On Track For Long-Term Growth
Investor Presentation
January 2016
Forward-Looking Statements
Statements contained in this presentation, which are not historical facts, are
forward-looking statements as that item is defined in the Private Securities
Litigation Reform Act of 1995. This presentation contains forward-looking
statements and certain information contained in this presentation involves risks
and uncertainties that could result in actual results differing materially from
expected results. Forward-looking statements represent the Company’s
expectations and beliefs concerning future events, based on information
available to the Company as of the date of this presentation. The Company
undertakes no obligation to publicly update or revise any forward-looking
statements to reflect events or circumstances that may arise after the date of
this presentation. Additional information regarding these and other factors is
contained in the Company’s SEC filings, including without limitation, the
Company’s Form 10-K and Form 10-Q filings.
Investor Presentation, January 2016
2
A Leading Rail and Industrial
Equipment Supplier . . .
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History dates to 1869 when George Westinghouse revolutionized the rail
industry with the invention of air brakes
Global supplier of highly engineered components and systems for rail and
select industrial markets
Operations in 20 countries; sales in more than 100
Substantial installed base with high barriers to entry
World-Class internal processes based on lean manufacturing and
continuous improvement principles
Diverse revenue base across markets, products and geography
19% EPS CAGR Since 2006
Investor Presentation, January 2016
3
. . . With Successful Track Record
$ millions, unless
indicated
#
2011
2012
2013
2014
9 Mos.
2015
2006
2007
2008
2009
2002
2010
Sales
$1,088
$1,360
$1,575
$1,402
$1,507
$1,968
$2,391
$2,566
$3,044
$ 2,475
Income from
Operations
$ 130
$ 180
$ 213
$ 180
$ 203
$ 281
$ 392
$ 437
$ 527
$
Operating Margin
11.9%
13.2%
13.5%
12.8%
13.5%
14.3%
16.4%
17.0%
17.3%
Net Income
$
85
$ 110
$ 131
$ 115
$ 123
$ 180
$ 252
$ 292
$ 352
$
Diluted EPS from
cont. ops ($)
$ 0.88
$ 1.12
$ 1.34
$ 1.20
$ 1.28
$ 1.86
$ 2.59
$ 3.01
$ 3.62
$ 3.05
Cash from
operations
$ 151
$ 143
$ 159
$ 161
$ 176
$ 249
$ 237
$ 236
$ 472
$
255
Debt net of cash
$ (38)
$ (85)
$ 245
$ 203
$ 185
$ 109
$ 101
$ 165
$
$
243
94
456
18.4%
297
# does not include special items in second quarter
Investor Presentation, January 2016
4
Diversified Revenue Base
69%
12%
Investor Presentation, January 2016
5
Components and Systems
For Freight Rail Rolling Stock…
•
•
•
•
•
Electronics, including PTC
Brake Equipment
Engine Rebuilds
Compressors
Heat Exchangers
• Brake Equipment
• Bogies
• Draft Gears
Investor Presentation, January 2016
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…and Passenger Transit Vehicles
•
•
•
•
•
Electronics
Brake Equipment
Doors
Couplers
Pantographs
• Doors
• Lifts/Ramps
• Heat Exchangers
Investor Presentation, January 2016
7
Compelling Industry Dynamics
•
Worldwide rail supply market exceeds $100 billion, with annual growth of
about 3%
‒ Western Europe, Asia/Pacific, NAFTA represent 75% of market
‒ Largest segment: Rolling Stock
‒ Fastest-growing segment: Outsourced Services
‒ Focus on safety
•
Efficient transportation system/infrastructure essential to global economic
growth in developed, emerging countries
•
Secular trends also driving investment
‒ Awareness of environmental issues/benefits
‒ Urbanization
Source: UNIFE World Rail Market Study 2014
Investor Presentation, January 2016
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Freight
• Overall economic activity (GDP) drives freight traffic
• NAFTA sets technology standards
• Majority of rolling stock outside of NAFTA
• Russian rolling stock market equals size of NAFTA market
Locomotives
Freight Cars
(Global installed base of ~ 110,000)
(Global installed base of ~ 5.2 million)
10%
5%
20%
15%
10%
25%
30%
30%
35%
20%
NAFTA
Asia - Pacific
NAFTA
Asia - Pacific
Russia - CIS
Europe
Russia - CIS
Europe
Other
Other
Source: Wabtec estimates
Investor Presentation, January 2016
9
Passenger Transit
• Overall markets driven by government funding and ridership levels
• Europe/Asia-Pacific set technology standards
• Europe/Asia-Pacific significantly larger than NAFTA
• Higher-speed trends driving technology investments
Transit Cars
(Global installed base of ~ 330,000)
10%
5%
20%
10%
55%
NAFTA
Asia - Pacific
Russia - CIS
Europe
Other
Source: Wabtec estimates
Investor Presentation, January 2016
10
Wabtec’s Vision For the Future…
To average double-digit
EPS growth through
the business cycle
(Actual Performance, 2006-14: 19% CAGR)
Investor Presentation, January 2016
11
Performance-Driven Growth
Strategies
Wabtec Performance System Drives Our
Investment in the Following Strategies:
1. Global and Market Expansion
2. Aftermarket Products and Services
3. New Products and Technologies
4. Acquisitions
Investor Presentation, January 2016
12
Wabtec Performance System
Drives The Business
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Strive to generate more cash from operations than net income
Culture of continuous improvement, combining lean manufacturing, quality and product
development
Reduces costs and improves efficiency to help manage through cycles
Drives cash flow and working capital improvements
Wabtec
Enterprise Value
Kaizen
KPI
S
A
F
E
T
Y
Q
U
A
L
I
T
Y
D
E
L
I
V
E
R
y
C
O
S
T
Wabtec Performance System
P
E
R
F
O
R
M
A
N
C
E
Cash from Operations vs. Net Income ($ in Millions)
400
Customer Satisfaction
Voice of the Customer
PD
500
472
352
300
200
100
0
2006
2007
2008
2009
2010
Cash from Operations
2011
2012
2013
2014
Net Income
Total Employee Involvement
Investor Presentation, January 2016
13
Global and Market Expansion

New geographic platforms through strategic targeting
–Europe, China, Brazil, South Africa, Russia, India

Adjacent markets where we offer competitive advantages
–Now about 15% of sales (power generation and other industrial)
Non-US Sales (dollars in millions): 19% CAGR
1600
1400
1200
1000
800
600
400
200
0
1,507
1,192 1,230
692
645
537
563
370
2006
2007
916
2008
2009
2010
2011
2012
2013
2014
Investor Presentation, January 2016
14
Aftermarket Products and Services
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Focus on less cyclical MRO Segment
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Capitalize on substantial installed base
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Expanding presence globally
Aftermarket Sales (dollars in millions): 16% CAGR
2000
1800
1600
1400
1200
1000
800
600
400
200
0
1,861
1,297
1,465
1,118
572
2006
826
754
2008
2009
689
2007
828
2010
2011
2012
2013
2014
Investor Presentation, January 2016
15
New Products And Technologies...
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Wabtec’s product breadth and engineering expertise provide a unique ability to help
customers use technology to improve safety, productivity and efficiency

More than 600 U.S. patents and more than 2,200 worldwide
– More than 450 filings in last three years
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Active pipeline of upgrades and new products
Tier IV cooling systems, oil-free compressors, electronic braking, signaling and train
control
Investor Presentation, January 2016
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…Such As Positive Train Control
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Positive Train Control (PTC) is a technological breakthrough, and Wabtec leads the
rail industry in its development and deployment
A safety-overlay system that enforces compliance with train movement authorities and
restrictions
Train control mandated in U.S.
Wabtec working with all Class I railroads to develop and deploy system
Acquisitions have added signaling engineering and other capabilities
Current projects create installed base for future aftermarket
Investor Presentation, January 2016
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Acquisitions

Strategic, selective acquisitions in core or adjacent markets that add to Wabtec’s
differentiation and/or help to dampen business cycle

Financial criteria: Goal of accretion in first year, with positive and sustainable impact
on economic profit
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Completed 30+ transactions in the last 8 years, in support of corporate growth
strategies
– Increased content in core markets
– Expanded global footprint
– Established presence in emerging countries
– Strengthened aftermarket capabilities
– Added adjacencies
Investor Presentation, January 2016
18
Compelling Strategic Rationale for
Acquisition of Faiveley Transport
● Transaction re-combines original WABCO Rail divisions to create one of
the world's largest public rail equipment companies with total revenues of
about $4.5 billion in the compelling worldwide freight rail and passenger
transit industry
– Complementary geographies, with minimal overlap
– Diversified end market offering
– Extension of product and service capabilities
– Enhances technology and innovation initiatives
– Expands relationships with blue-chip, global customers
– Synergies to drive growth
Investor Presentation, January 2016
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Synergies to Drive Growth

Expected long-term annual synergies of at least €40 million to be
achieved through:
₋ Supply chain efficiencies
₋ Review of operations for efficiency and cost savings
₋ Leveraging SG&A capabilities
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Complementary geographic presence, products and engineering
activities
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Global scale in freight and transit rail equipment helps drive
operational excellence
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Improves ability to offer safety, productivity and efficiency
enhancements to global rail markets
Investor Presentation, January 2016
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Compelling Industry Dynamics,
Strong Company Fundamentals
• Compelling industry dynamics
– Worldwide rail supply market large and growing
– Efficient transportation system essential to global economic growth
– Secular trends favorable
• Strong company fundamentals
–
–
–
–
–
Market leader with substantial installed base
Diversified revenue model, strong balance sheet and cash flow
Wabtec Performance System drives continuous improvement
Focused growth strategies and capital to invest
Board and Management own 5% equity stake, with incentive
compensation tied to EPS, working capital and economic profit
– 19% EPS CAGR Since 2006
On Track For Long-Term Growth
Investor Presentation, January 2016
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