Lear 2022年年报-2023-02-企业研究

FourthQuarterandFullYear2022FinancialResults

February2,2023

RayScott,PresidentandCEO

JasonCardew,SeniorVicePresidentandCFO

SafeHarborStatement

Forward-LookingStatements

Thispresentationcontainsforward-lookingstatementswithinthemeaningofthePrivateSecuritiesLitigationReformActof1995,includingstatementsregardinganticipatedfinancialresultsandliquidity.Thewords“will,”“may,”“designedto,”“outlook,”“believes,”“should,”“anticipates,”“plans,”“expects,”“intends,”“estimates,”“forecasts”andsimilarexpressionsidentifycertainoftheseforward-lookingstatements.TheCompanyalsomayprovideforward-lookingstatementsinoralstatementsorotherwrittenmaterialsreleasedtothepublic.Allstatementscontainedorincorporatedinthispresentationorinanyotherpublicstatementsthataddressoperatingperformance,eventsordevelopmentsthattheCompanyexpectsoranticipatesmayoccurinthefutureareforward-lookingstatements.Factorsthatcouldcauseactualresultstodiffermateriallyfromtheseforward-lookingstatementsarediscussedintheCompany’sAnnualReportonForm10-KfortheyearendedDecember31,2021,itsQuarterlyReportsonForm10-QforthequartersendedApril2,2022,July2,2022,andOctober1,2022,anditsotherSecuritiesandExchangeCommissionfilings.Futureoperatingresultswillbebasedonvariousfactors,includingactualindustryproductionvolumes,theimpactoftheongoingCOVID-19pandemicontheCompany’sbusinessandtheglobaleconomy,supplychaindisruptions,commodityprices,changesinforeignexchangerates,the impactofrestructuringactionsandtheCompany'ssuccessinimplementingitsoperatingstrategy.

InformationinthispresentationreliesonassumptionsintheCompany’ssalesbacklog.TheCompany’ssalesbacklogreflectsanticipatednetsalesfromformallyawardednewprogramslesslostanddiscontinuedprograms.TheCompanyentersintocontractswithitscustomerstoprovideproductionpartsgenerallyatthebeginningofavehicle’slifecycle.Typically,thesecontractsdonotprovideforaspecifiedquantityofproduction,andmanyofthesecontractsmaybeterminatedbytheCompany’scustomersatanytime.Therefore,thesecontractsdonotrepresentfirmorders.Further,thecalculationofthesalesbacklogdoesnotreflectcustomerpricereductionsonexistingornewlyawardedprograms.Thesalesbacklogmaybeimpactedbyvariousassumptionsembeddedinthecalculation,includingvehicleproductionlevelsonnewprograms,foreignexchangeratesandthetimingofmajorprogramlaunches.

Theforward-lookingstatementsinthispresentationaremadeasofthedatehereof,andtheCompanydoesnotassumeanyobligationtoupdate,amendorclarifythemtoreflectevents,newinformationorcircumstancesoccurringafterthedatehereof.

Non-GAAPFinancialInformation

Thispresentationalsocontainsnon-GAAPfinancialinformation.ForadditionalinformationregardingtheCompany’suseofnon-GAAPfinancialinformation,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithaccounting

principlesgenerallyacceptedintheUnitedStates(“GAAP”),pleaseseeslidestitled“Non-GAAPFinancialInformation”attheendofthispresentation.

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

2

Agenda

02

FINANCIALREVIEW

JasonCardew,SeniorVicePresidentandCFO

CONCLUDINGREMARKS

RayScott,PresidentandCEO

BUSINESSUPDATE

RayScott,PresidentandCEO

03

01

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

3

BusinessUpdate

RayScott

PresidentandCEO

FY2022Q42022

SALES

COREOPERATINGEARNINGS

ADJUSTED

EARNINGSPERSHARE

Q4

FinancialOverview

FourthQuarterandFullYear2022

OPERATINGCASHFLOW

$265M

UP67%YOY

$2.81

UP130%YOY

$537M

UP222%YOY

$5.4B

UP10%YOY

$871M

UP5%YOY

$8.72

UP10%YOY

$1.0B

UP52%YOY

$20.9B

UP8%YOY

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP.

5

2022Highlights

BUSINESS

CompletedtheKongsbergacquisitionandannouncedagreementtoacquireIGBauerhin(IGB)toexpandproductofferingsinthegrowingthermalcomfortsolutionsmarket

SelectedbyGeneralMotorstoexclusivelysupplytheBatteryDisconnectUnit(BDU)onallfull-sizeSUVsandtrucksbuiltontheautomaker'sUltiumEVPlatformthrough2030

Netconquestwinsof≈$700millionsupportinggrowthinSeating

FINANCIAL

FullyearsalesoutperformedglobalindustryproductionbyfivepercentagepointswithabovemarketgrowthinbothSeatingandE-Systems

Fifthconsecutivequarterofimprovingcoreoperatingearningsandadjustedmargins

Returned≈$286milliontoshareholdersthroughdividendsandsharerepurchasesin2022;freecashflowconversionimprovedto73%

AWARDS

ReceivedmorethantwiceasmanyJ.D.Power2022U.S.SeatQualityandSatisfactionStudySMawardsthananyotherseatsupplier,withtwobestinsegmentandseventotalawards

Awardeda2022AutomotiveNewsPACEpilotawardforConfigurE+withzonalsafetytechnology,thefirstwirelessandelectronics-basedsystemthatidentifiesseatlocationandoccupantstatustoactivatesafetyfeatures

NamedtoFORTUNEmagazine's"World'sMostAdmiredCompanies"listfortheseventhconsecutiveyearandrankedsecondintheautomotivesegmentinNewsweek’sAmerica'sMostResponsibleCompaniesfor2023

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP.

6

Seating

Key2023ProductLaunches

GlobalOEM

CONQUEST

JIT,ThermalComfort

NORTHAMERICA

ChevroletColorado/GMCCanyon

CONQUEST

JIT,Trim,Structures

NORTHAMERICA

ChevroletSilveradoEV

JIT,Trim,Structures

NORTHAMERICA

BMW5Series/i5

CONQUEST

JIT,Trim,ThermalComfort

EUROPE

ChevroletEquinoxEV

JIT,Foam

NORTHAMERICA

PorschePanamera

JIT,Trim,Structures

EUROPE

Polestar3

JIT,ThermalComfort

ASIA

Mercedes-BenzCLE

JIT,Trim,Structures

EUROPE

=ElectricVehicle

=Luxury

Mercedes-BenzE-Class

JIT,Fabric

ASIA

NIOES8

JIT

ASIA

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

7

E-Systems

=ElectricVehicle

Key2023ProductLaunches

ChevroletColorado/GMCCanyon

LowVoltageWiring

NORTHAMERICA

GMBETPlatform

BatteryDisconnectUnit

NORTHAMERICA

GMUltiumPlatform

IntercellConnectBoard

NORTHAMERICA

MINICountryman

BodyControlModule

EUROPE

VolvoEX90

OnboardChargerandBatteryManagementSystem

EUROPE

GlobalEVOEM

HighandLowVoltageWiring

NORTHAMERICA/EUROPE

VolvoXC40/

XC40Recharge

BatteryDisconnectUnit

ASIA/EUROPE

ChevroletBlazerEV

LowVoltageWiring

NORTHAMERICA

Mercedes-BenzAMGGT

LowVoltageWiring

EUROPE

Polestar3

HighVoltageWiring

ASIA

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

8

•AcquiredKongsbergtoaddthermal

comfortcapabilities

•25%JITmarketshare

•Launchedinitial

ConfigurE+program

•DevelopedLear

ForwardPlanto

enhanceoperationalefficiencies

•Improvedfreecashflowconversion

•AcquiredThagoraandInTouch

•Receivedindustryrecognitionfor

excellenceinESG

•JoinedClimateGroup’sRE100initiative

•Developedsustainablematerials(FlexAirTM,

ReNewKnitTM)

ProgresstoDate

FocusedStrategyinPlacetoDriveGrowthandProfitability

Strategy

Outlinedin

Q12021

Prioritizepeopleandplanet

Transform

throughaccelerated

growthinconnection

LeadinIndustry4.0

through

digitalizationand

automation

Extendmarket

leadershipwith

priceablecontent

systemsand

electrification

•Streamlinedportfolio

•Supplyinginnovativeproductsonlarge

EVplatforms

•Improvedcustomerdiversification

•Enhancedverticalintegration(M&N)

9

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

E-SYSTEMSSEATING

SouthAmerica

≈$100

Asia

≈$450

≈55%

Electrification

≈$1,500

DRIVERSOFBACKLOGCHANGES

•MultipleconquestawardsinSeating

•SignificantelectrificationawardsinE-Systems

•Customerprogramchanges(primarilytiming)

≈$1,000

$350

≈$350

$125

$225

$575

$1,800

$925

$650

SalesBacklog(NetNewAwardedBusiness)

2023–2025CONSOLIDATED≈$2.85BSALESBACKLOGCONSOLIDATEDSALESBACKLOGBYREGION

($inmillions)

($inmillions)

Europe

≈$750

NorthAmerica

≈$1,550

≈$2,850

$1,050

2023-2025202320242025

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Note:SalesbacklogassumesanaverageEuroof$1.05andanaverageChineseRMBof7.00/$.Salesbacklogbyregionnottoscale.

10

FinancialReview

JasonCardew

SeniorVicePresidentandCFO

FourthQuarter2022

GlobalVehicleProductionandCurrency

INDUSTRYPRODUCTION

(unitsinmillions)

GLOBAL

Q4202120.7

Q4202221.2

UP2%YOY

NORTHAMERICA

Q420213.3

Q420223.6

UP8%YOY

EUROPEANDAFRICA

Q420214.1

Q420224.3

UP5%YOY

CHINA

7.2

Q42021

6.9

Q42022

DOWN5%YOY

KEYCURRENCIES

2022

$1.02/€

7.14/$

2021

$1.15/€

6.39/$

DOWN

DOWN

11%

10%

EURO

CHINESERMB

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.Source:S&PGlobalMobility(formerlyIHSMarkit)asofJanuary17,2023

12

17%

EUROPE

•Seating:Backlogandfavorableplatformmix

•E-Systems:Backlogandfavorableplatformmix

1%

NORTHAMERICA

•Seating:Backlogpartiallyoffsetbyunfavorable

platformmix

•E-Systems:Backlogandfavorableplatformmix

(1)%CHINA

•Seating:Backlogpartiallyoffsetbyunfavorable

platformmix

•E-Systems:Unfavorableplatformmixpartially

offsetbybacklog

Market

GrowthOver

FourthQuarter2022

7%Q42022

5%FY2022

GlobalGoM

7%Q42022

5%FY2022

SeatingGoM

8%Q420224%FY2022

E-SystemsGoM

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Year-over-yearsalesgrowthovermarket(GoM)excludestheimpactofFX,commoditiesandacquisitions.Theyear-over-yearchangeinproductiononaLearsales-weightedbasisiscalculatedusingLear’sprioryearregionalsalesmix.S&PGlobalMobilityproductionhasbeenadjustedtomatchLear’sfiscalcalendar.

13

Strongbacklog,increasedvolumeandcommoditypass-

through,partiallyoffsetbytheimpactfromforeignexchange

$4,880

$5,371

Increasedsales,accretivebacklogandpositiveoperatingperformance,partiallyoffsetbytheimpactfromforeignexchangeandhighercommoditycosts

$1.22

$2.81

Highercoreearnings

Improvedearnings

working

capitalmanagementandhighercore

$167

$537

KeyFinancials

FourthQuarter2022

($inmillions,exceptpershareamounts)20212022YEAR-OVER-YEARDRIVERS

NetSales

CoreOperatingEarnings

OperatingMargin%

$158

3.2%

$265

4.9%

AdjustedEarnings

PerShare

OperatingCashFlow

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

14

SeatingSalesandMarginDrivers

FourthQuarter2022

SALES

($inmillions)

$88

$236

$4,037

$264

$(249)

$3,641

BacklogCommoditiesFX

Volume/Mix/Other

AcquisitionsQ42022

Q42021

$57

ADJUSTEDEARNINGSANDMARGIN

($inmillions)

25bps

50bps

(5)bps(25)bps

(50)bps

5.5%

AcquisitionsEngineering/Net

LaunchPerformance

BacklogCommodities

Volume/Mix

85bps

50bps

$275

$199

Q42022

Q42021

6.8%

FX

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

15

E-SystemsSalesandMarginDrivers

FourthQuarter2022

SALES

($inmillions)

$74

$75

$1,334

$(130)

Volume/

Mix/Other

BacklogCommodities

Q42021

Q42022

$1,239

$76

FX

ADJUSTEDEARNINGSANDMARGIN

($inmillions)

65bps

70bps

145bps

(100)bps

(0)bps

3.0%

Net

Performance

BacklogCommodities

Volume/Mix

Q42021

Q42022

4.8%

$64

$38

FX

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

16

4.3%

3.9%

3.5%

2.6%

5.1%

3.6%

OperatingCashFlowandCapitalAllocation

CAPITALALLOCATIONSTRATEGY

StrongBalanceSheet

•Nooutstandingdebtmaturitiesuntil2027

•Lowcostofdebtaveraginglessthan4%withaweightedaveragelifeof14.4years

•Totalavailableliquidityof$3.1billion

•UnfundedpensionandOPEBliabilitiesimprovedfrom$260millionto$119million

ImprovingCashGeneration

•Growingcoreproductlines

•ExecutingtheLearForwardPlan

•Targeting80%freecashflowconversion

ReturningExcessCashtoShareholders

•Annualizeddividendof$3.08pershare

•≈763,000shares(≈$100million)repurchasedin2022

•Availablestockrepurchaseauthorizationof$1.2billionthroughDecember31,2024

DEBTMATURITIES

($inmillions)

$2,000

Bonds

AvailableRevolver

$625

$550

$350

$375$350$350

202320242025202620272028202920302031203220492052

AmountsandweightedaverageinterestratesasofDecember31,2022

Excludesacommitted$150milliondelayed-drawtermloanfacilityexpectedtobeusedfortheacquisitionofIGBandgeneralcorporatepurposes

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

17

GLOBALNORTHAMERICA

FY202280.5FY202214.3

EUROPEANDAFRICA

CHINA

FY2022

FY2022

25.0

16.1

2023Outlook–GlobalVehicleProductionandCurrency

INDUSTRYPRODUCTION

(unitsinmillions)

FY202315.0

vsPriorYear

UP5%

FY202316.1

vsPriorYear

FLAT

FY202325.0

vsPriorYear

FLAT

FY202381.3

vsPriorYear

UP1%

LearWeightedOutlook

UP2%

KEYCURRENCIES

EURO

CHINESERMB

2022

$1.05/€

6.73/$

2023

$1.05/€

7.00/$

FLAT

DOWN4%

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Source:S&PGlobalMobility(formerlyIHSMarkit)asofJanuary17,2023,andCompanyestimatesforoutlook

18

NetSales

$21,200-$22,200million

CoreOperatingEarnings

$875-$1,075million

AdjustedEBITDA

$1,475-$1,675million

OperatingCashFlow

$1,075-$1,225million

CapitalExpenditures

≈$700million

FreeCashFlow

$375-$525million

2023FullYearOutlook

InterestExpense

≈$105million

EffectiveTaxRate

21%to22%

AdjustedNetIncome

$510-$670million

RestructuringCosts

≈$100million

Note:2023FullYearOutlookassumesanaverageEuroof$1.05andanaverageChineseRMBof7.00/$

Certainoftheforward-lookingfinancialmeasuresareprovidedonanon-GAAPbasis.Areconciliationofforward-lookingfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAPispotentiallymisleadingandnotpracticalgiventhedifficultyofprojectingeventdriventransactionalandothernon-coreoperatingitemsinanyfutureperiod.Themagnitudeoftheseitems,however,maybesignificant.

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

19

2022Actualto2023Outlook-atMid-Point

($inmillions)

SALESADJUSTEDEARNINGSANDMARGIN

$20,892

$(11)

$1,000

$(76)

$(215)

$110$21,700

4.2%5bps

-

$871

25bps

15bps

(5)bps

(5)bps

(25)bps

20bps

4.5%

$975

2022

Volume/Mix/Other

BacklogCommodities

FX

Acquisitions/Divestitures

2023Outlook

atMidpoint

2022

Volume/

Mix

BacklogCommodities

FXAcquisitions/Engineering/DivestituresLaunch

Net

Performance

2023Outlook

atMidpoint

Certainoftheforward-lookingfinancialmeasuresareprovidedonanon-GAAPbasis.Areconciliationofforward-lookingfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAPispotentiallymisleadingandnotpracticalgiventhedifficultyofprojectingeventdriventransactionalandothernon-coreoperatingitemsinanyfutureperiod.Themagnitudeoftheseitems,however,maybesignificant.

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

20

•AcquiredKongsbergtoaddthermal

comfortcapabilities

•25%JITmarketshare

•Launchedinitial

ConfigurE+program

•DevelopedLear

ForwardPlanto

enhanceoperationalefficiencies

•Improvedfreecashflowconversion

•AcquiredThagoraandInTouch

•Receivedindustryrecognitionfor

excellenceinESG

•JoinedClimateGroup’sRE100initiative

•Developedsustainablematerials(FlexAirTM,

ReNewKnitTM)

ProgresstoDate

FocusedStrategyinPlacetoDriveGrowthandProfitability

Strategy

Outlinedin

Q12021

Prioritizepeopleandplanet

Transform

throughaccelerated

growthinconnection

LeadinIndustry4.0

through

digitalizationand

automation

Extendmarket

leadershipwith

priceablecontent

systemsand

electrification

•Streamlinedportfolio

•Supplyinginnovativeproductsonlarge

EVplatforms

•Improvedcustomerdiversification

•Enhancedverticalintegration(M&N)

21

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

E-SystemsMarginExpansionPlan–KeyDrivers

CONNECTIONSYSTEMS

•LeveragingICBtogrowpresenceintheproductspace

•ContinuedgrowthinBatteryPlugboards

•Expandingengineeredcomponentcapabilitiesinlow-costfootprint(NorthAfrica)

•Leveragingverticalintegrationcapabilitiestoimprovecostcompetitivenessandfinancialreturns

ELECTRONICS

•Shiftingresourcestoproductswithstronggrowthand

financialreturns

‒TargetingstrongBDUmarketposition(>20%shareofouraddressablemarket)

‒Focusingonpowertrainagnosticbodyandzonal

electronics

•Windingdownproductlineswithlowerrisk-adjustedreturns

•Launchingprofitablebacklog

ConnectionSystemsRevenue

(includinginternalsales)

($inmillions)

2022Actual

3-YearCAGR

2025

Plan

$464$750≈17%

•Revenuesup≈$285million

•E-SystemsMarginImpact≈100bps

ElectronicsRevenue

($inmillions)

2025Plan

3-YearCAGR

2022

Actual

$975 600

≈20%

Core

WindDown

$572

661

≈9%

Total$1,233$1,575

•CoreProductRevenuesup≈$400million

•E-SystemsMarginImpact≈125bps

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

22

LearForwardPlanImprovesCashFlowandDrivesShareholderReturns

•Generatecostsavingstopartiallyoffsetelevatedwageinflation

•Aggressivelymanageworkingcapital

•Repurposeassetsandoptimizecapextoimprovereturnsoncapital

•Optimizemanufacturingfootprintbyimprovingcapacityutilization

•Accelerateflexibilityandautomationinmanufacturingplants

•StreamlineoverheadandSG&A

Benefitedfourthquartercashflow

Expecttosave≈$50millionin2023

Targeting80%freecashflowconversion

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

23

ConcludingRemarks

RayScott

PresidentandCEO

ExecutingfortheFuture

ExpandThermalComfortSolutions

ExecuteLearForwardPlan

GrowElectrificationandConnectionSystems

FocusonCashFlowGeneration

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

25

Appendix

Strongbacklog,increasedvolumeandcommoditypass-

through,partiallyoffsetbytheimpactfromforeignexchange

$19,263

$20,892

$826

4.3%

$871

4.2%

Increasedsalesandaccretivebacklog,partiallyoffsetbytheimpactfromhighercommoditycostsandforeignexchange

$7.94

$8.72

Highercoreearningsandincreasedequityearnings

Improvedearnings

working

capitalmanagementandhighercore

$670

$1,021

KeyFinancials

FullYear2022

($inmillions,exceptpershareamounts)20212022YEAR-OVER-YEARDRIVERS

NetSales

CoreOperatingEarnings

OperatingMargin%

AdjustedEarnings

PerShare

OperatingCashFlow

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

27

SeatingSalesandMarginDrivers

FullYear2022

SALES

($inmillions)

$319

$15,711

$(750)

$14,411

BacklogCommoditiesFX

Volume/Mix/Other

AcquisitionsFY2022

FY2021

$198

$805

$728

ADJUSTEDEARNINGSANDMARGIN

($inmillions)

30bps

45bps

(60)bps

6.3%

(20)bps

(25)bps

AcquisitionsEngineering/Net

LaunchPerformance

BacklogCommodities

Volume/Mix

(5)bps

25bps

$981

$912

6.2%

FY2021

FY2022

FX

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

28

E-SystemsSalesandMarginDrivers

FullYear2022

SALES

($inmillions)

$274

$5,180

$(376)

Volume/

Mix/Other

BacklogCommodities

$4,852

FY2021

FY2022

$279

$151

FX

ADJUSTEDEARNINGSANDMARGIN

($inmillions)

55bps

40bps

4.1%

30bps

(170)bps

(15)bps

BacklogCommoditiesFX

Net

Performance

Volume/Mix

FY2021

FY2022

$184

$197

3.5%

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

29

Seating2022Actualto2023Outlook-atMid-Point

($inmillions)

SALES

ADJUSTEDEARNINGSANDMARGIN

$15,711

$(54)

$650

$(77)

$(140)

$110$16,200

6.2%

$981

(5)bps

15bps

20bps

25bps

0bps(10)bps(25)bps

6.4%

$1,040

2022

Volume/Mix/Other

BacklogCommodities

FX

Acquisitions/Divestitures

2023Outlook

atMidpoint

2022

Volume/

Mix

BacklogCommodities

FXAcquisitions/Engineering/DivestituresLaunch

Net

Performance

2023Outlook

atMidpoint

Certainoftheforward-lookingfinancialmeasuresareprovidedonanon-GAAPbasis.Areconciliationofforward-lookingfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAPispotentiallymisleadingandnotpracticalgiventhedifficultyofprojectingeventdriventransactionalandothernon-coreoperatingitemsinanyfutureperiod.Themagnitudeoftheseitems,however,maybesignificant.

LearProprietary:TheinformationcontainedhereinisthepropertyofLearCorporation.

Pleaseseeappendixfordiscussionofnon-GAAPfinancialmeasures,aswellasreconciliationsofnon-GAAPfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAP

30

40bps

(5)bps0bps

(25)bps

3.5%

$184

E-Systems2022Actualto2023Outlook-atMid-Point

($inmillions)

SALES

ADJUSTEDEARNINGSANDMARGIN

$350

$5,500

$45

$(75)

$5,180

2022Volume/Mix/BacklogFX2023Outlookat

OtherMidpoint

4.5%

50bps

40bps

$245

2022Volume/BacklogCommoditiesFXEngineering/Net2023Outlook

MixLaunchPerformanceatMidpoint

Certainoftheforward-lookingfinancialmeasuresareprovidedonanon-GAAPbasis.Areconciliationofforward-lookingfinancialmeasurestothemostdirectlycomparablefinancialmeasurescalculatedandpresentedinaccordancewithGAAPispotentiallymisleadingandnotpracticalgiventhedifficultyofprojectingeventdriventransactionalandothernon-coreoperatingitemsinanyfutureperiod.Themagnitudeoftheseitems,however,maybes