PHINIA : Q3 Earnings Call 2023 Earnings Presentation

Q3 2023

EARNINGS

November 6, 2023

Forward-Looking Statements

This presentation contains forward-looking statements that are based on management's current outlook, expectations, estimates and projections. Words such as "anticipates," "believes," "continues," "could," "designed," "effect," "estimates," "evaluates," "expects," "forecasts," "goal," "guidance," "initiative," "intends," "may," "outlook," "plans," "potential," "predicts," "project," "pursue," "seek," "should ," "target," "when," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. Further, all statements, other than historical statements, contained in this presentation that we expect or anticipate will or may occur in the future regarding our financial position, business strategy and measures to implement that strategy are forward-looking statements. Accounting estimates, such as those described in our Information Statement furnished with the Company's Registration Statement on Form 10-12B/A filed with the Securities and Exchange Commission ("SEC") on June 9, 2023 and subsequent reports filed with the SEC, are inherently forward-looking. All forward-looking statements are based on assumptions and analyses made by us in light of our experience and our perception of historical trends, current conditions and expected future developments, as well as other factors we believe are appropriate in the circumstances.

You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Forward-looking statements are not guarantees of performance and are subject to risks and uncertainties, many of which are difficult to predict and generally beyond our control, that could cause actual results to differ materially from those expressed, projected or implied in or by the forward-looking statements. These risks and uncertainties include: the ability of PHINIA to succeed as a standalone publicly traded company and its expected financial performance; the possibility that the spin-off will not achieve its intended benefits; the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs; supply disruptions, work stoppages, or similar events impacting us or our customers; commodities availability and pricing; competitive challenges from existing and new competitors; challenges associated with rapidly-changing technologies; the ability to identify targets and consummate acquisitions on acceptable terms; the failure to promptly and effectively integrate acquired businesses; the potential for unknown or inestimable liabilities relating to acquired businesses; our dependence on commercial vehicle, industrial application and light vehicle production, which are highly cyclical and subject to disruptions; our reliance on major OEM customers; fluctuations in interest rates and foreign currency exchange rates; our dependence on information systems; the uncertainty of the global political and economic environment; the outcome of existing or any future legal proceedings; future changes in laws and regulations; and these and other risks more fully described in reports that we file with the SEC. We do not undertake any obligation to update or announce publicly any updates to or revisions to any of the forward-looking statements in this presentation to reflect any change in our expectations or in events, conditions, circumstances, or assumptions underlying the statements.

Non-GAAP Financial Measures

This presentation contains information about PHINIA's financial results that is not presented in accordance with accounting principles generally accepted in the United States ("GAAP"). Such non- GAAP financial measures are reconciled to their most directly comparable GAAP financial measures in the Appendix. The provision of these comparable GAAP financial measures for 2023 is not intended to indicate that PHINIA is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the company at the date of this presentation and the adjustments that management can reasonably predict.

Management believes that these non-GAAP financial measures are useful to management, investors, and banking institutions in their analysis of the Company's business and operating performance. Management also uses this information for operational planning and decision-making purposes.

Non-GAAP financial measures are not and should not be considered a substitute for any GAAP measure. Additionally, because not all companies use identical calculations, the non-GAAP financial measures as presented by PHINIA may not be comparable to similarly titled measures reported by other companies.

A reconciliation of each of projected Adjusted EBITDA and Adjusted EBITDA Margin, which are forward-lookingnon-GAAP financial measures, to the most directly comparable GAAP financial measure, is not provided because the Company is unable to provide such reconciliation without unreasonable effort. The inability to provide each reconciliation is due to the unpredictability of the amounts and timing of events affecting the items we exclude from the non-GAAP measure.

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VISION FOR LONG-TERM VALUE CREATION

Product	Stable Growth	Financially	Total Shareholder
Leadership	Strategy	Disciplined	Returns

Value-based innovation

Reliable, embedded partner for customers

Comprehensive system solutions

Leadership in alternative fuel

Attractive, resilient end market and product expansion opportunities

Leverage core competencies and global presence to profitably drive growth

All-products-to-all-regions strategy to scale aftermarket

Strong, high-quality margins and cash flow generation

Detailed, ROIC-based analysis and review of all new investments

Maintenance of conservative leverage

Investment	Competitive
For Growth	Capital Return
ROIC-focused	Competitive
reinvestment	quarterly dividend -
	$0.25 per share
Disciplined	Opportunistic share
acquisitions	repurchases - $150
	million authorization

Strong Foundation - Balance Sheet

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HYDROGEN PROGRESS

Industry News

U.S. DOE: $7 billion funding to support regional clean hydrogen hubs and accelerate production, deployment and cost reduction of low carbon hydrogen.

Saudi Arabia building a $5 billion hydrogen production plant powered by sun and wind to open in 2025

Production investment plus infrastructure. Netherlands announced 125M€ H2 subsidy program to put hydrogen- powered vehicles on the road and refuel them.

PHINIA Activity

Technical Papers and Industry Engagement

Participation in inaugural opening of Luxembourg H2 refuelling station.

Hydrogen Tech Expo - Tech Paper, Bremen, Germany

America's H2 Summit - CEO Ericson, Panelist. CTO Anderson, Tech Session

Colloquium Sustainable Mobility

- Tech Paper, Aachen, Germany

Real driving emissions data demonstrates effective H2 ICE technology to meet proposed Eu7 regs

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THIRD QUARTER HIGHLIGHTS

Successfully	Adjusted net	Total segment
diluted EPS
completed first
$0.53	adjusted
quarter as
operating
independent
company	per share	margin of
	11.6%

Consolidated

Adjusted

EBITDA of $117

million.

Adjusted

EBITDA margin

of 13.4%

Strong free cash flow of

$118m

Rapid progress on establishing	Continue to win new business in
independent service structures	CV/Industrial, Aftermarket and LV

Quarterly dividend and share repurchase program authorized and initiated; returned $21 million to shareholders

Ended quarter

with cash

of $367 million, net leverage of <1x

Adjusted net diluted EPS, adjusted operating margin, consolidated adjusted EBITDA, adjusted EBITDA margin, free cash flow and net leverage are Non-GAAP metrics. See Appendix pgs. 12-15 for definitions and reconciliations to the most directly comparable GAAP measures.

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THIRD QUARTER 2023 FINANCIAL PERFORMANCE

Adjusted Sales (1) ($mm)

Commentary

Adjusted Operating Income (1) ($mm)

YoY Adjusted Sales Growth

Aftermarket growth primarily driven by foreign currencies due to the strengthening of the British Pound and Euro relative to the US Dollar, partially offset by the weaker Chinese Renminbi relative to the US Dollar

Fuel Systems performance primarily driven by non-contractualcommercial negotiations, contractual commodity pass-througharrangements and favorable foreign currencies; offset by lower volume, mix and net new business primarily from lower commercial vehicle sales in China

YoY Adjusted Operating Income

Aftermarket decrease driven by higher non-commodity inflationary costs

Fuel Systems decrease primarily due to higher inflationary and other supplier costs. Q3 2022 benefited from retro cost recoveries

	Fuel Systems		Aftermarket		Corporate Costs

(1) Non-GAAP metric. See Appendix pgs. 12-15 for definitions and reconciliations to the most directly comparable GAAP measures.

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Q3 2023 ADJUSTED SALES (1)

	Reduction in CV
$mm	sales in China	Strengthening of
partially offset by	GBP and EUR
	growth in North	offset by
	America GDi	weakening CNY
	products

(1) Non-GAAP metric. See Appendix p. 14 for definition and reconciliation to the most directly comparable GAAP measure.

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Q3 2023 ADJUSTED EBITDA (1)

$mm

Reduction in	$18mm of	Primarily
CV sales	recoveries/	increase in
offset by	price, offset by	SG&A expense
growth in GDi	$32mm	including
products	of inflationary	corporate
	costs

Adj.	(1)	(1)
EBITDA
Margin (1)

(1) Non-GAAP metric. See Appendix p. 12 for definition and reconciliation to the most directly comparable GAAP measure.

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REVISED FY 2023 OUTLOOK

Metric	Revised FY23	Previous FY23 Guidance
Guidance
Adj. Sales(1)	$3,400 - $3,450mm	$3,450 - $3,550mm
Adj. EBITDA(1)(2)	$465 - $475mm	$485 - $505mm
Adj. EBITDA	13.6 - 13.9%	13.8 - 14.3%
Margin(1)(2)
Capex	$140 - 160mm	$140 - 160mm
Tax Rate	34%	27%

1. Non-GAAPmetric. See Appendix pgs. 12-15 for definitions and reconciliations to the most directly comparable GAAP measures.
2. Adj. EBITDA includes $60 - $70mm of corporate costs for 2023.

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APPENDIX