Slide 1: Second Quarter 2024 Financial Results
July 25, 2024 Second 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 Second Quarter 2024
Financial Overview Second Quarter 2024 CORE OPERATING ADJUSTED OPERATING SALES EARNINGS EARNINGS PER SHARE CASH FLOW Q2 2024 $6.0B $302M $3.60 $291M FLAT YOY FLAT YOY UP 8% YOY DOWN 6% YOY Q2 2023 $6.0B $302M $3.33 $311M Lear Proprietary: The information contained herein is the property of Lear Corp
Slide 6: Q2 2024 Highlights
Q2 2024 Highlights Record quarterly sales of more than $6 billion New JIT seat award with Geely Zeekr, continuing growth with Chinese domestic Total company growth over market of 3 automotive manufacturers percentage points, with 7 percentage points in E-Systems and 2 percentage points in Seating Aw
Slide 7: Redefining Comfort, Design and Performance
Redefining Comfort, Design and Performance Thermal Comfort Systems (TCS) Progress On pace to grow TCS total revenue to $1.0 billion by 2027 Key conquest award ≈80% win rate Average annual value of YTD awards with a global OEM for TCS components tracking ≈30% above 2022 level Launching three ComfortF
Slide 8: Strong Relationships with Key Domestic Chinese Automakers
Strong Relationships with Key Domestic Chinese Automakers KEY DOMESTIC CHINESE CUSTOMERS LEAR COMPETITIVE POSITION • 30-year track record with local management team • Local engineering capabilities • Two-thirds of our 3-year backlog in China is with Chinese domestics • Return profile with Chinese do
Slide 9: Financial Review
Financial Review Jason Cardew Senior Vice President and CFO
Slide 10: Global Vehicle Production and Currency
Second Quarter 2024 Global Vehicle Production and Currency INDUSTRY PRODUCTION (units in millions) GLOBAL NORTH AMERICA EUROPE AND AFRICA CHINA Q2 2023 21.9 Q2 2023 4.1 Q2 2023 4.8 Q2 2023 6.4 Q2 2024 21.8 Q2 2024 4.2 Q2 2024 4.5 Q2 2024 6.7 DOWN 1% YOY UP 2% YOY DOWN 6% YOY UP 5% YOY Lear Weighted
Slide 11: Growth Over Market
Growth Over Market Second Quarter 2024 7% EUROPE 3% Q2 1% NORTH AMERICA (5)% CHINA Global GoM Seating: Backlog partially Seating: Unfavorable offset by unfavorable Seating: Backlog partially platform mix partially offset platform mix offset by unfavorable by backlog platform mix E-Systems: Favorable
Slide 12: Key Financials
Key Financials Second Quarter 2024 ($ in millions, except per share amounts) 2023 2024 YEAR-OVER-YEAR DRIVERS Strong backlog, partially offset by lower volume on Lear Net Sales $5,999 $6,012 platforms and the impact of foreign exchange Core Operating Earnings $302 $302 Positive net performance and a
Slide 13: Seating Sales and Margin Drivers
Seating Sales and Margin Drivers Second Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 7.2% $4,468 $62 $4,447 $150 10 bps 15 bps 6.8% $(50) $322 (5) bps $(183) (60) bps $300 $302 Q2 2023 Volume / Mix Backlog FX Commodities / Q2 2024 Q2 2023 Volume / Backlog FX Commod
Slide 14: E-Systems Sales and Margin Drivers
E-Systems Sales and Margin Drivers Second Quarter 2024 SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 120 bps 5.3% $96 $17 $1,565 $1,531 $(26) 4.1% 50 bps 0 bps $(53) $82 $63 (50)bps Q2 2023 Volume / Mix Backlog FX Commodities / Q2 2024 Q2 2023 Volume / Backlog FX Commodities / Q
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 86.7 FY 2024 15.7 FY 2024 17.4 FY 2024 27.7 DOWN 3% YOY FLAT YOY DOWN 6% YOY DOWN 1% YOY April Outlook
Slide 16: 2024 Full Year Outlook
2024 Full Year Outlook Interest Expense Net Sales ≈$110 million Operating Cash Flow $23,230 - $23,670 million $1,135 - $1,285 million Prior Outlook $24,000 - $24,600 million Effective Tax Rate Prior Outlook $1,275 - $1,425 million 21% - 22% Core Operating Earnings Capital Expenditures $1,030 - $1,20
Slide 17: Total Company April Outlook to July Outlook
Total Company April Outlook to July Outlook – at Mid-Point SALES CORE OPERATING EARNINGS AND MARGIN ($ in millions) ($ in millions) 5.1% $24,300 $23,450 5 bps 4.8% $(495) $(285) $(70) (25)bps (10)bps 0 bps $1,230 $1,115 April Outlook Volume / Mix / Backlog FX July Outlook April Outlook Volume / Back
Slide 18: Seating H1 2024 to H2 2024 Outlook
Seating H1 2024 to H2 2024 Outlook – at Mid-Point SALES KEY SECOND HALF SWING FACTORS ($ in millions) • Global macro environment $8,925 $24 $8,475 • Auto industry demand $(474) • Customer launch timing • Timing of commercial negotiations H1 2024 Volume / Other FX H2 2024 Outlook Actuals (Mid-point)
Slide 19: E-Systems H1 2024 to H2 2024 Outlook
E-Systems H1 2024 to H2 2024 Outlook – at Mid-Point SALES KEY SECOND HALF SWING FACTORS ($ in millions) • Global macro environment $3,082 $13 $2,968 • Auto industry demand $(127) • Customer launch timing • Timing of commercial negotiations • Operational execution H1 2024 Volume / Other FX H2 2024 Ou
Slide 20: Commitment to Returning Capital to Shareholders
Commitment to Returning Capital to Shareholders SHARE REPURCHASES AND DIVIDENDS • Repurchased ≈478,000 shares (≈$60 million) in the second ($ in millions) Dividends quarter and ≈$110 million YTD Repurchases $612 • Targeting $325 million of share repurchases in 2024 $101 • 8% year-over-year adjusted
Slide 21: Concluding Remarks
Concluding Remarks Ray Scott President and CEO
Slide 22: Strategic Business Initiatives
XXXXXXX Strategic Business Initiatives Accelerating Deployment of Driving Growth and Diversifying ComfortFlex by LearTM and the Customer Base through Focused ComfortMax Seat by Lear TM E-Systems Portfolio Developing and Deploying Returning Cash to Shareholders Advanced Manufacturing through Share Re
Slide 23: Appendix
Appendix
Slide 24: Seating April Outlook to July Outlook
Seating April Outlook to July Outlook – at Mid-Point SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 6.9% $18,175 10 bps 6.5% (45)bps (5)bps $17,400 0 bps $(605) $(125) $1,245 $(45) $1,130 April Outlook Volume / Mix / Backlog FX July Outlook April Outlook Volume / Backlog FX Commo
Slide 25: E-Systems April Outlook to July Outlook
E-Systems April Outlook to July Outlook – at Mid-Point SALES ADJUSTED EARNINGS AND MARGIN ($ in millions) ($ in millions) 30 bps $110 5.6% $6,125 $6,050 (25)bps 0 bps 5.4% $(160) $(25) (25)bps $340 $325 April Outlook Volume / Mix / Backlog FX July Outlook April Outlook Volume / Backlog FX Commoditie
Slide 26: 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 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
Slide 30: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 30
Slide 31: Non-GAAP
Non-GAAP Lear Proprietary: The information contained herein is the property of Lear Corporation. 31