Slide 1: First Quarter 2003 Earnings Review and Updated Guidance
First Quarter 2003 Earnings Review and Updated Guidance a d v a n c e r e l e n t l e s s l y April 16, 2003 1 Exhibit 99.2
Slide 2: Agenda
I. Strategic Focus Bob Rossiter, Chairman & CEO II. Industry Update Jim Vandenberghe, Vice Chairman III. First Quarter Results and 2003 Outlook Dave Wajsgras, SVP & CFO IV. Q & A Agenda
Slide 3: Strategic Focus
#1 or #2 in Market Share in Core Products / Markets Highest Rated Tier I Supplier in Quality and Customer Satisfaction Best Equity Value in Industry Customer-Focused and Performance-Driven Culture Strategic Focus
Slide 4: First Quarter 2003 Highlights
Record quarterly net sales of $3.9 billion Earnings per share of $1.01, up 44% from prior year's comparable basis Strong cash flow and continued debt reduction Named a 2002 "Supplier of the Year" by General Motors Received three World Excellence Awards from Ford Motor Company Ranked as America's 'Mo
Slide 5: Lear Named America's Most Admired Automotive Parts Supplier
1 3 Lear Corporation 7.34 2 1 Johnson Controls 7.21 3 2 Delphi Corporation 5.92 4 N/A Goodyear Tire 5.60 5 6 Dana 5.34 6 5 TRW 5.11 7 8 ArvinMeritor 4.82 8 7 Visteon 4.45 9 N/A Bridgestone/Firestone 3.86 10 10 Federal-Mogul 2.99 Lear Moves up to First from Third in Fortune's Most Admired Survey Rank
Slide 6: Lear is a Customer-Focused and Performance-Driven Company
Lear is a Customer-Focused and Performance-Driven Company Industry Update Major Customer Initiatives Interior Integration - Lear is leading GM's Total Interior Integration initiative with the first-ever TI award and working cooperatively to support GM's efforts to deliver "crafted interiors" Team Va
Slide 7: Update on Major Lear Initiatives
Six Sigma - Deployed globally with 700 blackbelts and over 4,000 greenbelts in place; 8,000 projects now complete Lean Manufacturing - Lean Manufacturing action plans now in place in about 90% of our facilities worldwide New Product Launches Globally - Lear is working closely with all of our custome
Slide 8: Sales Backlog Supports 5% Annual Revenue Growth
Lear positioned for 5% annual sales growth Based on current backlog and a constant 16M vehicle production environment in both North America and Western Europe Sales Backlog Supports 5% Annual Revenue Growth 2002 2003 2004 2005 2006 2007 East 14425 14425 15325 16025 17025 17925 West 900 700 1000 900
Slide 9: Broader Definition of Automotive Interior Market
Broader Definition of Automotive Interior Market Cockpits Electronics
Slide 10: A Broader Focus on Cockpits and Electronics Expands Potential Market
A Broader Focus on Cockpits and Electronics Significantly Expands Lear's Potential Market Current Global Market Add Cockpits Add Electronics Add Cockpits and Electronics East 27 61 61 61 West 15 60 70 60 North 19 70 Current Global Market Add Cockpits Add Electronics Add Cockpits and Electronics Tota
Slide 11: Financial Review: Production Environment - First Quarter 2003
Financial Review Production Environment - First Quarter 2003 North America Industry production up 3%; Big Three up 1% CPV of $594 up 3% from a year ago, reflecting new business Western Europe Industry production down 2%; key Lear customers/platforms down more than industry average CPV adjusted for f
Slide 12: Financial Highlights - First Quarter 2003
Net Sales $ 3,898.7 $ 3,534.6 $ 364.1 Operating Income $ 161.9 $ 141.0 $ 20.9 O/I Margin 4.2 % 4.0 % 20 bps Net Income * $ 67.9 $ 46.4 $ 21.5 Earnings Per Share * $ 1.01 $ 0.70 $ 0.31 SG&A % of Sales 3.8 % 3.7 % ( 10 )bps Interest Expense $ 53.1 $ 57.0 $ 3.9 Other Expense, Net $ 11.8 $ 14.2 $ 2.4 Ve
Slide 13: 1Q03 versus 1Q02 - Change in Operating Income
Industry Vehicle Production N.A. 6% W.E. (1)% S.A. (22)% Industry Vehicle Production N.A. 3% W.E. (2)% S.A. 11% Total Change Net Production, Mix & Efficiencies Currency & Related Divestitures Global New Business East 21 5 5 0 11 . (in millions) $21 $5 $11 $5 Change in Net Sales $364 $(92) $216 $240
Slide 14: 1Q03 Free Cash Flow
Net Income $ 68 Depreciation 74 Working Capital / Other 8 Cash from Operations * $ 150 Capital Expenditures ( 70 ) Free Cash Flow $ 80 First Quarter 2003 (in millions) Financial Review 1Q03 Free Cash Flow * Excludes net change in sold accounts receivable of $53 million
Slide 15: Financial Review: Business Conditions
Financial Review Business Conditions North America U.S. retail sales in February were below 16 million annual rate; March sales slightly above 16 million annual rate Second quarter production scheduled to be down 10%, with Big Three down about 15% New round of zero percent financing programs announc
Slide 16: 2003 Vehicle Production Outlook
North America (in millions) Western Europe (in millions) 2003 Production Down in North America and Western Europe Q2 4.6 Down 10% Financial Review 2003 Vehicle Production Outlook FY 2002 Actual FY 2003 Outlook East 16.4 15.7 West 0.2 FY 2002 Actual FY 2003 Outlook East 16.2 15.7 0.2 Q2 4.4 Down 5%
Slide 17: 2003 Guidance
Second Quarter Earnings Per Share Full Year Earnings Per Share Net Sales of $3.8 - $3.9 Billion 2001 2002 2003 4th Qtr East 0.74 1.27 1.2 20.4 West 0.1 31.6 North 45.9 46.9 45 43.9 Interest Expense $ 50 M $ 200 M Capital Expenditures $ 100 M $ 300 M Free Cash Flow $ 75 M $ 350 - 400 M 2001 2002 2003
Slide 18: The Lear Philosophy
The Lear Philosophy Put Our Customers First in Everything We Do Stay focused on what we can control - - quality, customer service, cost and delivery Operate with a LBO mentality Work together as a cohesive team Continuously improve the fundamentals of our business Conduct our business with integrity
Slide 19: Advance Relentlessly
ADVANCE RELENTLESSLY(tm) NYSE: LEA www.lear.com
Slide 20: Forward-Looking Statements
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results. Actual results may differ materially from anticipated results as a result of certain risks and uncertainties, in