WABCO CORPORATE OVERVIEW 2010

© 2010 WABCO Holdings Inc. All rights reserved.

FORWARD LOOKING STATEMENTS

Comments in this document contain certain forward-looking statements, which are based on
management’s good faith expectations and beliefs concerning future developments. Actual
results may differ materially from these expectations as a result of many factors. These
factors include, but are not limited to, the risks and uncertainties described in the “Risk
Factors” section and the “Forward Looking Statements” section of WABCO’s Form 10-K, as
well as in the “Management’s Discussion and Analysis of Financial Condition and Results of
Operations - Information Concerning Forward Looking Statements” section of WABCO’s
Form 10-Q Quarterly Reports. WABCO does not undertake any obligation to update such
forward-looking statements. All market and industry data are based on Company estimates.

This presentation contains certain non-GAAP financial measures as that term is defined by
the SEC. EBIT and sales excluding the effects of foreign exchange are non-GAAP financial
measures. Additionally, gross profit, gross profit margin, operating income, operating
income margin, EBIT, EBIT margin, net income and net income per diluted share on a
"performance basis" are non-GAAP financial measures that exclude separation and
streamlining costs, one-time impact from the Indian joint venture transactions, discrete and
other one-time tax items, as well as a one-time transitional impact from a new accounting
standard (ASC topic 805, formerly known as SFAS No. 141(R)) that WABCO adopted in
2009, as applicable. Lastly, "free cash flow" presents our net cash provided by operating
activities less purchases of property, plant, equipment and computer software. These
measures should be considered in addition to, not as a substitute for, GAAP measures.
Management believes that presenting these non-GAAP measures is useful to shareholders
because it enhances their understanding of how management assesses the operating
performance of the Company's business. Certain non-GAAP measures may be used, in
part, to determine incentive compensation for current employees. Reconciliations of the
non-GAAP financial measures to the most comparable GAAP measures are available in
WABCO’s quarterly results presentations posted on the company’s website.

2010 2
ABOUT WABCO

GLOBAL TECHNOLOGY LEADER in commercial vehicle industry

Sales of $1.5 BILLION in 2009

Sales of $2.6 BILLION in 2008

Over 8,100 EMPLOYEES in 31 countries; 1,250 ENGINEERS

16 MANUFACTURING LOCATIONS in 10 countries

Listed on NYSE with the stock symbol WBC

2010 3
MARKET FOCUS
AUDI
BMW
DAIMLER
Products, systems, services GENERAL
MOTORS
and support for vehicle
PSA
manufacturers and CIMC PEUGEOT
aftermarket customers GREAT DANE CITROEN
TRAILERS SSANGYOUNG
KÖGEL among others
KRONE
SCHMITZ
TRUCK CARGOBULL CAR
WABASH AFTERMARKET
CNHTC among others

DAIMLER Supporting
fleet and truck
HINO Motors
TRAILER BUS owners over
MAN vehicle
PACCAR lifetime
EVOBUS
SCANIA Distributors
MAN
TATA Motors Workshops
NISSAN
VOLVO Fleets
YUTONG
among others
among others

2010 4
MANUFACTURING LOCATIONS

(2)

2010 5
TECHNOLOGY AND INNOVATION
LEADER
Traction
New Generation
Control
Electronic Air Disc Brake
System
Stability OnGuard™
Pneumatic Control Air System Collision
Transmission Protector Mitigation ESCsmart™
Automation Adaptive System
System Cruise Control Hydraulic
Trailer Trailer OptiTurn™
Transmission RSSplus™
Electronically Electronic ECAS Automation Roll Stability
Braking Trailer OptiLoad™
Controlled Air for automotive System Support
Suspension System Trailer System C-comp clutch
(ECAS)
compressor

1981 1986 1996 1998 2000 2001 2003 2004 2006 2007 2008 2009 >
Trailer Telematics

Integrated Transmission
Electronic Two Stage Automation System
Vehicle Tire
Braking Compressor
Monitoring
System Roll Stability OnGuardMaxTM
Support for Trailer EBS - E Autonomous
trailers Emergency Braking
Anti-Lock
Braking System
System
High Output
Compressor

2010 6
COMMERCIAL VEHICLE AIR CYCLE

Generates and Dries, cleans, stores

pressurizes the air to be and distributes the
used in the braking compressed air to enable
system and other proper system operation
air-based applications under all conditions

AIR AIR AIR

COMPRESSION MANAGEMENT APPLICATION

MECHANICAL ELECTRONIC/
Service brakes, Parking brakes ELECTRO-MECHANICAL
Actuators Anti-lock Braking Systems
Foundation brakes Electronic Braking Systems
Transmission Automation
Electronic Suspension Control

2010 7
PRODUCT PORTFOLIO

Air Compressors 13% Anti-Lock Braking Systems 11%

Air Processing 11% Car Products 4%

Conventional Brake Controls 13% Transmission Automation,

Clutch Control 11%

Actuators 10% Electronic Braking and Stability

Control Systems 9%

Foundation Brakes 6% Others 6%

Suspension Control 6% % 2009 Sales

2010 8
CUSTOMER VALUES

ƒ WABCO is working on global TECHNOLOGY trends relevant to

our customers

ƒ We have a clear path to enhance VEHICLE

EFFICIENCY
and ENVIRONMENTAL SUSTAINABILITY by 20%

ƒ Our vision is to improve ADVANCED SAFETY and

DRIVER EFFECTIVENESS, and reduce the number of
commercial vehicle accidents by 50% by 2020

ƒ We are involved in developing PRODUCTS and

FUNCTIONALITIES to better meet these needs

2010 9
AFTERMARKET CAPABILITIES
Service Diagnostics
centers solutions

Sales,
promotion
and
marketing
WABCO
University
Global
distributor
network SUPPORTING FLEET
AND TRUCK OWNERS Services,
customer
OVER VEHICLE support
LIFETIME

Customer
partner Extensive
program range of
products and
systems

Regional Universal
customer customer
teams hotline
2010 10
CUSTOMER DYNAMICS
TRUCK AND BUS MANUFACTURERS
LARGE VOLUMES, LONG CYCLES 30+ Customers
ƒ Few, large, consolidating, globalizing
ƒ Use technology to meet regulation, comfort,
safety and economics
ƒ Need for global suppliers and development
partners with system expertise
AFTERMARKET
SMALL VOLUMES, SHORT CYCLES 3,000+ Customers
ƒ Small, many, local/regional; dependent on
suppliers for product, services and knowledge
ƒ Multiple step distribution: distributors, repair
shops, and fleet operators
ƒ 2 channels: independent aftermarket and
original equipment supply
2010
TRAILER MANUFACTURERS
SMALL VOLUMES, SHORT CYCLES 2,000+ Customers
ƒ Very many, small, local or regional
ƒ Closely follow truck and bus technology
ƒ Dependent on suppliers for product and
technical support, services and knowledge
CAR MANUFACTURERS
VERY LARGE VOLUMES, LONG CYCLES ~10 Customers
ƒ Few, large, global, sophisticated
ƒ Many competitive suppliers for most
technologies
ƒ Very high expectations for quality, program
management and supplier support
11
GLOBAL TRUCK & BUS PRODUCTION
(over 6 tonnes Gross Vehicle Weight)

100% = 2,749K 100% = 2,734K

India 10% 9%

100% = 2,089K
China 31% 32%
10%

Japan/Korea 10% 10%

49%
S. America 7% 8%
N. America 14% 12%
9%
7%
Europe 28% 29% 10%

15%

'07 '08 '09

2010 12
GLOBALIZATION

Local Market Local Local Supply Product

Connectivity Manufacturing Chain Development

ƒ All regions managed ƒ 4 factories in China ƒ Local strategic ƒ 2nd Product

by local teams sourcing teams Development
- Benchmark Lean
connected to global pillar in India to
ƒ No expats in key processes
commodities address emerging
leadership positions
- 2 new factories countries
ƒ 9 Nationalities from 4 opened in 2010
ƒ Strong supply base
specificity and
covering core
continents in
ƒ 3 factories in India commodities
conventional
leadership team product design
ƒ Took over JV in India
- Multiple Award ƒ Local supplier (150 engineers)
Winning management
ƒ #1 Position in all Asia ƒ Software
ƒ 1 Factory in Brazil ƒ Leveraging BCC development
countries, especially
- Lean capabilities for center in Chennai
in China and India
transformation under global (85 engineers)
ƒ #1 Position at Kamaz way manufacturing sites
ƒ Test & design
center in Poland
to support
Hanover
2010 13
(100 engineers)
TRUCK & BUS REGIONAL
ATTRIBUTES
$ Estimated content per vehicle Typical heavy truck
based on total applicable market $K price in market

NORTH AMERICA <$1,000 $80K SOUTH AMERICA <$1,500 $65K

ƒ Less advanced technology vs.Western Europe ƒ Less advanced technology – mostly from Brazil
ƒ Large OEMs: Daimler, Volvo, PACCAR, ITE ƒ Main OEMs: Daimler, VW, Volvo, Scania
ƒ Large fleets, able to influence OEM design

WESTERN EUROPE >$3,000 $130K JAPAN & KOREA <$1,000 $80K

ƒ Advanced technology, high electronics penetration ƒ Technology moving towards Western Europe
ƒ 6 OEMs: Daimler, Volvo, MAN, Iveco, ƒ Main OEMs: Hyundai, Hino, Isuzu, ND
PACCAR, Scania ƒ Targeting global market
ƒ Few large, pan European fleets

EASTERN EUROPE <$500 $70K CHINA & INDIA <$300 $30K

ƒ Expected to Return to Fast growing ƒ Basic technology; advanced technology penetration
production in the Future under 10% of total market
ƒ Improving quality and safety ƒ Large OEMs: FAW, DFM, CNHTC in China;
ƒ Global and local OEMs: KamAZ, MAZ, TATA Motors & Ashok Leyland in India

2010 14
COMPETITIVE OVERVIEW

KNORR HALDEX LCC COMPETITORS

ƒ Technical capabilities similar
to WABCO
ƒ No position in transmission
automation or cars
ƒ Strong position in North America
following BENDIX acquisition
ƒ Trailing in emerging markets
ƒ Challenger position
ƒ Lower electronics capabilities
compared to WABCO and KNORR
ƒ Strong automatic slack
adjuster business
ƒ Entering into special products for
diesel engines
ƒ Strong low cost / low tech solutions
ƒ Mainly mechanical capabilities
ƒ Targeting specific markets
with specific product ranges
ƒ Low price strategy in Aftermarket

WABCO KNORR HALDEX LCC competitors

(2009 Estimated Commercial Vehicle Sales) ($1.5B ) (~$1.7B ) (~$0.4B) (All Under ~$0.1B)

Anti-lock Braking Systems

Electronic Braking Systems
Conventional Products
Transmission Automation
Air Compressors
Air Processing
Actuators
Suspension Control
Foundation Brakes

Complete Offering Partial Offering Niche Offering

sources: KNORR-BREMSE website, HALDEX website

2010 15
SALES BY REGION AND CUSTOMER
TYPE
2009 SALES BY REGION 2009 SALES BY CUSTOMER TYPE

3%
Other

South America 6% 32% Aftermarket

Truck & Bus
55%
North America
8%
65% Europe
Asia
18% 9%Trailer
4% Car
SALES 5-YEAR CAGR*
20%

Asia
15%
Percentage

10%

5%

South America
0%

-5% Global
* Compound annual growth rate in local currencies Europe
from 2004 to 2009 North America
-10%
2010 16
PERFORMANCE FROM GROWTH

ABOVE MARKET SALES GROWTH THROUGH 2014* OE TRUCK, BUS AND TRAILER
INCREASING VALUE PER VEHICLE
CAGR ƒ Air Disc Brakes
4 - 6% ƒ Transmission Automation Controls
ƒ Electronic Stability Control
Cars ƒ Driver Assistance Systems

GLOBALIZATION
Aftermarket ƒ China
Expansion ƒ Eastern Europe / Russia
ƒ India

AFTERMARKET EXPANSION
ƒ Enhanced Penetration
OE Truck,
ƒ 10% Year-of-year
Bus and
Trailer ƒ New Product Ranges
ƒ New Services (e.g. Diagnostics, Training)
ƒ East Europe, North America and Asia

2009 2014
AUTOMOTIVE PENETRATION
ƒ Electronic Air Suspension
ƒ Vacuum Pumps

*Assumes commercial vehicle production flat at 2009 levels

2010 17
INNOVATION: AIR DISC BRAKES

SALES PROJECTIONS
Indexed (2009 Sales = 100)

CAGR
47% 688

NG22MAX

427 ƒ New generation for heavy duty

trucks and buses

ƒ Patented reinforced single-piston

100
technology delivers high
performance at lowest weight

ƒ Increased reliability, longer brake

2009 2012 2014
pad life, extended service intervals

2010 18
INNOVATION:
ELECTRONIC STABILITY CONTROL

SALES PROJECTIONS
Indexed (2009 Sales = 100)
CAGR
37%
473

ƒ Mandatory in EU in Nov. 2011

ƒ Includes yaw control to keep vehicle on
292 steered course and avoid jack-knifing
ƒ Roll Stability Support mitigates roll-over
situations for coaches, trucks and trailers
100
ƒ ESCsmart™: Industry’s first technology
that uses computational simulation to
2009 2012 2014
certify ESC. Breakthrough homologation
system approved in 27-country EU and in
20 other countries
2010 19
INNOVATION: TRANSMISSION
AUTOMATION SYSTEMS New OptiDriveTM Transmission
Automation system

SALES PROJECTIONS
Indexed (2009 Sales = 100)

CAGR
13% 182

145 ƒ Provides fuel savings, reduced

clutch wear, improved serviceability,
100 reduced driver training

ƒ Developed modular version to meet

requirements of new customers in
emerging markets

ƒ Standardized components provide

2009 2012 2014 improved cost position and reduced
application engineering

2010 20
GLOBALIZATION: CHINA

SALES PROJECTIONS
Indexed (2009 Sales = 100)

CAGR
25% 300

ƒ 2005 to 2008 sales grew at 70% CAGR

ƒ Signed long term agreement with CNHTC
190
through 2016 including sole supplier of
transmission automation systems
100
ƒ Joint venture with Fuwa, world’s largest
maker of trailer axles, to produce air disc
brakes in China
2009 2011 2014
ƒ Growing weight in WABCO’s global
manufacturing network and an internal
benchmark for Six Sigma Lean
2010 21
GLOBALIZATION: INDIA

SALES PROJECTIONS
Indexed (2009 Sales = 100)

CAGR
21% 214

ƒ Strongly anchored market leader

155
ƒ Preferred supplier for all OEMs
100 ƒ Nationwide sales and service network
ƒ Extensive product & software
development capabilities
2009 2011 2014
ƒ Lean and TPM driven manufacturing
ƒ High record of industry awards
2010 22
 PERFORMANCE
THROUGH EXECUTION

The WABCO Operating We are globalizing constantly:

System is our roadmap and growing, leveraging and
one of the most advanced optimizing our network of
management environments in capabilities in manufacturing,
our industry sourcing and engineering

WABCO
WABCOOPERATING
OPERATING GLOBALIZATION
GLOBALIZATION
SYSTEM
SYSTEM

2010 23
WABCO OPERATING SYSTEM
Pillars Vision

Organizational Accountability and

alignment across the
Development value chain

Integrated supply chain

supported by Lean
Six Sigma Lean
processes from
suppliers to customers

Common Processes based on Design

Development For Six Sigma driving
Process speed and reliability

Customer Establish partnerships

Partnership as competitive differentiator

Total Employee Hoshin-like

management system
Involvement in place

© 2010 WABCO Holdings Inc. All rights reserved.

2010 24
GLOBALIZATION:
MANUFACTURING STRATEGY

Global Manufacturing Strategy Share of Workforce By:

High Cost Country Best Cost Country

10%

ƒ Supporting Local Markets from Local 22%

39% 42%
Factories 53%
68%

ƒ Leveraging Manufacturing Capabilities

in China and India to Lower Costs 90%
78%

ƒ Accelerating Six Sigma Lean 61% 58%

47%
Deployment in all Facilities 32%

2000 2002 2004 2006 2008 2010

2010 25
GLOBALIZATION:
SOURCING STRATEGY

Global Sourcing Strategy Share of Sourcing By:

High Cost Country Best Cost Country
ƒ Focusing Purchasing Strategy on 3 Main
Regional Clusters - Western Europe, 10%
Central/Eastern Europe and Asia 22%
30% 35%
40%
ƒ Consolidating Supply Base 43%

ƒ Driving Quality Improvement and Six Sigma

Lean Implementation at Key Suppliers 90%
78%
ƒ Leveraging Broad Internal and External 70% 65%
60%
57%
Capabilities in India and China

ƒ Performing Continuous Supplier Risk

Management Analysis 2000 2002 2004 2006 2008 2010F

2010 26
GLOBALIZATION:
ENGINEERING STRATEGY

Global Engineering Strategy Engineering Workforce by:

High Cost Country Best Cost Country

WESTERN EUROPE CENTRAL EUROPE Growth in Resources

(Indexed to 2002)
ƒ Advanced products and ƒ Conventional products
Systems 130
ƒ Design Support 121 123
ƒ Connectivity to European ƒ Standards, material and 114
OEM development 17% 31%
Requalification Test Center 100 14% 27%
ƒ Technology, Process, Data
and Systems

83%
96% 86%
AMERICAS ASIA 73% 69%

ƒ Connectivity to US and South ƒ Development of products

American OEMs for region specifics
ƒ Regional variant development ƒ Software development
ƒ Application development ƒ Design and calculation 2002 2004 2006 2008 2010F
support

2010 27
FINANCIAL PERFORMANCE Q1 2010
Performance
(In $ Millions except per share data)
Q1 Q1 vs. 2009
(2),(3) (1)
Reported Performance In Local Curr. Performance Drivers
Sales $491.1 $491.1 36.2% • +11% versus Q4 ’09
• Order Book at $721M, Up 28% YoY
• Price: ($5.7) or (1.2%)

Gross Profit 140.2 140.5 63.1% • Volume & Mix: $32.9

• Productivity:
28.5% 28.6% +474 bps –Materials: $10.9
OPEX & Other (97.1) (96.0) (16.9%) –Conversion: $4.0
(19.8%) (19.5%) +327 bps –OH Absorption & Other: $9.3
• OPEX & Other: ($12.9):
Operating Income 43.1 44.5 1,250.0% –Reinstate suspended costs: ($7.9)
8.8% 9.1% 801 bps –Labor inflation/India Opex: ($4.5)
–Bonus Accrual Above Target: ($3.2)
–Savings net of new investments: $2.7
• Meritor WABCO JV Up $1.6M
Equity Income 1.8 1.8 Versus Last Year
EBIT $38.7 $42.2 • Streamlining $0.1 vs. ($30.9) in ’09
7.9% 8.6% • Separation ($3.6) vs. ($2.9) in ’09
Taxes 7.6 8.2
Net Income $30.7 $33.6 • ~20% Performance Tax Rate

EPS $0.47 $0.51 • Versus ’09 Reported of ($0.57) and

Performance of ($0.08)
(1) Adjusted for currency translation, streamlining and separation costs
(2) Adjusted for streamlining and separation costs
(3) Adjusted for streamlining and separation costs, and discrete and other one-time tax items
© 2010 WABCO Holdings Inc. All rights reserved.

2010 Strong Financial Performance Generates 31% Incremental Margin 28

 FY 2010 GUIDANCE
2010 Guidance as of May 5, 2010 Key Inputs
($ Millions, except per share data)
ƒ Price erosion level of 1.7% or
Original Revised
(1 EURO = 1.37 USD) better
Low End – High End Low End – High End
ƒ Maintaining strong levels of
(1) $1,835 - $1,910 productivity
Sales 15% - 20%
23% - 28%
(1) ƒ Raw materials pricing expected
to degrade margins by ~90 bps
Structural starting in Q2
Performance Incremental Margin
Op Margin
(2) 5% – 7% 6.5% – 8.5% ƒ Additional investments of ~$3M
2010
Incremental
in new business opportunities
Margin

Performance
ƒ Net interest expense at current
(3) $1.00 - $1.40 $1.40 - $1.80 rates
EPS
ƒ Performance tax rate of ~20%
Free Cash
80% - 90% 80% - 90% ƒ Streamlining & separation cash
Flow (4) (Excluding Stream. & (Excluding Stream. & payments: ~$50M
Separation) Separation)
Conversion
ƒ Impact from EC fine not included
Note: Guidance as announced on May 5, 2010. Inclusion of this information in this presentation is not an update or reaffirmation of those financial assumptions
(1) Adjusted for currency translation
(2) Adjusted for streamlining and separation costs
(3) Adjusted for streamlining and separation costs, and discrete and other one-time tax items
(4) Net cash provided by operating activities less net cash used for the purchases of PP&E and computerware as a percentage of net income

© 2010 WABCO Holdings Inc. All rights reserved.

2010 Raising Full Year 2010 Guidance 29

WABCO SUMMARY

ƒ Industry leader, we continue to be well prepared and sufficiently FLEXIBLE

to take full advantage of increasing demand for new commercial vehicles in
2010, while maintaining our commitment to long term growth STRATEGY

ƒ Power to remain THE TECHNOLOGY LEADER adding breakthroughs to

portfolio of technologies and products for full connectivity to all markets

ƒ WABCO Operating System, one of our industry’s most advanced

management environments, delivers continuous OPERATIONAL
improvements

ƒ We drive PERFORMANCE by connecting with and adapting to

CUSTOMERS everywhere in the world and continuing to anticipate and
satisfy their needs

2010 30
 PASSION
© 2010 WABCO Holdings Inc. All rights reserved.
TRUCK AND
TRAILER PRODUCTS
TRUCK
1 Electronic Control Units
2 Adaptive Cruise Control
3 EBS Proportional Relay Valve
4 Pedal Unit with EBS Brake Signal Transmitter
5 ABS Modulator Valve
6 Automatic Temperature Control
7 Electronically Controlled Air Suspension
8 Shock Absorber
9 Front Air Disc Brake
10 Steering Angle Sensor
11 Transmission Automation
12 Clutch Control
13 Retarder Control
14 Air Compressor
10
15 Rear Air Disc Brake
1 6
7 16 (Electronic-) Air Processing Unit
11 4 17 Reservoir
18 EBS Trailer Control Valve
13 8 2
20 16 19 Electronic Stability Control Module
29 27 17
23 18 20 EBS Axle Modulator
24 22 5
30 26 28 14 12
9 3
15 19
31 21
25 TRUCK AND TRAILER
21 Brake Chamber
22 Tristop® Cylinder
23 Air Bellow
24
Integrated Vehicle Tire Monitoring ECU
25 IVTM Wheel Module
26 Double Diaphragm Spring Brake

TRAILER
27 Trailer Central Electronic
EBS: Electronic Braking System 28 SmartBoard
ABS: Anti-Lock Braking System 29 Trailer Electronic Braking System
30 Electronically Controlled Air Suspension
ECU: Electronic Control Unit 31 Trailer Air Disc Brake

2010 32
BUS PRODUCTS

1 EBS Brake Signal Transmitter

2 EBS Proportional Relay Valve
3 ABS Solenoid Modular Valve
4 Electronic Stability Control Unit
5 EBS Backup Valve
6 EBS Axle Modulator
7 Adaptive Cruise Control Module
8 Hand Brake Valve
26 24 9 IVTM Display
27 10 IVTM Wheel Module
25 11 IVTM Electronic Control Unit
12 Automatic Traction Control Water Valve
11 13 ATC Operating Console
14
16
13 9 14 ATC Substation
8 15 Electronic Control Units EBS, CVC
16 ECAS Electronic Control Unit
15 1
17 ECAS Solenoid valve
2 18 ECAS Level Sensor
3 12 7
4 20 17 19 Air Disc Brake
5
21 6 18 20 Brake Chamber
23 10
19 21 Tristop Cylinder
22
22 (Electronic) Air Processing Unit
23 Compressor
24 MTS Sensor
25 MTS Door Cylinder
26 MTS Electronic Control Unit
27 MTS Door Valve

EBS: Electronic Braking System

ABS: Anti-Lock Braking System
CVC: Central Vehicle Controller
IVTM: Integrated Vehicle Tire Monitoring
ECAS: Electronically Controlled Air Suspension
MTS: Door Control for Bus

2010 33
CAR PRODUCTS

1 Air Bellow
2 Electronic Control Unit for ECAS & ESAC
2 3 Vacuum Pump
7
4 Air Supply Unit
5 Height Sensor
6 Air Reservoir
7 Solenoid Valve Block
3 6
5

ECAS: Electronically Controlled Air Suspension

4
ESAC: Electronic Shock Absorber Control

2010 34