WABCO 2017 Annual Report 3 Accelerating Toward Autonomous Driving In 2017, WABCO continued to lay innovations on the technology path that we have specifically mapped to support the commercial vehicle industry’s vision for autonomous driving. While it will take some years for our industry to complete this journey, WABCO is uniquely positioned to be a valued development partner for OEM customers globally who are pursuing this vision. One important milestone reached in 2017 brought WABCO a step closer to the reality of self-driving commercial vehicles—by being able to offer full dynamic control of autonomous vehicles. To achieve this breakthrough, WABCO completed the acquisition of R.H. Sheppard Co., Inc. in September 2017. Based in Pennsylvania, U.S.A., Sheppard is a key supplier of power- steering gears for commercial and specialty vehicles. Superbly complementing WABCO’s ability to control vehicle longitudinal movement through active braking and electronic stability control systems, Sheppard’s world-class steering technologies represent a major step toward lateral movement control through active steering. Both active steering and active braking are fundamental requirements for an autonomous vehicle. In conjunction with this acquisition, WABCO also signed a long-term cooperation agreement with Nexteer Automotive , a global leader in intuitive motion control, headquartered in Michigan, U.S.A. WABCO and Nexteer will join forces to develop and supply creatively designed active-steering systems for medium- and heavy-duty commercial vehicles using Nexteer MagnaSteer™ Actuation Technology, a breakthrough in active steering assistance. By combining their proven MagnaSteer technology with Sheppard’s suite of power-steering gears and WABCO’s advanced braking systems, this collaboration will deliver differentiating solutions for integrated active steering, braking and stability control. WABCO’s industry-leading OnGuard™ collision mitigation system represents another advanced safety system on the path to autonomous driving. In North America, OnGuard-equipped fleets report up to 87% fewer rear-end collisions, a compelling validation of the contribution this innovation will make to autonomous vehicle safety. During 2017, OnGuard achieved record sales, growing its installed base globally to 372,000 units. Augmenting this proven technology, WABCO’s OnLaneASSIST™ lane- keeping assist system, set to be introduced in 2019, represents our first application of active steering technology within our industry-leading portfolio of advanced driver assistance systems. In 2017, WABCO also introduced OnSide™ , an advanced blind-spot detection system for commercial trucks and trailers. When used with OnLaneASSIST, OnSide can perform beyond driver warning to enable active collision avoidance. WABCO is accelerating the development and integration of the complex technologies required for autonomous control of vehicle dynamics—a major milestone toward self-driving commercial vehicles. By introducing steering control systems into our technology portfolio in 2017, WABCO entered a new realm of differentiation in the value we can offer to customers.