Slide 1: First Quarter 2024 Financial Results
April 30, 2024 First 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 First Quarter 2024
Financial Overview First Quarter 2024 CORE OPERATING ADJUSTED OPERATING SALES EARNINGS EARNINGS PER SHARE CASH FLOW Q1 2024 $6.0B $280M $3.18 $(35)M UP 3% YOY UP 6% YOY UP 14% YOY Q1 2023 $5.8B $263M $2.78 $(36)M Lear Proprietary: The information contained herein is the property of Lear Corporation.
Slide 6: Q1 2024 Highlights
Q1 2024 Highlights Delivered first quarter record revenue of $6.0 billion and increased adjusted earnings per share by 14% Sales outperformed global industry production, driven by growth over market in E-Systems of 10 percentage points Seventh consecutive quarter of year-over-year margin improvement
Slide 7: IDEA is the evolution of Lear's strategy
IDEA is the evolution of Lear’s strategy to drive growth and improve profitability by developing innovative products and utilizing advanced technology to extend our leadership position in operational excellence • Continuing competitive advantages in operational excellence, vertical integration and i
Slide 8: Expanding Leadership Position in Operational Excellence
Expanding Leadership Position in Operational Excellence Inorganic Acquisitions Have Expanded Capabilities Organic Strategic Initiatives WIP Industrial ASI Automation InTouch Automation Thagora Technology Lear Forward IDEA by Lear Automation • Automated material • Seat complete, • High performance •
Slide 9: Leveraging Acquisitions and Organic Investment to Extend Competitive Advantage
Leveraging Acquisitions and Organic Investment to Extend = Seating and Competitive Advantage, Accelerate Growth and Expand Margins E-Systems Collaboration SEATING E-SYSTEMS ConfigurE+TM THERMAL COMFORT SYSTEMS Component Modularity FlexAirTM Battery Disconnect Unit INTUTM ReNewKnitTM Intercell Connec
Slide 10: Financial Review
Financial Review Jason Cardew Senior Vice President and CFO
Slide 11: Global Vehicle Production and Currency
First Quarter 2024 Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q1 2023 21.0 Q1 2023 3.9 Q1 2023 4.8 Q1 2023 5.6 Q1 2024 20.9 Q1 2024 3.9 Q1 2024 4.7 Q1 2024 5.9 DOWN 1% YOY UP 1% YOY DOWN 2% YOY UP 5% YOY Lear Weighted B
Slide 12: Growth Over Market
Growth Over Market First Quarter 2024 2% 2% NORTH AMERICA 1% EUROPE 1% CHINA Global GoM • Seating: Backlog partially • Seating: Backlog partially • Seating: Unfavorable offset by unfavorable offset by unfavorable platform mix platform mix platform mix • E-Systems: Favorable • E-Systems: Favorable •
Slide 13: Key Financials
Key Financials First Quarter 2024 ($ in millions, except per share amounts) 2023 2024 YEAR-OVER-YEAR DRIVERS Strong backlog, partially offset by the impact of foreign Net Sales $5,846 $5,995 exchange and lower volume on Lear platforms Core Operating Earnings $263 $280 Positive net performance and ac
Slide 14: Seating Sales and Margin Drivers
Seating Sales and Margin Drivers First Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) $4,453 $52 $4,478 $80 $51 6.7% 5 bps 25 bps 6.6% $(144) $(14) (25) bps (5) bps (10) bps $300 $300 $295 Q1 2023 Volume / Mix Backlog FX Acquisitions Commodities / Q1 2024 Q1 2023 Vol
Slide 15: E-Systems Sales and Margin Drivers
E-Systems Sales and Margin Drivers First Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 60 bps 5.1% $34 $1,517 $104 15 bps $(12) $(2) 90 bps $1,393 (5)bps $77 3.5% $49 Q1 2023 Volume / Mix Backlog FX Commodities / Q1 2024 Q1 2023 Volume / Backlog FX Commodities / Q1
Slide 16: 2024 Outlook – Global Vehicle Production and Currency
2024 Outlook – Global Vehicle Production and Currency Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA FY 2023 89.0 FY 2023 15.7 FY 2023 18.3 FY 2023 27.8 FY 2024 88.8 FY 2024 16.0 FY 2024 17.9 FY 2024 28.3 vs Prior Year vs P
Slide 17: 2024 Full Year Outlook Unchanged
2024 Full Year Outlook Unchanged Interest Expense ≈$110 million Net Sales Operating Cash Flow $24,000 - $24,600 million $1,275 - $1,425 million Effective Tax Rate 21% - 22% Core Operating Earnings Capital Expenditures $1,155 - $1,305 million ≈$675 million Adjusted Net Income $730 - $840 million Adju
Slide 18: Commitment to Returning Capital to Shareholders
Commitment to Returning Capital to Shareholders History of share repurchases and dividends SHARE REPURCHASES AND DIVIDENDS • Repurchased more than $5.2 billion of shares since ($ in millions) the beginning of 2011 Returned ≈85% of free cash flow to shareholders since 2011 • Annual dividend of $3.08
Slide 19: Concluding Remarks
Concluding Remarks Ray Scott President and CEO
Slide 20: Continued Evolution of the Lear Strategy
Continued Evolution of the Lear Strategy Transform Extend Seating E-Systems through Lead in market leadership accelerated Innovation, Prioritize people with new growth in Digitalization, and planet priceable content connection systems Engineering, and electrification Automation Lear Proprietary: The
Slide 21: Appendix
Appendix
Slide 22: 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 23: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 23
Slide 24: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 24
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