First Quarter 2019 Earnings Conference Call May 9, 2019 NYSE: TEN - PowerPoint PPT Presentation

First Quarter 2019 Earnings Conference Call May 9, 2019 NYSE: TEN

Safe Harbor Forward-Looking Statements This communication contains forward-looking statements. These forward-looking statements include, but are not limited to, (i) all statements, other than statements of historical fact, included in this communication that address activities, events or developments that we expect or anticipate will or may occur in the future or that depend on future events and (ii) statements about our future business plans and strategy and other statements that describe Tenneco’s outlook, objectives, plans, intentions or goals, and any discussion of future operating or financial performance. These forward-looking statements are included in various sections of this communication and the words “may,” “will,” “believe,” “should,” “could,” “plan,” “expect,” “anticipate,” “estimate,” and similar expressions (and variations thereof) are intended to identify forward-looking statements. Forward-looking statements included in this communication concern, among other things, benefits of the Federal-Mogul acquisition; the combined company’s plans, objectives and expectations (including the proposed separation of DRiV™ from the Powertrain Technology business); future financial and operating results; and other statements that are not historical facts. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to materially differ from those described in the forward-looking statements, including the possibility that the combined company may not complete the spin-off of DRiV from the Powertrain Technology business (or achieve some or all of the anticipated benefits of such a spin-off); the possibility that the transaction may have an adverse impact on existing arrangements with Tenneco, including those related to transition, manufacturing and supply services and tax matters; the ability to retain and hire key personnel and maintain relationships with customers, suppliers or other business partners; the risk that the benefits of the transaction, including synergies, may not be fully realized or may take longer to realize than expected; the risk that the transaction may not advance the combined company’s business strategy; the risk that the combined company may experience difficulty integrating or separating all employees or operations; the potential diversion of Tenneco management’s attention resulting from the transaction; as well as the risk factors and cautionary statements included in Tenneco’s periodic and current reports (Forms 10-K, 10-Q and 8-K) filed from time to time with the SEC. Given these risks and uncertainties, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Unless otherwise indicated, the forward- looking statements in this release are made as of the date of this communication, and, except as required by law, Tenneco does not undertake any obligation, and disclaims any obligation, to publicly disclose revisions or updates to any forward-looking statements. In addition, please see Tenneco’s financial results press release for factors that could cause Tenneco’s future performance to vary from the expectations expressed or implied by the forward-looking statements herein. 2 TENNECO INC. Q1 2019 EARNINGS

Agenda 1. First Quarter Overview Roger Wood, Co-CEO 2. Segment Results & Financial Overview Ron Hundzinski, EVP Finance; Jason Hollar, CFO 3. Updated Outlook Brian Kesseler, Co-CEO 4. Q&A Non-GAAP and Pro Forma Results: Please see the tables that reconcile GAAP results with non-GAAP and pro forma results at the end of this presentation and in Tenneco’s financial results press release, which is incorporated herein by reference. Pro forma results include the Federal-Mogul acquisition in prior periods. Prior Period Revisions: Financial results for the first quarter of 2018 have been revised for certain immaterial adjustments, which will be further discussed in Tenneco's Form 10-Q for the quarter ended March 31, 2019. EBITDA EBITDA for purposes of this presentation means EBITDA including noncontrolling interests. 3 TENNECO INC. Q1 2019 EARNINGS

Q1 2019 Highlights • Q1 revenue of $4.5B – On a pro forma basis, +1%* organic increase YOY • New Tenneco won two • New Tenneco: +3%* YOY; DRIV -3%* YOY • Light vehicle: +1%; CTOH +7%; Aftermarket -8% Automotive News PACE awards – Currency was a -5% headwind – Piston materials • VA Adjusted EBITDA margin of 8.7%, -150bp* YOY – Engine software simulation • Adjusted EPS of $0.52, compared to $1.62 last year • Rebalancing the DRiV™ portfolio Q1 2019 Q1 2018* YOY B/(W) – Focused on advanced technology, closed the Öhlins acquisition Revenue $4,484M $4,680M -4% – Sold the Federal-Mogul wipers business VA Revenue $3,778M $4,028M -6% VA Adj. EBITDA Margin 8.7% 10.2% -150bp * Pro Forma revenue and earnings growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods Revenue in line with Q1 guidance, impacted by currency and industry headwinds 4 TENNECO INC. Q1 2019 EARNINGS

Q1 New Tenneco Performance • Value add revenues were $2.25B, flat (1) YOY at constant currency – Light vehicle revenues -2% (1) vs. -7% global light vehicle production – CTOH revenues +7% (1) • Adjusted EBITDA was $236M, -17%* YOY – VA Adj. EBITDA margin was 10.5% vs. 12.1% in Q1 2018 $ millions Revenue (1) Adjusted EBITDA (1) Pro Forma $2,364 $285 Pro Forma $2,248 Pro Forma $236 -$35 -$14 12.1% 10.5% 10.5% (1) Pro Forma revenue and EBITDA growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods. * On a pro forma basis 5 TENNECO INC. Q1 2019 EARNINGS

Q1 Clean Air Segment Performance • Value add revenues were $1.07B, +2% (1) YOY – Light vehicle revenues flat (1) vs. -7% global light vehicle production – CTOH revenues +9% (1) • Adjusted EBITDA was $140M, -13%* YOY – VA Adj. EBITDA margin was 13.1% vs. 14.5% in Q1 2018 $ millions Adjusted EBITDA (1) Revenue (1) $18 $1,104 $160 $1,073 Pro Forma Pro Forma $140 -$49 -$14 -$6 14.5% 13.1% 13.0% (1) Pro Forma revenue and EBITDA growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods. * On a pro forma basis 6 TENNECO INC. Q1 2019 EARNINGS

Q1 Powertrain Segment Performance • Value add revenues were $1.18B, -2% (1) YOY – Light vehicle revenues -5% (1) vs. -7% global light vehicle production – CTOH/Industrial revenues +5.5% (1) • Adjusted EBITDA was $116M, -17%* YOY – VA Adj. EBITDA margin was 9.9% vs. 11.1% in Q1 2018 $ millions Revenue (1) Adjusted EBITDA (1) Pro Forma Pro Forma $140 $1,260 $1,175 Pro Forma Pro Forma $116 -$16 -$8 11.1% 9.9% (1) Pro Forma revenue and EBITDA growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods. * On a pro forma basis 7 TENNECO INC. Q1 2019 EARNINGS

Q1 DRiV™ Performance $ millions Revenue (1) OE CTOH $1,664 8% Aftermarket Pro Forma $1,530 52% Q1 2019 Revenue by OE Light Product Application Vehicle 40% Other (2) Q1 18 Ride Perf. Q1 19 Motorparts Currency Volume Volume & Mix & Mix Adjusted EBITDA (1) $127 Revenue $1,530M, -3% (1) ; Adj. EBITDA 5.9%, -170 bps * Pro Forma • Motorparts (AM) revenue $797M, -8% (1) $91 • Ride Performance (OE) revenue $733M, +2% (1) • DRiV Corporate expense $30M, down $2M YOY* 7.6% 5.9% (1) Pro Forma revenue and EBITDA growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods. Motorparts Ride Perf. Operating Q1 18 Q1 19 Currency (2) Includes portfolio changes including Öhlins acquisition and sale of Wipers business during Q1 2019 . Volume Performance (2) Volume * On a pro forma basis & Mix & Mix 8 TENNECO INC. Q1 2019 EARNINGS

Q1 Motorparts Segment Performance $ millions Revenue (1) APAC $903 7% Pro Forma $797 EMEA 25% Q1 2019 Revenue by region Q1 18 Q1 19 Volume & Mix Other (2) Currency Americas 68% Adjusted EBITDA (1) Revenue $797M, -8% (1) ; Adj. EBITDA 11.3%, -70 bps* $108 • Market (OTD) sales down in all categories -9% (1) Americas • New business recapture of two NA buying groups $90 Pro Forma • Overall soft market conditions -7% (1) EMEA • Acquisition driven inventory consolidations +5% (1) APAC • Growth in China and India Volume & Mix Operating Currency 12.0% 11.3% Performance (2) Q1 18 Q1 19 (1) Pro Forma revenue and EBITDA growth is measured at 2018 constant currency rates and includes FM acquisition in prior periods. (2) Includes portfolio changes including the sale of Wipers business during Q1 2019 . * On a pro forma basis 9 TENNECO INC. Q1 2019 EARNINGS