WABCO Reports Q1 2013 Results; Delivers Solid Performance in Continued Challenging Market; Upgrades Guidance for 2013

WABCO Reports Q1 2013 Results; Delivers Solid Performance in Continued 
Challenging Market; Upgrades Guidance for 2013 
BRUSSELS, BELGIUM -- (Marketwired) -- 04/25/13 --  


 
--  Q1 2013 sales of $644.7 million, down 0.7 percent in local currencies
    and down 1.9 percent in U.S. dollars from a year ago 
    
--  Q1 2013 operating margin of 13.6 percent on a performance basis, down
    from 13.9 percent a year ago; operating margin of 12.7 percent on a U.S.
    GAAP basis, down from 13.6 percent a year ago 
    
--  Q1 2013 diluted EPS of $1.17 on a performance basis, flat versus a year
    ago; diluted EPS of $1.15 on a U.S. GAAP basis, down from $1.34 a year
    ago 
    
--  In Q1 2013, WABCO generated $64.0 million in net cash from operating
    activities and $49.4 million of free cash flow, excluding payments of
    $5.8 million for streamlining and separation activities 
    
--  Upgrades guidance for full year 2013; sales growth to now range between
    3 and 7 percent in local currencies, up from previous guidance to range
    between 2 and 7 percent; diluted EPS on a performance basis to now range
    from $4.45 to $4.85, up from previous guidance to range from $4.30 to
    $4.80; and diluted EPS on a U.S. GAAP basis to now range from $7.41 to
    $7.81, up from previous guidance to range from $7.26 to $7.76 

 
WABCO Holdings Inc. (NYSE:WBC), (www.wabco-auto.com) a global
technology leader and tier-one supplier to the commercial vehicle
industry, today reported Q1 2013 sales of $644.7 million, down 0.7
percent in local currencies from a year ago and down 1.9 percent in
U.S. dollars, reflecting a continued challenging market.  
"WABCO opens 2013 with a solid first quarter performance. Against the
backdrop of a further 10 percent decline in global commercial vehicle
production, WABCO's revenues dipped by only 0.7 percent, helped by a
new quarterly record of $171 million in aftermarket revenues. This
result reflects WABCO's ongoing ability to outperform its markets,"
said Jacques Esculier, WABCO Chairman and Chief Executive Officer. 
"Furthermore, WABCO's Operating System, one of our industry's most
advanced management environments, continues to power excellence in
execution across our organization, delivering new quarterly records
for productivity and gross profit margin," said Esculier. 
WABCO reported Q1 2013 performance operating income of $87.6 million
versus $91.3 million a year ago, and operating income was $81.7
million on a U.S. GAAP basis versus $89.5 million a year ago.  
WABCO's performance operating margin for Q1 2013 was 13.6 percent,
down from 13.9 percent a year ago, and operating margin was 12.7
percent on a U.S. GAAP basis, down from 13.6 percent a year ago. 
For Q1 2013, WABCO reported performance net income attributable to
the company of $74.9 million or $1.17 per diluted share versus $77.4
million or $1.17 per diluted share a year ago, and Q1 2013 U.S. GAAP
net income attributable to the company of $73.7 million or $1.15 per
diluted share versus $89.2 million or $1.34 per diluted share a year
ago.  
During Q1 2013, WABCO generated $64.0 million in net cash from
operating activities, resulting in free cash flow of $49.4 million,
excluding payments of $5.8 million for streamlining and separation
activities. This resulted in a conversion rate of 66 percent of
performance net income attributable to the company which was
seasonally affected by tax and incentive compensation payments. 
"WABCO generated a total of $18.8 million of productivity, based on
savings of 5.0 percent of gross material costs and 5.9 percent of
conversion costs for the quarter," said Esculier. "This all-time
quarterly record further demonstrates WABCO's ability to optimize
resources and flex capacity to address changes in market demand." 
Since June 2011, WABCO has repurchased 7,797,096 shares for $431.4
million in open market transactions as of March 31, 2013. WABCO is
authorized to repurchase up to $368.6 million of additional shares
through December 31, 2014. 
"WABCO's continued outperformance of the global market, in
combination with new record achievements in productivity for the
quarter, marks Q1 2013 as another successful milestone on our path to
deliver outstanding value for our shareowners," said Esculier.  
Recent Highlights  
On April 17, 2013, WABCO announced that from Q2 2012 to Q1 2013 the
company has entered into contracts with customers globally totaling
$548 million of expected cumulative incremental business from 2013
through 2017. These contracts represent new incremental business for
the five-year period, separate from replacement and renewal of
existing contracts. It comprises orders for WABCO technologies and
products that improve vehicle safety and efficiency, mostly in
braking systems, air management and vehicle dynamics systems on
commercial vehicles.  
WABCO also announced in April 2013 that it has been granted a
prestigious Daimler Supplier Award in recognition of WABCO's
outstanding performance during 2012. WABCO won its 2012 Daimler
Supplier Award in the electronics category for outstanding
performance in terms of technology innovation, quality, cost and
supply.  
WABCO reported in April 2013 that it has been honored by Hino Motors,
Japan's largest manufacturer of medium- and heavy-duty trucks, with a
Global Contribution Award that recognizes WABCO's excellent
performance during 2012. Hino is majority owned by Toyota Motor
Corporation, the world's largest vehicle manufacturer. WABCO has been
supplying Hino with breakthrough vehicle control and efficiency
technologies for over 20 years.  
In Q1 2013, WABCO featured its breakthrough electronically controlled
air suspension (ECAS) technology at the 2013 Mid-America Trucking
Show in Louisville, Kentucky. Through its "intelligent load transfer"
functionality, WABCO's ECAS is an enabler technology that supports
the transition from a dual drive axle to a single axle configuration.
Single axle configuration with ECAS functionality offers fleet
operators the benefits of improved traction performance on low
friction surfaces; reduced weight and acquisition costs, as well as
increased fuel economy.  
In Q1 2013, WABCO showcased its breakthrough hydraulic anti-lock
braking system (ABS) with integrated ESCsmart(TM) electronic
stability control (ESC) at the 2013 Mid-America Trucking Show in
Louisville, Kentucky. It marks the first time within the commercial
vehicle industry that these two vehicle safety technologies - ABS and
ESC - have been integrated for hydraulic brake applications on
medium-duty trucks and buses. In North America, initial government
mandates for ESC are anticipated to come into force from early 2016.  
Also in Q1 2013, WABCO announced that its breakthrough MAXXUS(TM) air
disc brake is now available for Freightliner Cascadia(R),
Coronado(R), Columbia(R), Business Class(R) M2 and SD models, as well
as Western Star(R) 4700, 4800, and 4900 platforms. As previously
disclosed, WABCO entered into a long-term supply agreement with
Daimler Trucks North America (DTNA) in June 2012. WABCO's MAXXUS
represents the lightest and highest performing heavy-duty
single-piston air disc brake for North America's commercial vehicle
industry.  
WABCO announced in Q1 2013 that it is now supplying its breakthrough
c-comp(TM) compressor with integrated clutch to two leading global
manufacturers of commercial vehicles. WABCO's c-comp features the
industry's most compact compressor design available, combining
high-performance and best-in-class-efficiency. This breakthrough
technology from WABCO also supports engines that meet upcoming EURO
VI emission standards, contributing to improved environmental
sustainability. 
Also in Q1 2013, the Meritor WABCO joint venture in North America has
introduced WABCO's next generation OnGuard(TM) collision mitigation
system. The new system is already being installed by four major
original equipment manufacturers. This latest generation brings
additional functionality and benefits to WABCO's breakthrough
technology, OnGuard - the most widely adopted collision mitigation
system for commercial vehicles. 
Upgrades Full Year 2013 Guidance  
Based on our current estimates of future market conditions, WABCO
upgrades its guidance for 2013 to indicate sales growth to now range
between 3 and 7 percent in local currencies, up from its previous
guidance to range between 2 and 7 percent; performance operating
margin to now range from 12.7 to 13.3 percent, up from its previous
guidance to range from 12.3 to 13.3 percent; and operating margin on
a U.S. GAAP basis to now range from 12.1 to 12.7 percent, up from its
previous guidance to range from 11.7 to 12.7 percent. 
WABCO's upgraded 2013 guidance results in diluted earnings per share
on a performance basis to now range from $4.45 to $4.85, up from its
previous guidance to range from $4.30 to $4.80; and diluted earnings
per share are estimated to now range from $7.41 to $7.81 on a U.S.
GAAP basis, up from its previous guidance to range from $7.26 to
$7.76. 
As previously disclosed, WABCO expects in 2013 to convert between 80
and 90 percent of its net income attributable to the company into
free cash flow, excluding payments associated with streamlining and
separation activities. 
Conference Call 
WABCO Chairman and Chief Executive Officer Jacques Esculier and Chief
Financial Officer Ulrich Michel will discuss WABCO's results and
outlook on a conference call at 9 a.m. Eastern Time today. It will be
webcast at www.wabco-auto.com where the press release and financial
information will be available under "WABCO Q1 2013 Results."  
The call is also accessible by telephone in listen only mode. Dial-in
number is +1 408 940 3818 and U.S. toll-free dial-in number is 877
844 0834. 
A replay of the call will be available from 12:00 Noon Eastern Time
on April 25 until midnight May 1, 2013. Replay dial-in number is +1
404 537 3406 and U.S. toll-free dial-in number is 855 859 2056.
Conference ID is 28864530. 
About WABCO 
WABCO (NYSE:WBC) is a leading global supplier of technologies and
control systems for the safety and efficiency of commercial vehicles.
Founded over 140 years ago, WABCO continues to pioneer breakthrough
electronic, mechanical and mechatronic technologies for braking,
stability and transmission automation systems supplied to the world's
leading commercial truck, bus and trailer manufacturers. With sales
of $2.5 billion in 2012, WABCO is headquartered in Brussels, Belgium.
For more information, visit www.wabco-auto.com. 
Forward-Looking Statements 
This document contains certain "forward-looking statements" as
defined by the Private Securities Litigation Reform Act of 1995 that
are based on management's good faith expectations and beliefs
concerning future developments. Statements preceded by, followed by
or that otherwise include the words "believes," "expects,"
"anticipates," "strategies," "prospects," "intends," "projects,"
"estimates," "plans," "may increase," "may fluctuate," and similar
expressions or future or conditional verbs such as "will," "should,"
"would," "may" and "could" are generally forward looking in nature
and not historical facts. Actual results may differ materially from
these expectations as a result of many factors. These factors
include, but are not limited to, the actual level of commercial
vehicle production in our end markets, adverse developments in the
business of our key customers, pricing changes to our supplies or
products, and the other risks and uncertainties described in the
"Risk Factors" section and the "Information Concerning Forward
Looking Statements" section of WABCO's Form 10-K, as well as in the
"Management's Discussion and Analysis of Financial Condition and
Results of Operations - Information Concerning Forward-Looking
Statements" section of WABCO's Form 10-Q Quarterly Reports. WABCO
does not undertake any obligation to update such forward-looking
statements. All market and industry data are based on company
estimates. 
Non-GAAP Financial Measures 
To facilitate the understanding of Q1 2013 results, several tables
follow this news release. Sales excluding the effects of foreign
exchange, incremental gross and operating margin and EBIT are
non-GAAP financial measures. Additionally, operating income, EBIT,
net income attributable to the company and net income attributable to
the company per diluted share on a "performance basis" are non-GAAP
financial measures that exclude separation and streamlining items,
and discrete and other one-time tax items, as applicable. Free cash
flow presents our net cash provided by operating activities less net
cash used for purchases of property, plant, equipment, and computer
software. These measures should be considered in addition to, not as
a substitute for, GAAP measures. Management believes that presenting
these non-GAAP measures is useful to shareholders because it enhances
their understanding of how management assesses the operating
performance of the company's business. Certain non-GAAP measures may
be used, in part, to determine incentive compensation for current
employees. 
Attachment  


 
--  Condensed Consolidated Statements of Income 
--  Condensed Consolidated Balance Sheets 
--  Condensed Consolidated Statements of Cash Flows 
--  Q1 2013 Data Supplement Sheet 
--  Reconciliation of Net Cash Provided by Operating Activities to Free Cash
    Flow 
--  Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2013
    Guidance 
 
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
                CONDENSED CONSOLIDATED STATEMENTS OF INCOME                 
                                                                            
                                                  Three Months Ended March  
                                                             31,            
                                                                            
                                                         2013          2012 
                                                 ---------------------------
(Amounts in millions, except share and per share                            
 data)                                                                      
Sales                                            $      644.7  $      657.3 
Cost of sales                                           447.0         461.2 
                                                 ---------------------------
Gross profit                                            197.7         196.1 
Costs and expenses:                                                         
Selling and administrative expenses                      82.5          79.1 
Product engineering expenses                             30.3          26.1 
Other operating expense, net                              3.2           1.4 
                                                 ---------------------------
Operating income                                         81.7          89.5 
                                                                            
  Equity income of unconsolidated joint ventures,                           
   net                                                    2.9           4.9 
  Other non-operating expense, net                       (0.1)         (0.7)
  Interest expense, net                                  (0.3)         (0.3)
                                                 ---------------------------
Income before income taxes                               84.2          93.4 
                                                                            
Income tax expense                                        8.2           1.4 
                                                 ---------------------------
Net income including noncontrolling interests       
     76.0          92.0 
                                                                            
  Less: Net income attributable to noncontrolling                           
   interests                                              2.3           2.8 
                                                 ---------------------------
Net income attributable to Company               $       73.7  $       89.2 
                                                                            
                                                                            
Net income attributable to Company per common                               
 share                                                                      
  Basic                                          $       1.17  $       1.38 
                                                                            
  Diluted                                        $       1.15  $       1.34 
                                                                            
Cash dividend per share of common stock          $          -  $          - 
                                                                            
Weighted average common shares outstanding                                  
  Basic                                            62,921,412    64,648,494 
                                                                            
  Diluted                                          64,071,002    66,399,459 
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
                   CONDENSED CONSOLIDATED BALANCE SHEETS                    
                                                                            
                                                                            
                                                   March 31,   December 31, 
(Amounts in millions, except share data)                2013           2012 
                                               -----------------------------
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                    $       175.7  $       175.0 
  Accounts receivable, less allowance for                                   
   doubtful accounts: $4.0 in 2013; $3.6 in                                 
   2012                                                348.6          301.5 
  Inventories                                          202.3          191.8 
  Future income tax benefits                            11.1           13.8 
  Restricted cash                                       24.7           26.0 
  Guaranteed notes receivable                           44.9           41.2 
  Other current assets                                  47.6           43.3 
                                               -----------------------------
  Total current assets                                 854.9          792.6 
                                                                            
Property, plant and equipment, less accumulated                             
 depreciation                                          378.4          389.0 
Goodwill                                               362.2          371.7 
Long-term future income tax benefits                    91.7           91.5 
Investments in unconsolidated joint ventures            19.8           20.5 
Intangible assets, net                                  41.4           39.4 
Other assets                                            42.5           42.3 
                                               -----------------------------
TOTAL ASSETS                                   $     1,790.9  $     1,747.0 
                                               -----------------------------
                                               -----------------------------
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Loans payable to banks                       $        63.6  $        76.2 
  Accounts payable                                     156.2          115.4 
  Accrued payroll                                       98.1           94.2 
  Current portion of warranties                         30.7           33.8 
  Taxes payable                                            -           5.70 
  Other accrued liabilities                            122.7          120.4 
                                               -----------------------------
  Total current liabilities                            471.3          445.7 
                                                                            
Post-retirement benefits                               418.6          430.6 
Deferred tax liabilities                                30.5           29.9 
Long-term income tax liabilities                        47.9           47.7 
Other liabilities                                       61.8           64.4 
                                               -----------------------------
Total Liabilities                                    1,030.1        1,018.3 
Shareholders' equity:                                                       
  Preferred stock, 4,000,000 shares authorized;                             
   none issued and outstanding                                              
  Common stock, $.01 par value, 400,000,000                                 
   shares authorized; shares issued: 76,545,044                             
   in 2013; 75,755,306 in 2012; and shares                                  
   outstanding: 62,791,142 in 2013; 62,747,151                              
   in 2012                                               0.7            0.7 
  Capital surplus                                      752.8          735.5 
  Treasury stock, at cost: 13,753,902 shares in                             
   2013; 13,008,155 shares in 2012                    (707.7)        (655.8)
  Retained earnings                                    792.2          718.6 
    Accumulated other comprehensive income                                  
    Foreign currency translation adjustments           (27.3)         (15.4)
    Unrealized losses on benefit plans, net of                              
     tax                                              (103.5)        (107.2)
                                               -----------------------------
Total shareholders' equity                             707.2          676.4 
Noncontrolling interests                                53.6           52.3 
                                               -----------------------------
Total equity                                           760.8          728.7 
                                               -----------------------------
TOTAL LIABILITIES AND EQUITY                   $     1,790.9  $     1,747.0 
                                               -----------------------------
                                               -----------------------------
                                                                            
                    WABCO HOLDINGS INC. AND SUBSIDIARIES                    
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS               
                                (Unaudited)                                 
                                                                            
                                                        Three Months Ended  
                                                             March 31,      
                                                       ---------------------
                                                            2013       2012 
                                                       ---------------------
(Amounts in millions)                                                       
Operating activities:                                                       
  Net income including noncontrolling interests        $    76.0  $    92.0 
  Adjustments to reconcile net income to net cash                           
   provided by operating activities:                                        
    Depreciation                                            18.3       16.7 
    Amortization of intangibles                              3.0        2.7 
    Equity in earnings of unconsolidated joint                              
     ventures, net of dividends received                     0.7       (1.4)
    Non-cash stock compensation                              3.2        3.6 
    Deferred income tax benefit                             (1.0)      (1.4)
    Loss on sale or disposal of property, plant and                         
     equipment                                                 -        0.1 
  Changes in assets and liabilities:                                        
    Accounts receivable, net                               (53.2)     (13.0)
    Inventories                                            (14.8)     (24.5)
    Accounts payable                                        45.1       28.6 
    Other accrued liabilities and taxes                     (3.8)       3.4 
    Other current and long-term assets                      (8.2)       6.1 
    Other long-term liabilities                             (1.3)     (18.6)
                                                       ---------------------
Net cash provided by operating activities                   64.0       94.3 
                                                       ---------------------
Investing activities:                                                       
  Purchases of property, plant and equipment               (15.5)     (16.7)
  Investments in capitalized software                       (4.9)      (2.2)
                                                       ---------------------
Net cash used in investing activities                      (20.4)     (18.9)
                                                       ---------------------
Financing activities:                                                       
  Net repayments of revolving credit facilities            (13.1)         - 
  Net borrowings/repayments of short-term debt               2.3       (6.4)
  Purchases of treasury stock                              (43.8)     (48.6)
  Dividends to noncontrolling interest holders              (1.3)      (1.4)
  Proceeds from exercise of stock options                   15.7        8.9 
                                                       ---------------------
Net cash used in financing activities                      (40.2)     (47.5)
                                                       ---------------------
Effect of exchange rate changes on cash and cash                            
 equivalents                                                (2.7)       2.1 
                                                       ---------------------
Net decrease in cash and cash equivalents                    0.7       30.0 
Cash and cash equivalents at beginning of period           175.0      102.4 
                                                       ---------------------
Cash and cash equivalents at end of period             $   175.7  $   132.4 
                                                       ---------------------
                                                       ---------------------
                                                                            
                        WABCO HOLDINGS INC.                                 
             Q1 2013 Data Supplement Sheet (Unaudited)                      
                                                                            
                               Quarter Ended March 31,                      
(Amounts in                   % of             % of                         
 millions, except           Sales/           Sales/          % Chg          
 per share data)      2013     Adj     2012     Adj  Chg vs.   vs.          
                             Sales            Sales     2012  2012          
                                                                            
                                                                            
Sales                                                                       
Reported           $ 644.7          $ 657.3          $ (12.6) -1.9%         
 Foreign exchange                                                           
  translational                                                             
  effects              8.3                -              8.3                
                   --------         --------         --------               
Adjusted Sales     $ 653.0          $ 657.3          $  (4.3) -0.7%         
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
Gross Profit                                                                
Reported           $ 197.7    30.7% $ 196.1    29.8% $   1.6   0.8%         
 Streamlining costs    2.9              0.0              2.9                
 Separation costs      0.2              0.2                -                
                   --------         --------         --------               
Performance Gross                                                           
 Profit            $ 200.8    31.1% $ 196.3    29.9% $   4.5   2.3%         
                                                                            
 Foreign exchange                                                           
  translational                                                             
  effects              1.4                -              1.4                
                   --------         --------         --------               
Adjusted Gross                                                              
 Profit            $ 202.2    31.0% $ 196.3    29.9% $   5.9   3.0%  110 bps
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
Selling,                                                                    
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other                                                         
Reported           $ 116.0    18.0% $ 106.6    16.2% $   9.4   8.8%         
 Streamlining costs   (2.3)            (1.2)            (1.1)               
 Separation costs     (0.5)            (0.4)            (0.1)               
                   --------         --------         --------               
Performance                                                                 
 Selling,                                                                   
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other$ 113.2    17.6% $ 105.0    16.0% $   8.2   7.8%         
                                                                            
 Foreign exchange                                                           
  translational                                                             
  effects              0.3                -              0.3                
                   --------         --------         --------               
Adjusted Selling,                                                           
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other$ 113.5    17.4% $ 105.0    16.0% $   8.5   8.1%  141 bps
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
Operating Income                                                            
Reported           $  81.7    12.7% $  89.5    13.6% $  (7.8) -8.7%  -94 bps
 Streamlining costs    5.2              1.2              4.0                
 Separation costs      0.7              0.6              0.1                
                   --------         --------         --------               
Performance                                                                 
 Operating Income  $  87.6    13.6% $  91.3    13.9%    (3.7) -4.1%  -31 bps
                                                                            
 Foreign exchange                                                           
  translational                                                             
  effects              1.1                -              1.1                
                   --------         --------         --------               
Adjusted Operating                                                          
 Income            $  88.7    13.6% $  91.3    13.9% $  (2.6) -2.9%  -31 bps
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
EBIT (Earnings                                                              
 Before Interest                                                            
 and Taxes)                                                                 
Reported Operating                                                          
 Income/(Loss)     $  81.7          $  89.5          $  (7.8)               
 Equity in Income                                                           
  of Unconsolidated                                                         
  Joint Venture        2.9              4.9             (2.0)               
 Other non-                                                                 
  operating                                                                 
  expense, net        (0.1)            (0.7)             0.6                
 Net income                                                                 
  attributable to                                                           
  noncontrolling                                                            
  interest            (2.3)            (2.8)             0.5                
                   --------         --------         --------               
                                                                            
EBIT               $  82.2    12.8% $  90.9    13.8% $  (8.7) -9.6% -108 bps
                                                                            
 Streamlining costs    5.2              1.2              4.0                
 Separation costs      1.0              0.9              0.1                
                   --------         --------         --------               
Performance EBIT                                                            
 (Earnings Before                                                           
 Interest and                                                               
 Taxes)            $  88.4    13.7% $  93.0    14.1% $  (4.6) -4.9%  -43 bps
                                                                            
 Foreign exchange                                                           
  translational                                                             
  effects              1.0                -              1.0                
                   --------         --------         --------               
Adjusted EBIT                                                               
 (Earnings Before                                                           
 Interest and                                                               
 Taxes)            $  89.4    13.7% $  93.0    14.1% $  (3.6) -3.8%  -45 bps
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
Pre-Tax Income                                                              
EBIT               $  82.2          $  90.9          $  (8.7)               
 Interest                                                                   
  (expense)/income,                                                         
  net                 (0.3)            (0.3)               -                
                   --------         --------         --------               
                                                                            
Pre-Tax Income     $  81.9          $  90.6          $  (8.7)               
                                                                            
 Streamlining costs    5.2              1.2              4.0                
 Separation costs      1.0              0.9              0.1                
                   --------         --------         --------               
Performance Pre-Tax                                                         
 Income            $  88.1          $  92.7          $  (4.6)               
                                                                            
 Tax rate on a                                                              
  performance basis   15.0%            16.5%                                
                                                                            
Net Income                                                                  
 Attributable to                                                            
 Company                                                                    
Reported Net Income                                                         
 Attributable to                                                            
 Company           $  73.7          $  89.2          $ (15.5)               
 Streamlining cost,                                                         
  net of tax           4.3              1.1              3.2                
 Tax items            (3.9)           (13.6)             9.7                
 Separation costs,                                                          
  net of tax and                                                            
  separation                                                                
  related taxes        0.8              0.7              0.1                
                   --------         --------         --------               
Performance Net                                                             
 Income                                                                     
 Attributable to                                                            
 Company           $  74.9          $  77.4          $  (2.5)               
                   --------         --------         --------               
                   --------         --------         --------               
                                                                            
Performance Net                                                             
 Income                                                                     
 Attributable to                                                            
 Company per                                                                
 Diluted Common                                                             
 Share             $  1.17          $  1.17                                 
                                                                            
Common Shares                                                               
 Outstanding -                                                              
 Diluted              64.1             66.4                                 
                                                                            
Note: The presentation of the performance measures above are not in         
 conformity with generally accepted accounting principles (GAAP). These     
 measures may not be comparable to similar measures of other companies as   
 not all companies calculate these measures in the same manner.             
                                                                            
                            WABCO HOLDINGS INC.                             
                    Reconciliation of Net Cash Provided                     
                 By Operating Activities to Free Cash Flow                  
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
                                                   Three Months Ended March 
(Amounts in millions)                                         31,           
                                                   -------------------------
                                                          2013         2012 
                                                   -------------------------
                                                                            
Net Cash Provided by Operating Activities          $      64.0  $      94.3 
                                                                            
Deductions or Additions to Reconcile to Free Cash                           
 Flow:                                                                      
Net purchases of property, plant, equipment and                             
 computer software                                       (20.4)       (18.9)
                                                   -------------------------
                                                                            
Free Cash Flow                                     $      43.6  $      75.4 
                                                   -------------------------
                                                   -------------------------
                                                                            
  Less: Streamlining & separation payments         $      (5.8) $      (3.4)
                                                   -------------------------
                                                                            
Free Cash Flow excluding streamlining & separation                          
 payments                                          $      49.4  $      78.8 
                                                   -------------------------
                                                   -------------------------
                                                                            
                                                                            
Note: This statement reconciles net cash provided by operating activities   
 to free cash flow. Management uses free cash flow and free cash flow       
 excluding streamlining and separation payments, which are not defined by   
 US GAAP, to measure the Company's operating performance. Free cash flow    
 excluding streamlining and separation payments is also one of the several  
 measures used to determine incentive compensation for certain employees.   
                                                                            
                            WABCO HOLDINGS INC.                             
  Reconciliation of GAAP to Non-GAAP Financial Measures for Full Year 2013  
                                  Guidance                                  
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
(Amounts in millions, except per                                            
 share data)                                   Previous             Updated 
                                         Full Year 2013      Full Year 2013 
                                               Guidance            Guidance 
                                     ---------------------------------------
                                                                            
Operating Income                                                            
                                                                            
Reported Operating Income Margin           11.7% - 12.7%       12.1% - 12.7%
 Streamlining cost, impact to margin                0.4%                0.4%
 Separation costs, impact to margin                 0.2%                0.2%
                                     ---------------------------------------
Performance Operating Income Margin        12.3% - 13.3%       12.7% - 13.3%
                                     ---------------------------------------
                                     ---------------------------------------
                                                                            
Net Income Attributable to Company                                          
                                                                            
Reported Net Income Attributable to                                         
 Company                             $   459.7 - $491.3  $   469.2 - $494.5 
 Streamlining cost, net of tax                      8.5                 8.5 
 Tax items                                       (200.0)             (200.0)
 Separation costs, net of tax and                                           
  separation related taxes                          4.0                 4.0 
                                     ---------------------------------------
Performance Net Income Attributable                                         
 to Company                          $   272.2 - $303.8  $   281.7 - $307.0 
                                     ---------------------------------------
                                     ---------------------------------------
                                                                            
                                                                            
Reported Net Income Attributable to                                         
 Company per Diluted Common Share    $     7.26 - $7.76  $     7.41 - $7.81 
                                                                            
Performance Net Income Attributable                                         
 to Company per Diluted Common Share $     4.30 - $4.80  $     4.45 - $4.85 
                                                                            
Diluted common shares outstanding          approx. 63.3        approx. 63.3 
                                                                            
Note: The presentation of performance net income and performance net income 
 per diluted common share is not in conformity with generally accepted      
 accounting principles (GAAP). These measures may not be comparable to      
 similar measures of other companies as not all companies calculate these   
 measures in the same manner.                                               
----------------------------------------------------------------------------

Contacts:
Media, investors and analysts contact
WABCO Holdings Inc.
Christian Fife
+1 732 369 7465
christian.fife@wabco-auto.com
www.wabco-auto.com