Garrett Motion Inc. (Formerly Honeywell International Inc.) Business Report FY ended Dec. 2018

Financial Overview

(in million USD)

	FY ended Dec. 31, 2018	FY ended Dec. 31, 2017	Rate of Change (%)	Factors
Net Sales	3,375	3,096	9.0	see below
Net Income	1,180	(983)*	-	-

-2017 Net income was impacted by the Tax Act resulting in a tax expense of USD 1,335 million.

Spin-Off

-On October 1, 2018, Honeywell International Inc. completed to spin-off its Transportation Systems Division as Garrett Motion Inc.

Factors
Net Sales
-The Company’s net sales for the fiscal year ended December 31, 2018 increased by 9.0% over the previous year to USD 3,375 million. The increase in net sales was primarily driven by increases in sales volume partially offset by price reductions. The increase in sales volume, net of price reductions, was primarily driven by light vehicles OEM products growth of approximately USD 220 million, commercial vehicles OEM products growth of approximately USD 59 million and aftermarket products growth of approximately USD 8 million.

The Company's light vehicles OEM product growth was primarily driven by increased gasoline volumes in Europe, China, North America, and South Korea, as a result of increased turbocharger penetration in gasoline engines and new product launches. Additionally, there were increased diesel volumes in China and Japan partially offset by lower diesel volumes to our OEM customers in Europe and South Korea. The commercial vehicles OEM product growth was primarily driven by volume increases in North America and Europe. Our slight aftermarket sales increase was primarily driven by higher volumes in Europe partially offset by lower volumes in Japan.