Slide 1: Annual Meeting of Stockholders
Exhibit 99.1 Annual Meeting of Stockholders May 8, 2008
Slide 2: Agenda
Agenda Major 2007 Accomplishments Bob Rossiter, Chairman, CEO and President 2007 Financial Results and 2008 Outlook Matt Simoncini, SVP and CFO Strategy and Summary Dan Ninivaggi, EVP, Strategic and Corporate Planning 2
Slide 3: Major 2007 Accomplishments
Major 2007 Accomplishments 3
Slide 4: Major 2007 Accomplishments
Major 2007 Accomplishments Significant progress on restructuring actions; recently implemented a truly global structure for business units Improved financial results; strengthened balance sheet Completed divestiture of North American Interior business Maintained quality and product innovation moment
Slide 5: Benefits of Lear's Global Organization Structure
Benefits of Lear’s Global Organization Structure* During the first quarter of 2008, Lear implemented a new global operating structure for its Seating and Electrical and Electronic business units. This structure . . . Best aligns Lear with the global strategies of its major customers Allows Lear to t
Slide 6: Strong Market Position in Core Products
Strong Market Position in Core Products Seating Systems Annual sales of $12.2 billion #2 globally, in a market estimated ~ to be ~ $50 billion in size: - #2 in North America - #3 in Europe - Leader in China and India First to market SoyFoam™ and leader in whiplash protection with ProTecPLuS™ Electri
Slide 7: Major Customer Awards and Industry Recognition
Major Customer Awards and Industry Recognition 2007 Customer Awards “Supplier of the Year” for global Seating Systems 3 World Excellence Awards-- "Gold Award” at Genk, Belgium seating plant "Silver Award” and "Recognition of Achievement for consumer-driven Six-Sigma” at St. Thomas, Ontario Canada se
Slide 8: Continued Diversification of our Global Sales
Continued Diversification of our Global Sales Geographically And by Customer Europe Saab, Volvo, Classic Ford & GM 43% Jaguar and Land Rover 42% 7% Chrysler BMW Fiat All Other PSA Porsche VW Renault Daimler Rest of World North America Toyota 12% 45% Hyundai Nissan Mazda 8
Slide 9: 2007 Financial Results and 2008 Outlook
2007 Financial Results and 2008 Outlook 9
Slide 10: Since 2005, Lear has Improved Net Sales And Core Operating Earnings
Since 2005, Lear has Improved Net Sales And Core Operating Earnings** Net Sales* Core Operating Earnings* (in billions) (in millions) $749 $15.3 $14.6 $14.0 $558 $401 2005 2006 2007 2005 2006 2007 * Excludes Interior business: * Excludes Interior business: - 2005 -- $3.1 billion - 2005 -- $(77) mill
Slide 11: 2007 Results Returned to Historical Cash Flow Levels
2007 Results Returned to Historical Cash Flow Levels Free Cash Flow* (in millions) $509 $434 $395 $318 $317 $116 2001 2002 2003 2004 2005 2006 2007 ($419) 2005 Unusual Factors Change in customer payment terms (four-day delay resulted in full-month impact to reported cash flow) Historically large bac
Slide 12: 2007 Results: Seating Business Performing Well
2007 Results Seating Business Performing Well* Adjusted Seating Margin ** Business Assessment Market Environment 7.0% Strong competitive position globally Business performing well today 5.6% Core Strategies Leverage global leadership in system integration 3.5% Achieve lowest cost global footprint Ex
Slide 13: 2007 Results: Electrical and Electronic Business in Transition
2007 Results Electrical and Electronic Business in Transition* Adjusted Electrical and Electronic Margin ** Business Assessment 7.4% Market Environment Fierce global competition depressing margins Increasing consumer demand for electrical content in vehicles 4.9% Core Strategies Further develop syst
Slide 14: Business Conditions: Global Automotive Industry Environment
Business Conditions Global Automotive Industry Environment* Global industry production for 2008 is projected to be up 3%, driven by solid growth in emerging markets Business conditions in North America remain challenging: 2008 industry production forecasted at the lowest level since 1993 Shifts in c
Slide 15: Business Conditions: 2008 Outlook for Industry Production
Business Conditions 2008 Outlook for Industry Production* 2008 Industry Production Outlook (in millions of vehicles) Major Market 2008 B/(W) 2007 North America 14.1 (6)% Europe 20.2 0% China 7.8 13% Brazil 3.0 12% India 2.5 31% Russia 1.8 19% Global 70.6 3% 17.2 North American Production (in million
Slide 16: Business Conditions: Key Commodity Price Trends Since 2004
Business Conditions Key Commodity Price Trends Since 2004 Steel (Hot Roll) Copper $0.50 ($ / lb.) $4.00 ($ / lb.) $0.45 $3.00 $0.40 $2.00 $0.35 $0.30 $1.00 Jan '04 Mar '08 Jan '04 Mar '08 Source: AAM Source: NYMEX Steel pricing includes processing fee Crude Oil Foam Chemicals $100 ($ / bbl.) $1.50 (
Slide 17: Business Conditions: Monitoring and Managing Supply Chain
Business Conditions Monitoring and Managing Supply Chain* Lear has been proactive in monitoring and managing supply chain for several years Actions have included supply base compression, value engineering, selective in-sourcing and managing contractual terms Lear significantly decreased its exposure
Slide 18: Positive Factors in 2008 Help Lear Mitigate Adverse Production Environment
Positive Factors in 2008 Help Lear Mitigate Adverse Production Environment in North America* Net new business of $330 million in 2008 Growth in Asia and with Asian manufacturers globally Increasing savings from global restructuring actions Ongoing operating efficiencies and cost reductions Continuin
Slide 19: 2008 Outlook: Full-Year Financial Forecast
2008 Outlook Full-Year Financial Forecast* 2008 Full-Year Financial Forecast Net Sales ~ ~ $15.5 billion Core Operating Earnings $660 to $700 million Income before interest, other expense, income taxes, restructuring costs and other special items Interest Expense $185 to $195 million Pretax Income $
Slide 20: Strategy and Summary
Strategy and Summary 20
Slide 21: Business Assessment
Business Assessment* We have implemented a number of significant actions to reposition our business for future success and improved shareholder value Despite challenging business conditions, we are continuing to improve our financial results and strengthen our balance sheet We are continuing to dive
Slide 22: Electrical and Electronic Segment Competitive Strengths
Electrical and Electronic Segment Competitive Strengths* Overall Recognized expertise in power and signal distribution and management Meaningful market positions from which to leverage growth across customers and regions Footprint to support global programs and global customers Improving low-cost gl
Slide 23: Electrical and Electronic Segment Key Objectives
Electrical and Electronic Segment Key Objectives* Achieve Critical Scale in Electrical Distribution Increase scale to become a top-tier wire harness supplier globally Diversify sales mix – by customer and geographically Complete global restructuring; achieve lowest-cost global footprint Leverage tec
Slide 24: Seating Segment Leadership Strengths
Seating Segment Leadership Strengths Customer / Platform Breadth Customers include all major OEMs, globally Products across all vehicle segments “Best-in-class” expertise across platforms Customer-Focused Industry leading benchmarking capabilities via Cost Technology Optimization (“CTO”) Consumer be
Slide 25: Seating Segment Key Objectives
Seating Segment Key Objectives* Global Leadership Position in Seating #1 market position in North America, Europe, China and India Diversify sales mix – by customer, market and platform Achieve lowest-cost global footprint Selectively increase vertical integration in key components Technology/techni
Slide 26: Lear Positioned to Realize Future Value Through Interior Joint Ventures
Lear Positioned to Realize Future Value Through Interior Joint Ventures* International Automotive Components (IAC) – Lear’s Interior business joint venture with W. L. Ross & Co. and Franklin Mutual Advisers – is a global market leader with annual sales of about $5.5 billion: Products include door pa
Slide 27: Summary and Outlook
Summary and Outlook* Business structure improvements being aggressively implemented to improve long-term competitiveness: Divested Interior business; retained minority interest Aggressive actions to improve cost structure since 2005 Sales diversification; expanding low-cost footprint Adopted global
Slide 28: Annual Meeting of Stockholders
Annual Meeting of Stockholders May 8, 2008
Slide 29: 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 “income before interest, other expense, income taxes, res
Slide 30: Non-GAAP Financial Information: Core Operating Earnings
Non-GAAP Financial Information Core Operating Earnings (in millions) 2007 2006 2005 Pretax income (loss) $ 331.4 $ (655.5) $ (1,187.2) Divestiture of Interior business 10.7 636.0 - Interest expense 199.2 209.8 183.2 Other expense, net * 32.5 87.8 96.6 Income (loss) before interest, other expense and
Slide 31: Non-GAAP Financial Information: Segment Earnings Reconciliation
Non-GAAP Financial Information Segment Earnings Reconciliation (in millions) 2007 2006 2005 Seating $ 758.7 $ 604.0 $ 323.3 Electrical and electronic 40.8 102.5 180.0 Interior 8.2 (183.8) (191.1) Segment earnings 807.7 522.7 312.2 Corporate and geographic headquarters and elimination of intercompany
Slide 32: Non-GAAP Financial Information: Adjusted Segment Earnings
Non-GAAP Financial Information Adjusted Segment Earnings 2007 2006 2005 Electrical and Electrical and Electrical and Seating Electronic Seating Electronic Seating Electronic Sales $ 12,206.1 $ 3,100.0 $ 11,624.8 $ 2,996.9 $ 11,035.0 $ 2,956.6 Segment earnings $ 758.7 $ 40.8 $ 604.0 $ 102.5 $ 323.3 $
Slide 33: Non-GAAP Financial Information: Cash from Operations and Free Cash Flow
Non-GAAP Financial Information Cash from Operations and Free Cash Flow (in millions) 2007 2006 2005 2004 2003 2002 2001 Net cash provided by operating activities $ 466.9 $ 285.3 $ 560.8 $ 675.9 $ 586.3 $ 545.1 $ 829.8 Net change in sold accounts receivable 168.9 178.0 (411.1) 70.4 298.1 122.2 (245.0
Slide 34: 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