WABCO Confidential and ProprietaryWABCO Confidential and Proprietary

Remanufactured Goods in the Commercial Vehicle Industry

How operations drive customer satisfaction

Dr. Salvador Munoz – REMAN Product Line Leader

ReMaTec Circular Economy Seminar

June 15, 2015

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Listed on NYSE with the stock symbol WBC

GLOBAL TECHNOLOGY LEADER

$2.8 Billion

11 000 Employees (1,650 Engineers)

21 Manufacturing Locations

Commercial Vehicle Industry

Sales in 2014

In 34 Countries

On 4 Continents

The leading global supplier of commercial vehicle technologies

About WABCO

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Market Focus

• ASHOK LEYLAND• CNHTC• DAEWOO• DAIMLER• FAW• FIAT• HINO MOTORS• HYUNDAI• KAMAZ• KINGLONG• MAN• PACCAR• SCANIA• TATA MOTORS• VOLVO• YUTONG BUS

• AUDI• BMW• DAIMLER• FORD CAR

• GENERAL MOTORS

• MANDO• MOBIS• PSA• SANGYONG• CHRYSLER

• SUPPORTING FLEETS AND TRUCK OWNERS OVER VEHICLE LIFETIME

• DISTRIBUTORS• WORKSHOPS• FLEETS

• AGCO• BEML• CATERPILLAR• CLAAS• CNH CASE NEW

HOLLAND• JOHN DEERE• LIEBHERR• SANY• TANDANO FAUN• ZOOMLION

• CIMC• FACCINI• GUERRA• GREAT DANE

TONAR• KÖGEL• KRONE

• SCHMITZ CARGOBULLTIRSAN

• WABASH

TRUCK & BUS OFF-HIGHWAY AFTERMARKETCARTRAILER

Products, systems, services and support for vehicle manufacturers and aftermarket customers

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The Technology & Innovation Leader

2009

2000

2004 2007 2008

2001• Anti-Lock Braking System

(ABS)

• Pneumatic TransmissionAutomation System

• Trailer EBS

• Electronic Braking System (EBS)

• ECAS for automotive

• Electronic Stability Control (ESC)

• Hydraulic Transmission Automation System

• OnGuard™ Collision Mitigation System

• OnGuardMAX™ Autonomous Emergency Braking System

• OptiDriveTM Transmission Automation System

• Trailer Telematics

• ESCsmart™ Simulation System

• OnGuardPLUS™ Advanced Emergency Braking System

• New Generation Automated Manual Transmission

• Modular EBS

• OnLane™ Lane Departure Warning System

• EBS for Hybrid Drivelines

• Hydraulic ABS

2010 2012/20132011

Pioneering technologies has defined WABCO for the last several decades

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• Award ‘Heavy Duty Remanufacturer of the Year’ by APRA*

• Award ‘Most popular Remanufacturerin China’ by DUXES

• Certification ISO/TS 16949:2009 acquired Rochester Hills & Stanowice

• Start of production in Jinan, China, JV in Mexico

• Establishment of WABCO Reman Solutions

• Westinghouse Air Brake Company (WABCO) founded in USA by George Westinghouse

1869

• Start of production in Rochester Hills, USA & Stanowice, Poland

2011

2013

2010

2012 2014

WABCO REMAN SOLUTIONS

Fast global expansion

Milestones

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BRAKING SYSTEM MODULATORS

ELECTRONIC UNITS

HYDRAULIC MOTORS

BRAKING SYSTEMS

ACCOMPRESSORS

AIRCOMPRESSORS

Reman ProductsMECHANICS HYDRAULICS ELECTRONICS /

MECHATRONICS

TURBO CHARGERS

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LandfillUser(Re)ManufacturerFoundryExtraction

RemanRecycle

Reman Benefits

Material (kg) CO2 (kg) Energy (MJ) Logistics (tkm)

New

Reman0,43

3,49 17,01

8,03

281

122

45,2 44,1

-88%

-53% -56%

-2%

Source: APRA EuropeExample for a starter

REMAN: The ecological solution of the future

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A REMANUFACTURED PART FULFILLS:• a function which is at least equivalent

compared to the original part. • It is restored from an existing part

(core), using standardized industrial processes in line with specific technical specification remanufactured part is given the same warranty as a new part and it clearly identifies the part as a remanufactured part and the remanufacturer.

What is remanufacturing?

COMMON DEFINITION OF APRA, ACEA, CLEPA, FIRM and VDAA remanufactured part is different from a reused, repaired, refurbished, reworked or reconditioned part

A CORE is a used part which is intendedto become a REMANUFACTURED PART.During reverse logistics it is properlyprotected, handled and identified for remanufacturing to avoid damage and preserve its value.A CORE is not a waste or scrap and willnot be reused before remanufacturing.

A CORE: 

As good as new

WABCO Confidential and Proprietary

Who is my customer ?

Translating the Voice of the Customer9

OES WORKSHOPSDISTRIBUTORS FLEETS

Premium Quality at Affordable Price

Operational efficiency

Parts Replacement

Maintenance solutions

Warranty – same as newPerformance – same as new

30% - 40% lower price vs newDeliver worldwide Low effort core return

Speed of implementation

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Rigorous Remanufacturing Process

DISTRIBUTIONCLEANING

DISASSEMBLY

REASSEMBLY

RESTORING TESTING

CORE MANAGEMENT & SORTING

SIX SIGMA LEAN processes with the added certified security of ISO TS 16949:2009

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DISTRIBUTOR

COLLECTION

POINT

SCRAP

3-6 months

CORE

Core Return – The Concept

WABCO product with surcharge

Container with all kind of cores

Information flow

Goods  flow

Legend:

Validation:‐ Quality‐ Part number‐ Quantity

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34

5

6

Low effort core return

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Core Return in EU

Distributors

Selected cores transport to WRS

Collecting and sorting points

Full coverage in Europe

Low effort core return

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• Fast and easy core management process (cores pick-up within 48 hours)• Two weeks maximum credit time • Full cover collection points across Europe• Reverse logistic process & packaging guidelines in 21 languages

Core management & sorting

WRS takes responsibility for the entire lifecycle of the products.

Low effort core return

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Technical excellence

Our producing process is performed by highly advanced machines

CLEANINGSpecialized cleaning:• blasting, • ultrasonic washing,• high pressure • paint stripping• chemical washing

DISASSEMBLYall parts are completely disassembled with great care to protect and prepare key components for processing.

REASSEMBLYstate of art technicsare used to achieve consistent quality in reassembly. Wearparts are replacedwith qualified new components.

RESTORINGthe wear surface to original specifications even to the micron level:• CNC machining• lapping • re-honing• chromating• electronic -

components replacement

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2

3 4 5

3 4 5

1 6 7

30% ‐ 40% lower price vs new

Salvageability > 75%

30% ‐ 40% lower price vs new

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Testing

• 100% of ECU on board (ICT) and functionally tested

• End of Line (EOL) test same as new

State-of-the-art processes such as ‘on board’ testing.

TEBS-D TESTING AIR COMPRESSOR TESTING

Warranty – same as newPerformance – same as new

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UNITES STATES OF AMERICA

Product availability is key to customer satisfaction.

GERMANY

CHINA

Pluakdang

HannoverNeunkirchenHannoverMannheim

CharlestonRochester Hills

BRAZILCampinasCampinas

FRANCEClaye

JinanQingdaoJinanTaishanQingadao

THAILAND

Higashimatsuyama

JAPAN

WrocławStanowice

POLAND

DubaiUAE

RussiaRUSSIA

MadridSPAIN

HOLLANDMeppel

SWITZERLANDBern

Distribution

Deliver worldwide

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Global

WABCO Reman Solutions is the first and only company licensed to remanufacture air compressors in China; part of our commitment to serve our customers globally.

WABCO Reman Solutions operates through WABCO's globally connected network

Global Headquarters

Joint Ventures

Wabco Reman Solutions

INDIAChennaiMahindra World CityJamshedpurLucknowPantnagar

THAILANDRayong

SOUTH KOREAPyungtaek

CHINAJinan (2plants)QingdaoTaishanShanghai

NETHERLANDSMeppel

GERMANYGronauHanoverManheim

JAPANTokyo

RUSSIAMiass

POLANDWroclawStanowice

FRANCEClaye Souilly

BELGIUMBrussels

UNITED STATES OF AMERICARochester HillsCharlestonTroyHebron

MEXICOSan Luis Potosi

BRAZILCampinas S.P.

Deliver worldwide

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Locations

Strong global footprint

STANOWICE, POLANDSize: 5.000 m2

Quality Certification: TS16949 and ISO14001

ROCHESTER HILLS, USASize: 5.865 m2

Quality Certification:TS16949 and ISO14001

SAN LUIS POTOSI –JV MEXICOSize: 1200 m2

Quality Certification: TS16949 and ISO14001

JINAN, SHANDONG, CHINASize: 5040 m2,Reman 293 m2Quality Certification: TS16949 and SH

Deliver worldwide

WABCO Confidential and Proprietary

Who is my customer ?

Translating the Voice of the Customer20

OES WORKSHOPSDISTRIBUTORS FLEETS

Premium Quality at Affordable Price

Operational efficiency

Parts Replacement

Maintenance solutions

Warranty – same as newPerformance – same as new

30% - 40% lower price vs newDeliver worldwide Low effort core return

Speed of implementation

WABCO Confidential and Proprietary