This presentation contains statements relating to future results of the company (including certain projections
and business trends) that are “forward-looking statements” as defined in the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as
“believe,” “expect,” “anticipate,” “estimate,” “should,” “are likely to be,” “will,” and similar expressions. Actual
results may differ materially from those projected as a result of certain risks and uncertainties, including, but
not limited to, global economic and market conditions; the demand for commercial, specialty and light
vehicles for which the company supplies products; risks inherent in operating abroad (including foreign
currency exchange rates and potential disruption of production and supply due to terrorist attacks or acts of
aggression); availability and cost of raw materials, including steel; OEM program delays; demand for and
market acceptance of new and existing products; successful development of new products; reliance on
major OEM customers; labor relations of the company, its customers and suppliers; potential disruptions in
supply of parts to our facilities or demand for our products due to work stoppages; the financial condition of
the company’s suppliers and customers, including potential bankruptcies; successful integration of acquired
or merged businesses; the ability to achieve the expected annual savings and synergies from past and
future business combinations; success and timing of potential divestitures; potential impairment of long-lived
assets, including goodwill; competitive product and pricing pressures; the amount of the company’s debt; the
ability of the company to access capital markets; credit ratings of the company’s debt; the outcome of
existing and any future legal proceedings, including any litigation with respect to environmental or asbestos-
related matters; as well as other risks and uncertainties, including, but not limited to, those detailed from
time to time in the filings of the company with the Securities and Exchange Commission.
Forward-Looking Statements
2
CVS Total Sales of $4.1 billion = 46%
LVS Total Sales of $4.7 billion = 54%
Broad Product Portfolio
Sales from Continuing Operations $8.8 Billion in FY05
#1 or #2 in
most major
markets
3
Strong Global Presence
North America – 51%
FY05 sales $4.5B
LVS – $2.0B
CVS – $2.5B
46 manufacturing facilities
7 joint ventures*
6 technical centers
Europe – 38%
FY05 sales $3.3B
LVS – $2.2B
CVS – $1.1B
43 manufacturing facilities
8 joint ventures*
12 technical centers
South America – 5%
FY05 sales $0.5B
LVS – $240M
CVS – $217M
12 manufacturing facilities
2 joint ventures*
2 technical centers
Asia Pacific & ROW – 6%
FY05 sales $0.5B
LVS – $276M
CVS – $256M
20 manufacturing facilities
9 joint ventures*
1 technical center
* Includes consolidated and non-consolidated joint ventures
121 Manufacturing
Facilities
26 Joint Ventures
21 Technical
Centers
4
Diverse Customer Base
Minimizes Reliance on Any Single Customer
CVS Customer Base
LVS Customer Base
DaimlerChrysler
13%
General Motors
9%
Volkswagen
9%
Ford 7%
Asian Based OEMs 3%
BMW 3%
PSA 2%
Fiat 2%
Other LVS 6%
Other CVS
16%
Fiat 1%
Asian Based
OEMs 1%
Ford 1%
Volkswagen 1%
General Motors 1%
PACCAR 2%
Renault 3%
International 3%
Volvo 8%
DaimlerChrysler
9%
5
Diverse Customer Base
Limited Exposure to Troubled Customers in North America
LVS exposure to
General
Motors in North
America = 7%
of total
company sales
LVS exposure to
Ford in
North America = 3%
of total
company sales
6
Diverse Customer Base
CVS Exposure to Class 8 Downturn in North America Approximately 11%
PACCAR
International
Volvo/Mack
DaimlerChrysler
7
Recent Accomplishments: Expanding Customer Base
Awarded two new
emissions
contracts with
Chinese
manufacturer
Awarded exhaust
aftertreatment
device packaging
for Daimler-
Chrysler’s heavy-
duty engines
Signed multi-
year contract to
supply door
module to the
Chinese market
Entered into
joint venture
with DongWon
Precision
Industrial Co. to
supply diesel
particulate filters
to the Korean
market
Entered into
joint venture
with First Auto
Works (FAW)
to produce
foundation
brakes
Opened Customer
Value Center in
Alabama to supply
door modules for
Hyundai’s Sonata
and Sante Fe
Selected as
standard
equipment supplier
for hub and brake
drums by Wabash
National Corp.
8
LVS:
Thomastown, Australia (Doors)
Augsburg, Germany Plant #2 (Emissions Technologies)
Asti, Italy (Ride Control)
Blackpool, U.K. (Emissions Technologies)
Pulaski, Tenn., U.S. (Shock Absorbers)
Valladolid, Spain (Doors)
Mosciano, Italy (Emissions Technologies)
Birmingham, England (Doors)
CVS:
Cleveland, Ohio, U.S. (Aftermarket distribution)
Wrexham, U.K. (Trailer Products)
Annualized Savings of $50-60 Million Beginning in 2007
Recent Accomplishments:
Restructuring in Process to Optimize Operations
9
Recent Accomplishments:
Divestitures of Non-Core Business
In process
Europe
In process
Ride Control
South Africa
In process
Motion control
In process
Ride control
Not disclosed
Sold
Exhaust
$170 million
Sale completed
Purolator filters
North America
$9 million
Sold
Equity Share in Purolator India
India
Light Vehicle Aftermarket
$43 million
Sold
Off-Highway Brakes
Commercial Vehicle Systems
Proceeds
Status
10
$900
Revolver
Fiscal Year ‘04 Term Debt Through 2011: $948 Million
Recent Accomplishments:
Improving the Balance Sheet
11
Fiscal Year ‘05 Term Debt through 2011: $696 Million
$900
Revolver
Recent Accomplishments:
Improving the Balance Sheet
September ’05:
exchanged
$253 million
term debt from
2009 to 2015
* Company repurchased $20 million in FY05
*
12
Recent Accomplishments:
Improving the Balance Sheet
March ‘06: Issued New $300 Million Convertible Bond
$900
Revolver
Demand for
new bond was
approximately
$1.2 billion
* Company repurchased $3 million in Q1 FY06
*
13
Current Term Debt Maturing through 2011 Now $94 Million
Recent Accomplishments:
Improving the Balance Sheet
$900
Revolver
Repurchased
$600 million in
Term debt
from 2007
through 2009
Funded repurchase through:
Divestiture proceeds: ~$220 million
Convertible funds: ~$300 million
Cash on hand: ~$80 million
14
Recent Accomplishments:
Improving the Balance Sheet
Net term debt reduction of $300
million
From $1.4 billion to $1.1 billion
Extended $553 million of
term debt
Now due in 10 to 20 years
No Major Debt Maturities Until 2012
15
Focusing on Core Growth Drivers
Vehicle Performance
Ride Comfort
Vehicle Stability
Collision Avoidance
Fuel Efficiency
Emissions Reduction
Mobility
Safety
Environment
16
ASSESS PRODUCT PORTFOLIO FOR STRATEGIC FIT
Pursuing Profitable Business Expansion
Mobility
Safety
Environment
STRENGTHEN AND GROW IN PROFITABLE SEGMENTS
Optimize Cash Contribution and Improve Operating Performance
ROIC Target of 15%
ASSESS PRODUCT PORTFOLIO FOR FINANCIAL FIT
17
“Activate” existing
mechanical products
Pursuing Profitable Business Expansion
Increase presence
in emerging
markets
Grow Commercial
Vehicle Emissions
and Aftermarket
businesses
18
Source: Keystone: The World’s Top Automotive Markets in 2030
2005
2030
U.S.
26%
R.O.W.
31%
Spain
3%
U.K. 4%
Italy 5%
Germany 6%
Japan
9%
France 4%
China
27%
U.S. 15%
India 10%
Japan
4%
Germany
3%
Brazil 3%
Russia 3%
Mexico
3%
France
2%
U.K.
2%
R.O.W.
28%
12% - 43% Growth Projected in Brazil, Russia, India and China
Vehicle Registration Growth Projection in Top 10 Markets
China 4%
India 2%
Brazil 3%
Russia 3%
BRIC Markets Offer Significant Growth Potential
19
Current Operations in South America
Wholly-Owned Operations
Limeira, Brazil
Steel wheels, doors, latches, catalytic converters, emissions
technologies
Customers include DaimlerChrysler, VW, Toyota, Honda, GM,
Ford, PSA, Fiat
Osasco, Brazil
Axles, carriers, gear sets, housings, precision forgings
Customers include Volvo, VW, Ford, International, IVECO,
Agrale, Axle Tech
Distributes aftermarket axles, brakes, suspension parts
Customers include Iveco, VW, Volvo, Ford
Cordoba, Argentina; Camcari (CVC), Gravatai, Sao Bernardo do
Campo, Brazil
Manufacturer and assemble exhaust components and systems
Customers include Toyota, Honda, VW, Renault, ASA, Peugot,
GM, Ford, DaimlerChrysler
Valencia, Venezuela
Emissions and ride control
Customers include Toyota, Hyundai, GM, Ford, DaimlerChrysler
Joint Ventures
Master Sistemas Automotive Limitada, Caxias do Sul, Brazil
Brakes
Suspensys Sistemas Automotive Limitada, Caxias do Sul, Brazil
Suspensions
Operating in South America Since 1973
Nine Manufacturing Facilities
20
Current Operations in Eastern Europe
Wholly-Owned Operations
Liberec, Czech Republic
Complete door assemblies, door modules, window regulators
Customers include Skoda Auto, Volkswagen, Toyota/PSA
Mlada Boleslav, Czech Republic
Exhaust systems
Customers include Volkswagen Slovakia, Skoda
Jaszarokszallas, Hungary
Catalytic converters, mufflers, pipes
Customers include Porsche, Suzuki, Volkswagen, BMW, Ferrari
Poznan, Poland
Door modules for Volkswagen Poznan
Golcuk, Turkey
Cold and hot end exhaust
Customers include Ford Otosan
Bratislava, Slovakia
Sunroofs, large opening systems, modules, glass encapsulation
Joint Ventures
Ege Fren Sanayii ve Ticaret A.S., Izmir, Turkey
Brakes
Arvin Exhaust s.r.o., Prague, Czech Republic
Emissions Technologies
Operating in Eastern Europe Since Early 1990’s
Eight Manufacturing Facilities
21
Current Operations in India
Wholly-Owned Operations
Technical Center, Bangalore
Established in 1998
More than 100 employees engaged in engineering, IT and
procurement activities supporting ArvinMeritor’s light and
commercial vehicle business groups
Joint Ventures
Automotive Axles Ltd., Mysore
Joint venture partnership with Kalyani Group
Manufactures axles, brakes, housings and components for light,
medium and commercial vehicles, and technical center
Meritor HVS India Ltd., Mysore
Joint venture partnership with Bharat Forge Limited (BFL)
Product and application engineering, assembly, marketing and
sale of axle and brake products for light, medium and heavy
commercial vehicles
Arvin Exhaust India Private Ltd., Chennai and Bangalore (CVC)
Joint venture partnership with Anand Group
Manufacture, assembly and marketing of complete automotive
exhaust systems, catalytic converters, manifolds and related
components
Gabriel India Ltd., headquarters in Delhi
Joint venture partnership with Anand Group
Seven plants with total manufacturing capacity of more than 10
million shock absorbers, struts and front forks
Operating in India Since Late 1960’s
Two Technical Centers
Ten Manufacturing Facilities
22
Established joint venture with
Bharat Forge in 1982 with an
investment of approximately
$3 million
ArvinMeritor has thirty-five
percent ownership
Sales have increased from
$14 million in 1998 to
$77 million in 2005
Market value during this same
period increased from $6
million to $180 million
Current market value is $250
million
Success Story: Automotive Axles – India
23
Current Operations in China
Wholly-Owned Operations
Pudong
Axle assembly
PuDong (CVC), Yantai (CVC), Anting, Chongqing (CVC) and Nanjing
Emissions technologies
Customers include VW, SAIC, GM, Ford, Jeep, SEA
Zhenjiang
Window regulators and door latches
Customers include Mazda Japan, FAW-VW, Volkswagen
Shanghai
Changchun
Door modules, CVC beginning in October 2006
Shanghai
Corporate office
Joint Ventures
Shanghai ArvinMeritor Automotive Parts Co. Ltd.
Sunroofs
Customers include Shanghai VW
ArvinMeritor FAW Sihuan (Changchun) Vehicle Brake Co. Ltd.
Brakes
Customers include FAW
Xuzhou Meritor Axle Co. Ltd.
Axles for off-highway vehicles, brakes
Customers include FAW, FOTON, Puyuan, Taian
Meritor Huayang Braking Co. Ltd. (Shanghai)
Brakes
Customers include Golden Dragon, Ankai Bus, Volvo Sunwin
Operating in China Since Late 1980’s
Doubled Presence in Past Three Years
Twelve Manufacturing Facilities
24
India And China Are Projected to Become Major
Component Producers
Source: Market research, Booz Allen IC
Total Component Part Sales from 2000 to 2010
($ Billions)
India
China
25
Global supply partners for key components
In-market conduit to customers
Continuing operations are involved in 26 joint ventures in 13
countries
Sales of unconsolidated joint ventures in 2005 were $1.5 billion
Equity earnings from joint ventures in fiscal year 2005 were $28
million
Increase of 47 percent over the prior year
Vital Element of Global Expansion and Technology Strategy
Growing through Joint Ventures
26
Sales Growth from Unconsolidated Joint Ventures
2005
2004
2003
$1.5B
$1.1B
$843M
27
Forming Joint Ventures to Grow in Emerging Markets
2005 Consolidated Sales
Including All Joint Ventures
North
America
51%
Europe
38%
Rest of
World
11%
North
America
49%
Europe
32%
Rest of
World
19%
Geographic Diversity Aided by Joint Ventures
28
Emerging Markets Offer Attractive
Shared Service Opportunities
Accounts Payable
Accounts Receivable
Database and
network
administration
Enterprise
Resource Planning
Application
development
Maintenance and
support
Call Center
Help Desk
Daily procurement
activities
Intelligent commodity
sourcing
Supplier development
and SQA
Purchase – pay
processing
FINANCIAL
SERVICES
VALUE ADDED
ENGINEERING
Above and beyond
CAD
Cost reduction –
VA/VE
Complete product
development cycle
Design, develop and
validate
24/7 virtual design
center
IT
PROJECTS
PROCUREMENT
AND
ADMINISTRATION
29
Comprehensive strategy to
double LCCC spend by 2008
Substantial cost reductions of
raw materials and components
Localize supply base in
Asia/Pacific
Procurement leadership based
in Shanghai
Emerging Markets Offer Attractive Sourcing
Opportunities
Leading Cost-Competitive Country
(LCCC) Spend
60%
43%
22%
2010
2008
2005
30
Capturing Our Share of Rapidly Growing
Global Diesel Emissions Market
Addressable market of $750 million in
2005 grows to $4.2 billion by 2010
$2.7 billion in CVS
$1.5 billion in LVS
Significant business awards
Nine Commercial Vehicle
Emissions (CVE) contracts with
seven different customers
Exhaust aftertreatment device
packaging for DaimlerChrysler
ActiveClean Atomizer
Technology for General Engine
Products
1.4 million LV diesel particulate
filters
Diesel Emissions Addressable Market
31
Capturing Growth in Global
Commercial Vehicle Aftermarkets
Global Market of $89 Billion
Addressable Undercarriage
Market of $20 Billion
Leverage Strengths to Grow
Business
Expanding OE Business
Channel Management
Experience
Emerging Market Presence
and Infrastructure
Global
Market
Addressable
Market
$89 billion
$20 billion
32
Plans to Mitigate the 2007 NA Class 8 Downturn
Layered Capacity
Emerging Markets
LVS Restructuring
High-Volume Premium Reduction
CVA Growth
CVE Growth
Trailer Productivity
Conversion @ 15%-20% ($45M) – ($60M)
30-35% ~($300M)
Exposure to Class 8: 11% of $8.8B ~ $900M
33
Diversified product portfolio and
customer base
Strengthened balance sheet
Leading positions in global
markets
Growing CVE and CVA
businesses
Expanding in emerging markets
Mitigating 2007 N.A. Class 8 truck
downturn
Investment Highlights
34
www.arvinmeritor.com
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