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WABCO Confidential and Proprietary 1

SUSTAINING DIFFERENTIATION

JACQUES ESCULIER Chairman & Chief Executive Officer

May 31st, 2018

KeyBanc Capital Markets Industrials & Basic Materials Conference 2018

WABCO Confidential and Proprietary

FORWARD LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES

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-K Report. 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. Sales, gross profit, operating expenses and operating income, which are adjusted

to exclude the effects of foreign exchange and are denoted by the word “adjusted” in the line item, as well as EBIT and pre-tax income attributable to company, are non-GAAP financial

measures. Additionally, gross profit, operating expenses, operating income, operating income margin, EBIT, tax rate, pre-tax income attributable to company, net income attributable to

company and net income attributable to company per diluted share on a “performance basis” are non-GAAP financial measures that exclude items for separation, streamlining,

acquisitions, discrete and one-time tax items, and other items that management believes may mask the underlying operating results of the company, as applicable. Our tax rate

guidance for the full year is presented only on a performance basis as reconciliation to an expected tax rate on a reported basis would not be meaningful due to the complex nature of

such an estimate. 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.

Free cash flow presents our net cash provided by operating activities less net purchases of property, plant, equipment and computer software. Performance free cash flow presents our

net cash provided by operating activities less net purchases of property, plant, equipment and computer software; and excludes streamlining, separation and acquisition related

payments. Management believes that presenting free cash flow and performance free cash flow is useful to shareholders because it demonstrates our ability to generate cash and the

health of our business. Free cash flow and performance free cash flow does not represent residual cash flow available for discretionary purposes since it may not include a deduction

for mandatory debt service requirements and other non-discretionary expenditures.

All of the Non-GAAP financial measures presented herein should be considered in addition to, not as a substitute for, GAAP measures. These measures may not be comparable to

similar measures of other companies as not all companies calculate these measures in the same manner. 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 included herein and are available in WABCO’s

quarterly results presentations posted on the company’s website.

2


ABOUT WABCO

3


ABOUT WABCO: THE INDUSTRY’S TECHNOLOGY INNOVATOR

In 2017:

$3.3B Annual revenues

~15,000 Employees in 40 countries

No.1 in all BRIC markets

383 Patents granted

2,900 Service Partners

2,600 Engineers worldwide

$465m Performance EBIT(1) (14.1% Margin)

57% 24%

9%

4% 6%

SALES BY CUSTOMER TYPE

OE Truck & Bus Aftermarket

Trailer Off-Highway

Car

52%

18%

26%

3% 1%

SALES BY REGION

Europe North America Asia S.America Other

15 during the last 5 years

Industry technology

firsts introduced

10 NYSE listing

Years 27 Factories

4

See appendix for footnotes


A RICH PORTFOLIO OF TECHNOLOGIES X%

EBS & ESC

Air Brake Valves

ABS

BRAKING CONTROL

AS PERCENTAGE OF

WABCO 2017 SALES

35%

Air Processing

Air Management

Systems

19%

Compressors

Suspension Control

6% Car Products

6%

Wheel End

12%

Digital Services

3%

Transmission

Automation

12%

Steering Control

1%

Electronic Controls &

Monitoring Systems

6%

5


OUR VALUE CREATION PROPOSITION

We apply advanced technology and services to support commercial vehicle OEM and fleet needs

GLOBAL CAPABILITIES

• Global platforms

• Connected R&D network

• Frugal engineering

• Localization

• Integrated supply chain

SAFETY

• Braking systems

• Active steering

• Stability control

• Collision mitigation systems

• Accident prevention

• Autonomous driving

CONNECTIVITY

• Advanced systems integration

• Fleet Management Systems

• Remote diagnostics

• V2X communications

• Big data

EFFICIENCY

• Fuel efficiency

• Aerodynamics

• Emissions reduction

• Weight reduction

• Maintenance costs

• Vehicle and driver performance

monitoring

OEMs

Fleets

6


A BROAD MARKET FOCUS GLOBALLY

Ashok Leyland, CNHTC, Cummins, Daewoo, DAIMLER, Dongfeng, FAW, Fiat, Foton, GAZ, HINO Motors, Hyundai, Isuzu, KAMAZ, Kinglong, MAN, PACCAR, SCANIA, TATA Motors, Volvo, Yutong, ZF among others.

TRUCK & BUS

CIMC, Faccini, Guerra, GREAT DANE, Kögel KRONE, SCHMITZ Cargobull, Tirsan, Tonar WABASH, Weilton among others.

TRAILER

AGCO, BEML, Caterpillar, Claas, CNH , Hitachi, Hyundai CE, John Deere, Komatsu, Liebherr, Liugong, SANY, Tandano, Volvo CE, XCMG, ZOOMLION among others.

OFF-HIGHWAY

AUDI, BMW, Changan, FCA, General Motors, Mercedes –Benz, Porsche, SAIC, TESLA, Volvo, VW among others.

CAR

Supporting distributors, workshops and fleets over vehicle lifetime thanks to: • Global distribution & service

network • Comprehensive aftermarket

portfolio • Fleet Management

Solutions • Digital Services • WABCO Academy

FLEETS

7


WABCO’S SUCCESS IS ROOTED IN OUR CULTURE

Sustaining differentiation throughout a highly diversified, passionately engaged and continuously learning global team

CHANNELLED THROUGH

WELL ANCHORED CORE STRATEGIES

• ANTICIPATION: Reading economic and industry

dynamics ahead of the curve

• CREATIVITY: First to market with new technologies

• EXCELLENCE: Leveraging early globalization and an

industry-leading Lean Operating System

POWERED BY PASSION

Continuously applying innovation across our

customers’ value chain and vehicle life cycle

8


SUSTAINING DIFFERENTIATION THROUGH

TECHNOLOGY LEADERSHIP

9


THE INDUSTRY’S LEADING INNOVATOR IN OUR SECTOR

2009 to

2010

2011 to

2014

2015 to

2017

2004 to

2008

1996 to

2003

1980’s to

1995

Anti-Lock Braking System (ABS)

Traction Control System

Pneumatic Transmission

Automation System

Electronically Controlled Air

Suspension (ECAS)

RSSplusTM Roll Mitigation System

OnGuardTM Collision Mitigation

System

Hydraulic Transmission

Automation System

d-compTM Dual Stage Compressor

New Generation Air Disc Brake

Air System Protector

Trailer EBS-E

c-compTM Clutch

Compressor

Trailer OptiLoadTM

ESCsmartTM Simulation

System

Trailer OptiTurnTM

OnLaneTM - Lane Departure

Warning System

MAXXUSTM Air Disc Brake

OptiFlowTM SideWings

EBS for Hybrid Drivelines

New Generation Automated

Manual Transmission

Improved Integrated Vehicle

Tire Monitoring (IVTM TM)

Modular EBS

mBSP TM Modular Braking Platform

EC-APU Air System Protector

MAXX22TTM Air Disc Brake

OptiPaceTM

OnGuardACTIVETM

Electronic Stability Control (ESC)

for Hydraulic Braking

Trailer EBS

Electronic Braking System (EBS)

Roll Stability Support (RSS) for

Trailers

Integrated Vehicle Tire

Monitoring (IVTM TM)

ECAS for automotive

Electronic Stability Control (ESC)

Adaptive Cruise Control

OnGuardMAXTM

Autonomous Emergency

Braking System

h-compTM High Output

Compressor

OptiDriveTM Transmission

Automation System

Trailer Telematics

Air Disc Brake MAXXTM22

Trailer Remote Control

TrailerGUARDTM Telematics

OnGuardPLUSTM Advanced

Emergency Braking System

TailGUARDTM Rear Blind

Spot Detection

e-compTM Electrically Driven

Compressor

FuelGuardTM Electronic Air

Processing Unit

OnCityTM

OnGuardMaxTM

OnHandTM

WABCO Communications Unit

OptiFlowTM AutoTail

OnLaneASSIST™

OnSide

OptiLock

OptiLink

10

Evasive Maneuver Assist


ANTICIPATING THE EVOLUTION OF OUR INDUSTRY

Exponential Growth of New Technologies

Increasingly Complex

Customer Needs

Regulatory Push for Greener

Environment

Population Growth, Urbanization &

Smart infrastructure

Mega Trends

Urban / Suburban Transportation

Long Haul Transportation

Off-Highway Application

Commercial Transportation Requirements

Segmentation

of Commercial Vehicles

Impact on Commercial Vehicles Requirements

11


WABCO BLUEPRINT FOR AUTONOMOUS DRIVING

Predictive control: - Predicts traffic situation

- Learns behaviors

- Defines system reaction

- 100ms cycle

Reactive Control: - Measures vehicle situation

- Safety critical

- 5ms cycle

360° SENSING

CONNECT

Fail Safe Vehicle Architecture

Dynamic Motion Control

Braking

system

Vehicle

Sensors

Stability

Control

AMT

Active

Steering

12


TECHNOLOGY TO ADVANCE VEHICLE SAFETY AND AUTONOMOUS DRIVING

Stop’n’Go Assist Platooning

Collision Avoidance

Collision Mitigation

Active Steering

Bli

nd

Sp

ot

Mo

nit

ori

ng

Driver Behavior Monitoring

Active Braking Electronic Stability Control

Vulnerable Road User Protection

mBSP™

MAXX™ AMT

SYSTEMS INTEGRATION

We have a solid roadmap identified towards a vision for zero accidents and automated vehicles

13


TECHNOLOGY TO ADVANCE VEHICLE EFFICIENCY

A vehicle equipped with all WABCO efficiency technologies can increase fuel economy up to 20%

14


DRIVING VEHICLE EFFICIENCY & SUSTAINABILITY

Trailer Aerodynamics

Electronically Controlled Air

Suspension

Automated Manual

Transmission

Hybrid EBS Clutch

Compressor Air Processing Unit

Lightweight Air Disc Brakes

High Output Compressor with

Alu-Crankcase

Fuel Efficiency

Weight Reduction

Energy

Recuperation Electric Vehicles

Electronic -APU

Electrically Driven Compressor or compressed air

replacement

Electro Mechanical

Brake

EBS Brake Control

15


CONNECTIVITY: MOBILIZING VEHICLE INTELLIGENCE

WABCO uniquely offers insights on truck, trailer and driver performance

Platooning (V2V)

Provide a Broad Spectrum of Vehicle Systems Data

Other Data

Providers

Big Data & Analytics

V2X

16


DELIVERING FLEET CRITICAL DATA AND ACTIONABLE INFORMATION

TO ONE SINGLE PLATFORM

WABCO ITP

Cost management & efficiency

Compliance

ECO

Satisfaction

Supply chain visibility

€ Safety & security

Maintenance & repair

WABCO Service network

WABCO Academy

REMOTE DOOR LOCK

REMOTE

TRAILER DIAGNOSTICS REMOTE

TRUCK DIAGNOSTICS

OPTITIRE EBS

BRAKE WEAR

CARGO

TX-TRAILERGUARD TX-SKY

TX-FLEX

TX-CONNECT

17


EXPANDING RESERVOIR FOR ORGANIC GROWTH

18

Ap

pli

ca

ble

co

nte

nt

pe

r ve

hic

le

~$300

~$3000

~$3200

~$1500

~$1000

~$500

2014 Today Future

Advanced Technology

Adoption

Advanced Technology

Adoption

* AT CONSTANT FX

~$1000

Content per vehicle gap between regions fuels technology adoption



GLOBALIZATION

19


DIFFERENTIATION THROUGH GLOBALIZATION

INDIA

Chennai

Mahindra World City

Jamshedpur

Lucknow

Pantnagar

Pune

THAILAND

Rayong

SOUTH KOREA

Pyungtaek

CHINA

Jinan

Qingdao

Taishan

Shanghai

UNITED KINGDOM

Leeds

GERMANY

Gronau

Hannover

Mannheim

JAPAN

Tokyo

RUSSIA

Moscow

POLAND

Wroclaw

Stanowice

BELGIUM

Brussels

Ieper

MEXICO

Empalme, Sonora

San Luis Potosi

BRAZIL

Campinas S.P.

UNITED STATES OF AMERICA

Rochester Hills, MI

Troy, MI

North Charleston, SC

Hebron, KY

North Mankato, MN

Hanover, PA

Wytheville, VA

Global Headquarters

Global network of development, manufacturing and distribution operations

CANADA

Oakville, ON

20


GLOBALIZATION: A PILLAR OF WABCO’S DIFFERERENTIATION

• Uniquely able to supply truck, bus

and trailer technologies across the

globe

• All regions managed by well-

established local teams

• Optimized cost structure

leverages mature, fully integrated

global engineering and supply

chain presence in all markets

• Differentiating aftermarket service

network and products

of WABCO’s engineers located in

best-cost countries 55%

of WABCO’s workforce is located

in emerging markets 67%

manufacturing sites around the

globe: benchmarks for lean

manufacturing standards

27

in all BRIC markets

Resources, connectivity and capabilities to

cost-efficiently support

growth strategies in every market

WABCO’s service and technical support

115 2900 4500

Countries Service Partners Distributors

21

In 2017, WABCO won 25

major awards from

customers 25 10

nationalities in

WABCO's senior

executive team

10


Skilled Application Engineers in all key regions provide excellent

customer connectivity and support Broad System &

Vehicle Expertise

THE DNA OF OUR INNOVATION LEADERSHIP

A Globally Integrated Product Development Team

Frugal Engineering Expertise - able to create pull for new technologies

and mature products in increasingly price

sensitive markets

- Delivers Advanced Technologies at Best Cost

Best Solution

Advanced Development

Frugal Engineering

Rich Software

Expertise

Strength in Technology

& Innovation

Advanced Development

Organization seeds innovation, leads technology screening

and concept validation for rapid protoyping

* As of December 2017

>30%

>380 Patents granted*

Increase in R&D investment

>900 Products released*

100% Increase in number of engineers

During the last decade:

22

On an annual basis:



EXCELLENCE IN EXECUTION

23


EXCELLENCE IN EXECUTION

WABCO Operating System (WOS)

The WOS defines WABCO’s unique culture and powers us to sustain differentiation in quality,

performance and service to customers

• Built on a backbone of Six Sigma Lean

o Rigorous management environment across global operations

o Standardized processes embedded within advanced quality management systems

• Efficient and agile organization of resources in every region

• Drives continuous productivity within the design – build – deliver value chain

• Learning culture and individual empowerment to continuously advance quality

• Passion to drive excellence in execution as a differentiator for customers

24


ABOUT WABCO

AFTERMARKET

25


WABCO AFTERMARKET: CREATING THE HIGHEST BRAND LOYALTY

>27,000 Diagnostics subscribers

Leading penetration

KNOW WABCO

2,900 Service partners

Industry benchmark

REACH WABCO

4,500 Distributors

Worldwide availability

14 Distribution centers worldwide

Best Customer Proximity

GET WABCO

>170,000 Trained mechanics

Largest trained community

TRUST

26


THE INDUSTRY’S MOST COMPREHENSIVE AFTERMARKET PORTFOLIO

Delivering differentiated products for every vehicle in every market

Competitive at

OE quality

ORIGINAL REPAIR KITS PROVIA REMAN

OE choice

premium brand

Trusted

original budget

parts

Enabling

quality repairs

RETROFIT

SOLUTIONS WORKSHOP

SOLUTIONS

Improving fleet

safety & efficiency Delivering smart

productivity tools

Continuously

expanding our

segment

Distributors Workshops

Fleets

OES Drivers

Anchored to the fleet eco-system



MARKET OUTPERFORMANCE AND

OUR FINANCIAL FRAMEWORK

28


2010 - 2017

DIFFERENTIATION THROUGH OUTPERFORMANCE

29

0.0%

5.0%

10.0%

15.0%

Europe NorthAmerica

SouthAmerica

Japan/Korea

China India

AVERAGE REGIONAL TRUCK & BUS

OUTPERFORMANCE 2010 - 2017

MARKET

OUTPERFORMANCE

6% to 10%

+ 2%

+ 9%

CAGR* Truck & Bus Production

CAGR WABCO sales

* CAGR – Compound annual growth rate 2017 production as reported in February 2018


ORDERBOOK SUBSTANTIATES ROBUSTNESS OF OUTPERFORMANCE

New annual business wins announced

since 2014 …

… in the context of sales and

outperformance commitments

OE sales next

5 years at flat

FX and flat

market

Cumulative 5yr

impact of

platform phase-

out OE sales

Cumulative 5yr

OE price

concessions

New OE business

needed over 5yrs

to achieve

outperformance

$2.7B

to $3.5B

2014 2015 2016 2017 2018

Next 5 years sales impact

~$0.6B ~$0.8B ~$0.6B

~$0.7B

~$0.7B

30

~$0.5B


WABCO’S FINANCIAL FRAMEWORK


31

Sales growth Incremental margin

3% to 5% Maintain

margin

5% to 10% 15% to 20%

10% to 15% 20% to 25%

Incremental Margin(7)


$142

$250

$274

$281

$276

$326$328

$361

70%

80%

90%

100%

110%

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

DIFFERENTIATION THROUGH INCREMENTAL MARGIN & CASH CONVERSION

32

CASH CONVERSION(3/6)

80% - 90%

AVERAGE CONVERSION

RATE ~ 90%


PERF. FREE CASH FLOW (3) (6) IN $M

32

2012

2013

2014

2010

2011

2016

2015

*

Target

Incremental

Margin Range

WABCO Actual

INCREMENTAL MARGIN(7)

DERIVED FROM GROWTH

*excl. $18M non-cash pension

2017


1ST QUARTER PERFORMANCE

AND FY GUIDANCE

33


Q1 2018 SALES & TRUCK AND BUS MARKET OUTPERFORMANCE

Q1 2018 YoY Sales Growth (4) By Channel

OE 34%

• T&B markets strong in all key regions

• Double-digit growth in all customer groups

• Acquisitions contributing 19%

Aftermarket 22%

• Double-digit growth in APAC, CEE and NAFTA

• Continued market erosion in Middle East

• Acquisitions contributing 16%

2018 YoY T&B Sales Growth (4) vs. Estimated Production Growth by Region

WABCO Est. Production Comments

Europe 7% 6%

North America 92% 22%

South America 61% 51%

Japan/Thailand/Korea (2)% (5)%

China (3)% 12%

India 36% 20%

• Europe: Increasing content per vehicle partially offset by phase-out of prior generation AMT

• N. America: Increasing content per vehicle from AMT and ESC; Acquisitions contributing 53%

• S. America: Product launch of new Tristop and increased penetration of AMT and Air Compressor

• Japan/Korea: Continued strong outperformance in Japan offset by negative vehicle mix in Korea

• China: Unfavorable vehicle model mix more than offsets continued increase of technology adoption

• India: Launch of steering and continuing to gain market share for recent products

34

Q1 2018 Sales Bridge

2017 2018

Organic Translational

FX

747.3

1,003.3

99.5

13.3%

in $

Mill

ion

s 84.7

11.3%

71.8

9.6%

US Acquisitions



MARKET DYNAMICS SHOWING POSITIVE TREND %

Q1 % of WABCO

Sales

Q1 ‘18 Global T&B Production

2017 2018

• Q1 ’18 T&B production up 22% vs. Q1 ’17; up 14% vs. Q4 ’17

• Class 8 up 50% in Q1 ’18 vs. Q1 ’17 while classes 5-7 was flat vs. Q1 ’17

• Class 8 orders more than doubled in volume from a year ago

• 2018 T&B production outlook +10% to +15% with stronger growth in Class 8

North America

• New registrations of EU heavy trucks up 6% in the first two months vs. 2017; expected to be flattish for FY 2018

• Total Europe Q1 ’18 T&B production up 6% vs. Q1 ’17

• Total Europe down 5% in Q1 ’18 vs. Q4 ’17

• 2018 T&B production outlook +2% to +7%

Europe

• Q1 ’18 T&B production up 12% vs. Q1 ’17; down 10% vs. Q4 ’17

• Strength in the economy and infrastructure investments supported growth in construction activities

• Production drop expected for remainder of FY 2018

• 2018 T&B production outlook -20% to -10%

China


• Pick up of demand driven by strong economic growth


India

18%

42%

15% 55% 50% 14%

8% 8% 12% 10%

0.5

22%

35

14%


MARKET DYNAMICS SHOWING POSITIVE TREND

• Q1 ’18 up 6% vs. Q1 ’17 excluding impact of acquisitions

• Growth in every region except for Middle East with continued erosion of demand

• 2018 outlook up 6% excluding impact of acquisitions

Aftermarket

• Q1 ’18 global production down 7% vs. Q1 ’17; down 3% vs. Q4 ’17 following steep production drop in China

• 2018 global production outlook -5% to flat

Trailers

• Q1 ’18 T&B production down 5% vs. Q1 ’17; down 5% vs. Q4 ’17

• Korea production down 31% in Q1 ’18 vs. Q1 ’17 due to production shutdowns driven by low construction activities

• 2018 T&B production outlook (incl. South East Asia) -7% to -2%

Japan & Korea


• Further market recovery from a weak Q1 ’17 due to increased agricultural activity in an improving economy


Brazil 7% 4% 6% 5% 3% 3%

10% 10% 24% 24%

%

Q1 % of WABCO

Sales

Q1 ‘18 Global T&B Production

2017 2018

36


Profit and Loss Statement Highlights

Q1 Reported

(1),(2) Q1

Performance

(5) Performance vs. 2017

in local curr. Performance Drivers

Sales $1,003.3 $1,003.3 22.9% • Sales 4.2% vs. Q4’17

• Price erosion $(15.4) or (1.8)%

Gross Profit 309.0

30.8%

309.0

30.8%

17.3%

(144) bps

• Volume, mix and absorption $26.8

• Materials productivity $16.5 (6.4% gross, 5.0% net) incl. $9.1 supplier

settlement compensating delayed cost reduction project

• Conversion productivity $9.0 (7.8%)

• Warranty rate increase of $(1.9) due to reversal in 2017

• Labor inflation $(7.9)

• Net R&D and other investments $(1.7)

• Transactional FX unfavorably impacts Op. Income $(10.8)

• US acquisitions contributing $22.2 Gross Profit and $(10.0) OPEX

OPEX & Other (162.0)

(16.1%)

(157.6)

(15.7%)

12.3%

146 bps

Operating Income 147.0

14.7%

151.4

15.1%

23.0%

2 bps

Equity Income

Non-controlling Int. Exp.

Other non-operating Exp.

0.4

(6.0)

(11.4)

0.4

(6.0)

(10.4)

• Equity Income down from $5.7 in Q1’17

• Non-controlling Interest up from $(3.6) in Q1’17

• Other non-operating exp. driven by pension up $0.5 from last year

EBIT $130.0

13.0%

$135.4

13.5%

• Streamlining $0.3 vs. $0.1 in Q1’17

• Separation & other performance adj. $(5.7) vs. $(3.5) in Q1’17

Taxes (26.3) (26.0) • 19.6% Performance Tax Rate, up from 19.3% in Q1’17

Net Income* $100.7 $106.4 • Performance Net Income up from $80.3 in Q1’17

EPS $1.87 $1.97 • Vs. Q1’17 reported EPS of $1.48 and performance EPS of $1.47

*Represents net income attributable to company

($ Millions, except per share data) Q1 2018 STRONG FINANCIAL PERFORMANCE

37



CASH FLOW SUMMARY Q1 2018

38

Free Cash Flow (in $ Millions)

Cash Provided by Operating Activities:

• Net Income including non-controlling interest 106.7

• Depreciation & amortization 31.4

• Working capital (45.9)

• Changes in other assets & liabilities (3.2)

Net Cash Provided by Operating Activities 89.0

Net Purchases of PP&E, Tooling & Computer Software (21.3)

Free Cash Flow(3) reported 67.7

Streamlining, separation & acquisition related payments 8.8

Performance Free Cash Flow(6) 76.5

• Converting 72% of performance net income into cash

• Seasonal build-up of working capital in Q1 combined

with further increase from sales growth

• Share buyback restarted in March ’18 with target to buy

back up to $300M in 2018; repurchased 221K shares at

a cost of $30.7M

• Borrowed €300M in German private placement market

• Repayment of $500M US private placement in Q2

• Optimizing capital structure for tax and interest expense



• Annual price erosion unchanged in line with 2017

• Conversion productivity remaining at near record levels

• Transactional FX ~$(20)M vs 2017 impacts margin by ~(50) bps

• Performance tax rate ~20%

UPDATES

• Raw material inflation of ~1.2% up from ~0.8%

• Increased pension impact from prior guidance of $5M

• Reduction in cost of financing of ~$6M from prior guidance

• Average diluted shares ~53.2M

Prior Updated

Sales Growth (4) 10.0% - 15.0%

(in local currencies)

12.0% - 16.0%

(in local currencies)

Reported Sales $3,820 - $3,980

1 Euro = 1.22 USD

$3,885 - $4,015

1 Euro = 1.22 USD

Performance

Op Margin (1) 14.5% - 14.9% 14.3% - 14.7%

Performance

EPS (2) $7.20 - $7.70 $7.30 - $7.80

Performance

Free Cash Flow (6) 80% - 90% 80% - 90%

($ Millions, except per share data)

As of Apr 19th, 2018 2018 Performance EPS(2) Guidance Range

FY 2018 CORE GUIDANCE

39



APPENDIX RECONCILIATIONS OF NON-GAAP MEASURES TO GAAP MEASURES

40


1. Adjusted for streamlining, separation costs and acquisition related costs

2. Adjusted for streamlining, separation, one-time tax & discrete tax items and acquisition related costs

3. Net cash provided by operating activities less net purchases of property, plant, equipment and computer software

4. Adjusted for currency translation

5. Adjusted for currency translation, streamlining, separation costs and acquisition related costs

6. Free Cash Flow(3) excluding payments or receipts associated with streamlining, separation, indirect tax, acquisition, A/R securitization and EC fine related items

7. Adjusted for currency translation, transactional FX and streamlining, separation, acquisition related costs and other items that may mask the underlying operating results of the

company, as applicable

Definitions

Separation costs include all the incremental costs to establish WABCO as a stand-alone separate independent company. It also includes the costs associated with

certain liabilities, including contingent liabilities, that have been assumed by WABCO from Trane, formerly American Standard, in the separation but which are not related

to the Vehicle Controls Business. These costs would include the (i) periodic adjustments to the carrying values of the liability, (ii) interest on certain liabilities and (iii) costs

to defend certain of these assumed liabilities.

Streamlining costs are costs that help adjust the company’s workforce and other resources to changing market requirements.

Acquisition related costs cover costs related to acquiring a business and non-cash expenses associated with purchase accounting including amortization of identifiable

intangible assets.

Indirect tax related costs pertain to costs recorded in 2015 unrelated to the company’s current business operations

The tables that follow provide the reconciliations of the non-GAAP financial measures to the most comparable US GAAP measures.

Tables

FOOTNOTES, TABLES & DEFINITIONS

Footnotes

41


Note: The presentation of the performance measures above are not in conformity with generally accepted accounting principles (GAAP). These measures may not be comparable to similar measures of other companies as not all companies

calculate these measures in the same manner.

42

% of Sales/ % of Sales/ % Chg vs.

(Amounts in millions, except per share data) Adj Sales Adj Sales 2017

Sales

Reported 1,003.3$ 747.3$ 256.0$ 34.3%

Foreign exchange translational effects (84.7) - (84.7)

Adjusted Sales 918.6$ 747.3$ 171.3$ 22.9%

Gross Profit

Reported 309.0$ 30.8% 240.2$ 32.1% 68.8$ 28.6%

Streamlining income - (3.1) 3.1

Performance Gross Profit 309.0$ 30.8% 237.1$ 31.7% 71.9$ 30.3%


Adjusted Gross Profit 278.2$ 30.3% 237.1$ 31.7% 41.1$ 17.3%

Operating Expenses

Reported 162.0$ 16.1% 131.7$ 17.6% 30.3$ 23.0%

Streamlining income/(costs) 0.3 (3.0) 3.3

Separation costs (0.2) (0.3) 0.1

Acquisition related costs (4.5) (2.4) (2.1)

Performance Operating Expenses 157.6$ 15.7% 126.0$ 16.9% 31.6$ 25.1%


Adjusted Operating Expenses 141.5$ 15.4% 126.0$ 16.9% 15.5$ 12.3%

Operating Income

Reported 147.0$ 14.7% 108.5$ 14.5% 38.5$ 35.5%

Streamlining income (0.3) (0.1) (0.2)

Separation costs 0.2 0.3 (0.1)

Acquisition related costs 4.5 2.4 2.1

Performance Operating Income 151.4$ 15.1% 111.1$ 14.9% 40.3$ 36.3%


Adjusted Operating Income 136.7$ 14.9% 111.1$ 14.9% 25.6$ 23.0%

WABCO HOLDINGS INC. AND SUBSIDIARIES

Three Months Ended March 31, 2018 Data Supplement Sheet (Unaudited)

Three Months Ended March 31,

2018 2017 Chg vs. 2017


Note: The presentation of the performance measures above are

not in conformity with generally accepted accounting principles

(GAAP). These measures may not be comparable to similar

measures of other companies as not all companies calculate these

measures in the same manner.

(1) The tax impacts calculated are based on the statutory tax rate applicable to the item being adjusted for the jurisdiction from which the adjustment arises.

43

% of Sales/ % of Sales/ % Chg vs.

(Amounts in millions, except per share data) Adj Sales Adj Sales 2017

EBIT (Earnings Before Interest and Taxes)

Reported Net Income Attributable to Company 100.7$ 80.7$ 20.0$ 24.8%

Income tax expense 26.3 15.3 11.0

Interest expense, net 3.0 3.9 (0.9)

EBIT 130.0$ 13.0% 99.9$ 13.4% 30.1$ 30.1%


Separation costs 1.2 1.1 0.1


Performance EBIT (Earnings Before Interest and Taxes) 135.4$ 13.5% 103.3$ 13.8% 32.1$ 31.1%

Pre-Tax Income

Reported Net Income Attributable to Company 100.7$ 80.7$ 20.0$

Income tax expense 26.3 15.3 11.0

Pre-Tax Income Attributable to Company 127.0$ 96.0$ 31.0$




Performance Pre-Tax Income Attributable to Company 132.4$ 99.4$ 33.0$

Tax rate on a reported basis 19.8% 15.4%

Tax rate on a performance basis 19.6% 19.3%

Net Income Attributable to Company

Reported Net Income Attributable to Company 100.7$ 80.7$ 20.0$




Tax items (1) 0.3 (3.8) 4.1

Performance Net Income Attributable to Company 106.4$ 80.3$ 26.1$

Net Income Attributable to Company per Diluted Common Share 1.87$ 1.48$

Performance Net Income Attributable to Company per Diluted Common Share 1.97$ 1.47$

Common Shares Outstanding - Diluted 53.9 54.5

Incremental Gross Profit and Operating Income Margin Gross Profit Operating Income

Increase in adjusted sales from '17 171.3 171.3

Increase in adjusted income from '17 41.1 25.6

Incremental Income as a % of Sales 24.0% 14.9%

Less: YoY Transactional Foreign Exchange (FX) Impact 10.8

Increase in adjusted income from '17 excluding transactional FX impact 36.4

Incremental income excluding transactional FX as a % of Sales 21.2%


Three Months Ended March 31, 2018 Data Supplement Sheet (Unaudited)

Three Months Ended March 31,

2018 2017 Chg vs. 2017


Note: This statement reconciles net cash provided by operating activities to free cash flow. Management believes that presenting free cash flow

and performance free cash flow is useful to shareholders because it demonstrates our ability to generate cash and the health of our business. Free

cash flow is also one of the several measures used to determine incentive compensation for certain employees.

(Amounts in millions) 2018 2017

Net Cash Provided by Operating Activities 89.0$ 54.3$

Deductions or Additions to Reconcile to Free Cash Flow:

Net purchases of property, plant, equipment and computer software (21.3) (14.4)

Free Cash Flow 67.7$ 39.9$

Less: Streamlining & separation payments (8.6) (18.1)

Less: Acquisition related payments (0.2) -

76.5$ 58.0$

March 31,

Performance Free Cash Flow

WABCO HOLDINGS INC.

Reconciliation of Net Cash Provided

By Operating Activities to Free Cash Flow

(Unaudited)

Three Months Ended


(Amounts in millions, except per share data)

Sales

Reported Sales -

Operating Income

Reported Operating Income Margin 13.6% - 14.0%

Streamlining cost, impact to margin

Separation costs, impact to margin

Acquisition related items, impact to margin

Performance Operating Income Margin 14.3% - 14.7%

Net Income Attributable to Company

Reported Net Income Attributable to Company $369.5 - $396.1

Streamlining cost

Separation costs

Acquisition related items

Tax items (1)

Performance Net Income Attributable to Company $388.4 - $415.0

Reported Net Income Attributable to Company per Diluted Common Share (2)

$6.95 - $7.45

Performance Net Income Attributable to Company per Diluted Common Share $7.30 - $7.80

Diluted common shares outstanding ~

17.0

(10.1)

53.2

(1) Includes the tax impacts of the above items, calculated based on the statutory tax rates applicable to each adjustment for the

jurisdiction from which the adjustment arises.

Note: The presentation of performance net income and performance net income per diluted common share is not in conformity

with generally accepted accounting principles (GAAP). These measures may not be comparable to similar measures of other

companies as not all companies calculate these measures in the same manner.

5.0


Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2018 Guidance

(Unaudited)

Full Year 2018 Guidance

$3,885.0 $4,015.0

(1 Euro = 1.22 USD)

0.2%

0.1%

0.4%

7.0


(Amounts in millions) 2017 2016 2015 2014 2013 2012 2011 2010

Net Cash Provided/(Used) by Operating Activities 421.5$ 405.4$ 400.3$ 314.4$ 665.8$ 358.3$ 333.2$ (190.0)$

Deductions or Additions to Reconcile to Free Cash Flow:

Net purchases of property, plant, equipment and computer software (110.5) (107.0) (100.6) (135.9) (121.5) (100.5) (105.2) (73.7)

Free Cash Flow 311.0$ 298.4$ 299.7$ 178.5$ 544.3$ 257.8$ 228.0$ (263.7)$

Less: Streamlining & separation payments (40.7) (33.4) (25.7) (22.4) (20.1) (16.5) (22.1) (28.2)

Less: A/R securitization related (payments)/receipts - - - (73.5) - - - 59.6

Less: EC fine related reimbursements/(payments) - - - - 283.7 - - (437.2)

Less: Indirect tax related payments - - (0.3) - - - - -

Less: Acquisition related (payments)/receipts (8.8) 3.4 (0.7) (1.4) - - - -

360.5$ 328.4$ 326.4$ 275.8$ 280.7$ 274.3$ 250.1$ 142.1$

Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow

Twelve Months Ended December 31

Performance Free Cash Flow

Note: This statement reconciles net cash provided by operating activities to free cash flow. Management believes that presenting free cash flow and performance free cash flow is useful to shareholders because it

demonstrates our ability to generate cash and the health of our business. Free cash flow is also one of the several measures used to determine incentive compensation for certain employees.



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