Slide 1: Second Quarter 2022 Financial Results
Second Quarter 2022 Financial Results August 2, 2022 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 FINANCIAL REVIEW BUSINESS UPDATE 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: Financial Review
Financial Review Jason Cardew, Senior Vice President and CFO
Slide 5: Financial Overview Second Quarter 2022
Financial Overview Second Quarter 2022 $5.1B $187M $1.79 $11M SALES CORE OPERATING ADJUSTED OPERATING EARNINGS EARNINGS PER SHARE CASH FLOW Q2 2021 $4.8B Q2 2021 $233M Q2 2021 $2.45 Q2 2021 $260M Lear Proprietary: The information contained herein is the property of Lear Corporation. Please see appen
Slide 6: Global Vehicle Production and Currency
Second Quarter 2022 Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q2 2021 18.2 Q2 2021 3.2 Q2 2021 4.3 Q2 2021 5.3 Q2 2022 18.4 Q2 2022 3.6 Q2 2022 4.0 Q2 2022 5.2 UP 1% YOY UP 12% YOY DOWN 5% YOY DOWN 3% YOY KEY CURRENCIE
Slide 7: Growth Over Market
Growth Over Market Second Quarter 2022 16% EUROPE 6% Q2 2022 Global GoM • Seating: Favorable platform mix and backlog • E-Systems: Favorable 3% NORTH AMERICA platform mix and backlog (8)% CHINA • Seating: Backlog partially 6% Q2 2022 • Seating: Unfavorable offset by unfavorable platform mix platform
Slide 8: Seating Sales and Margin Drivers
Seating Sales and Margin Drivers Second Quarter 2022 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $83 30 bps $205 $3,874 $58 15 bps 7.3% $98 $(178) (100) bps (5) bps 6.0% $3,608 $262 (25) bps (45) bps $233 Q2 2021 Volume / Backlog Commodities FX Kongsberg Q2 2022 Q2 2021 Volume
Slide 9: E-Systems Sales and Margin Drivers
E-Systems Sales and Margin Drivers Second Quarter 2022 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 40 bps 70 bps $66 3.5% $39 $1,197 $17 $1,153 $41 $(78) (215) bps (25) bps 2.0% (20) bps $24 Q2 2021 Volume / Backlog Commodities FX Q2 2022 Q2 2021 Volume / Backlog Commodities F
Slide 10: Focusing on Operating Efficiencies and Cash Flow Generation
Focusing on Operating Efficiencies and Cash Flow Generation ✓ Existing capacity supports current backlog and industry recovery Optimize Capacity ✓ Manufacturing footprint and labor flexibility ✓ Strengthen core product lines Cash Flow Focused ✓ Reduce working capital requirements and capital expendi
Slide 11: 2022 Outlook – Global Vehicle Production and Currency
2022 Outlook – Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA FY 2021 75.3 FY 2021 13.0 FY 2021 16.3 FY 2021 23.0 FY 2022 77.7 FY 2022 14.6 FY 2022 16.4 FY 2022 23.1 High End 79.3 vs Prior Year vs Prior Year vs Prior Year v
Slide 12: H1 2022 to H2 2022 Outlook – at Mid-Point
H1 2022 to H2 2022 Outlook – at Mid-Point SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $480 $37 $50 $10,521 35 bps $10,279 85 bps 4.7% $(325) (10) bps $494 3.6% $371 H1 2022 Volume / Mix Commodities FX Kongsberg H2 2022 H1 2022 Actuals Volume / Mix Commodities FX H2 2022 Actual
Slide 13: 2022 Full Year Outlook
2022 Full Year Outlook Net Sales Interest Expense Operating Cash Flow $20,550 - $21,050 million ≈$105 million $950 - $1,075 million May Outlook $20,400 - $21,200 million May Outlook $875 - $1,125 million Effective Tax Rate ≈21% Core Operating Earnings Adjusted Net Income Capital Spending $815 - $915
Slide 14: Business Update
Business Update Ray Scott, President and CEO
Slide 15: Positioning Business for Multiple Macro and Auto Industry Scenarios
Positioning Business for Multiple Macro and Auto Industry Scenarios INDUSTRY MILD GLOBAL / SOFT GLOBAL FACTORS REGIONAL RECESSION LANDING GROWTH Industry Volume Varies by region Gradual growth Robust growth Commodity Costs Lower Flat Flat to higher Supply Constraints Easing Gradual easing Gradual ea
Slide 16: Near-Term Strategic Focus Driving Improved Performance
Near-Term Strategic Focus Driving Improved Performance PRODUCT OPERATIONAL CAPITAL STRATEGY EXCELLENCE ALLOCATION • Streamline portfolio to align • Realize overhead and SG&A • Return cash to shareholders with core strengths synergies between segments through share repurchases and • Leveraging therma
Slide 17: Appendix
Appendix
Slide 18: Key Financials
Key Financials Second Quarter 2022 ($ in millions, except per share amounts) 2021 2022 YEAR-OVER-YEAR DRIVERS Strong backlog, commodity pass-through and increased Net Sales $4,761 $5,071 volume, partially offset by foreign exchange Core Operating Earnings $233 $187 Higher commodity costs and impact
Slide 19: Non-GAAP
Non-GAAP In addition to the results reported in accordance with GAAP included throughout this presentation, the Company has provided information regarding “pretax income before equity income, interest, other (income) expense, restructuring costs and other special items” (core operating earnings or a
Slide 20: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 20
Slide 21: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 21
Slide 22: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 22
Slide 23: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 23