Slide 1: Fourth Quarter and Full Year 2010 Financial Results
Fourth Quarter and Full Year 2010 Financial Results February 1, 2011 Exhibit 99.2
Slide 2: Agenda
Agenda Company Highlights Bob Rossiter, CEO and President Fourth Quarter and Full Year 2010 Financial Results and 2011 Outlook Matt Simoncini, SVP and CFO Summary Bob Rossiter, CEO and President Q and A Session 2
Slide 3: 2010 Highlights
Improved operating performance 6th consecutive quarter of overall year-over-year improvement Seating achieving target margins Strong sales growth and return to profitability in Electrical Power Management Systems Significant free cash flow generation Strengthened balance sheet and liquidity position
Slide 4: Geographic and Customer Sales Diversification
Geographic and Customer Sales Diversification By Customer Europe 42% Total Company $12.0 Billion 2010 Consolidated Sales Two-Thirds of Global Sales Outside North America 4 North America Europe Asia ROW East 3031.1 3662.6 1321.4 783.1 North America 34% Rest of World 8% Asia 16%
Slide 5: 2011 to 2013 Consolidated Sales Backlog
2011 to 2013 Consolidated Sales Backlog* 2011 - 2013 Sales Backlog Composition of Sales Backlog By Product: Seating -- 55% Electrical Power Management Systems -- 45% By Region: North America -- $1,000M Europe -- $600M Asia -- $400M South America -- $200M * Sales backlog assumes volumes based on IHS
Slide 6: Electrical Power Management Systems Returned to Profitability in 2010
Electrical Power Management Systems Returned to Profitability in 2010* 6 * 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 special items. Please see
Slide 7: Fourth Quarter and Full Year 2010 Financial Results
7 Fourth Quarter and Full Year 2010 Financial Results
Slide 8: Fourth Quarter and Full Year 2010 Lear Financial Summary
Fourth Quarter Net sales of $3.2 billion, up 15% from a year ago Core operating earnings of $150 million, up 30% from a year ago and the sixth consecutive quarter of year-over-year improvement Adjusted earnings per share of $2.38 Free cash flow of $160 million Full Year 2010 Net sales of $12.0 billi
Slide 9: Fourth Quarter and Full Year 2010 Global Vehicle Production
Fourth Quarter and Full Year 2010 Global Vehicle Production Sources: Ward's Automotive and IHS Automotive Vehicles Produced (in millions) 9
Slide 10: Fourth Quarter and Full Year 2010 Reported Financials
10 Fourth Quarter and Full Year 2010 Reported Financials* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 11: Impact of Restructuring and Other Special Items
Fourth Quarter and Full Year 2010 Impact of Restructuring and Other Special Items* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. 11
Slide 12: Fourth Quarter and Full Year 2010 Seating Performance
** 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 special items. Q4 '10 Q4 '09 $ 2,173.7 $ 2,465.6 $ 104.7 $ 158.3 $ 133.2 $ 172.8 (in millions) Sal
Slide 13: Electrical Power Management Systems Performance
** 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 special items. (in millions) Sales Earnings** Adj. Earnings** $ 1,926.7 $ 2,559.3 $ (155.8) $ 100.
Slide 14: Fourth Quarter and Full Year 2010 Free Cash Flow
Fourth Quarter and Full Year 2010 Free Cash Flow* (in millions) 14 * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 15: Status of Lear Share Count
Status of Lear Share Count Number of Shares * Common Stock 52.6 million Warrants 1.0 million Management Restricted Stock Units (vest through Feb. 2013) 0.9 million Total Shares, assuming full exercise/vesting 54.5 million Conversion of Preferred Stock into Common Stock On November 10, 2010, all rema
Slide 16: 2011 Outlook
Qtear... 2011 Outlook
Slide 17: Full Year 2011 Outlook: Vehicle Production, Euro and Key Commodities
Full Year 2011 Outlook Vehicle Production, Euro and Key Commodities* Sources: Ward's Automotive, IHS Automotive and Company estimates Vehicles Produced (in millions) * Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information. 17
Slide 18: Full Year 2011 Outlook: Net Sales and Core Operating Earnings
Full Year 2011 Outlook Net Sales and Core Operating Earnings* Net Sales (in billions) (in millions) Core Operating Earnings* * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. 18 $12.6 to $13.0 $700 to
Slide 19: Full Year 2011 Outlook Detailed Financials
19 * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. Full Year 2011 Outlook Detailed Financials*
Slide 20: Well Positioned For Continuing Industry Recovery: Summary
Operating and financial performance improvements accelerated in 2010 Sales up 23% versus 2009 Margins improved in both business units Generated significant free cash flow Strong liquidity position with year-end cash of $1.7 billion and total debt of $699 million 2011 financial outlook: Sales of $12.
Slide 21: Non-GAAP Financial Information
21 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 and other (income) expe
Slide 22: Non-GAAP Financial Information: Core Operating Earnings
22 Non-GAAP Financial Information Core Operating Earnings
Slide 23: Non-GAAP Financial Information: Segment Earnings
23 Non-GAAP Financial Information Segment Earnings
Slide 24: Non-GAAP Financial Information: Adjusted Segment Earnings
24 Non-GAAP Financial Information Adjusted Segment Earnings
Slide 25: Non-GAAP Financial Information: Adjusted Earnings per Share
25 Non-GAAP Financial Information Adjusted Earnings per Share
Slide 26: 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. The words "will," "may," "designed to," "outlook," "believes," "sho