Lear Corporation · NYSE:LEA

Lear — Q1 2011 Earnings Presentation

24 slides from Lear's earnings presentation, Apr 29, 2011

  1. Slide 1: First Quarter 2011 Financial Results

    First Quarter 2011 Financial Results April 29, 2011 Exhibit 99.2

  2. Slide 2: Agenda

    Agenda Company Highlights Bob Rossiter, CEO and President First Quarter 2011 Financial Results and 2011 Outlook Matt Simoncini, SVP and CFO Summary Bob Rossiter, CEO and President Q and A Session 2

  3. Slide 3: First Quarter 2011 Company Highlights

    Improved operating performance Strong sales growth and profit improvement in both segments Seating achieved target margins for the 4th consecutive quarter Electrical Power Management Systems margins continued to improve Generated positive free cash flow and strengthened credit metrics Ended quarter

  4. Slide 4: Japan Impact - Situation Continues to Develop

    Japan Impact - Situation Continues to Develop* Limited direct impact to Lear No production in Japan; 2010 sales in Japan were 1.6% of Lear total sales Minor damage at one Lear technical office in Atsugi Indirect impacts from part shortages and resulting volume reductions could be significant in the

  5. Slide 5: Lear Vehicle Segment Sales Diversification (By Revenue)

    5 Lear Vehicle Segment Sales Diversification (By Revenue) Global 2010 Increasing platform diversification Well represented in all vehicle segments globally Lear sales by vehicle segment consistent with overall industry Global 2005

  6. Slide 6: First Quarter 2011 Financial Results

    6 First Quarter 2011 Financial Results

  7. Slide 7: First Quarter 2011 Lear Financial Summary

    Global industry production up 5% reflecting growth in all of our major markets Vehicle production in Japan was down 32% reflecting the impact of the earthquake and tsunami on March 11th Net sales of $3.5 billion, up 20% from a year ago Core operating earnings of $205 million, up 48% from a year ago

  8. Slide 8: First Quarter 2011 Global Vehicle Production

    First Quarter 2011 Global Vehicle Production Source: IHS Automotive Vehicles Produced (in millions) 8

  9. Slide 9: First Quarter 2011 Reported Financials

    9 First Quarter 2011 Reported Financials* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.

  10. Slide 10: First Quarter 2011 Impact of Restructuring and Other Special Items

    10 First Quarter 2011 Impact of Restructuring and Other Special Items* * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.

  11. Slide 11: First Quarter 2011 Seating Performance

    ** Reported segment earnings represents pretax income before interest and other expense. Adjusted segment earnings represents reported segment earnings adjusted for restructuring costs and other special items. Q1 '11 Q1 '10 $ 2,313.5 $ 2,725.0 $ 149.6 $ 208.5 $ 157.6 $ 210.2 (in millions) Sales Earn

  12. Slide 12: First Quarter 2011 Electrical Power Management Systems Performance

    ** Reported segment earnings represents pretax income before interest and other expense. Adjusted segment earnings represents reported segment earnings adjusted for restructuring costs and other special items. * Please see slides titled "Non-GAAP Financial Information" at the end of this presentatio

  13. Slide 13: First Quarter 2011 Free Cash Flow

    First Quarter 2011 Free Cash Flow* (in millions) 13 * Please see slides titled "Non-GAAP Financial Information" at the end of this presentation for further information.

  14. Slide 14: Recent Shareholder Actions

    Recent Shareholder Actions 14 Share Repurchases On February 17th, Lear announced a three-year, $400 million share repurchase program During the first quarter, Lear repurchased $27 million of stock -- 528,998 shares at an average price of $51.84 per share (adjusted to reflect stock split) Cash Divide

  15. Slide 15: Status of Lear Share Count

    Status of Lear Share Count Number of Shares * Common Stock 104.7 million Warrants (0.9 million warrants) 1.8 million Management Shares (shares vest over 3 years based on time and performance) 2.5 million Total Shares, assuming full exercise/vesting 109.0 million Warrants Each Warrant entitles the ho

  16. Slide 16: 2011 Outlook

    Gear... 2011 Outlook

  17. Slide 17: Full Year 2011 Outlook: Vehicle Production, Euro and Key Commodities

    Full Year 2011 Outlook Vehicle Production, Euro and Key Commodities* Sources: IHS Automotive and Company estimates Vehicle Production (in millions) * Please see slide titled "Forward-Looking Statements" at the end of this presentation for further information. 17

  18. Slide 18: Full Year 2011 Financial Outlook

    18 * 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*

  19. Slide 19: Summary

    Gear... Summary

  20. Slide 20: Summary

    2011 off to a strong start with improving financial performance Sales up 20% in the first quarter versus 2010 Margin improvement in both business units Generated strong free cash flow; finished quarter with $1.7 billion in cash and total debt of $699 million Commenced program to return cash to share

  21. Slide 21: Non-GAAP Financial Information

    21 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 and other (income) expe

  22. Slide 22: Non-GAAP Financial Information: Segment Earnings

    22 Non-GAAP Financial Information Segment Earnings

  23. Slide 23: Non-GAAP Financial Information: Adjusted Segment Earnings

    23 Non-GAAP Financial Information Adjusted Segment Earnings

  24. Slide 24: 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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