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Wells Fargo

Industrial Conference

New York, NY NYSE: TEN


May 9, 2017
Safe Harbor
This presentation contains forward-looking statements that involve risks and uncertainties which could cause the company’s plans, actions
and results to differ materially from its current expectations. The words “expect,” “estimate,” “will,” and similar expressions identify certain of
these forward-looking statements. The company cautions that actual results may differ materially from those projected or implied in forward-
looking statements due to a variety of factors including, but not limited to, the following: (i) general economic, business and market
conditions; (ii) the company’s ability to source needed goods and services in accordance with customer demand and at competitive prices;
(iii) the cost and outcome of claims, legal proceedings or investigations, including, but not limited to, those arising in connection with the
ongoing global antitrust investigation, product safety or intellectual property rights; (iv) the impact of the changing laws and regulations to
which we are subject, including environmental laws and regulations, pensions or other regulated activities; (v) the ability of the company to
access capital markets on commercially reasonable terms; (vi) changes in consumer demand; (vii) changes in vehicle manufacturers’
production rates and their requirements for the company’s products, including with respect to any delays in the adoption of the current
mandated timelines for worldwide emissions regulations; (viii) the overall highly competitive nature of the automobile and commercial
vehicle parts industry, and any resultant inability to realize the sales represented by the company’s awarded book of business which is
based on anticipated pricing for the applicable program over its life; (ix) the loss of any of our large original equipment manufacturer
(“OEM”) customers, or the loss of market shares by these customers if we are unable to achieve increased sales to other OEMs; (x) the
company’s continued success in cost reduction and cash management programs; (xi) economic, exchange rate and political conditions in
the countries where we operate or sell our products; (xii) workforce factors such as strikes or labor interruptions; (xiii) increases in the costs
of raw materials; (xiv) the negative impact of fuel price volatility on logistics costs and discretionary purchases of vehicles or aftermarket
products, and demand for off-highway equipment; (xv) the cyclical nature of the global vehicular industry, including the performance of the
global aftermarket sector and longer product lives of automobile parts; (xvi) product warranty costs; (xvii) material developments relating to
our intellectual property or the failure or breach of our IT systems; (xviii) the company’s ability to develop and profitably commercialize new
products and technologies; (xix) governmental actions, including the ability to receive regulatory approvals and the timing of such
approvals; and (xx) the timing and occurrence (or non-occurrence) of transactions and events which may be subject to circumstances
beyond the control of the company. Additional information regarding these and other risk factors and uncertainties is detailed from time to
time in the company’s SEC filings, including but not limited to its annual report on Form 10-K. Unless otherwise indicated in this
presentation, the forward-looking statements in this presentation are made as of the date hereof, and the company does not undertake any
obligation to publicly disclose revisions or updates to any forward-looking statements.
2
Strong Foundation
Consistent Strategic Focus
Our Commitments: Customers’ Success • Shareholder Value • Employee Engagement • Sustainability

Our Markets: Light Vehicle • Commercial Truck • Off-Highway / Large Engine • Aftermarket

S T R AT E G I C I M P E R AT I V E S

CLEAN AIR RIDE PERFORMANCE


• Global regulatory expertise • Product cost leadership
• Foundation in core sciences
• Superior functionality
• Total systems integration
• Cost-effective global market solutions PROFITABLE • Advanced technology
– Light vehicle
– Commercial vehicle
GROWTH • Vehicle dynamics / integrated
systems expertise
– Large engines
• China specific solutions • NVH solutions provider
• Large platform lifecycle services • Leading aftermarket brands

Healthier Lives Superior Driving Experience


A C O M M O N F O U N D AT I O N
Shared • Accountability • Perseverance Operations • Safety and quality Financial • Earnings growth
Values • Health and Safety • Results Oriented Excellence • Manufacturing optimization Strength • Cash flow
• Innovation • Teamwork • Global business processes / • EVA
Integrity capabilities
• • Transparency • Balance sheet strength
Passion and a • Optimized global footprint
• • Trust
Sense of Urgency • Strategic supplier partnerships
3
Appealing Investment Opportunity
Built to Outperform
• Proven track record of growth
– Revenue growth outpacing industry production
– Margin expansion and double-digit EPS growth

• Diversified profile
– Product lines –Platforms
– End markets –Geographies
– Customers

Accelerating Core Growth


• Positive market trends in both product lines
• Expansion in high growth markets
• Technology and capability leadership

Consistent and Focused Strategic Objectives


4
Built to Outperform
Proven Track Record of Growth
• Since 2006, Tenneco has delivered:
– Annual revenue growth almost double industry production
– Margin expansion of 370 bps
– Annual adjusted EPS growth of 18%

Seven-year record of value-add adjusted EBIT margin improvement


* Value-add Revenue is total revenue less substrate sales. See slide 52 for further explanation. † See reconciliations to U.S. GAAP at end of presentation. 5
Sustainable Growth Drivers
to Outpace Industry Production

• Strong position on light


vehicle platforms globally

• Regulatory-driven Clean Air


content

• Increasing demand for


advanced suspension systems

* Source IHS Automotive January 2017 global light vehicles ** CAGR • Global aftermarket leadership

Pioneering Global Ideas for Cleaner Air and Smoother, Quieter and Safer Transportation
6
Built to Outperform
Margin Expansion

Expect continuing annual margin improvement driven by:

• Increasing content with higher technology products


• Growing aftermarket
• Commercial truck and off-highway
–Increasing Clean Air content in China and India as regulations tighten
–Mature market recovery
Since 2006, Tenneco has delivered
• Best delivered cost margin* expansion of 370bps

–Optimizing product designs and


manufacturing processes
–Flexible global manufacturing and
supply chain networks
–Continuous improvement
* Adjusted EBIT as a % of VA revenue. See reconciliations to U.S. GAAP at end of presentation. 7
Built to Outperform
Diversified Profile – Leading Product Lines

CLEAN AIR RIDE PERFORMANCE


Products and technologies Products and technologies that meet
designed to meet global emissions the increasing demand for enhanced
regulations anywhere in the world vehicle comfort and handling

† See reconciliations to U.S. GAAP at end of presentation. * Value-add Revenue is total revenue less substrate sales. See slides 53 and 54 for further explanation.
8
Built to Outperform
Diversified Profile – End-Market Applications

TOTAL TENNECO CLEAN AIR

LV
83%

Light Aftermarket
vehicle 14%
75% RIDE
PERFORMANCE
Commercial
truck and LV
off-highway 55%
11%
* LV segment

Manage cyclicality with balance across end-market applications


9
Built to Outperform
Diversified Profile – Customers and OE Platforms

LEADING OE
CUSTOMERS PLATFORMS

• 623 Customers • 435 OE platforms


– Light vehicle OEMs 32 – Light vehicle 238
– Commercial truck OEMs 29
– Commercial truck 130
– Off-highway & other OEMs 15
– Off-highway & other 67
– Aftermarket 426
– Tenneco as Tier 2 155
• Enabling aftermarket
• +80k Ship to locations growth

Strong Customer Partnerships and Platform Mix Globally


10
Built to Outperform
Diversified Profile – Global Footprint

MANAGING CYCLICAL MARKETS WITH FLEXIBLE NETWORK


• Demand-driven network design
• Utilization-driven capacity management
• Flex capacity partnerships 2016
• Manufacture where we sell Revenue

24 Countries of Operation
158 Countries Served
Powered by People
• 31,000 Team Members
• 91 Manufacturing Facilities
• 15 Engineering & Technology Centers

11
Appealing Investment Opportunity

Accelerating Core Growth


• Positive market trends in both product lines
• Expansion in high growth markets
• Technology and capability leadership

12
Market Landscape
0-5 yrs 5-10 yrs >10 yrs
• Market Trends
– Light vehicle growth (Global)   
– Accelerating car parc in high growth markets (China and India)   
– Agriculture and construction production recovery (U.S. and Europe)   

– Differentiate vehicles with ride performance   
– Diesel / gasoline powertrain mix (Europe) 
 
 

• Regulatory Drivers
– Tightening emissions regulations – criteria pollutants   
– CO2 emissions 
 
 

– Asia Pacific CT & OH regulations – criteria pollutants   
• Technology Trends
– Strong investments in ICE powertrain   
– Electrification – Hybrid   
– BEV penetration 
 
 
– Autonomous driving 
  
– Mobility models 
  
Trends Driving Current and Future Opportunities with Existing Portfolio 13
Ride Performance Overview
Growing demand for advanced suspension technologies
that enhance vehicle performance
RIDE PERFORMANCE CUSTOMERS PRODUCTS
by the Numbers
SERVED
#1 Light Vehicle
Conventional shocks Advanced
and struts suspension systems
Market position for ride control products

90+ million OE and AM


Shocks and struts sold globally in 2016
Commercial Truck
28
Manufacturing locations

10
Engineering centers
NVH solutions

572
Customers served Aftermarket

$2.5 billion
2016 Revenue

Success driven by application engineering, product leadership and global capabilities14


Ride Performance Core Capabilities

• Global product and application


engineering expertise Tenneco Tuning Truck

– Ride tuning
– Systems integration
– Vehicle dynamics
– Noise, Vibration, Harshness (NVH)
– Light weighting

• Global program management


• Global integrated supply chain
• High volume manufacturing
• Continuous improvement
15
Core Suspension Products
TODAY
By 2030: The Asia Pacific region will

90+ account for 70% of the global light


vehicle production growth
MILLION SHOCKS AND STRUTS
SOLD ANNUALLY
China and India light vehicle growth opportunity
• Strong presence and capabilities
– 5 manufacturing locations
– 3 technical centers

• Diverse portfolio of customers


• Optimized damper designs for fast growing
segments
• Well positioned for advanced suspension products

Broad product portfolio and tuning expertise differentiate vehicle ride


Source: IHS database 16
NVH Solutions
Isolation Combined with Light Weighting Light Weighting

Original Mini-shear-hub in Conventional Partial Metal-to-Plastic


2-hole Isolator Plastic Bracket Steel-Based Conversion

• Market leading technology


– NVH management
– Durability and corrosion protection
– Mass reduction

• Opportunity to grow market presence


Manufacturing
in Europe and APAC
Technical Center

Extend our NVH expertise and capabilities globally


17
Advanced Suspension Technology
• Expected to grow from 2% to more than 15% of light vehicle
production by 2025 with adoption led by global OEMs
• With higher content, advanced suspension represents
more than 40% of the available market revenue by 2025
Content per Vehicle

More than
Active Suspension 6x
RIDE PERFORMANCE

Average
Semi-active Suspension 4x

Conventional Suspension $50-$60

A segment F segment

Install rate and content growth results in 25% revenue CAGR opportunity 18
Source: IHS database and Tenneco analysis
New Opportunities
Autonomous Driving / Mobility Trends

Opportunities for Tenneco


• Existing portfolio of technical
solutions to capture ADAS/AD trend
– Comfort / train-like ride
– Improved handling
SAE levels of
– Noise, vibration, harshness reduction
automation for
on-road vehicles – Light weighting

• Continuing to invest in developing


market leading products and
technology

Source: https://www.sae.org/misc/pdfs/automated_driving.pdf ADAS – Advanced Driver Assistance Systems AD – Automated Driving


19
Clean Air Overview
Products and systems designed to meet global emissions regulations
anywhere in the world

CLEAN AIR CUSTOMERS PRODUCTS


by the Numbers SERVED
Gasoline Particulate
Light Vehicle Catalytic
Filter (GPF)
Leading market positions globally converter

63
Full exhaust
Manufacturing locations Commercial Truck
system
Diesel particulate
8 filter (DPF)
Engineering centers XNOx® dosing
system for SCR

123 Off-Highway and Large Engine


Customers served

Electronic
$6.1 billion Valve
2016 Revenue

Success driven by regulatory expertise, product leadership and global capabilities


20
Clean Air Core Capabilities
Core Science Expertise
• Global product and application
engineering expertise
– Regulatory Expertise
– Core Science Expertise
– Noise, vibration and harshness
– Acoustics
– Light weighting
– System integration

• Global program management


• Global integrated supply chain
and footprint

21
Regulatory Drivers
Key Regulations
Regulations Driving Technology • Light Vehicle
Roadmap and Content Growth – 2017-2025 – US Tier 3
– 2017-2022 – Euro 6c/6d Real Driving Emissions
– 2019 – China CN 6a**
– 2020 – India BS 6 (skipping BS 5)

• Commercial Truck
– 2019 – China CN VI**
– 2020 – India BS VI (skipping BS V)
– 2023 – CARB Low NOx regulation

• Off-Highway
– 2019 – EU Stage V
– TBD – US Stage V equivalent
– 2019 – China CN IV**
– 2019 – Brazil Stage 3B**
– 2021-2022 – India BS IV**
** Proposed or estimated date

22
Regulatory Drivers
Key Technologies and Products
Driver System Solution Technologies and Products
THERMAL MGMT

Dosing System, Advanced Mixing,


EMISSIONS

Thermal Unit, Selective Catalytic


Reduce Criteria Advanced
Reduction, Ammonia Generator,
and

Pollutants Aftertreatment Gasoline and Diesel Particulate


Filter, Catalytic Converter XNOx® Dosing System GPF
LIGHTWEIGHTING
THERMAL MGMT

Rankine Cycle PowerPack, Thermo-


electric Generator, Thermoacoustic
Improve Fuel Waste Heat
Converter, Heat Exchanger,
and

Economy Recovery Lightweight Aftertreatment System,


Electric Valve, Fabricated Manifold CT 1 Box ATS with LV Heat Exchanger
Rankine Evaporator
ACOUSTICS

Sound Creation,
Acoustic Active Noise Cancellation,
Sound Signature Sound, Electronic Valve,
Performance Cancellation Passive Valve
Passive Valve Signature Sound

Elastomer
Noise, Vibration interfaces for Exhaust System Isolator,
NVH

Modular Exhaust Damper


and Harshness Clean Air
Solutions Exhaust Isolator

23
Light Vehicle Growth – Asia Pacific

• By 2030, APAC represents 70% of global 2030 LV Production


unit growth and 53% of global market
• China and India increase technology needs
RoW NA
through tightening regulations
NA
• Clean Air global capabilities meet new RoW

regional customer needs EU


EU
– Strong regional APAC presence / capabilities China China
• 23 manufacturing locations SA
• 4 engineering centers India SA
India
– Technology transfer from proven
Euro 6,VI solutions
– Low cost solutions

Leveraging content into high growth markets


24
Technology Trends
Investment in LV ICE Powertrains
Toyota Daimler AG
In December 2016, Toyota announced an ambitious road Approximately €3 billion for engine technology Mercedes-Benz
map to new engines. Toyota will embark on a sweeping invests in innovative engine solutions
engine and drivetrain overhaul to replace at least 60% of Daimler website; February 11, 2016
its line up by the end of 2021, with nine new engines,
four new transmissions and six new hybrid systems Daimler plans to invest about 500 million euros in new engine
because they expect ICE technology to remain relevant for production in Jawor.
many more years. Daimler website; October 13, 2016
autonews.com
December 12, 2016

Over $20 billion in announced OEM investment in ICE powertrains since 2015 25
Commercial Truck and Off-Highway
Growth – Asia Pacific
Americas EMEA Asia Pacific

733 1,605
991 250
531 226 794 646
China
North America Japan/Korea
531
India 1,189
126 70

South America
Asia Pacific accounts for +67%
of global CT & OH production
Commercial Truck by 2030
Off-Highway & Engines

2030 CTOH Production: 1.0M 2030 CTOH Production: 1.5M 2030 CTOH Production: 5.2M
Regulated 2015: 86% Regulated 2015: 89% Regulated 2015: 57%
Regulated 2030: 100% Regulated 2030: 93% Regulated 2030: 90%

More engines will come under regulation between today and 2030 than are regulated today
Source: Power Systems Research, Tenneco analysis 26
Technology Trends
Powertrains in Regulated Regions
Total regulated powertrains – light vehicle, commercial truck and off-highway* (in millions)

BEV PENETRATION
CURRENT PROJECTIONS* SENSITIVITY ANALYSIS
Light Vehicle BEVs/Fuel Cells 123 123
Regulated ICEs 4% LV BEV penetration*
26% LV BEV
93 penetration

But … will have


25% to 30% higher
93 118 regulatory content 93
than today

2015 2030 2030


Clean Air content is expected to be 25% - 30% higher in 2030, even if
BEV penetration is 7x greater than projected
* IHS Automotive, Power Systems Research and Tenneco estimates 27
Aftermarket Overview
AFTERMARKET BRANDS PRODUCTS
by the Numbers
Shock and Struts Suspension Parts

#1 Market position for ride performance


North America, Europe and South America
Exhaust Pipes &
Mufflers
#1 Market position for clean air Diesel Particulate
North America and Europe Filter (DPF)

90+ million OE and AM


Shocks and struts sold globally in 2016 Catalytic converter

$1.2 billion 2016 Revenue


(Included in our Ride Performance and
Clean Air product lines)

Countercyclical business with strong margins and cash flow – emerging high growth opportunities
28
Aftermarket Capabilities
Established Markets • History of strong aftermarket,
Monroe & Walker brands are
100 years strong
North America Europe • Product Lifecycle – OE  AM
#1 Ride Performance #1 Ride Performance
#1 Clean Air #1 Clean Air
• Powerful brands to attract and
retain customers/consumers

• Innovative and cost-effective


South America product coverage solutions
#1 Ride Performance
• Distribution – cost-effective,
accurate, on-time

• Marketing/selling expertise –
that leverages training, tools
and data

Tenneco Aftermarket capabilities are second to none 29


Market Trends
Car Parc Growth
Global Vehicles in Operation (VIO)

60 years of gradual growth

Unprecedented car parc growth


over next 20 years led by China

1950 1960 1970 1980 1990 2000 2010 2020 2025 2030
Source: OCIA, Frost & Sullivan

Between 2015 and 2030, the global car parc nearly doubles 30
Market Trends – Accelerating Car Parc
in High Growth Markets
Vehicle Parc Unit Growth (2015 to 2025)
Established Markets High-Growth Markets

328
42 3 Average age
47 2 Europe
8.5 years
8
North America
China
59 1

India
1 4
42 6 ROW
South America

Light Vehicle
Commercial Truck
2025 2025 2025
Light Vehicle Parc: 455M Light Vehicle Parc: 337M Light Vehicle Parc: 835M
835
10-year CAGR: 2% 10-year CAGR: 1% 10-year CAGR: 9%
CTOH Vehicle Parc: 20M CTOH Vehicle Parc: 12M CTOH Vehicle Parc: 21M
10-year CAGR: 4% 10-year CAGR: 3% 10-year CAGR: 9%
Source:
Frost & Sullivan 2015,
IHS Worldview May 2016 China’s car parc will grow by 328M vehicles over next 10 years 31
China: Brand, Product and Market Coverage
Mobile APP Advertising Campaigns

• Brand building - underway


Mobile
AD
App
• Product coverage - by 2019
Events

• Channel Relationships - underway


Event

• Outlet Coverage - underway


Branded Installer Installer Seminars

Branded Installer Seminar • Footprint - underway

32
Global Market Opportunity
$114B Opportunity in 2030
Revenue in $B

$114
8

$89
6
33
Aftermarket $70
Ride Performance 5
24
Clean Air $57
4 16 1.8% LV
Production
14 CAGR
73
59
49
39

2015 2020 2025 2030


Global Markets 4% 5% 5%
5yr CAGR

IHS LV Production 2% 2% 2%

Global Opportunity CAGR of 5% through 2030, 2.5x Faster than


LV Production CAGR of 1.8%
Source: IHS database; Power Systems Research, Tenneco analysis 33
Key Takeaways
Built to Outperform • Accelerating Core Growth • Focused Strategic Objectives

RIDE PERFORMANCE
• Core Suspension Growth – driven by APAC LV production
• NVH Elastomers – extend expertise and capabilities globally
• Advanced Suspension Technology – Install rate and
content growth drives 25% revenue CAGR opportunity

CLEAN AIR
• Continued tightening emissions regulations
• Over $20 billion in announced global OEM investment
in ICE powertrains in past 2 years
• Commercial truck and off-highway – more engines will come
under regulation by 2030 than are regulated today

AFTERMARKET
• Proven market leader in North America and Europe
• Global vehicles in operation nearly doubles by 2030
• Mobility models – higher vehicle utilization drives
increased replacement rate
34
Focused Strategic Objectives

• Continue outpacing industry production


by 3% to 5+%

• Invest in technologies aligned with


market trends

• Grow Aftermarket revenue mix


• Continue to drive margin expansion
• Maintain and build financial strength and maximize
flexibility

35
Balance Sheet Strength
Leverage Ratio
(Net Debt / Adjusted EBITDA*) Target leverage of around 1x:
• Provides financial flexibility
• Stable balance sheet for
business cycles
• Opportunity for deploying
capital to accelerate growth
and shareholder returns

Since 2011, repurchased 10.4 million shares for $521 million

Working Capital Investment Capital Expenditures


(Receivables + Inventory - Payables) as a % of Revenue as a % of Revenue

TEN averaged 5.4% over the past 9 years Capex range of 3.5% - 4.0%
* Including noncontrolling interests. Reconciliations to U.S. GAAP at end of presentation. 36
Capital Allocation Priorities
to Drive Shareholder Value
✔ 1. Fund organic growth
✔ 2. Activities to improve cost competitiveness
✔ 3. Balance sheet strength consistent with target leverage ratio of 1x

Well-positioned with flexibility to pursue strategic opportunities


and capital returns to shareholders
4. Strategic opportunities 5. Capital returns to shareholders
4. Strategic opportunities
Technology • Initiated quarterly dividend for
• •Technology – urea dosing and injection capabilities; digital valve technology
sustainable returns
Customer
• •Customer – regional players with specific target customers
• $400M repurchase program over
Geographic
• •Geographic – expand NVH elastomer global reach; accelerate Aftermarket growth in China
next 3 years out of free cash flow
• •Aftermarket growth
Aftermarket – increase Aftermarket revenue mix; enhance product portfolio
growth

37
What It Means to Tenneco
Growth Trajectory
• Short- and mid-term growth in all areas
• Mid-term to long-term accelerating growth in
Ride Performance and Aftermarket
• Long-term, moderating growth in Clean Air
Aftermarket

Ride Performance (OE)

Clean Air (OE)

Current View Long-term View


Long-term growth outpacing industry production
Source: IHS database; Power Systems Research, Tenneco analysis 38
Appealing Investment Opportunity
Built to Outperform
• Proven track record of growth
– Revenue growth outpacing industry production
– Margin expansion and double-digit EPS growth

• Diversified profile
– Product lines –Platforms
– End markets –Geographies
– Customers

Accelerating Core Growth


• Positive market trends in both product lines
• Expansion in high growth markets
• Technology and capability leadership

Consistent and Focused Strategic Objectives


39
40
Global Emissions Regulations
LV - Light Vehicles CTrk - Commercial Trucks Off-Hwy - Off-Highway Vehicles * Phased in ** Proposed or Estimated date *** Some mfrs harmonizing US Tier 4f engines with Stage 5

Up to 2012 2013 2014 2015 2016 2017 2018 2019 2020 & later
U.S., • Tier 4i Off-Hwy • RICE • Tier 4f* Off-Hwy • CARB LEV III* • NSPS • Tier 3 LV • Tier 3 Light Truck* • CARB Off-Hwy • CARB CTrk Low
(2011) Stationary Stationary NOx* Pass Cars* Small Fleets* NOx (2023)**
Canada • Marine Tier 4f* • Tier 4 • Mex Tier 2 LV
(full impl.)** • Tier 4f Off-Hwy*** • EPA CTrk Low NOx
& Mexico CARB CTrk
• • US revised • CARB Off-Hwy Locomotive • CARB Off-Hwy
(2024)**
Retrofit* (2012) NAAQS Large Fleets* Medium Fleets* • Mex EPA2007
• Mex Euro 4 LV or or EU-V CTrk** • Mex Tier 3 LV** (2025)
• US Utility MACT • Mex EPA2010 or
EPA Tier 2 Bin 10
EU-VI CTrk** (2020)

Europe • EU Off-Hwy • EU Sound • Euro-6b LV • Euro-6c LV (no RDE) • EU VI D CTrk • EU Stage V • EU-6d LV RDE
Stage 3B* (2011) regulation • EU Off-Hwy • EU-6d TEMP In-service Off-Hwy CF1.5* (2020-1)
• EU CO2 /GHG 120g • EU-VI CTrk Stage 4* LV RDE CF2.1* conformity
& PM # LV (2011) (2017-2018)

China • China 5 LV* • China IV CTrk* • Beijing V CTrk • China 5 LV • China 5 LV • China 5 LV • China 6a LV*,** • China 6b LV*,**
(Major Cities) (2012) National (MEP) • Beijing 4 (Eastern National Sl* National Cl* National National (2023)
Off-Hwy Provinces) • China V CTrk*,** • China VI CTrk*,**
China 3 Off-Hwy is equivalent to EU Stage 3A
• China 3 • China 4 Off-Hwy*,**
China 4 Off-Hwy is equivalent to EU Stage 3B
Off-Hwy • Stage 4*
Locomotive**
Japan • JC08 (2009) • JP-13 CTrk • Off-Hwy • JP-16 CTrk* • WLTP LV
Tier 4B

South • Peru EU-3 LV • Chile EU-5 LV • Argentina • Brazil Stage • Brazil Stage 3A • Brazil EU-VI • Brazil Stage • Brazil Proconve
• EC, UR, VEN • Colombia EU-5 LV 3A Off-Hwy Off-Hwy (farming) CTrk** 3B** Off-Hwy L-7 LV**
America (construction) (2026)
EU-1 LV EU-4 LV
• Brazil EU-V CTrk • Brazil Proconve
(2012) L-6 LV

Russia • EU-4 LV • EU-5 LV • EU-V CTrk


• EU-IV CTrk

India • BS-4 LV/CTrk • BS-IV CTrk* • BS-4 LV • BS-6 LV (2020)


(13 Cities) (2011) (50 Cities) • BS-IV CTrk • BS-VI CTrk (2020)
• BS-IIIA Off-Hwy • BS-IV* Off-Hwy
(2011) (2022)**

Global • Marine Annex • Marine Annex


VI Tier III NOx VI Tier III SOx
Treaty
41
Clean Air: New Light Vehicle
Regulations Adding Content
U.S. Fed Tier 3 Euro-6c/6d Real Driving Emissions (RDE)
Fleet Average (NMOG + NOx) Particulate Number and Conformity Factor

Additional content required Additional content required


• Combined NOx+NMOG reduction of 80%-91% • Particulate number (PN) requirement
• Significantly improved cold start emissions • RDE test cycles requiring more efficient systems and improved
transient emissions performance
• Same tailpipe limits for diesel and gasoline light vehicles
• Improved on-board diagnostics (OBD-II)

$72 / vehicle = EPA cost estimate


Tenneco estimates similar cost impact
Estimated $1.4 billion annualized
as U.S. Fed Tier 3
additional available market by 2025
42
Commercial Truck and Off-Highway
Diesel Aftertreatment Customers

North America Europe China


Truck Commercial Truck Commercial Truck
• Chrysler (LV 3/4 ton +) • Daimler Trucks • China National
• GM (LV 3/4 ton +) • Scania Heavy-Duty Truck Co.
• Customer B • Dalian Diesel Engine Co.
• Ford (LV 3/4 ton +,
CTrk Med-duty)
• FAW
• JND
• Customer A (CTrk)
Off-Highway • Shanghai Diesel Japan
Engine Co.
• AGCO
• Weichai Off-Highway
Off-Highway • Caterpillar / Perkins • YuChai • Caterpillar / Perkins –
• Caterpillar / Perkins • Deere Exported from N. America
• Deere • Deutz • Kubota
• MAN
• Scania India
Brazil Commercial Truck
• Daimler Trucks
Commercial Truck • Mahindra
• Daimler Trucks • MAN Trucks India (MTI)
• IVECO • Tata Motors
• MAN • VE Commercial Vehicles
• MWM • Volvo Trucks
• Scania
43
Balanced Customer Mix
As a % of Total 2016 Revenue LV Customer Commercial Truck,
Off-Hwy & Other Customer
AM Customer

16.6% 1.9%

13.0% 1.7%

7.2% 1.5%

6.4% 1.5%

4.8% 1.5%

4.3% 1.5%

4.2% 1.4%

4.0% 1.4%

3.9% 1.3%

2.3% 1.0%
44
Robust Platform Mix
As a % of Total 2016 Revenue

45
Financial Results Disclaimer

• Use of Non-GAAP Financial Information


In addition to the results reported in accordance with accounting principles generally accepted
in the United States (“GAAP”) included in this presentation, the company has provided information
regarding certain non-GAAP financial measures. These measures include Earnings Before Interest
Expense, Income Taxes, Noncontrolling Interests and Depreciation and Amortization (“EBITDA*”),
Net Debt, Value-Add Revenue, Adjusted EBITDA*, Adjusted Earnings Before Interest Expense,
Income Taxes and Noncontrolling Interests (“Adjusted EBIT”), and Adjusted Earnings Per Share.

Reconciliations of these non-GAAP financial measures to the comparable GAAP measure are
included in this presentation.

* Including noncontrolling interests.

46
Tenneco’s Revenue Outlook
Tenneco’s revenue outlook is based on the type of information set forth under “Outlook” in Item 7 – “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” as set forth in Tenneco’s Annual Report
on Form 10-K for the year ended December 31, 2016. Please see that disclosure for further information. Key
additional assumptions and limitations described in that disclosure include:
• Revenue projections are based on original equipment manufacturers’ programs that have been formally
awarded to the company; programs where the company is highly confident that it will be awarded business
based on informal customer indications consistent with past practices; and Tenneco’s status as supplier for the
existing program and its relationship with the customer.
• Revenue projections are based on the anticipated pricing of each program over its life.
• Revenue projections assume a fixed foreign currency value. This value is used to translate foreign business to
the U.S. dollar.
• Revenue projections are subject to increase or decrease due to changes in customer requirements, customer
and consumer preferences, the number of vehicles actually produced by our customers and pricing.

Tenneco’s revenue outlook constitutes a forward-looking statement. We also refer you to the cautionary language
regarding our forward-looking statements set forth in the Safe Harbor statement on slide 2.

47
EBITDA*–
Reconciliation of Non-GAAP Results
$ Millions, Unaudited
2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
Net income (loss)
attributable to Tenneco Inc. $ 363 $ 247 $ 226 $ 183 $ 275 $ 157 $ 39 $ (73) $(415) $ (5) $ 49 $ 56 $ 9 $ 25 $(189) $(131) $ (41)
Cumulative effect of change
in accounting principle,
net of income tax - - - - - - - - - - - - - - 218 - -
Net income attributable to
noncontrolling interests 70 56 44 39 29 26 24 19 10 10 6 2 4 6 4 1 2

Income tax expense (benefit) 3 149 131 122 19 88 69 13 289 83 5 26 (21) (6) (6) 50 (27)

Interest expense
(net of interest capitalized) 92 67 91 80 105 108 149 133 113 164 136 133 178 146 140 170 188
EBIT, earnings before interest
expense, income taxes &
noncontrolling interests
(GAAP measure) 528 519 492 424 428 379 281 92 (3) 252 196 217 170 171 167 90 122

Depreciation & amortization


of other intangibles 212 203 208 205 205 207 216 221 222 205 184 177 177 163 144 153 151

EBITDA* $ 740 $ 722 $ 700 $ 629 $ 633 $ 586 $ 497 $ 313 $ 219 $ 457 $ 380 $ 394 $ 347 $ 334 $ 311 $ 243 $ 273

EBITDA* represents earnings before interest expense, income taxes, noncontrolling interests and depreciation and amortization. EBITDA* is not a calculation based upon generally accepted accounting
principles. The amounts included in the EBITDA* calculation, however, are derived from amounts included in the historical statements of income. In addition, EBITDA* should not be considered as an
alternative to net income or operating income as an indicator of the company’s operating performance, or as an alternative to operating cash flows as a measure of liquidity. Tenneco has presented EBITDA*
because it regularly reviews EBITDA* as a measure of the company’s performance. In addition, Tenneco believes that its security holders utilize and analyze its EBITDA* for similar purposes. Tenneco also
believes EBITDA* assists investors in comparing a company’s performance on a consistent basis without regard to depreciation and amortization, which can vary significantly depending upon many factors.
However, the EBITDA* measure presented may not always be comparable to similarly titled measures reported by other companies due to differences in the components of the calculation.
* Including noncontrolling interests. 48
Adjusted EBITDA*–
Reconciliation of Non-GAAP Results
$ Millions, Unaudited 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000
EBITDA* $ 740 $ 722 $ 700 $ 629 $ 633 $ 586 $ 497 $ 313 $ 219 $ 457 $ 380 $ 394 $ 347 $ 334 $ 311 $ 243 $ 273
Adjustments (reflect
non-GAAP(1) measures):
Restructuring & related expenses 32 59 48 78 13 8 14 17 40 25 27 12 40 8 2 51 61
Environmental reserve - - - - - - - 5 - - - - - - - - -
Pension/post retirement charges 72 4 32 - - - 6 - - - - - - - - - -
Bad debt charge - - 4 - - - - - - - - - - - - - -
New aftermarket customer
changeover costs - - - - - - - - 7 5 6 10 8 - - - -
Pullman recoveries - - - - (5) - - - - - - - - - - - -
Goodwill impairment - - - - - 11 - - 114 - - - - - - - -
Reserve for receivables from
former affiliate - - - - - - - - - - 3 - - - - - -
Change to defined contribution
pension plan - - - - - - - - - - (7) - - - - - -
Consulting fees indexed to
stock price - - - - - - - - - - - - 4 - - - -
Gain on sale of York - - - - - - - - - - - - - - (11) - -
Other non-operational items - - - - - - - - - - - - - - 2 4 4
Adjusted EBITDA* (non-GAAP
$ 844 $ 785 $ 784 $ 707 $ 641 $ 605 $ 517 $ 335 $ 380 $ 487 $ 409 $ 416 $ 399 $ 342 $ 304 $ 298 $ 338
financial measure)(2)
(1) Generally Accepted Accounting Principles
(2) Tenneco presents the above reconciliation of non-GAAP results in order to reflect the results for full years 2000 through 2016 in a manner that allows a better understanding of the results of operational activities separate from the
financial impact of decisions made for the long-term benefit of the company. Adjustments similar to the ones reflected above have been recorded in earlier periods, and similar types of adjustments can reasonably be expected to be
recorded in future periods. Using only the non-GAAP earnings measure to analyze earnings would have material limitations because its calculation is based on the subjective determinations of management regarding the nature and
classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP and non-GAAP earnings measures reflected above to understand and analyze the
results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of operations separate from items that may have a disproportionate positive or negative
impact on the company’s financial results in any particular period.
* Including noncontrolling interests. 49
Net Debt /Adjusted EBITDA*–
Reconciliation of Non-GAAP Results
$ Millions, Unaudited

2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000

Total debt $1,384 $1,210 $1,115 $1,102 $1,180 $1,224 $1,223 $1,220 $1,451 $1,374 $1,385 $1,383 $1,421 $1,430 $1,445 $1,515 $1,527

Total cash 349 288 285 280 223 214 233 167 126 188 202 141 214 145 54 53 35

Debt net of
1,035 922 830 822 957 1,010 990 1,053 1,325 1,186 1,183 1,242 1,207 1,285 1,391 1,462 1,492
cash balances

Adjusted
$ 844 $ 785 $ 784 $ 707 $ 641 $ 605 $ 517 $ 335 $ 380 $ 487 $ 409 $ 416 $ 399 $ 342 $ 304 $ 298 $ 338
EBITDA*

Ratio of net
debt to adjusted 1.2x 1.2x 1.1x 1.2x 1.5x 1.7x 1.9x 3.1x 3.5x 2.4x 2.9x 3.0x 3.0x 3.8x 4.6x 4.9x 4.4x
EBITDA*

Note: We present debt net of cash balances because management believes it is a useful measure of our credit position and progress toward reducing leverage. The calculation is
limited in that we may not always be able to use cash to repay debt on a dollar-for-dollar basis.
* Including noncontrolling interests.

50
Working Capital as a Percentage of Revenue–
Reconciliation of Non-GAAP Results
$ Millions, Unaudited

2016 2015 2014 2013 2012 2011 2010 2009 2008

Receivables $ 1,294 $ 1,112 $ 1,088 $ 1,060 $ 986 $ 980 $ 826 $ 596 $ 574

Inventory 730 682 688 656 667 592 547 428 513

Less: Payables 1,496 1,376 1,372 1,359 1,186 1,171 1,048 766 790

Working Capital $ 528 $ 418 $ 404 $ 357 $ 467 $ 401 $ 325 $ 258 $ 297

Revenue $ 8,599 $ 8,209 $ 8,420 $ 7,964 $ 7,363 $ 7,205 $ 5,937 $ 4,649 $ 5,916

Percentage of Revenue 6.1% 5.1% 4.8% 4.5% 6.3% 5.6% 5.5% 5.5% 5.0%

Tenneco presents the above reconciliation for purposes of computing working capital as a percentage of revenue. We include total receivables, inventory and payables in the
calculation as these are the components of working capital that we have the most direct control over and because they are most closely related to the cash flow performance
of our operations.

51
Adjusted EBIT as a Percentage of Value-Add
Revenue – Reconciliation of Non-GAAP Results
$ Millions 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 2006
Ride Performance revenue $ 2,530 $ 2,486 $ 2,609 $ 2,520 $ 2,437 $ 2,444 $ 2,112 $ 1,730 $ 1,938 $ 1,853 $ 1,706
Clean Air revenue $ 6,069 $ 5,723 $ 5,811 $ 5,444 $ 4,926 $ 4,761 $ 3,825 $ 2,919 $ 3,978 $ 4,331 $ 2,976
Total revenue $ 8,599 $ 8,209 $ 8,420 $ 7,964 $ 7,363 $ 7,205 $ 5,937 $ 4,649 $ 5,916 $ 6,184 $ 4,682
Less: Substrate sales 2,028 1,916 1,934 1,835 1,660 1,678 1,284 966 1,492 1,673 927
Value-add revenues (1) $ 6,571 $ 6,293 $ 6,486 $ 6,129 $ 5,703 $ 5,527 $ 4,653 $ 3,683 $ 4,424 $ 4,511 $ 3,755
EBIT $ 528 $ 519 $ 492 $ 424 $ 428 $ 379 $ 281 $ 92 $ (3) $ 252 $ 196
Adjustments (reflect non-GAAP (2) measures)
Restructuring and related expenses 36 63 49 78 13 8 19 21 40 25 27
Pullman recoveries - - - - (5) - - - - - -
Asset impairment charge - - - - 7 - - - - - -
Goodwill impairment - - - - - 11 - - 114 - -
Bad debt charge - - 4 - - - - - - - -
Pension / post retirement charges 72 4 32 - - - 6 - - - (7)
Environmental reserves - - - - - - - 5 - - -
New aftermarket customer changeover costs - - - - - - - - 7 5 6
Reserve for receivables from former affiliate - - - - - - - - - - 3
Adjusted EBIT (non-GAAP Financial Measures) (3) $ 636 $ 586 $ 577 $ 502 $ 443 $ 398 $ 306 $ 118 $ 158 $ 282 $ 225
Adjusted EBIT as a % of value-add revenue (4) 9.7% 9.3% 8.9% 8.2% 7.8% 7.2% 6.6% 3.2% 3.6% 6.3% 6.0%
(1) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from substrate sales, which include precious metals pricing, which may be volatile. Substrate sales occur when, at the
direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original
equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact. Tenneco uses this information to analyze the trend in revenues before this factor. Tenneco
believes investors find this information useful in understanding period to period comparisons in the company's revenues.
(2) Generally Accepted Accounting Principles
(3) Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the
financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods,
and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based
on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP
and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of
operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period.
(4) Tenneco presents adjusted EBIT as a percentage of value-add revenue to assist investors in evaluating our company’s operational performance without the impact of substrate sales. 52
Adjusted EBIT as a Percentage of Value-Add Revenue –
Clean Air Division – Reconciliation of Non-GAAP Results
$ Millions
2016 2015 2014 2013 2012 2011 2010

Total revenue $ 6,069 $ 5,723 $ 5,811 $ 5,444 $ 4,926 $ 4,761 $ 3,825


Less: Substrate sales 2,028 1,916 1,934 1,835 1,660 1,678 1,284
Value-add revenues (1) $ 4,041 $ 3,807 $ 3,877 $ 3,609 $ 3,266 $ 3,083 $ 2,541
EBIT $ 478 $ 417 $ 397 $ 370 $ 327 $ 298 $ 217
Adjustments (reflect non-GAAP (2) measures)
Restructuring and related expenses 7 10 17 11 7 5 7
Goodwill impairment - - - - - 1 -
Bad debt charge - - 4 - - - -
Pension/post retirement charges - - - - - - 4

Adjusted EBIT (non-GAAP Financial Measures) (3) $ 485 $ 427 $ 418 $ 381 $ 334 $ 304 $ 228

Adjusted EBIT as a % of value-add revenue (4) 12.0% 11.2% 10.8% 10.6% 10.2% 9.9% 9.0%

(1) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from substrate sales, which include precious metals pricing, which may be volatile. Substrate sales occur when, at the
direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original
equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact.
(2) Generally Accepted Accounting Principles
(3) Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the
financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods,
and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based
on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP
and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of
operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period.
(4) Tenneco presents adjusted EBIT as a percentage of value-add revenue to assist investors in evaluating our company’s operational performance without the impact of substrate sales.
53
Adjusted EBIT as a Percentage of Value-Add Revenue –
Ride Performance Division – Reconciliation of Non-GAAP Results
$ Millions
2016 2015 2014 2013 2012 2011 2010
Total revenue $ 2,530 $ 2,486 $ 2,609 $ 2,520 $ 2,437 $ 2,444 $ 2,112
Less: Substrate sales - - - - - - -
Value-add revenues (1) $ 2,530 $ 2,486 $ 2,609 $ 2,520 $ 2,437 $ 2,444 $ 2,112
EBIT $ 238 $ 189 $ 219 $ 139 $ 168 $ 139 $ 145
Adjustments (reflect non-GAAP (2) measures)
Restructuring and related expenses 27 53 28 65 6 3 12
Pullman recoveries - - - - (5) - -
Asset impairment charge - - - - 7 - -
Goodwill impairment - - - - - 10 -
Pension/post retirement charges - - 1 - - - 2

Adjusted EBIT (non-GAAP Financial Measures) (3) $ 265 $ 242 $ 248 $ 204 $ 176 $ 152 $ 159

Adjusted EBIT as a % of value-add revenue (4) 10.5% 9.7% 9.5% 8.1% 7.2% 6.2% 7.5%
(1) Tenneco presents the above reconciliation of revenues in order to reflect value-add revenues separately from substrate sales, which include precious metals pricing, which may be volatile. Substrate sales occur when, at the
direction of its OE customers, Tenneco purchases catalytic converters or components thereof from suppliers, uses them in its manufacturing processes and sells them as part of the completed system. While Tenneco original
equipment customers assume the risk of this volatility, it impacts reported revenue. Excluding substrate sales removes this impact.
(2) Generally Accepted Accounting Principles
(3) Tenneco presents the above reconciliation of GAAP to non-GAAP earnings measures primarily to reflect the results in a manner that allows a better understanding of the results of operational activities separate from the
financial impact of decisions made for the long-term benefit of the company and other items impacting comparability between the periods. Adjustments similar to the ones reflected above have been recorded in earlier periods,
and similar types of adjustments can reasonably be expected to be recorded in future periods. Using only the non-GAAP earnings measures to analyze earnings would have material limitations because its calculation is based
on the subjective determinations of management regarding the nature and classification of events and circumstances that investors may find material. Management compensates for these limitations by utilizing both GAAP
and non-GAAP earnings measures reflected above to understand and analyze the results of the business. The company believes investors find the non-GAAP information helpful in understanding the ongoing performance of
operations separate from items that may have a disproportionate positive or negative impact on the company’s financial results in any particular period.
(4) Tenneco presents adjusted EBIT as a percentage of value-add revenue to assist investors in evaluating our company’s operational performance without the impact of substrate sales. 54
Adjusted Earnings Per Share –
Reconciliation of Non-GAAP Results

2016 2006
Earnings Per Share $ 6.44 $ 1.05

Adjustments (reflect non-GAAP measures):

Restructuring and related expenses 0.57 0.39

Pension / post retirement charges 0.83 (0.10)

New aftermarket customer changeover costs - 0.08

Reserve for receivables from former affiliate - 0.04

Costs related to refinancing 0.27 -

Net tax adjustments (1.96) (0.31)

Adjusted Earnings Per Share $ 6.15 $ 1.15

55