BORGWARNER INC

BorgWarner Inc. is a global technology leader in clean and efficient propulsion systems for various vehicle types, including combustion, hybrid, and electric vehicles. The company's business strategy, called "Charging Forward," focuses on growing its eProducts portfolio, which includes products for electric vehicles and those with hybrid powertrains, while maximizing the value of its Foundational products portfolio. In 2023, BorgWarner completed the spin-off of its Fuel Systems and Aftermarket segments, making Air Management, Drivetrain & Battery Systems, and ePropulsion its three reportable segments. The company's website is www.borgwarner.com, and its ticker symbol is BWA on the New York Stock Exchange. 1. Business: BorgWarner Inc. is a global technology provider of clean and efficient propulsion systems for various vehicle types, including combustion, hybrid, and electric vehicles. Its products help improve vehicle performance, propulsion efficiency, stability, and air quality. 2. Business Strategy: BorgWarner's business strategy, called "Charging Forward," focuses on growing its eProducts portfolio, which includes products for electric vehicles and those with hybrid powertrains, while maximizing the value of its Foundational products portfolio. 3. Reportable Segments: The company reports its results under three reportable segments: Air Management, Drivetrain & Battery Systems, and ePropulsion. 4. Website: www.borgwarner.com 5. Ticker Symbol: BWA (New York Stock Exchange) Air Management: The Air Management segment develops and manufactures products to improve fuel economy, reduce emissions, and enhance performance. Its technologies include turbochargers, eBoosters, eTurbos, timing systems, emissions systems, thermal systems, gasoline ignition technology, smart remote actuators, powertrain sensors, cabin heaters, battery heaters, battery charging and direct current charging stations. Drivetrain & Battery Systems: The Drivetrain & Battery Systems segment's technologies include battery modules and systems, control modules, friction and mechanical clutch products for automatic transmissions, torque-management products, and rear-wheel drive (RWD) and all-wheel drive (AWD) transfer case systems and coupling systems. ePropulsion: The ePropulsion segment's products and technologies provide industry-leading performance and efficiency with quick-to-market solutions for electric and hybrid vehicles. Its technologies include power electronics, rotating electric machines, and electronic controls. 14 Table of Contents The company's net sales were approximately $14.2 billion in 2023, with approximately 16% generated in the United States and 84% generated outside the United States. The top three customers accounted for approximately 68% of sales. The company conducts advanced propulsion research and development and has approximately 5,700 active domestic and foreign patents and patent applications. The Company competes with various manufacturers and distributors worldwide, and its major competitors include Robert Bosch GmbH, Denso Corporation, Garrett Motion, Hitachi, Ltd., Magna Powertrain, Valeo, Schaeffler Group, and Vitesco Technologies. The company employs approximately 39,900 people worldwide, with 13,000 being salaried and 26,900 being hourly. The company has set goals to advance diversity, equity, and inclusion (DE&I) and support its commitment to creating an inclusive and sustainable workforce.