BorgWarner Inc. (NYSE:BWA) Q4 2022 Earnings Conference Call February 9, 2023 9:30 AM ET Company Participants Patrick Nolan - Vice President, Investor Relations Frederic Lissalde - President, Chief Executive Officer and Director Kevin Nowlan - Executive Vice President and Chief Financial Officer Conference Call Participants Colin Langan - Wells Fargo Emmanuel Rosner - Deutsche Bank James Picariello - BNP Paribas Rod Lache - Wolfe Research John Murphy - Bank of America Luke Junk - Robert W. Baird Adam Jonas - ...

Revenue and Sales Performance - The Company aims for revenue from electric vehicle products to exceed 25% of total revenue by 2025 and approximately 45% by 2030, with a target of $4.3 billion in EV revenue by 2025[4] - In 2022, the Company's EV-related revenue was approximately $870 million, representing 6% of total revenue[4] - Total net sales for 2022 were $15,801 million, an increase from $14,838 million in 2021, reflecting an 8% growth driven by higher market production and demand[12] - The company reported net sales of $15,801 million for the year ended December 31, 2022, an increase from $14,838 million in 2021, representing a growth of approximately 6.5%[183] - The Air Management segment's net sales increased by $309 million, or 5%, for the year ended December 31, 2022, with an Adjusted Operating margin of 15.0%[49] - The Fuel Systems segment's net sales increased by $77 million, or 3%, for the year ended December 31, 2022, with an Adjusted Operating margin of 10.8%[50] Financial Performance - The Company recorded net earnings of $1,026 million for 2022, up from $639 million in 2021, with earnings per diluted share increasing to $3.99 from $2.24[23] - Net earnings attributable to BorgWarner Inc. were $944 million in 2022, up from $537 million in 2021, representing a significant increase of approximately 75.8%[186] - Earnings per share attributable to BorgWarner Inc. (diluted) rose to $3.99 in 2022 from $2.24 in 2021, marking an increase of approximately 78.1%[183] - Operating income increased to $1,374 million in 2022 from $1,151 million in 2021, reflecting a growth of approximately 19.4%[183] - Gross profit for 2022 was $3,101 million, compared to $2,855 million in 2021, indicating a gross margin improvement[183] Costs and Expenses - The cost of sales for 2022 was $12,700 million, up from $11,983 million in 2021, with material cost inflation impacting costs by approximately $674 million[14] - Selling, general and administrative expenses (SG&A) for 2022 were $1,610 million, compared to $1,460 million in 2021, representing 10.2% of net sales[15] - Warranty provision for 2022 was $117 million, which is 0.7% of net sales, down from 1.5% in 2021 when it was $225 million[91] - Increased commodity costs, particularly for metals and materials used in production, have negatively impacted operating margins, with ongoing inflation posing further risks[128][131] - The company has sought to mitigate rising costs through pass-through provisions in customer contracts and selective hedging of commodity exposures[128] Liquidity and Financial Position - As of December 31, 2022, the Company had liquidity of $3,333 million, including cash and cash equivalents of $1,333 million and an undrawn revolving credit facility of $2,000 million[27] - The Company has a $2.0 billion multi-currency revolving credit facility, maturing in March 2025, with no outstanding borrowings as of December 31, 2022[51] - Cash, cash equivalents, and restricted cash at the end of 2022 were $1,338 million, down from $1,844 million at the end of 2021[182] - Total assets increased to $16,994 million in 2022 from $16,575 million in 2021, reflecting a growth of approximately 2.5%[182] - Total liabilities rose to $9,486 million in 2022, compared to $9,313 million in 2021, indicating an increase of approximately 1.9%[182] Strategic Initiatives - The Company plans to execute a tax-free spin-off of its Fuel Systems and Aftermarket segments into a separate publicly traded company, expected to be completed in late 2023[4] - The company completed the acquisition of AKASOL, contributing to its strategic expansion in the electric vehicle market[190] - The company plans to continue pursuing growth opportunities in alternative fuels, such as hydrogen, following the spin-off[190] - The company has completed or announced five acquisitions over the last two years to support its electrification strategy[102] - The company plans to pursue business ventures, acquisitions, and strategic alliances to enhance its technology capabilities and customer base, although there are risks and uncertainties involved[104] Risks and Challenges - The Company experienced a year-over-year decrease in sales of approximately $961 million due to foreign currency fluctuations, primarily from the weakening of the Euro, Chinese Renminbi, and Korean Won[13] - The company faces significant foreign currency exchange rate risks, particularly with the Brazilian Real, British Pound, and Euro, and employs strategies such as local production facilities to mitigate these risks[85] - The ongoing investigations related to vehicle emissions standards could result in legal proceedings and fines, adversely affecting the company's financial results[125] - The company faces substantial pressure from OEMs to reduce product prices, which could adversely affect profit margins if cost reductions are not achieved[126] - The integration process of independent businesses is complex and may result in additional unforeseen expenses, which could adversely affect financial performance[107] Pension and Employee Benefits - The Company contributed $22 million, $24 million, and $174 million to its defined benefit pension plans for the years ended December 31, 2022, 2021, and 2020, respectively[33] - The funded status of all pension plans was a net unfunded position of $173 million and $184 million at December 31, 2022, and 2021, respectively, primarily due to a lower projected benefit obligation[57] - The company expects to fund its pension plans through cash generated from operations or other available financing sources for the foreseeable future[59] - The health care cost trend rate assumptions for postretirement employee health care plans were set at 6.5%, declining to an ultimate trend rate of 4.75% by 2026[45] - The company’s discount rates for pension and other postretirement benefit obligations ranged from 1.7% to 12.0%, with a weighted average of 5.5% in the U.S. as of December 31, 2022[94] Audit and Internal Controls - The company maintained effective internal control over financial reporting as of December 31, 2022, based on established criteria[144] - The company’s consolidated financial statements present fairly its financial position as of December 31, 2022, in conformity with generally accepted accounting principles[144] - The company’s internal control over financial reporting includes policies and procedures to ensure accurate financial statement preparation[148] - The company’s management excluded certain recently acquired subsidiaries from its internal control assessment due to their minimal impact on consolidated financial statements[147] - The company’s critical audit matters involved complex judgments related to tax provisions and goodwill impairment analysis[153]

BorgWarner Inc. (NYSE:BWA) Q3 2022 Earnings Conference Call October 27, 2022 9:30 AM ET Company Participants Patrick Nolan - Vice President, Investor Relations Frederic Lissalde - President, Chief Executive Officer and Director Kevin Nowlan - Executive Vice President and Chief Financial Officer Conference Call Participants John Murphy - Bank of America Noah Kaye - Oppenheimer Colin Langan - Wells Fargo Chris McNally - Evercore Luke Junk - Robert W. Baird Gavin Kennedy - Jefferies James Picariello - BNP Pari ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q QUARTERLY REPORT (Mark One) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 1-12162 BORGWARNER INC. ________________________________________________ (Exact name of registrant as specified ...

Borgwarner, Inc. (NYSE:BWA) Q2 2022 Earnings Conference Call August 3, 2022 9:00 AM ET Company Participants Patrick Nolan - VP, IR Frederic Lissalde - President, CEO & Director Kevin Nowlan - EVP & CFO Conference Call Participants John Murphy - Bank of America Merrill Lynch Emmanuel Rosner - Deutsche Bank David Kelley - Jefferies Colin Langan - Wells Fargo Securities James Picariello - BNP Paribas Exane Luke Junk - Robert W. Baird & Co. Rod Lache - Wolfe Research Noah Kaye - Oppenheimer Joseph Spak - RBC Ca ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q QUARTERLY REPORT (Mark One) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 1-12162 BORGWARNER INC. ________________________________________________ (Exact name of registrant as specified in i ...

Start Time: 09:30 January 1, 0000 10:27 AM ET BorgWarner Inc. (NYSE:BWA) Q1 2022 Earnings Conference Call May 04, 2022, 09:30 AM ET Company Participants Frédéric Lissalde - President and CEO Kevin Nowlan - EVP and CFO Patrick Nolan - VP, IR Conference Call Participants Colin Langan - Wells Fargo Aileen Smith - Bank of America Merrill Lynch Noah Kaye - Oppenheimer Rod Lache - Wolfe Research Emmanuel Rosner - Deutsche Bank Brian Johnson - Barclays Dan Levy - Credit Suisse James Picariello - BNP Paribas Mark D ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q QUARTERLY REPORT (Mark One) ☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended March 31, 2022 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission file number: 1-12162 BORGWARNER INC. ________________________________________________ | --- | --- | --- | --- | --- | --- | |--- ...

Earnings Call Presentation Q4 and FY 2021 © BorgWarner Inc. 1 February 15, 2022 1 Forward-Looking Statements This presentation may contain forward-looking statements as contemplated by the 1995 Private Securities Litigation Reform Act that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," " ...

BorgWarner Inc. (NYSE:BWA) Q4 2021 Results Conference Call February 15, 2022 9:30 AM ET Company Participants Frederic Lissalde - CEO Kevin Nowlan - CFO Patrick Nolan - VP, IR Conference Call Participants John Murphy - Bank of America Rod Lache - Wolfe Research Noah Kaye - Oppenheimer Chris McNally - Evercore Colin Langan - Wells Fargo Brian Johnson - Barclays Emmanuel Rosner - Deutsche Bank Ryan Brinkman - JPMorgan Luke Junk - Baird Dan Levy - Credit Suisse Operator Good morning. My name is Jerome, and I wi ...