J.P. Morgan 2016 Auto Conference

Financial Policy Planning > Initial leverage - Net leverage 1 of ~2x at spin (expected to decline materially) $1.5bn of 5-year pre-payable bank debt - $2.0bn in longer tenor bonds No near term maturities > Leverage target - - Unadjusted Debt / EBITDA consistent with top performers in peer group > Cash balance / liquidity - Target minimum cash balance of ~$500mm / maintaining a committed credit facility ($1.5bn) > Capex funding - Invest in the business and return to normal/sustainable levels to support organic growth Low capex requirements (~3% of sales) 1. Refer to appendix for management's rationale for using these metrics > Dividend share repo spend - - Balanced capital allocation plan aims to support consistent return of capital to shareholders while maintaining flexibility Pay a competitive dividend in-line with auto supplier peers Modest share repurchase plan Opportunistic share repurchase > Debt service - Pay down drawn term loan debt opportunistically Strong cash flow profile will support debt service post-spin > Pension / OPEB - - Relatively small, global unfunded liability (~$100m) versus key automotive peers Continue to manage and reduce balance sheet risk on a global basis with limited required cash funding > M&A Opportunistic/bolt-on M&A - Opportunities to capitalize on growth in emerging markets; leveraging China JV relationships with Asian OEMS 29

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