WIXLIB

2020 ANNUAL REPORT

Sensor-rich solutions delivering deep insightsSensata is a leading industrial technology company that develops sensors andsensor-based, mission-critical solutions to create valuable business insights forcustomers and end users.We provide a wide range of customized, sensor-rich solutions that address complexengineering requirements to help customers solve difficult challenges.2020 REVENUE BY END MARKET57.5%16.7%4.5%21.3%AUTOHEAVY VEHICLE& OFF-ROAD (HVOR)AEROSPACEINDUSTRIAL& OTHER2020 END MARKET OUTGROWTH* VS. LONG-TERM TARGETTARGET690 BPSAUTO880 BPSHVOR0*200400Business unit revenue growth compared to end market unit growth / decline6008001000

COMMITTED TO ESGSensata is committed to sustainable environmental,social and governance practicesSensata seeks to be a partner, employer, and neighbor of choice. It is Sensata's vision that our productswill enhance the safety, efficiency and comfort for millions of people every day. Sensata focuseson the following areas to enhance Corporate Responsibility and Sustainability in its operations:ENVIRONMENTALE Energy & EmissionsSOCIALS Responsible Sourcing & Labor PracticesGOVERNANCEG Diversity, Equity & Inclusion“Our collective success depends on the diversity ofour team, including gender, race, age, education,place of birth, and other social identities. Creatingan environment where ideas are shared freely iskey to ensuring our employees reach their truepotential and grants us the ability to innovate.– Jeff Cote, Chief Executive Officer & President”

INVESTED IN ELECTRIFICATIONExpanding electrification capabilities and opportunitiesSensata aims to be a leading provider of mission-criticalsensor-rich hardware and software solutions to helpcustomers transition to an Electrified future. 30 billionelectrification addressablemarket opportunity by 2030 180 millionnew electrificationbusiness wins in ngInfrastructureACQUISITION: LITHIUM BALANCELithium Balance further expands Sensata’s portfolio to offermore comprehensive battery management solutions to avariety of heavy vehicle OEMs and integrated energy storagesolutions to commercial and industrial customers. 500 million 6 billionaddressable BatteryManagementSystem marketopportunity by 2030addressable BatteryEnergy StorageSystem marketopportunity by 2030

INVESTED IN SMART & CONNECTEDBecoming a data insight provider for broader fleet ecosystemSensata is engaging with the broader fleet ecosystemto deliver an enhanced value proposition acrossthe transportation and logistics value chain.TELEMATICSTruckto TrailerLinkFleet managers receive theright actionable data in theright place (e.g. web portal,email notifications, etc.)Sensing portfolio collectshigh-value data (e.g. cargocapacity, tire pressuremonitoring system)Vehicle area network enablestruck-to-trailer link and 3rdparty system integration(e.g. automatic tire inflationsystem)Cloud platform remotelymanages devices whileprocessing and distributingdata via APIs to 3rd partysolution providersTelematics devices collectvehicle data and transmit/receive to/from the cloudand/or in-cab displaysACQUISITION: XIRGOXirgo brings complementary capabilities and talent, and acceleratesSensata’s strategy to expand beyond OEMs and address the broaderfleet ecosystem, including telematics service providers, fleetmanagement solution providers, and fleet operators themselves. 7 BHEAVY-DUTYVEHICLE 3 BLIGHT-DUTYVEHICLE 5 BCARGO &CONTAINERS 15 billionaddressable FleetManagement marketopportunity by 2030

Letter to our ShareholdersSENSATA CHIEF EXECUTIVE OFFICERJEFFREY J. COTESensata and the entire world experiencedan enormous global health and economiccrisis caused by the COVID-19 virus in 2020.From the first shutdowns in China, and thenacross every geographic region, Sensata’simmediate priority became ensuring thesafety of our employees while addressing theurgent needs of our partners and customers.While the resulting volatility in the first half ofthe year greatly affected our customers andmarkets, and thus our financial results, wetook necessary actions quickly, to remain agileand to preserve our financial foundation. As aresult, we were well-positioned as end marketsbegan to recover in the third quarter, a trendthat accelerated at the end of the year.Sensata’s dedicated employees and theresilience of our business model enabledus to emerge from this worldwide crisisstronger than ever, producing record freecash flow in the fourth quarter. We are deeplygrateful to Team Sensata, who overcamemyriad difficulties the pandemic posed, aswell as our customers, who demonstratedtheir trust and confidence in us, andindeed, their increased reliance on ourmission-critical products and solutions.2020 FINANCIAL RESULTSFor the full year 2020, Sensata reportedrevenue of 3.05 billion, an organic revenuedecline of 11.9% from 2019, reflecting steepend market declines. Despite those underlyingtrends, Sensata successfully generated 600basis points of outgrowth compared to our endmarkets. In automotive and heavy vehicle &off-road, we outgrew end markets by 690 basispoints and 880 basis points, respectively—higher than our long-term targets of 400–600basis points in automotive and 600–800 basis

points in HVOR. I'm pleased with 2020’soutgrowth, which speaks to the strength of ourresilient business model and the differentiatednature of our products. We also credit oursignificant new business wins in 2020, totalingmore than 465 million, well above our fiveyear average, including higher Electrificationand Smart & Connected wins, setting us up forsustained outgrowth in 2021 and beyond.Through the depth of the pandemic, weeffectively managed our operations andreduced our cost structure through arestructuring program to lower semi-variableoperating costs by 10% that we anticipate willproduce savings of 60– 65 million annuallyin 2021. The impact of the pandemic andeconomic crisis diminished our earnings pershare and our adjusted operating incomemargins in 2020, but we were encouragedby the improvement we delivered in thefourth quarter, with year-over-year growthin revenues and adjusted operating income.For the full year, we sustained investmentsin opportunities that will position Sensatafor future growth, and our free cash flowgeneration remained strong at 453 million,representing an unusually high conversionrate of 130% of adjusted net income; asa result, at year’s end, our net leverageratio was 3.2x, comfortably within ourtarget range. Lastly, we took advantage ofhistorically low interest rates to strengthenour balance sheet, issuing new debt andrepaying higher-interest-bearing debt early.During the first quarter of 2020, werepurchased approximately 35 million ofSensata stock before we paused further actiondue to the pandemic. Since then, our capitaldeployment has been focused on M&A andinvesting in our business, with a focus on ourMegatrend areas of Electrification and Smart& Connected and we expect it to remain so inorder to deliver significant accretive growth forthe Company.“ and the resilience of ourSensata’s dedicated employeesbusiness model enabled us toemerge from this worldwidecrisis stronger than ever.”NON-GAAP REVENUE 870.5MQ12019FREE CASH FLOW 906.5MQ42020 240M 71MQ12019Q42020

EXPANDING MEGATREND INITIATIVES:ELECTRIFICATIONSensata aims to be a leading provider ofmission-critical sensor-rich hardware andsoftware solutions to help customers transitionto an Electrified future, and we made greatstrides in implementing our strategy in thiscritical area in 2020. We are actively investing inElectrification initiatives holistically across ourportfolio, from electric vehicles to e-mobilityapplications for heavy vehicles, charginginfrastructure and industrial grid management,all of which present sizable new opportunitiesin the billions of dollars in the next 5–10 years.New business wins in Electrification in 2020reached 180 million, positioning us well toexpand our footprint in this high-growth area.Our Electrification initiative has been drivenby both internal research and developmentand acquisitions. The acquisition of GIGAVACin 2018 added a leading portfolio of highvoltage protection on EVs and charginginfrastructure. Our strategy includes expandingenergy management expertise and capabilitiesthrough joint ventures and acquisitions. Morerecently, the acquisition of Lithium Balancepropels Sensata into Battery ManagementSolutions and energy storage offerings.Within our automotive business, we areengaged with nearly all of the world’sleading OEMs that are launching battery EVs.Importantly, Sensata contributes 20% highercontent to EVs than a comparable internalcombustion engine vehicle, and in 2020, whenEVs represented about 3% of total global autoproduction, EV revenues comprised about 5%of our total automotive revenues. Sensata components in EVs are not entirely new: at least50% carry over from non-EVs, including tirepressure, brake pressure for electronic stabilitycontrol, and cabin comfort pressure sensors.We see continued growth for our differentiatedsolutions in this rapid-growth arena that alsoprovides important benefits of cleaner air.EXPANDING MEGATREND INITIATIVES:SMART & CONNECTEDIn late 2020 we reached commercialdeployment, a key proof point, in our Smart& Connected initiative, with the initial rolloutof our first fleet customer on a new SaaSbusiness model. This represents the firstimplementation of a full-stack solution forfleets, addressing safety and efficiency,including a vehicle area network, cloudbased data insight delivery solutions, a webportal with data insights, mobile apps, andintegrations with third-party telematics serviceproviders. The fleet retrofit portion addresses afurther 6 billion market opportunity by 2030.In addition, through the OEM channel, we havewon 100 million in new business with truckand trailer OEMs, which represents a 1 billionmarket opportunity.Now, with the acquisition of Xirgo Technologiesin early 2021, we are strengthening ourposition as a data insight provider acrosstransportation and logistics end markets andsignificantly accelerating our growth in Smart& Connected and IoT areas, bringing our totaladdressable market opportunity to 15 billionby 2030. Xirgo, a leading telematics and datainsight provider, expands our offering intolight-duty vehicles, cargo, and containers.We’ve partnered with this high-growth,high-margin business previously, and respectits complementary capabilities, including