Lear Corporation · NYSE:LEA
Lear — 2011 Deutsche Bank Global Auto Industry Conference
19 slides from Lear's conference presentation, Jan 10, 2011
Slide 1: 2011 Deutsche Bank Global Auto Industry Conference
2011 Deutsche Bank Global Auto Industry Conference January 11, 2011 Exhibit 99.1
Slide 2: Agenda
Agenda 2010 Highlights 2011 Outlook Sales Backlog Update Q and A Session 2
Slide 3: 2010 Highlights
Strengthened balance sheet and liquidity profile Improved operating performance in both business units Seating achieving target margins Strong sales growth and return to profitability in Electrical Power Management Systems Generated significant free cash flow $269 million through third quarter 2010
Slide 4: Strong Capital Structure
One of the strongest balance sheets in the industry; twice as much cash as outstanding debt No debt maturities until 2018 Received upgrades from both major rating agencies Modest pension liability Substantially all U.S. plans are frozen or at closed locations with no future benefit accruals Strong C
Slide 5: Geographic Sales Diversification
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 BRIC Markets* (in millions) North America Europe Asia ROW East 3031.1 3662.6 1321.4 783.1 North America 34% Europe
Slide 6: 2011 Outlook
Gear... 2011 Outlook
Slide 7: Full Year 2011 Outlook: Vehicle Production, Currency and Key Commodities
Full Year 2011 Outlook Vehicle Production and Currency and Key Commodities* Source: Ward's Automotive, IHS Automotive (CSM) and Company estimates Units (in millions) * Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information. 7
Slide 8: 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* * Core operating earnings represents pretax income before interest, other expense, restructuring costs and other special items. Pretax income (loss) was ($578.6) and $831.8 in
Slide 9: Full Year 2011 Outlook: Key Financial Metrics
(CHART) Full Year 2011 Outlook Key Financial Metrics* ^$400M $12.6B to $13.0B 9 * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. $9.20 to $9.85 $700M to $740M
Slide 10: Full Year 2011 Financial Outlook
10 * Please see slides titled "Non-GAAP Financial Information" and "Forward-Looking Statements" at the end of this presentation for further information. Full Year 2011 Financial Outlook*
Slide 11: Sales Backlog Update
Gear... Sales Backlog Update
Slide 12: Sales Backlog Assumptions
Backlog Definition New awarded programs net of lost business and programs rolling off Does not include pursued or high confidence new business Excludes sales at non-consolidated joint ventures Backlog Assumptions Volumes based on IHS Automotive (formerly CSM) October 15, 2010 production forecast Eur
Slide 13: Sales Backlog Update
Sales Backlog Update* * Please see slide titled "Forward-Looking Statements" at the end of this presentation. 13 (in billions) (CHART) Sales Backlog Up $300 Million From Last Update
Slide 14: 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 * Please see slide titled "Forward-Looking St
Slide 15: Summary: Well Positioned For Continuing Industry Recovery
Operating and financial performance improvements accelerated in 2010 Sales up 26% for first nine months versus 2009 Margins improved in both business units Generated significant free cash flow Strong liquidity position with projected year-end cash of ^$1.6 billion and debt of ^$700 million; credit r
Slide 16: 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, other expense, restructuring costs and other special ite
Slide 17: Non-GAAP Financial Information: Core Operating Earnings
17 Non-GAAP Financial Information Core Operating Earnings
Slide 18: Non-GAAP Financial Information: Free Cash Flow
Non-GAAP Financial Information Free Cash Flow 18
Slide 19: 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
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