SC Reserves DTL Preference shares Advance towards capital Total Equity Secured Unsecured Total Loans Minority Interest

Other Long term Liabilities Total Funds Employed Gross Tangible Block AD Net Block Capital WIP Total Tangible Assets Intangible Assets Intangible Assets under development Non current investments Goodwill on consolidation Other noncurrent assets Total Non Current assets Current Investments Loans and advances (LT and ST) Liquid Assets Inventories Debtors Cash Other current assets Total current assets Current maturities of LT debt Creditors Customer Advances Other current liabilities Provisions (LT and ST) Total current liabilities & Provisions Net current assets Total Assets Total Assets Y-O-Y Growth Adjusted BV (Cr)

2012 9.5 520 11 0 0 540.5 0 0 0 0 0 540.5

2011 9.5 377 8 0 0 394.5 0 0 0 0 0 394.5

230 13 243 0.5 0 2 0 0 245.5 21 56 116 157 82 0 355 1 108 0 2.5 27 138.5 216.5 539 37% 540.5 #DIV/0! -82 #REF! 458

180 10 190 0 0 2 0 0 192 10 42 80 171 13 0 264 0.5 84 0 2 27 113.5 150.5 394.5 41% 394.5

2010 9.5 260 3 0 0 272.5 7 0 7 0 0 279.5 265 85 180 7 187 0 0 2 0 0 189 0 20 46 131 2 0 179 0 86 0 0 22 108 71 280 11% 272.5

2009 9.5 188 4 0 0 201.5 55 5 60 0 0 261.5 263 72 191 4 195 0 0 2 0 0 197 0 11

2008 9.5 158 3 0 0 170.5 20 0 20 0 0 190.5 228 58 170 4 174 0 0 8.5 0 0 182.5 0 15

46 31 70 76 1.3 12 0 0.2 117.3 119.2 0 0 54 98 0 0 0 0 18 27 72 125 45.3 -5.8 253.3 191.7 32% #DIV/0! 201.5 170.5

LT Debt + ST Debt - Cash Sales Capital Employed

-13 #REF! 381.5

5 #REF! 277.5

59 #REF! 260.2

8 #REF! 178.5

2007

2006

2005

2004

0 0 0 0 0

0 0 0 #DIV/0! 0 #DIV/0!

0 0 0 #DIV/0! 0

0 0 0 0

0 0 0 0

0 #REF! 0 #REF!

0 #REF!

0 #REF!

Operating profit before WC % Growth Inventories Debtors Loans and advances Current Liabilities Cash from Operations Taxes Paid Interest paid Net CFO % CFO Growth PAT % PAT Growth Fixed Assets Sale of Fixed assets Transfer of fixed assets from Sundaram Clayton (Net) Increase in receivables against Service concession Agreements Purchase of investments Proceeds from sale of investments Long term Loans Given Sale of MF units Investment in subsidiaries Net Intercorporate deposits given Dividend received Interest received Fixed deposits for period exceeding 3 months Advance against property Net CFI Proceeds from borrowings Repayment of borrowings Dividend Paid including tax Interest and finance charges Proceeds from issuance of share capital Increase in advance towards capital Profit and Loss a/c Net CFF Free cash flow Tax % of CFO Capex/Sales FCF Y-o-Y Growth Debtors/Sales CFO per share Buyback Price

2012 226 11% -36 15 -10 25 219 -64 0 155 216% 151.9 -68 0 0 0 -555 545 0 0 0 0 0 2 0 0 -76 0 0 -11 -0.1 0 0 0 -11 87 -29% #REF! 181% 82.7 #REF!

2011 203 50% -34 -51 -17 12 113 -64 0 49 -6% 127.8 -18 0 0 0 -404 395 0 0 0 0 0 0.6 0 0 -26 0 0 -6 -0.2 0 0 0 -6 31 -57% #REF! -33% -5.7% 25.7 #REF!

2010 135 85% 0.2 -61 -7 32 100 -45 -3 52 1200% 78 -10 4 0 0 0 7 0 0 0 0 0 0 0 0 1.2 0 -25 0 0 0 0 0 -25 46 -45% #REF! -248% -10.0% 27.6 #REF!

2009 2008 2007 2006 2005 73 118 -38% #DIV/0! #DIV/0! #DIV/0! -15 -31 6 -76 4 -15 -45 111 25 108 -14 -33 -7 4 75 0 0 0 -95% #DIV/0! #DIV/0! #DIV/0! #DIV/0! 36 70 0 0 0 -35 0 0 0 -0.3 0 0 0 0 0 0 0 0 0 -35 25 0 -19 0 0 0 0 6 -31 -72 0 -111 0 -9 0 0 0 0 0 0 0.5 0 0 -192 0 0 -11 0 9.5 78 34 111 3 #DIV/0! #REF! #DIV/0! #DIV/0! #DIV/0! #REF! 0 #DIV/0! #REF! #DIV/0! #DIV/0! #DIV/0! #REF! 0 #DIV/0! #REF! #DIV/0! #DIV/0! #REF! 0

2004

0 0

-56% -31% #REF! #REF! -1133% #DIV/0! 1.3% -13.9% 2.1 39.4 #REF! #REF!

#REF! #DIV/0! #DIV/0! #REF!

Revenues from Operations Less: Excise Duty Net Revenues from Domestic Operations Export Net Revenues from Operations Other Income Total % Growth in Revenues Cost of material consumed Purchase of stock in trade Change in inventories of FG, WIP and stock in trade Operating expenses Employee expenses Total expense Operating Profit Depreciation Amortisation of Goodwill EBIT Interest PBT Extraordinary expenditure Tax Tax rate Net Profit before minority interest Minority Interest Share of net profit of associates Accounting Profit for the Year Dividend Basic EPS Diluted EPS No of shares (crores) BV Split adjusted EPS Split adjusted BV BV CAGR Growth

2012 1143 98 1045 0 1045 12 1057 17.7% 580 0 -7 159 94 826 219 16 0 215 0.1 214.9 0 63 29% 151.9 0 0 151.9 11 81 81 1.9 288 81 288 #DIV/0!

2011 978 85 893 0 893 5 898 47.5% 508 0 -13 126 71 692 201 14 0 192 0.2 191.8 0 64 33% 127.8 0 0 127.8 6 67 67 1.9 207 67 207

2010 641 50 591 0 591 18 609 36.5% 330 0 0 90 54 474 117 14 0 121 3 118 0 40 34% 78 0 0 78 0 41.4 41.4 1.9 145 41.4 145

2009 483 57 426 0 426 20 446 -18.3% 246 0 0 75 51 372 54 14 0 60 7 53 0 17 32% 36 0 0 36 19 18.7 18.7 1.9 105 18.7 105

2008 628 94 534 0 534 12 546 #DIV/0! 306 0 0 78 45 429 105 10 0 107 3 104 0 34 33% 70 0 0 70 11 36.8 36.8 1.9 90 37 90

2007

2006

2005

2004

0 0 0 0 #DIV/0! #DIV/0!

0 0 0 #DIV/0!

0 0 0 0 0 CAGR Sales 18.0%

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

#DIV/0! 0

#DIV/0! 0

#DIV/0! 0

#DIV/0! 0

0 CAGR

21.4%

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! CAGR EPS #DIV/0! #DIV/0!

2012 SC Reserves DTL Total Equity Change in Equity Secured Unsecured Total Loans Minority Interest Total Funds Employed Gross Block AD Net Block Capital WIP Total Tangible Assets Intangible Assets Non current investments Goodwill on consolidation Total Non Current assets Current Investments Inventories Debtors Cash Loans and advances Other current assets Total current assets Creditors Customer Advances Other current liabilities Provisions Total current liabilities Net current assets Total Assets

2011

2010

2009

2008

0 0

0 0

0 0

0 0

0 0

2007

2006

2005

0 0

0 0

0 0

2012 Revenues from Operations Less: Excise Duty Net Sales Export Net Revenues from Operations Other Income Total % Growth in Revenues Cost of material consumed Purchase of stock in trade Change in inventories of FG, WIP and stock in trade Employee expenses Other expenses Total expense EBITDA Depreciation Amortisation of Goodwill EBIT Interest PBT Extraordinary expenditure Tax Tax rate Net Profit before minority interest Minority Interest Share of net profit of associates Accounting Profit for the Year EBITDA margin - S/Alone NPM - S/Alone RoCE - S/Alone EBITDA - Consol NPM - Consol RoCE - Consol

2011

2010

0 0 0 #DIV/0! #DIV/0!

0 0 0 #DIV/0!

0 0 0

0 0

0 0

0 0

0 0

0 0

0 0

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 21% 14.5% 51.2%

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 23% 14.3% 58.2%

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 20% 13.2% 43.9%

2009

2008

2007

2006

2005

2004

0 0 0 #DIV/0! #DIV/0!

0 0 0 #DIV/0!

0 0 0 #DIV/0!

0 0 0 #DIV/0!

0 0 0

0 0 0 CAGR Sales #DIV/0!

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 13% 8.5% 24.2%

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! 20% 13.1% 116.5%

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! 0 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! 0

0 CAGR #DIV/0! #DIV/0! #DIV/0! 0% 0.0% 0.0%

#DIV/0!

SC Reserves DTL Total Equity Change in Equity Secured Unsecured Total Loans Minority Interest Total Funds Employed Gross Block AD Net Block Capital WIP Total Tangible Assets Intangible Assets Non current investments Goodwill on consolidation Total Non Current assets Current Investments Inventories Debtors Cash Loans and advances Other current assets Total current assets Creditors Customer Advances Other current liabilities Provisions Total current liabilities Net current assets Total Assets

2012 9.5 520 11 540.5 0 0 0 0 540.5 0 0 230 13 243 0.5 2 0 245.5 21 116 157 82 #REF! 0 355 1 0 2.5 27 138.5 216.5 539

2011 9.5 377 8 394.5 0 0 0 0 394.5 0 0 180 10 190 0 2 0 192 10 80 171 13 #REF! 0 264 84 0 2 27 113.5 150.5 394.5

2010 9.5 260 3 272.5 7 0 7 0 279.5 265 85 180 7 187 0 2 0 189 0 46 131 2 #REF! 0 179 86 0 0 22 108 71 280

2009 9.5 188 4 201.5 55 5 60 0 261.5 263 72 191 4 195 0 2 0 197 0 46 70 1.3 #REF! 0 117.3 54 0 0 18 72 45.3 253.3

2008 9.5 158 3 170.5 20 0 20 0 190.5 228 58 170 4 174 0 8.5 0 182.5 0 31 76 12 #REF! 0.2 119.2 98 0 0 27 125 -5.8 191.7

2007 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #REF! 0 0 0 0 0 0 0 0 0

2006 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #REF! 0 0 0 0 0 0 0 0 0

2005 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 #REF! 0 0 0 0 0 0 0 0 0

2004

Revenues from Operations Less: Excise Duty Net Sales Export Net Revenues from Operations Other Income Total % Growth in Revenues Cost of material consumed Purchase of stock in trade Change in inventories of FG, WIP and stock in trade Employee expenses Other expenses Total expense EBITDA Depreciation Amortisation of Goodwill EBIT Interest PBT Extraordinary expenditure Tax Tax rate Net Profit before minority interest Minority Interest Share of net profit of associates Accounting Profit for the Year Employee cost % of sales

2012 1143 98 1045 0 1045 12 1057 18% 580 0 -7 94 #REF! 826 219 16 0 215 0.1 214.9 0 63 151.9 0 0 151.9 9%

2011 978 85 893 0 893 5 898 47% 508 0 -13 71 #REF! 692 201 14 0 192 0.2 191.8 0 64 127.8 0 0 127.8 8%

2010 641 50 591 0 591 18 609 37% 330 0 0 54 #REF! 474 117 14 0 121 3 118 0 40 78 0 0 78 9%

2009 483 57 426 0 426 20 446 -18% 246 0 0 51 #REF! 372 54 14 0 60 7 53 0 17 36 0 0 36 11%

2008 2007 2006 2005 628 0 0 0 94 0 0 0 534 0 0 0 0 0 0 0 534 0 0 0 12 0 0 0 546 0 0 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! 306 0 0 0 0 0 0 0 0 0 0 0 45 0 0 0 #REF! #REF! #REF! #REF! 429 0 0 0 105 0 0 0 10 0 0 0 0 0 0 0 107 0 0 0 3 0 0 0 104 0 0 0 0 0 0 0 34 0 0 0 70 0 0 70 8% #DIV/0! 0 0 0 0 #DIV/0! 0 0 0 0 #DIV/0! 0 0 0 0

Number of M&HCV vehicles sold CV Growth Y-o-Y Sales Growth of Wabco Planned Capex for next year (Crores) Exports (Crores) Total Sales (Crores) Exports % of Sales After market % of sales After market sales (Crores)

2012 383277 11% 17.70% 70 148 1046 14%

2011 345818 33% 47% 60 118 892 13% 16% 143

2010 25071 31% 37% 35 55 590 9% 19% 112

2009 191286 -34% -19% 10 35 426 8%

2008 291114

2007

2006

2005

28 546 5%

2012 Profitability Operating margin (EBITDA/Sales) ROE ROCE Sales Growth EPS Growth Dividend Payout PAT margin Simplified RoCE (PBT/Capital Employed after Intangible Assets, Goodwill and Cash) Operating efficiency Raw material % of sales Employee efficiency Capital Intensity % WC of Total Assets % Fixed assets of Total Assets % Investment of Total Assets Operating expense % of sales Sales/NWC WC % of Sales CFO % of Sales Receivables/Sales Debtors % of Total Assets Payables % of WC Inventory % of WC Ex-cash WC Liquidity ratios Current ratio Quick ratio Interest coverage ratio CFO coverage Operating cycle Days inventory Days receivables Days Payables Operating cycle Earnings retention test Retained earnings (crores) Gain in MV (5 years) Leverage D/E 21.0% 32.5% 51.2% 17% 21% 7% 14.5% 51.2%

2011 22.5% 38.3% 58.2% 51% 62% 5% 14.3% 58.2%

2010 19.8% 32.9% 43.9% 39% 121% 0% 13.2% 43.9%

2009

2008

12.7% 19.7% 19.4% 82.1% 24.2% 116.5% -20% #DIV/0! -49% #DIV/0! 53% 16% 8.5% 13.1% 24.2% 116.5%

54.8% 9% 4.5 40% 45% 4% #REF! #REF! 21% #REF! #REF! 29% #REF! 9% 214.5

55.4% 8% 5.0 38% 48% 3% #REF! #REF! 17% #REF! #REF! 43% #REF! 20% 137.5

55.8% 9% 3.3 25% 67% 0% #REF! #REF! 12% #REF! #REF! 47% #REF! 16% 69

57.7% 12% 2.2 18% 77% 0% #REF! #REF! 11% #REF! #REF! 28% #REF! 18% 44

57.3% 8% 3.1 -3% 91% 0% #REF! #REF! -1% #REF! #REF! 40% #REF! 16% -17.8

2.6 1.7 2150.0

2.3 1.6 960.0 #REF!

1.7 1.2 40.3 #REF!

1.6 1.0 8.6 #REF!

1.0 0.7 35.7 #REF!

62 57 61 59

46 62 63 45

51 62 77 36

57 63 113 7

37 52 117 -28

141 2439

122

78

17

59

0.00

0.00

0.03

0.30

0.12

Net Debt/Equity Interest rate CAGR Sales EPS BV

-0.15 -0.03 #DIV/0! #DIV/0!

0.02 0%

0.29 0%

0.05 0%

#DIV/0! 21.8% #DIV/0!

2007 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2006 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2005 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

BSE High Price Low Price High P/E Low P/E High P/BV Low P/BV

2012-2013

2011-2012 2010-2011 2009-2010 1588 1316 795 971 686 127 23.7 14.5 7.7 4.7 31.8 16.6 9.1 4.7 42.5 6.8 7.6 1.2

0.0 0.0 0.0 0.0

High MV Low MV #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #REF! #REF! #DIV/0! #REF! #DIV/0! #DIV/0! #REF! #DIV/0! 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #REF! #REF! #DIV/0! #REF! #DIV/0! #DIV/0! #REF! #DIV/0! 0 #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #REF! #REF! #DIV/0! #REF! #DIV/0! #DIV/0! #REF! #DIV/0! 0 Consol EPS Consol BV Current P/E Current P/BV Price EPS BV Mcap

2978 1821 81 288 19.1 5.4 1544 81 288 2895

2510 1309 67 207

1498 239 41.4 145

#DIV/0! #DIV/0! #DIV/0! #REF!

#DIV/0! #DIV/0! #DIV/0! #REF!

#DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #VALUE!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

2008-2009 2007-2008 374 100 10.2 2.7 4.2 1.1 #DIV/0! #DIV/0! #DIV/0! #DIV/0!

2006-2007

2005-2006

2004-2005

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

720 193 18.7 105

0 0 36.8 90

#DIV/0! #DIV/0! 0 #DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

Operating expense Stores, spares and tools consumed Power and Fuel Sub-contract expenses Repairs Building Machinery Other Rent Lease Rent Rates and taxes Printing and stationary Postage,telegrams and telephones Travelling Insurance Consultancy Legal Auditors Loss on sale of assets Advertisement&Publicity Research&Development Freight and cartage inward Freight and cartage outward Commission&Discount Royalty Payment Provision for dimunition investments Provision for Doubtful debts Loss on exchange fluctuation Sundry Total Operating expense Freight % of sales Subcontract % of sales Power % of sales Stores % of sales

2011

Dec-10

Dec-09

2008

2007

0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0%

0.0% 0.0% 0.0% 0.0%

Total Revenues

2006

2005

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0!

2012 Cost of materials consumed

2011

2010

2009

2008

2007

Purchase of stock in trade

Change In inventory Opening stock: WIP Finished Goods Stock in trade Closing stock: WIP Finished Goods Stock in trade Add: Share in JV Change in inventory Inventories Raw materials WIP Finished Goods Stock in trade Stores and spares Add: Share in JV Total

2006

2005

2004

2003

2012 Tangible Assets Land Buildings Vehicles Data processing equipments Office premises Office equipments Leasehold improvements Furniture and fixtures Electrical Installations Plant and Machinery Advertisement structure Leased Plant and Machinery Leased Vehicles Leased furnitures and fixtures Leased building and structures Leased Land Total tangible assets Software/Licenses Commercial right acquired Trademark and licenses Others - R&D expenses Total Intangible assets Total Gross Block

2011

2010

2009

2008

2007

No Characteristic Value chain 1 Commodity Products 2 Long history of operation 3 Products 4 Demand for products 5 Value addition to the customers

6 Competitive positioning 7 Management strength 8 Strong balance sheet

9 Are the fixed assets difficult to rebuild 10 Are capex plans ready and predictable for next 5 years 10 11 12 13 14 15 Does the company have a diversified business within the industry New Launches Cyclical business High returns on equity (>25%) High Net fixed asset turnover High Operating margins (>20%)

16 17 18 19 20 21 23 24

What can lead to operating margin expansion Is the company able to utilize Capacity completely Does the company have a healthy dividend payout Do you see significant Difference between CFO and PAT Has the company generated Stable Free Cash flow in the past Earnings retention test Growth capex requirement Does the company have to loosen credit to customers to increase sales Is the company able to quickly generate cash

25 Working capital requirement 26 Employee base 27 Does the company have a strong distribution network 28 Does the company have R&D strength 29 Does the company have International Presence through JV/subsidiary 30 High potential growth areas 31 Patents and Intellectual Property

32 Are the raw material prices susceptible to wide swings 33 Does the company have a good marketing network

34 Does the company have interesting markets to explore 35 Does the company have the lowest cost advantage 36 Does the company have favorable export markets

38 What could be the likely Barriers to entry 39 Is it possible that changes in technology can destroy the company Does the company face any threat from substitutes

40 What could be the industries competitive vulnerabilities

41 What could be the companies competitive vulnerabilities

41 Who are the primary competitors of the company

42 Does the company enjoy pricing power 43 Is it easy to scale up the business 44 Does the company have subsidiaries and are they well integrated

45 What 3 or 4 things can destroy this business 46 How much is the promoter holding 47 Can a chinese company dominate Indian market

Opinion No Yes Low competition, oligopolistic market Depends on growth in M&HCV market Yes 85% market share in OEM market and 75% market share in after sales market Yes

RoCE

Yes No No Expansion of product portfolio Yes Yes Yes Yes

X X X

Possible No information No No Yes MV added/RE = 5.8 times Plants and equipment No Yes Low ~9% of operating sales Yes Yes No Yes Yes

X X

Yes Yes

Yes No information Yes

No No information -

Slowdown in overall M&HCV segment Dependent on key customers like Ashok Leyland, Tata Motors

Knorr Bremse, Haldex, Bosch

Yes Yes Softwares services

Destroy is difficult but deterioration is possible 75% Difficult and lower probability

Rational Electronics technology products Tier 1 - supplier to OEM's Innovation requirement Fundamental drivers are trucks and buses which are getting more sophisticated with electronic components Major products include Air actuation systems (air compressors, actuation systems, control valves), air braking systems (6% of sales) Products meant to increase Vehicle safety, also present in after-sales market Monopoly positioning in automotive electronics. Strategy to outperform the market by providing outstanding soultions in vehicle safety and efficiency through breakthrough technologies and innovative products Mr Kaniappan is an ex Bosch employee High cash, No debt, CAGR Asset growth of 33% in 4 years Intangible assets which comes from innovation strength. Cannot comment on the plants and equipments in it's 3 manufacturing facilities. World class manufacturing facilities No information Only automotive electronic component supplier to OEM's From brake systems to vehicle control systems Based on medium and heavy commercial vehicle growth Greater than 30% and cash buffer give RoCE in excess of 50% Highest it has gone to is 5 times ~ 21-22% Increase share of after sales revenues (Probability is low due to less truck utilization in current periods), increased exports (highly probable), improvement in raw material margins But improvement in fixed asset turnover Less than 10% Less chances of significant cash outflow in the future due to accruals 136 crores in 5 years From 2008 to 2012, Retained earnings of 417 crores and change in market value over the same period is 2439 crores Discretionary capital spending 55-60 days of receivables Generation of free cash flow of Non cash WC/Sales ratio stable, extended cash conversion cycle. This means RoCE has a higher chance of remaining stable then getting better 1161 employees 156 authorized service centres, Strong aftermarket network of more than 7000 outlets Intellectual property owned by Wabco Inc parent Wabco parent has operations all around the world Air braking system(favorable government rules to ensure road safety,high margin yield), Automated manual transmission control system, lift axle control valve Strong reputation for technological innovation

Aluminium, steel, rubber, zinc, copper, plastics Sales organization based near customers Export market expected to increase 8 fold to 1000 crores by 2015, after sales market, Possibility of increase in business from foreign OEM's like JCB, Daimler, Volvo Europe, Latin America, China Ability to increase sales faster than M&HCV growth due to increasing content per vehicle, technology barriers, strong distribution network, quality manufacturing facilities, Globalization, employee strength, after sales market, bargaining power with OEM's Wabco is driving the technology changes But over the long term, there is a high chance that CV industry will grow as compared to degrow and Wabco has the capability to ride the growth Customer concentration, raw material risk, transfer pricing risk, possibility of increase in royalty payments

Pricing power is obtained from status as market leader, Tier-I suppliers, exposure to replacement market (16% of revenues) and exports (13% of revenues). Strong technology from parent helps to widen the product offering per client. All of this adds to the companys bargaining power with customers. OEM's have to face a duopoly market giving a higher pricing power Technology available, so just the requirement of fixed asset capex To Wabco Germany Loss of key customers, decrease in fixed asset turnover, higher investment in working capital, increasing royalty expense, slowdown in CV growth, forex volatility, If the global demand for WABCO reduces Held by parent WABCO Inc Wabco Inc is preferred supplier for many Chinese OEM's

Minimum valuation Total Assets WC CFO before WC Debtors Payables Inventory Change in Debtors Change in Payables Change in inventory CFO before tax Taxed Paid After tax CFO Sales Sales Growth rate Capex Free cashflow FCF Y-o-Y (%) Discount factor CFO Growth rate Discount rate

2012

2013

2014

2015

2016

0 0 0 0

0 0 0 0

0 0 0 0

0 0 0 0

0% 0 0 1.12 20% 12%

-5% 0 0 #DIV/0! 1.25

10% 0 0 #DIV/0! 1.40

-5% 0 0 #DIV/0! 1.57

2017

2018

0 0 0 0

0 0 0 0

10% 10% 0 0 0 0 #DIV/0! #DIV/0! 1.76 1.97