#1Q1 2024 BORGWARNER CHARGING FORWARD 2027 Investor Presentation#2Forward-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," "outlook,” “plans,” “potential,” “predicts,” “project,” “pursue,” “seek,” “should,” “target,” “when,” “will,” “would,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than statements of historical fact, contained or incorporated by reference in this presentation that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy, including changes to operations, competitive strengths, goals, expansion and growth of our business and operations, plans, references to future success and other such matters, are forward-looking statements. Accounting estimates, such as those described under the heading "Critical Accounting Policies and Estimates" in Item 7 of our most recently filed Annual Report on Form 10-K ("Form 10-K”), are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate under the circumstances. Forward-looking statements are not guarantees of performance, and the Company's actual results may differ materially from those expressed, projected or implied in or by the forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of February 8, 2024. Forward-looking statements are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties, among others, include: supply disruptions impacting us or our customers, such as the current shortage of semiconductor chips that has impacted original equipment manufacturer ("OEM") customers and their suppliers, including us; commodity availability and pricing, and an inability to achieve expected levels of recoverability in commercial negotiations with customers concerning these costs; competitive challenges from existing and new competitors including OEM customers; the challenges associated with rapidly changing technologies, particularly as they relate to electric vehicles, and our ability to innovate in response; the difficulty in forecasting demand for electric vehicles and our electric vehicles revenue growth; disruptions in the global economy caused by wars, including the wars in Ukraine and the Middle East; the ability to identify targets and consummate acquisitions on acceptable terms; failure to realize the expected benefits of acquisitions on a timely basis; the possibility that our recently-completed tax-free spin-off of our former Fuel Systems and Aftermarket segments into a separate publicly traded company will not achieve its intended benefits for us; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to the acquired businesses; our dependence on automotive and truck production which is highly cyclical and subject to disruptions; our reliance on major OEM customers; the impact of any future strikes involving some of our OEM customers and any actions such OEM customers take in response; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global economic environment; the outcome of existing or any future legal proceedings, including litigation with respect to various claims, or governmental investigations, including related litigation; future changes in laws and regulations, including, by way of example, taxes and tariffs, in the countries in which we operate; impacts from any potential future acquisition or disposition transactions; and the other risks noted in reports that we file with the Securities and Exchange Commission, including Item 1A, "Risk Factors” in our most recently filed Form 10-K and/or Quarterly Report on Form 10-Q. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this presentation to reflect any change in our expectations or any change in events, conditions, circumstances, or assumptions underlying the statements. 2 BORGWARNER#3Non-GAAP Financial Measures This presentation contains information about BorgWarner's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non-GAAP financial measures are reconciled to their closest GAAP financial measures in the Appendix. The provision of these comparable GAAP financial measures in the context of guidance for 2024 is not intended to indicate that BorgWarner is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the company at the date of this presentation and the adjustments that management can reasonably predict. Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes. Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by BorgWarner may not be comparable to similarly titled measures reported by other companies. 3 BORGWARNER#4Executing on Our Vision & Mission Our Vision ■ A clean, energy-efficient world Our Mission ■ We deliver innovative and sustainable mobility solutions 4 BORGWARNER#5BorgWarner Today 63 Manufacturing Locations 19 # Technical Centers ~39,900 Employees Global Headquarters Auburn Hills, MI ~8,300 Engineers Americas ~11,800 Employees Europe ~15,900 Employees Asia ~12,200 Employees 26 24 32 Locations Locations Locations 3 10 7 Countries Countries 5 Note: Data pro forma for completion of spin-off transaction; locations include only manufacturing and technical centers Countries BORGWARNER#6Charging Forward Strategy Supports Long-Term, Profitable Growth and Near-Term Resiliency CHARGING FORWARD 2027 STRATEGY 2 eProduct Growth $$$ eProduct Profitability Maximize Foundational Value BORGWARNER#7Our Electrification Strategy is Accelerating Organic eProduct Activity has Intensified ~$2.2B 2021A-2023E Organic eProduct R&D & CapEx Investment 39 Awards eProduct Awards Announced Since March 2021 Investor Day $2.5-$2.8B 2024E eProduct Sales Guidance 7 2020 Delphi Technologies Announced SANTROLL CHARGING FORWARD → drivetek PHINIA Spin-Off 2021 AKASOL 2022 Rhombus Energy Solutions 2023 SSE ELDOR® CORPORATION BORGWARNER#8Our Priorities for Delivering on Our Vision Creating a Cleaner, More Energy-Efficient World Enhancing the Sustainability of Our Value Chain Focusing on Workforce Transition 8 ■ 88% of 2022 sales from clean and emissions- reducing products ■ 53% of 2022 R&D invested in eProduct projects ■ Commitment to carbon neutrality by 2035 ■ Goal of 25% Scope 3 emissions reduction by 2030 from 2021 baseline ■ Power to Evolve program has placed >90% of participating engineers into electric platforms ■ 338 engineers enrolled in three cohorts BORGWARNER#9Estimated High-Growth Opportunities Across Large eProduct Market True Addressable Market¹ ($B) $173 +9.4% $145 eProduct $138 $92 $100 $40 $52 $45 $36 Foundational 2023E 2027E 2030E eProduct True Addressable Market' ($B) ~20% CAGR $138 Category CAGR '23-30 Charging² 26% eHeating³ 24% $100 High Voltage Box & OBC4 20% $40 2023E 2027E Inverter 15% eGear/P4 15% Battery5 34% eMotor 18% Other6 21% 2030E 9 eProduct TAM ~4x Size of Foundational TAM¹ by 2030 ~20% Annual eProduct Growth with Power Electronics Remaining the Largest Market BORGWARNER Source: BorgWarner Global Market Research (1) Excludes in-house markets; (2) DCFC, low and high Voltage, LV and CV on-highway; NA + EU + Asia only; (3) cabin and battery heaters only; (4) DC/DC converters, OBC, standalone and combo units; (5) CV on-highway NA & EU only; (6) other propulsion controllers, FCAS, battery cooling, HV eFan, industrial PE, PE cooling, etc.#10Content Opportunity Per Vehicle (COPV) Increases from Combustion to Advanced Hybrids and BEVS Est. 2027 BorgWarner Content Opportunity Per Light Vehicle Summary 10 $2,117 $2,559 $548 $438 Combustion Combustion + Advanced Hybrid BEV Combustion eProduct BORGWARNER#11Our Investments Have Resulted in a Wide- Ranging Electric Vehicle System Portfolio STATIONARY CHARGING BORGWARNER DC fast charger (DCFC) 11 THERMAL MANAGEMENT High-voltage coolant heater (HVCH) eFan ENERGY STORAGE & MANAGEMENT I Battery management system (BMS) Inverter I CV Battery pack Battery cooling plates POWER ELECTRONIC AUXILIARIES High-voltage box On-board DC-DC charger (OBC) converter,' ELECTRIC PROPULSION Electric motor Reduction gear Integrated drive module (IDM) BORGWARNER#12Expected eProduct Sales Growth Supported by Capacity Expansion and Secured New Programs ~1.5B eProduct Sales $2.5B to $2.8B ~$2.0B $700M to $800M Battery Systems ☐ N.A. ~15% China/ROW ~40% China/ROW ~45% 2022 2023 2024 Est. 12 *BorgWarner estimate as of February 2024 Other eProducts Growth Drivers ■ Expect Global LV 2023 to 2024 BEV and Hybrid markets* ~20% increase ☐ Battery system capacity expansion to meet customer demand ePropulsion expectations supported by market growth, multiple Asia iDM launches and initial North American power electronics launches ▪ eThermal launched or expected to launch four disclosed products in 2nd half 2023 & 2024 BORGWARNER#1313 Significant Volumes Across Numerous eProduct Categories BORGNIGNER Expected Inverter Volumes ~1.3M ~45% CAGR ~6M 2023 2027E Expected Production Capacity ~2.2 GWH >65% CAGR >6 GWH 2023E 2025E Expected High-Voltage Coolant eHeater Volumes ~42% CAGR ~8M ~2M 2023 2027E Expected eMotor Volumes (including in IDM) ~25% CAGR ~IM ~2.5M 2023 2027E BORGWARNER#14North America 12 eProduct Awards Since 2021 Product SOP Year Winning eProduct Awards with OEMs Around the World Europe 10 eProduct Awards Since 2021 Product China/ROW 17 eProduct Awards Since 2021 Product SOP Year SOP Year CV Battery System 2023 DC Fast Charging Station 2022 HV Coolant Heater 2021 Battery Pack 2023 Battery Management System 2023 400V İDM 2023 DC Fast Charging Station 2023 800V HV Coolant Heater 2023 Dual Inverter 2023 HV Inverter 2024 HV eFan 2024 400V İDM 2023 Generator Inverter 2024 CV Battery System 2024 800V Inverter 2023 800V Inverter 2025 800V Inverter 2025 800V eMotor 2023 HV eFan 2025 800V Inverter 2025 HV Coolant Heater 2023 Battery Cooling Plate 2025 800V Inverter 2025 P4 Hybrid iDM 2023 800V HV Coolant Heater 2025 Battery Cooling Plate 2025 Motors for E-Axles 2023 400V HV Coolant Heater 2025 HV eFan 2025 eMotor 2023 800V HV Coolant Heater 2026 800V HV Coolant Heater 2024 800V Onboard Charger 2027 400V İDM 2024 Hybrid IDM 2024 eMotor Rotor/Stator 2024 Boosted Dual Inverter 2024 Inverter + e Motor 2025 Comb. Inverter & DC/DC Converter 2025 14 BORGWARNER#15Attractive Characteristics of Remaining Foundational Portfolio Leading Market Positions Maintaining Expected Adjusted Operating Margins 15 Focused ICE Portfolio Helps Customers Transition From Combustion to Hybrid to Electric ~100% Expected Free Cash Flow Conversion 1. Defined as Free Cash Flow / Adj. Net Income; Free Cash Flow is a non-US-GAAP measure BORGWARNER#16Strong Foundation From Core Market-Leading Technologies Supports EV Growth Supporting customers with access to critical technology as they execute Supporting Customers their own transitions to EV Continuity of Technologies and Capabilities Foundational Air and Thermal Management Example: EGR Modules eProduct Thermal Management HV Coolant Heaters 16 Enhancing Capabilities Core design, manufacturing and engineering capabilities applicable to electric vehicles Drivetrain Strong Financial Profile Example: Transfer Cases Top-quartile¹ profitability and strong cash generation supporting investment in EV technologies Engine and Transmission Controllers Example: Electronic Control Units 1. Estimated current margin relative to automotive industry peer group Drivetrain and Vehicle Dynamic Integrated Drive Modules Power Electronics and Electronics 5519 Inverters BORGWARNER#17Leveraging Existing Footprint to Support eProduct Growth 17 North America Europe China/ROW Plant Location eProduct SOP Plant eProduct SOP Plant Location eProduct SOP Location SLP, Mexico eMotor & iDM assembly 2021 Landskrona, eMotors 2018 Jiangshan, China HV Heaters 2021 Sweden Cadillac, MI, US HV Heaters 2022 Viana, HV Heaters 2021 Portugal Wuhan, China Seneca, SC, US Battery Packs 2024 eMotor & IDM assembly 2022 Blonie, Inverters 2023 Additional Facility Poland eFan 2025 Changnyeong, Korea Additional Facility Battery Coolers x2 Additional Facilities eMotor & iDM assembly 2023 eFan 2024-2025 2026 x2 Additional Facilities Battery & PE Coolers 2025-2026 Utilizing Existing Manufacturing Facilities to Support eProduct Growth BORGWARNER#18Proactive Actions to Sustain Foundational Margins Executing from Position of Strength 18 Estimated Restructuring Annualized Cost Savings $80-$90M $10-$20M 2023E $60-$70M 2025E 2027E ■ Restructuring, closure or consolidation of select facilities in all major regions ☐ Est. additional cash restructuring costs of $130-$150M from 2023-2027 ■ Expect to generate annual cost savings of $80-$90M by 2027 Positions company to sustain strong Foundational product margin profile and long-term competitiveness BORGWARNER#19Charging Forward Objectives Support Double- Digit Growth in Profitability 19 $ Sales BWA Adj. Operating Income (% Margin) ~$14.2B ~$21B Double-Digit CAGR ~$2.1B ~$1.4B ~10% ~9.6% 2023 2027E BORGWARNER#20Expected Strong, Stable Earnings Profile Under Multiple 2030 EV Penetration Scenarios $2.8 Adj. Operating Income ($B) 20 20 $2.7 $2.6 $2.5 $2.4 Slower EV Ramp Total Sales ~$24B Adj. Op. Margin ~10%-10.5% Baseline EV Ramp Total Sales ~$25B Adj. Op. ~10% Faster EV Ramp Total Sales ~$26B Adj. Op. Margin Mid-9% $2.3 $2.2 40% EV Penetration 48% EV Penetration 60% EV Penetration BORGWARNER#21Appendix 21 BORGWARNER#2222 Innovation Driving Technology Leadership in Inverters BEV inverter WRIGHTONGO Battery Driver input Key Inverter Components Competitive Advantage Computer Custom integrated circuits (ASICs) & software GearBox Capacitor Architecture innovation for advanced development Power Module Viper Power switch with double-sided cooling Rotational force at wheels Electric motor BORGWARNER#232023 Market Expectations LV Units in millions BorgWarner Global FY'22 Actual Market FY'23 Est. North America Europe China 90.1 Electric ~12% 88.4 to 90.5 Electric ~15% FY'22 Actual FY'23 Est. FY'22 Actual FY'23 Est. FY'22 Actual FY'23 Est. Hybrid ~20% Hybrid ~24% 28.6 28.2 to 28.9 Combustion 17.8 ~68% Combustion ~61% 15.6 15.6 to 16.0 17.2 to 17.6 BorgWarner Estimated LV/CV Weighted Market Up (2.5%) to Flat 23 Note: Actual and estimated volumes are BorgWarner market assumptions BORGWARNER#242024 Outlook and Other Items 24 Full-year Net Sales Outlook ($M) 9.6% 2023 net sales $14,198 Adj. Operating Margin FX Organic net sales change Market & Earnings Outlook 2023 Actual 2024 Outlook Organic growth* 12.5%* ** 1% to 5% $0 eProduct sales* *** $2.0B $2.5B to $2.8B $162 $662 Adj. diluted EPS* $3.75 $3.65 to $4.00 2024 net sales excl. 9.6% -9.9% Free cash flow* $14,360 $14,860 Eldor impact Adj. Operating Margin Eldor impact $565M $475M to $575M $40 *Adj. operating margin, adj. diluted EPS, free cash flow (FCF) and organic growth on this slide are non-US GAAP measures. See reconciliation to US GAAP in Appendix. 9.2% - 9.6% 2024 net sales $14,400 $14,900 Adj. Operating Margin **Adjusted for net sales from continuing operations basis. ***eProducts include all products utilized on EVs, plus those products and components that are included in hybrid powertrains whose underlying technologies are adaptable or applicable to those used in or for EVs. BORGWARNER#25Adjusted Operating Income and Margin Reconciliation to US GAAP The Company defines adjusted operating income as operating income adjusted to exclude the impact of restructuring expense, merger, acquisition and divestiture expense, intangible asset amortization expense, other net expenses, discontinued operations, and other gains and losses not reflective of the Company's ongoing operations. Adjusted operating margin is defined as adjusted operating income divided by net sales. $ in millions Sales Operating income Operating margin % 2027E $21,000+ ~$1,800-$1850 Mid 8% Range 25 25 Non-comparable items: Restructuring expense Merger, acquisition and divestiture expense, net Intangible asset amortization expense Service and lease agreement termination Gain on sale of business Gain on sale of asset Other non-comparable items Adjusted operating income Adjusted operating margin ~100-150 ~50 ~92 ~$2,100 ~10% BORGWARNER#26Adjusted Operating Income and Margin Reconciliation to US GAAP 26 $ in millions Net Sales Operating income Full Year 2024 Guidance Low High $14,400 14900 $ 1,225 1,320 8.5% 8.9% Operating margin Non-comparable items Restructuring expense Intangible asset amortization expense 30 $ 40 70 70 Adjusted operating income $ HA Adjusted operating margin 1,325 $ 1,430 9.2% 9.6% Electric Hybrid Systems of Eldor Corporation 60 45 Adjusted operating income $ 1,385 $ 1,475 Adjusted operating margin 9.6% 9.9% BORGWARNER#27Organic Net Sales Change Guidance Reconciliation From Continuing Operations Organic Net Sales Change BorgWarner net sales change year over year excluding the estimated impact of foreign exchange (FX) and the acquisitions of the electric vehicle solution, smart grid and smart energy businesses of Hubei Surpass Sun Electric and the Electric Hybrid Systems business segment of Eldor Corporation. 27 22 $ in millions FY 2023 Low $ High Net Sales 14,198 $ 14,198 FX FY 2024 Acquisition Impact Organic Net Sales Change FY 2024 Net Sales Organic Net Sales Change % +A 44 $ 158 $ 14,400 1.1% 44 658 14,900 4.6% BORGWARNER#28Adj. Earnings per Diluted Share Guidance Reconciliation From Continuing Operations Adjusted Earnings Per Diluted Share The Company defines adjusted earnings per diluted share as earnings per diluted share adjusted to eliminate the impact of restructuring expense, merger, acquisition and divestiture expense, other net expenses, discontinued operations, other gains and losses not reflective of the Company's ongoing operations, and related tax effects. The non-comparable items presented below are calculated after tax using the corresponding effective tax rate discrete to each item and the weighted average number of diluted shares for each of the periods then ended. 28 Full-Year 2024 Guidance Low High Earnings per diluted share $ 3.56 $ 3.88 Non-comparable items Restructuring expense Adjusted earnings per diluted share $ 0.09 0.12 3.65 $ 4.00 BORGWARNER#29Free Cash Flow Reconciliation to US GAAP Free Cash Flow The Company defines free cash flow as net cash provided by operating activities minus capital expenditures, including tooling outlays. The measure is useful to both management and investors in evaluating the Company's ability to service and repay its debt. 29 29 Full Year 2024 Outlook $ in millions Low High Net cash provided by operating activities LA Capital expenditures, including tooling outlays Free cash flow 1,325 $ (850) 1,375 (800) $ 475 $ 575 BORGWARNER