2019 ANNUAL REPORT Garrett Motion is a differentiated technology leader, serving customers worldwide for more than 65 years with passenger vehicle, commercial vehicle, aftermarket replacement, and performance enhancement solutions. The company empowers the global automotive industry by enabling vehicles to become safer, more connected, efficient and environmentally friendly. Garrett has distinguished itself as an industry leader with an intense focus on three strategic priorities: CUTTING-EDGE TECHNOLOGY PROVIDER Garrett’s broad and highly engineered portfolio enables the company to benefit from stringent global fuel economy and emissions standards in addition to the growth in the electrification of powertrains & adoption of connected vehicle technologies. GLOBAL OPERATIONAL EXCELLENCE Garrett has a proven track record of operational excellence with an advanced supply base and world-class footprint comprised of 13 manufacturing plants, 14 close-to-customer engineering facilities, five R&D centers, and three software development hubs. LONG-STANDING CUSTOMER PARTNERSHIPS Since the company was founded over 65 years ago, Garrett has developed strong and collaborative relationships with top automakers worldwide to help solve critical issues and shape the future of automotive powertrain development. 2019 ANNUAL REPORT 1 Dear Fellow We also advanced our electrification capabilities in alignment with our strategy to bring differentiated technologies to the marketplace that address the needs of an evolving industry. It is estimated the Stockholders, global production of electrified vehicles is expected to increase at an annual rate of more than 40% by 2023. We intend to capitalize In 2019, Garrett Motion completed its first full year operating as an on this favorable trend with our proprietary E-Turbo, which is in the independent public company, delivering positive financial results final stages of industrialization for an initial mass-market launch amid a challenging market environment. In our inaugural letter, we next year. Garrett’s E-Turbo integrates our own high-speed electric outlined a strategy aimed at addressing the needs of an industry motor and power electronics into the turbo and provides energy undergoing significant transformation by leveraging our differentiated technologies, global operational excellence, extensive customer relationships, and proven financial foundation. The strategic steps we have taken in 2019 to advance our mission underscores Garrett’s Garrett’s burgeoning unique business model and attractive long-term growth prospects. LV Gasoline segment FINANCIAL YEAR IN REVIEW increased to 34% of net We accomplished several important milestones in 2019. Our strong reported net sales performance for the year of $3.25 billion was up sales, up 900 basis points slightly at constant currency, outperforming global auto production from the prior year, driven by approximately 600 basis points. This outperformance surpassed our expectations and was achieved while experiencing a major shift by a robust schedule of in our product portfolio. Garrett’s burgeoning LV Gasoline segment increased to 34% of net sales, up 900 basis points from the prior year, new product launches and driven by a robust schedule of new product launches and share-of- demand gains. Based on this considerable growth, our total net sales share-of-demand gains. from Gasoline products exceeded Diesel products for the full year – well ahead of management’s plan. recuperation to the vehicle’s electrical system. This sophisticated Additionally, we maintained our financial strength during the year technology highlights Garrett’s unique expertise by building by taking advantage of our flexible and resilient operating platform. complex motor systems running at more than 200,000 revolutions Specifically, we drew upon our highly variable cost structure, per minute with temperatures exceeding 1,000 degrees Celsius. advanced supply base management, and significant working capital We expect to be first-to-market with the E-Turbo, reinforcing our turnover to preserve our top-tier margins and generate cash from position as an industry pioneer. operations of $242 million. Consistent with our focus since going public, we utilized our solid free cash flow to reduce debt and In further accelerating our electrification portfolio, we deleverage our balance sheet, a prudent strategy in confronting received our first hydrogen fuel cell award in China and intend what has become an unprecedented global economic crisis. to start production next year of our second-generation fuel cell compressor. We believe our E-Compressor is the most progressive LEADING INDUSTRY INNOVATOR technology in the fuel cell space with both the maturity and affordability essential in realizing sustainable and environmentally friendly energy solutions. Currently, we are engaged in multiple Our ongoing commitment to provide cutting-edge technologies OEM projects to develop our E-Compressors for hydrogen fuel cell delivering superior performance, fuel economy, and emissions has vehicles during a time when the demand for alternative energy solidified Garrett’s role as a premier innovator in the automotive sources continues to grow. industry. With the number of turbocharged vehicles expected to increase globally by more than 220 million over the next five years, Garrett’s new era of E-Boosting and fuel cell technologies paves we are well positioned to continue to benefit from these positive the way for leading automotive companies to revolutionize the fundamentals and expand our leading market position. powertrains of the future. In concert with our high-tech hardware, Garrett’s connected software controls support performance Garrett was first to apply variable nozzle turbine (VNT) technology and optimize energy management by integrating boost control at scale and our next-generation design is able to withstand extreme algorithms within existing electronic control units. Furthermore, temperatures while supporting engine downsizing. As we maintain a strong our innovative software solutions employ smart diagnostic and customer win rate across our core turbo technologies, we expect to prognostic technologies to maximize vehicle uptime and enhance drive greater content per vehicle led by the growth in gasoline VNT. overall reliability while protecting passengers and their data against cyber threats. Our strong momentum in the software domain reaffirms 2 Garrett’s ability to collaborate with its global customers, including employees and the local communities we serve. As a market leader more than 60 OEMs, and provide world-class technical solutions enabling automobile companies to deliver cleaner, safer vehicles, we extending far beyond the company’s traditional product portfolio. take our corporate responsibility seriously. Focusing on long-term, shared value creation, we made considerable progress in our first THE YEAR AHEAD year as an independent company to strengthen our sustainability approach: We formed a Sustainability Committee at the senior 2020 started with substantial disruption across the global leadership level and prioritized the topics that are material for automotive industry and economies around the world. We our business. We also completed our first CDP Climate Change responded rapidly to the market downturn by leveraging our disclosure and launched our WeCare4 sustainability framework. flexible operations and worldwide capabilities, both key strengths of MAKING IT POSSIBLE Garrett. We have also taken a series of aggressive actions to control costs and enhance our financial liquidity, and are determined to Garrett’s success in its first full year operating independently emerge from this crisis as a stronger company. against a challenging macro backdrop is testament to the hard work and dedication of its employees located around the world. CORPORATE SUSTAINABILITY Once the COVID-19 crisis is over, automakers may encounter even tougher regulations and technical challenges and Garrett will As we continue to confront the COIVD-19 pandemic, our first be there fully engaged to bring them its differentiated products priority remains on protecting the health and safety of our and solutions. I thank our team for all of their efforts in delivering high-quality service and strengthening Garrett’s global brand. I would also like to thank our valuable customers, loyal shareholders, and other key stakeholders for their support, and look forward to sharing our progress with you in the future. Sincerely, OLIVIER RABILLER President & Chief Executive Officer Garrett Motion Inc. 2019 ANNUAL REPORT 3 A Sustainable Company Mission At Garrett, we’re here to help the automotive industry reduce the environmental impact of vehicles and safeguard against the security and financial risks inherent to vehicle connectivity. Garrett’s 65-year legacy as an innovator and problem-solver is at the heart of the company’s commitment to develop solutions for the industry’s most pressing sustainability issues, from emissions reduction to cybersecurity. Cleaner, Safer Vehicles Our WeCare4 sustainability approach starts with this mission, and the cutting-edge technologies we deliver to our customers each day. CLEANER SAFER ENHANCED MOBILITY MOBILITY DRIVABILITY Increased Fuel Cybersecurity Engine Economy Performance Energy Enhanced Improved Management Troubleshooting Responsiveness Reduced Enjoyable Improved Reliability Emissions Drive 4 Two areas of focus support our contribution to sustainable mobility Culture of Innovation Responsible Operations DEVELOPING