BorgWarner Inc.

Good morning. My name is Nick, and I will be your conference specialist. At this time, I would like to welcome everyone to the BorgWarner 2024 Fourth Quarter and Full Year Results Conference Call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by a zero. After today's presentation, there will be an opportunity to ask questions. If you would like to ask a question during this time, simply press star 1 on your telephone If you would like to withdraw your question, press star 2. If you are using a speakerphone, please pick up your handset before asking your question. I would now like to turn the conference over to Patrick Nolan, Vice President of Investor Relations. Mr. Nolan, you may begin your conference.

Patrick Nolan, Vice President of Investor Relations Thank you, Nick, and good morning, everyone. Thank you all for joining us today. We shared our earnings release earlier this morning.

It's posted on our website, BorgWarner.com, both on the homepage and on our Investor Relations homepage. With regards to our investor relations calendar, we will be attending multiple conferences between now and our next earnings release. Please see the events section of our IRF page for a full list. Before we begin, I need to inform you that during this call, we may make forward-looking statements which involve risk and uncertainties as detailed in our 10-K. Our actual results may differ significantly from the matters discussed today. During today's presentation, we will highlight certain non-GAAP measures in order to provide a clearer picture of how the core business performs and for comparison purposes with prior periods. When you hear us say on a comparable basis, that means excluding the impact of FX, net M&A, and other non-comparable items. When you hear us say adjusted, that means excluding non-comparable items. When you hear us say organic, that means excluding the impact of FX and net M&A. We will also refer to our incremental margin performance. Our incremental margin is defined as the organic change in our adjusted operating income divided by the organic change in our sales. Our all-in incremental margin includes our planned investment in R&D, any impact from inflationary impacts, and other cost items. Lastly, we will refer to our growth compared to our market. When you hear us say market, that means the change in light and commercial vehicle production weighted for our geographic exposure. Please note that we've posted today's earnings call presentation to the IR page of our website. We encourage you to follow along with these slides during our discussion.