FISCAL YEAR 2021 THIRD QUARTER EARNINGS PRESENTATION

Chris VillavarayanChief Executive Officer and President

Carl AndersonSenior Vice President and Chief Financial Officer

August 4, 2021

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FORWARD-LOOKING Statements

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THIRD QUARTER Fiscal Year 2021 Highlights

1. US GAAP net income attributable to Meritor, Inc. and income from continuing operations attributable to Meritor, Inc. were each $42M for Q3 FY21. GAAP diluted earnings per share from continuing operations attributable to Meritor, Inc. was $0.58 for Q3 FY21.

2. Conversion: Q3 FY21 Adj. EBITDA less Q3 FY20 Adj. EBITDA / Q3 FY21 Revenue less Q3 FY20 Revenue

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CAPITAL Allocation

▪ $59M YTD (~2.5M shares)

• $25M in Q3

• $34M in Q4

▪ Completes prior Board authorization

$300M returned to shareholders since FY20

FY21 Equity Repurchases

▪ Additional $250M share repurchase program approved by Board

New Board Authorization New Board

Approval

M2022 EquityRepurchases

New BoardAuthorization

FY20$241M

FY21$59M

M2022Total

$300M $250M

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EXPANSION in Electrification

Heavy-duty application

▪ Renewable Natural Gas

▪ Hypertruck ERX™ Class 8

▪ 14Xe™ ePowertrain

▪ 5-year standard agreement

▪ ePowertrain testing

▪ Zero emission vehicles

▪ BEVs / fuel cell technologies

▪ Equity investment

▪ Electric-powered chassis development opportunity in India

▪ Near-term opportunities for North America and other regions

Medium-duty application

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POSITIONING FOR GROWTH Across Multiple Segments

Refuse

Drayage and Regional

Class 6/7 Pick Up and Delivery

Linehaul

Segment

MEDIUM-

DUTY

Class

HEAVY-

DUTY

EXPECTED ADOPTION HORIZON

Awarded / Investment Testing

(TIME )

MAJOROEMS

ACROSS MULTIPLE REGIONS

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THIRD QUARTER FISCAL YEAR 2021 Company Financial Results

(in millions, except per share amounts)

GAAP MEASURESThree Months Ended June 30

2021 2020

Sales $1,016 $514

Gross ProfitGross Profit %

$13213.0%

$285.4%

Net Income (Loss) from Continuing Operations1 $42 ($36)

NON-GAAP MEASURES

Adjusted EBITDAAdjusted EBITDA Margin %

$10710.5%

$71.4%

Adjusted Income (Loss) from Continuing Operations1,2 $45 ($26)

Adjusted Diluted EPS from Continuing Operations2,3 $0.62 ($0.36)

Diluted Shares Outstanding 72.8 72.1

Free Cash flow4 $18 ($114)

1. Amounts represent continuing operations attributable to Meritor, Inc.

2. For comparability, amounts for the three months ending June 30, 2020 have been updated to show the effect of omitting the non-cash tax adjustment from the calculation of adjusted income from continuing operations attributable to the company and adjusted diluted earnings per share from continuing operations

3. GAAP diluted earnings per share from continuing operations attributable to Meritor, Inc. was $0.58 for Q3 FY21, ($0.50) for Q3 FY20 and $0.86 for Q2 FY21

4. US GAAP cash provided by (used for) operating activities was $39M for Q3 FY21, ($102M) for Q3 FY20 and $63M for Q2 FY21

Company Results (year-over-year)

(in millions, except per share amounts)

GAAP MEASURESThree Months Ended

June 30, 2021 March 31, 2021

Sales $1,016 $983

Gross ProfitGross Profit %

$13213.0%

$14815.1%

Net Income from Continuing Operations1 $42 $63

NON-GAAP MEASURES

Adjusted EBITDAAdjusted EBITDA Margin %

$10710.5%

$11111.3%

Adjusted Income from Continuing Operations1,2 $45 $50

Adjusted Diluted EPS from Continuing Operations2,3 $0.62 $0.68

Diluted Shares Outstanding 72.8 73.4

Free Cash Flow4 $18 $47

Company Results (quarter-over-quarter)

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THIRD QUARTER FISCAL YEAR 2021 Segment Financial Results

(in millions)

FY21 Q3 VS. FY21 Q2Commercial

TruckAftermarket & Industrial

Three Months EndedJune

30March

31June

30March

31

Sales $800 $777 $258 $247

Segment Adjusted EBITDA $69 $73 $36 $34

% of Sales 8.6% 9.4% 14.0% 13.8%

Segment Results (quarter-over-quarter)Segment Results (year-over-year)

(in millions)

FY21 Q3 VS. FY20 Q3Commercial

TruckAftermarket & Industrial

Three Months Ended June 30 2021 2020 2021 2020

Sales $800 $336 $258 $203

Segment Adjusted EBITDA $69 ($23) $36 $31

% of Sales 8.6% (6.8%) 14.0% 15.3%

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NORTH AMERICA

(CL8)

EUROPE

SOUTH AMERICA

NORTH AMERICA

(CL5-7)INDIA

ProductionFY21

OutlookPrior

Outlook

Medium- and Heavy-Duty

~145 135 - 145

ProductionFY21

OutlookPrior

Outlook

Heavy-Duty ~285 270 - 290

ProductionFY21

OutlookPrior

Outlook

Medium-Duty ~240 230 - 240

FISCAL YEAR 2021 Global Market Outlook1(units in 000s)

ProductionFY21

OutlookPrior

Outlook

Medium- and Heavy-Duty

~415 360 - 380

ProductionFY21

OutlookPrior

Outlook

Medium- and Heavy-Duty

~245 230 - 250

1. Changes in operating environment from given assumptions could have a material impact on our results

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0%

25%

50%

75%

100%

125%

150%

175%

200%

Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

0%

25%

50%

75%

100%

125%

150%

175%

Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21

COST Headwinds

Source: American Metal Markets, CRU Monitor

Manufacturing Costs Continue to Rise

▪ Operational performance

▪ SG&A discipline

▪ Customer discussions

Mitigation Actions

Steel Indices

Hot Roll

Scrap

Source: Freightos Baltic Index (FBX)

Global Container Freight Index

▪ Steel

▪ Freight (ocean, truck rates, air)

▪ Labor

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FISCAL YEAR 2021 Financial Outlook

PriorFY21 Outlook

RevisedFY21 Outlook1,2

Sales(in millions)

$3,650 - $3,800 ~$3,900

Adjusted EBITDA Margin 10.6% - 10.8% ~10.7%

Adjusted Diluted EPS from Continuing Operations

$2.15 - $2.30 ~$2.45

Free Cash Flow(in millions)

$110 - $125 ~$115

1. Guidance for fiscal year 2021 on a US GAAP basis as follows: Net income attributable to Meritor and net income from continuing operations attributable to Meritor to be approximately $175M.

Diluted earnings per share and adjusted diluted earnings per share from continuing operations to be approximately $2.40 and $2.45 respectively. Operating cash flow to be approximately $210M.

2. Changes in operating environment from given assumptions could have a material impact on our results

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APPENDIX

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NON-GAAP Financial Information

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Continuing Operations (in millions) FY21 Estimate

Capital Expenditures ~$95

Interest Expense1 ~$80

Cash Interest ~$60

Cash Taxes ~$25

FISCAL YEAR 2021 Planning Assumptions

1. Includes debt extinguishment costs of approximately $11 million

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NON-GAAP Financial Information

17

NON-GAAP Financial Information

18

NON-GAAP Financial Information

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1. Amounts are approximate

NON-GAAP Financial Information

(In millions, except per share amounts)

Net Income Attributable to Meritor, Inc. ~$ 175

Loss from Discontinued Operations -

Income from Continuing Operations Attributable to Meritor, Inc. ~$ 175

Interest Expense, Net ~80

Provision for Income Taxes ~55

Brazilian VAT credit (22)

Noncontrolling Interests ~10

Depreciation and Amortization ~105

Restructuring ~10

Other ~4

Adjusted EBITDA ~$ 417

Sales ~$ 3,900

Adjusted EBITDA Margin ~10.7%

Diluted Earnings Per Share from Continuing Operations ~$ 2.40

Impact of adjustments on diluted earnings per share ~0.05

Adjusted Diluted Earnings Per Share from

Continuing Operations~$ 2.45

Diluted Average Common Shares Outstanding ~73

Fiscal Year

2021 Outlook (1)

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1. Amounts are approximate

NON-GAAP Financial Information

(In millions)

Free Cash Flow:

Cash Provided By Operating Activities ~$ 210

Capital Expenditures ~(95)

Free Cash Flow

~$ 115

Fiscal Year

2021 Outlook(1)

Free Cash Flow Outlook