Slide 1: Investor Presentation
Investor Presentation October 5, 2011
Slide 2: Agenda
Agenda • Lear Business Overview • 2011 Financial Outlook • Summary 2
Slide 3: Lear Business Overview
Lear Business Overview A LEAR PROPRIETARY AND n consent of Lear Corpor
Slide 4: Present State of the Business
Present State of the Business* • Leading Tier 1 global automotive supplier • Strong global position and low-cost footprint • Leader in product quality, quality customer service and innovation • Diversified sales and customer base serving all of the world’s major automakers • Very strong balance shee
Slide 5: Global Leader in Automotive Seating
Global Leader in Automotive Seating* • Strong Market Position -- One of two dominant suppliers with global scale and Seat* p complete component p capabilities p with ECO Foam F forecasted 2011 sales of approximately $10.6 billion ECO Padding • Key Capabilities -- Complete automotive seat EVO Mini Re
Slide 6: Strong Global Position in Automotive Electrical Power Management Systems
Strong Global Position in Automotive Electrical Power Management Systems* • Strong Market Position -- One of four suppliers with global capability in both traditional and high-power electrical power management systems with forecasted 2011 sales of approximately $3.0$ billion • Key Capabilities -- Tr
Slide 7: Global Capabilities with Low-Cost Footprint
Global Capabilities with Low-Cost Footprint Low-Cost Operations Low-Cost Engineering Centers 21 Countries China, India, Philippines Approximately 93,000 93 000 Employees At 200 Locations In 35 Countries 7
Slide 8: Geographic and Customer Sales Diversification
Geographic and Customer Sales Diversification 2011 First Half Consolidated Sales Total Company p y By Customer Rest of World Asia 8% North America GM BMW 15% 35% Ford VW/Audi All Other Other Fiat/ European E Chrysler Other Asian Renault/ Jaguar/ Mercedes Nissan Europe p Land Rover Benz Hyundai PSA G
Slide 9: 2011 to 2013 Consolidated Sales Backlog
2011 to 2013 Consolidated Sales Backlog* 2011 – 2013 Sales Backlog ((in millions) o s) ≈$2,400 • By B PProduct: d t – Seating -- 60% – Electrical Power Management Systems -- 40% • By Region: ≈$1 000 ≈$1,000 ≈$900 $900 – North America -- 40% ≈$500 – Europe -- 35% – Asia -- 20% 2011‐13 2011 2012 2013
Slide 10: Strong Capital Structure and Liquidity
Strong Capital Structure and Liquidity* Cash and Debt Balances As of July 2, 2011 • One of the strongest balance sheets (in millions) $1 771 $1,771 in the industry; ind str more than ttwice ice as much cash as outstanding debt p g credit metrics • Improving $698 • No outstanding debt maturities unti
Slide 11: Strategic Overview
Strategic Overview AX LEAR PROPRIETARY AND CONFIDENTIAL The n consent of Lear Corporat
Slide 12: Strategic Direction
Strategic Direction* • Seamless CEO transition; strong and experienced management team in place • No major changes in strategy planned – Continued organic investment in emerging markets – Niche acquisitions to strengthen both core businesses – No major acquisitions needed or planned – Maintain stron
Slide 13: Well Positioned for Future Profitable Growth Following Multi-Year Restructuring Initiative
Well Positioned for Future Profitable Growth Following Multi-Year Restructuring Initiative* • Restructured global business operations and diversified sales (2005 to present) – Closed 44 manufacturing and 11 administrative facilities – Located 80% of component plants and 90% of related employment in
Slide 14: Industry Production North America, Europe and BRIC Markets
Industry Production North America, Europe and BRIC Markets* (Millions of Units) 9% 2011 to 2016 CAGR 38.2 36 3 36.3 33.8 30.5 27.8 3% 2011 to 2016 CAGR 24.6 20.8 20.2 20.0 20.6 18.7 18.7 19.0 18.8 22.3 19.3 18 0 18.0 18.5 17 5 17.5 17.1 16.4 15.8 16.2 15.8 15.3 15.6 15.0 14.8 14.0 13.9 15.6 12.7 11.
Slide 15: Liquidity and Capital Allocation
Liquidity and Capital Allocation Total Liquidity* • Intra quarter peak to • Organic Investment trough cash needs – Components in emerging markets – Support backlog growth globally $1.0B • Niche Acquisitions – Strengthen core • Cash unavailable for $1.3B business through dailyy use improved p compone
Slide 16: Investing Approximately $300 Million To Increase Low-Cost Component Capacity
New Investment in Component Capacity in Emerging Markets and Low-Cost Countries (2010-2012)* Morocco Tunisia • Wire Harnesses • Electronics Moldova • Wire Harnesses • Seat Trim Seating Facilities Electrical Facilities China • Metals & Mechanisms • Seat Foam • Seat Trim • Connectors • Electronics Mex
Slide 17: 2011 Financial Outlook
2011 Financial Outlook A LEAR PROPRIETARY AND n consent of Lear Corpor
Slide 18: Full Year 2011 Outlook: Vehicle Production, Euro and Key Commodities
Full Year 2011 Outlook Vehicle Production, Euro and Key Commodities* Vehicle Production Memo: (in millions) 2011 Change From Outlook Prior Year Mature Markets Europe 18.0 up 3% North America 12.7 up 6% J Japan 72 7.2 d down 19% Emerging Markets China 15.8 up 7% Brazil 33 3.3 up 4% India 3.8 up 20% R
Slide 19: Full Year 2011 Financial Outlook
Full Year 2011 Financial Outlook* Full Year 2011 Financial Outlook Net Sales $ $13.4 to $ $13.8 billion Core Operating Earnings $740 to $780 million Pretax income before interest, other expense, restructuring costs and other special items Depreciation and Amortization ≈ $260 million Interest Expense
Slide 20: Summary
Summary A LEAR PROPRIETARY AND CONFIDENTIAL The information contained herein is the exclusive property of Lear Corporation. This data shall not be disseminated or republished without the prior written consent of Lear Corporation.
Slide 21: Summary
Summary* • Seamless CEO transition – Strong and experienced management team in place • Positioned for industry recovery in mature markets and continued industry growth in emerging markets – Diversified Di ifi d sales l and d customer t b base serving i allll off th the world’s ld’ major automakers –
Slide 22: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to the results reported in accordance with accounting principles generally accepted in the United States (“GAAP”) included throughout this presentation, the Company has provided information regarding “pretax income (loss) before interest, other expense, res
Slide 23: Non-GAAP Financial Information: Segment Earnings
Non-GAAP Financial Information Segment Earnings (in millions) 2009 2010 Seating $ 237.3 $ 655.0 Electrical power management (155.8) 100.5 Segment earnings 81.5 755.5 Corporate and geographic headquarters and elimination of intercompany activity (177.8) (217.1) Pretax income (loss) before interest an
Slide 24: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding anticipated financial results and liquidity. The words “will,” “may,” “designed to,” “outlook,” “believes,” “sho