Slide 1: Fourth Quarter and Full Year 2021 Financial Results
Fourth Quarter and Full Year 2021 Financial Results February 8, 2022 Ray Scott, President and CEO Jason Cardew, Senior Vice President and CFO Making every drive better™ 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement 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,” “outl
Slide 3: Agenda
Agenda BUSINESS UPDATE Ray Scott, President and CEO FINANCIAL REVIEW Jason Cardew, Senior Vice President and CFO CONCLUDING REMARKS Ray Scott, President and CEO Lear Proprietary: The information contained herein is the property of Lear Corporation. 3
Slide 4: Business Update
Business Update Ray Scott, President and CEO
Slide 5: Financial Overview Full Year 2021
Financial Overview Full Year 2021 $19.3B $826M SALES CORE OPERATING EARNINGS UP 13% YOY UP 35% YOY $7.94 4.3% ADJUSTED EARNINGS ADJUSTED OPERATING PER SHARE MARGIN UP 49% YOY UP 70 BPS YOY Please see appendix for discussion of non-GAAP financial measures, as well as reconciliations of non-GAAP finan
Slide 6: 2021 Business Highlights
2021 Business Highlights Above market sales growth and strong new business wins in both business segments; Seating market share increased from 23% to 25% Expanding capabilities in Seating thermal comfort systems through pending Kongsberg Interior Comfort acquisition Accelerating growth in connection
Slide 7: Key 2022 Product Launches
= Electric Vehicle Seating = Luxury Key 2022 Product Launches KEY JIT AND COMPONENT LAUNCHES BMW X5 Mercedes EQE Mercedes EQS (SUV) Mercedes GLC CONQUEST JIT, Leather, JIT, Rear Structure, JIT, Seat Covers, Leather JIT, Leather, Seat Covers, Structures Foam, Fabric NORTH AMERICA Seat Covers, Structu
Slide 8: Key 2022 Product Launches
E-Systems = Electric Vehicle Key 2022 Product Launches KEY WIRE LAUNCHES KEY ELECTRONICS LAUNCHES Land Rover Ford GMC Mazda Range Rover Sport F250 / F350 SuperDuty Hummer Pickup MX-30 Low Voltage Low Voltage Battery Disconnect Unit Onboard Charger Global Autonomous Great Wall Volvo EV OEM Vehicle T6
Slide 9: Sales Backlog (Net New Awarded Business)
Sales Backlog (Net New Awarded Business) 2022–2024 CONSOLIDATED SALES BACKLOG CONSOLIDATED BACKLOG BY REGION ($ in millions) ($ in millions) North America Europe ≈$3,300 ≈$1,475 ≈$1,000 SEATING E-SYSTEMS $1,025 ≈$1,450 ≈$1,250 $2,275 $500 $325 Asia South ≈$800 ≈$600 America $925 $950 $200 ≈$25 $400
Slide 10: Financial Review
Financial Review Jason Cardew, Senior Vice President and CFO
Slide 11: Fourth Quarter 2021 Global Vehicle Production and Currency
Fourth Quarter 2021 Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q4 2020 23.0 Q4 2020 3.9 Q4 2020 5.4 Q4 2020 7.3 Q4 2021 20.0 Q4 2021 3.3 Q4 2021 4.0 Q4 2021 7.0 DOWN 13% YOY DOWN 15% YOY DOWN 26% YOY DOWN 4% YOY KEY CUR
Slide 12: Growth Over Market
Growth Over Market Full Year 2021 8% FY 2021 6% Q4 2021 6% EUROPE Global GoM ▪ Seating: Backlog and favorable platform mix ▪ E-Systems: Backlog 11% NORTH AMERICA partially offset by 2% CHINA unfavorable mix 9% FY 2021 ▪ Seating: Backlog and ▪ Seating: Backlog 7% Q4 2021 favorable platform mix ▪ E-Sy
Slide 13: Key Financials Fourth Quarter 2021
Key Financials Fourth Quarter 2021 ($ in millions, except per share amounts) 2020 2021 YEAR-OVER-YEAR DRIVERS Lower volume and foreign exchange, partially offset by backlog Net Sales $5,243 $4,880 and commodity passthrough Core Operating Earnings $330 $158 Lower volume and higher commodity costs, pa
Slide 14: Key Financials Full Year 2021
Key Financials Full Year 2021 ($ in millions, except per share amounts) 2020 2021 YEAR-OVER-YEAR DRIVERS Backlog, increased volume, foreign exchange and commodity Net Sales $17,046 $19,263 passthrough Core Operating Earnings $614 $826 Operating performance, backlog and increased volume, Operating Ma
Slide 15: Seating Sales and Margin Drivers
Seating Sales and Margin Drivers Full Year 2021 ($ in millions) SALES ADJUSTED EARNINGS AND MARGIN $295 $14,411 140 bps 6.3% $150 $486 15 bps $767 $912 65 bps $12,713 5.4% (130 bps) $681 2020 Volume / Mix Backlog Commodities FX 2021 2020 Volume / Backlog Commodities Net 2021 / Other Mix Performance
Slide 16: E-Systems Sales and Margin Drivers
E-Systems Sales and Margin Drivers Full Year 2021 ($ in millions) SALES ADJUSTED EARNINGS AND MARGIN $112 $4,852 $175 120 bps 4.1% $425 $197 3.6% 70 bps $4,333 $157 (60) bps (80) bps $(193) 2020 Volume / Backlog Commodities FX 2021 2020 Volume / Backlog Commodities Net 2021 Mix / Other Mix Performan
Slide 17: Increased Financial Flexibility and Returned Capital to Shareholders
Increased Financial Flexibility and Returned Capital to Shareholders LIQUIDITY DEBT MATURITIES • $3.3 billion in total liquidity, including $2.0 billion ($ in millions) of availability under revolving credit facility • Further strengthened capital structure, enhanced liquidity and improved debt matu
Slide 18: 2022 Outlook – Global Vehicle Production and Currency
2022 Outlook – Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA FY 2021 74.5 FY 2021 13.0 FY 2021 16.2 FY 2021 22.8 FY 2022 78.8 FY 2022 14.7 FY 2022 18.2 FY 2022 22.8 High End 81.2 vs Prior Year vs Prior Year vs Prior Year v
Slide 19: 2022 Outlook – Key Considerations
2022 Outlook – Key Considerations IMPACT INDUSTRY / MACRO CURRENT STATE VS. 2021 2023 AND BEYOND Continued Recovery Driven by Global Industry Volumes Constrained + Strong Demand and Low Inventory Steel Prices Softening; Commodity Prices Stable but Elevated – Generally Positive Inflation Costs Increa
Slide 20: 2021 Actual to 2022 Outlook – at Mid-Point
2021 Actual to 2022 Outlook – at Mid-Point ($ in millions) SALES ADJUSTED EARNINGS AND MARGIN $425 $200 35 bps $21,550 $1,250 30 bps 4.9% $(355) 75 bps (70) bps (10) bps $1,050 $767 $912 4.3% $19,263 $826 $681 2021 Volume / Mix Backlog Commodities Kongsberg FX 2022 2021 Volume / Backlog Commodities
Slide 21: 2022 Full Year Outlook
2022 Full Year Outlook Net Sales Interest Expense Restructuring Costs $20,800 - $22,300 million ≈$105 million ≈$125 million Core Operating Earnings Effective Tax Rate Capital Spending $900 - $1,200 million ≈21% $650 - $700 million Adjusted EBITDA Adjusted Net Income Free Cash Flow $1,500 - $1,800 mi
Slide 22: Concluding Remarks
Concluding Remarks Ray Scott, President and CEO
Slide 23: 2022: The Road Ahead
2022: The Road Ahead Implement thermal Grow connection Aggressively manage comfort solutions systems by integrating capacity and cost strategy to expand acquisitions, JVs and structure to reflect leadership in partnerships and volume environment Seating improve E-Systems and offset inflationary marg
Slide 24: Appendix
Appendix
Slide 25: Seating Sales and Margin Drivers – Fourth Quarter
Seating Sales and Margin Drivers Fourth Quarter ($ in millions) SALES ADJUSTED EARNINGS AND MARGIN 7.6% $262 $3,900 $129 $3,641 $218 $295 $(33) $(573) 15 bps 220 bps 5.5% $199 (210) bps (235 bps) Q4 2020 Volume / Mix Backlog Commodities FX Q4 2021 Q4 2020 Volume / Backlog Commodities Net Q4 2021 / O
Slide 26: E-Systems Sales and Margin Drivers – Fourth Quarter
E-Systems Sales and Margin Drivers Fourth Quarter ($ in millions) SALES ADJUSTED EARNINGS AND MARGIN $1,344 7.6% $56 $1,239 $41 $118 $103 $(17) $(262) 20 bps 30 bps 3.0% (365) bps (65) bps (80) bps $38 Q4 2020 Volume / Backlog Commodities FX Q4 2021 Q4 2020 Volume / Backlog Commodities Premium Net Q
Slide 27: Non-GAAP Financial Information
Non-GAAP Financial Information In addition to the results reported in accordance with GAAP included throughout this presentation, the Company has provided information regarding “pretax income before equity income, interest, other expense, restructuring costs and other special items” (core operating
Slide 28: Non-GAAP Financial Information
Non-GAAP Financial Information Lear Proprietary: The information contained herein is the property of Lear Corporation. 28
Slide 29: Non-GAAP Financial Information
Non-GAAP Financial Information Lear Proprietary: The information contained herein is the property of Lear Corporation. 29
Slide 30: Non-GAAP Financial Information
Non-GAAP Financial Information Lear Proprietary: The information contained herein is the property of Lear Corporation. 30
Slide 31: Non-GAAP Financial Information
Non-GAAP Financial Information Lear Proprietary: The information contained herein is the property of Lear Corporation. 31
Slide 32: Non-GAAP Financial Information
Non-GAAP Financial Information Lear Proprietary: The information contained herein is the property of Lear Corporation. 32
Slide 33: Non-GAAP Financial Information
Non-GAAP Financial Information (in millions, except per share amounts) Fourth Quarter 2021 Restructuring Other Reported Costs Special Items Adjusted Pretax Income Before Equity Income, Interest and Other Expense $ 114.9 $ 31.6 * $ 11.9 * $ 158.4 Equity Income (6.7) (6.7) Pretax Income Before Interes