0
1QA
Dec-13
900.0
795.0
105.0
59.0
2.0
44.0
8.0
52.0
(27.0)
25.0
11.0
14.0
2.0
(1.0)
11.0
1.0
13.0
FY2014A
2QA
3QA
Mar-14
Jun-14
954.0
986.0
836.0
863.0
118.0
123.0
66.0
54.0
2.0
1.0
50.0
68.0
9.0
201.0
59.0
269.0
(48.0)
(22.0)
11.0
247.0
8.0
11.0
3.0
236.0
2.0
3.0
(2.0)
4.0
234.0
23.0
(208.0)
24.0
28.0
($0.22)
($0.11)
96.7
46.0
($0.04)
$0.06
97.2
58.0
($0.39)
$0.34
97.2
87.0
$0.42
$0.11
98.7
70.0
$0.11
$0.13
98.7
72.0
$0.04
$0.25
97.6
80.0
Growth Rates:
Total Sales
EBIT
EBITDA
Net income
EPS (operating)
-23.1%
-34.3%
-41.8%
-4.5%
-197.7%
-21.7%
-61.6%
-38.9%
-120.0%
-81.3%
-10.8%
-89.9%
-7.4%
-177.6%
-10.8%
-8.5%
217.1%
-11.4%
720.0%
-65.1%
1.0%
126.1%
56.5%
-152.4%
-215.8%
5.1%
110.7%
37.9%
-200.0%
298.4%
Margins & Ratios:

GPM
SG&A
EBITDA
Tax rate
9.3%
7.0%
5.2%
-166.7%
10.5%
7.2%
6.4%
233.3%
11.0%
6.7%
8.8%
-2.8%
11.0%
6.7%
7.8%
53.6%
11.7%
6.6%
8.0%
44.0%
12.4%
6.9%
8.4%
72.7%
Meritor, Inc.
$2.31
$0.28
101.1
80.0
4QA
Sep-14
933.0
793.0
140.0
80.0
7.0
53.0
10.0
63.0
(33.0)
30.0
30.0
1.0
(26.0)
3.0
6.0
35.0
1QA
Dec-14
879.0
764.0
115.0
65.0
2.0
48.0
9.0
2.0
59.0
(19.0)
40
7.0
33
1.0
(3.0)
29.0
3.0
35
FY2015E
2QA
3Q
Mar-15
Jun-15
864.0
919.8
749.0
800.3
115.0
119.6
57.0
3.0
55.0
9.0
2.0
66.0
59.8
(21.0)
(21.0)
45
39
6.0
5.7
39
33
1.0
4.0
43.0
32.1
3.0
42
32
4Q
Sep-15
865.7
753.1
112.5
56.5
(20.8)
36
5.3
30
1.0
29.4
29
1Q
Dec-15
942.3
819.8
122.5
69.3
(21.6)
48
7.6
40
1.0
39.1
39
FY2016E
2Q
3Q
Mar-16
Jun-16
955.9
990.2
831.6
861.5
124.3
128.7
74.1
80.2
(21.3)
(21.1)
53
59
8.4
9.5
44
50
1.0
1.0
43.3
48.6
43
49
4Q
Sep-16
913.3
794.6
118.7
69.2
(20.9)
48
7.7
41
1.0
39.6
40
FY2012
FY2013
FY2014
FY2015E
FY2016E
4,418.0
3,933.0
485.0
285.0
27.0
173.0
52.0
7.0
232.0
(95.0)
137.0
56.0
81.0
11.0
(18.0)
52.0
41.0
111.0
3,694.0
3,308.0
386.0
254.0
13.0
119.0
42.0
3.0
171.0
(126.0)
45.0
63.0
(18.0)
2.0
(2.0)
(22.0)
59.0
39.0
3,758.0
3,269.0
489.0
258.0
12.0
219.0
228.0
447.0
(130.0)
317.0
31.0
286.0
5.0
(31.0)
252.0
(178.0)
105.0
3,528.5
3,066.4
462.1
122.0
5.0
103.0
18.0
4.0
241.2
(81.7)
159.5
24.0
135.5
3.0
1.0
133.5
6.0
138.5
3,801.8
3,307.5
494.2
292.8
(84.9)
207.9
33.3
174.6
4.0
170.6
170.6
$2.54
$1.05
99.7
318.0
$1.31
$1.36
101.6
326.5
$1.74
$1.74
97.9
382.3
$0.03
$0.35
101.3
80.0
$0.29
$0.35
101.2
79.0
$0.42
$0.41
102.9
87.0
$0.32
$0.32
101.8
81.9
$0.29
$0.29
100.7
78.6
$0.39
$0.39
99.5
91.6
$0.44
$0.44
98.4
96.4
$0.50
$0.50
97.3
102.6
$0.41
$0.41
96.2
91.7
$0.54
$1.14
97.2
345.0
($0.22)
$0.40
97.1
261.0
-0.7%
2888.9%
-8.0%
-715.8%
-18.4%
3.4%
-43.2%
14.3%
-92.7%
210.0%
-2.3%
13.5%
9.7%
163.6%
162.6%
-9.4%
11.9%
8.7%
975.0%
66.0%
-6.7%
-77.8%
2.3%
-86.3%
13.9%
-7.2%
-10.4%
-1.7%
880.6%
-15.4%
7.2%
17.5%
15.9%
34.9%
13.6%
10.6%
12.3%
10.8%
0.7%
7.8%
7.7%
34.1%
25.3%
51.4%
58.4%
5.5%
22.5%
16.6%
34.5%
40.7%
-4.4%
-8.7%
NA
-17.5%
34.1%
-16.4%
-26.3%
-24.3%
-142.3%
-64.9%
1.7%
161.4%
21.8%
-1245.5%
162.5%
-6.1%
-46.0%
2.7%
-47.0%
29.5%
7.7%
21.4%
17.1%
27.8%
27.9%
12.5%
5.5%
8.1%
4.5%
15.0%
8.6%
8.6%
0.0%
13.1%
7.4%
9.0%
17.5%
13.3%
0.1
10.1%
13.3%
13.0%
0.0%
8.9%
14.7%
13.0%
0.0%
9.1%
14.8%
13.0%
0.0%
9.7%
16.0%
13.0%
0.0%
10.1%
16.0%
13.0%
0.0%
10.4%
16.0%
13.0%
0.0%
10.0%
16.0%
11.0%
6.5%
7.8%
40.9%
10.4%
6.9%
7.1%
140.0%
13.0%
6.9%
8.5%
9.8%
13.1%
3.5%
9.3%
15.0%
13.0%
0.0%
10.1%
16.0%
Page 2 of 9
61
MERITOR Inc. (MTOR)

Segment & Regional Revenue Analysis
1Q
Dec-12
Revenue by Segment & Geography
North America
Europe
China
Sales Growth (y/y%) by Segment & Geography
North America
Europe
China
Revenue Seasonality Assumptions
Meritor, Inc.
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
715
203
918
(27.0)
891
712
224
936
(28.0)
908
784
238
1,022
(29.0)
993
709
233
942
(33.0)
909
1QA
Dec-13
30.0
727
208
935
(28.0)
907
-26.7%
-6.9%
-23.1%
-20.6%
-23.1%
-25.2%
-7.8%
-21.7%
-20.0%
-21.7%
-13.2%
-2.5%
-10.9%
-14.7%
-10.8%
-9.5%
0.4%
-7.2%
13.8%
-7.8%
24.5%
22.6%
24.4%
24.9%
26.8%
26.5%
24.3%
25.9%
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3Q
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
(PJC est)
FY2012
(PJC est)
FY2013
(PJC est)
FY2014
FY2015E
FY2016E
763
225
988
(34.0)
954
761
259
1,020
(34.0)
986
729
240
969
(36.0)
933
703
208
911
(32.0)
879
681
212
893
(29.0)
864
716
235
951
(31.4)
920
676
219
895
(29.5)
866
767
208
975
(32.2)
942
764
224
989
(32.6)
956
782
242
1,024
(33.8)
990
718
226
944
(31.2)
913
1,836.4
712.7
484.0
262.6
317.2
3,613.0
937.0
4,550.0
(132.0)
4,418.0
1,468.6
616.8
463.2
142.4
229.0
2,920.0
898.0
3,818.0
(117.0)
3,701.0
1,527.8
640.3
422.5
151.2
238.2
2,980.0
920.0
3,900.0
(134.0)
3,766.0
1,693.3
591.7
180.0
121.0
190.5
2,776.4
874.0
3,650.4
(121.9)
3,528.5
1,825.4
627.2
198.0
133.1
247.7
3,031.3
900.2
3,931.5
(129.7)
3,801.8
1.7%
2.5%
1.9%
3.7%
1.8%
7.2%
0.4%
5.6%
21.4%
5.1%
-2.9%
8.8%
-0.2%
17.2%
-0.7%
2.8%
3.0%
2.9%
9.1%
2.6%
-3.3%
0.0%
-2.6%
14.3%
-3.1%
-10.7%
-5.8%
-9.6%
-14.7%
-9.4%
-5.9%
-9.2%
-6.7%
-7.7%
-6.7%
-7.2%
-8.8%
-7.6%
-17.9%
-7.2%
9.1%
-0.2%
7.0%
0.5%
7.2%
12.2%
5.7%
10.7%
12.5%
10.6%
9.2%
3.0%
7.7%
7.7%
7.7%
6.2%
3.4%
5.5%
5.5%
5.5%
20.4%
-17.0%
-37.2%
-18.6%
-9.7%
-5.6%
-1.3%
-4.8%
-14.8%
-4.4%
-20.0%
-13.5%
-4.3%
-45.8%
-27.8%
-19.2%
-4.2%
-16.1%
-11.4%
-16.2%
4.0%
3.8%
-8.8%
6.2%
4.0%
2.1%
2.4%
2.1%
14.5%
1.8%
10.8%
-7.6%
-57.4%
-20.0%
-20.0%
-6.8%
-5.0%
-6.4%
-9.0%
-6.3%
7.8%
6.0%
10.0%
10.0%
30.0%
9.2%
3.0%
7.7%
6.4%
7.7%
24.4%
22.6%
25.6%
24.5%
25.5%
28.2%
24.5%
26.1%
25.3%
23.8%
24.5%
24.3%
25.8%
26.9%
24.4%
25.0%
25.3%
23.1%
25.2%
24.9%
25.8%
26.9%
23.7%
25.1%
Page 3 of 62
9
MERITOR Inc. (MTOR)

Segment Analysis
Segment Analysis
Revenue by Segment
Segment EBITDA & EBIT
Unallocated costs, net
Adjusted EBITDA
Depreciation and Amortization
Other costs
EBIT
1Q
Dec-12
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3Q
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
FY2013
FY2014
FY2015E FY2016E
715.0
203.0
(27.0)
891.0
712.0
224.0
(28.0)
908.0
784.0
238.0
(29.0)
993.0
709.0
227.0
(34.0)
902.0
727.0
202.0
(29.0)
900.0
763.0
225.0
(34.0)
954.0
761.0
259.0
(34.0)
986.0
729.0
240.0
(36.0)
933.0
703.0
208.0
(32.0)
879.0
681.0
212.0
(29.0)
864.0
716.1
235.1
(31.4)
919.8
676.3
218.9
(29.5)
865.7
766.8
207.7
(32.2)
942.3
764.4
224.1
(32.6)
955.9
781.9
242.1
(33.8)
990.2
718.2
226.3
(31.2)
913.3
3,613.0
937.0
(132.0)
4,418.0
2,920.0
892.0
(118.0)
3,694.0
2,980.0
913.0
(135.0)
3,758.0
2,776.4
874.0
(121.9)
3,528.5
3,031.3
900.2
(129.7)
3,801.8
34.0
13.0
47.0
(1.0)
46.0
(16.0)
(7.0)
23.0
37.0
22.0
59.0
(1.0)
58.0
(17.0)
(13.0)
28.0
67.0
25.0
92.0
(5.0)
87.0
(16.0)
(62.0)
9.0
54.0
24.0
78.0
(8.0)
70.0
(17.0)
58.0
111.0
53.0
21.0
74.0
(2.0)
72.0
(16.0)
(4.0)
52.0
57.0
24.0
81.0
(1.0)
80.0
(17.0)
(4.0)
59.0
55.0
26.0
81.0
(1.0)
80.0
(17.0)
206.0
269.0
53.0
34.0
87.0
(7.0)
80.0
(17.0)
63.0
56.0
25.0
81.0
(2.0)
79.0
(15.0)
(5.0)
59.0
57.0
30.0
87.0
87.0
(17.0)
(4.0)
66.0
58.0
25.9
83.9
(2.0)
81.9
(17.1)
(5.0)
59.8
55.5
25.2
80.6
(2.0)
78.6
(17.2)
(5.0)
56.5
68.2
25.3
93.6
(2.0)
91.6
(17.3)
(5.0)
69.3
71.1
27.3
98.4
(2.0)
96.4
(17.3)
(5.0)
74.1
75.1
29.5
104.6
(2.0)
102.6
(17.4)
(5.0)
80.2
66.1
27.6
93.7
(2.0)
91.7
(17.5)
(5.0)
69.2
270.0
81.0
351.0
(6.0)
345.0
(63.0)
(61.0)
221.0
192.0
84.0
276.0
(15.0)
261.0
(66.0)
(23.0)
172.0
218.0
110.0
328.0
(10.0)
318.0
(67.0)
198.0
443.0
226.5
106.0
332.5
(6.0)
326.5
(66.3)
(19.0)
241.2
280.5
109.8
390.3
(8.0)
382.3
(69.5)
(20.0)
292.8
EBITDA Margins
Adjusted EBITDA
EBIT
4.8%
6.4%
5.3%
5.2%
2.6%
5.2%
9.8%
6.5%
6.4%
3.1%
8.5%
10.5%
9.3%
8.8%
0.9%
7.6%
10.6%
8.6%
7.8%
12.3%
7.3%
10.4%
8.2%
8.0%
5.8%
7.5%
10.7%
8.5%
8.4%
6.2%
7.2%
10.0%
8.2%
8.1%
27.3%
7.3%
14.2%
9.3%
8.6%
6.8%
8.0%
12.0%
9.2%
9.0%
6.7%
8.4%
14.2%
10.1%
10.1%
7.6%
8.1%
11.0%
9.1%
8.9%
6.5%
8.2%
11.5%
9.3%
9.1%
6.5%
8.9%
12.2%
9.9%
9.7%
7.4%
9.3%
12.2%
10.3%
10.1%
7.8%
9.6%
12.2%
10.6%
10.4%
8.1%
9.2%
12.2%
10.3%
10.0%
7.6%
Incremental Margins
Commercial Truck & Industrial (y/y)
Aftermarket & Trailer (y/y)
Total Adjusted EBITDA (y/y)
Total Adjusted EBITDA (q/q)
10.4%
26.7%
12.3%
34.7%
15.8%
10.5%
14.7%
70.6%
3.4%
-50.0%
5.8%
34.1%
12.2%
-120.0%
10.7%
18.7%
158.3%
-800.0%
288.9%
-100.0%
39.2%
200.0%
47.8%
14.8%
52.2%
4.8%
100.0%
0.0%
-5.0%
76.9%
32.3%
0.0%
-12.5%
66.7%
-33.3%
1.9%
0.0%
-46.2%
-7.8%
-53.3%
-6.7%
0.6%
-2.8%
-9.2%
-4.7%
41.8%
2.0%
6.0%
19.2%
-104.6%
19.9%
16.9%
16.9%
-21.9%
10.3%
35.8%
25.9%
52.2%
29.5%
18.0%
25.3%
33.0%
27.4%
14.2%
Meritor, Inc.
FY2012
7.5%
8.6%
7.9%
7.8%
5.0%
6.6%
9.4%
7.5%
7.1%
4.7%
7.3%
12.0%
8.7%
8.5%
11.8%
8.2%
12.1%
9.4%
9.3%
6.8%
9.3%
12.2%
10.3%
10.1%
7.7%
11.3%
-6.7%
11.6%
43.3%
123.8%
89.1%
-4.2%
10.2%
-3.7%
21.2%
14.5%
20.4%
Page 4 of 9
63
MERITOR Inc. (MTOR)

Balance Sheet
1Q
Dec-12
ASSETS
Accounts receivable
Inventories
Total current assets
PP&E
Goodwill
Other assets
Total Assets
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable, deferred revenues and other
Short-term debt (incl. curr. port. of LT debt)
Total current liabilities
Long term debt
Retirement benefits
Others
Total Liabilities
Total equity (deficit)
% sales analysis:
LTM sales
LTM COGS
AR
Inventory
AP as % of COGS
Net Working Capital as % of Sales
Meritor, Inc.
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3Q
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16
Jun-16
4Q
Sep-16
139.0
483.0
463.0
56.0
1,141.0
407.0
433.0
360.0
2,341.0
117.0
555.0
420.0
54.0
1,146.0
395.0
427.0
369.0
2,337.0
228.0
596.0
411.0
51.0
1,286.0
384.0
427.0
380.0
2,477.0
318.0
596.0
414.0
56.0
1,384.0
417.0
434.0
335.0
2,570.0
300.0
534.0
432.0
57.0
1,323.0
410.0
436.0
328.0
2,497.0
233.0
618.0
436.0
58.0
1,345.0
410.0
437.0
339.0
2,531.0
303.0
644.0
441.0
56.0
1,444.0
411.0
439.0
516.0
2,810.0
247.0
610.0
379.0
56.0
1,292.0
424.0
431.0
355.0
2,502.0
214.0
511.0
379.0
58.0
1,162.0
407.0
423.0
354.0
2,346.0
207.0
545.0
365.0
55.0
1,172.0
387.0
414.0
344.0
2,317.0
219.2
514.2
366.8
55.0
1,155.1
399.3
414.0
344.0
2,312.5
238.8
504.6
359.9
55.0
1,158.2
409.9
414.0
344.0
2,326.1
238.3
513.6
366.4
55.0
1,173.3
413.8
414.0
344.0
2,345.1
240.1
526.8
375.7
55.0
1,197.6
418.0
414.0
344.0
2,373.6
247.5
536.8
382.9
55.0
1,222.3
422.8
414.0
344.0
2,403.1
249.3
543.7
387.8
55.0
1,235.7
425.9
414.0
344.0
2,419.6
597.0
297.0
23.0
917.0
1,032.0
1,070.0
333.0
3,352.0
616.0
297.0
25.0
938.0
1,030.0
1,056.0
327.0
3,351.0
657.0
328.0
23.0
1,008.0
1,144.0
1,043.0
341.0
3,536.0
694.0
339.0
13.0
1,046.0
1,125.0
886.0
335.0
3,392.0
651.0
323.0
12.0
986.0
1,126.0
875.0
318.0
3,305.0
696.0
345.0
6.0
1,047.0
1,082.0
868.0
316.0
3,313.0
715.0
351.0
5.0
1,071.0
1,086.0
861.0
319.0
3,337.0
680.0
351.0
7.0
1,038.0
965.0
775.0
309.0
3,087.0
597.0
292.0
5.0
894.0
962.0
759.0
307.0
2,922.0
618.0
281.0
5.0
904.0
945.0
737.0
301.0
2,887.0
605.7
281.0
5.0
891.7
927.5
737.0
309.0
2,865.2
613.3
281.0
5.0
899.3
910.0
737.0
318.0
2,864.3
624.4
281.0
5.0
910.4
892.5
737.0
319.0
2,858.9
641.0
281.0
5.0
927.0
875.0
737.0
320.0
2,859.0
653.2
281.0
5.0
939.2
857.5
737.0
321.0
2,854.7
661.5
281.0
5.0
947.5
840.0
737.0
322.0
2,846.5
(1,041.0)
30.0
(1,042.0)
28.0
(1,086.0)
27.0
(850.0)
28.0
(838.0)
30.0
(813.0)
31.0
(558.0)
31.0
(612.0)
27.0
(603.0)
27.0
(596.0)
26.0
(578.7)
26.0
(564.1)
26.0
(539.9)
26.0
(511.4)
26.0
(477.6)
26.0
(452.9)
26.0
4,150.0
3,688.0
11.6%
11.2%
16.2%
8.0%
3,898.0
3,475.0
14.2%
10.8%
17.7%
8.7%
3,778.0
3,378.0
15.8%
10.9%
19.4%
8.8%
3,694.0
3,308.0
16.1%
11.2%
21.0%
9.0%
3,703.0
3,295.0
14.4%
11.7%
19.8%
9.1%
3,749.0
3,318.0
16.5%
11.6%
21.0%
9.1%
3,742.0
3,297.0
17.2%
11.8%
21.7%
9.1%
3,773.0
3,287.0
16.2%
10.0%
20.7%
8.8%
3,752.0
3,256.0
13.6%
10.1%
18.3%
8.8%
3,662.0
3,169.0
14.9%
10.0%
19.5%
8.9%
3,595.8
3,106.3
14.3%
10.2%
19.5%
8.6%
3,528.5
3,066.4
14.3%
10.2%
20.0%
8.1%
3,591.9
3,122.2
14.3%
10.2%
20.0%
7.6%
3,683.7
3,204.9
14.3%
10.2%
20.0%
7.3%
3,754.1
3,266.1
14.3%
10.2%
20.0%
7.0%
3,801.8
3,307.5
14.3%
10.2%
20.0%
6.9%
Page 5 of 9
64
MERITOR Inc. (MTOR)

Statement of Cash Flows
1Q
Dec-12
Cash flows from operating activities:
Net income (loss)
(16.0)
Depreciation and amortization
16.0
Exp assoc. with share-based comp, stock option Deferred income taxes
Other
32.0
Loss on sale of assets
Changes in assets and liabilities:
Receivables
59.0
Inventories
(25.0)
Accounts payable
(100.0)
Accrued expenses
Other assets and liabilities
(47.0)
Net cash provided by operating activities
(81.0)
FY2013
2Q
3Q
Mar-13
Jun-13
4Q
Sep-13
1QA
Dec-13
FY2014A
2QA
3QA
Mar-14
Jun-14
4QA
Sep-14
1QA
Dec-14
FY2015E
2QA
3Q
Mar-15
Jun-15
4Q
Sep-15
1Q
Dec-15
FY2016E
2Q
3Q
Mar-16 Jun-16
4Q
Sep-16
FY2012
FY2013
FY2014
FY2015E
FY2016E
(4.0)
17.0
(97.0)
-
(37.0)
16.0
62.0
-
39.0
18.0
41.0
-
14.0
16.0
81.0
-
3.0
17.0
(44.0)
-
236.0
17.0
(203.0)
-
30.0
17.0
10.0
-
33.0
15.0
46.0
-
39.0
17.0
(114.0)
-
33.1
17.1
-
30.4
17.2
-
40.1
17.3
-
44.3
17.3
-
49.6
17.4
-
40.6
17.5
-
81.0
63.0
108.0
-
(18.0)
67.0
38.0
-
283.0
67.0
(156.0)
-
135.5
66.3
(68.0)
-
(72.0)
43.0
19.0
66.0
(28.0)
(41.0)
9.0
41.0
(14.0)
36.0
(3.0)
37.0
(140.0)
(8.0)
62.0
(18.0)
(43.0)
(116.0)
(4.0)
(84.0)
(4.0)
45.0
89.0
22.0
(26.0)
(5.0)
19.0
47.0
85.0
34.0
62.0
(35.0)
(6.0)
112.0
99.0
(83.0)
(119.0)
(9.0)
(34.0)
14.0
21.0
95.0
38.0
30.8
(1.8)
(12.3)
7.0
73.9
9.6
6.9
7.6
8.0
79.6
(9.1)
(6.5)
11.2
53.0
(13.1)
(9.4)
16.5
55.7
(10.1)
(7.2)
12.2
62.0
(6.8)
(4.9)
8.3
54.7
170.0
22.0
(144.0)
(211.0)
89.0
(54.0)
24.0
(3.0)
(135.0)
(81.0)
(14.0)
35.0
(14.0)
14.0
215.0
105.4
19.1
(66.7)
(9.0)
182.6
174.6
69.5
(39.1)
(27.9)
48.2
225.4
(15.0)
(15.0)
(8.0)
6.0
(2.0)
(8.0)
(5.0)
(13.0)
(23.0)
1.0
182.0
1.0
161.0
(12.0)
(12.0)
(13.0)
3.0
(10.0)
(14.0)
(14.0)
(38.0)
4.0
(34.0)
(12.0)
(12.0)
(11.0)
4.0
(7.0)
(29.4)
(29.4)
(27.7)
(27.7)
(21.2)
(21.2)
(21.5)
(21.5)
(22.3)
(22.3)
(20.5)
(20.5)
(89.0)
18.0
3.0
(68.0)
(54.0)
1.0
182.0
2.0
131.0
(77.0)
7.0
(70.0)
(80.1)
4.0
(76.1)
(85.5)
(85.5)
Cash flows from financing activities:

Principal payment on debt
(233.0)
Proceeds from debt
225.0
Dividend
Issuance of common stock
Repurchase of common stock
Others
(4.0)
Net cash provided (used) by financing activities (12.0)
(3.0)
(3.0)
(191.0)
275.0
2.0
86.0
(48.0)
1.0
(47.0)
(4.0)
3.0
(1.0)
(304.0)
225.0
1.0
(78.0)
(3.0)
(3.0)
(131.0)
1.0
(130.0)
(4.0)
(4.0)
(16.0)
(16.0)
(2.0)
(34.0)
(17.5)
(14.8)
(32.3)
(17.5)
(14.8)
(32.3)
(17.5)
(14.8)
(32.3)
(17.5)
(14.8)
(32.3)
(17.5)
(14.8)
(32.3)
(17.5)
(14.8)
(32.3)
(86.0)
100.0
(12.0)
2.0
(475.0)
500.0
(1.0)
24.0
(439.0)
225.0
2.0
(212.0)
(16.0)
(35.0)
(45.7)
(6.0)
(102.7)
(70.0)
(59.3)
(129.3)
Effect of exchange rate changes

Discontinued Operations - net cash used
(10.0)
1.0
10.0
(4.0)
6.0
(1.0)
(15.0)
(1.0)
(3.0)
(1.0)
3.0
2.0
-
(4.0)
-
(8.0)
-
(4.0)
-
1.0
16.0
(4.0)
(9.0)
(4.0)
-
(12.0)
-
(118.0)
(22.0)
111.0
90.0
(21.0)
(64.0)
70.0
(56.0)
(33.0)
(7.0)
12.2
19.6
(0.5)
1.8
7.4
1.8
40.0
61.0
(71.0)
(96.0)
39.0
(36.0)
45.0
28.0
25.0
(31.0)
129.0
(16.0)
68.0
9.0
76.0
71.0
286.0
74.0
80.0
(21.0)
74.0
27.0
83.0
44.5
76.9
51.9
73.6
31.8
86.6
34.2
91.4
39.8
97.6
34.1
86.7
236.0
(135.0)
238.0
138.0
510.0
Cash flows from investing activities:

Cash payments for PPE
Proceeds from sale PPE
Acquisitions, net of cash
Other
Net cash used by investing activities
Net increase (decrease) in cash

Free cash flow - before acquisitions
EBITDA
Meritor, Inc.
(8.2)
102.4
307.5
10.6
139.9
362.3
Page 6 of 65
9
MERITOR Inc. (MTOR)

Financial Ratios
1Q
WORKING CAPITAL MGMT
DSO
DIO
DPO
CCC
Inventory Turns
Payables Turns
Recivable Turns
LEVERAGE
Debt to EBITDA
Interest Coverage
Net Cash
RETURNS
ROS
ROE
ROA
ROIC
52.4
46.2
72.2
26.4
7.9
5.1
7.0
FY2013
2Q
3Q
58.1
46.7
76.3
28.5
7.8
4.8
6.3
56.8
46.3
74.9
28.2
7.9
4.9
6.4
58.4
46.1
76.2
28.3
7.9
4.8
6.3
FY13
FY14
FY15E
FY16E
261%
307%
3.8
-676
215%
243%
4.3
-596
9%
-43%
14%
17%
4%
-21%
6%
7%
5%
-26%
7%
8%
6%
-48%
10%
11%
0%
0%
0%
0.0%
2.3%
14.4%
3.3%
5.0%
4.2%
16.9%
6.2%
7.9%
5.8%
16.9%
8.5%
9.5%
6.5%
18.6%
10.4%
11.2%
CASH MANAGEMENT
CAPEX/FCF
-100% -135% -74% -40% -93% -560% 188%
FCF Yield
-15% -10% -15% -24%
-8%
-1%
3%
Dividend Yield
0%
0%
0%
0%
0%
0%
0%
Dividend (total) ($USD)
0.0
0.0
0.0
0.0
0.0
0.0
0.0
Dividend Per Share ($USD)
Share Buybacks ($USD)
-
56%
13%
0%
0.0
-
58%
50%
73%
78%
58%
61%
59%
61%
11%
12%
0%
0%
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
16.00 14.83 14.83 14.83 14.83 14.83 14.83
N/M
0.0%
0.0%
0.00
0.00
0.00
-40.0%
-23.0%
0.0%
0.00
0.00
0.00
55.8%
15.0%
0.0%
0.00
0.00
0.00
78.2%
61.1%
0.00
0.00
45.67
0.00
0.00
59.33
Meritor, Inc.
6%
-39%
9%
10%
50.5
41.4
70.1
21.7
8.8
5.2
7.2
FY12
270%
205%
4.0
-725
6%
-37%
9%
9%
51.6
41.8
70.7
22.7
8.7
5.2
7.1
4Q
395%
462%
1.9
-820
6%
-35%
9%
9%
52.6
43.0
71.5
24.0
8.5
5.1
6.9
FY2016E
2Q
3Q
2865%
355%
3.1
-803
0%
-2%
0%
0%
55.5
44.0
74.1
25.4
8.3
4.9
6.6
1Q
196% 197% 197% 172% 171% 171% 140% 154% 154% 155% 153% 152% 149% 146% 143% 140%
3.3x
3.8x
4.0x
4.2x
3.9x
3.6x
3.7x
3.5x
3.3x
3.1x
3.0x
2.9x
2.7x
2.6x
2.4x
2.3x
1.3
1.8
0.6
4.8
2.5
1.6
13.0
-3.9
3.9
4.0
3.7
3.5
4.0
4.3
4.6
4.2
-1,986 -1,994 -1,982 -1,706 -1,713 -1,723 -1,649 -1,500 -1,512 -1,480 -1,450 -1,413 -1,396 -1,377 -1,352 -1,333
6%
-34%
9%
9%
57.3
45.4
75.6
27.1
8.0
4.8
6.4
4Q
50.3
41.3
70.3
21.2
8.8
5.2
7.3
3%
-11%
4%
5%
58.3
47.2
75.6
30.0
7.7
4.8
6.3
FY2015E
2QA
3Q
57.6
44.0
77.0
24.7
8.3
4.7
6.3
1%
-5%
2%
3%
56.4
46.5
72.9
30.0
7.9
5.0
6.5
1QA
58.6
44.3
76.7
26.1
8.2
4.8
6.2
2%
-8%
3%
5%
54.5
47.4
71.2
30.7
7.7
5.1
6.7
4QA
56.2
47.0
76.7
26.5
7.8
4.8
6.5
1%
-5%
2%
3%
54.8
47.4
72.0
30.2
7.7
5.1
6.7
FY2014A
2QA
3QA
51.8
41.7
71.4
22.1
8.8
5.1
7.0
3%
-11%
5%
7%
54.5
47.4
72.2
29.7
7.7
5.1
6.7
1QA
50.4
41.3
70.5
21.3
8.8
5.2
7.2
5%
-19%
8%
13%
54.8
47.7
73.4
29.1
7.6
5.0
6.7
4Q
6%
-44%
10%
11%
Page 7 of 66
9
COMPANY NOTE
April 29, 2015
IMPORTANT RESEARCH DISCLOSURES
Notes: The boxes on the Rating and Price Target History chart above indicate the date of the Research Note, the rating, and the price target. Each
box represents a date on which an analyst made a change to a rating or price target, except for the first box, which may only represent the first Note
written during the past three years.
Legend:
I: Initiating Coverage
R: Resuming Coverage
T: Transferring Coverage
D: Discontinuing Coverage
S: Suspending Coverage
OW: Overweight
N: Neutral
UW: Underweight
NA: Not Available
UR: Under Review
Piper Jaffray
Rating
Count
Percent
Count
Percent
BUY [OW]
378
61.17
99
26.19
HOLD [N]
226
36.57
14
6.19
14
2.27
0.00
SELL [UW]
Note: Distribution of Ratings/IB Services shows the number of companies currently in each rating category from which Piper Jaffray and its affiliates
received compensation for investment banking services within the past 12 months. FINRA rules require disclosure of which ratings most closely
correspond with "buy," "hold," and "sell" recommendations. Piper Jaffray ratings are not the equivalent of buy, hold or sell, but instead represent
recommended relative weightings. Nevertheless, Overweight corresponds most closely with buy, Neutral with hold and Underweight with sell. See
Stock Rating definitions below.
Analyst Certification Alexander E. Potter, Sr Research Analyst

Analyst Certification Winnie Dong, Research Analyst
The views expressed in this report accurately reflect my personal views about the subject company and the subject security. In addition, no part of
my compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in this report.
Meritor, Inc.
Page 8 of 9
67
COMPANY NOTE
April 29, 2015
Research Disclosures
Piper Jaffray was making a market in the securities of Meritor, Inc. at the time this research report was published. Piper Jaffray will buy and sell
Meritor, Inc. securities on a principal basis.
Piper Jaffray research analysts receive compensation that is based, in part, on overall firm revenues, which include investment banking revenues.
Rating Definitions
Stock Ratings: Piper Jaffray ratings are indicators of expected total return (price appreciation plus dividend) within the next 12 months. At times
analysts may specify a different investment horizon or may include additional investment time horizons for specific stocks. Stock performance
is measured relative to the group of stocks covered by each analyst. Lists of the stocks covered by each are available at www.piperjaffray.com/
researchdisclosures. Stock ratings and/or stock coverage may be suspended from time to time in the event that there is no active analyst opinion
or analyst coverage, but the opinion or coverage is expected to resume. Research reports and ratings should not be relied upon as individual
investment advice. As always, an investors decision to buy or sell a security must depend on individual circumstances, including existing holdings,
time horizons and risk tolerance. Piper Jaffray sales and trading personnel may provide written or oral commentary, trade ideas, or other
information about a particular stock to clients or internal trading desks reflecting different opinions than those expressed by the research analyst.
In addition, Piper Jaffray offers technical research products that are based on different methodologies, may contradict the opinions contained in
fundamental research reports, and could impact the price of the subject security. Recommendations based on technical analysis are intended for
the professional trader, while fundamental opinions are typically suited for the longer-term institutional investor.
Overweight (OW): Anticipated to outperform relative to the median of the group of stocks covered by the analyst.
Neutral (N): Anticipated to perform in line relative to the median of the group of stocks covered by the analyst.
Underweight (UW): Anticipated to underperform relative to the median of the group of stocks covered by the analyst.
Other Important Information
The material regarding the subject company is based on data obtained from sources we deem to be reliable; it is not guaranteed as to accuracy and
does not purport to be complete. This report is solely for informational purposes and is not intended to be used as the primary basis of investment
decisions. Piper Jaffray has not assessed the suitability of the subject company for any person. Because of individual client requirements, it is not, and
it should not be construed as, advice designed to meet the particular investment needs of any investor. This report is not an offer or the solicitation
of an offer to sell or buy any security. Unless otherwise noted, the price of a security mentioned in this report is the market closing price as of the
end of the prior business day. Piper Jaffray does not maintain a predetermined schedule for publication of research and will not necessarily update
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presumed that the fundamental equity analyst(s) who authored this report has had discussions with the subject company to ensure factual accuracy
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Notice to customers: This material is not directed to, or intended for distribution to or use by, any person or entity if Piper Jaffray is prohibited or
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Copyright 2015 Piper Jaffray. All rights reserved.
Meritor, Inc.
Page 9 of 68
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Table of Contents

These reports were compiled using a product of Thomson Reuters

Meritor, Inc. (MTOR)

Upping Price Target by $1 to Reflect a Stronger Margin Outlook, Staying Neutral

We are reiterating our Neutral rating on MTOR following a solid Q3 characterized by

52-Week High / Low

Price Performance - 1 Year

Steel price fluctuations, macroeconomic sluggishness, competition from independent

EARNINGS PER SHARE (US$)

Piper Jaffray Co.

MERITOR Inc. (MTOR)

Margins & Ratios:

MERITOR Inc. (MTOR)

Piper Jaffray Co.

MERITOR Inc. (MTOR)

Piper Jaffray Co.

MERITOR Inc. (MTOR)

Piper Jaffray Co.

MERITOR Inc. (MTOR)

Statement of Cash Flows

Cash flows from financing activities:

Effect of exchange rate changes

Cash flows from investing activities:

Net increase (decrease) in cash

Piper Jaffray Co.

MERITOR Inc. (MTOR)

IMPORTANT RESEARCH DISCLOSURES

Analyst Certification Alexander E. Potter, Sr Research Analyst

July 29, 2015

INDUSTRIAL: Construction & Farm Machinery & Heavy

Brett D. Hoselton, CFA / (216) 689-0237

MTOR: Increasingly Optimistic on LT EBITDA

Maintaining SW: 1) we are increasingly optimistic the next 3-year plan to be

Key Investment Points

Irina Hodakovsky / (216) 689-5374

Sources: Company reports, FactSet, KeyBanc Capital

Market Cap. (M)

Shares Out. (M)

Enterprise Value (M)

Sources: Company reports, FactSet, KeyBanc Capital

Sources: Company reports, FactSet, KeyBanc Capital Markets Inc.

July 29, 2015

Meritor, Inc. Earnings Brett D. Hoselton, CFA (216) 689-0237

Interest Exp. (Inc.), Net

EPS, Dil., Recurring

Avg. Shrs Out., Basic (Mil.)

Memo: Pro Forma FASB 142

Source: Company data; KeyBanc Capital Markets Inc. estimates.

July 29, 2015

Meritor, Inc. Earnings Brett D. Hoselton, CFA (216) 689-0237

Interest Exp. (Inc.), Net

Avg. Shrs Out., Basic (Mil.)

Source: Company data; KeyBanc Capital Markets Inc. estimates.

July 29, 2015

Meritor, Inc. Balance Sheet Brett D. Hoselton, CFA (216) 689-0237

Cash & Equivalents

Property, Plant & Equip.-Net

Return On Investment Ratios

Source: Company data; KeyBanc Capital Markets Inc. estimates.

July 29, 2015

Meritor, Inc. Cash Flow Brett D. Hoselton, CFA (216) 689-0237

Net Income, Reported

Net Changes In Stock

Source: Company data; KeyBanc Capital Markets Inc. estimates.