Slide 1: Third Quarter Financial Results
1 1 Third Quarter Financial Results October 28, 2010
Slide 2: Agenda
2 Agenda Company Highlights Bob Rossiter, CEO and President Third Quarter Financial Results and Revised 2010 Outlook Matt Simoncini, SVP and CFO Summary Bob Rossiter, CEO and President Q and A Session
Slide 3: Third Quarter 2010 Company Highlights
Positive operating and financial momentum continues Core operating earnings of $150 million; 5th consecutive quarter of year-over- year improvement Continuing to win new business globally in both segments Generated free cash flow of $79 million; 5th consecutive quarter of positive free cash flow $1.
Slide 4: Geographic Sales Diversification
2002 2002 2003 2004 2005 2006 2007 2008 2009 2010 Outlook China 600 600 850 1278 244 410 420 520 903 1113 BRI 45.9 46.9 45 43.9 322 424 562 651 618 804 Geographic Sales Diversification BRIC Markets* (in millions) North America Europe Asia ROW East 3031.1 3662.6 1321.4 783.1 North America 34% Europe
Slide 5: Strong Capital Structure
5 Cash includes cash and cash equivalents One of the strongest balance sheets in the industry, including twice as much cash as outstanding debt No debt maturities until 2018 Recently received upgrades from both major rating agencies S&P upgraded Lear two notches to BB- with a stable outlook Moody's
Slide 6: Third Quarter Financial Results and Revised 2010 Outlook
6 Third Quarter Financial Results and Revised 2010 Outlook
Slide 7: Third Quarter 2010 Lear Financial Summary
Global industry production improved 13% vs. third quarter 2009 Net sales of $2.8 billion, up 11% from a year ago Core operating earnings of $150 million, up 35% from a year ago Adjusted earnings per share of $2.28 Free cash flow generation of $79 million Quarter-end cash of $1.5 billion and debt of
Slide 8: Third Quarter 2010 Global Vehicle Production
8 Source: Ward's Automotive and IHS Automotive (CSM) Third Quarter 2010 Global Vehicle Production Units (in millions)
Slide 9: Third Quarter 2010 Reported Financials
9 Third Quarter 2010 Reported Financials* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.
Slide 10: Third Quarter 2010 Impact of Restructuring and Other Special Items
10 * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. Third Quarter 2010 Impact of Restructuring and Other Special Items*
Slide 11: Third Quarter 2010 Adjusted Segment Results
** 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. Seating Margins Third Quarter 2010 Adjusted Segment Results* Electrical Power Manag
Slide 12: Third Quarter 2010 Free Cash Flow
12 (in millions) * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. Third Quarter 2010 Free Cash Flow*
Slide 13: Status of Lear Share Count
13 Status of Lear Share Count* Number of Shares Common Stock 50.5 million Preferred Stock 1.8 million Warrants 1.0 million Management Restricted Stock Units (vest through Feb. 2013) 1.3 million Total Shares, assuming full conversion/exercise/vesting 54.6 million Preferred Stock Convertible into Comm
Slide 14: Revised Full Year 2010 Vehicle Production and Currency Outlook
14 Source: Ward's Automotive, IHS Automotive (CSM) and Company estimates Revised Full Year 2010 Vehicle Production and Currency Outlook* 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
Q tear. Summary
Slide 17: Positive Momentum Continues
Third quarter sales up 11% and core operating earnings up 35% from the prior year; 5th quarter of earnings improvement Strong liquidity position with cash of $1.5 billion and total debt of $699 million; credit ratings upgraded Increased 2010 financial outlook: Sales of approximately $11.7 billion (u
Slide 18: www.lear.com LEA NYSE Listed
18 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 before interest, other expense and reorganization items," "preta
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: Adjusted Earnings Per Share
Non-GAAP Financial Information Adjusted Earnings Per Share 23
Slide 24: Forward-Looking Statements
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," "