Strictly Private and Confidential

August 12, 2015

Updated Product Portfolio

Mahle-Delphi Competitor Analysis

At A Glance

Acquired Delphi’s Thermal branch with focus on

compressors

Expanded portfolio combined with Delphi

increases revenue shares and sales

Mahle’s new technology trends have increased

acquisitions and customer base

Mahle’s Most Recent Innovations

The New Mahle

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Contents

• Acquisition Press Release

• Delphi Compressor Overview

• Mahle Product Portfolio Overview

– Detailed Descriptions/Analysis

• Expanding Research and Locations

• New Business/Technology

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Introduction – Press Release

Significance: MAHLE places particular importance on Delphi Thermal’s compressor

business, which has thus far been missing from its own range. It will now be rapidly

integrated into the group as a new unit. Air conditioning, powertrain cooling, and heat

exchangers for stationary applications, however, will become part of the Thermal

Management business unit.

13 Delphi Thermal production plants in Poland, Slovakia, Hungary, the United States,

Mexico, Brazil, China, and India, as well as three major research and development

centers in the United States and Luxembourg have now been added to the group’s

approximately 150 production locations.

MAHLE anticipates total sales of around EUR 11.5 billion for 2015 provided that the

global economic situation remains stable.

View full release here

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Delphi CVC Compressors

• Compressors are an area where Mahle most lacked and one of the main reasons for

the acquisition.

• Delphi Compact Variable Compressors (now manufactured and sold by Mahle) are

based on a swash plate simple harmonic motion mechanism.

• Variable displacement design provides:

– Smooth, continuous operation

– Improved operator comfort

– Improved fuel economy

– Improved dehumidification

• Compact design, better packaging, and lower mass

– Lower mass enhances fuel economy improvement

– Smaller diameter, shorter length for easier installation

• View full article here

5 Source: delphi.com

Mahle-Delphi Joint Revenue Share

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Delphi’s compressors add to Mahle’s dominance

Compressors Cont.

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CVC Compressor

Mahle Product Portfolio Overview

HVAC Evaporators Heat Cores PTC Aux Heaters

Blowers Cabin Air Filters Condensers Climate Controls

Vents Fragrance Systems 8

HVAC

• “Our HVAC modules are tailor-made to the specifications of vehicle manufacturers.

Continuous improvements in efficiency, reductions in weight and pressure loss, as

well as the further optimization of acoustics are among our key development

objectives. Standardized components and design features help us to economically

develop and produce robust and high-performance HVAC modules.”

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All quotes from Mahle website

Evaporators

• “Our flat tube evaporators deliver high performance in spite of their compact and

lightweight design. Our patented BehrOxal® coating technology modifies the

aluminum surface such that it assumes hydrophilic properties. As a result, water runs

off more easily, enabling the evaporator to dry more quickly. This makes the

evaporator more resistant to corrosion and less prone to unpleasant odors.”

• Click here for more information

• Features:

– Continuous climate comfort in the summer even during the motor-stop phases

– Helps saves fuel without a noticeable loss of comfort in the motor-stop phases

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PTC Auxiliary Heaters

• “High-voltage PTC heaters provide a solution for plug-in hybrids, electric vehicles with

range extenders, and all-electric vehicles. In these cases, the powertrain does not

generate sufficient waste heat in the electric drive mode to warm up the vehicle cabin.

A powertrain-independent heating system capable of delivering up to 7 kW is required

to ensure an adequate supply of heat. The high-voltage PTC heater is an energy-

efficient, compact, and safe solution for heating the cabins of electric vehicles.”

• Click here for more detailed information (doesn’t work well with IE)

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Cabin Air Filters

• “All MAHLE cabin air filters are distinguished by low pressure loss and long service

life. The filter media used offer a large effective surface and filter even smallest

particles such as soot particles.

The latest generation of MAHLE filter media offers very good soot particle retention

and can be used regardless of the direction of flow. The measures that were

previously necessary to ensure correct installation orientation can thus be eliminated.”

• Click here for more information

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Climate Controls

• “The PHYSIO-CONTROL® climate control system represents today’s most advanced

technology in terms of cabin comfort. This system offers customized air conditioning

based on individually selectable climate settings, i.e., fresh or neutral, variable

temperature distribution between footwell and head area, as well as variable and

individually adjustable air flow.

Our joint venture Behr-Hella Thermocontrol develops the necessary control

electronics for this system as well as the matching HVAC control heads that serve as

an interface between operator and vehicle.”

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“Comfort” Vent

• “Unlike traditional vents, the patented “comfort vent” has not one, but two air ducts: a

helical diffused-flow duct and a centered spot-flow duct. The geometry of the diffuse

duct generates a swirl effect, spreading the flow over a wide area and creating a

‘cloud’ of air within the vehicle cabin. Instead of having an irritating effect on the

vehicle occupants, this is experienced as a diffuse, draft-free air flow. In contrast, the

spot-flow duct in the center provides a highly focused and precisely directed current of

air.

The vehicle occupants can mix and match these two types of air flow according to the

conditions and their personal comfort preferences, creating multiple ventilation

options:

– Draft-free ventilation: air flows through the diffuse duct and is spread over a wide

area.

– Direct ventilation: air passes through the spot duct, allowing a very direct flow

focused on a particular area.

– Traditional ventilation setting: a combination of diffuse and focused air flow,

corresponding to that of a conventional vent.”

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•Among leaders in new technology (R744, coatings, cold storage evaporators, battery cooling, etc.)

•Close ties to Daimler with technology pull

•2013 Behr acquisition created powertrain cooling synergies

•Good reputation for execution and delivery

Mahle

•“Me-Too” products

•Powertrain cooling well represented at GM

•Brings compressor to Mahle

•Weak in HVAC technology

Delphi

Technology

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Indirect Cooling for Heavy Truck

Induction-based Coolant Heater

Heat Storage Unit With Plastic Housing

Unitary Heat Pump

Mahle Has PTC and HVAC Technology – Delphi Brings Compressor

Variable Compressor

Li-ion Battery Cooling

Cold Storage Evaporator

Source: Mahle and Delphi website, annual report 2013; ATZ.

Expanding Research and Locations

• In 2014, MAHLE’s research and development (R&D) expenses totaled EUR552.3

million (USD671.3 million, 31 December 2014), up 64.3% y/y from EUR336.2 million

(USD462.8 million, 31 December 2013) in the previous year. R&D expenses as

percentage of sales correspondingly increased from 4.8% in 2013 to 5.6% in 2014.

• In May 2015, MAHLE acquired all shares of Amovis GmbH. The acquired company,

based in Berlin (Germany), specializes in Heat Recovery Systems (HRS) using the

organic ranking cycle (ORC). Amovis was founded in 2003 and currently has 25

employees. The acquisition is expected to strengthen MAHLE's expertise in exhaust

gas heat recovery systems using ORC. The ORC system is an advanced

development of the steam cycle, in which the waste heat from the combustion engines

is utilized to generate electrical or mechanical energy. This, in turn, helps reduce fuel

consumption and CO2 emissions.

• In June 2015, MAHLE opened another manufacturing plant in Celaya (Mexico). The

company invested USD19 million in the 193,000 square foot plant, which is part of its

Filtration and Engine Peripherals business unit. The plant will produce air cleaner

systems, air ducts, air intake manifolds and carbon canisters for its customers in

Mexico. The plant is expected to employ 450 people by 2019.

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Mahle is rapidly expanding in many areas

Source, IHS

New Business Cont.

• Volkswagen nominates 44 suppliers for collaboration

– Volkswagen Group has nominated the first 44 suppliers who will be collaborating

on a new common strategic level under the joint FAST (Future Automotive

Supply Tracks) initiative.

– The suppliers were chosen for their performance in their respective fields of

competence based on a systematic selection process.

– Mahle was chosen for HVAC

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New Technology

• MAHLE develops control software to monitor battery consumption in PHEV

– MAHLE has developed a control software that helps manage battery energy consumption in a plug-in hybrid vehicle (PHEV), saying says the control software can manage battery energy consumption through a combination of GPS (global positioning systems) and topographical road data. MAHLE says GPS provides the knowledge about the route before start of a journey, which helps the software to calculate the available battery power during a trip.

• Energy Efficiency Impact of Localized Cooling/Heating for Electric Vehicle

– The present paper reports on a study of the HVAC energy usage for an EREV (extended range electric vehicle) implementation of a localized cooling/heating system. Components in the localized system use thermoelectric (TE) devices to target the occupant's chest, face, lap and foot areas. A novel contact TE seat was integrated into the system. Human subject comfort rides and a thermal manikin in the tunnel were used to establish equivalent comfort for the baseline and localized system. The tunnel test results indicate that, with the localized system, HVAC energy savings of 37% are achieved for cooling conditions (ambient conditions greater than 10 °C) and 38% for heating conditions (ambient conditions less than 10 °C), respectively based on an annualized ambient and vehicle occupancy weighted method. The driving range extension for an electric vehicle was also estimated based on the HVAC energy saving

18 Source, IHS

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