Tenneco 8K Announces Organizational Changes | TEN 14 Feb 13

Exhibit 99.1


news release

TENNECO ANNOUNCES ORGANIZATIONAL CHANGES

Company Establishes Clean Air and Ride Performance Divisions

February 14, 2013, Lake Forest, Illinois – Tenneco Inc. (NYSE: TEN) today announced organizational changes that will align its businesses along product lines to support the company’s plans for revenue and earnings growth and its longer-term strategic vision. The company has established a Clean Air division, which includes Tenneco’s emissions control businesses, and a Ride Performance division, comprised of its ride control businesses.

These organizational shifts will help drive greater integration across regions and a more focused strategic approach for each product line, all designed to further drive growth and profit improvement opportunities unique to each business.

Neal Yanos, executive vice president, has been appointed to lead the Clean Air division and Josep Fornos, executive vice president, will lead the Ride Performance division. The appointments are effective immediately and both divisions will report to Hari Nair, chief operating officer. The South America, India and Asia Pacific regions will align strategically with the Clean Air and Ride Performance divisions and report operationally to Nair.

“Today’s announcement brings even greater focus on our product lines as we continue to execute distinct strategies for each business and drive profitable growth,” said Gregg Sherrill, chairman and CEO, Tenneco. “In Clean Air, Tenneco is well-positioned to build on our current light and commercial vehicle success and increase our focus on a broad range of regulatory-driven opportunities in other industries. I am equally excited about Ride Performance as we take a strategic approach that will unleash new opportunities by leveraging product cost and functionality leadership, commercializing advanced technologies and continuing to build on our leading aftermarket positions with our powerful brands.”

In line with the organizational changes announced today, the company’s financial reporting segments will change as noted in the attachments. Tenneco’s new reporting segments will now be comprised of the three current geographical segments split along product lines. The six new reporting segments are Clean Air North America; Clean Air Europe, South America and India; Clean Air Asia Pacific; Ride Performance North America; Ride Performance Europe, South America and India; and Ride Performance Asia Pacific.

Tenneco is hosting an investor meeting in New York today, February 14, beginning at 1:30 pm Eastern time. Senior management will review the company’s long-term strategic vision, business operations and revenue guidance. The webcast can be accessed by going to the financial/investor section of the company’s website at www.tenneco.com.

Tenneco is a $7.4 billion global manufacturing company with headquarters in Lake Forest, Illinois and more than 24,000 employees worldwide. Tenneco is one of the world’s largest designers, manufacturers and marketers of clean air and ride performance products and systems for automotive and commercial vehicle original equipment markets and the aftermarket. Tenneco’s principal brand names are Monroe®, Walker® , XNOx™ and Clevite®Elastomer.

-More-

This press release contains forward-looking statements. Words such as “may,” “expects,” “anticipate,” “projects,” “will,” and “outlook” and similar expressions identify forward-looking statements. These forward-looking statements are based on the current expectations of the company (including its subsidiaries). Because these forward-looking statements involve risks and uncertainties, the company’s plans, actions and actual results could differ materially. Among the factors that could cause these plans, actions and results to differ materially from current expectations are:

(i) general economic, business and market conditions;

(ii) the company’s ability to source and procure needed materials, components and other products and services in accordance with customer demand and at competitive prices;

(iii) changes in capital availability or costs, including increases in the company’s costs of borrowing (i.e., interest rate increases), the amount of the company’s debt, the ability of the company to access capital markets at favorable rates, and the credit ratings of the company’s debt;

(iv) changes in consumer demand, prices and the company’s ability to have our products included on top selling vehicles, including any shifts in consumer preferences to lower margin vehicles, for which we may or may not have supply arrangements;

(v) changes in automotive and commercial vehicle manufacturers’ production rates and their actual and forecasted requirements for the company’s products such as the significant production cuts during recent years by automotive manufacturers in response to difficult economic conditions;

(vi) the overall highly competitive nature of the automobile and commercial vehicle parts industries, and any resultant inability to realize the sales represented by the company’s awarded book of business which is based on anticipated pricing and volumes over the life of the applicable program;

(vii) the loss of any of our large original equipment manufacturer (“OEM”) customers (on whom we depend for a substantial portion of our revenues), or the loss of market shares by these customers if we are unable to achieve increased sales to other OEMs or any change in customer demand due to delays in the adoption or enforcement of worldwide emissions regulations;

(viii) workforce factors such as strikes or labor interruptions;

(ix) increases in the costs of raw materials, including the company’s ability to successfully reduce the impact of any such cost increases through materials substitutions, cost reduction initiatives, customer recovery and other methods;

(x) the negative impact of higher fuel prices on transportation and logistics costs, raw material costs and discretionary purchases of vehicles or aftermarket products;

(xi) the cyclical nature of the global vehicular industry, including the performance of the global aftermarket sector and longer product lives of automobile parts;

(xii) the company’s continued success in cost reduction and cash management programs and its ability to execute restructuring and other cost reduction plans and to realize anticipated benefits from these plans;

(xiii) product warranty costs;

(xiv) the cost and outcome of existing and any future legal proceedings;

(xv) economic, exchange rate and political conditions in the countries where we operate or sell our products;

(xvi) the company’s ability to develop and profitably commercialize new products and technologies, and the acceptance of such new products and technologies by the company’s customers and the market;

(xvii) changes by the Financial Accounting Standards Board or other accounting regulatory bodies to authoritative generally accepted accounting principles or policies;

(xviii) changes in accounting estimates and assumptions, including changes based on additional information;

-2-

(xix) governmental actions, including the ability to receive regulatory approvals and the timing of such approvals, as well as the impact of the enforcement of, changes to or compliance with laws and regulations, including those pertaining to environmental concerns, pensions or other regulated activities;

(xx) natural disasters, acts of war and/or terrorism and the impact of these occurrences or acts on economic, financial, industrial and social condition, including, without limitation, with respect to supply chains and customer demand in the countries where the company operates; and

(xxi) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances beyond the control of the company and its subsidiaries.

The company undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this press release. Additional information regarding these risk factors and uncertainties is detailed from time to time in the company’s SEC filings, including but not limited to its report on Form 10-K for the year ended December 31, 2011.

###

Contacts:

Linae Golla

Investor inquiries

847 482-5162 (o)

224 632-0986 (c)

lgolla@tenneco.com

Bill Dawson

Media inquiries

847 482-5807 (o)

224 280-4308 (c)

bdawson@tenneco.com

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TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

10-Q SEGMENT DATA

Unaudited

(Millions)


	Q1 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia						Reclass
	America		SA & India		Pacific		America		SA & India		Pacific			Other			& Elims			Total
Revenues from external customers	$	669	$	460	$	156	$	317	$	272	$	38		$	—		$	—		$	1,912
Intersegment revenues		4		30		—		2		14		8			—			(58	)		—

EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		48		16		12		35		10		(2	)		(23	)		—			96
Total assets		1,037		808		396		570		625		185			—			30			3,651

	Q2 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia						Reclass
	America		SA & India		Pacific		America		SA & India		Pacific			Other			& Elims			Total
Revenues from external customers	$	671	$	434	$	169	$	325	$	276	$	45		$	—		$	—		$	1,920
Intersegment revenues		1		29		—		3		14		8			—			(55	)		—

EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		57		20		18		37		16		2			(13	)		—			137
Total assets		1,021		804		384		595		604		190			—			29			3,627

	Q3 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia						Reclass
	America		SA & India		Pacific		America		SA & India		Pacific			Other			& Elims			Total
Revenues from external customers	$	592	$	414	$	179	$	299	$	245	$	49		$	—		$	—		$	1,778
Intersegment revenues		1		21		—		3		11		7			—			(43	)		—

EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		48		7		20		35		10		3			(12	)		—			111
Total assets		1,069		820		401		617		582		202			—			11			3,702

	Q4 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia						Reclass
	America		SA & India		Pacific		America		SA & India		Pacific			Other			& Elims			Total
Revenues from external customers	$	574	$	418	$	190	$	272	$	248	$	51		$	—		$	—		$	1,753
Intersegment revenues		—		21		1		2		14		7			—			(45	)		—

EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		49		11		21		15		5		2			(19	)		—			84
Total assets		1,028		725		435		592		600		202			—			24			3,606

We are a global manufacturer managed and organized along our two major product lines (emissions control and ride control) and three geographic areas (North America (“NA”); Europe, South America and India (“ESI”); and Asia Pacific (“AP”)), resulting in six operating segments (NA Clean Air, NA Ride Performance, ESI Clean Air, ESI Ride Performance, AP Clean Air and AP Ride Performance). Within each geographical area, each operating segment manufactures and distributes either ride control or emission control products primarily for the automotive industry. Each of the six operating segments constitutes a reportable segment. Costs related to other business activities, primarily corporate headquarter functions, are disclosed separately from the six operating segments. We evaluate segment performance based primarily on earnings before interest expense, income taxes, and noncontrolling interests. Products are transferred between segments and geographic areas on a basis intended to reflect as nearly as possible the “market value” of the products.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

10-K SEGMENT DATA

Unaudited

(Millions)


	FY 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,			Asia						Reclass
	America		SA & India		Pacific		America		SA & India			Pacific			Other			& Elims			Total
Revenues from external customers	$	2,506	$	1,726	$	694	$	1,213	$	1,041		$	183		$	—		$	—		$	7,363
Intersegment revenues		6		101		1		10		53			30			—			(201	)		—
Interest income		—		1		1		—		—			—			—			—			2
Depreciation and amortization of intangibles		58		43		18		30		48			8			—			—			205
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		202		54		71		122		41			5			(67	)		—			428
Total assets		1,028		725		435		592		600			202			—			24			3,606
Equity in net assets of unconsolidated affiliates		—		8		—		—		—			—			—			—			8
Expenditures for plant, property and equipment		76		56		40		46		32			13			—			—			263
Noncash items other than depreciation and amortization		7		2		—		4		(2	)		—			—			—			11

	FY 2011
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,			Asia						Reclass
	America		SA & India		Pacific		America		SA & India			Pacific			Other			& Elims			Total
Revenues from external customers	$	2,288	$	1,849	$	624	$	1,126	$	1,164		$	154		$	—		$	—		$	7,205
Intersegment revenues		3		104		—		9		52			26			—			(194	)		—
Interest income		—		1		1		—		2			—			—			—			4
Depreciation and amortization of intangibles		60		47		16		30		45			9			—			—			207
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		172		79		47		76		69			(6	)		(58	)		—			379
Total assets		889		719		386		530		607			181			—			25			3,337
Equity in net assets of unconsolidated affiliates		—		9		—		—		—			—			—			—			9
Expenditures for plant, property and equipment		49		55		24		39		40			11			—			—			218
Noncash items other than depreciation and amortization		5		11		2		1		1			9			—			—			29

	FY 2010
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,			Asia						Reclass
	America		SA & India		Pacific		America		SA & India			Pacific			Other			& Elims			Total
Revenues from external customers	$	1,810	$	1,473	$	542	$	1,011	$	973		$	128		$	—		$	—		$	5,937
Intersegment revenues		3		89		1		8		59			27			—			(187	)		—
Interest income		—		1		1		—		2			—			—			—			4
Depreciation and amortization of intangibles		66		46		14		37		45			8			—			—			216
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)		114		50		53		87		55			3			(81	)		—			281
Total assets		775		688		348		506		649			177			—			24			3,167
Equity in net assets of unconsolidated affiliates		—		9		—		—		—			—			—			—			9
Expenditures for plant, property and equipment		37		44		24		22		22			5			—			—			154
Noncash items other than depreciation and amortization		3		6		—		1		—			—			—			—			10

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE TO NON-GAAP REVENUE MEASURES⁽²⁾

Unaudited

(Millions)


	Q1 2012
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	669	$	277	$	392
Europe, South America & India		460		153		307
Asia Pacific		156		26		130

Total Clean Air Division		1,285		456		829

Ride Performance Division
North America		317		—		317
Europe, South America & India		272		—		272
Asia Pacific		38		—		38

Total Ride Performance Division		627		—		627

Total Tenneco Inc.	$	1,912	$	456	$	1,456


	Q2 2012
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	671	$	269	$	402
Europe, South America & India		434		137		297
Asia Pacific		169		23		146

Total Clean Air Division		1,274		429		845

Ride Performance Division
North America		325		—		325
Europe, South America & India		276		—		276
Asia Pacific		45		—		45

Total Ride Performance Division		646		—		646

Total Tenneco Inc.	$	1,920	$	429	$	1,491


	Q3 2012
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	592	$	227	$	365
Europe, South America & India		414		139		275
Asia Pacific		179		20		159

Total Clean Air Division		1,185		386		799

Ride Performance Division
North America		299		—		299
Europe, South America & India		245		—		245
Asia Pacific		49		—		49

Total Ride Performance Division		593		—		593

Total Tenneco Inc.	$	1,778	$	386	$	1,392


	Q4 2012
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	574	$	224	$	350
Europe, South America & India		418		141		277
Asia Pacific		190		24		166

Total Clean Air Division		1,182		389		793

Ride Performance Division
North America		272		—		272
Europe, South America & India		248		—		248
Asia Pacific		51		—		51

Total Ride Performance Division		571		—		571

Total Tenneco Inc.	$	1,753	$	389	$	1,364

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from substrate sales, which include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before this factor. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE TO NON-GAAP REVENUE MEASURES⁽²⁾

Unaudited

(Millions)


	FY 2012
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	2,506	$	997	$	1,509
Europe, South America & India		1,726		570		1,156
Asia Pacific		694		93		601

Total Clean Air Division		4,926		1,660		3,266

Ride Performance Division
North America		1,213		—		1,213
Europe, South America & India		1,041		—		1,041
Asia Pacific		183		—		183

Total Ride Performance Division		2,437		—		2,437

Total Tenneco Inc.	$	7,363	$	1,660	$	5,703


	FY 2011
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	2,288	$	971	$	1,317
Europe, South America & India		1,849		597		1,252
Asia Pacific		624		110		514

Total Clean Air Division		4,761		1,678		3,083

Ride Performance Division
North America		1,126		—		1,126
Europe, South America & India		1,164		—		1,164
Asia Pacific		154		—		154

Total Ride Performance Division		2,444		—		2,444

Total Tenneco Inc.	$	7,205	$	1,678	$	5,527


	FY 2010
			Substrate		Value-add
	Revenues		Sales		Revenues
Clean Air Division
North America	$	1,810	$	739	$	1,071
Europe, South America & India		1,473		427		1,046
Asia Pacific		542		118		424

Total Clean Air Division		3,825		1,284		2,541

Ride Performance Division
North America		1,011		—		1,011
Europe, South America & India		973		—		973
Asia Pacific		128		—		128

Total Ride Performance Division		2,112		—		2,112

Total Tenneco Inc.	$	5,937	$	1,284	$	4,653

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ TO NON-GAAP EARNINGS MEASURES⁽²⁾

Unaudited

(Millions)


	Q1 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	48	$	16	$	12	$	35		$	10	$	(2	)	$	(23	)	$	96
Restructuring and related expenses		—		—		—		—			1		—			—			1

Adjusted EBIT	$	48	$	16	$	12	$	35		$	11	$	(2	)	$	(23	)	$	97


	Q2 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	57	$	20	$	18	$	37		$	16	$	2		$	(13	)	$	137
Restructuring and related expenses		—		1		—		—			1		—			—			2

Adjusted EBIT	$	57	$	21	$	18	$	37		$	17	$	2		$	(13	)	$	139


	Q3 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	48	$	7	$	20	$	35		$	10	$	3		$	(12	)	$	111
Restructuring and related expenses		—		4		—		—			3		—			—			7
Pullman recoveries		—		—		—		(5	)		—		—			—			(5	)

Adjusted EBIT	$	48	$	11	$	20	$	30		$	13	$	3		$	(12	)	$	113


	Q4 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	49	$	11	$	21	$	15		$	5	$	2		$	(19	)	$	84
Restructuring and related expenses		—		2		—		1			—		—			—			3
Asset impairment charge		—		—		—		—			7		—			—			7

Adjusted EBIT	$	49	$	13	$	21	$	16		$	12	$	2		$	(19	)	$	94

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ TO NON-GAAP EARNINGS MEASURES⁽²⁾

Unaudited

(Millions)


	FY 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	202	$	54	$	71	$	122		$	41	$	5		$	(67	)	$	428
Restructuring and related expenses		—		7		—		1			5		—			—			13
Asset impairment charge		—		—		—		—			7		—			—			7
Pullman recoveries		—		—		—		(5	)		—		—			—			(5	)

Adjusted EBIT	$	202	$	61	$	71	$	118		$	53	$	5		$	(67	)	$	443


	FY 2011
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	172	$	79	$	47	$	76		$	69	$	(6	)	$	(58	)	$	379
Restructuring and related expenses		—		3		2		2			—		1			—			8
Goodwill impairment charge		—		—		1		—			—		10			—			11

Adjusted EBIT	$	172	$	82	$	50	$	78		$	69	$	5		$	(58	)	$	398


	FY 2010
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North			Europe,		Asia
	America		SA & India		Pacific		America			SA & India		Pacific			Other			Total
EBIT	$	114	$	50	$	53	$	87		$	55	$	3		$	(81	)	$	281
Restructuring and related expenses		3		3		1		11			—		1			—			19
Pension charge		4		—		—		2			—		—			—			6

Adjusted EBIT	$	121	$	53	$	54	$	100		$	55	$	4		$	(81	)	$	306

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE AND EARNINGS TO NON-GAAP REVENUE AND EARNINGS MEASURES⁽²⁾

Unaudited

(Millions except percents)


	Q1 2012
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	669		$	460		$	156		$	317		$	272		$	38		$	—		$	1,912

Less: Substrate sales		277			153			26			—			—			—			—			456

Value-add revenues	$	392		$	307		$	130		$	317		$	272		$	38		$	—		$	1,456

EBIT	$	48		$	16		$	12		$	35		$	10		$	(2	)	$	(23	)	$	96

EBIT as a % of revenue		7.2	%		3.5	%		7.7	%		11.0	%		3.7	%		-5.3	%					5.0	%
EBIT as a % of value-add revenue		12.2	%		5.2	%		9.2	%		11.0	%		3.7	%		-5.3	%					6.6	%

Adjusted EBIT	$	48		$	16		$	12		$	35		$	11		$	(2	)	$	(23	)	$	97

Adjusted EBIT as a % of revenue		7.2	%		3.5	%		7.7	%		11.0	%		4.0	%		-5.3	%					5.1	%
Adjusted EBIT as a % of value-add revenue		12.2	%		5.2	%		9.2	%		11.0	%		4.0	%		-5.3	%					6.7	%

	Q2 2012
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	671		$	434		$	169		$	325		$	276		$	45		$	—		$	1,920

Less: Substrate sales		269			137			23			—			—			—			—			429

Value-add revenues	$	402		$	297		$	146		$	325		$	276		$	45		$	—		$	1,491

EBIT	$	57		$	20		$	18		$	37		$	16		$	2		$	(13	)	$	137

EBIT as a % of revenue		8.5	%		4.6	%		10.7	%		11.4	%		5.8	%		4.4	%					7.1	%
EBIT as a % of value-add revenue		14.2	%		6.7	%		12.3	%		11.4	%		5.8	%		4.4	%					9.2	%

Adjusted EBIT	$	57		$	21		$	18		$	37		$	17		$	2		$	(13	)	$	139

Adjusted EBIT as a % of revenue		8.5	%		4.8	%		10.7	%		11.4	%		6.2	%		4.4	%					7.2	%
Adjusted EBIT as a % of value-add revenue		14.2	%		7.1	%		12.3	%		11.4	%		6.2	%		4.4	%					9.3	%

	Q3 2012
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	592		$	414		$	179		$	299		$	245		$	49		$	—		$	1,778

Less: Substrate sales		227			139			20			—			—			—			—			386

Value-add revenues	$	365		$	275		$	159		$	299		$	245		$	49		$	—		$	1,392

EBIT	$	48		$	7		$	20		$	35		$	10		$	3		$	(12	)	$	111

EBIT as a % of revenue		8.1	%		1.7	%		11.2	%		11.7	%		4.1	%		6.1	%					6.2	%
EBIT as a % of value-add revenue		13.2	%		2.5	%		12.6	%		11.7	%		4.1	%		6.1	%					8.0	%

Adjusted EBIT	$	48		$	11		$	20		$	30		$	13		$	3		$	(12	)	$	113

Adjusted EBIT as a % of revenue		8.1	%		2.7	%		11.2	%		10.0	%		5.3	%		6.1	%					6.4	%
Adjusted EBIT as a % of value-add revenue		13.2	%		4.0	%		12.6	%		10.0	%		5.3	%		6.1	%					8.1	%

	Q4 2012
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	574		$	418		$	190		$	272		$	248		$	51		$	—		$	1,753

Less: Substrate sales		224			141			24			—			—			—			—			389

Value-add revenues	$	350		$	277		$	166		$	272		$	248		$	51		$	—		$	1,364

EBIT	$	49		$	11		$	21		$	15		$	5		$	2		$	(19	)	$	84

EBIT as a % of revenue		8.5	%		2.6	%		11.1	%		5.5	%		2.0	%		3.9	%					4.8	%
EBIT as a % of value-add revenue		14.0	%		4.0	%		12.7	%		5.5	%		2.0	%		3.9	%					6.2	%

Adjusted EBIT	$	49		$	13		$	21		$	16		$	12		$	2		$	(19	)	$	94

Adjusted EBIT as a % of revenue		8.5	%		3.1	%		11.1	%		5.9	%		4.8	%		3.9	%					5.4	%
Adjusted EBIT as a % of value-add revenue		14.0	%		4.7	%		12.7	%		5.9	%		4.8	%		3.9	%					6.9	%

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

Tenneco presents the above reconciliation of revenues in order to reflect EBIT as a percent of both total revenues and value-add revenues. Substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Further, presenting EBIT as a percent of value-add revenue assists investors in evaluating our company’s operational performance without the impact of such substrate sales.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE AND EARNINGS TO NON-GAAP REVENUE AND EARNINGS MEASURES⁽²⁾

Unaudited

(Millions except percents)


	FY 2012
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	2,506		$	1,726		$	694		$	1,213		$	1,041		$	183		$	—		$	7,363

Less: Substrate sales		997			570			93			—			—			—			—			1,660

Value-add revenues	$	1,509		$	1,156		$	601		$	1,213		$	1,041		$	183		$	—		$	5,703

EBIT	$	202		$	54		$	71		$	122		$	41		$	5		$	(67	)	$	428

EBIT as a % of revenue		8.1	%		3.1	%		10.2	%		10.1	%		3.9	%		2.7	%					5.8	%
EBIT as a % of value-add revenue		13.4	%		4.7	%		11.8	%		10.1	%		3.9	%		2.7	%					7.5	%

Adjusted EBIT	$	202		$	61		$	71		$	118		$	53		$	5		$	(67	)	$	443

Adjusted EBIT as a % of revenue		8.1	%		3.5	%		10.2	%		9.7	%		5.1	%		2.7	%					6.0	%
Adjusted EBIT as a % of value-add revenue		13.4	%		5.3	%		11.8	%		9.7	%		5.1	%		2.7	%					7.8	%

	FY 2011
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	2,288		$	1,849		$	624		$	1,126		$	1,164		$	154		$	—		$	7,205

Less: Substrate sales		971			597			110			—			—			—			—			1,678

Value-add revenues	$	1,317		$	1,252		$	514		$	1,126		$	1,164		$	154		$	—		$	5,527

EBIT	$	172		$	79		$	47		$	76		$	69		$	(6	)	$	(58	)	$	379

EBIT as a % of revenue		7.5	%		4.3	%		7.5	%		6.7	%		5.9	%		-3.9	%					5.3	%
EBIT as a % of value-add revenue		13.1	%		6.3	%		9.1	%		6.7	%		5.9	%		-3.9	%					6.9	%

Adjusted EBIT	$	172		$	82		$	50		$	78		$	69		$	5		$	(58	)	$	398

Adjusted EBIT as a % of revenue		7.5	%		4.4	%		8.0	%		6.9	%		5.9	%		3.2	%					5.5	%
Adjusted EBIT as a % of value-add revenue		13.1	%		6.5	%		9.7	%		6.9	%		5.9	%		3.2	%					7.2	%

	FY 2010
	Clean Air Division									Ride Performance Division
	North			Europe,			Asia			North			Europe,			Asia
	America			SA & India			Pacific			America			SA & India			Pacific			Other			Total
Net sales and operating revenues	$	1,810		$	1,473		$	542		$	1,011		$	973		$	128		$	—		$	5,937

Less: Substrate sales		739			427			118			—			—			—			—			1,284

Value-add revenues	$	1,071		$	1,046		$	424		$	1,011		$	973		$	128		$	—		$	4,653

EBIT	$	114		$	50		$	53		$	87		$	55		$	3		$	(81	)	$	281

EBIT as a % of revenue		6.3	%		3.4	%		9.8	%		8.6	%		5.7	%		2.3	%					4.7	%
EBIT as a % of value-add revenue		10.6	%		4.8	%		12.5	%		8.6	%		5.7	%		2.3	%					6.0	%

Adjusted EBIT	$	121		$	53		$	54		$	100		$	55		$	4		$	(81	)	$	306

Adjusted EBIT as a % of revenue		6.7	%		3.6	%		10.0	%		9.9	%		5.7	%		3.1	%					5.2	%
Adjusted EBIT as a % of value-add revenue		11.3	%		5.1	%		12.7	%		9.9	%		5.7	%		3.1	%					6.6	%

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ EBIT TO EBITDA INCLUDING NONCONTROLLING INTERESTS⁽²⁾

Unaudited

(Millions)


	Q1 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	48	$	16	$	12	$	35	$	10	$	(2	)	$	(23	)	$	96

Depreciation and amortization of other intangibles		14		11		4		7		11		2			—			49

Total EBITDA including noncontrolling interests⁽²⁾	$	62	$	27	$	16	$	42	$	21	$	—		$	(23	)	$	145


	Q2 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	57	$	20	$	18	$	37	$	16	$	2		$	(13	)	$	137

Depreciation and amortization of other intangibles		15		10		5		8		10		2			—			50

Total EBITDA including noncontrolling interests⁽²⁾	$	72	$	30	$	23	$	45	$	26	$	4		$	(13	)	$	187


	Q3 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	48	$	7	$	20	$	35	$	10	$	3		$	(12	)	$	111

Depreciation and amortization of other intangibles		14		11		5		7		10		2			—			49

Total EBITDA including noncontrolling interests⁽²⁾	$	62	$	18	$	25	$	42	$	20	$	5		$	(12	)	$	160


	Q4 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	49	$	11	$	21	$	15	$	5	$	2		$	(19	)	$	84

Depreciation and amortization of other intangibles		15		11		4		8		17		2			—			57

Total EBITDA including noncontrolling interests⁽²⁾	$	64	$	22	$	25	$	23	$	22	$	4		$	(19	)	$	141

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

EBITDA including noncontrolling interests represents income before interest expense, income taxes, noncontrolling interests and depreciation and amortization. EBITDA including noncontrolling interests is not a calculation based upon generally accepted accounting principles. The amounts included in the EBITDA including noncontrolling interests calculation, however, are derived from amounts included in the historical statements of income data. In addition, EBITDA including noncontrolling interests should not be considered as an alternative to net income (loss) attributable to Tenneco Inc. or operating income as an indicator of the company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco has presented EBITDA including noncontrolling interests because it regularly reviews EBITDA including noncontrolling interests as a measure of the company’s performance. In addition, Tenneco believes its investors utilize and analyze our EBITDA including noncontrolling interests for similar purposes. Tenneco also believes EBITDA including noncontrolling interests assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors. However, the EBITDA including noncontrolling interests measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ EBIT TO EBITDA INCLUDING NONCONTROLLING INTERESTS⁽²⁾

Unaudited

(Millions)


	FY 2012
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	202	$	54	$	71	$	122	$	41	$	5		$	(67	)	$	428

Depreciation and amortization of other intangibles		58		43		18		30		48		8			—			205

Total EBITDA including noncontrolling interests⁽²⁾	$	260	$	97	$	89	$	152	$	89	$	13		$	(67	)	$	633


	FY 2011
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	172	$	79	$	47	$	76	$	69	$	(6	)	$	(58	)	$	379

Depreciation and amortization of other intangibles		60		47		16		30		45		9			—			207

Total EBITDA including noncontrolling interests⁽²⁾	$	232	$	126	$	63	$	106	$	114	$	3		$	(58	)	$	586


	FY 2010
	Clean Air Division						Ride Performance Division
	North		Europe,		Asia		North		Europe,		Asia
	America		SA & India		Pacific		America		SA & India		Pacific			Other			Total
EBIT, Earnings before interest expense, income taxes and noncontrolling interests (GAAP measure)	$	114	$	50	$	53	$	87	$	55	$	3		$	(81	)	$	281

Depreciation and amortization of other intangibles		66		46		14		37		45		8			—			216

Total EBITDA including noncontrolling interests⁽²⁾	$	180	$	96	$	67	$	124	$	100	$	11		$	(81	)	$	497

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE TO NON-GAAP REVENUE MEASURES⁽²⁾

Unaudited

(Millions)


	Q1 2012
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	669	$	277	$	392	$	—		$	392
Europe, South America & India		460		153		307		(18	)		325
Asia Pacific		156		26		130		(8	)		138

Total Clean Air Division		1,285		456		829		(26	)		855

Ride Performance Division
North America		317		—		317		—			317
Europe, South America & India		272		—		272		(17	)		289
Asia Pacific		38		—		38		—			38

Total Ride Performance Division		627		—		627		(17	)		644

Total Tenneco Inc.	$	1,912	$	456	$	1,456	$	(43	)	$	1,499


	Q2 2012
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	671	$	269	$	402	$	—		$	402
Europe, South America & India		434		137		297		(47	)		344
Asia Pacific		169		23		146		3			143

Total Clean Air Division		1,274		429		845		(44	)		889

Ride Performance Division
North America		325		—		325		(2	)		327
Europe, South America & India		276		—		276		(48	)		324
Asia Pacific		45		—		45		(2	)		47

Total Ride Performance Division		646		—		646		(52	)		698

Total Tenneco Inc.	$	1,920	$	429	$	1,491	$	(96	)	$	1,587


	Q3 2012
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	592	$	227	$	365	$	—		$	365
Europe, South America & India		414		139		275		(32	)		307
Asia Pacific		179		20		159		1			158

Total Clean Air Division		1,185		386		799		(31	)		830

Ride Performance Division
North America		299		—		299		1			298
Europe, South America & India		245		—		245		(40	)		285
Asia Pacific		49		—		49		—			49

Total Ride Performance Division		593		—		593		(39	)		632

Total Tenneco Inc.	$	1,778	$	386	$	1,392	$	(70	)	$	1,462


	Q4 2012
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	574	$	224	$	350	$	—		$	350
Europe, South America & India		418		141		277		(16	)		293
Asia Pacific		190		24		166		4			162

Total Clean Air Division		1,182		389		793		(12	)		805

Ride Performance Division
North America		272		—		272		1			271
Europe, South America & India		248		—		248		(15	)		263
Asia Pacific		51		—		51		—			51

Total Ride Performance Division		571		—		571		(14	)		585

Total Tenneco Inc.	$	1,753	$	389	$	1,364	$	(26	)	$	1,390

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from the effects of doing business in currencies other than the U.S. dollar. Additionally, substrate sales include precious metals pricing, which may be volatile. Substrate sales occur when, at the direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before these factors. Tenneco believes investors find this information useful in understanding period to period comparisons in the company’s revenues.

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE TO NON-GAAP REVENUE MEASURES⁽²⁾

Unaudited

(Millions)


	FY 2012
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	2,506	$	997	$	1,509	$	—		$	1,509
Europe, South America & India		1,726		570		1,156		(113	)		1,269
Asia Pacific		694		93		601		—			601

Total Clean Air Division		4,926		1,660		3,266		(113	)		3,379

Ride Performance Division
North America		1,213		—		1,213		—			1,213
Europe, South America & India		1,041		—		1,041		(120	)		1,161
Asia Pacific		183		—		183		(2	)		185

Total Ride Performance Division		2,437		—		2,437		(122	)		2,559

Total Tenneco Inc.	$	7,363	$	1,660	$	5,703	$	(235	)	$	5,938


	FY 2011
							Currency			Value-add
							Impact on			Revenues
			Substrate		Value-add		Value-add			excluding
	Revenues		Sales		Revenues		Revenues			Currency
Clean Air Division
North America	$	2,288	$	971	$	1,317	$	—		$	1,317
Europe, South America & India		1,849		597		1,252		—			1,252
Asia Pacific		624		110		514		—			514

Total Clean Air Division		4,761		1,678		3,083		—			3,083

Ride Performance Division
North America		1,126		—		1,126		—			1,126
Europe, South America & India		1,164		—		1,164		—			1,164
Asia Pacific		154		—		154		—			154

Total Ride Performance Division		2,444		—		2,444		—			2,444

Total Tenneco Inc.	$	7,205	$	1,678	$	5,527	$	—		$	5,527

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

TENNECO INC.

CLEAN AIR AND RIDE PERFORMANCE DIVISIONS

RECONCILIATION OF GAAP⁽¹⁾ REVENUE TO NON-GAAP REVENUE MEASURES⁽²⁾

Unaudited

(Millions)


	FY 2011
							Currency		Value-add
							Impact on		Revenues
			Substrate		Value-add		Value-add		excluding
	Revenues		Sales		Revenues		Revenues		Currency
Clean Air Division
North America	$	2,288	$	971	$	1,317	$	3	$	1,314
Europe, South America & India		1,849		597		1,252		60		1,192
Asia Pacific		624		110		514		29		485

Total Clean Air Division		4,761		1,678		3,083		92		2,991

Ride Performance Division
North America		1,126		—		1,126		9		1,117
Europe, South America & India		1,164		—		1,164		49		1,115
Asia Pacific		154		—		154		13		141

Total Ride Performance Division		2,444		—		2,444		71		2,373

Total Tenneco Inc.	$	7,205	$	1,678	$	5,527	$	163	$	5,364


	FY 2010
							Currency		Value-add
							Impact on		Revenues
			Substrate		Value-add		Value-add		excluding
	Revenues		Sales		Revenues		Revenues		Currency
Clean Air Division
North America	$	1,810	$	739	$	1,071	$	—	$	1,071
Europe, South America & India		1,473		427		1,046		—		1,046
Asia Pacific		542		118		424		—		424

Total Clean Air Division		3,825		1,284		2,541		—		2,541

Ride Performance Division
North America		1,011		—		1,011		—		1,011
Europe, South America & India		973		—		973		—		973
Asia Pacific		128		—		128		—		128

Total Ride Performance Division		2,112		—		2,112		—		2,112

Total Tenneco Inc.	$	5,937	$	1,284	$	4,653	$	—	$	4,653

⁽¹⁾	Generally Accepted Accounting Principles

⁽²⁾

Tenneco (TEN) 8-KTenneco Announces Organizational Changes