20240429 Calibre April 2024 Investor Presentation.pdf
LEAR 2005 wachoviaconf
1. R
15th Annual Wachovia Securities
Nantucket Equity Conference
June 30, 2005
fast forward
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2. Strategic Evolution
Going Forward Profitably Grow the Business
Operational Excellence;
1999-2003
Reduce Debt
Seat Systems to
1994-1999
Total Interior Capability
Seat Components
1990-1994
to Seat Systems
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3. Lear’s Strategy has Supported Rapid Growth
Net Sales
SALES
(in billions)
CAGR
18%
e
ncom $17.0
Net I 22%
$18.0
R
CAG
$16.0
$14.0
$12.0
$10.0
$8.0
$6.0
$3.1
$4.0
$2.0
$0.0
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Over The Last Ten Years,
Lear Has Been Focused On Growth
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4. Global Market Leadership
North
America Europe Global
Seating Systems #1 #1 #1
Door Panels #1 #3 #2
Flooring & Acoustics #2 #8 #2
Headliners #2 #3 #3
Electrical Distribution #3 #3 #3
Instrument Panels #5 #4 #7
Source: 2003 Lear Market Share study
Leadership Position in
Total Interiors
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5. Industry Trends
Consumers are demanding more interior features
Automakers are focused on world-class interiors and
“Perceptual Quality”
Interiors are now used to differentiate platform
derivatives
Automotive interiors are the fastest growing segment
of the auto industry
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6. Going Forward, We have a Focused
Strategy to Grow Our Business Worldwide*
Aggressively
expand our
presence in
Asia and with
Asian OEMs
Improve our
globally
business
structure and
grow our market
Reposition our
share in Europe
business for
improved long-
term profitability
in North America
Grow And Diversify Our Business Worldwide
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* Please see slide titled “Forward-Looking Statements” at the endthethis presentation for furtherfor further information.
* Please see slide titled “Forward-Looking Statements” at of end of this presentation information.
7. We Have Strengthened Our Financial Position
65% **
63% Net Debt /Capital
58%
46%
42%
2000 2001* 2002* 2003 2004
* Includes ABS debt of $261 million in 2001 and $189 million in 2002 (implemented in 2001).
** Net debt represents total debt plus utilization of our ABS facility, less cash and cash equivalents. Please see slides titled “Use of
Non-GAAP Financial Information” at the end of this presentation for further information.
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8. We are Continuing to Diversify Our Sales Mix
Non-Traditional Big Three* Recent Geographic Mix
Europe
46% 39%
19%
Rest of World North America
2004
1994 6% 55%
Presence In Asia Positions Us For Future Growth
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* Excludes affiliates of GM (other than Opel), Ford and DaimlerChrysler.
9. Current Business Conditions
North American and European vehicle production down
in the first half and for the full year
Adverse first quarter mix impact driven by sharp declines
in high content platforms
Raw material prices, including steel and resin, negatively
impacting earnings
Fierce global competition for market share
Significant Adverse Earnings Impact In First Half;
Improving Outlook For Balance Of 2005 9
10. Record Sales Backlog Supports Continued Growth
Major New Business
Sales Backlog*
(in millions)
$3,800
2005 backlog up $150 million from
last year on a comparable basis
Three-year backlog up $750 million
from last year on a comparable
basis
Interior and electronic / electrical
$1,550
represent 50% of the three-year
backlog
European and Asian customers
represent over half of the three-
year backlog
2005 2005 - 2007
Record Net New Business Supports Continued Growth
And Diversification Of Sales
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* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
11. Long-Term Outlook
Remains Positive for Lear*
Near-term financial results severely depressed,
reflecting transitional volume and cost factors
Strong three-year sales backlog of $3.8 billion
Platform mix to improve in 2006 with full-year benefit
of major 2005 launches and introduction of GMT900
Global restructuring plan to improve long-term
competitiveness
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* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
12. Use of 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 “net debt,” a non-
GAAP financial measure. Net debt represents total debt plus utilization under the Company’s ABS facility, less cash
and cash equivalents.
Management believes that net debt provides useful information regarding the Company’s financial condition. Further,
management uses net debt for planning and forecasting in future periods.
Net debt should not be considered in isolation or as a substitute for total debt or other balance sheet data prepared in
accordance with GAAP. Also, net debt, as determined and presented by the Company, may not be comparable to
related or similarly titled measures reported by other companies.
Set forth on the following slide is a reconciliation of net debt to total debt calculated and presented in accordance with
GAAP.
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13. Use of Non-GAAP Financial Information Net Debt
(in millions)
December 31,
Net debt 2003 2002 2000
2004 2001
Short-term borrowings $ 35.4 $ 17.1 $ 37.3 $ 63.2 $ 72.4
Current portion of long-term debt 632.8 4.0 3.9 129.5 155.6
Long-term debt 1,866.9 2,057.2 2,132.8 2,293.9 2,852.1
Total debt 2,535.1 2,078.3 2,174.0 2,486.6 3,080.1
Cash and cash equivalents ( 584.9 ) ( 169.3 ) ( 91.7 ) ( 87.6 ) ( 98.8 )
Asset backed securitization - - 189.0 260.7 -
Net debt $ 1,950.2 $ 1,909.0 $ 2,271.3 $ 2,659.7 $ 2,981.3
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Note: Net Debt to Capital is defined as Net Debt divided by Net Debt plus Stockholders’ Equity.
14. 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. Actual results may differ materially from anticipated results
as a result of certain risks and uncertainties, including but not limited to, general economic conditions in the markets in which
the Company operates, fluctuations in the production of vehicles for which the Company is a supplier, labor disputes involving
the Company or its significant customers or suppliers or that otherwise affect the Company, the Company’s ability to achieve
cost reductions that offset or exceed customer-mandated selling price reductions, the outcome of customer productivity
negotiations, the impact and timing of program launch costs, the costs and timing of facility closures, business realignment or
similar actions, increases in the Company’s warranty or product liability costs, risks associated with conducting business in
foreign countries, competitive conditions impacting the Company’s key customers, raw material cost and availability, the
Company’s ability to mitigate the significant impact of recent increases in raw material, energy and commodity prices, the
outcome of legal or regulatory proceedings to which the Company is or may become a party, unanticipated changes in cash
flow and other risks described from time to time in the Company’s Securities and Exchange Commission filings.
This presentation also contains information on the Company’s sales backlog. The Company’s incremental sales backlog
reflects: anticipated net sales from awarded new programs, less net sales from phased-out and cancelled programs. The
calculation of backlog does not reflect customer price reductions on existing or newly awarded programs. The three-year
backlog may be impacted by various assumptions embedded in the calculation, including vehicle production levels on new and
replacement programs, foreign exchange rates and the timing of program launches.
The forward-looking statements in this presentation are made as of the date hereof, and the Company does not assume any
obligation to update them.
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