Investor Presentation

1
Its not all that bad. A look at the flip side
of the coin
Automotive News World Congress January 17, 2006
2
Company Overview Focused on Powertrain Systems

• 2005E Sales
• Employees
• Operations
• Growth Drivers
• 1987 LBO

4.3 Billion 17,500 61 Locations 17
Countries Fuel Economy Performance Air
Quality Vehicle Stability Restructured/Refinanced
and went public again in 1993
3
Sustainable Long Term GrowthBorgWarner Sales
CAGR vs. Auto IndustryProduction CAGR
BorgWarner 13.1
Global Production 3.3
North American Production 1.3
4
Technology Focus

Technologies rated individually relative to
benefits Relative to passive AWD
5
Customer and Geographic Diversity
2006 Projected Revenue by Region
Detroit Big 3 approximately 22 of total 2006
projected revenue
2006 Projected Revenue by Customer
Honda 3
Hyundai/Kia 6
BMW 2
Renault/Nissan 7
PSA 2
Toyota 7
VW/Audi 12
International 2
Caterpillar 2
ZF 1
GM 8
John Deere 1
DCX 12
All Others 21
Ford 14
Includes Beru and NSK Warner
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Demonstrable Future Growth New Business 2006 thru
2008
Americas 30
Europe 55
Asia 15

• International
• Turbochargers
• GM
• Transfer cases
• Variable cam timing
• Transmission components
• DaimlerChrysler
• Transmission modules and components
• AWD systems
• Engine timing
• John Deere
• Turbochargers
• Toyota
• Engine components
• Transmission components

• Hyundai
• Transfer cases
• Turbochargers
• Transmission components
• Chinese OEMs
• Turbochargers
• Engine timing
• Transfer cases
• Japanese OEMs
• Engine timing
• Turbochargers

• VW/Audi
• Turbochargers
• DualTronicTM
• Transfer cases
• GM, Ford, PSA, Renault/Nissan
• Turbochargers
• Synchronizers
• BMW
• Turbochargers
• European OEMs
• DualTronicTM

1.6 Billion of New Business Expected value based
on Fall 2005 forecasts includes Beru
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Maintaining Profitability Predictability of
Earnings
Operating Margins
Excludes charge related to the anticipated cost
of settling all Crystal Springs-related alleged
environmental contamination personal injury and
property damage claims, income associated with
divestitures and the immediate write-off of the
excess purchase price associated with Berus
in-process RD. Including these items, operating
margin in the first nine months of 2005 was 7.2
8
Generating Investment Returns Financial
Discipline
Return on Invested Capital
Rolling four quarters
9
Financial Strength Investment Grade Balance
Sheet Pre- and Post- Q1 2005 Beru Acquisition
in Millions
10
Auto Sector Returns Good Place to Invest?
Total returns assuming dividends are re-invested
during the period shown
11
BorgWarner Difference

• Superior, Sustainable Sales Growth Through
  Technology Leadership
• Customer and Geographic Diversity
• Maintaining Profitability/ Predictability of
  Earnings
• Generating Investment Returns/ Financial
  Discipline

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Forward-Looking Statements

• Statements contained in this presentation may
  contain forward-looking statements as
  contemplated by the 1995 Private Securities
  Litigation Reform Act that are based on
  management's current expectations, estimates and
  projections. Words such as "expects,"
  "anticipates," "intends," "plans," "believes,"
  "estimates," variations of such words and similar
  expressions are intended to identify such
  forward-looking statements. Forward-looking
  statements are subject to risks and
  uncertainties, many of which are difficult to
  predict and generally beyond the control of the
  Company, that could cause actual results to
  differ materially from those expressed, projected
  or implied in or by the forward-looking
  statements. Such risks and uncertainties
  include fluctuations in domestic or foreign
  automotive production, the continued use of
  outside suppliers by original equipment
  manufacturers, fluctuations in demand for
  vehicles containing the Company's products,
  general economic conditions, as well as other
  risks detailed in the Company's filings with the
  Securities and Exchange Commission, including the
  Cautionary Statements filed as Exhibit 99.1 to
  the Form 10-K for the fiscal year ended December
  31, 2004. The Company does not undertake any
  obligation to update any forward-looking
  statement.