Slide 1: Fourth-Quarter and Full-Year 2009 Results
Fourth-Quarter and Full-Year 2009 Results February 5, 2010 Exhibit 99.2
Slide 2: Agenda
Agenda 2009 Company Overview Bob Rossiter, Chairman, CEO and President Fourth-Quarter and Full-Year 2009 Results Matt Simoncini, SVP and CFO Summary and Outlook Bob Rossiter, Chairman, CEO and President Q and A Session
Slide 3: 2009 Company Overview
2009 Company Overview* Operational Restructuring has reduced structural costs and improved global production footprint Financial Restructuring has reduced total debt obligations and increased financial flexibility Continued progress on sales diversification - 70% of 2009 net sales outside of North A
Slide 4: Restructuring has Reduced Structural Costs and Improved Capital Structure
Restructuring has Reduced Structural Costs and Improved Capital Structure* Operational Restructuring Continued comprehensive effort to restructure the Company's global operations for improved long-term competitiveness. Since mid-2005, Lear has invested $740 million in restructuring actions, resultin
Slide 5: Continued Progress on Sales Diversification
Continued Progress on Sales Diversification By Region By Customer GM North America ROW Europe East 0.3 0.23 0.47 North America 30% Europe 47% Rest of World 23% 70% Of 2009 Net Sales Outside Of North America Ford 2009 Net Sales All Other GM Ford BMW Asian OEMs VW/Audi Fiat PSA Group Saab/Volvo Merced
Slide 6: Significant Growth Opportunity in Asia
2002 2002 2003 2004 2005 2006 2007 2008 2009 Consolidated 600 600 850 1278 739 903 1043 1107 1309 Non-Consolidated 200 200 400 522 160 266 575 566 632 North 45.9 46.9 45 43.9 Significant Growth Opportunity in Asia Asia $1,618 $1,168 $899 $1,673 $1,941 2002 2002 2003 2004 2005 2006 2007 2008 2009 Con
Slide 7: Business Segment Improvement Plans in Place
Business Segment Improvement Plans in Place Global Capabilities and Low-Cost Footprint 2010 to 2012 Sales Backlog of $800 million Sales Target -- $4 to $5 billion Margin Target -- 61/2% to 71/2% Growth Opportunity in High-Power and Hybrid Electrical Systems Lear has won High-Power and Hybrid busines
Slide 8: Fourth-Quarter and Full-Year 2009 Results
Fourth-Quarter and Full-Year 2009 Results
Slide 9: 2009 Financial Summary
Fourth-Quarter 2009 Industry production improved year-over-year in mature markets; strong growth in Asia continued Net sales of $2.7 billion, up 5% Core operating earnings of $116 million** Free cash flow of positive $11 million*** Full-Year 2009 Net sales of $9.7 billion, down 28% Core operating ea
Slide 10: Global Industry Production Environment
Fourth-Quarter and Full-Year 2009 Global Industry Production Environment Source: Ward's Automotive and CSM Worldwide
Slide 11: Fresh Start Accounting
Fresh Start Accounting Fresh start accounting results in a new basis of assets and liabilities and a new entity for financial reporting purposes 2009 financial results are segregated and reported as: Pre-emergence financial results are presented as "predecessor" Predecessor financial results include
Slide 12: Fresh Start Accounting (continued)
Fresh Start Accounting (continued) Key Fair Value Adjustments: Goodwill - reduction of ^$900 million to $621 million Customer/Technology intangible assets - increase in value of $162 million Annual amortization increase of ^$22 million Fixed assets - reduction in value of $5 million: Land and buildi
Slide 13: Fourth-Quarter and Full-Year 2009 Reported Financials
Fourth-Quarter and Full-Year 2009 Reported Financials
Slide 14: Impact of Restructuring and Other Special Items
Fourth-Quarter and Full-Year 2009 Impact of Restructuring and Other Special Items* * Please see slide titled "Non-GAAP Financial Information" at the end of this presentation for further information. ** Excludes $1.5 million of expense and $4.1 million of income during the fourth quarter and full yea
Slide 15: Seating Performance
Fourth-Quarter and Full-Year 2009 Seating Performance* Full-Year Explanation of Year-to-Year Change (in millions) Sales Earnings** Adj. Earnings** ** Reported segment earnings represents pretax income before goodwill impairment charges, interest, other expense, reorganization items and fresh start a
Slide 16: Electrical Power Management Performance
Fourth-Quarter and Full-Year 2009 Electrical Power Management Performance* Full-Year Explanation of Year-to-Year Change * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information. (in millions) Sales Earnings** Adj. Earnings** Q408 Q409 2008 2
Slide 17: Free Cash Flow
Fourth-Quarter and Full-Year 2009 Free Cash Flow* (in millions) * Free cash flow represents net cash provided by (used in) operating activities ($67.3 million for the three months ended 12/31/09 and ($175.3) million for the twelve months ended 12/31/09) before net change in sold accounts receivable
Slide 18: Total Debt and Cash
Total Debt and Cash (at 12/31/09) Total Debt Cash 972 1554 East West North Key Balance Sheet Metrics* Debt obligations reduced by approximately $2.7 billion to $972 million Adequate liquidity to support global operating needs and growth plans No significant debt maturities until 2012 Covenants provi
Slide 19: Full-Year 2010 Financial Outlook
Full-Year 2010 Financial Outlook* * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information.
Slide 20: Summary and Outlook
Summary and Outlook
Slide 21: Summary and Outlook
Lear's strong customer focus and operating fundamentals remain unchanged Completed financial restructuring in four months; emerged from Chapter 11 with a strong and flexible balance sheet Year-end 2009 cash balance of $1.6 billion and total debt of less than $1 billion 2010 financial outlook: Core O
Slide 22: www.lear.com LEA NYSE Listed
www.lear.com LEA NYSE Listed R
Slide 23: 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 (loss) before interest and other expense," "income before interest, other
Slide 24: Non-GAAP Financial Information: Core Operating Earnings
Non-GAAP Financial Information Core Operating Earnings
Slide 25: Non-GAAP Financial Information: Segment Earnings
Non-GAAP Financial Information Segment Earnings
Slide 26: Non-GAAP Financial Information: Adjusted Segment Earnings
Non-GAAP Financial Information Adjusted Segment Earnings
Slide 27: Non-GAAP Financial Information: Cash from Operations and Free Cash Flow
Non-GAAP Financial Information Cash from Operations and Free Cash Flow
Slide 28: 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. Actual results may differ materially from anticipated results as a