It pulls in air just like where the stock air filter does, just on the other side of the radiator. A small section of the plastic air guide is cut to allow flow to the passenger side.
It doesn't matter all too much if you're pulling in hot air. It will be hot when it touches the turbo no matter what. The intercooler is there to cool down the hot air from the compressor.
Oh and there is no turbo in front of the engine heat soaking your engine bay so you're good there too.