Meritor Acquisition and 2022 Financial Results slide image

Meritor Acquisition and 2022 Financial Results

Table of Contents Components Segment Results Financial data for the Components segment was as follows: Years ended December 31, 2022 vs. 2021 Favorable/(Unfavorable) 2021 vs. 2020 In millions External sales 2022 2021 2020 7,847 $ 5,932 $ Amount 4,650 $ 1.915 Percent Amount Percent 32% $ 1,282 28 % Intersegment sales 1,889 1,733 1,374 156 9% 359 26% Total sales 9,736 7,665 6,024 2,071 27% 1,641 27% Research, development and engineering expenses 309 307 264 (2) (1)% (43) (16)% Equity, royalty and interest income from investees 71 50 61 21 42% (11) (18)% Interest income Russian suspension costs (¹) Segment EBITDA 12 5 4 7 NM 25% 5 5 NM -% 1,346 (2) 1,180 961 166 14% 219 23% Percentage Points Percentage Points Segment EBITDA as a percentage of total sales "NM" not meaningful information 13.8 % 15.4 % 16.0 % (1.6) (0.6) (1) See NOTE 23, "RUSSIAN OPERATIONS," to our Consolidated Financial Statements for additional information. (2) Includes $83 million of costs related to the acquisition and integration of Meritor and $28 million of costs associated with the planned separation of our filtration business. Sales for our Components segment by business were as follows: In millions Emission solutions Axles and brakes Filtration Turbo technologies Electronics and fuel systems Automated transmissions Total sales "NM" not meaningful information Favorable/(Unfavorable) 2022 Years ended December 31, 2021 2022 vs. 2021 2021 vs. 2020 2020 Amount Percent Amount Percent $ 3,494 1,879 $ 3,499 $ 2,632 $ (5) % $ 867 33 % 1,879 NM 1,557 1,438 1,232 119 8 % 206 17 % 1,421 (1) 1,351 1,098 70 5 % 253 23 % 792 899 754 (107) (12)% 145 19 % 593 478 308 115 24 % 170 55 % $ 9,736 $ 7,665 $ 6,024 $ 2,071 27% $ 1,641 27 % (1) Includes sales of $118 million related to the newly acquired Jacobs Vehicle Systems business. See NOTE 2, "ACQUISITIONS," to our Consolidated Financial Statements for additional information. 2022 vs. 2021 Sales Components segment sales increased $2.1 billion across most businesses. The following were the primary drivers by business: • Axles and brakes sales added $1.9 billion in sales since the completion of the Meritor acquisition. Filtration sales increased $119 million mainly due to stronger aftermarket demand in North America. Automated transmissions sales increased $115 million largely due to higher demand in North America. These increases were partially offset by the following: Electronics and fuel systems sales decreased $107 million principally due to weaker demand in China, partially offset by higher demand in North America. 43
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