Vehicle Efficiency & Environmental Sustainability Roland Brettraeger

VISION OF THE FUTURE Material and Oil prices Innovation pressure Increasing mobility Shortening of natural resources Growing need for environmental care Growing demand for safety and security Shift of economic geography among regions Truck/Bus-Specific Trends Material and Oil prices Innovation pressure New powertrain technologies Fuel efficiency Emissions reduction Alternative fuels WABCO‘s contribution: Vehicle Efficiency Enhancements by 20% “Fuel Efficiency” “Weight Reduction” Optimized Emission “Energy Recovery” Continuously improving vehicle efficiency 2 2

TOTAL COST OF OWNERSHIP Fuel Fuel is the major driver of Total Cost of Ownership Braking Losses (10.9%) Rolling Resistance (15.6%) Drivetrain & Gears Friction 6 % Auxiliaries 7 % Primary Energy Input Fuel 30% of TCO Aerodynamic Resistance (13.6%) Mechanical Losses (4.8%) Rolling 46 % Aerodynamic 40 % Thermodynamic Losses (55.1%) How can WABCO contribute reducing fuel consumption ?

WABCO’s CONTRIBUTION Weight Reduction Fuel Efficiency Energy Recovery Lighter Materials Optimized weight / performance ratio Reduce parasitic horsepower Optimized gear shifting Utilization of vehicle overrun phases Energy recuperation Annual saving > 3,700 ltr Annual saving > 625 ltr Reduced weight > 130kg Weight saving of more than 130kg (>30%), saves 117 liters Diesel per truck and year (1 barrel) Yearly fuel savings of almost 3.700 l Diesel per truck (23 barrels) Yearly fuel savings of almost 625 l Diesel per truck (4 barrels)

VEHICLE EFFICIENCY ROADMAP E-APU Air supply unit C-comp Clutch Compressor Energy Recovery Fuel Efficiency E-comp - electrical driven compressor OptiDrive Transmission Automation NG22MAX New heavy truck brake D-comp 2-stage Compressor H-comp High Output Compressor Weight Reduction Trailer EBS E Alu- Crankcase

COMPRESSORS: ALUMINIUM CRANKCASE Value to Customer Weight Reduction 40% weight reduction compared to conventional Grey Iron crankcases; up to 8 kg for twin cylinder compressor Weight reduction can be used for increased payload and/or Improved fuel economy Lower maintenance costs as result of reduced oil carry-over Reduced footprint on the environment; Better manufacturability and less machining scrap No surface treatment needed on the Compressor Crankcase -40% Description Compressor crankcase made out of Aluminum instead of Grey Iron Special alloy liner inserted as part of the casting process WABCO has already a decade of experience with Compressors having Aluminum crankcases in North America First prototypes running in the field in Europe Breakthrough in Weight Reduction for Compressors 6 6 6 6

COMPRESSORS: H-comp HIGH OUTPUT EXTENSION Value to Customer Weight Reduction 20% weight reduction (or 4 kg) compared to the use of a twin-cylinder compressor Weight reduction can be used for improved fuel economy and/or increased payload Lower maintenance costs as result of reduced oil carry-over and reduced oil degradation Lower investment when needing to accommodate increasing demand of compressed air -20% Description Extension of today’s range of 85 mm piston Compressors with variants based on 100 mm piston diameter Single Cylinder compressors providing highest air delivery up to 440cc HO twins extends the air flow of the whole WWM compressor range Singles as alternative for smaller Twins – HO Twins setting a new benchmark 7 7 7 7

COMPRESSORS: D-comp TWO-STAGE COMPRESSION Value to Customer Fuel Efficiency 1st Stage (352 cc) Dramatically reduced oil carry-over compared to single stage compression +   > 100ºC reduced peak temp. Lower maintenance costs due to oil related issues Reduced fuel consumption of 6-10% in compressor on load Recommended solution for system pressures >12 bar Higher duty-cycles possible 2nd Stage (119 cc) Description System pressure is reached in 2 stages: 1st stage up to ~ 4 bars 2nd stage to > 12 bars Intense cooling between both stages Twin-cylinder for HD application, and Three-cylinder for extra HD applications ~ 130,000 units of WABCO 2-stage compressors in the field without oil related issues p 8 Excellent performance confirmed by 130k Compressors in the field 8 8 8

COMPRESSORS: C-comp CLUTCH OPERATED Value to Customer Fuel Efficiency Huge improvement of fuel economy in off load compared to: Line unloader (up to € 1,000 annually for 1-shift operation) Power Reduction system (over € 210 annually for 1-shift operation) Lower overall noise emission as compressor is fully disengaged from engine during off load Cleaner air due to lower oil carry-over and oil degradation, driving lower maintenance costs Description Multi-disc clutch integrated into the Compressor Clutch actuation is pneumatic as with today’s Power Reduction system Fail safe operation (pressure needed to activate the clutch) First business with a major OE awarded, SOP early 2011 The Compressor Add-on Providing Highest Off-Load Fuel Saving 9 9 9 9

COMPRESSORS: E-comp ELECTRICALLY DRIVEN Energy Recovery Value to Customer Ideal solution for CV’s having hybrid or full electronic drivelines Lower overall power consumption as compressor-drive can be completely switched-off in off load Regenerated energy can be used to drive the compressor delivering highest fuel efficiency Cleaner air due to lower oil carry-over and oil degradation Oil lifetime fill; no regular service needed Description Electrically driven piston type compressor Variable compressor speed: 0-2500 rpm Own oil circuit and with own oil pump Build on field proven WWM compressor range used in automotive applications Design adaptable to be equipped with other drives (i.e. hydraulic) Robust and automotive proven WWM compressor, driven electrically 10 10 10 10

AIR PROCESSING: NEXT GENERATION E-APU Value to Customer Energy Recovery Improved fuel savings due to: utilization of overrun phases to switch on the compressor keeping discharge line pressurized during regeneration thus enabling to use full potential of small overrun phases optimization of purge cycles and regeneration process Cost efficient design with new E-APU auto - adaptation to compressor and reservoir sizes Lower vehicle integration costs as 2-body solution enables the support of global vehicle platforms on different technology levels Clean air with application of Air System Protector (Plus) Description Improved E-APU incorporating Air Dryer, Multiple Circuit Protection Valve, Pressure sensoring and PR/Clutch steering functions Connected via CAN-bus to the Vehicle Electronic Architecture Rich set of options and 2-body design providing extensive downgrade-ability for different markets E-APU is optimized in size, cost and functionality 11 11 11 11

AIR PROCESSING: SYSTEM SAVER PLUS Value to Customer Weight Reduction With weight of 20 lb without governor delivering up to 30% weight reduction compared to competition products Weight reduction delivers improved fuel economy and/or increased payload Lower maintenance costs due to the use of spin-on cartridges. Also WABCO’s coalescing variants (ASP and ASP+) can be used. Cost saving integrations for both OEM, AM and retrofit; Governor integration (optional) Integrated 2-side mounting bracket -30% Description Air Dryer with integral purge volume Integration of turbo cut-off valve, safety valve and optional heater Mounting and piping compatible to existing NA Air Dryers with integral purge volume Modular design enabling easy and cost effective maintenance Breakthrough in Weight Reduction and Service-ability 12 12 12

Breakthrough in Weight Reduction AIR DISC BRAKES: NG22MAX Weight Reduction Value to Customer 13% weight reduction compared to current heavy class brakes 5 kg per brake leads to 50 kg in a typical truck / trailer combination Weight reduction can be used for increased payload and/or Improved fuel economy Lower maintenance costs due to exchangeable wear sensor and thicker pads Environmental sustainability Free of polluting substances such as Chromium6 -13% Description With new designed mono block caliper and reinforced single piston clamping unit Brake torques > 30.000 Nm Redundant sealing combined with stable metal caps protecting the guiding system Large field test running satisfactorily Breakthrough in Weight Reduction 13 13 13 13

Value that benefits manufacturers, fleets and drivers TRANSMISSION AUTOMATION 1985 2000 Fuel Efficiency Value to Customer Lower installation cost Reduced weight Fuel saving up to 3% (over 1 Million AMT systems sold - annual saving up to 800,000,000 litres of diesel!) Maintenance cost savings Extended components lifetime Supports driver in economic driving 2005 2008 Description WABCO transmission automation systems are available in different configurations for light, medium and heavy duty vehicles. Global market leader since 1985 More than 50% of heavy duty trucks produced in Europe are equipped with AMT systems Focus on fuel efficiency will push higher penetration in all markets Here are some specifics on two applications that will drive new sales for us -- Truck Automated Transmissions and Air Disc Brakes. Both of these are opportunities where we have a competitive advantage Innovation Mitigates Price Pressure Leaders Define the Product / System - Others Must Pay to Follow Migration Path : Manual>>Clutch Servo>>Automated Truck Automated Transmissions There is a significant market opportunity here. 50% of the Heavy Trucks delivered in Europe will have automated transmissions by 2005. The US will follow after that repeating the pattern of ABS We have partnerships with Volvo, DaimlerChrysler and ZF in Europe, and these will extend globally as familiarity with the technology increases. Volvo will include our technology on its flagship truck [FH12] – it’s called the “I-Shift” – i stands for intelligent And, we are on track to deliver the sales projections we gave in February this year. In fact, if anything we may have been a little conservative. Sales in 2003 were ~$ 70M, and we expect sales of ~ $155M in 2008 Value that benefits manufacturers, fleets and drivers

Standardization and Modularity to shorten time to market WABCO OptiDriveTM Fuel Efficiency Value to Customer OptiDriveTM BENEFITS (besides AMT Benefits) Easily adaptable to existing trucks and transmissions Lower development cost Shorter time to market Minimized space requirements at gearbox Reliable design based on long experience Development and Testing according to state-of-the-art specifications Offering full system development Description Here are some specifics on two applications that will drive new sales for us -- Truck Automated Transmissions and Air Disc Brakes. Both of these are opportunities where we have a competitive advantage Innovation Mitigates Price Pressure Leaders Define the Product / System - Others Must Pay to Follow Migration Path : Manual>>Clutch Servo>>Automated Truck Automated Transmissions There is a significant market opportunity here. 50% of the Heavy Trucks delivered in Europe will have automated transmissions by 2005. The US will follow after that repeating the pattern of ABS We have partnerships with Volvo, DaimlerChrysler and ZF in Europe, and these will extend globally as familiarity with the technology increases. Volvo will include our technology on its flagship truck [FH12] – it’s called the “I-Shift” – i stands for intelligent And, we are on track to deliver the sales projections we gave in February this year. In fact, if anything we may have been a little conservative. Sales in 2003 were ~$ 70M, and we expect sales of ~ $155M in 2008 First system to convert existing manual transmission into automated manual transmission High degree of modularity Full functionality including drive software Provides easy access to all benefits of AMT to emerging markets Standardization and Modularity to shorten time to market

TRAILER EBS: OptiTurnTM, OptiLoadTM, ECAS Fuel Efficiency Lower overall fuel consumption due to Trailer EBS E ECAS, Lift axle control (0,7l/100km) Less tire wear, reduced tire wall damage from street corners Significantly reduces TCO avoids damages, less fuel consumption, longer tire usage.. Reduces vehicle break downs Increases tire life (up to 30%) Less axle distortion Driver alerts Value to Customer Description BETTER MANEUVERING through curves, roundabouts and at loading bays Reduced cost by eliminating the need of a steering axle Significantly REDUCES semi-trailer tire wear and fuel consumption Improved building, operating and maintenance efficiency throughout trailer lifetime Leading in intelligence and safety revolution 16 16 16 16

We have a clear path forward enhancing vehicle efficiency by 20% SUMMARY We have a clear path forward enhancing vehicle efficiency by 20% 11% additional weight reduction of our brake system components will be available within the next 5 years Weight reduction can be used for increased payload and/or Improved fuel economy Products to achieve 10% fuel savings available or in the short term pipeline C-comp Compressor with integrated clutch completely eliminating parasitic horsepower in off-load is our latest breakthrough development Each liter of Diesel saved results in 2,7kg less CO2 emission. Various products in pipeline to support stricter emission regulations WABCO products free of polluting substances such as Chromium6 Continuously striving for more… 17 17 17 17