Slide 1: First-Quarter Results and Full-Year 2006 Financial Guidance
fast forward advance relentlessly R First-Quarter Results and Full-Year 2006 Financial Guidance April 26, 2006 Exhibit 99.2
Slide 2: Agenda
Agenda Financial Review Jim Vandenberghe, Vice Chairman and CFO Operating Review Doug DelGrosso, President and COO Business Perspective and Outlook Bob Rossiter, Chairman and CEO Q and A Session
Slide 3: Financial Review
Q ear. Financial Review
Slide 4: First Quarter 2006 Highlights
First Quarter 2006 Highlights First-quarter financial results showed year-over-year improvement Successfully completed the refinancing of $1 billion of debt Reached agreement to contribute European Interiors business to JV with WL Ross & Co. LLC in return for a minority stake* Received recognition f
Slide 5: First Quarter 2006 Industry Environment
First Quarter 2006 Industry Environment
Slide 6: First Quarter 2006 Financial Highlights
First Quarter 2006 Financial Highlights * Please see slides titled "Use of Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 7: First Quarter 2006 Restructuring and Special Items
First Quarter 2006 Restructuring and Special Items * Please see slides titled "Use of Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 8: First Quarter 2006 Segment Results
First Quarter 2006 Segment Results * Segment earnings represent income (loss) before interest, other (income) expense and income taxes. Segment earnings include restructuring costs of $25.0 million (Seating - $16.1, Electronic and Electrical - $2.1, Interior - $6.8) in first quarter 2006.
Slide 9: First Quarter 2006 Free Cash Flow
First Quarter 2006 Free Cash Flow* (in millions) * Free Cash Flow represents net cash provided by operating activities ($39.4 for the three months ended 4/1/06) before net change in sold accounts receivable ($38.1 for the three months ended 4/1/06) less capital expenditures. Please see slides titled
Slide 10: 2006 Guidance Key Assumptions
2006 Guidance Key Assumptions* Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information.
Slide 11: 2006 Guidance Key Financial Projections
2006 Guidance Key Financial Projections* Pretax loss for 2005 was $1,187 million. Please see slides titled "Use of Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information.
Slide 12: 2006 Guidance Directional Assessment of Segment Results
2006 Guidance Directional Assessment of Segment Results* Seating Up Improves Electronic and Electrical Flat Flat Interior Up Loss Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information. Segment Net Sales Margin 2006 vs. 2005
Slide 13: 2006 Guidance Trend of Capital Spending
2006 Guidance Trend of Capital Spending* (in millions) 2003 2004 2005 2006 Guidance HQ 45 43.9 Electrical / Electronics 377 274 Interior 568 400 Capital Spending Level Should Trend Lower On An Ongoing Basis Capital Spending Impacts: Record Launches Lear Flexible Seating Architecture (LFSA) Low-Cost
Slide 14: 2006 Guidance Free Cash Flow Forecast
2006 Guidance Free Cash Flow Forecast* (in millions) Net cash provided by operating activities for 2005 was $561 million. Please see slides titled "Use of Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. First Half 2006 Full Ye
Slide 15: Operating Review
Q ear. Operating Review
Slide 16: Recent Customer and Industry Recognition
Recent Customer and Industry Recognition Toyota--Superior Supplier Diversity and Excellence in Quality Honda--Delivery and Quality Performance Volvo Cars--Supplier Award of Excellence Volkswagen--Supplier of the Year in South Africa Mahindra & Mahindra--Best Performance in Product Development GAZ--B
Slide 17: Core Dimensions Strategy
CORE DIMENSIONS STRATEGY ProTecTM PLuS Adaptive Front Light System IntelliTireTM Car2UTM Two- Way Remote Keyless Entry Immobilizer Foam in Place Head Impact Countermeasure SAFETY COMFORT & CONVENIENCE COMMONIZATION ENVIRONMENTAL INFOTAINMENT CRAFTSMANSHIP FLEXIBILITY Lt. Weight Back Panel Soy Foam P
Slide 18: Safety Dimension Examples of Lear Product Offerings
Safety Dimension Examples of Lear Product Offerings ProTecTM Plus First generation - 3.6M vehicles Second generation self-aligning head restraint Significantly reduces forces and movements in the neck Improved comfort by exceeding regulatory requirements Potential for improved rear and lateral visio
Slide 19: Continue to Diversify Customer Base
Continue to Diversify Customer Base* Revenue in Asia and with Asian Manufacturers 2005 Performance Highlights Supported successful launch of Hyundai's first North American plant (seats, wiring, TPMS) Four recent program awards with Nissan (seats, wiring, carpets) Two new manufacturing facilities in
Slide 20: Restructuring Implementation Status
Restructuring Implementation Status* Objectives Are To Eliminate Excess Capacity, Streamline Organizational Structure And Accelerate Manufacturing Footprint Actions Announced closure of nine manufacturing facilities and several administrative offices Targeting closure of five to seven additional man
Slide 21: Operational Excellence 2006 Key Product Launches
Operational Excellence 2006 Key Product Launches Americas GMT900 SUVs/Pickups Seats, doors Hyundai Santa Fe Seats, TPMS Nissan Versa Overhead systems, trim Nissan Sentra Overhead systems, trim DCX Caliber/Compass/Patriot Overhead systems, trim, doors, flooring, IP International VW Cabrio Seats Peuge
Slide 22: Business Perspective and Outlook
Business Perspective and Outlook
Slide 23: Perspective on the Business
Perspective on the Business* Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information. Lear is Financially Sound Successfully Refinanced $1 Billion of Debt Operating Results Improving Seating Business Improving Electronic and Electrical Business Pe
Slide 24: Margin Outlook for Seating and Electronic and Electrical Segments
Margin Outlook for Seating and Electronic and Electrical Segments* Global Seating margin profile expected to return to historical levels by 2008 . . . Supported by backlog sales, continued diversification (by customer and platform type), cost improvements, restructuring savings and a return to more
Slide 25: New Business Model for Interiors Business
New Business Model for Interiors Business* This segment of the market continues to be under pressure Despite restructuring actions, losses continue this year Repositioning this business remains a top priority Lear signed a Letter of Intent to contribute substantially all of its European Interiors bu
Slide 26: Summary and Outlook
Summary and Outlook* Lear is Financially Sound Successfully Refinanced $1 Billion of Debt Operating Results Showing Improvement Continued Progress on Implementing Restructuring Actions First-Quarter Operating Results Better than a Year Ago Full-Year Results On-Track for Improvement Making Progress o
Slide 27: Advance Relentlessly
ADVANCE RELENTLESSLY(tm) www.lear.com LEA NYSE Listed R
Slide 28: Use of 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 certain non-GAAP financial measures. These measures include "income before interest, oth
Slide 29: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information
Slide 30: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information
Slide 31: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information
Slide 32: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information
Slide 33: 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