MAY 2019

GARRETT – ADVANCING MOTION

OVERVIEW
Strong mission

Garrett is a cutting-edge technology

Garrett
provider is a vehicles
that enables cutting-edge
to become
technology providerefficient
safer, more connected, that enables
and
environmentally friendly
vehicles to become safer,
more
We lead connected,
the developmentefficient and
of innovative
and differentiated solutions which
environmentally
empower the transportation friendly
industry to
redefine and further advance motion

3
Copyrights © 2019 Garrett Motion Inc.
Pioneering technology solutions provider

• Reduce fuel usage • Optimize fuel economy • Protect vehicles against

• Reduce exhaust emissions • Step towards a zero cyber attacks
• Enhance engine performance emissions future • Diagnose and predict anomalies
• More responsive driving • Avoid breakdown and liabilities

4
Serving automotive customers with differentiated technologies Copyrights © 2019 Garrett Motion Inc.
Garrett at a glance

$3.4B 5 13
2018 Revenue R&D Centers state-of-the-art
manufacturing facilities

~7,500 12 50,000+
“Close-to-Customer”
Employees Turbos / day
engineering centers

~1,200 100+ 100M+

Engineers New applications annually Garrett turbos in use globally

40 1,400+
Vehicle manufacturers served Patents issued or pending
globally

5
Copyrights © 2019 Garrett Motion Inc.
Broad product portfolio, serving all markets

FROM 0.8L TATA ENGINE TO 100L CATERPILLAR MINING TRUCK ENGINE

LIGHT VEHICLE: GASOLINE LIGHT VEHICLE: DIESEL ELECTRIC BOOSTING SOFTWARE SOLUTIONS ON-HIGHWAY VEHICLES OFF-HIGHWAY VEHICLES

2018 Revenue Americas

Commer- After-
cial Vehicle market

$3.4B Regions Vehicle type

Light Ve-
Channels

Asia hicle
Europe
OEM

6
All vehicles, all segments, all regions Copyrights © 2019 Garrett Motion Inc.
Global footprint, local player
STUTTGART
Germany
WOLFSBURG
Germany
THAON-LES-VOSGES
MUNICH
France
Germany
CHEADLE PRAGUE
UK Czech Republic
WATERFORD BRNO
Ireland Czech Republic
PLYMOUTH
Michigan PRESOV ANSAN
BASILDON Slovakia Korea
TORRANCE INDIANPOLIS UK WUHAN
ROLLE
California Indiana BUCHAREST China
PARIS Switzerland KODAMA
Romania
ATLANTA France TURIN Japan
MEXICALI 1
Georgia Italy
Mexico SEOUL
MEXICALI 2 PUNE Korea
Mexico India

BANGALORE
India
SHANGHAI
China

GUARULHOS
Brazil

7
Sales, R&D and Engineering close-to-customers | Global manufacturing presence Copyrights © 2019 Garrett Motion Inc.
Differentiated integrated supply chain strategy

Differentiated internal
manufacturing technologies 13
state-of-the-art
• Home-grown “Industry firsts” manufacturing facilities
(high-speed electron-beam,
laser welding...)
• Proprietary super high speed balancing

• 100+ manufacturing patents and

trade secrets 50,000+
Turbos / day

Standardized manufacturing
processes
• Global engine programs sourced from
multiple plants
• Maximized flexibility and assets utilization 100+
New applications annually
• Resilience to industrial risks

8
Driving best-in-class productivity and performance Copyrights © 2019 Garrett Motion Inc.
Long-term customer relationships with 40+ manufacturers

PRE-DEVELOPMENT PRODUCT DEVELOPMENT VEHICLE PRODUCTION AFTERMARKET

4 YEARS 2 YEARS 3-5 YEARS 10-15 YEARS

KEY
ACTIVITIES
INNOVATION CUSTOMIZATION MANUFACTURING REPLACEMENT

SINGLE SUPPLIER PER ENGINE

20+ YEARS CYCLE

Weifang Diesel

63 YEARS 40 YEARS 40 YEARS 38 YEARS 35 YEARS 33 YEARS 32 YEARS 30 YEARS 25 YEARS

9
Early engagement leads to long-term global business relationships Copyrights © 2019 Garrett Motion Inc.
 Technology Overview

TECHNOLOGY
DIFFERENTIATION
Craig Balis - CTO
History rich in innovation

Milestones

1950’s – 60’s 1990’s 2000’s TODAY

2017: Integrated Health

2017:Cybersecurity SOFTWARE
Vehicle Management

2008: 1 st turbo used on 2016: 1st fuel cell 2018:

gas-hybrids E-Compressor E-Turbo passenger car
ELECTRIFICATION

1998: Launched Gen 2 VNT

2008: Gen 1 WG turbo 2017: Gen 3 WG turbo 2018: Gen 4 WG turbo
for VW/Audi diesel
GASOLINE
1998: 1 st electric actuator for 2009: Gen 4 VNT
2014: Gen 2 WG turbo 2016: Gen 1 Gas VNT
VNT for VW diesel

1962: 1 st turbo for passenger 2006: 1st Two Stage 2015: 1st VNT/VNT
1995: Gen 1 VNT for W/Audi 2017: Gen 6 VNT
car (Oldsmobile Jetfire) System for PSA two-stage
DIESEL
1967: Deere goes turbo, 2000: Double axle VNT 2004: Gen 3 VNT 2011: World-first ball bearing 2013: Gen 5 VNT for EU6
followed by the whole industry DutyDrive introduced at DDC for BMW diesel turbo for Daimler cars

1955: 1 st turbo for 1997: 1 st ball bearing turbo 2010: DualBoost turbo with 2
2011: Gen2 VNT DutyDrive at John Deere COMMERCIAL
Caterpillar tractor at Nissan Diesel stage compressor, Ford

Note: WG – Wastegate turbine (fixed geometry); VNT – Variable Nozzle Turbine; EVR – Exhaust gas recirculation; IVHM – Integrated Vehicle Health Management

11
Accelerating technology innovation Copyrights © 2019 Garrett Motion Inc.
Regulatory changes driving need for new technologies

mm units production per year + 15M

110 New cars by 2025
Light Vehicle Production
100

90

80 + 21M
61% Turbocharged cars by 2025
70
Turbo Production
60
45%
50

40 + 30M
Hybrid Vehicle Production Hybrid cars by 2025
30

20

Battery Electric
+ 5M
10
Vehicle Production
0
2017 2018 2019 2020 2021 2022 2023 2024 2025 Battery Electric cars by 2025

12
More environmentally friendly cars by 2025 Copyrights © 2019 Garrett Motion Inc.
Digital disruption driving need for new technologies

120%

100%
Connected Vehicles
Reaching 100%
80%

60% Autonomous Vehicles

Level 2 and 3
40%

20%
Autonomous Vehicles
Level 4 and 5
0%
2018 2025 2030

13
Increased vehicle complexity requiring sophisticated software solutions Copyrights © 2019 Garrett Motion Inc.
Garrett’s differentiated technology offering

TURBOCHARGERS ELECTRIC PRODUCTS AUTOMOTIVE SOFTWARE

• Wastegate • Mild Hybrid • Cyber Security

INNOVATIVE • Twostage • Plug-in Hybrid • Integrated Vehicle Health Management
SOLUTIONS • Variable Geometry Turbine • Fuel Cell Electric • Powertrain Controls & Virtual Sensing

• Fuel economy & fleet CO2 compliance • Best CO2 for hybrid powertrains • Safety & security
• Compliance with emissions standards • Enhanced driving pleasure • Reliability / assured functionality
BENEFITS • Reliability and asset up time • Full portfolio of E-Boosting solutions • Vehicle up-time

14
Copyrights © 2019 Garrett Motion Inc.
Turbocharging – technology at the cutting edge

Journal bearing clearance From 50,000 RPM to 200,000 RPM

0.0004 inches of oil film in less than 2 seconds
7 times thinner than human hair 3 seconds for F-16 engine to
spool up to maximum thrust

Average compressor flow

20 cubic meters per minute
The capacity of a utility van

Rotor group rotating speed

Wheels tip speed Can reach 350,000 revolutions
1,300 miles per hour per minute
supersonic, more than 1.7 times B787 engines reach only 14,000 RPM
the speed of sound

Turbine inlet temperature

Being shaken Over 1,900 degrees Fahrenheit
at 25g vibration level window glass melts at
fighter jets can withstand ~14g 1,800 degrees Fahrenheit

15
Jet engine technology under the hood of your car Copyrights © 2019 Garrett Motion Inc.
Garrett light & commercial vehicle turbo portfolio

Turbos Benefits

• Broadest portfolio with

FREE-FLOAT VARIABLE NOZZLE TURBINE
WASTEGATE
(VNT™) dedicated engineering support

• Fuel efficiency improvement

through ball bearing, coating
and electric actuation options

• Innovative variable nozzle

turbine design for lower
emissions, higher power density
VNT DUTYDRIVE TWOSTAGE TURBO-COMPOUNDING ELECTRIC BOOSTING and fuel savings

• Enhanced transient response

for improved drivability and fun
to drive

16
Copyrights © 2019 Garrett Motion Inc.
Turbocharging electrified powertrains

MILD-HYBRID (48V) HIGH VOLTAGE HYBRID FUEL CELL ELECTRIC • 76% hybrid powertrains and
100% hydrogen fuel cell
powertrains turbocharged
Audi SQ7 Mitsubishi Outlander Honda Clarity by 2025

• Full CO2 potential unlocked

CORE
Base turbo
TURBOCHARGERS with electric boosting

• Electric vehicle with hydrogen

ELECTRIC
Electric Turbo / E-Compressor FC E-Compressor fuel cell requiring high
BOOSTING
performance E-Compressor

Zero
10 - 20% 60 - 70% Not accounting for
H2 production

Note: ICE - Internal combustion engine; Source: IHS

17
Towards zero emissions with hybrids and hydrogen fuel cell powertrains Copyrights © 2019 Garrett Motion Inc.
Garrett electric boosting portfolio
ELECTRIC COMPRESSOR
Mild Hybrid
Plug-in Hybrid
• 15% faster 0-100km/h
CUSTOMER • 10 to 15% better fuel economy
BENEFITS
• 20% NOx reduction
• Specific aerodynamics
GARRETT
• High speed electric machines
EXPERIENCE
• System integration
• Aerodynamics and motor
optimized speed-match
ARCHITECTURE
• No lubrication required
for bearings
ELECTRIC TURBO
Mild Hybrid
Plug-in Hybrid
• Faster transient performance for
reduced emissions and energy
recovery for improved fuel
consumption
• System packaging
• High speed electric machines
• Turbine aerodynamics optimized
for efficient exhaust energy recovery
TWOSTAGE ELECTRIC
COMPRESSOR FOR FUEL CELLS
Fuel Cell Electric
• Up to 40% smaller fuel cell system at
constant power: reduced fuel cell stack
volume, weight and cost
• Air bearing
• High speed electric machines
• Two-stage series mixed-flow compressors
• Oil-less foil bearing technology to eliminate
pollution of fuel cell stack and lowest noise,
vibration and harshness (NVH)
18
Copyrights © 2019 Garrett Motion Inc.
Safeguarding connected and autonomous vehicle integrity

HACK

GARRETT
CYBERSECURITY
In vehicle network Intrusion
Detection Prevention System
OEM
REMEDIATION
GARRETT SECURITY
OPERATION CENTER
Root cause analysis
Solutions for remediation

GARRETT IVHM*
On board and off board
Diagnostic and Prognostic tools

SYSTEM DEFECT

*Integrated Vehicle Health Management

19
Piloting proprietary solutions with customers around the globe Copyrights © 2019 Garrett Motion Inc.
Garrett connected vehicle portfolio

CYBERSECURITY OEM SMART DIAGNOSTICS AND

EARLY WARNING SYSTEM
PREDICTIVE MAINTENANCE

• On-board network Intrusion • Smart diagnostic tools ensuring • Aftermarket Predictive

Detection and Prevention OEMs fast and accurate repairs
System (IDPS) that identifies and Maintenance system saving costs
protects the vehicle network for engine repairs and unplanned
• On-board Health Monitoring and downtimes
off-board Predictive Maintenance
CUSTOMER
• Off-board Security Operations that provides early warning before a
OFFERINGS AND • Optimizing maintenance planning
Center (SOC) that reports and problem occurs
BENEFITS analyze attacks on fleet of vehicles and inventory scheduling reducing
• Knowledge-management capture missed customer deliveries due to
• Scalable and agnostic to any that improves the performance of fleet breakdowns
vehicle hardware and infrastructure diagnostic and prognostic tools

20
Copyrights © 2019 Garrett Motion Inc.
AFTERMARKET
Strong aftermarket platform with brand equity

Broad aftermarket product portfolio #1 in global brand awareness

ORIGINAL
• Original supply ensuring 5,300+
EQUIPMENT /
emission compliance Product
INDEPENDENT
AFTERMARKET • Distributors network References

160+ ~100M
Third-Party
• Remanufacturing of OE design Distributors Garrett
Globally Installed Base
REMANUFACTURE • Economic alternative with no
trade-off on quality / durability

• Economic turbo for high growth

regions, with good reliability 5
RED BOOST 83/100 Global
• Alternative to other Turbo Garrett IAM Net Aftermarket
original lines Technical
Promoter Score Support
Centers
~100
New Product
PERFORMANCE • Higher power, with reliability Introduction
& MOTORSPORTS • 50 years of racing support Launches
Planned in 2019

Note: IAM – Independent aftermarket

22
Broad aftermarket portfolio serving a large installed base globally Copyrights © 2019 Garrett Motion Inc.
Garrett aftermarket channels

VEHICLE MANUFACTURERS

Original Turbo

INDEPENDENT AFTERMARKET (IAM)

Complete Range adapted to Vehicle age and Markets

IAM PERFORMANCE & MOTORSPORT

0-3 years 4-6 years 7-10 years 11-15 years 16-20 years
VEHICLE AGE

23
Copyrights © 2019 Garrett Motion Inc.
Garrett Motorsport technology
Redefining the limits Championship Wins
CUSTOMISED TECHNICAL OFFERINGS FORMULA1, LE MANS, WRC….

• Electric turbos: Efficiency-optimized turbos combined

with hi-speed electric machines for max transient
(performance) and energy recuperation (fuel
efficiency).

• DualBoost turbos: 30% faster transient performance

and smaller/lighter packaging with better steady-state
performance.

• High-Temperature VNT™ turbos: Robust 1050°C

VNT turbine for both Diesel and Gasoline engines

Also available:
Ball bearing
High-temperature (MarM-247) turbine wheel materials
High temperature thin-wall (HK30) turbine housing castings

24
Rapid development of hi-tech boosting products Copyrights © 2019 Garrett Motion Inc.
Copyrights © 2019 Garrett Motion Inc.