Slide 1: First Quarter Results And Revised Full Year 2010 Outlook
1 First Quarter Results And Revised Full Year 2010 Outlook May 6, 2010
Slide 2: Agenda
2 Agenda Company Overview Bob Rossiter, Chairman, CEO and President First Quarter Results and Full Year 2010 Outlook Matt Simoncini, SVP and CFO Summary and Outlook Bob Rossiter, Chairman, CEO and President Q and A Session
Slide 3: First Quarter 2010 Company Highlights
3 First Quarter 2010 Company Highlights* Continued Positive Momentum Completed transformational refinancing; no significant debt maturities until 2018 Sales growth and margin improvement in both Seating and Electrical Power Management segments Positive first quarter financial results provide a stron
Slide 4: First Quarter 2010 Completed Transformational Refinancing
4 Cash includes cash and cash equivalents Excludes undrawn $110 million revolver/letter of credit facility and approximately $51 million of miscellaneous debt reflecting primarily debt at foreign wholly- owned subsidiaries and consolidated joint ventures 2009 2010 2011 2012 2013 2014 2015 2016 2017
Slide 5: First Quarter Results and Revised Full Year 2010 Outlook
5 First Quarter Results and Revised Full Year 2010 Outlook
Slide 6: First Quarter 2010 Lear Financial Summary
6 Industry production improved year-over-year in mature markets; strong growth in Asia continued Net sales of $2.9 billion, up 36% Core operating earnings of $138 million vs. negative $67 million a year ago Free cash flow of $4 million vs. negative $219 million a year ago First Quarter 2010 Lear Fin
Slide 7: First Quarter 2010 Global Vehicle Production Environment
7 Source: Ward's Automotive and CSM Worldwide First Quarter 2010 Global Vehicle Production Environment Units (in millions)
Slide 8: First Quarter 2010 Reported Financials
8 First Quarter 2010 Reported Financials* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 9: First Quarter 2010 Impact of Restructuring and Other Special Items
9 * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. First Quarter 2010 Impact of Restructuring and Other Special Items*
Slide 10: First Quarter 2010 Electrical Power Management Performance
10 Explanation of First Quarter Year-to-Year Change * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. Adjusted Electrical Power Management Segment Margins Sales Factors Higher global vehicle production Sales backlog Favorable foreign
Slide 11: First Quarter 2010 Seating Performance
11 Explanation of First Quarter Year-to-Year Change (in millions) Sales Earnings** Adj. Earnings** ** Reported segment earnings represents pretax income (loss) before interest and other expense. Adjusted segment earnings represents reported segment earnings adjusted for restructuring costs and other
Slide 12: First Quarter 2010 Free Cash Flow
12 (in millions) * Free cash flow represents net cash provided by operating activities ($38.9 million for the three months ended 4/3/10) before net change in sold accounts receivable ($0 for the three months ended 4/3/10) (Cash from Operations), less capital expenditures. Please see slides titled "N
Slide 13: Status of Lear Share Count
13 Status of Lear Share Count Number of Shares Common Stock (as of 4/3/10) 44.4 million Preferred Stock (as of 4/3/10) 5.2 million Warrants (as of 4/3/10) 3.7 million Management Restricted Stock Units (vest through Feb. 2013) 1.3 million Total Shares, assuming full conversion/exercise/vesting 54.6 m
Slide 14: Revised Full Year 2010 Global Industry Environment
14 Source: Ward's Automotive, CSM Worldwide and Company estimates Revised Full Year 2010 Global Industry Environment* Units (in millions) * Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information.
Slide 15: Revised Full Year 2010 Financial Outlook
15 * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. Revised Full Year 2010 Financial Outlook*
Slide 16: Summary and Outlook
Qtear., Summary and Outlook
Slide 17: Summary and Outlook
17 Completed transformational refinancing; no significant debt maturities until 2018 Lear's strong customer focus and operating fundamentals remain unchanged April 3, 2010 cash balance of $1.3 billion and total debt of $745 million 2010 financial outlook: Core Operating Earnings of $375 to $425 mill
Slide 18: www.lear.com LEA NYSE Listed
18 www.lear.com LEA NYSE Listed R
Slide 19: Non-GAAP Financial Information
19 19 19 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 and other expense," "pretax income (loss)
Slide 20: Non-GAAP Financial Information: Core Operating Earnings
20 20 20 Non-GAAP Financial Information Core Operating Earnings
Slide 21: Non-GAAP Financial Information: Segment Earnings
21 21 21 Non-GAAP Financial Information Segment Earnings
Slide 22: Non-GAAP Financial Information: Adjusted Segment Earnings
22 22 22 Non-GAAP Financial Information Adjusted Segment Earnings
Slide 23: Non-GAAP Financial Information: Cash from Operations and Free Cash Flow
23 23 23 Non-GAAP Financial Information Cash from Operations and Free Cash Flow
Slide 24: Forward-Looking Statements
24 24 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,