Knorr 23

Fact Book
2018
Knorr-Bremse Group Confidential

Disclaimer
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financial statements prepared in accordance with either IFRS (for the financial years 2014-2017and for the first half of 2017 and 2018) or German GAAP (HGB) (for the financial years 1989-2017), each as
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Knorr-Bremse Group │2
Confidential
1 Introduction 7
i Knorr-Bremse leadership team 8
ii Knorr-Bremse summary 9
iii Brief history of Knorr-Bremse since 1985 10
2 Key Company Highlights 11

i Summary 12
ii Global #1 13 – 15
iii Synergistic business 16
iv Market outperformance 17 – 18
v The industry innovator 19
vi Resilience 20 – 21
vii Superior financial profile 22
viii Leadership excellence 23

3 Rail Vehicle Systems (RVS) 24
i Summary 25
ii Brake technology offering 26 - 27
iii Customers 28
iv Market shares 29
v Barriers to entry and market homologation 30
vi Market outperformance 31
vii Strategy in China and India 32
viii Kiepe Electric acquisition 33
ix Key takeaways 34
4 Commercial Vehicle Systems (CVS) 35

i Summary 36
ii Product offering 37
iii Customers 38
iv Market shares 39
v Market outperformance 40
vi Legislation and technology adoption 41
vii Air Disk Brake market 42
ix Automated Driving 43 – 45
x Strategy in North America, China and India 46
xiKnorr-BremseKey takeaways
Group
47
Confidential
5 R&D Focus 48
i Summary 49
ii Cross-divisional synergies 50 – 52
iii Process 53
iv Cooperation with customers & strategic partners 54
v Competition positioning 55
vi Future focus 56
6 Financials 57
i Summary 58
ii Long term sales and EBITDA development 59 – 60
iii Aftermarket 61
iv Sales split and EBIT development 62 – 63
v Order intake and order book 64
vi P&L summary 65
vii Cash generation, asset base, and capital structure 66 – 68
viii Medium term targets, dividend policy, and best-in-class positioning 69 – 70

7 Sustainability 71
i Corporate memberships, ratings & awards 72 - 73
ii CR policy and focus areas 74 - 75
iii Code of conduct 76
iv Sustainable development goals 77
v Responsibility areas 78
vi Culture and core values 79
8 Capital Markets Summary 80

i Share data 81
ii Bond data 82
iii Investor relations contacts 83
9 Appendix 84
i Glossary 85 - 86

1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
The Knorr-Bremse leadership team
Klaus Deller Ralph Heuwing Dr. Peter Laier Dr. Jürgen Wilder
CEO CFO Head of CVS Head of RVS
 2009-present: Knorr-Bremse  2017-present: Knorr-Bremse  2016-present: Knorr-Bremse  2018-present: Knorr-Bremse
CEO, previously Head of RVS CFO Head of CVS Head of RVS
(3 years) and Head of
CVS (6 years)  2007-2017: Dürr (MDAX listed)  2014-2015: Benteler  2015-2017: DB Cargo AG
CFO International CEO
 2004-2009: Brose COO
Fahrzeugteile Deputy CEO  1990-2007: The Boston  2013-2015: Siemens AG
Consulting Group  2013-2014: Osram Licht Mainline Transportation Global
 1991-2003: Robert Bosch Partner and Managing Director CTO Business Unit CEO
Executive Vice President
 Diploma in Mechanical  2000-2012: Knorr-Bremse  2011-2013: Siemens AG
 Diploma in Mechanical Engineering, Master of Executive Vice President Head of Strategy Infrastructure
Engineering, Applied Business Administration (MBA) and Cities Sector
Mathematics, Master of  PhD and Diploma in
Business Administration (MBA) Mechanical Engineering  Doctorate in Physics
Professional Years with Professional Years with Professional Years with Professional Years with
Experience Knorr-Bremse Experience Knorr-Bremse Experience Knorr-Bremse Experience Knorr-Bremse
27 9 28 1 22 2 18 1
Notes: RVS - Rail Vehicle Systems; CVS - Commercial Vehicle Systems
Confidential
Knorr-Bremse – One of Germany’s most successful industrial companies
“>1 Bn people trust Knorr-Bremse systems every day”
113 #1
YEARS
Family-Ownership, Global market leader Shared pneumatics Technology leadership

heritage and unique DNA for braking systems experience between RVS
and CVS
2017 key financials

Sales
EBITDA EBITA R&D
€6.2bn Aftermarket
(>10% CAGR1) €1.1bn €947m €359m
~35% of sales
since 1989) (margin 18.1%) (margin 15.4%) (~6% of sales)
Balanced portfolio2) … … and diversified global footprint with high local content
Asia / 30+ countries

CVS CVS Australia Europe /
47% 45% 27% Africa
Sales EBIT Sales 50% 100+ sites
RVS RVS (15% Margin)
53% 55%
Americas c. 28k
(16% Margin)
23% employees3)
Notes: Sales, EBITDA, EBITA, and EBIT for 2017 based on financial statements prepared in accordance with IFRS, other financial figures for 2017 prepared in accordance with German GAAP (HGB);
Aftermarket share based on German GAAP (HGB) where BilRUG sales allocated proportionally between OE and aftermarket; RVS – Rail Vehicle Systems; CVS – Commercial Vehicle Systems;
1) CAGR 1989–2017 based on German GAAP (HGB), 1989 – first year when consolidated accounts are available; 2) Excluding consolidation/other; 3) Including human resources leased staff;
Source: Knorr-Bremse information
Confidential
Over 30 years of consistent strong growth
1985 2000 2015 2010-2017 2017

Management buyout Bendix integrates Joint Venture with €1bn+ capex “Currently Knorr-Bremse
>10% sales
by Mr. Thiele Westinghouse Air
Brake company
JV DongFeng Motor
goes into operation
invested
to future-proof
is considering different
options to position the CAGR
manufacturing and company for the future,
production facilities including the possibility 19891)-2017
of an IPO.”
1985-1990 2002 2015/16 2017
Bond prospectus,
Successful strategy: 100% acquisition TRS
Japan 7 acquisitions Acquisition of 21 September 2017
Globalisation, focus on of Bendix in Vossloh Kiepe
RVS and CVS, growth the US
in connected systems
1991 2006 2016

New state-of-the-art
Dawn of the ICE era 4 Joint Ventures in
innovation and
with high-speed Rail formed in
testing centre in
braking systems China
Munich
2)
1995-1996 6.2
Rise of ADB
technology
1999
Joint Venture with
JV Bosch in Electronics
1)
0.2 0.4
1985 1989 1990 1995 2000 2002 2003 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018
Sales (€bn) Important corporate events Product innovation M&A / Strategic partnerships
Notes: 1986-2017 based on financial statements prepared in accordance with German GAAP (HGB) and H1 2017 and H1 2018 based on financial statements prepared in accordance with IFRS. 1) 1989 – first
year when consolidated accounts are available; 2) Extrapolation of sales; Source: Knorr-Bremse information

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Knorr-Bremse – A best-in-class industrial company
Number one supplier for braking systems and a leading supplier of other safety critical rail
1 Global #1 and commercial vehicle systems protected by high barriers to entry
2 Synergistic business Technology and scale benefits between rail and commercial vehicles
Consistent outperformance of attractive end-markets driven by megatrends and increasing

3 Market outperformance content per vehicle
Driving innovation in mobility and transportation technologies through R&D, quality

4 The industry innovator excellence and edge in connected systems
Resilient business model, supported by broad geographical and customer diversification,

5 Resilience high aftermarket exposure and strong localisation
6 Superior financial profile Strong growth, profitability, and cash generation with high earnings visibility
Highly experienced management team with strong track record and clear vision for future
7 Leadership excellence value creation

Confidential
1 Global #1 – The world’s leading supplier of safety critical rail and commercial
vehicle systems
RVS offering (2017: 53% of sales, 55% of EBIT) CVS offering (2017: 47% of sales, 45% of EBIT)
Train Control LRV2) Fuel efficiency Brake systems & vehicle dynamics
Brake Entrance
HVAC1) Management traction ▪ Engine components ▪ Brake control ▪ Automated driving
systems systems
Systems systems ▪ Transmission ▪ Brake systems ▪ Steering systems
Power Auxiliary Energy supply &

Signaling systems Connectivity Electrification
electrics power supply distribution
Modernisation and support Aftermarket services Aftermarket services including Alltrucks network 3)
Preferred partner for all major OEMs4) and operators across the globe
Example car builders Example operators
Indian Railways
Notes: 2017 financials based on IFRS excluding consolidation/other; 1) HVAC – Heating, ventilation and air conditioning; 2) LRV – Light rail vehicle; 3) Joint Venture between Bosch, Knorr-Bremse and ZF
providing a range of workshop services relating to the repair and maintenance of commercial vehicles across all brands; 4) OEM – Original Equipment Manufacturer; Source: Knorr-Bremse information

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1 Global #1 – Number one supplier for braking systems and a leading supplier
of other safety critical rail and commercial vehicle systems …
RVS CVS
#1 Global brakes market share 20171) #1 Global pneumatic brake system market share 20172)
~3.0x 1.2x
~50%
42% 32% 1.4x
34% 23%
~15%
% Including Drum Brakes and Brake Rotors
Market positions in key product groups (2017) Market positions in key product groups (2017)3)
#1 Brake Systems1) #1 Entrance #2 HVAC1) #1 Brake Systems & #1 Energy Supply #1 Fuel Efficiency
Systems1) Vehicle Dynamics & Distribution
(incl. Automated Driving) (Joint)
Notes: 1) 2017 RVS market share estimates for OE and aftersales without labour; Wabtec includes Faiveley; For the competitor an estimate was used; Market shares rounded to the nearest multiple of 5%;
2) 2017 Market share estimates for Truck and Bus OEM sales only including Air Disc Brake, Brake Control and Air Supply (excluding Drum Brakes and Brake Rotors; Drum Brakes are mainly produced by the
OEMs and Brake Rotors are mainly sourced separately), excluding aftermarket and Trailer; Knorr-Bremse data based on market intelligence and experts estimate in 2017; 3) For 2017 global addressable
Truck, Bus and Trailer OE, excluding aftermarket; Source: Knorr-Bremse information and internal market research

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1 Global #1 – … protected by high barriers to entry
Barriers to entry for RVS and CVS markets Market specifics
RVS
Only supplier worldwide
 Regulation / homologation certified for all global and local standards and norms
(GOST, UIC, AAR, ARA)
 Low volumes, high number of variants with high level Vast array of product variants to homologate
of customisation (e.g. >100k active brake articles by Knorr-Bremse)
 High initial capital requirements, highly protected IP landscape Homologation time typically 4-8 years
and economies of scale for recent Knorr-Bremse products
CVS
 Highest quality and safety requirements
One of only two suppliers able to offer harmonised
products globally
 Long lifecycle with resulting customer loyalty, long gestation

period for aftermarket
Continuously increasing safety and emission
standards requirements
 Same industry leaders since creation of the industry over 100
years ago

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2 Synergistic business – Technology and scale benefits between Rail and
Commercial Vehicles
Interdependence of RVS and CVS today Future technology development Unique scale benefits
✓ Same core technologies ✓ Shared research centres ✓ ~2x size of main competitors3)
✓ ADAS1) / HAD2) technology transfer

✓ Shared components and materials ✓ Balance sheet strength for M&A
✓ Condition monitoring, condition-based
and predictive maintenance
✓ Comprehensive research and IP base ✓ Global footprint

✓ Electrification and connectivity
✓ Electromechanical brake systems
RVS CVS
Electric compressors
Friction materials
Air disc brakes (ADB)
Driver assistance
Trailer control valve
Electronic air supply
Notes: 1) ADAS – Advanced driver assistance system; 2) HAD – Highly automated driving; 3) Based on 2017 sales and status quo pre-Wabtec merger with GE Transportation; 2017 €/USD FX: 0.83346 used
as of 31 December 2017; Source: Knorr-Bremse information; WABCO and Wabtec / Faiveley information based on Annual Report 2017

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3 Market outperformance – Knorr-Bremse is well positioned to deliver
continued growth above rail industry levels
Knorr-Bremse with strong track record of industry outperformance Key future growth drivers
CAGR (2010-2017) RVS sales1) (HGB) and market
Asia Growth Outsourcing
 Chinese high-speed  Outsourcing from rail OEM’s
3.7x
 Mass urban transport in APAC (trend towards de-verticalisation)
 Expansion and upgrade of Indian rail
rolling stock
7.3%  CRRC international expansion
M&A
Digitisation Aftermarket
2.8x  Increasing demand for connected  Global rail services and aftermarket
systems and other digital solutions for rolling stock
5.7%
Organic
~2%
✓ Certification capability for all global core markets
✓ Partner of many Chinese OEMs and large installed base
Underlying Rolling
Stock Market
2)
✓ Leading control and monitoring technology
(external view)
✓ Excellent engineering and R&D system and a connected systems
innovation leader
Notes: 1) Based on German GAAP (HGB); 2) Underlying OE rolling stock and aftermarket volume as defined by Roland Berger (July 2018). Market CAGR based on 2010 to 2016 market volumes; Source:
Knorr-Bremse information, Roland Berger - Analysis of rail vehicle market report (July 2018) for growth rate of underlying rolling stock market

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3 Market outperformance – Strong growth in content per vehicle expected to
result in continued outperformance of global commercial vehicle market
Knorr-Bremse with strong track record of industry outperformance Key future growth drivers
CAGR (2010-2017) CVS sales1) (HGB) and market
Megatrends and conversion of regulatory standards
6.0x
 Global megatrends provide attractive growth opportunities
8.1%
 Convergence of regulatory standards drives global adoption of technologies
M&A
5.6x  Disc brakes replacing drum brakes

Organic
7.5% Content increase Market share gains

1.3%
 Traffic Safety  Product upgrading
2)  Fuel efficiency  Regional expansion strategy
IHS truck production rate
Significant market content per vehicle (CPV) growth

Market CPV CAGR3) (%, 2010-2017)
7,0% ✓ Market leader in a consolidated industry with only 2 global players
✓
5,3% 5,2%
A strong technology innovator shaping the industry
3,1%
✓
Multiple trends driving growth independent of underlying market
(0,9%)
dynamics
World Europe North America South America Asia / Australia
✓ Ideally positioned to win in market defining trend towards
ADAS/HAD4)
Notes: 1) Based on German GAAP (HGB); 2) Global Truck and Bus market excluding aftermarket and Trailer; 3) Addressable Truck, Bus and Trailer OE market for “Brake Systems & Vehicle Dynamics (incl.
Automated Driving)”, “Energy Supply & Distribution” and “Fuel Efficiency”; 4) Advanced Driver Assistance Systems/Highly Automated Driving; Source: Knorr-Bremse information; IHS for truck production rate

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4 The industry innovator – Driving innovation in mobility and transportation
technologies through R&D leadership and edge in connected systems
Knorr-Bremse invests more in R&D1) Consistently pioneering “first to market” innovations…
5.8% 6.2% 2.5% 5.2% 4.4%

359
207
152 123
79
2)
9 out of 10 8 out of 10
RVS CVS of most industry-defining of most industry-defining
innovations4) come from innovations4) come from
2017 R&D as % of sales Knorr-Bremse Knorr-Bremse
Knorr-Bremse has a larger patent portfolio than its peers … supported by focused M&A and partnerships
Portfolio size based on patent families (public) Autonomous Safe Connected

~2.800
>10,000 individual
patents3)
(Steering, (TCMS, (Braking, (Braking, (Telematics,
2016) 2015) 2016) 2015) 2016)
978 Efficient
720
TRS Japan
(Electrics, (Converters, (Engine air,
(Transmission,
2) 2017) 2014) 2016)
2016)
Notes: €/USD conversion 0.83; 1) Knorr-Bremse R&D financial information based on German GAAP (HGB), R&D ratio as reported in annual reports; 2) PF Faiveley and excl. GE Transportation acquisition;
3) Granted and applied patents; 4) Information as per Knorr-Bremse management view; Industry defining are considered to be the top 10 innovations in the past 30 years in the rail and commercial vehicle
industry; Source: Knorr-Bremse information; 2017 annual reports of Wabtec / Faiveley and WABCO; PatentSight

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5 Resilience – Business model supported by high aftermarket exposure, broad
geographical and customer diversification and strong localisation
Strong resilience of growth and profitability
Different economic cycles High aftermarket share
 ~50/50 split RVS and CVS (by sales)  ~35% total sales1) – and growing
 Different market drivers ˗ 42% of RVS sales1)
˗ short vs. long cycle ˗ 28% of CVS sales1)
˗ private vs. public investment
 Large installed base
 High sales visibility in RVS
Diversified customer base Global footprint and local content
 Partner to all major local and global players  High level of local content in manufacturing, purchasing
and R&D
 Top-5 customers only account for 28% of sales2)  Presence in 30+ countries with 100+ sites
 ~80% of employees outside Germany
 ~15% of employees in China, catering to local market
Notes: 1) Based on German GAAP (HGB) for 2017; BilRUG sales allocated proportionally between OE and aftermarket; 2) Based on German GAAP (HGB) for 2017; Source: Knorr-Bremse information

Confidential
5 Resilience – Attractive aftermarket business with comprehensive service
offering drives profitability and contains high future potential
Aftermarket is the growth and resilience backbone Key features
Sales CAGR (2010-2017) HGB (€bn) Aftermarket sales 2017 (€bn)

Annuity-like
15%
1.4 0.81)
▪ Regulated maintenance intervals
2.2 ▪ Leverages high installed base
13%
26% ▪ 20-30 year long relationships
10% 10%
31%
7% 34% Close to the customer
4% 4% 4.0 ▪ RVS:
56% - 36 service centres2)
40%
- 20 service locations at
customers’ premises
RVS CVS Group 2017 Spares Interchangeable parts ▪ CVS:
OEM AM OEM AM Services Non-interchangeable parts - >1,600 certified service partners
Modernisation Wear parts & service kits - >500 Alltrucks workshops
Share of aftermarket 2017 (%)
35%
share of aftermarket
Europe
42%
42%
28%
28%
Strong customer retention
▪
▪
▪
High switching costs
Focus on safety and quality
IP protection
as % of sales 2017
Americas 52% 34%
Innovative business model
Asia / ▪ New connectivity-based business models
38% 14%
Australia ▪ Preventive
▪ Predictive
Notes: Based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket; 1) Total CVS aftermarket sales and independent aftermarket sales EMEA (excl. South Africa &
Skach) as proxy for the global split; 2) Does not include service locations at customers’ premises; Source: Knorr-Bremse information

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6 Superior financial profile – Outstanding track record of growth and
profitability improvement
Strong track record of resilient and profitable growth
30% Performance Performance

pre-global post-global HGB IFRS
economic crisis economic crisis Normalisation
Chinese HS boom
25% CAGR
8% sales
2003-2017
EBITDA margin and sales
Chinese HS accident
20% Global crisis
CAGR
15% 11%
EBITDA
+660bps
10% EBITDA
margin
2003-2017
5%
0%
2003
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011
2011 2012
2012 2013
2013 2014
2014 2014
2014 2015
2015 2016
2016 2017
2017 2018
HGB IFRS
Normalised
Group sales EBITDA margin: RVS Group CVS RVS Group
EBITDA margin1):
Notes: Financials based on German GAAP (HGB) prior to 2014 and IFRS 2014-2017; Data presented in accordance with German GAAP (HGB) may not be comparable to data prepared in accordance with
IFRS; 1) Normalised margin estimate for China accident impact and recovery; Estimate based on Knorr-Bremse assumptions; Source: Knorr-Bremse information

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7 Leadership excellence – Clear vision for future value creation
Expand technology Capture opportunities

leadership position from megatrends
1 2
▪ Growth potential from new technologies ▪ RVS as natural outsourcing partner for OEMs
▪ Introduction of ADAS1), HAD2) and ▪ Win in RVS de-regulated markets
connected systems ▪ Continued market outperformance in CVS
▪ Focus on digitisation and connectivity through ADAS, connectivity and e-mobility
▪ Significant profitability improvement in ▪ Megatrends drive continued content growth
non-braking technology products
Drive internationalisation strategy

3
▪ Leverage profitable mass urban transport

opportunities, in particular in China and India
Continued cost focus ▪ Benefit from Belt and Road Initiative (BRI)
5 ▪ Increase exposure to high margin countries
▪ Set of initiatives to drive up the margins
▪ Global supply chain & unified purchasing
Grow profitable aftermarket
▪ Global process standards (KPS)3) 4
▪ Permanent cost discipline ▪ Leverage large installed base
▪ PMI in newly acquired companies ▪ Apply new business models (digital &
▪ Operating leverage data based)
▪ Close to customer
Consistent M&A and integration strategy
Medium-term target organic growth of 4.5-5.5% p.a. Target medium-term EBITDA margin
complemented by value-add M&A expansion of +150bps
Notes: 1) ADAS – Advanced driver assistance system; 2) HAD – Highly automated driving; 3) KPS – Knorr-Bremse production system; Source: Knorr-Bremse information

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Rail Vehicle Systems – Nucleus of Knorr-Bremse’s success: the leading safety
critical systems supplier for rail with a track record of market outperformance
Highlights 2017 key financials 2017 sales split4)

by region
#1 Rail brake systems
supplier globally1) €3.3bn sales Asia /
Australia
38% Europe
50%
#1 Rail entrance systems

supplier globally1) 7.3% CAGR 2010-20173) Americas
12%
by product Others
19%
#2 HVAC systems HVAC Brake

supplier globally1) €639m EBITDA (19.6% margin) 6% systems
66%
Entrance
systems
9%
~50% Global brakes market share1)
€523m EBIT (16.1% margin) by segment (OEM only)
Freight
16%
Present in 50-55% of global
installed base2)
42% aftermarket share5) Passenger
c.16k employees 84%
2.0k o/w engineers
Notes: Sales, EBITDA and EBIT based on IFRS, other figures based on German GAAP (HGB), BilRUG sales allocated proportionally between OE and aftermarket; 1) 2017 RVS market share estimates for OE
and aftersales without labour; 2) All active rail vehicles without freight cars with a minimum of one Knorr-Bremse system related to brakes, entrance systems and HVAC installed; 3) Total reported RVS sales
growth including OE and aftermarket at actual currency based on German GAAP (HGB); 4) Sales split by region based on IFRS; Other splits based on German GAAP (HGB); 5) Based on German GAAP (HGB)
for 2017; BilRUG sales allocated proportionally between OE and aftermarket;
Source: Knorr-Bremse information and internal market research
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Deep dive into RVS braking technologies of Knorr-Bremse (1/2)
Key elements of a braking system in RVS
Electronic & pneumatic/hydraulic Wheel slide

Master controller (man-machine-interface) brake control system protection system
Sanding Brake calipers & discs Compressor & air Magnetic track brakes
systems Tread brake units treatment systems Eddie current brakes
Friction material

Confidential
Deep dive into RVS braking technologies of Knorr-Bremse (2/2)
Customer-specific brake systems are provided based on a highly comprehensive product portfolio
Electronic & Pneumatic Brake Control System Air Supply Bogie Equipment Hydraulic System
Distributor Electronics EP2002 EP Compact CCB-3 Compressor AirDryer Disc and Tread brake Track Compact freight Hydraulic Hydraulic
Valve & Software caliper unit brake car brake unit suspension
Selected key
elements of a
braking system
Homologation requirement throughout
High degree of customization for all components
Multiple unit ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Multiple train types
Locomotive ✓ ✓ ✓ ✓ ✓ ✓ ✓
Freight car ✓ ✓ ✓
Passenger car ✓ ✓ ✓ ✓ ✓
Trams / LRV1) ✓ ✓ ✓ ✓ ✓
Note: 1) LRV – Light rail vehicle; Source: Knorr-Bremse information

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Global Tier-1 partner of choice for OEMs and rail operators in all regions
Top 10 customers 2017 (% of sales) Other major Knorr-Bremse customers

>>300 Relevant rail operator customers
15% Europe / Africa
9%
Locomotive & Car

8%
Research Institute
Americas
5%
3%
Asia / Australia
3% Top 10 = 52% of total
Indian Railways RVS sales 2017
3%
3% >50 Relevant OEM customers
2%
2%
OEMs Rail operators
Notes: Sales based on German GAAP (HGB); Share of top 10 customers as % RVS sales 2017 may not add up due to rounding; Source: Knorr-Bremse information

Confidential
Knorr-Bremse is the global #1 across key product categories
Global market share 20171) (% of sales)
Brake systems (66% of RVS sales) Entrance systems (9% of RVS sales) HVAC (6% of RVS sales)
King
#1 #1 ~15%
Others
~35% ~25% #2
~50%
Market size Others Market size Others Market size

~15%
~€4bn ~55% ~€1bn ~€1bn
~60%
~20% ~10%
~15%
Market share by region Market share by region Market share by region
#1 #1 #1-2
Europe ~50% Europe ~40% Europe ~20%
(Joint)
#1 #2 #1-2
Americas ~45% Americas ~15% Americas ~25%
(Joint)
Asia / Australia #1 Asia / Australia #2 Asia / Australia #2

~45% ~15% ~10%
Notes: Based on German GAAP (HGB); Market share estimates are rounded to the nearest multiple of 5%; For competitors a price estimate was used; 1) Market share estimates for OE and aftermarket
without labour. Wabtec includes Faiveley; Source: Knorr-Bremse information and internal market research

Confidential
Knorr-Bremse is the only supplier worldwide certified for all local standards
and norms
Market protected by unique level of complexity … ... and long homologation time for each component
Typical time-to-market
Major global standards
4 Standard1) Key regions Development (yrs)2) Certification (yrs)2)
4 4
Unique configurations for vehicle types
7
Brake subsystems
3 GOST 4 3
Safety-critical components >100

3 1
Country- and customer-specific variants Multiple
3 1
✓ 100k active brakes articles to homologate
Combination of IP ownership and homologation creates high barriers to entry
Notes: 1) GOST based on actual recent homologation process, other norms based on expert estimates by Knorr-Bremse; 2) Estimated average required ″time-to-market″ of a basic freight car solution

Confidential
Significant historical market outperformance through consistent focus on
fastest growing markets and segments especially in aftermarket
Strong growth both in OE and AM Significant outperformance of rolling stock market

CAGR (2010-2017)
RVS sales by type (HGB, €bn, 2010-2017)1) CAGR (2010-2017) RVS sales2) (HGB) and market
Total
3,3 3,3 7.3% 3.7x
3,0 3,0
7.3%
AM
1,2
1,4 14.7%
1,0 M&A
1,2
2,2 2,2 2,2
2.8x
2,0
0,7 0,7 0,8

0,5
OE Organic 5.7%
2,0 2,1 ~2%

1,8 1,9 3.8%
1,5 1,5 1,5 1,4
Underlying Rolling Stock Market

2010 2011 2012 2013 2014 2015 2016 2017 (external view)3)
Notes: 1) Sales based on German GAAP (HGB), BilRUG sales allocated proportionally between OE and aftermarket; 2) Based on German GAAP (HGB); 3) Underlying OE rolling stock and aftermarket volume
as defined by Roland Berger (July 2018). Market CAGR based on 2010 to 2016 market volumes; Source: Knorr-Bremse information and internal market research; Roland Berger - Analysis of rail vehicle
market report (July 2018) for growth rate of underlying rolling stock market

Confidential
Local growth strategies to optimally capitalise on positive rail infrastructure
developments in China and India
CHINA INDIA
 Large installed base and trusted relationships  Entrepreneurial culture with close
with leading Chinese railway players alignment on key customers’ needs
Footprint
Footprint
Nankou
Daxing
Wuxi
Qingdao
Suzhou
7 Plants Faridabad
2 Plants
Pune
Guangzhou
Jiangmen
799
Sales (€m)1)
Sales (€m)1)
613
Presence 126
7 7 28
2005 2010 2017 2018 2022 2005 2010 2017 2018 2022
FTE
FTE
241 2,756 3,039 176 373 918
 Infrastructure improvements prioritised  Electrification and modernisation

Mainline network  Aggressive network growth plans  Dedicated and high-speed freight corridors planned
(Very) High Speed vs.  Strong HS2) train and VHS3) development  Limited HS2) train rail network
Regional & Commuter  Underdeveloped R&C4) train network  Developed EMU6) commuter network
 Steady growth, doubling every 5 years  Networks to grow mainly in 6 mega-cities
Metros  In 3rd tier cities only monorail and LRV5)  Metros currently only in mega-cities
 Localisation political requirement  No political requirement (but 50% local

Localisation content preferred)
requirements  Local ownership & technology control  Local value added, local employment
Notes: Sales based on external (third party) sales German GAAP (HGB); FTE includes leasing (EOP); TCI (Technology Centre India) allocated to India; 1) Converted at actual average FX rates; 2) HS – High-
speed; 3) VHS – Very high-speed; 4) R&C – Regional and commuter; 5) LRV – Light rail vehicle; 6) EMU – Electric multiple unit;
Source: Knorr-Bremse information and internal market research; Chinese 13th 5-year-plan

Confidential
Kiepe Electric acquisition constitutes latest milestone for Knorr-Bremse to become a
complete systems supplier for RVS and CVS
FULL RVS SYSTEM

COMPETENCES
Integrated and connected systems and aligned strategy

 Knorr-Bremse now a complete systems supplier
 Outstanding competences in traction equipment for e-vehicles
 Aligned strategies between Knorr-Bremse and Kiepe
Further synergies between RVS and CVS

 Transfer of product knowledge from RVS into CVS
 Strong synergies between RVS and CVS in traction technologies
 Kiepe caters to both RVS and CVS customers EXCELLENCT CVS
COMPETENCES
FOR E-VEHICLES
Eco-efficiency
 New growth opportunities given increasing demand for electrification CVS
 Rail vehicle modernisation for mass urban transport
Increased systems value offered

 Supply up to ~35-40% of the vehicle value vs. ~15% without Kiepe in LRVs
Source: Knorr-Bremse information and estimates

Confidential
Knorr-Bremse RVS key takeaways
#1
▪ Brakes1)
Market #1
1 Global market leader ▪ Entrance systems1)
leadership #2
▪ HVAC1)
Technology 9 of 10 Top innovations2)

2 A strong technology innovator shaping the industry
leadership
High GOST
3 Only supplier certified for all standards and norms globally
barriers to entry
100k active brakes articles to homologate
CAGR (2010-2017)
3.7x
Strong 7,3%
4 Long track record of growing faster than the market 3) ~2%
growth profile
Underlying Rolling
Stock Market
5 Resilience Customer / regionally balanced with sizeable and growing aftermarket 42% 2017 aftermarket share4)
2017 margin5)
19.6% 16.1%
6 Profitability Outstanding profit margins and track record of margin expansion
EBITDA margin EBIT margin
Notes: 1) 2017 RVS market share estimates for OE and aftersales without labour; 2) Knorr-Bremse management view; 3) Knorr-Bremse RVS revenue growth based German GAAP (HGB) compared to
underlying OE rolling stock and aftermarket volume as defined by Roland Berger (July 2018); 4) Based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket;
5) Based on IFRS; Source: Knorr-Bremse information and internal market research; Roland Berger - Analysis of rail vehicle market report (July 2018) for rolling stock CAGR

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Commercial vehicle systems – Knorr-Bremse is one of two global leaders
with an outstanding position in braking and safety relevant systems
CVS
Highlights 2017 key financials 2017 sales split5)

by region
#1 €2.9bn sales Asia / Australia
16% Europe
Global market position1) 50%
Americas
34%
7,600
8
out of top 8.1% CAGR 2010-20174)
patents 10 innova- Technology leader
tions2) by product (OE only)
Brake Systems & Vehicle
Fuel Efficiency8) Dynamics6)
14% (incl. Automated Driving)
€504m EBITDA (17.4% margin) Energy Supply &
71%
25%1) Global market share
Distribution7)
15%
€421m EBIT (14.6% margin) by end-market

17.3m ADB3) sold
Aftermarket OE Truck & Bus
28% 66%
c.11k Employees 28% aftermarket share OE Trailer

1.6k o/w engineers 6%
Notes: Sales, EBITDA, EBIT and respective margins based on IFRS; other figures based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket; 1) 2017 global
addressable Truck, Bus and Trailer OE market, including “Brake Systems & Vehicle Dynamics (incl. Automated Driving)”, “Energy Supply & Distribution” and “Fuel Efficiency”; excluding aftermarket; Knorr-
Bremse data based on market intelligence and experts estimate in 2017; 2) Knorr-Bremse management view; 3) Air Disc Brakes sold between 2008-2017; 4) Total reported CVS sales growth including OE and
aftermarket at actual currency, 2017; based on German GAAP (HGB); 5) Sales split by region based on IFRS; Other splits based on German GAAP (HGB); 6) Air Disc Brake, Valves / Pedal Unit, Actuators,
Foundation Drum Brake, Steering, ABS, EBS, ESP, DAS, ELC; including segment Others; 7) Compressors, Air Treatment; 8) Vibration Dampers, Engine Air Control, Transmission - Gear Actuation,
Transmission - Clutch Actuation; Source: Knorr-Bremse information and internal market research
Confidential
Complementary product portfolio provides foundation for positioning
as key integrated systems and services provider
Knorr-Bremse CVS comprehensive offering - 2017 sales by product segment (%)
Brake Systems & Vehicle Dynamics1)

(incl. Automated Driving) Energy Supply & Distribution Fuel Efficiency2)
71%¹ 15% 14%
▪ Brake System ▪ Air Treatment ▪ Engine Components
▪ Brake Control ▪ Compressors ▪ Transmission Sub-systems
▪ Electronic Levelling Control
▪ Steering
▪ Automated Driving
Notes: Sales split by product as of 2017 based on OE only; based on German GAAP (HGB); 1) Air Disc Brake, Valves / Pedal Unit, Actuators, Foundation Drum Brake, Steering, ABS, EBS, ESP, DAS,
ELC; including segment Others; 2) Vibration Dampers, Engine Air Control, Transmission - Gear Actuation, Transmission - Clutch Actuation; Source: Knorr-Bremse information

Confidential
Knorr-Bremse is the partner of choice for global OEMs with
long-standing relationships
Top 10 customers 2017 (% of sales) Years of relationship Other major Knorr-Bremse customers
13% >90
11% >30
10% >90
9% >30
5% >20
4% >90
3% >20
2% >30
Top 10 = 61% of total
CVS sales 2017
2% >60
2% >5
Notes: Based on German GAAP (HGB); share of top 10 customers as % CVS sales 2017; Source: Knorr-Bremse information

Confidential
Knorr-Bremse is a global leader in safety-relevant products
across key geographies
Global market share 20171) (% of sales)
Brake Systems & Vehicle Dynamics (71%)2) Energy Supply & Distribution (15%)3) Fuel Efficiency (14%)4)
(incl. Automated Driving)
#1 #1 #1
Others Others
Others 23% 25% 54% 23% (Joint)
58% 40%
Market size Market size Market size

€4.6bn €0.6bn €0.9bn
#1
19% 35% 23% (Joint)
Market share by region Market share by region Market share by region
Europe 32% #1 Europe 58% #1 Europe 20% #2
Americas 37% #1 Americas 42% #2 Americas 11% #2
Asia / Australia 8% #2 Asia / Australia 23% #2 Asia / Australia 38% #1
Notes: 1) 2017 addressable Truck, Bus and Trailer OE market, including “Brake Systems & Vehicle Dynamics (incl. Automated Driving)”, “Energy Supply & Distribution” and “Fuel Efficiency”; excluding
aftermarket; Knorr-Bremse data based on market intelligence and experts estimate in 2017; 2) Air Disc Brake, Valves / Pedal Unit, Actuators, Foundation Drum Brake, Steering, ABS, EBS, ESP, DAS, ELC;
including segment Others; 3) Compressors, Air Treatment; 4) Vibration Dampers, Engine Air Control, Transmission - Gear Actuation, Transmission - Clutch Actuation; Source: Knorr-Bremse internal market
research
Confidential
Historical market outperformance with strong position to take further
advantage of the highly attractive and stable aftermarket opportunity
Strong growth both in OE and AM Strong market outperformance

CAGR (2010-2017)
CVS sales by type (HGB, €bn, 2010-2017)1) CAGR (2010-2017) CVS sales1) (HGB) and market
Total
2,9
8.1% 6.0x
2,5 2,5 AM 8.1%1)

0,8
4.0% M&A
2,2 5.6x
2,1 2,1 2,1
0,7 0,8
0,7
1,7 0,6
0,6 0,6
Organic
0,6
OE 7.5%
2,1 10.1%
1,7 1,8
1,4 1,4 1,4 1,5
1,1 1.3%
IHS truck production rate2)

2010 2011 2012 2013 2014 2015 2016 2017
Notes: 1) Based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket; 2) Global Truck and Bus market excluding aftermarket and Trailer; Source: Knorr-Bremse
information and internal market research; IHS for truck production rate
Confidential
Conversion in legislation drives the global adoption of technologies provided by
Knorr-Bremse
Convergence of legislation creates growth opportunities for products respectively Case studies
Traffic Safety – Vision Zero Accident 1 Blind Spot Assistant
ESC,
FCW,
ADB EBS  New framework for general safety and protection of
AEBS, dangerous dangerous
ESC
LDWS,
LKAS, goods goods vulnerable road users2)
vehicles veh.>12t
Product solutions
AEBS
 Mandatory measures for trucks:
2016-2019 2019-2022 2020 2021-2022
̶ Blind Spot Information System
General
̶ 3 Reversing Safety measures
Automated Safety ̶ Tire Pressure Monitoring System
ABS ESC LDWS Steering Regu-
Functions lation
2 Air Disc Brake
2016 2017-2019 2019-2021 2020 2021
 Increase safety of dangerous goods vehicles

AEBS V2X Monitor
& ESC ABS AEBS ESC System
light
LDWS vehicles
for indirect
vision  2020 onwards: Need to be equipped with disc brakes3)
2016-2018 2017-2019 2018 2019-2020 2020-2022 2021 2022  Affects both, truck & trailer brakes
2016 2017 2018 2019 2020 2021 2022
3 Engine Air Management Valves & Dampers

Emission standards
CHINA Rota CHINA

EPA 16 EPA 17
V 20301) VI
EPA 21  Increasing legislative emission standards
2016 2017 2018 2019-2020 2020 2021  Technology as enabler to achieve norms
BS VI
 supports fulfilment of strictest standards
EURO
BS IV (Euro
V
VI)
2016 2016-2017 2019-2021

Fuel Efficiency – Vision Zero Emission Legislative decisions
foster demand for
Emission standards Traffic and safety Automated Driving Expected/in discussion Knorr-Bremse solutions
Notes: 1) Approved in May 2018, government intends to stimulate efficiency & vehicle safety; 2) European Commission: COM(2018) 286 & Vulnerable Road Users Directive (VRUD); 3) General Administration of
Quality Supervision, Inspection & Quarantine of People’s Republic of China, technical specification for safety of power driven vehicles operating in roads; Source: Knorr-Bremse internal market research;
Roland Berger market study: Trends in the truck & trailer market (August 2018)

Confidential
Knorr-Bremse is clear market leader in Air Disc Brake with further
strong market growth potential
Knorr-Bremse to benefit from strong ADB1) growth globally … … with growth opportunities independent of TPR …
1
Competitive landscape2) Market size2)
✓
North America
Estimated units indexed to 100% (2017) Value (€m)  Growth opportunity in geographies predominantly using drum brakes
 Driven by convergence of legislation and higher safety standards ✓
12%  Independent of underlying truck production market growth
✓
321
162 … and next generation ADB1)
2
A B C 2017 2023
Defined fields of action as enablers for growth & upside protection
 Fuel Saving and Emission Reduction
 Predictive maintenance
8%  Enablers for Highly Automated Driving
China
Trends to be considered for next Air Disc Brake generation

113 184
Emission Reduction
Active Caliper Release Brake Condition
D E F G A 2017 2023 (ACR) Monitoring
New ADB1)
Connectivity
▪ Reduced fuel generation ▪ Monitoring is a
consumption HAD3) prerequisite
2%
▪ Less wheelend Synact NexTT ▪ Wireless
Europe
drag torque connection

575 650
▪ Easy to apply for ▪ Multi sensor
OE & aftermarket + HAD3) approach +
A B H C 2017 2023 Automated drive and condition-based maintenance ready
% CAGR 2017-2023
Notes: 1) Air Disc Brake; 2) Indicative estimates based on Knorr-Bremse market intelligence and interviews with experts; 3) Highly Automated Driving; Source: Knorr-Bremse internal market research

Confidential
Automated Driving: Knorr-Bremse is a technology leader in Driver
Assistance Systems
Timeline of Knorr-Bremse’s product innovation in Driver Assistance Systems Knorr-Bremse capabilities
2000 2010 units Cumulative deliveries
Forward collision Stationary Integration with AEBS¹) ✓

Mitigation
> 20 years of experience

Collision
warning object warning brake controller fusion
✓ ~ 600k units installed base globally

210k
✓
Adaptive Cruise
units3) Technology leadership:

Throttle and ACC²) with
(e.g. Brake Systems, Steering, ADAS4))
Control
retarder control brake control ACC²) fusion
✓ System know-how & system supplier

Warning System
✓
Lane Departure
Lane Driver Safety direct Lane departure Broad customer base

detection warning integration prevent
250k
units ✓ Retrofit initiative in North America
✓ Competence in driving dynamics

Object Object Cost and detection Turning
Blind Spot
Warning
detection tracking improvement Assist

110k ✓ Know-how in vehicle model simulation
units
Notes: 1) Advanced Emergency Braking System; 2) Adaptive Cruise Control; 3) Collision Mitigation and Adaptive Cruise Control are based on same hardware today, but applications use different software; often
sold in a bundle; 4) Advanced Driver Assistance Systems; Source: Knorr-Bremse information

Confidential
Knorr-Bremse with clear strategy to be leading system supplier for
Automated Driving
Redundancy
Steps Action Provider 4 concept
PERCEPTION
Perception Complete environment perception of truck & trailer Partner
+ Safety relevant
1 functions backed up by
redundancy:
▪ Control
▪ Sensors
DECISION
Decision Continuous situation analysis for motion planning Partner ▪ Steering
Situation analysis + ▪ Braking
2 [Pic]
HAD 1)
ECU2) Trajectory planning ▪ Electric on-board net

Truck Motion Control (GSBC3))
Actuation
ACTUATION Coordinated interaction of actuators for vehicle dynamics
3 Continuous vehicle
dynamic control
Actuators physically perform actions such as ensured
applying brakes, steering or changing lanes
System supplier – one interface for customers as the system integrator

5 Optimally designed for Cost efficient redundant system Profound ADAS4) and truck dynamics expertise
commercial vehicle needs architecture as solid basis for HAD1) up to level 5
Notes: 1) Highly Automated Driving; 2) Electronic Control Unit; 3) Global Scalable Brake Control; 4) Advanced Driver Assistance Systems; Source: Knorr-Bremse information

Confidential
Knorr-Bremse teams up with Continental to become a leading Automated
Driving system supplier for commercial vehicles
 Function know-how based on passcar experience & carryover from passcar  Truck- & trailer-specific vehicle dynamics: Vehicle guidance and stability control
 Hardware for localization (radar, camera) and Automated Driving Control Unit  Fail-operational architecture
 Commercial vehicle-specific function development, application and release
Perception Decision Actuation
Redundancy
System integration
Consumer Benefits Joint Project Scope

▪ Industry benchmark perception decision and actuation from the one source ▪ Development of systems, components and functionality for Automated Driving
▪ Superior performance through full-system approach ▪ Validation and release of complete highly Automated Driving systems
▪ Cost-optimized systems for commercial vehicles ▪ Collaboration in joint project house

Confidential
Internationalisation: Global growth strategy focuses on North America
penetration as well as Chinese and Indian market share expansion
Exploit leading position Leverage local presence Expand market share

Footprint
Elyria Dalian
Huntington Shiyan
Shanghai Pune1)
Acuña Bowling
Green Chongqing
(€m)2) (€m)2) (€m)2)

10% 38% 2%
Total sales
925
266
22 26
489
28
2010 2017 2022 2010 2017 2022 2010 2017 2022

FTE
%
2,174 3,364 225 1,133 2813) 6073) CAGR 2010-2017
 Bendix acquisition as enabler for footprint expansion  Intensive localisation with key local players  Strong business growth with major Indian customers
 Capitalisation of technological expertise and brand  Capitalise on strong position in OE channel  Expansion of product portfolio
 Increased content per vehicle (technology as driver)  Increased content per vehicle (technology as driver) (dampers, drum brakes)
 Strong potential for growth from ADB roll-out (12%  Strong potential for growth from ADB roll-out (8%  Localisation programme creating scale effects
CAGR 2017-2023)4) CAGR 2017-2023)4)
 Continuous cost structure improvements  Expand network to establish truck aftermarket
 Exploit position in electric bus
Notes: Based on German GAAP (HGB); FTE includes leasing (EOP) 1) Plant under expansion; 2) Based on external third party sales; 3) TCI allocated to India; 4) Indicative estimates based on Knorr-Bremse
market intelligence and interviews with experts; Source: Knorr-Bremse information
Confidential
Knorr-Bremse CVS key takeaways
#1
▪ Brake Systems & Vehicle Dynamics1)
Market #1
1 Global market leader ▪ Energy Supply & Distribution2)
leadership #1
(Joint) ▪ Fuel Efficiency3)
Technology
2 A strong technology innovator shaping the industry 8 of 10 Top innovations4)
leadership
Brake Systems & Vehicle Dynamics1),5)

High ~4.0x
3 Only two suppliers with global technological know-how and capabilities
barriers to entry
Competitor #3
New ADB6)
Strong
4 Long track record of growing faster than the market generation
growth profile
5 Resilience High aftermarket share and content per vehicle growth 28% 2017 aftermarket share
2017 margin7)
17.4% 14.6%
6 Profitability Outstanding profit margins and track record of margin expansion
EBITDA margin EBIT margin
Notes: EBITDA and EBIT margins based on IFRS; aftermarket share based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket; 1) Incl. Automated Driving; Air Disc
Brake, Valves / Pedal Unit, Actuators, Foundation Drum Brake, Steering, ABS, EBS, ESP, DAS, ELC; including segment Others; 2) Compressors, Air Treatment; 3) Vibration Dampers, Engine Air Control,
Transmission - Gear Actuation, Transmission - Clutch Actuation; 4) Knorr-Bremse management view; 5) 2017 global addressable Truck, Bus and Trailer OE market, including “Brake Systems & Vehicle
Dynamics (incl. Automated Driving)”, “Energy Supply & Distribution” and “Fuel Efficiency”; excluding aftermarket; 6) Air Disc Brake; 7) Based on IFRS; Source: Knorr-Bremse information

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
R&D is at the very core of Knorr-Bremse’s DNA
With over 10,000 patents1) 5 state of the art R&D Focussed & disciplined
Knorr-Bremse secures the future centres globally complemented by approach ensuring highest
innovation roadmap. Largest patent 23 local engineering entities with
efficiency
portfolio in the industry2) customer proximity
More than 80% of the most industry-

Significant synergies Extensive external network with over
defining innovations over the last
between RVS and CVS 15 R&D partnerships
decades came from Knorr-Bremse
327 newly filed patents in 2017, out of ~50% of Knorr-Bremse’s 6% of sales in R&D3) –
which the majority in automated driving &
R&D efforts target new Knorr-Bremse invests more in future
connected systems
technologies and future technologies than any of its competitors
related themes
Notes: 1) Granted and applied patents; 2) Based on published number of patent families (granted and applied); 3) Knorr-Bremse 2017 R&D financial information based on German GAAP (HGB)

Confidential
Significant R&D portfolio synergies between RVS and CVS …
Vehicle control & Energy Supply &

Services Chassis systems Braking Driving
automated driving Distribution
Telematics (iCom Driver assistance (ACC, Hydraulics Wheelend/ bogie equipment Conventional actuation Compressed air
maintencance, iTAP-push) AEBS, ASR, LEADER)
Remote & on-demand Motion control Electronics Disc brake Combustion engine Compressed air generation
maintenance and diagnostics components
Training drivers/ work shops Brake control HMI & driver information Brake actuator Electronic actuation (Kiepe) Air treatment
(Safety direct, dimulator) (iTAP, etc.)
Spare parts ABS / wheel slide protection Level control Wear-resistant brakes E-motor
Remanufacturing Emergency brake Electronic board net / Charge Electrodynamic brakes / Converter / traction control
regulation (Kiepe) recuperation
Energy measurement V2X communication Pantograph (Kiepe) Tread brake Automated manual
transmission
Ticketing Vehicle control Windscreen wiper and wash Electromagnetic brake

(TCMS / UCS) systems system
Transport and logistics Brake distance management/ Entrance systems / doors Eddy current brake
optimisation sanding
RVS & CVS
Dynamic driving control Air conditioning Drum brake & adjuster
(ESP)
RVS
Vehicle dynamics Conventional steering Exhaust brake CVS
Torque overlay steering

system
In >50% of Knorr-Bremse’s portfolio the underlying

technology can be applied to both divisions

Confidential
…resulting in high synergies and cross-proliferation
Cross-divisional R&D examples
1990: Technology transfer for ADB 1992:

Air Disc Brake from RVS to CVS Air Disc Brake
1985: RVS Screw Compressor 2011:

Screw technology adopted for CVS Screw
Compressor applications Compressor
Collision Avoidance for RVS

2021/2022: based on CVS system know- 2008:
Collision Collision
Avoidance how within the field of sensor Avoidance
technology
✓ Faster time to market ✓ Higher cost benefit ✓ Focused customer solutions

Confidential
Leveraging Knorr-Bremse’s synergies & partnerships: centres of excellence as
basis for sustained technology leadership
Americas, Σ ~413 FTE1) Europe, Σ ~2,382 FTE1) Asia, Σ ~926 FTE1)

Wülfrath
Schwieberdingen Düsseldorf
Melksham
Berlin
Munich Aldersbach
Watertown
Elyria Lyss Dalian
Getafe Budapest Sakado
Faridabad
Pamplona Suzhou
Lisieux Vienna Shanghai
Buccinasco Arcore Chongqing
Holzkirchen Kematen Pune
Joint development &

production site Itupeva
Sydney
R&D center in R&D center

Schwieberdingen in Budapest
R&D center in
• Opened in 1997 Munich • Opened in 1999
• CVS engineers: ~160 • RVS engineers: ~230 R&D center
R&D
• Opened in 2016 • CVS engineers: ~190 in Pune
center in Elyria
• ~€90m investment
• Opened in 2013
• Opened in 1942 • 17,000m² facility with • RVS engineers: ~180
• CVS engineers: ~180 100 state-of-the-art
• CVS engineers: ~170
testing rigs
• RVS engineers: ~490
• CVS engineers: ~160
Knorr-Bremse’s innovations are supported by a network of specialized development centres

with joint production and R&D
Notes: 1) FTE refers to number of employees in R&D function (includes engineers, technicians, merchants) EOP 2017, TCI allocated to Asia

Confidential
Knorr-Bremse deploys structured and effective processes to drive innovation
results
Knorr-Bremse R&D process

1 2 3 Capitalisation
Smart Project ≥ €500,000 and/or ≥ 7,500h
Idea Business
Business
Description Story
Case
Detailed Production
Idea Potential Requirement Solution
design Realisation to system
generation evaluation concept preparation
planning validation
Authorisation of proof of Authorisation of development

concept by Executive Board by Executive Board
Proof of concept Development

Proof of Concept and
Development
Idea generation Idea screening
Idea Generation Idea Screening Application in series
Development & support
Development & Support testing
and Testing
Knorr-Bremse’s innovations are designed for clear customer impact… …and maximum economic benefit for Knorr-Bremse
Optimisation of TCO1) All projects assessed based on NPV2)
Reduction of energy consumption, noise, weight Prioritisation of projects according to IRR3)
Safety & reliability Optimise time to market
Connectivity, wireless solutions, ethernet Short payback time of investment
Adaption to regulation Ability to leverage innovation across customer portfolio

Notes: 1) TCO refers to total cost of ownership; 2) NPV refers to net present value; 3) IRR refers to internal rate of return; Source: Knorr-Bremse information

Confidential
Close cooperation with customers & strategic partners
GOVERNMENT PARTNERSHIPS VC PARTNERSHIPS WITH STARTUPS

▪ Shift2Rail: EU supported initiative amongst ▪ Partnerships with accelerators
suppliers and OEMs to jointly develop an ▪ Investment in start-ups
efficient transportation system
▪ VDA1) participation in ~20 committees ✓ Technology access
✓ Design of norms/standards ✓ R&D acceleration
✓ Early anticipation of industry
trends
✓ Grants/subsidies
Acceleration of PRODUCT
INNOVATION
in digital age requires
DIVERSE PARTNERSHIPS
PARTNERSHIPS WITH UNIVERSITIES to outperform competitors JVS WITH OEMS / TECHNOLOGY
▪ Research cooperations PARTNERS
▪ 18 joint ventures globally
✓ Access to future talent
▪ Joining complementary competences to
✓ Scouting of new extend product and service lines, and
technologies at minimal cost capacities
✓ IP protection
✓ Local presence
✓ Flexible solutions for customers
Countries Knorr-Bremse is present
Notes: 1) VDA - Verband der Automobilindustrie (German Association of the Automotive Industry); Source: Knorr-Bremse information

Confidential
Knorr-Bremse significantly outspends competition in R&D, translating into
clear technology leadership – the backbone for future growth
Knorr-Bremse invests more in R&D1) Knorr-Bremse has a larger patent portfolio than its peers
Portfolio size based on patent families (public)
5.8% 6.2% 2.5% 5.2% 4.4%
>10,000 individual
359 2.755 patents3)
207
152
123 978
79 720
2) 2)
RVS CVS
2017A R&D as % of sales
Knorr-Bremse has been consistently able to translate its R&D investment into pioneering “first to market” innovations
 High quality and amount of patents ensure competitive

advantage
9 out of 10 of 8 out of 10
the most industry- of the most  Investment in future top line growth
defining industry- defining
innovations4) come innovations4) come  Maximum alignment to megatrends
from Knorr- from Knorr-
Bremse Bremse  Excellent R&D capabilities (patents, engineers, process
efficiencies)
Notes: €/USD conversion 0.83; 1) Knorr-Bremse R&D financial information based on German GAAP (HGB), R&D ratio as reported in annual reports; 2) PF Faiveley and excl. GE Transportation acquisition; 3)
Granted and applied patents; 4) Information as per Knorr-Bremse management view, for reference see slide 28 and 56; Industry defining are considered to be the top 10 innovations in the past 30 years in the
rail and commercial vehicle industry; Source: Knorr-Bremse information; 2017 annual reports of Wabtec / Faiveley and WABCO; PatentSight

Confidential
Knorr-Bremse focuses resources on the most important future
technologies
Knorr-Bremse’s R&D spend has a balanced split between customer and proprietary innovation projects
2017 figures
Software Digital ▪ Success and growth in OE driven by ability
solutions to provide customer specific solutions
Future
product ▪ Focus on complex high value-add projects
development ▪ Project pricing reflects upfront R&D
spending
▪ Enables customer to outsource entire
Specific Electronics / Mechanical systems engineering
customer mechatronics solutions
projects
Our focus is on future

R&D allocation1) R&D spend allocation1)
technologies and on
Energy supply & Fuel
complex customer
distribution efficiency projects where Knorr-
Future Bremse delivers a high
product
Steering
value-add
development
▪ Disproportionate investments in Brake
Control and Automated Driving (11 % of
Other /
Brake sales4))
serial Brake control &
support systems ▪ Targeted R&D investment focused on
Automated Driving
key future technologies
R&D allocation2) R&D spend allocation3)
Notes: 1) Approximation based on Knorr-Bremse management view; 2) Based on hours spent in 2017; 3) Based on R&D expense in 2017 (German GAAP (HGB)); 4) R&D expense in % of sales in 2017 for
Brake Control and Automated Driving (German GAAP (HGB)); Source: Knorr-Bremse information
Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Review of Knorr-Bremse financial profile
Track record of sustainable growth and margin

1
improvement
2 High degree of earnings resilience & visibility
3 Focus on quality of earnings and returns
4 Strong balance sheet & financing structure

Confidential
1 Track record of strong and sustainable top-line growth …
Historical sales1)2) by division

(€m) CAGR2)
2005-17 2010-17 2016-17
Group
6.154
7.0% 7.5% 12.5%
5.824
5.471
5.206 5.217
2.891 4.2% 7.9% 16.0%

4.241 4.300 4.303 2.492
2.493
2.228 2.228
3.712
3.384
3.251
3.121 2.070
2.068 2.098
2.743 2.761
1.701
1.975
1.966
1.968 1.221
1.773
3.331 3.260
2.982 2.993 2.979 10.4% 7.0% 9.4%
2.024 2.187 2.217 2.247
1.431 1.553
1.174 1.304
991
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 2015 2016 2017
German GAAP Transition2) IFRS

RVS CVS
Notes: Divisional historic figures do not add up to group sales excluding consolidations/other; 2) 2014 represents the first year that Knorr-Bremse prepared its financial statements in accordance with IFRS.
1)
Prior to 2014, financial statements were only prepared in accordance with German GAAP (HGB). IFRS differs in certain aspects from German GAAP (HGB), and accordingly data presented in accordance
with German GAAP (HGB) may not be comparable to data prepared in accordance with IFRS; Source: Knorr-Bremse information

Confidential
1 … combined with disproportionate EBITDA growth …
Historical EBITDA1)2) profitability

(€m) CAGR2)
21,8%
20,3% 2005-17 2010-17 2016-17
19,0% 19,2%
18,1% Group
15,7% 15,7%
14,2% 14,6% 10.2% 11.3% 6.0%
12,7% 13,2% 13,5% 12,4% 1.269
9,7%
1.116
1.060 1.052
987 468
349 504
426 7.1% 14.3% 18.3%
338
667 678
628
528
264 290
438 420 257
410
349 198 797
691
268 634 624 639
247 258 230 13.4% 9.6% 2.5%
222 61
379 354 389
336
150 178 193 212
141
2005 2006 2007 2008 2009 2010 3) 2011 2012 2013 2014 2014 2015 2016 2017
HGB IFRS
German GAAP Transition2) IFRS
RVS CVS EBITDA Margin (%)
Notes: 1) Divisional historic figures do not add up to group EBITDA excluding consolidations/other; 2) 2014 represents the first year that Knorr-Bremse prepared its financial statements in accordance with IFRS.
Prior to 2014, financial statements were only prepared in accordance with German GAAP (HGB). IFRS differs in certain aspects from German GAAP (HGB), and accordingly data presented in accordance with
German GAAP (HGB) may not be comparable to data prepared in accordance with IFRS; 3) EBITDA 2010 including extraordinary expenses due to BilMOG; Source: Knorr-Bremse information

Confidential
1 … all supported by strong aftermarket sales growth
RVS – Aftermarket sales (2014-2017)1) CVS – Aftermarket sales (2014-2017)1)

(€m) (€m)
CAGR 12.6% CAGR 5.2%
1.387
1.205 1.218
817
971 762
743
701
2014 2015 2016 2017 2014 2015 2016 2017
Notes: 1) Based on German GAAP (HGB); BilRUG sales allocated proportionally between OE and aftermarket; Source: Knorr-Bremse information

Confidential
1 RVS – Sales development driven primarily by Europe and China with
profitability reflecting regional margin mix dynamics
Regional sales development1)2) EBIT2)

(€m) (€m)
2014-17 2014-17
CAGR: 2.9% CAGR: (6.3%)
3.331
3.260
40 24 (12.6%) 21,7%
21,3%
2.982 2.993 435 2.979 17,9% 18,4%
370 6.1% 16,1%
36 36 44 14,6%
306 310 358 724
636
2.247
28 1.230
(3.9%) 548
275 1.506 534 523
1.386 1.386 1.192
842
329
1.635 9.1%
1.259 1.348 1.385
1.252
1.100
2013 2014 2014 2015 2016 2017 2013 2014 2014 2015 2016 2017
German German
IFRS IFRS
GAAP GAAP
Europe Asia/Australia North America EBIT margin (%)
South America % Regional CAGR
Notes: 1) 3rd party historic regional sales figures do not add up to divisional sales excluding IC sales; 2) 2014 represents the first year that Knorr-Bremse prepared its financial statements in accordance with
IFRS. Prior to 2014, financial statements were only prepared in accordance with German GAAP (HGB). IFRS differs in certain aspects from German GAAP (HGB), and accordingly data presented in
accordance with German GAAP (HGB) may not be comparable to data prepared in accordance with IFRS; Source: Knorr-Bremse information

Confidential
1 CVS – Sales growth driven by strong momentum across
key regions coupled with significant margin expansion
Regional sales development1)2) EBIT2)

(€m) (€m)
2014-17 2014-17
CAGR: 9.1% CAGR: 13.2%
2.891
69 (11.2%)
2.492 2.493
16,0%
60 55
2.228 2.228 924 7.3% 14,6%
14,4%
2.070 99 99 13,1%
113 783 12,5% 421
932
398
11,2%
748 748 358
613 461
28.9%
362 291
282 278
195 215 215
232
1.437 7.2%
1.216 1.291
1.137 1.165 1.165
2013 2014 2014 2015 2016 2017 2013 2014 2014 2015 2016 2017
German German
IFRS IFRS
GAAP GAAP
Europe Asia/Australia North America EBIT margin (%)
South America % Regional CAGR
Notes: 1) 3rd party historic regional sales figures do not add up to divisional sales excluding IC sales; 2) 2014 represents the first year that Knorr-Bremse prepared its financial statements in accordance with
IFRS. Prior to 2014, financial statements were only prepared in accordance with German GAAP (HGB). IFRS differs in certain aspects from German GAAP (HGB), and accordingly data presented in
accordance with German GAAP (HGB) may not be comparable to data prepared in accordance with IFRS; Source: Knorr-Bremse information

Confidential
2 Top-line visibility supported by high order intake and
order book
Order intake 2014-171)2) Order book 2014-172)3)

(€m) (€m)
1.1x 1.0x 1.0x 1.1x 69% 59% 67% 68%
1.0x 1.0x 1.0x 1.1x 44% 40% 43% 46%
1.1x 0.9x 1.1x 1.1x 87% 73% 87% 88%
CAGR 6.5% CAGR 5.3%
6.657
4.177
5.668 5.723
5.510
3.577 3.674
3.123 3.422
1.316
2.266 2.511 2.581 977 1.084

996
2.876
3.536 2.609 2.435 2.601
3.248 3.158 3.144
2014 2015 2016 2017 2014 2015 2016 2017
RVS CVS Book-to-bill ratio RVS CVS Order book / sales
Notes: 1) Non-GAAP metric; 2) Group figures include consolidations/other; 3) Calculated based on financial statements prepared in accordance with IFRS; Source: Knorr-Bremse information

Confidential
3 Focus on quality of earnings – a closer look at key P&L items
Key items
€m 2015 2016 2017
Net sales 5,824 5,471 6,154
% growth 11.6% (6.0%) 12.5%
Changes in inventory of finished and unfinished goods (7) (11) 39
Own work capitalised 19 21 32
Total operating performance 5,836 5,481 6,224
Other operating income 89 83 81
Material expenses (2,747) (2,571) (3,010)
1)
Personnel costs (1,272) (1,272) (1,439)
Other operating expenses (636) (669) (741)
EBITDA 1,269 1,052 1,116
Margin, % 21.8% 19.2% 18.1%
Depreciation / Amortisation (170) (166) (211)
EBIT 1,099 886 904
Margin, % 18.9% 16.2% 14.7%
Financial result (51) (45) (52)
EBT 1,048 841 852
Margin, % 18.0% 15.4% 13.9%
Income tax (337) (274) (265)
Effective tax rate 32.2% 32.6% 31.1%
Net income 711 567 587
Cash / (Net Debt) 1,094 969 836
Notes: Based on financial statements prepared in accordance with IFRS; 1) Including leased personnel; Source: Knorr-Bremse information

Confidential
3 Knorr-Bremse is a high return and cash generative business
Strong cash generation abilities Key drivers and factors

(€m)
I  ROCE normalisation along with EBIT in 2016
2.7x 2.8x 2.4x 2.5x
largely driven by China RVS HS
margins
EBIT
102%
92%  Additional margin upside from historical
76% acquisitions of low margin businesses with
959 77%
future turnaround potential
53%
49%
769 37% II  Strong asset turnover above c.2.0x
680  Consistent historical sales growth
turnover
693
Asset
38%
 Moderate decrease due to capex and
working capital growth
723 III  Recent normalisation mainly due capex

673 program and changes in net working capital
542 515 504 523 resulting from China pre-payments
456 495
450
FCF generation
346  Cash flow mirrors EBITDA development in
282 299 301
combination with low WC levels (pre-
186
payments)
 2017 impacted by extraordinary costs of

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2014 2015 2016 2017
attempted Haldex acquisition, IPO
HGB IFRS
German GAAP Transition1) IFRS preparation and IFRS conversion (total
~€30m)
Operating cash flow Cash conversion 2) FCF 3) ROCE 4) Asset turnover 5)
Notes: 1) 2014 represents the first year that Knorr-Bremse prepared its financial statements in accordance with IFRS. Prior to 2014, financial statements were only prepared in accordance with German GAAP
(HGB). IFRS differs in certain aspects from German GAAP (HGB), and accordingly data presented in accordance with German GAAP (HGB) may not be comparable to data prepared in accordance with IFRS;
2) Cash conversion defined as: (OCF - investments in fixed assets - investments in intangible assets) / net income; 3) FCF (Free Cash Flow) defined as cash flow from operations minus cash-relevant capex;
4) ROCE defined as EBIT divided by capital employed (Fixed assets + Intangible assets + Net working capital); 5) Asset turnover defined as sales divided by capital employed; Source: Knorr-Bremse information

Confidential
3 Fully invested asset base driving low capex requirements
Capex1) Net working capital2)

(€m) (€m)
4,1% 4,6% 3,8%
3,7% 14% 12% 13% 13%
239 249 47
235 52 46
192 46 44
31 45
782
31 748
710 719
208 203 190
161
2014 2015 2016 2017

Investments in tangibles Investments in intangibles % of sales
D&A
(€m) 2014 2015 2016 2017
3,4%
2,9% 3,0%
211
2,4%
170 166 43
 Increase in D&A in 2017 mainly due to the difference in fair value and the
proceeds from sale of assets held for sale resulting in additional €25m
126 30 32 impairment
16
168 4)
 Effect from step-ups3) included in amortisation are €9m in 2017, €8m in
140 134 2016 & 2015 and €1m in 2014
109
2014 2015 2016 2017

Net working capital Net working capital days NWC in % of sales
Depreciation Amortisation % of sales
Notes: Based on financial statements prepared in accordance with IFRS; 1) As per asset register, defined as investments in fixed and intangible assets incl. finance leasing; 2) Net working capital defined as
Inventory + Accounts receivables + Construction contracts with positive balances - Accounts payables - Construction contracts with negative balances - Prepayments received; 3) Step-ups from key PPA’s
(Selectron, Powertech, GT & Kiepe Electric); 4) Including €25m from impairment of assets held for sale; Source: Knorr-Bremse information

Confidential
4 Healthy capital structure with low leverage
Capital structure as of June-30, 2018 Minorities

(€m)  Total profit share 2017: €51.4m
 Bosch minorities recognised as liabilities of €379m (no P&L impact)

1,5601)
Current
93
financial
liabilities
Non-current (1.551) Low pensions liabilities as of June-30, 2018

financial 1.466
liabilities  Share of total assets: 5.5%
Compares with a net
cash position of
€836m in Dec-2017  Plan assets: €27m
19  Provision for DBO: €310m

8
 Provision for other employee benefits: €49m

Interest Cash & cash Net financial
bearing equivalents debt / (cash)
debt cash
Notes: Based on financial statements prepared in accordance with IFRS; 1) Liabilities to bank, bonds & leasing liabilities; Source: Knorr-Bremse information
Confidential
Knorr-Bremse medium term targets and dividend policy
Medium term targets
 Group organic CAGR of c. 4.5%-5.5%

- RVS c. 5-6%
Sales
- CVS c. 4-5%
 Assuming constant currencies
P&L
 Margin expansion c. 150 bps compared to 2017
EBITDA Margin - Driven by both divisions
- RVS division slightly ahead vis-à-vis CVS division
 Capex ratio in line with 2014-2017 average

Capex - RVS: c. 4% of sales
- CVS: c. 4% of sales
Cash flow
Working capital  DWC requirements expected to be in line with 2014-2017 average
 Maintain solid investment grade

Leverage
 Target leverage <1x Net debt/EBITDA, incl. post financing of acquisitions
Capital structure
Dividend  Target payout ratio of 40-50% of IFRS net income
Other Tax rate  IFRS tax rate @ ~30%

Confidential
Knorr-Bremse ticks all the boxes of a best-in-class
industrials company
Track record of organic growth market

6.5% organic sales CAGR (2010–2017)1) plus selective, value-added M&A
outperformance
Sustainable EBITDA margin range of ~18–20% (2014–2017)2)

Strong profitability & cash flow vs.
peers
Sustainable cash conversion range of ~80–90% (2014–2017)2)
Consistent high return on capital ROCE range of ~40–50 % (2014–2017)2)
Aftermarket exposure of ~30–35% of sales (2014–2017)

Proven resilience through the cycle
Well-balanced regional and divisional sales mix
Notes: 1) Based on financial statements prepared in accordance with German GAAP (HGB); Group net sales including BilRUG without acquisitions for RVS and CVS; 2) Based on financial statements
prepared in accordance with IFRS; Source: Knorr-Bremse information

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 71
9 Appendix 84
Knorr-Bremse takes active part in corporate memberships throughout the world
United Nations Global Compact (participation since 2010)
APTA - American Public UNIFE - Sustainable Transport

Transportation Association, USA Committee of the Union des Industries
Ferroviaires Européennes, BEL
VDA - Verband der Automobilindustrie

AAR - Association of American e. V., GER Working Groups:
Railroads, USA Sustainable supply chain & products
AIAG - Automotive Industry Action Railsponsible – founding member

Group, USA (sustainable rail supply chain initiative)
MEMA - Motor & Equipment

Manufacturers Association, USA VDB - Fachgruppe Umwelt im Verband
der Bahnindustrie e. V., GER
New York and New Jersey Minority APRA - Automotive Parts Remanu-
Supplier Development Council, USA facturers Association - Chairman Europe

Confidential
Achieved CSR ratings and awards
CSR Ratings Awards
Top employer
C+ 5th time in a row
Supplier
Sustainability
Award 2014
Silver Industrial
Sustainability
Supplier 2015
95%
Special Price:
“Green Award”
2018
D

Confidential
Our CR policy and focus areas

Confidential
The basis of our responsibility
Our values UN Global Compact CR Policy
• Entrepreneurship Commitment to ten basic • Comprises our understanding

• Technological Excellence principles: of Corporate Responsibility
• Reliability • Human rights • Sets down guidelines for our
• Passion • Labor standards CR focus areas
• Responsibility • Environmental protection • Points out the main focus of
• Anti-corruption our efforts to realize social
and environmental
responsibility

Confidential
Our Code of Conduct gives us guidance on how to behave responsibly towards
colleagues, business partners and authorities.
1. Based on our corporate values

and the UN Global Compact principles
2. Issued by the Board of Directors
of Knorr-Bremse AG
3. Applicable worldwide for all employees
4. Regular eLearnings for the

employees, available in 10 different
languages, including a video
statement by our CEO Klaus Deller
5. Supplemented by guidelines on
specific areas, e.g. Anti-Corruption,
Fair Competition, etc.
6. Additional Supplier Code of Conduct in

place regarding conduct with business
partners

Confidential
In 2018 Knorr Bremse selected its Core Sustainable Development Goals (SDGs)

Confidential
Our 8 material (non-financial) corporate responsibility areas
Evaluation of non-financial facts was carried out in the workshop on the basis of qualitative considerations regarding the extent of business
relevance and its impact (2018)
Sustainability
Anti-corruption and Product and system Ecological product
standards in the supply
fair competition safety design
chain
Energy and CO2 Occupational safety

Employee satisfaction Personnel development
emissions and health protection

Confidential
Knorr-Bremse’s success is built on its culture and dedicated people
Knorr-Bremse has a distinct culture and core values Diverse Workforce
Breakdown of workforce Flexibility to match demand

Western
8% 2%
10% 38%
Europe
APAC
 Company-wide flexibility
Rail
CEE/
ratio of ~14% leasing
Truck
19% Africa employees
North 40% Other
24% America 58%
LatAm/
Mexico
 Target ratio range is 10-15%
Attractive age2 and functional distribution

General Management 1%
17% 19% Corporate Functions 1%
15% Human Resources 1%
Project Management 2%
Entrepre- Passion Reliability Respon- Techno- 12% 11% Information Technology 2%
Industrial Engineering 2%
neurship sibility logical 10%
Finance/Controlling 3%
excellence 7% Purchasing 3%
6% Administration/Services 4%
Focus on development Quality Management & HSE 6%
3% Sales/Marketing 9%
1% Logistics and SCM 10%
Research/Development 15%
Manufacturing/Production 41%
≤20 21-25 26-30 31-35 36-40 41-45 46-50 51-55 56-60 > 60
Reliable and potent workforce Strong employer branding Employee satisfaction Female representation
 <3% absenteeism rate¹

Average manager  ~20% more female employees
 Trustful relationships with rating by than industry average
employees 5th time 2nd time 5th time employees 55% of votes
in a row in a row in a row >5.0/6.0
4.8/6.0
Note: All figures based on EOB 2017; ¹ Sickness rate = Sickness days / Total working days; based on top 20 companies according to FTEs and weighted by number of employees; ² Based on SAP data
where available due to personal data and privacy regulations (~60% of the workforce)

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Share data
Share data
Type of share Bearer shares with no-par value
Bloomberg ticker KBX
Reuters ticker KBX.DE
German security identification number (WKN) KBX100
ISIN DE000KBX1006
Shares outstanding as at December 31, 2017 161.200.000
Notes: 1) As at January 2018.

Confidential
Bond Data
The Corporate Bonds of Knorr-Bremse AG
Security Identification Number A2LQP5 Security Identification Number A2DARP
International Securities Identification Number XS1837288494 International Securities Identification Number XS1531060025
Issuer Knorr-Bremse AG Issuer Knorr-Bremse AG
Issuer ratings A2/outlook stable (Moody’s), A/outlook Issuer ratings A2/outlook stable (Moody’s), A/outlook
stable (Standard & Poor’s) stable (Standard & Poor’s)
Volume EUR 750 million Volume EUR 500 million
Term 7 years Term 5 years
Settlement June 14, 2018 Settlement December 6, 2016
Maturity June 13, 2025 Maturity December 8, 2021
Coupon 1.125% p. a. Coupon 0.5% p. a.
Reoffer spread 1.188% p. a. Reoffer spread 0.571% p. a.
Listing EURO MTF Luxembourg Listing EURO MTF Luxembourg
Denomination EUR 1,000 Denomination EUR 1,000
Applicable law German law Applicable law German law
Strong current rating: S&P (A) and Moody’s (A2)
Source: [.]

Confidential
Investor relations contacts
Harald Kinzler Justinian Späth
Phone: +49 89 3547 1498 Phone: +49 89 3547 181085
E-Mail: investor.relations@knorr-bremse.com E-Mail: investor.relations@knorr-bremse.com
Knorr-Bremse AG Knorr-Bremse AG
Moosacher Str. 80 Moosacher Str. 80
D-80809 Munich D-80809 Munich

Confidential
1 Introduction 7
5 R&D Focus 48
6 Financials 57
7 Sustainability 72
9 Appendix 84
Glossary (1/2)
% Percentage CF Cash flow ELC Electronic leveling control
ABS Anti-lock brake system CFO Chief Financial Officer EOP End of period
ACC Adaptive Cruise Control CKR Czech Koruna ESP Electronic stability program
AD Automated Driving CNY Chinese Yuan EU Europe, European Union
Advanced driver-assistance
ADAS CVS Commercial Vehicle Systems EUR Euro
systems
ADB Air Disk Brake D&A Depreciation & Amortization FTE Full-time equivalent
Advanced Emergency Braking Generally Accepted Accounting

AEBS DE Germany GAAP
System Principles
Aktiengesellschaft
AG DoI Date of Implementation GBP British Pound
(German: Stock Corporation)
AM Aftermarket e Expected GDP Gross domestic product
BDM Brake Distance Management EAC Electronic Air Control GSBC Global Scalable Brake Control
bn billion EBIT Earnings before Interest, Tax HQ Headquarters
Earnings before Interest, Tax,

CAGR Compound Annual Growth Rate EBITDA HSR High-speed rail
Depreciation, Amortization
CAPEX Capital expense EBS Electronic brake system HU Hungary
CEO Chief Executive Officer EGR Exhaust Gas Reduction HUF Hungarian Forint

Confidential
Glossary (2/2)
Heating, ventilation & air

HVAC LDW Lane Departure Warning TCO Total cost of ownership
conditioning
International Automobil-
IAA Ausstellung (German: m million TPR Truck Production Rate
International Motor Show)
IAM Independent Aftermarket M&A Merger & acquisitions UIC International union of railways
Intelligent Condition-Oriented
iCOM OEM, OE Original equipment manufacturer US United States
Maintenance
International Financial Reporting
IFRS OES Original equipment service USD US Dollars
Standards
IN India OPEX Operating expense WC Working Capital
IoT Internet of Things p.a. per annum
IPO Initial Public Offering PWM Private Wealth Management
JV Joint venture R&D Research & Development

KB Knorr-Bremse ROE Return on Equity
KB2020 Knorr-Bremse 2020 ROS Return on Sales
KPI Key Performance Indicator RVS Rail Vehicle Systems
Train Control Management

LCC Life-cycle cost TCMS
System

Confidential

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Fact Book

Knorr-Bremse Group Confidential

2 Key Company Highlights 11

Knorr-Bremse Group Confidential

4 Commercial Vehicle Systems (CVS) 35

Knorr-Bremse Group Confidential

8 Capital Markets Summary 80

Knorr-Bremse Group Confidential

2 Key Company Highlights 11

3 Rail Vehicle Systems (RVS) 24

4 Commercial Vehicle Systems (CVS) 35

8 Capital Markets Summary 80

Notes: RVS - Rail Vehicle Systems; CVS - Commercial Vehicle Systems

“>1 Bn people trust Knorr-Bremse systems every day”

Family-Ownership, Global market leader Shared pneumatics Technology leadership

2017 key financials

Asia / 30+ countries

Source: Knorr-Bremse information

1985 2000 2015 2010-2017 2017

1991 2006 2016

Knorr-Bremse Group │10

2 Key Company Highlights 11

3 Rail Vehicle Systems (RVS) 24

4 Commercial Vehicle Systems (CVS) 35

8 Capital Markets Summary 80

Consistent outperformance of attractive end-markets driven by megatrends and increasing

Driving innovation in mobility and transportation technologies through R&D, quality

Resilient business model, supported by broad geographical and customer diversification,

Knorr-Bremse Group │12

Power Auxiliary Energy supply &

Example car builders Example operators

Knorr-Bremse Group │13

% Including Drum Brakes and Brake Rotors

Knorr-Bremse Group │14

Barriers to entry for RVS and CVS markets Market specifics

 Long lifecycle with resulting customer loyalty, long gestation

Source: Knorr-Bremse information

Knorr-Bremse Group │15

✓ ADAS1) / HAD2) technology transfer

✓ Comprehensive research and IP base ✓ Global footprint

✓ Electromechanical brake systems

Knorr-Bremse Group │16

✓ Certification capability for all global core markets

✓ Partner of many Chinese OEMs and large installed base

✓ Leading control and monitoring technology

Knorr-Bremse Group │17

5.6x  Disc brakes replacing drum brakes

7.5% Content increase Market share gains

Significant market content per vehicle (CPV) growth

7,0% ✓ Market leader in a consolidated industry with only 2 global players

Knorr-Bremse Group │18

Knorr-Bremse invests more in R&D1) Consistently pioneering “first to market” innovations…

5.8% 6.2% 2.5% 5.2% 4.4%

Portfolio size based on patent families (public) Autonomous Safe Connected

Knorr-Bremse Group │19

Strong resilience of growth and profitability

Different economic cycles High aftermarket share

Diversified customer base Global footprint and local content

Knorr-Bremse Group │20