Affinia Group Inc'

1
Affinia Group Inc.

• Global Manufacturer Distributor
• of On Off-Highway Products

2
Our Mission

• To Become a World Class Global
• Manufacturer and Distributor of
• On and Off-Highway
• Replacement
• Products and Services

3
Affinia Group Overview

• Leading designer, manufacturer and distributor of
  a broad range of filtration, brake and chassis
  products
• 1 in filtration and brake products
• 2 in chassis products in North America
• Reputation for quality and durability
• Extensive aftermarket product offering that fits
  nearly every car, truck, off-highway and
  agricultural make model
• In the automotive aftermarket business for 65
  years
• 96 of net sales derived from the aftermarket
• Long-standing relationships with its largest
  customers, including 42 years with NAPA and 20
  years with CARQUEST

4
Executive Team

• Terry McCormack Chief Executive Officer
  Director
• David Overbeeke President, Affinia Global Brake
  Chassis
• Keith Wilson President, Affinia Global
  Filtration
• Tom Madden Senior Vice President Chief
  Financial Officer
• Jerry McCabe Senior Vice President, Business
  Architecture
• Steve Keller Senior Vice President, General
  Counsel Secretary
• Jim Burdiss Vice President Chief Information
  Officer
• Tim Zorn Vice President, Human Resources
• Rod Ashby-Johnson Commercial Distribution,
  Europe
• Jorge Schertel Commercial Distribution, South
  America

5
Affinia Business Strategy

• Capitalize on favorable aftermarket trends
• Expand product lines to solidify market
  leadership
• Capitalize on expected growth in overall
  aftermarket
• Markets for Affinias primary products expected
  to grow at higher rates than overall aftermarket
• Focus on efficiency and growth
• Restructuring program nearly complete
• Focus on new product technology
• Expand manufacturing capabilities globally
• Continue to provide superior quality on-time
  delivery
• Grow OES/warranty heavy-duty/severe-application
  business lines
• Affinias AC Delco parts already approved by GM
  for warranty service
• Leverage Brake Pro acquisition
• Capitalize on trend of vehicle dealerships
  providing all-makes service

6
Affinia A Global Supplier

• Become a global competitor through investments in
  LLCs and joint ventures with best possible global
  partners
• Stringent criteria for global partners
• Global footprint in manufacturing distribution
• Grow the sale of Affinia products in emerging
  markets
• Be uniquely competitive through innovation,
  commitment to quality, intense focus on the
  Customer
• Worldwide expansion, focused on high quality,
  low-cost
• Common systems for enhanced efficiency

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Ensuring Global Quality

• Superior quality across all product lines
• Best practices, testing, on-road performance
  assessments
• Global partner selection
• Strategic partnerships with best quality /
  price-competitive offering
• Capabilities qualification
• Qualifying global partners through compliance,
  in-depth data collection analysis, supplier
  development interviews
• Management
• Unique designs specifications built into every
  part
• Audit
• Scheduled random product audits and quality
  testing

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Innovation

• State-of-the-art processes
• Leinweber machine in Stanford, Kentucky
• Lean manufacturing cell increases productivity by
  15
• Innovative products
• Bio-Shield 75
• More coming

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Engineered to Affinia Quality Standards
If its in our box, its the best you can buy.
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The Complete Vision Where We Are Going
Beginning State (05)
Present State

• North American focus
• High cost
• Automotive
• Product driven
• LimitedProduct range
• Traditional distribution

• Diversified geography
• Global cost base
• Market driven, customer centric
• People excellence
• Global market leader
• Innovation and RD excellence
• Innovative products, not commodities

11
Restructuring Approach
North American Manufacturing
Globally Sourced
Joint Venture / Greenfield
2005 2006 2007 2008
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Affinia Today A Global Organization
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Reconstruction Highlights (1)

• Joint ventures acquisitions
• MAT Holdings JV Manufacture brake pads shoes
• Acquisition of Haimeng Drums rotors
• New technologies
• New lean manufacturing cell increases production
  by 15
• Investment in global markets
• New brake manufacturing facility in Juarez,
  Mexico
• Ukraine facility to enhance service in Europe
  Russia
• WIX Mexico capitalizing on great filter potential
  in Mexico

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Reconstruction Highlights (2)

• Faster, smarter, leaner
• Sold Beck/Arnley and CUMSA to strengthen core
  focus
• Merge two Chassis locations to streamline efforts
• Streamline costs and increase efficiencies
• Broaden product offering
• Acquire Brake Pro, specialist in severe-duty
  applications
• Simple as 1-2-3 approach with Raybestos
• Increasing Foreign Nameplate application
  offerings
• Understand and exceed customer expectations
• Category Management
• Product innovation (Bio-Shield cabin air filters)

15
Global Expansion Ukraine

• WIX-FILTRON manufacturing distribution
• Production began March 07
• 65,000 square-foot facility in Krasilov, Ukraine
• Enhanced service to customers in Central
  Eastern Europe
• Air oil filters

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Global Expansion Mexico

• WIX Filtration manufacturing distribution
  facility
• Monterrey / Saltillo area
• Production began Autumn 07
• Light-duty air oil filters

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Global Expansion Mexico

• Brake production distribution facility
• Juarez, Mexico

• Full production expected 2nd quarter 2009
• Brake shoes and other brake components

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Global Expansion India

• Joint Venture, partnership with MAT Holdings
• Sonepat, India
• Ground-breaking Dec. 2007
• Production scheduled to begin in late 2008
• Produce brake pads

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Global Expansion Haimeng

• Acquisition of HBM Investment Limited (Haimeng)
  of China
• One of the worlds largest drum rotor
  manufacturing companies
• Leader in aftermarket and OEM brake components in
  Asia and Europe
• Expected completion 3Q 2008

20
Affinia Net Sales by Country
2005 A
2008 T
Mexico
Eastern Europe
Mexico
Eastern Europe
Canada
United States
Canada
United States
48
13
Commercial Dist. Europe
53
12
Commercial Dist. Europe
19
12
South America
South America
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A Changing World

• Global economy in Sea of Change
• Paradigm Shift bringing new realities
• Affinia fortunate to begin Reconstruction in 2005
• The Affinia Plan
• Question and rethink virtually everything
• Apply resources properly
• Ask two questions of Affinia activities
• Does it represent real value?
• Is that value commensurate with the resources it
  consumes?

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The Affinia Family of Brands
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Affinia Portfolio Revenue Share
2.14B in Sales in 2007
34
Filtration
30
Brake
29
7
Commercial Distribution
Chassis
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Sales Breakdown by Category
29
7
34
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net sales(1)
Global Filtration
Distribution and Other(2)
Global Brake
Global Chassis

• Oil, fuel, air, hydraulic and other
• Light, medium and heavy duty vehicle application

• Steering, suspension and driveline
• Light, medium and heavy duty vehicle application

• Drums, rotors, pads shoes, hydraulics
• Light, medium and heavy duty vehicle application

• Leading South American and European distribution
  businesses

(1) As of June 2008 (2) Includes commercial
distribution in South America and Europe and
intercompany eliminations
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Global Filtration Overview

• 1 market position in North America
• Oil, fuel, air and other filters for cars, trucks
  and off-road equipment
• Strong brand awareness, customer loyalty
• Growing presence in Europe, South America and
  Asia
• One of few manufacturers of both heavy-duty and
  light-duty filters
• Heavy-duty filters 62 of filtration net sales
• Light-duty filters 38 of filtration net sales
• Brands WIX, NAPA, CARQUEST, Aquacheck,
  Kralinator and Filtron

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Global Brake Overview

• 1 market position in North America
• Experts in design, engineering and on-time
  delivery
• Engineered specific friction formulations for
  heavy-duty, severe-duty, light- and medium-duty
  applications
• Good / better / best strategy
• Raybestos Advanced Technology, Professional Grade
  and Service Grade
• Extensive offering of premium products drums
  rotors, friction products and hydraulics
• BrakePro heavy-duty friction
• Co-branded offering for Federated and Automotive
  distribution network
• Private label offerings for NAPA, CARQUEST, AC
  Delco and others

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Global Chassis Overview

• 2 market position in North America
• Steering, suspension, driveline and alignment
  products
• First to market, better than OE
• Vertically integrated manufacturer
• Advanced Technology
• Extensive offering under Raybestos Chassis,
  Nakata, McQuay-Norris
• Private label expertise
• Private label for NAPA, AC Delco, and other
  customers

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Commercial Distribution, Europe

• Largest aftermarket manufacturer distributor of
  motor components in the UK
• Strong position as an OE supplier
• Specialize in cooling, steering suspension,
  transmission, auto electrics, brakes
  hydraulics, security, filters and more
• One-stop-shop for regional suppliers
• Nearly 40 product groups, 38,000 part numbers
• Best cataloged range in Europe
• Growing distribution in Eastern Europe
• Brands include QH, Moprod, Commercial Ignition
  (CI), Krooklok, Lipmesa

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Commercial Distribution, South America

• Focused on rapidly growing Brazilian market
• Brazil, 7th largest worldwide vehicle
  manufacturer
• Nakata
• Manufactures 600 products
• Strong presence in Brazil
• Exporting activities to Europe, Asia, Africa
  USA
• 33 growth in production in 2007
• WIX Filters
• Supplying OE manufacturers New Holland and GM
• 14 growth in production in 2007
• Pellegrino
• Leader in distribution
• 9 product groups diesel, clutch, filters,
  bearings, powertrain, engine, electrical parts,
  brakes suspension

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Market-Driven

• market-driven adj Allowing the marketplace
  to direct a firm's product and service innovation
  efforts.
• What is means to be Market-Driven
• First to market
• Ability to discern what is perceived as real
  value by marketplace constituents
• Street-smart pricing
• Product better than OE
• Excellent market intelligence gathering
• Compliant with accepted industry standards
• Appropriate technological enablement

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Customer-Centric

• customer-centric adj Centered about the
  needs and desires of the customer community.
• What is means to be Customer-Centric
• Everyone understands who customers are
• Organization structured to best serve customers
• Most resources focused on customers
• High level of customer communications
• Experts on customer behavior
• Full, rich and accurate customer database
• Close collaboration with channel partners

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Going Above Beyond

• Exceeding customer expectations
• Order fill rates of 95 percent
• Ship the majority of orders within 24-48 hours of
  receipt
• Extensive product coverage
• Broad range for nearly every vehicle on the road
• Parts for newer vehicles
• Hard-to-find parts needed for older vehicles
• Substantial investment in catalog reference
  materials

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Dedicated Sales Team

• Focused on personal customer relationships
• Regional Managers focused on channel partner
  activity
• District Managers focused on professional
  installer base
• Helping to build our customers business
• Collaborative selling
• End-user focused
• Creative marketing techniques
• Promotions geared toward channel partner
  consumer

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Customer Loyalty

• Generating loyalty through value-adds
• Product catalogs
• E-catalogs
• Technical service
• Electronic data interchange
• Point of sale marketing
• Distinguished industry awards
• Prestigious Spirit of NAPA
• Ten times since 1995
• Numerous electronic cataloging awards
• Vendor of the Year (Federated, Alliance, more)
• Front Sullivan Best Practice Awards 2007- WIX
  Filters

Long-standing Customer Relationships
35
Data Management

• Award-winning Data Management team

• Improved data quality
• Released new 'easy to read' brake catalog format
• Developed new 'systems' catalog for NAPA
• Affinia Online catalog

• Released industry standard ACES format
• Established new data exchange workflows with PIMS
  
• Developing new chassis catalog for use in Mexico

36
Proving Quality on the Track

• NASCAR
• WIX Filters No. 1 Filter in NASCAR
• Raybestos Brakes Raybestos Rookie of the Year
• Technical partnership with Joe Gibbs Racing for
  filters, brakes and chassis
• IndyCar
• Raybestos, preferred competition brake friction
• Tried tested proving performance
• Work with race team engineers
• Perfecting product performance

Trusted in open-wheel and closed-wheel racing
circuits
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Defining Real Customer Value

• All Affinia activities represent the best use of
• our resources, defined by Five Values
• Product quality innovation
• Unrelenting focus on servicing our customers
• Technology data
• Keeping channel partners customers competitive
• Channel partner customer growth

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The Purpose Driven Company

• Inspire our People
• Delight our
  Customers
• Impress our Investors

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Why Affinia?

• Best brands in the business
• Commitment to quality
• Extensive offering, full-line supplier
• Partner you can trust
• Leader in data management
• Dynamic business partner
• Dedicated team members
• Experienced management staff
• Dedicated, knowledgeable sales organization

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Affinia Inc.IT Systems Reconstruction
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Business Driven IT Systems Roadmap
2007
2009
2008
Key Business Only ERP Related
Priority Duration Dependency Opportunity
Number
Direct Analytics (11b)
MOQ Balancing (17)
2010
Develop Supplier Metric Scorecard (13)
Sourcing/ Project Mgmt Coordination (172)
Country of Origin (101)
SUPPLY CHAIN PROCUREMENT
Payment Terms (171)
ERP Deployments (2d)
Sales Operations Planning (1)
2009
Backorder Mgmt (9)
Executive Dashboard
ERP Solution Dev. Pilot (2c)
Improved Info to Support SFA (37a)
SUPPLY CHAIN FORECASTING
Scrap Mgmt (10)
ERP Solution Definition (2b)
Define Improve Sales Profitability (32n)
Exec Dashboard Legacy
Improve Accuracy Details of Sales Info (33a)
2008
Change Management (6a)
ERP Requirements Definition (2a)
SALES
Reporting Tools
Budgeting/ Forecasting System (NF1)
Centralized A/P/Payment System (21)
Integrated Financial Reporting System (NF2)
2007
Other Req. definitions for Int. package (NF3)
Define IT strategy (4)
Data Governance (6)
IT
FINANCE
MARKETING
RECONSTRUCTION
42
Business Driven IT Systems Roadmap Consistent
Communications
43
Thank You