Slide 1: Annual Meeting of Stockholders
May 21, 2009 Annual Meeting of Stockholders Exhibit 99.1
Slide 2: Lear Overview
Lear Overview* Global economy and automotive industry experiencing a severe downturn Financial results and cash flow adversely impacted Lear is accelerating and expanding restructuring and cost reduction activities Discussions with lenders and others regarding a restructuring of capital structure ar
Slide 3: 2001-2008 Global Industry Production
2001 - 2008 Global Industry Production 2000 2001 2002 2003 2004 2005 2006 2007 2008 55.5 53.7 55.9 57.4 60.1 62.5 65 68.6 65.4 East West North Source: CSM Worldwide (in millions of units) 68.6
Slide 4: Fourth-Quarter and Full-Year 2008 Global Industry Production Environment
Fourth-Quarter and Full-Year 2008 Global Industry Production Environment
Slide 5: Net Sales and Core Operating Earnings Declined as Industry Entered Downturn
Net Sales* 2005 2006 2007 2008 14 14.6 15 13.6 East West North Excludes Interior business: - 2005 -- $3.1 billion - 2006 -- $3.2 billion - 2007 -- $0.7 billion (in billions) 2005 2006 2007 2008 401 558 750 418 East West North (in millions) Core Operating Earnings* In 2008, Lear's Net Sales and Core
Slide 6: Full-Year 2008 Seating Performance
Full-Year 2008 Seating Performance* Explanation of Year-to-Year Change (in mils) Sales Rep. Earnings** Adj. Earnings** ** Reported segment earnings represents pretax income before goodwill impairment charges, interest and other expense; adjusted segment earnings represents reported segment earnings
Slide 7: Full-Year 2008 Electrical and Electronic Performance
Explanation of Year-to-Year Change (in mils) Sales Rep. Earnings** Adj. Earnings** ** Reported segment earnings represents pretax income before goodwill impairment charges, interest and other expense; adjusted segment earnings represents reported segment earnings adjusted for restructuring costs. Sa
Slide 8: 2001-2008 Historical Cash Flow Levels
2001 - 2008 Historical Cash Flow Levels 2005 Unusual Factors Change in customer payment terms (four-day delay resulted in full-month impact to reported cash flow) Historically large backlog / launch schedule and associated investment Customer production volatility Increasing commodity costs / suppli
Slide 9: Update on Company's Capital Structure
Update on Company's Capital Structure* Lear and its lenders under the primary credit facility agreed to extend the waiver of covenant defaults through June 30th The Company recognizes that it needs to address its debt structure Lear has a strong liquidity position with $1.2 billion in cash and cash
Slide 10: 2005-2008 Aggressive Restructuring Actions
2005 - 2008 Aggressive Restructuring Actions ($ in millions) ($ in millions) 2006 2008 Ongoing East 70 250 325 West 30.6 38.6 34.6 North 45.9 46.9 45 2005 2006 2007 2008 East 104 100 182 194 West Objectives: Eliminate excess capacity, improve operating efficiency in response to structural changes wi
Slide 11: Full-Year 2008 Making Progress on Sales Diversification
Full-Year 2008 Making Progress on Sales Diversification By Region By Customer All Other GM Ford BMW Asian OEMs VW/Audi Fiat PSA Group Saab/Volvo Mercedes Benz Renault/Nissan Chrysler Jaguar/Land Rover 6.7 21.5 15.8 11.5 6.7 6.7 6.7 5.2 4.9 4.5 4.4 3 2.4 GM North America ROW Europe East 0.36 0.15 0.4
Slide 12: 2009-2011 Sales Backlog
2009 - 2011 Sales Backlog (Status as of January 2009)* 2009-2011 2009 2010 2011 Consolidated 1100 0 700 400 By Product: Seating -- 60% Electrical and Electronic -- 40% By Region: North America -- $0 Europe -- $300M Asia -- $800M 2009 - 2011 Sales Backlog ($ in millions) Composition of Sales Backlog
Slide 13: Positioned for Industry Recovery
Positioned for Industry Recovery* Strong global capabilities in critical automotive systems -- Seating and Power Distribution Improved annual cost structure by about $325 million through aggressive restructuring actions since mid-2005 Significant low-cost footprint in place, with operations in 21 co
Slide 14: Summary and Outlook
Summary and Outlook* Business conditions continue to be very challenging globally We are following a lean operating structure and a targeted investment strategy We are accelerating and expanding restructuring and cost reduction actions At the same time, we are maintaining our focus on operating prio
Slide 15: Annual Meeting of Stockholders
Annual Meeting of Stockholders
Slide 16: 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 before interest, other expense, restructuring costs and other special ite
Slide 17: Non-GAAP Financial Information: Core Operating Earnings
Non-GAAP Financial Information Core Operating Earnings
Slide 18: Non-GAAP Financial Information: Segment Earnings
Non-GAAP Financial Information Segment Earnings
Slide 19: Non-GAAP Financial Information: Adjusted Segment Earnings
Non-GAAP Financial Information Adjusted Segment Earnings
Slide 20: Non-GAAP Financial Information: Cash from Operations and Free Cash Flow
Non-GAAP Financial Information Cash from Operations and Free Cash Flow
Slide 21: 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. Actual results may differ materially from anticipated results as a