Slide 1: Fourth Quarter and Full Year 2024 Financial Results
February 6, 2025 Fourth Quarter and Full Year 2024 Financial Results Ray Scott, President and CEO Jason Cardew, Senior Vice President and CFO
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 01 02 03 BUSINESS UPDATE FINANCIAL REVIEW CONCLUDING REMARKS Ray Scott, President and CEO Jason Cardew, Senior Vice President and CFO 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: Fourth Quarter and Full Year 2024
Financial Overview Fourth Quarter and Full Year 2024 CORE OPERATING ADJUSTED OPERATING SALES EARNINGS EARNINGS PER SHARE CASH FLOW Q4 2024 $5.7B $258M $2.94 $681M FY 2024 $23.3B $1.1B $12.62 $1.1B Lear Proprietary: The information contained herein is the property of Lear Corporation. Please see appe
Slide 6: Delivered on Key 2024 Strategic Initiatives
Delivered on Key 2024 Strategic Initiatives ✓ Achieved free cash flow conversion of ≈80%, enabling ✓ Launched the industry’s first ComfortFlexTM module with repurchases of $400 million of Lear shares and paid $174 Volvo and awarded 19 contracts for ComfortMax SeatTM, million in dividends ComfortFlex
Slide 7: Strategic Actions Improving Margin Profiles and Cash Flow Generation
Strategic Actions Improving the Margin Profiles and Cash Flow Generation of Both Business Segments Strategic Actions Near-Term Mid-Term Long-Term Efficiency improvements in North America wire Lower launch costs and prioritized capital expenditures to align with anticipated volumes Customer commercia
Slide 8: Seating Growth and Margin Expansion Driven by Product and Process Innovation
Seating Growth and Margin Expansion Driven by Product and Process Innovation Value Drivers Key Enablers • Comprehensive thermal comfort Target Modularity Savings product portfolio ≈5%-20% • Modular innovations integrated into surface materials Target Automation and Innovation Savings ≈10%-20% • Unma
Slide 9: Growing with Key Chinese Domestic Automakers
Growing with Key Chinese Domestic Automakers CHINA CUSTOMER MIX 2024 Actual 2025 Outlook ≈33% with Chinese ≈37% with Chinese Domestic Automakers Domestic Automakers Global Other Global Other EV OEM EV OEM Chinese Domestic Automakers Multinational Automakers Lear Proprietary: The information containe
Slide 10: Update to 2024-2026 Core Sales Backlog
Update to 2024-2026 Core Sales Backlog (Net New Business Awards) Launch Delays and Lower ($ in millions) 2024 2025 2026 Total Volume Adjustments Key Programs: Consolidated Backlog as of February 2024 $1,200 ≈$800 ≈$800 ≈$2,800 • Volvo EX90, Polestar 3 • Ram 1500 REV, Ramcharger EV Volume / Launch De
Slide 11: Key Growth and Margin Improvement Metrics Scorecard
Key Growth and Margin Improvement Metrics Scorecard Growth Metric Status Margin Improvement Status Metric IDEA/Automation Run- Expect ≈$75 million in 2025; Conquest Wins - JIT Progress expected in 2025 Rate Savings ≈$150 million annualized Conquest Wins - Wire Progress expected in 2025 Restructuring
Slide 12: Financial Review
Financial Review Jason Cardew Senior Vice President and CFO
Slide 13: Global Vehicle Production and Currency
Global Vehicle Production and Currency Fourth Quarter 2024 INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q4 2023 23.8 3.8 4.7 8.5 Q4 2024 23.9 3.6 4.4 9.2 UP 1% YOY DOWN 3% YOY DOWN 8% YOY UP 8% YOY Lear Weighted Basis DOWN 1% YOY KEY CURRENCIES Q4 2023 Q4 2024
Slide 14: Growth Over Market
Growth Over Market Full-Year 2024 1% EUROPE 2% 2024 3% NORTH AMERICA (3)% CHINA Global GoM Seating: Unfavorable platform mix, partially offset Seating: Backlog, partially (1)% Q4 2024 Seating: Unfavorable by backlog offset by unfavorable platform mix, partially offset platform mix by backlog E-Syste
Slide 15: Key Financials: Fourth Quarter 2024
Key Financials Fourth Quarter 2024 ($ in millions, except per share amounts) 2023 2024 YEAR-OVER-YEAR DRIVERS Lower volume on Lear platforms, partially offset by sales Net Sales $5,841 $5,715 backlog Core Operating Earnings $288 $258 Lower volume on Lear platforms, partially offset by accretive Oper
Slide 16: Seating Sales and Margin Drivers: Fourth Quarter 2024
Seating Sales and Margin Drivers Fourth Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $4,343 $150 $4,186 6.8% $35 $(20) $(27) 15 bps 6.1% 20 bps $294 $(295) (5) bps (5)$bps (95) bps $257 Q4 2023 Volume / Mix Backlog FX Acquisitions / Other Q4 2024 Q4 2023 Volume / B
Slide 17: E-Systems Sales and Margin Drivers: Fourth Quarter 2024
E-Systems Sales and Margin Drivers Fourth Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 5.6% 50 bps $106 $14 $1,529 5.0% $1,498 $84 (10) bps (30)bps $(16) $77 (70)bps $(73) Q4 2023 Volume / Mix Backlog FX Other Q4 2024 Q4 2023 Volume / Backlog FX Net Performance / Q
Slide 18: Seating Sales and Margin Drivers: Full Year 2024
Seating Sales and Margin Drivers Full Year 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 6.8% $17,549 $159 $1,191 30 bps 6.5% $544 $17,222 20 bps $1,116 $(100) $(8) (5) bps (5) bps (70) bps $(922) FY 2023 Volume / Mix Backlog FX Acquisitions / Other FY 2024 FY 2023 Volume /
Slide 19: E-Systems Sales and Margin Drivers: Full Year 2024
E-Systems Sales and Margin Drivers Full Year 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $336 $63 $6,084 50 bps 5.1% $(66) $310 $5,918 40 bps 4.6% (0)bps $275 $(167) (40)bps FY 2023 Volume / Mix Backlog FX Other FY 2024 FY 2023 Volume / Backlog FX Net Performance / FY 202
Slide 20: Global Vehicle Production and Currency: 2025 Outlook
Global Vehicle Production and Currency 2025 Outlook INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA FY 2024 88.1 15.5 17.5 29.0 FY 2025 87.4 15.0 16.8 29.3 DOWN 1% YOY DOWN 3% YOY DOWN 4% YOY UP 1% YOY Lear Weighted Outlook DOWN 2% YOY KEY CURRENCIES 2024 2025 EU
Slide 21: 2025 Full Year Outlook
2025 Full Year Outlook Interest Expense Net Sales ≈$110 million Operating Cash Flow $21,875 - $22,875 million $1,055 - $1,255 million Effective Tax Rate 20% - 22% Core Operating Earnings Capital Expenditures $915 - $1,175 million Adjusted Net Income ≈$625 million $575 - $765 million Adjusted EBITDA
Slide 22: 2024 Actual to 2025 Outlook – at Mid-Point
2024 Actual to 2025 Outlook – at Mid-Point SALES CORE OPERATING EARNINGS AND MARGIN ($ in millions) ($ in millions) $23,306 $230 4.7% 55 bps 4.7% $(75) $188 $22,375 $1,096 $(718) 10 bps $(417) $1,045 $(139) (55) bps (5) bps (5) bps FY 2024 Volume / Mix Backlog Wind-Down FX Acquisitions / Other FY 20
Slide 23: Commitment to Returning Capital to Shareholders
Commitment to Returning Capital to Shareholders SHARE REPURCHASES AND DIVIDENDS • Repurchased ≈3,578,000 shares (≈$400 million) in 2024 ($ in millions) Dividends • Reduced shares outstanding by ≈6% in 2024 Repurchases $612 • Grew adjusted earnings per share despite lower industry $574 $101 productio
Slide 24: Concluding Remarks
Concluding Remarks Ray Scott President and CEO
Slide 25: Focused on Growth and Margin Expansion to Drive Cash Generation
Focused on Growth and Margin Expansion to Drive Cash Generation Seating E-Systems IDEA by Lear Capital Allocation Increasing market share by Winning new business across Utilizing advanced technologies Returning excess cash to accelerating deployment of all powertrains and investing in and accelerati
Slide 26: Appendix
Appendix
Slide 27: Key Financials: Full Year 2024
Key Financials Full Year 2024 ($ in millions, except per share amounts) 2023 2024 YEAR-OVER-YEAR DRIVERS Lower volume on Lear platforms, partially offset by strong sales Net Sales $23,467 $23,306 backlog Core Operating Earnings $1,120 $1,096 Lower volume on Lear platforms, partially offset by positi
Slide 28: Seating Key 2025 Product Launches
Seating Key 2025 Product Launches = Hybrid / Electric Vehicle = Luxury Land Rover Cadillac Escalade Hyundai Palisade Ram 1500 Ramcharger Polestar 5 BYD Tang L Range Rover / Sport EV IQL JIT, Thermal Comfort JIT, Thermal Comfort ComfortFlexTM JIT, Thermal Comfort JIT, Structures JIT ASIA ASIA ASIA NO
Slide 29: E-Systems Key 2025 Product Launches
E-Systems Key 2025 Product Launches = Hybrid / Electric Vehicle Land Rover Ford Expedition / Renault & Nissan Chevrolet Bolt EV Volvo ES90 Audi Q5 Range Rover / Sport EV Lincoln Navigator Cross Platform Low Voltage Wiring High Voltage Wiring and Low Voltage Wiring Low Voltage Wiring Low Voltage Wiri
Slide 30: Seating 2024 Actual to 2025 Outlook – at Mid-Point
Seating 2024 Actual to 2025 Outlook – at Mid-Point SALES CORE OPERATING EARNINGS AND MARGIN ($ in millions) ($ in millions) 6.5% $17,222 40 bps 6.5% $1,116 5 bps $25 $1,080 (40)bps $16,640 (5) bps (0) bps ($367) $143 ($290) ($93) FY 2024 Volume / Mix Backlog FX Acquisitions / Other FY 2025 FY 2024 V
Slide 31: E-Systems 2024 Actual to 2025 Outlook – at Mid-Point
E-Systems 2024 Actual to 2025 Outlook – at Mid-Point SALES CORE OPERATING EARNINGS AND MARGIN ($ in millions) ($ in millions) 5.1% 80 bps 5.1% $6,084 $205 $310 30 bps $290 $45 $5,735 ($75) (5) bps ($127) (95) bps (10) bps ($351) ($46) FY 2024 Volume / Mix Backlog Wind-Down FX Acquisitions / Other FY
Slide 32: Non-GAAP
Non-GAAP In addition to the results reported in accordance with GAAP included throughout the presentation, the Company has provided information regarding “pretax income before equity income, interest, other expense, restructuring costs and other special items” (core operating earnings or adjusted se
Slide 33: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 33
Slide 34: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 34
Slide 35: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 35
Slide 36: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 36
Slide 37: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 37
Slide 38: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 38