WABCO Reports Q2 2013 Results; Delivers Record Performance Earnings per Share in Continued Challenging Market; Upgrades Guidance

WABCO Reports Q2 2013 Results; Delivers Record Performance Earnings per Share 
in Continued Challenging Market; Upgrades Guidance for 2013 
BRUSSELS, BELGIUM -- (Marketwired) -- 07/26/13 -- WABCO Holdings Inc.
(NYSE:WBC) -   


 
--  Q2 2013 sales of $678.2 million, up 6.8 percent in local currencies and
    up 6.8 percent in U.S. dollars from a year ago
      
--  Q2 2013 operating margin of 13.5 percent on a performance basis versus
    14.6 percent a year ago; operating margin of 12.7 percent on a U.S. GAAP
    basis versus 14.6 percent a year ago
      
--  Q2 2013 diluted EPS of $1.30 on a performance basis, an all-time
    quarterly record, up from $1.19 a year ago; diluted EPS of $1.31 on a
    U.S. GAAP basis, up from $1.15 a year ago
      
--  In Q2 2013, WABCO generated $92.1 million in net cash from operating
    activities and $78.0 million of free cash flow, excluding payments of
    $6.5 million for streamlining and separation activities
      
--  Upgrades guidance for full year 2013; sales growth to now range between
    5 and 8 percent in local currencies, up from previous guidance to range
    between 3 and 7 percent; diluted EPS on a performance basis to now range
    from $4.70 to $5.00, up from previous guidance to range from $4.45 to
    $4.85; and diluted EPS on a U.S. GAAP basis to now range from $7.64 to
    $7.94, up from previous guidance to range from $7.41 to $7.81 

 
WABCO Holdings Inc. (NYSE:WBC) (www.wabco-auto.com), a global
technology leader and tier-one supplier to the commercial vehicle
industry, today reported Q2 2013 sales of $678.2 million, up 6.8
percent in local currencies from a year ago and up 6.8 percent in
U.S. dollars, reflecting an expected sequential industry uptick for
the quarter.  
"In Q2 2013, WABCO delivered yet another record quarterly performance
fueled by our continued ability to outperform a sluggish market.
Indeed, WABCO's revenues increased 6.8 percent year on year, helped
by growth of 8.1 percent in aftermarket revenues," said Jacques
Esculier, WABCO Chairman and Chief Executive Officer. 
"In addition, WABCO's Operating System, one of our industry's most
advanced management environments, continues to power excellence in
execution across our organization, as it generated a productivity
gain of $20.7
 million in Q2 2013, an all-time quarterly record
amount," said Esculier. "It delivered savings of 4.8 percent of gross
material costs and 6.2 percent of conversion costs. This robust
result further demonstrates WABCO's continued ability to optimize
resources and flex capacity to address changes in market demand." 
WABCO reported Q2 2013 performance operating income of $91.7 million
versus $92.8 million a year ago, and operating income was $86.4
million on a U.S. GAAP basis versus $92.8 million a year ago.  
WABCO's performance operating margin for Q2 2013 was 13.5 percent
versus 14.6 percent a year ago, and operating margin was 12.7 percent
on a U.S. GAAP basis versus 14.6 percent a year ago. 
For Q2 2013, WABCO reported performance net income attributable to
the company of $82.4 million or $1.30 per diluted share, up from
$78.2 million or $1.19 per diluted share a year ago, and Q2 2013 U.S.
GAAP net income attributable to the company of $83.2 million or $1.31
per diluted share, up from $75.6 million or $1.15 per diluted share a
year ago.  
During Q2 2013, WABCO generated $92.1 million in net cash from
operating activities, resulting in free cash flow of $78.0 million,
excluding payments of $6.5 million for streamlining and separation
activities. This resulted in a conversion rate of 95 percent of
performance net income attributable to the company. 
Since June 2011, WABCO has repurchased 8,519,214 shares for $481.4
million in open market transactions as of June 30, 2013. WABCO is
authorized to repurchase up to $318.6 million of additional shares
through December 31, 2014. 
"In Q2 2013, WABCO continued to outperform the global market, while
also delivering a new record amount of productivity gain and a new
quarterly record of diluted earnings per share of $1.30 on a
performance basis, marking Q2 2013 as yet another consecutive quarter
of success on our path to deliver outstanding value for our
shareowners," said Esculier.  
Recent Highlights  
In Q2 2013, WABCO's factory in Miass, Russia, made its first delivery
of products as WABCO has now begun locally supplying UralAZ, a major
manufacturer of trucks. WABCO's manufacturing site located in Miass
is the company's newest factory in its global network of 20 plants in
10 countries spanning 4 continents. UralAZ is part of the GAZ Group,
Russia's largest manufacturer of commercial vehicles. WABCO
manufactures innovative pneumatic braking components and parts in
Miass for Ural trucks in series production in Russia. Headquartered
in Moscow, WABCO Russia has 5 sales offices and more than 110 Service
Partners across the country. 
As reported in Q2 2013, WABCO has entered into an agreement with
Agrale, a major original equipment manufacturer based in Brazil and
Argentina, to supply innovative hydraulic anti-lock braking (ABS)
technology for Agrale's full range of light commercial vehicles that
use hydraulic brakes. According to safety legislation in Brazil, from
January 2014, all new trucks, buses, trailers and passenger cars must
have ABS installed. Light duty vehicles (under 6 tons gross weight)
normally use hydraulic braking systems whereas heavier vehicles
typically deploy pneumatic systems. 
WABCO reported in Q2 2013 that it continues to expand its global
remanufacturing capability as the company has recently been granted a
license by Chinese authorities to remanufacture air compressors in
China for commercial and off-highway vehicles. WABCO is the first and
only supplier in China authorized to conduct this type of
remanufacturing activity. WABCO Reman Solutions is remanufacturing
air compressors locally for China National Heavy Truck Corporation
(CNHTC) and for WABCO's customers in the independent aftermarket in
China. WABCO expects to expand its remanufacturing scope in China to
add other products, subject to government approvals. 
On July 10, 2013, the company announced that WABCO in the Netherlands
has been recognized with a top award for quality achievement
throughout 2012 by PACCAR Inc. It is the second year in a row that
WABCO wins this top award. PACCAR recently honored WABCO's
manufacturing facility in Meppel, the Netherlands, which supplies
vehicle parts and components for DAF trucks in series production at
quality levels that equal or exceed PACCAR's requirements. 
The Meritor WABCO joint venture in North America reported in Q2 2013
that a study conducted by the University of Michigan Transportation
Research Institute (UMTRI) and published by the U.S. National Highway
Traffic Safety Administration (NHTSA) verifies the significant
benefits of forward collision avoidance and mitigation technology
installed on tractor-semitrailers and single unit trucks. WABCO's
OnGuard(TM) Collision Mitigation System was used for the UMTRI study,
which validated a potential 24 percent reduction in fatalities with
current systems and predicts up to 57 percent fatality reduction with
upcoming systems.  
As reported in Q2 2013, the Meritor WABCO joint venture in North
America has received the 2012 Excellence in Quality Award from Hino
Motors Manufacturing U.S.A. The company has been recognized for this
prestigious award three times in the past five years. The award
honors achievement of a "zero defect rate" per million parts produced
duri
ng 2012. The company supplies Hino with pneumatic and hydraulic
anti-lock braking (ABS) systems for vehicles built in Williamston,
West Virginia, U.S.A. and Woodstock, Ontario, Canada. In addition,
Meritor WABCO's on-time delivery performance was 100 percent for
2012.  
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 5 and 8 percent in local currencies, up from its previous
guidance to range between 3 and 7 percent; performance operating
margin to now range from 13.0 to 13.5 percent, up from its previous
guidance to range from 12.7 to 13.3 percent; and operating margin on
a U.S. GAAP basis to now range from 12.2 to 12.7 percent, up from its
previous guidance to range from 12.1 to 12.7 percent. 
WABCO's upgraded 2013 guidance results in diluted earnings per share
on a performance basis to now range from $4.70 to $5.00, up from its
previous guidance to range from $4.45 to $4.85; and diluted earnings
per share are estimated to now range from $7.64 to $7.94 on a U.S.
GAAP basis, up from its previous guidance to range from $7.41 to
$7.81. 
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 Q2 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 July 26 until midnight August 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 10966773. 
About WABCO 
WABCO (NYSE:WBC) is a leading global supplier of technologies and
control systems for the safety and efficiency of commercial vehicles.
Founded nearly 150 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 Q2 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,
the one-time impact from an adjustment to the UK pension plan, 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 
--  Q2 2013 Data Supplement Sheet 
--  Six Months Ended June 30, 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                                 
(Unaudited)                                                                 
                                                                            
                       Three Months Ended June 30, Six Months Ended June 30,
                                                                            
                               2013          2012         2013         2012 
                       --------------------------- -------------------------
(Amounts in millions,                                                       
 except share and per                                                       
 share data)                                                                
----------------------                                                      
Sales                  $      678.2  $      635.2  $   1,322.9  $   1,292.5 
Cost of sales                 471.6         441.5        918.6        902.6 
                       ------------- ------------- ------------ ------------
Gross profit                  206.6         193.7        404.3        389.9 
Costs and expenses:                                                         
  Selling and                                                               
   administrative                                                           
   expenses                    89.2          74.0        171.7        153.1 
  Product engineering                                                       
 
   expenses                    29.5          26.1         59.8         52.2 
  Other operating                                                           
   expense, net                 1.5           0.8          4.6          2.3 
                       ------------- ------------- ------------ ------------
Operating income               86.4          92.8        168.2        182.3 
                                                                            
  Equity income of                                                          
   unconsolidated                                                           
   joint ventures, net          5.3           4.8          8.2          9.7 
  Other non-operating                                                       
   income/(expense),                                                        
   net                          4.0          (0.6)         3.7         (1.3)
  Interest expense,                                                         
   net                         (0.2)         (0.5)        (0.5)        (0.8)
                       ------------- ------------- ------------ ------------
Income before income                                                        
 taxes                         95.5          96.5        179.6        189.9 
                                                                            
Income tax expense              9.7          17.6         17.8         19.0 
                       ------------- ------------- ------------ ------------
Net income including                                                        
 noncontrolling                                                             
 interests                     85.8          78.9        161.8        170.9 
                                                                            
  Less: Net income                                                          
   attributable to                                                          
   noncontrolling                                                           
   interests                    2.6           3.3          4.9          6.1 
                       ------------- ------------- ------------ ------------
Net income                                                                  
 attributable to                                                            
 Company               $       83.2  $       75.6  $     156.9  $     164.8 
                                                                            
                                                                            
Net income                                                                  
 attributable to                                                            
 Company per common                                                         
 share                                                                      
  Basic                $       1.33  $       1.18  $      2.50  $      2.56 
                                                                            
  Diluted              $       1.31  $       1.15  $      2.46  $      2.50 
                                                                            
Cash dividend per                                                           
 share of common stock $          -  $          -  $         -  $         - 
                                                                            
Weighted average                                                            
 common shares                                                              
 outstanding                                                                
  Basic                  62,673,044    64,288,346   62,795,504   64,467,425 
                                                                            
  Diluted                63,500,403    65,625,136   63,790,312   66,010,308 
                                                                            
                                                                            
WABCO HOLDINGS INC. AND SUBSIDIARIES                                        
CONDENSED CONSOLIDATED BALANCE SHEETS                                       
                                                                            
                                                                            
                                                    June 30,   December 31, 
(Amounts in millions, except share data)                2013           2012 
------------------------------------------------ ------------ --------------
                                                  (Unaudited)               
ASSETS                                                                      
Current assets:                                                             
  Cash and cash equivalents                      $     166.4  $       175.0 
  Accounts receivable, less allowance for                                   
   doubtful accounts: $4.3 in 2013; $3.6 in 2012 
      347.8          301.5 
  Inventories                                          206.7          191.8 
    Finished products                                   92.0           76.9 
    Products in process                                  8.2            7.1 
    Raw materials                                      106.5          107.8 
  Taxes receivable on income                             3.3              - 
  Future income tax benefits                            10.7           13.8 
  Restricted cash                                       31.1           26.0 
  Guaranteed notes receivable                           55.9           41.2 
  Other current assets                                  43.7           43.3 
                                                 ------------ --------------
  Total current assets                                 865.6          792.6 
                                                                            
Property, plant and equipment, less accumulated                             
 depreciation                                          370.9          389.0 
Goodwill                                               363.7          371.7 
Long-term future income tax benefits                    92.2           91.5 
Investments in unconsolidated joint ventures            20.5           20.5 
Intangible assets, net                                  40.5           39.4 
Other assets                                            41.3           42.3 
                                                 ------------ --------------
TOTAL ASSETS                                     $   1,794.7  $     1,747.0 
                                                 ------------ --------------
                                                 ------------ --------------
                                                                            
LIABILITIES AND EQUITY                                                      
Current liabilities:                                                        
  Loans payable to banks                         $      23.8  $        76.2 
  Accounts payable                                     159.6          115.4 
  Accrued payroll                                      106.1           94.2 
  Current portion of warranties                         29.3           33.8 
  Taxes payable                                            -            5.7 
  Other accrued liabilities                            117.6          120.4 
                                                 ------------ --------------
  Total current liabilities                            436.4          445.7 
                                                                            
Post-retirement benefits                               424.5          430.6 
Deferred tax liabilities                                29.9           29.9 
Long-term income tax liabilities                        47.5           47.7 
Other liabilities                                       59.8           64.4 
 
                                                ------------ --------------
Total Liabilities                                      998.1        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: 77,079,903                             
   in 2013; 75,755,306 in 2012; and shares                                  
   outstanding: 62,603,883 in 2013; 62,747,151                              
   in 2012                                               0.7            0.7 
  Capital surplus                                      776.2          735.5 
  Treasury stock, at cost: 14,476,020 shares in                             
   2013; 13,008,155 shares in 2012                    (757.8)        (655.8)
  Retained earnings                                    875.5          718.6 
    Accumulated other comprehensive income                                  
    Foreign currency translation adjustments           (44.7)         (15.4)
    Unrealized losses on benefit plans, net of                              
     tax                                              (103.9)        (107.2)
                                                 ------------ --------------
Total shareholders' equity                             746.0          676.4 
Noncontrolling interests                                50.6           52.3 
                                                 ------------ --------------
Total equity                                           796.6          728.7 
                                                 ------------ --------------
TOTAL LIABILITIES AND EQUITY                     $   1,794.7  $     1,747.0 
                                                 ------------ --------------
                                                 ------------ --------------
                                                                            
                                                                            
WABCO HOLDINGS INC. AND SUBSIDIARIES                                        
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS                             
(Unaudited)                                                                 
                                                                            
                                                Three Months Ended June 30, 
                                                ----------------------------
                                                         2013          2012 
                                                -------------- -------------
(Amounts in millions)                                                       
Operating activities:                                                       
  Net income including noncontrolling interests  $       85.8  $       78.9 
  Adjustments to reconcile net income to net                                
   cash provided by operating activities:                                   
    Depreciation                                         18.9          16.6 
    Amortization of intangibles                           3.0           2.7 
    Equity in earnings of unconsolidated joint                              
     ventures, net of dividends received                 (0.6)         (1.1)
    Non-cash stock compensation                           3.4           4.0 
    Deferred income tax benefit                           0.9          (1.4)
    Loss on sale or disposal of property, plant                             
     and equipment                                        0.1          (0.1)
  Changes in assets and liabilities:                                        
    Accounts receivable, net                             (1.5)        (16.1)
    Inventories                                          (6.9)         14.9 
    Accounts payable                                      3.3         (17.4)
    Other accrued liabilities and taxes                   5.9         (12.5)
    Other current and long-term assets                  (17.8)          8.3 
    Other long-term liabilities                          (2.4)         (1.6)
                                                -------------- -------------
Net cash provided by operating activities                92.1          75.2 
                                                -------------- -------------
Investing activities:                                                       
  Purchases of property, plant and equipment            (18.3)        (19.3)
  Investments in capitalized software                    (2.3)         (2.4)
                                                -------------- -------------
Net cash used in investing activities                   (20.6)        (21.7)
                                                -------------- -------------
Financing activities:                                                       
  Net repayments of revolving credit facilities         (32.7)         15.0 
  Net borrowings/repayments of short-term debt           (8.2)          2.1 
  Purchases of treasury stock                           (56.9)        (51.2)
  Dividends to noncontrolling interest holders           (1.4)         (1.5)
  Proceeds from exercise of stock options                20.0           5.3 
                                                -------------- -------------
Net cash used in financing activities                   (79.2)        (30.3)
                                                -------------- -------------
Effect of exchange rate changes on cash and cash                            
 equivalents                                             (1.6)         (5.8)
                                                -------------- -------------
Net decrease in cash and cash equivalents                (9.3)         17.4 
Cash and cash equivalents at beginning of period        175.7         132.4 
                                                -------------- -------------
Cash and cash equivalents at end of period       $      166.4  $      149.8 
                                                -------------- -------------
                                                -------------- -------------
                                                                            
                                                                            
WABCO HOLDINGS INC.                                                         
Q2 2013 Data Supplement Sheet (Unaudited)                                   
                                                                            
                                      Quarter Ended June 30,                
(Amounts in millions,                                                       
 except per share                   % of               % of           % Chg 
 data)                            Sales/             Sales/  Chg vs.    vs. 
                         2013  Adj Sales    2012  Adj Sales     2012   2012 
                       ------- ---------- ------- ---------- -------- ------
Sales                                                                       
----------------------                                                      
Reported               $678.2             $635.2             $  43.0    6.8%
  Foreign exchange                                                          
   translational                                                            
   effects                  -                  -                   -        
                       -------            -------            --------       
Adjusted Sales         $678.2             $635.2             $  43.0    6.8%
                       -------            -------            --------       
   
                    -------            -------            --------       
                                                                            
Gross Profit                                                                
----------------------                                                      
Reported               $206.6       30.5% $193.7       30.5% $  12.9    6.7%
  Streamlining costs      0.3                2.0                (1.7)       
  Separation costs        0.2                0.2                   -        
                       -------            -------            --------       
Performance Gross                                                           
 Profit                $207.1       30.5% $195.9       30.8% $  11.2    5.7%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               (1.8)                 -                (1.8)       
                       -------            -------            --------       
Adjusted Gross Profit  $205.3       30.3% $195.9       30.8% $   9.4    4.8%
                       -------            -------            --------       
                       -------            -------            --------       
                                                                            
Selling,                                                                    
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other                                                         
----------------------                                                      
Reported               $120.2       17.7% $100.9       15.9% $  19.3   19.1%
  Streamlining costs     (4.3)              (1.7)               (2.6)       
  Separation costs       (0.5)              (0.4)               (0.1)       
  UK pension                                                                
   adjustment               -                4.3                (4.3)       
                       -------            -------            --------       
Performance Selling,                                                        
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $115.4       17.0% $103.1       16.2% $  12.3   12.0%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               (1.2)                 -                (1.2)       
                       -------            -------            --------       
Adjusted Selling,                                                           
 Administrative,                                                            
 Product Engineering                                                        
 Expenses and Other    $114.2       16.8% $103.1       16.2% $  11.1   10.8%
                       -------            -------            --------       
                       -------            -------            --------       
                                                                            
Operating Income                                                            
----------------------                                                      
Reported               $ 86.4       12.7% $ 92.8       14.6% $  (6.4)  -6.9%
  Streamlining costs      4.6                3.7                 0.9        
  Separation costs        0.7                0.6                 0.1        
  UK pension                                                                
   adjustment               -               (4.3)                4.3        
                       -------            -------            --------       
Performance Operating                                                       
 Income                $ 91.7       13.5% $ 92.8       14.6%    (1.1)  -1.2%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               (0.6)                 -                (0.6)       
                       -------            -------            --------       
Adjusted Operating                                                          
 Income                $ 91.1       13.4% $ 92.8       14.6% $  (1.7)  -1.9%
                       -------            -------            --------       
                       -------            -------            --------       
                                                                            
EBIT (Earnings Before                                                       
 Interest and Taxes)                                                        
----------------------                                                      
Reported Operating                                                          
 Income/(Loss)         $ 86.4             $ 92.8             $  (6.4)       
  Equity in Income of                                                       
   Unconsolidated                                                           
   Joint Venture          5.3                4.8                 0.5        
  Other non-operating                                                       
   expense, net           4.0               (0.6)                4.6        
  Net income                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest              (2.6)              (3.3)                0.7        
                       -------            -------            --------       
                                                                            
EBIT                   $ 93.1       13.7% $ 93.7       14.8% $  (0.6)  -0.6%
                                                                            
  Streamlining costs      4.6                3.7                 0.9        
  Separation costs       (2.8)               1.1                (3.9)       
  UK pension                                                                
   adjustment               -               (4.3)                4.3        
                       -------            -------            --------       
Performance EBIT                                                            
 (Earnings Before                                                           
 Interest and Taxes)   $ 94.9       14.0% $ 94.2       14.8% $   0.7    0.8%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               (1.0)                 -                (1.0)       
                       -------            -------            --------       
Adjusted EBIT                                                               
 (Earnings Before                                                           
 Interest and Taxes)   $ 93.9       13.9% $ 94.2       14.8% $  (0.3)  -0.3%
                       -------            -------            --------       
                       -------            -------            --------       
                                                                            
Pre-Tax Income                                                              
----------------------                                                      
EBIT 
                  $ 93.1             $ 93.7             $  (0.6)       
  Interest                                                                  
   (expense)/income,                                                        
   net                   (0.2)              (0.5)                0.3        
                       -------            -------            --------       
                                                                            
Pre-Tax Income         $ 92.9             $ 93.2             $  (0.3)       
                                                                            
  Streamlining costs      4.6                3.7                 0.9        
  Separation costs       (2.8)               1.1                (3.9)       
  UK pension                                                                
   adjustment               -               (4.3)                4.3        
                       -------            -------            --------       
Performance Pre-Tax                                                         
 Income                $ 94.7             $ 93.7             $   1.0        
                                                                            
  Tax rate on a                                                             
   performance basis     13.0%              16.5%                           
                                                                            
Net Income                                                                  
 Attributable to                                                            
 Company                                                                    
----------------------                                                      
Reported Net Income                                                         
 Attributable to                                                            
 Company               $ 83.2             $ 75.6             $   7.6        
  Streamlining cost,                                                        
   net of tax             3.1                3.1                   -        
  Tax items              (0.9)               1.9                (2.8)       
  Separation costs,                                                         
   net of tax and                                                           
   separation related                                                       
   taxes                 (3.0)               0.8                (3.8)       
  UK pension                                                                
   adjustment, net of                                                       
   tax                      -               (3.2)                3.2        
                       -------            -------            --------       
Performance Net Income                                                      
 Attributable to                                                            
 Company               $ 82.4             $ 78.2             $   4.2        
                       -------            -------            --------       
                       -------            -------            --------       
                                                                            
Performance Net Income                                                      
 Attributable to                                                            
 Company per Diluted                                                        
 Common Share          $ 1.30             $ 1.19                            
                                                                            
Common Shares                                                               
 Outstanding - Diluted   63.5               65.6                            
                                                                            
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.                                                         
Six Months Ended June 30, 2013 Data Supplement Sheet                        
(Unaudited)                                                                 
                                                                            
                                   Six Months Ended June 30,                
(Amounts in                                                                 
 millions, except                  % of                 % of     Chg  % Chg 
 per share data)                 Sales/               Sales/     vs.    vs. 
                        2013  Adj Sales      2012  Adj Sales    2012   2012 
                    --------- ---------- --------- ---------- ------- ------
Sales                                                                       
-------------------                                                         
Reported            $1,322.9             $1,292.5             $ 30.4    2.4%
  Foreign exchange                                                          
   translational                                                            
   effects               8.4                    -                8.4        
                    ---------            ---------            -------       
Adjusted Sales      $1,331.3             $1,292.5             $ 38.8    3.0%
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
Gross Profit                                                                
-------------------                                                         
Reported            $  404.3       30.6% $  389.9       30.2% $ 14.4    3.7%
  Streamlining                                                              
   costs                 3.3                  2.0                1.3        
  Separation costs       0.5                  0.4                0.1        
                    ---------            ---------            -------       
Performance Gross                                                           
 Profit             $  408.1       30.8% $  392.3       30.4% $ 15.8    4.0%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects              (0.5)                   -               (0.5)       
                    ---------            ---------            -------       
Adjusted Gross                                                              
 Profit             $  407.6       30.6% $  392.3       30.4% $ 15.3    3.9%
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
Selling,                                                                    
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other                                                         
-------------------                                                         
Reported            $  236.1       17.8% $  207.6       16.1% $ 28.5   13.7%
  Streamlining                                                              
   cost
s                (6.6)                (2.9)              (3.7)       
  Separation costs      (0.9)                (0.8)              (0.1)       
  UK pension                                                                
   adjustment              -                  4.3               (4.3)       
                    ---------            ---------            -------       
Performance                                                                 
 Selling,                                                                   
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other $  228.6       17.3% $  208.2       16.1% $ 20.4    9.8%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects              (0.8)                   -               (0.8)       
                    ---------            ---------            -------       
Adjusted Selling,                                                           
 Administrative,                                                            
 Product                                                                    
 Engineering                                                                
 Expenses and Other $  227.8       17.1% $  208.2       16.1% $ 19.6    9.4%
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
Operating Income                                                            
-------------------                                                         
Reported            $  168.2       12.7% $  182.3       14.1% $(14.1)  -7.7%
  Streamlining                                                              
   costs                 9.9                  4.9                5.0        
  Separation costs       1.4                  1.2                0.2        
  UK pension                                                                
   adjustment              -                 (4.3)               4.3        
                    ---------            ---------            -------       
Performance                                                                 
 Operating Income   $  179.5       13.6% $  184.1       14.2% $ (4.6)  -2.5%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               0.3                    -                0.3        
                    ---------            ---------            -------       
Adjusted Operating                                                          
 Income             $  179.8       13.5% $  184.1       14.2% $ (4.3)  -2.4%
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
EBIT (Earnings                                                              
 Before Interest                                                            
 and Taxes)                                                                 
-------------------                                                         
Reported Operating                                                          
 Income             $  168.2             $  182.3             $(14.1)       
  Equity in Income                                                          
   of                                                                       
   Unconsolidated                                                           
   Joint Venture    $    8.2                  9.7               (1.5)       
  Other non-                                                                
   operating                                                                
   expense, net     $    3.7                 (1.3)               5.0        
  Net income                                                                
   attributable to                                                          
   noncontrolling                                                           
   interest         $   (4.9)                (6.1)               1.2        
                    ---------            ---------            -------       
                                                                            
EBIT                $  175.2       13.2% $  184.6       14.3% $ (9.4)  -5.1%
                                                                            
  Streamlining                                                              
   costs            $    9.9                  4.9                5.0        
  Separation costs  $   (1.7)                 2.0               (3.7)       
  UK pension                                                                
   adjustment              -                 (4.3)               4.3        
Performance EBIT                                                            
 (Earnings Before                                                           
 Interest and                                                               
 Taxes)             $  183.4       13.9% $  187.2       14.5% $ (3.8)  -2.1%
                                                                            
  Foreign exchange                                                          
   translational                                                            
   effects               0.0                    -                0.0        
                    ---------            ---------            -------       
Adjusted EBIT                                                               
 (Earnings Before                                                           
 Interest and                                                               
 Taxes)             $  183.4       13.8% $  187.2       14.5% $ (3.8)  -2.0%
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
Pre-Tax                                                                     
 Income/(Loss)                                                              
-------------------                                                         
EBIT                $  175.2             $  184.6             $ (9.4)       
  Interest expense,                                                         
   net                  (0.5)                (0.8)               0.3        
                    ---------            ---------            -------       
                                                                            
Pre-Tax                                                                     
 Income/(Loss)      $  174.7             $  183.8             $ (9.1)       
                                                                            
  Streamlining                                                              
   costs                 9.9                  4.9                5.0        
  Separation costs      (1.7)                 2.0               (3.7)       
  UK pension                                                                
   adjustment              -                 (4.3)               4.3        
                    ---------            ---------            -------       
Performance Pre-Tax                                                         
 Income  
           $  182.9             $  186.4             $ (3.5)       
                                                                            
  Tax rate on a                                                             
   performance                                                              
   basis                14.0%                16.5%                          
                                                                            
Net Income                                                                  
 Attributable to                                                            
 Company                                                                    
-------------------                                                         
Reported Net Income                                                         
 Attributable to                                                            
 Company            $  156.9             $  164.8             $ (7.9)       
  Streamlining                                                              
   cost, net of tax      7.4                  4.3                3.1        
  Tax items             (4.8)               (11.7)               6.9        
  Separation costs,                                                         
   net of tax and                                                           
   separation                                                               
   related taxes        (2.2)                 1.5               (3.7)       
  UK pension                                                                
   adjustment, net                                                          
   of tax                  -                 (3.2)               3.2        
                    ---------            ---------            -------       
Performance Net                                                             
 Income             $  157.3             $  155.7             $  1.6        
                    ---------            ---------            -------       
                    ---------            ---------            -------       
                                                                            
Performance Net                                                             
 Income per Diluted                                                         
 Common Share       $   2.47             $   2.36                           
                                                                            
Common Shares                                                               
 Outstanding -                                                              
 Diluted                63.8                 66.0                           
                                                                            
                                                                            
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   Six Months Ended  
(Amounts in millions)                     June 30,            June 30,      
                                    -------------------- -------------------
                                         2013      2012      2013      2012 
                                    ---------- --------- --------- ---------
                                                                            
Net Cash Provided by Operating                                              
 Activities                          $   92.1  $   75.2  $  156.1  $  169.5 
                                                                            
Deductions or Additions to Reconcile                                        
 to Free Cash Flow:                                                         
Net purchases of property, plant,                                           
 equipment and computer software        (20.6)    (21.7)    (41.0)    (40.6)
                                    ---------- --------- --------- ---------
                                                                            
Free Cash Flow                       $   71.5  $   53.5  $  115.1  $  128.9 
                                    ---------- --------- --------- ---------
                                    ---------- --------- --------- ---------
                                                                            
  Less: Streamlining & separation                                           
   payments                          $   (6.5) $   (3.1) $  (12.4) $   (6.5)
                                    ---------- --------- --------- ---------
                                                                            
Free Cash Flow excluding                                                    
 streamlining & separation payments  $   78.0  $   56.6  $  127.5  $  135.4 
                                    ---------- --------- --------- ---------
                                    ---------- --------- --------- ---------
                                                                            
                                                                            
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 Guidance  Full Year 2013 Guidance 
                           ------------------------ ------------------------
                                                                            
Operating Income                                                            
--------------------------                                                  
                                                                            
Reported Operating Income                                                   
 Margin                               12.1% - 12.7%            12.2% - 12.7%
  Streamlining cost,                                                        
   impact to margin                            0.4%                     0.6%
  Separation costs, impact                                                  
   to margin                                   0.2%                     0.2%
                           ------------------------ ------------------------
Performance Operating                                                       
 Income Margin                        12.7% - 13.3%            13.0% - 13.5%
                           ------------------------ ------------------------
                           ------------------------ ------------------------
                                                                            
Net Income Attributable to                                                  
 Company                                                                    
--------------------------                                                  
                                                                            
Reported Net Income                                                         
 Attributable to Company   $        469.2 - $494.5  $        483.7 - $502.7 
  Streamlining cost, net                                                    
   of tax                                      8.5                     12.8 
  Tax items                                 (200.0)                  (200.0)
  Separation costs, net of                                                  
   tax and separation                                                       
   related taxes                               4.0                      1.0 
                           ------------------------ ------------------------
Performance Net Income                                                      
 Attributable to Company   $        281.7 - $307.0  $        297.5 - $316.5 
                           ------------------------ ------------------------
                           ------------------------ ------------------------
                                                                            
                                                                            
Reported Net Income                                                         
 Attributable to Company                                                    
 per Diluted Common Share  $          7.41 - $7.81  $          7.64 - $7.94 
                                                                            
Performance Net Income                                                      
 Attributable to Company                                                    
 per Diluted Common Share  $          4.45 - $4.85  $          4.70 - $5.00 
                                                                            
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:
WABCO Holdings Inc.
Christian Fife
+1 732 369 7465
christian.fife@wabco-auto.com