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Investor Presentaiton

FY'21 Pro Forma Adj. Operating Income and Adj. Operating Margin Reconciliation to US GAAP 23 $ in millions Net sales Pro forma disposition impact Pro forma net sales Operating income Operating margin Non-comparable items: Restructuring expense Customer warranty settlement Intangible asset amortization Merger, acquisition and divestiture expense, net Loss on sales of businesses Asset impairments and lease modifications Other, primarily asset write-offs Three Months Ended December 31, 2021 3,655 Twelve Months Ended December 31, 2021 14,838 (40) (177) |$ 3,615 $ 14,661 tA $ 178 $ 1,151 4.9 % 7.8 % LA 20 124 A 163 124 23 14 22 17 88 50 29 17 (3) Adjusted operating income $ 398 $ 1,619 Pro forma disposition impact (4) (14) Pro forma adjusted operating income $ 394 $ 1,605 Pro forma adjusted operating margin 10.9 % 10.9 % * BorgWarner
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