Slide 1: Third Quarter 2024 Financial Results
October 24, 2024 Third Quarter 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 Third Quarter 2024
Financial Overview Third Quarter 2024 CORE OPERATING ADJUSTED OPERATING SALES EARNINGS EARNINGS PER SHARE CASH FLOW Q3 2024 $5.6B $257M $2.89 $183M Q3 2023 $5.8B $267M $2.87 $404M Lear Proprietary: The information contained herein is the property of Lear Corporation. Please see appendix for discussi
Slide 6: Q3 2024 Highlights
Q3 2024 Highlights Total company revenue outperformed Adjusted earnings per share growth of industry volume by 3 percentage Repurchased $209 million of Lear 1% year-over-year, reflecting the points, with 5 percentage points in shares and paid $43 million in benefit of our share repurchase E-Systems
Slide 7: Product and Process Innovations Help Drive Sustainable Growth
Product and Process Innovations Help Drive Sustainable Growth • Powertrain agnostic products, including complete seats, thermal comfort and wiring, limit impacts from EV adoption uncertainty • Diversifying customer base by growing with Chinese automakers domestically while supporting their global ex
Slide 8: Growing with Key Chinese Domestic Automakers
Growing with Key Chinese Domestic Automakers CHINA REVENUE BY CUSTOMER 2021 2024 Outlook 2027 Target ≈$4 billion ≈$5 billion ≈$6 billion Global Other Other EV OEM Other Global EV OEM Chinese Domestic Automakers Multinational Automakers Revenue includes sales at our nonconsolidated joint ventures Rev
Slide 9: Financial Review
Financial Review Jason Cardew Senior Vice President and CFO
Slide 10: Global Vehicle Production and Currency
Third Quarter 2024 Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q3 2023 22.3 Q3 2023 3.9 Q3 2023 4.1 Q3 2023 7.3 Q3 2024 21.3 Q3 2024 3.8 Q3 2024 3.8 Q3 2024 7.1 DOWN 5% YOY DOWN 5% YOY DOWN 6% YOY DOWN 3% YOY Lear Sales-
Slide 11: Growth Over Market
Growth Over Market Third Quarter 2024 2% EUROPE 3% Q3 7% NORTH AMERICA 1% CHINA Global GoM Seating: Unfavorable platform mix, partially offset Seating: Backlog, partially Seating: Favorable platform by backlog offset by unfavorable mix and backlog platform mix E-Systems: Backlog and E-Systems: Backl
Slide 12: Key Financials
Key Financials Third Quarter 2024 ($ in millions, except per share amounts) 2023 2024 YEAR-OVER-YEAR DRIVERS Lower volume on Lear platforms, partially offset by strong Net Sales $5,781 $5,584 backlog Core Operating Earnings $267 $257 Lower volume on Lear platforms, partially offset by positive net O
Slide 13: Seating Sales and Margin Drivers
Seating Sales and Margin Drivers Third Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $4,285 $164 $4,112 6.4% 70 bps 6.4% $(16) $(21) 30 bps $(300) $275 (5) bps (95) bps $262 Q3 2023 Volume / Mix Backlog FX Other Q3 2024 Q3 2023 Volume / Backlog FX Net Performance /
Slide 14: E-Systems Sales and Margin Drivers
E-Systems Sales and Margin Drivers Third Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 5.3% 40 bps 5.0% $1,496 $34 $1,473 50 bps 0 bps $100 $79 $(12) $74 (120)bps $(145) Q3 2023 Volume / Mix Backlog FX Other Q3 2024 Q3 2023 Volume / Backlog FX Net Performance / Q3 2
Slide 15: 2024 Outlook: Global Vehicle Production and Currency
2024 Outlook Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA FY 2023 89.1 FY 2023 15.7 FY 2023 18.4 FY 2023 27.8 FY 2024 85.8 FY 2024 15.3 FY 2024 17.0 FY 2024 27.6 DOWN 4% YOY DOWN 3% YOY DOWN 8% YOY DOWN 1% YOY Prior Outlo
Slide 16: 2024 Full Year Outlook
2024 Full Year Outlook Interest Expense Net Sales ≈$110 million Operating Cash Flow $22,950 - $23,150 million $1,110 - $1,160 million Prior Outlook $23,230 - $23,670 million Effective Tax Rate Prior Outlook $1,135 - $1,285 million 21% - 22% Core Operating Earnings Capital Expenditures $1,040 - $1,09
Slide 17: Total Company July Outlook to October Outlook
Total Company July Outlook to October Outlook – at Mid-Point SALES CORE OPERATING EARNINGS AND MARGIN ($ in millions) ($ in millions) $23,450 $23,050 4.8% 5 bps 4.6% $(400) $1,115 (25)bps $1,065 July Outlook Volume / Mix / Backlog / October Outlook July Outlook Volume / Mix / Commodities / October O
Slide 18: Execution Driving Margin Improvement and Mitigating Cost Pressures
Execution Driving Margin NET PERFORMANCE YEAR OVER YEAR Improvement and Mitigating MARGIN IMPROVEMENT Cost Pressures (bps) Seating E-Systems • Continuing focus on operational efficiency, quality and profitability ≈ 50 o Manufacturing process acquisitions focused on software, robotics, vision systems
Slide 19: Commitment to Returning Capital to Shareholders
Commitment to Returning Capital to Shareholders SHARE REPURCHASES AND DIVIDENDS • Repurchased ≈1,875,000 shares (≈$209 million) in the third ($ in millions) Dividends quarter Repurchases $612 • Achieved $325 million target of share repurchases in 2024 $101 • Grew adjusted earnings per share in the t
Slide 20: Positioned for Long-Term Success Despite Near-Term Headwinds
Positioned for Long-Term Success Despite Near-Term Headwinds Near-Term Macro and Industry Uncertainty • Geopolitical risks • Wage inflation and labor scarcity • Vehicle production in key regions • Potential trade conflicts • Commodity and FX volatility • Customer powertrain strategies • Affordabilit
Slide 21: Concluding Remarks
Concluding Remarks Ray Scott President and CEO
Slide 22: Positioning for Long-Term Success
XXXXXXX Positioning for Long-Term Success Accelerating innovative solutions in Diversifying customer base by powertrain agnostic products to strengthening relationships with drive growth and enhance margins Chinese and Japanese automakers Investing in advanced manufacturing Consistently returning ex
Slide 23: Appendix
Appendix
Slide 24: 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 25: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 25
Slide 26: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 26
Slide 27: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 27
Slide 28: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 28
Slide 29: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 29