2006 Q4 TRW Auto Earnings Presentation

Fourth Quarter and Full
Year 2006 Financial
Results Conference Call
Materials

February 22, 2007

Materials Included Pages
- Press Release 1-9
- Financial Summaries A1-A9
safety.
- Presentation P1-P22

TRW Automotive Holdings Corp.

TRW Automotive
News Release 12001 Tech Center Drive
Livonia, MI 48150

Investor Relations Contact:
Patrick R. Stobb
(734) 855-3140

Media Contact:
Manley Ford
(734) 855-2616

TRW Automotive Reports Fourth Quarter and Full Year 2006 Financial
Results; Provides 2007 Outlook

LIVONIA, MICHIGAN, February 22, 2007 — TRW Automotive Holdings Corp. (NYSE:
TRW), the global leader in active and passive safety systems, today reported fourth-
quarter 2006 financial results with sales of $3.3 billion, an increase of 4.3 percent
compared to the same period a year ago. Net earnings for the 2006 quarter were $33
million or $0.32 per diluted share, which compares to $59 million or $0.57 per diluted
share in the prior year quarter.

The reported results exceeded previous full year guidance levels primarily due to a
lower level of restructuring expense, a portion of which relates to a change in timing of
certain actions, and a favorable net operating outcome. Several factors affected the
year-to-year fourth quarter comparison, including lower restructuring expenses, a
higher effective tax rate in the 2006 period and the non-recurrence of a one-time
reduction in litigation reserves of $18 million that benefited the 2005 period.

The Company’s full-year 2006 sales grew to $13.1 billion, an increase of 4 percent
compared to the prior year. Net earnings for the year were $176 million, or $1.71 per
diluted share, which compares to 2005 earnings of $204 million or $1.99 per diluted
share. The reported results included debt retirement expenses in both years, as well as
non-recurring items in 2005 related to the previously mentioned reduction in litigation
reserves and a one-time tax gain. Net earnings excluding these items from both
periods, net of the assumed tax impact in each case, were $216 million or $2.10 per
diluted share in 2006, and $176 million or $1.72 per diluted share in 2005.

1

“Despite facing significant second half operating challenges, we are pleased to report
solid 2006 financial results that exceeded the business objectives we set at the
beginning of the year,” said John Plant, president and chief executive officer. “The
Company performed well in a difficult business environment, especially in North
America where sustained pressures from domestic OEM market share losses and
commodity inflation have taken a heavy toll on the industry. Our steady financial
performance over the past few years can be attributed to the strength of our safety
portfolio, together with industry leading diversification and extensive cost reduction
actions. Additionally, we are making considerable investments to enhance our
technology and our global presence in the marketplace, with the ultimate goal of
growing the Company profitably and competitively over the long term.”

Fourth Quarter 2006
The Company reported fourth-quarter 2006 sales of $3.3 billion, an increase of $136
million or 4.3 percent over the prior year period. The 2006 quarter benefited from the
positive effect of foreign currency translation, incremental sales related to the
acquisition of Dalphimetal in October 2005, and growth from safety products and
modules. These positives were partially offset by historically low customer vehicle
production volumes in North America and price reductions provided to customers.

Operating income for fourth-quarter 2006 was $126 million, which compares to $133
million in the prior year period. The prior year included a one-time gain of $18 million
due to a favorable reduction in litigation reserves. The 2006 quarter benefited from
lower restructuring and asset impairment expenses of $43 million. Excluding the one-
time gain in 2005 and restructuring and asset impairment costs from both periods,
operating income declined by $32 million. This year-to-year decline was driven by a
number of factors, including the effect of a significant decline in North American
customer vehicle production, pricing provided to customers and higher commodity
prices. Additionally, continued underperformance in the Company’s Automotive
Components Segment also contributed. Savings generated from cost improvement
and efficiency programs and the favorable resolution of certain business settlements
helped to offset these negative pressures. Restructuring and asset impairment
expenses in the 2006 period were $8 million, which compares to $51 million in 2005.

2

Net interest and securitization expense for the fourth quarter of 2006 increased to $66
million when compared to the prior year total of $58 million. The year-to-year increase
can be attributed primarily to the impact of rising interest rates on the Company’s
floating rate debt profile, which stands at approximately 71 percent of total debt
outstanding.

Fourth-quarter 2006 tax expense was $32 million. During the quarter, the Company
reversed a valuation allowance for its United Kingdom operations due to the non-
occurrence of certain planned restructuring actions and favorable operating results in
the region. As such, fourth quarter tax expense recognizes an accounting tax benefit of
$17 million related to the Lucas notes bond redemption transaction, which was
completed during the first quarter of 2006. Tax expense in the quarter excluding this
tax benefit was $49 million, resulting in an effective tax rate of 75 percent (based on
GAAP pre-tax earnings of $65 million). As mentioned previously, this higher tax rate,
which resulted from the Company’s geographic earnings profile in the 2006 quarter,
contributed to the decrease in net earnings when compared to the prior year results.

The Company reported fourth-quarter 2006 net earnings of $33 million, or $0.32 per
diluted share, which compares to $59 million or $0.57 per diluted share in the 2005
period. Fourth quarter 2006 net earnings excluding the $17 million tax benefit
discussed previously were $16 million or $0.16 per diluted share. In comparison, net
earnings for the 2005 period excluding the one-time litigation reserve adjustment of $18
million were $41 million or $0.40 per diluted share.

Earnings before interest, securitization costs, loss on retirement of debt, taxes,
depreciation and amortization (“EBITDA”) were $267 million in the fourth quarter, which
is consistent with the prior year level of $268 million.

Full Year 2006
For full-year 2006, the Company reported sales of $13.1 billion, an increase of $501
million or 4 percent compared to prior period sales of $12.6 billion. The current year
benefited from incremental sales related to the acquisition of Dalphimetal. Additionally,
sales benefited from increased safety product sales and foreign currency translation,
partially offset by a decline in North American customer vehicle production and price
reductions provided to customers.

3

Operating income for the full year period was $636 million, which represents an
increase of $83 million, or 15 percent, over the 2005 result of $553 million. The current
year benefited from a higher level of sales, savings generated from cost improvement
and efficiency programs, significantly lower restructuring and asset impairment costs
and the favorable resolution of certain business settlements. These items were partially
offset by price reductions provided to customers and the impact of higher commodity
prices, along with underperformance by the Automotive Components Segment in the
second half of the year and the non-recurrence of the litigation reserve benefit that
occurred in 2005. Restructuring and asset impairment expenses in 2006 were $30
million, which compares to $109 million in 2005.

Net interest and securitization expense for 2006 totaled $250 million, which compares
to $231 million in the prior year period. The year-to-year increase can be attributed to
the impact of rising interest rates on the Company’s floating rate debt and incremental
bank debt assumed at the time of the Dalphimetal acquisition.

In 2006, the Company incurred charges of $57 million related to the tender for the
outstanding GBP 94.6 million 10-⅞% bonds of its Lucas Industries Limited subsidiary.
Similarly, the Company incurred charges of $7 million in the prior year period for debt
retirement expenses associated with the partial redemption of its 10-⅛% senior notes.

Tax expense for the full year period was $166 million. The full year effective tax rate
excluding $57 million of debt retirement expenses related to the Lucas bond
transaction, and the related tax benefit of $17 million, was 46 percent.

Additionally, tax expense in 2006 included the positive effect of a reversal of prior tax
reserves (resulting from a final tax memorandum issued by the German tax authorities
clarifying the treatment of certain corporate interest deductions) and the negative effect
of establishing a valuation allowance for the net deferred tax asset of the Company’s
Canadian operations. The year-to-year net impact of these two items was immaterial.

4

2006 full year net earnings were $176 million, or $1.71 per diluted share, which
compares to $204 million or $1.99 per diluted share in the 2005 period. Net earnings in
both periods were impacted by certain non-recurring items, including 2006 expenses of
$57 million, or $40 million after-tax, related to the Lucas bond tender transaction.
Similarly, the 2005 results included net income of $28 million comprised of a one-time
tax gain of $17 million stemming from a tax law change in Poland and the litigation
reserve adjustment of $18 million, offset partially by debt retirement expenses of $7
million. Net earnings excluding these items from both periods were $216 million or
$2.10 per diluted share in 2006, which compares to $176 million or $1.72 per diluted
share in 2005.

EBITDA for the 2006 year totaled $1,166 million, which is an 8.5 percent increase
compared to the prior year total of $1,075 million. The year-to-year increase can be
attributed to the higher level of operating income in the 2006 period.

Cash Flow and Capital Structure
Net cash provided by operating activities during the fourth quarter and full year was
$397 million and $649 million, respectively. In the comparable 2005 period, the
Company’s cash flow from operating activities was $380 million in the fourth quarter
and $502 million for the full year. Fourth quarter capital expenditures were $195 million
compared to $222 million in 2005. For the 2006 year, capital expenditures were $529
million, which compares to $503 million in the previous year.

On November 10, 2006, the Company repurchased Northrop Grumman Corporation’s
remaining ownership position of 9.7 millions shares of TRW’s common stock.
Separately, on the same day, TRW sold 6.7 million of its common stock through a
public offering. Proceeds generated from the offering were used to fund a portion of the
Northrop Grumman stock repurchase. The net cash impact (cash used) to the
Company as a result of the stock transactions, which resulted in a 3 million decline in
shares outstanding, was $56 million.

5

On February 2, 2006, the Company’s wholly owned subsidiary, Lucas Industries
Limited, completed the tender for its outstanding GBP 94.6 million 10⅞% bonds. As a
result of the transaction, the Company incurred a $57 million charge for loss on
retirement, which reflects the difference between the tender amount and the book value
of debt related to the bonds at the time of the transaction.

On May 3, 2005, the Company repurchased a portion of its Euro denominated 10⅛%
senior notes totaling approximately €48 million, which resulted in pre-tax expenses of
$7 million for premiums and associated fees.

As of December 31, 2006, the Company had $3,032 million of debt and $589 million of
cash and marketable securities, resulting in net debt (defined as debt less cash and
marketable securities) of $2,443 million. The year-end 2006 net debt level decreased
$117 million compared to the year-end 2005 level, which represents solid progress
considering 2006 cash outflows related to the Lucas bond tender transaction premiums
of $57 million and $56 million related to the November 2006 stock transactions.

Recent Accounting Pronouncements – Adoption of SFAS No. 158
On December 31, 2006, the Company adopted SFAS No. 158 (“Employers’ Accounting
for Defined Benefit Pension and Other Postretirement Plans”), which requires the
recognition of the funded status of a company’s pension and postretirement plans on its
consolidated balance sheet. With the adoption of SFAS No. 158 at year-end, total
stockholders’ equity increased by $805 million. This adjustment reflects the recognition
of previously unrecognized actuarial gains, as well as prior service cost reductions
related primarily to corporate actions that significantly reduced pension and
postretirement obligations. Primarily as a result of this accounting change, the
Company’s debt to capital ratio (debt divided by the sum of debt plus equity) now
stands at 56 percent compared to 73 percent at the end of 2005.

2007 Outlook
For full-year 2007 sales are expected to be in the range of $13.4 to $13.8 billion
(including first quarter sales of approximately $3.5 billion). Full year net earnings per
diluted share are expected to be in the range of $1.85 to $2.15.

6

This guidance range reflects estimated pre-tax restructuring expenses of approximately
$40 million (including approximately $10 million in the first quarter) and an effective tax
rate of approximately 42 percent. Lastly, capital expenditures in 2007 are expected to
be approximately 4 percent of sales.

Mr. Plant commented, “We have initiated an aggressive business plan for the 2007 year
that will again draw heavily on the strength of our safety portfolio, diversification and our
ability to achieve the appropriate level of cost reductions. The full year outlook we
provided today reflects the many challenges we expect to face during the year,
including customer and commodity pricing pressures, further market share losses by
our major North American customers, and significantly lower commercial vehicle sales.
We anticipate the first half of 2007, especially the first quarter, will be particularly
difficult due to our expectation of significantly lower customer vehicle production among
our major North American customers and other factors.”

Fourth Quarter and Full Year 2006 Conference Call
The Company will host its fourth-quarter and full-year 2006 conference call at 9:00 a.m.
(EST) today, Thursday, February 22, to discuss financial results and other related
matters. To access the conference call, U.S. locations should dial (877) 852-7898, and
locations outside the U.S. should dial (706) 634-1095. A replay of the conference call
will be available approximately two hours after the conclusion of the call and accessible
for approximately one week. To access the replay, U.S. locations should dial (800)
642-1687, and locations outside the U.S. should dial (706) 645-9291. The replay code
is 6665440. A live audio web cast and subsequent replay of the conference call will
also be available on the Company’s website at www.trw.com/results.

Reconciliation to GAAP
In addition to GAAP results included within this press release, the Company has
provided certain information which is not calculated according to GAAP (“non-GAAP”).
Management believes these non-GAAP measures are useful to evaluate operating
performance and/or regularly used by security analysts, institutional investors and other
interested parties in the evaluation of the Company.

7

Non-GAAP measures are not purported to be a substitute for any GAAP measure and,
as calculated, may not be comparable to other similarly titled measures of other
companies. For a reconciliation of non-GAAP measures to the closest GAAP measure
and for share amounts used to derive earnings per share, please see the financial
schedules that accompany this release.

About TRW
With 2006 sales of $13.1 billion, TRW Automotive ranks among the world's leading
automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through
its subsidiaries, employs approximately 63,800 people in 26 countries.

TRW Automotive products include integrated vehicle control and driver assist systems,
braking systems, steering systems, suspension systems, occupant safety systems
(seat belts and airbags), electronics, engine components, fastening systems and
aftermarket replacement parts and services.

All references to quot;TRW Automotivequot;, “TRW” or the quot;Companyquot; in this press release
refer to TRW Automotive Holdings Corp. and its subsidiaries, unless otherwise
indicated. TRW Automotive news is available on the internet at www.trwauto.com.

Forward-Looking Statements
This release contains statements that are not statements of historical fact, but instead
are forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. All forward-looking statements involve risks and uncertainties.
Our actual results could differ materially from those contained in forward-looking
statements made in this release. Such risks, uncertainties and other important factors
which could cause our actual results to differ materially from those contained in our
forward-looking statements are set forth in our Report on Form 10-K for the fiscal year
ended December 31, 2005 (the “10-K”), and our Forms 10-Q for the quarters ended
March 31, June 30 and September 29, 2006, and include: production cuts or
restructuring by our major customers; work stoppages or other labor issues at the
facilities of our customers or suppliers; non-performance by, or insolvency of, our
suppliers and customers, which may be exacerbated by recent bankruptcies and other
pressures within the automotive industry; the inability of our suppliers to deliver
products at the scheduled rate and disruptions arising in connection therewith; interest

8

rate risk arising from our variable rate indebtedness (which constitutes a majority of the
company’s indebtedness); loss of market share by domestic vehicle manufacturers;
efforts by our customers to consolidate their supply base; severe inflationary pressures
impacting the market for commodities; escalating pricing pressures from our customers;
our dependence on our largest customers; fluctuations in foreign exchange rates; our
substantial leverage; product liability and warranty and recall claims and efforts by
customers to alter terms and conditions concerning warranty and recall participation;
limitations on flexibility in operating our business contained in our debt agreements; the
possibility that our owners' interests will conflict with ours and other risks and
uncertainties set forth under quot;Risk Factorsquot; in the 10-K and in our other SEC filings.
We do not intend or assume any obligation to update any of these forward-looking
statements.

###

9


Index of Condensed Consolidated Financial Information

Page

Consolidated Statements of Earnings (unaudited)
for the three months ended December 31, 2006 and December 31, 2005......................................A2

Consolidated Statements of Earnings
for the years ended December 31, 2006 (unaudited) and December 31, 2005...............................A3

Condensed Consolidated Balance Sheets
as of December 31, 2006 (unaudited) and December 31, 2005 ......................................................A4

Condensed Consolidated Statements of Cash Flows
for the years ended December 31, 2006 (unaudited) and December 31, 2005...............................A5

Reconciliation of GAAP Net Earnings to EBITDA (unaudited)
for the three months and years ended December 31, 2006 and December 31, 2005 .....................A6

Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited)
for the year ended December 31, 2006 ...........................................................................................A7

for the three months ended December 31, 2005 .............................................................................A8

for the year ended December 31, 2005 ...........................................................................................A9

The accompanying unaudited condensed consolidated financial information and reconciliation
schedules should be read in conjunction with the TRW Automotive Holdings Corp. Form 10-K for
the year ended December 31, 2005 and Forms 10-Q for the quarterly periods ended March 31,
2006 and June 30, 2006, and September 29, 2006 as filed with the United States Securities and
Exchange Commission on February 23, 2006, May 4, 2006, August 2, 2006, and November 1,
2006, respectively.


(Unaudited)

Three Months Ended
December 31,
(In millions, except per share amounts)

2006 2005

Sales ........................................................................................... $ 3,272 $ 3,136
Cost of sales ............................................................................... 3,020 2,856
Gross profit............................................................................ 252 280
Administrative and selling expenses ........................................... 124 93
Amortization of intangible assets ................................................ 8 9
Restructuring charges and asset impairments ............................ 8 51
Other income — net .................................................................... (14) (6)
Operating income .................................................................. 126 133
Interest expense — net ............................................................... 65 57
Accounts receivable securitization costs..................................... 1 1
Equity in earnings of affiliates, net of tax..................................... (7) (8)
Minority interest, net of tax .......................................................... 2 2
Earnings before income taxes ............................................. 65 81
Income tax expense .................................................................... 32 22
Net earnings ....................................................................... $ 33 $ 59

Basic earnings per share:
Earnings per share.................................................................... $ 0.33 $ 0.59
Weighted average shares ......................................................... 99.4 99.2

Diluted earnings per share:
Earnings per share.................................................................... $ 0.32 $ 0.57

A2



Years Ended
December 31,

2006 2005
(Unaudited)
Sales ........................................................................................... $ 13,144 $ 12,643
Cost of sales................................................................................ 11,943 11,444
Gross profit ............................................................................ 1,201 1,199
Administrative and selling expenses ........................................... 527 490
Amortization of intangible assets................................................. 35 33
Restructuring charges and asset impairments ............................ 30 109
Other (income) expense — net ................................................... (27) 14
Operating income .................................................................. 636 553
Interest expense — net ............................................................... 247 228
Loss on retirement of debt........................................................... 57 7
Accounts receivable securitization costs..................................... 3 3
Equity in earnings of affiliates, net of tax..................................... (26) (20)
Minority interest, net of tax .......................................................... 13 7
Earnings before income taxes ............................................. 342 328
Income tax expense .................................................................... 166 124
Net earnings........................................................................ $ 176 $ 204

Earnings per share .................................................................... $ 1.76 $ 2.06

Earnings per share .................................................................... $ 1.71 $ 1.99

A3


Condensed Consolidated Balance Sheets
As of
December 31,
(Dollars in millions)

2006 2005
(Unaudited)

Assets

Current assets:
Cash and cash equivalents ................................................................ $ 578 $ 659
Marketable securities ................................................................ 11 17
Accounts receivable — net ................................................................ 2,049 1,948
Inventories.......................................................................................... 768 702
Prepaid expenses .............................................................................. 60 73
Deferred income taxes ................................................................ 210 200
Total current assets ................................................................................ 3,676 3,599
Property, plant and equipment — net ....................................................... 2,714 2,538
Goodwill ................................................................................................ 2,275 2,293
Intangible assets — net ................................................................ 738 769
Prepaid pension cost .............................................................................. 979 222
Deferred income taxes................................................................ 91 100
Other assets ........................................................................................... 660 709
Total assets......................................................................................... 11,133
$ $ 10,230

Liabilities, Minority Interests and Stockholders’ Equity

Current liabilities:
Short-term debt..................................................................................
$ 69 $ 98
Current portion of long-term debt ...................................................... 101 37
Trade accounts payable ................................................................ 1,977 1,865
Accrued compensation ................................................................ 271 280
Income taxes ..................................................................................... 259 271
Other current liabilities................................................................ 998 1,039
Total current liabilities ............................................................................. 3,675 3,590
Long-term debt ....................................................................................... 2,862 3,101
Post-retirement benefits other than pensions ................................ 645 917
Pension benefits ..................................................................................... 722 795
Deferred income taxes................................................................ 428 230
Other long-term liabilities ................................................................ 295 283
Total liabilities ..................................................................................... 8,627 8,916
Minority interests..................................................................................... 109 106
Commitments and contingencies
Stockholders’ equity:
Capital stock ...................................................................................... 1 1
Treasury stock ................................................................................... — —
Paid-in-capital .................................................................................... 1,125 1,142
Retained earnings.............................................................................. 308 132
Accumulated other comprehensive earnings (losses) ........................ 963 (67)
Total stockholders’ equity ................................................................ 2,397 1,208
Total liabilities, minority interests, and stockholders’ equity................ 11,133 $ $ 10,230

A4


Condensed Consolidated Statements of Cash Flows

Years Ended
December 31,
2006 2005
(Unaudited)

Operating Activities
Net earnings ................................................................................................ 176
$ $ 204
Adjustments to reconcile net earnings to net cash provided by
operating activities:
Depreciation and amortization ................................................................ 517 509
Pension and other post-retirement benefits, net of contributions .......................... (193) (157)
Loss on retirement of debt ................................................................ 57 7
Other — net ................................................................................................ 45 40
Changes in assets and liabilities, net of effects of businesses
acquired ......................................................................................... 47 (101)
Net cash provided by operating activities ...................................................... 649 502

Investing Activities
Capital expenditures including other intangibles ................................ (529) (503)
Acquisitions, net of cash acquired and transaction fees................................ (13) (134)
Purchase price adjustments and related settlements................................ (13) 2
Net proceeds from asset sales and divestitures................................ 97 4
Investments in affiliates .................................................................................... (1) (8)
Net cash used in investing activities................................................................ (459) (639)

Financing Activities
Change in short-term debt................................................................ (40) 9
Proceeds from issuance of long-term debt........................................................37 1,635
Redemption of long-term debt ................................................................ (304) (1,603)
Debt issue costs ................................................................................................ — (6)
Issuance of capital stock, net of fees................................................................153 143
Repurchase of capital stock ................................................................ (209) (143)
Proceeds from exercise of stock options...........................................................23 3
Net cash (used in) provided by financing activities ................................ (340) 38
Effect of exchange rate changes on cash .........................................................69 (32)
Decrease in cash and cash equivalents ............................................................ (81) (131)
Cash and cash equivalents at beginning of period................................ 659 790
Cash and cash equivalents at end of period ..................................................... $ 578 $ 659

A5


Reconciliation of GAAP Net Earnings to EBITDA
(Unaudited)

The reconciliation schedule below should be read in conjunction with the TRW Automotive Holdings Corp.
Form 10-K for the year ended December 31, 2005 and Forms 10-Q for the quarterly periods ended March
31, 2006 and June 30, 2006, and September 29, 2006, which contain summary historical data.

The EBITDA measure calculated in the following schedule is a measure used by management to
evaluate operating performance. Management believes that EBITDA is a useful measurement because it
is frequently used by securities analysts, institutional investors and other interested parties in the
evaluation of companies in our industry.

EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net earnings
(losses) as an indicator of operating performance, or to cash flows from operating activities as a measure
of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow for management’s
discretionary use, as it does not consider certain cash requirements such as interest payments, tax
payments and debt service requirements. Because not all companies use identical calculations, this
presentation of EBITDA may not be comparable to other similarly titled measures of other companies.

Three Months Ended
December 31,
2006 2005
GAAP net earnings......................................................... $ 33 $ 59
Income tax expense ................................................. 32 22
Interest expense — net ............................................ 65 57
Accounts receivable securitization costs .................. 1 1
Depreciation and amortization.................................. 136 129

EBITDA .......................................................................... $ 267 $ 268

Years Ended
December 31,
2006 2005
GAAP net earnings ........................................................ $ 176 $ 204
Income tax expense ................................................. 166 124
Interest expense — net ............................................ 247 228
Loss on retirement of debt ....................................... 57 7
Accounts receivable securitization costs.................. 3 3
Depreciation and amortization ................................. 517 509

EBITDA .......................................................................... $ 1,166 $ 1,075

A6


Reconciliation of GAAP Net Earnings to Adjusted Earnings
(Unaudited)

In conjunction with the Company’s February 2, 2006 repurchase of its subsidiary Lucas Industries
Limited’s £94.6 million 10⅞% bonds due 2020 for £137 million, or approximately $243 million, the
Company recorded a loss on retirement of debt of £32 million, or approximately $57 million.

The following reconciliation excludes the loss on retirement of debt and the related tax impact.

Year Ended Year Ended
December 31, December 31,
2006 2006
Actual Adjustments Adjusted

Sales................................................................ $ 13,144 $ — $ 13,144
Cost of sales ................................................................
11,943 — 11,943
Gross profit ................................................................
1,201 — 1,201
Administrative and selling expenses ............................. 527 — 527
Amortization of intangible assets................................ 35 — 35
Restructuring charges and asset
impairments ................................................................ 30 — 30
Other income — net ...................................................... (27) — (27)
Operating income ...................................................... 636 — 636
Interest expense, net ..................................................... 247 — 247
(a)
Loss on retirement of debt................................ 57 (57) —
Account receivable securitization costs......................... 3 — 3
Equity in earnings of affiliates, net of tax....................... (26) — (26)
Minority interest, net of tax ................................ 13 — 13
Earnings before income taxes ................................ 342 57 399
(b)
Income tax expense ..................................................... 166 17 183

Net earnings ............................................................. 176
$ $ 40 $ 216

Effective tax rate ............................................................ 49% 46%

Earnings per share ...................................................... 1.76
$ $ 2.16
Weighted average shares................................ 100.0 100.0

Earnings per share ...................................................... 1.71
$ $ 2.10

Weighted average shares................................ 103.1 103.1

(a) Reflects the elimination of the loss on retirement of debt.
(b) Represents the elimination of the tax benefit related to the loss on retirement of debt, which was recognized during the
quarter ended December 31, 2006.

A7


(Unaudited)
Administrative and selling expenses for the three months ended December 31, 2005 included an adjustment for a
reduction in litigation-related reserves of approximately $18 million. Such adjustment carries zero tax expense due
to the Company’s tax loss position.

The following adjustments exclude the litigation reserve adjustment to show the impact as if this adjustment had
not occurred.

Three Months Three Months
Ended ended
2005 2005
Sales ......................................................................................
$ 3,136 $ — $ 3,136
Cost of Sales ................................................................ 2,856 — 2,856
Gross profit ................................................................ 280 — 280
(a)
Administrative and selling expenses................................ 93 18 111
Amortization of intangible assets ................................ 9 — 9
Restructuring charges and asset impairments........................51 — 51
Other income — net ............................................................... (6) — (6)
Operating income ...............................................................
133 (18) 115
Interest expense, net ..............................................................57 — 57
Account receivable securitization ................................ 1 — 1
Equity in earnings of affiliates, net of tax ................................ (8) — (8)
Minority interest, net of tax...................................................... 2 — 2
Earnings before income taxes ................................ 81 (18) 63
Income tax expense ..............................................................22 — 22

Net earnings ................................................................
$ 59 $ (18) $ 41

Effective tax rate................................................................ 27% 35%

Earnings per share ...............................................................
$ 0.59 $ 0.41
Weighted average shares.....................................................
99.2 99.2

$ 0.57 $ 0.40
Weighted average shares.....................................................
102.9 102.9

(a) Reflects the elimination of the litigation reserve adjustment.

A8


(Unaudited)
In conjunction with the Company’s May 3, 2005 repurchase of approximately €48 million principal amount of its
10⅛% Senior Notes, the Company incurred $7 million of losses on retirement of debt consisting of $6 million of
related redemption premium and $1 million for write-off of deferred debt issuance costs. Such debt retirement
expenses carry zero tax benefit due to the Company’s tax loss position.

Income tax expense for the year ended December 31, 2005 includes a one-time benefit of $17 million resulting
from a tax law change in Poland related to investment tax credits for companies operating in certain special
economic zones within the country. The investment tax credits replace the tax holiday that was previously in effect
for the Company.

Administrative and selling expenses for the year ended December 31, 2005 included an adjustment for a reduction
in litigation-related reserves of approximately $18 million. Such adjustment carries zero tax expense due to the
Company’s tax loss position.

The following adjustments exclude the litigation reserve adjustment and the loss on retirement of debt, as well as
the one-time income tax benefit, to show the impact as if these transactions had not occurred.

Year Ended Year Ended
2005 2005
Sales ......................................................................................
$ 12,643 $ — $ 12,643
Cost of Sales ................................................................ 11,444 — 11,444
Gross profit ................................................................ 1,199 — 1,199
(a)
Administrative and selling expenses................................ 490 18 508
Amortization of intangible assets ................................ 33 — 33
Restructuring charges and asset impairments........................ 109 — 109
Other income — net ...............................................................14 — 14
Operating income ............................................................... 553 (18) 535
Interest expense, net .............................................................. 228 — 228
(b)
Loss on retirement of debt ...................................................... 7 (7) —
Account receivable securitization ................................ 3 — 3
Equity in earnings of affiliates, net of tax ................................ (20) — (20)
Minority interest, net of tax...................................................... 7 — 7
Earnings before income taxes ................................ 328 (11) 317
(c)
Income tax expense .............................................................. 124 17 141

Net earnings ................................................................
$ 204 $ (28) $ 176

Effective tax rate................................................................ 38% 44%

$ 2.06 $ 1.78
Weighted average shares..................................................... 99.1 99.1

$ 1.99 $ 1.72
Weighted average shares..................................................... 102.3 102.3

(a) Reflects the elimination of the litigation reserve adjustment.
(b) Reflects the elimination of the loss on retirement of debt incurred in conjunction with repurchase of a portion of the
Company’s 10⅛% Senior Notes.
(c) Reflects the elimination of one-time income tax benefit related to a tax law change in Poland.

A9

Fourth Quarter and Full Year
2006 Financial Results
Presentation

February 22, 2007
February 22, 2007


Introduction
Patrick Stobb
Director, Investor Relations

Business Summary
John C. Plant
President and
Chief Executive Officer

P2 © TRW Automotive Holdings Corp. 2007

Safe Harbor Statement

This presentation contains statements that are not statements of historical fact, but instead
are forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995. All forward-looking statements involve risks and uncertainties. Our actual
results could differ materially from those contained in forward-looking statements made in
this presentation. Such risks, uncertainties and other important factors which could cause
our actual results to differ materially from those contained in our forward-looking statements
are set forth in our Report on Form 10-K for the fiscal year ended December 31, 2005 (the
“10-K”), and our Forms 10-Q for the quarters ended March 31, June 30 and September 29,
2006, and include: production cuts or restructuring by our major customers; work stoppages
or other labor issues at the facilities of our customers or suppliers; non-performance by, or
insolvency of, our suppliers and customers, which may be exacerbated by recent
bankruptcies and other pressures within the automotive industry; the inability of our suppliers
to deliver products at the scheduled rate and disruptions arising in connection therewith;
interest rate risk arising from our variable rate indebtedness (which constitutes a majority of
the company’s indebtedness); loss of market share by domestic vehicle manufacturers;
efforts by our customers to consolidate their supply base; severe inflationary pressures
impacting the market for commodities; escalating pricing pressures from our customers; our
dependence on our largest customers; fluctuations in foreign exchange rates; our substantial
leverage; product liability and warranty and recall claims and efforts by customers to alter
terms and conditions concerning warranty and recall participation; limitations on flexibility in
operating our business contained in our debt agreements; the possibility that our owners'
interests will conflict with ours and other risks and uncertainties set forth under quot;Risk
Factorsquot; in the 10-K and in our other SEC filings. We do not intend or assume any obligation
to update any of these forward-looking statements.


Summary Comments

• Posted solid and improved 2006 operating results – Company
performed remarkably well in a very difficult industry environment.
• Success can be attributed to: TRW’S PERFORMANCE IN THIS
TRW’S PERFORMANCE IN THIS
ENVIRONMENT FURTHER
ENVIRONMENT FURTHER
– Leadership in safety
EMPHASIZES ITS COMPETITIVE
EMPHASIZES ITS COMPETITIVE
– Industry leading diversification
STRENGTHS
STRENGTHS
– Investment in technology
– Cost improvement and efficiency efforts
• North American environment extremely challenging, highlighted by:
– Big 3 market share losses and the unprecedented cuts in vehicle
production which have cascaded inefficiency to all levels of the supply
base
– Continued commodity inflation and supplier insolvency pressures
– Mix shift away from higher value SUVs and light trucks to passenger
vehicles


“Moving the Company Forward”

SOLID 2006 FINANCIAL & OPERATING PERFORMANCE =
SOLID 2006 FINANCIAL & OPERATING PERFORMANCE =

Financial Operations FAS 158 / Capital

• • •
Record sales at $13.1 High level of restructuring Actions to curtail pension
billion, an increase of 4% underway with 17 plant and postretirement
compared to the prior year. closures announced since liabilities reduced prior
January 2005. service costs by $235
• Operating cash flow of $649 million, which is reflected
• Operations contained
million. in FAS 158 equity increase
costs despite growing unit of $805 million.
• production and sales.
Net debt at year-end down
•
$117 million to $2.4 billion.(a) Eliminated Northrop’s
• Successfully integrated ownership position
Dalphimetal.
• Achieved net new business through the repurchase of
targets at a level that 9.7 million shares.
• Invested over $1 billion to
supports 4% CAGR growth support engineering efforts • Public offering of 6.7
expectation. and capital needs. million shares and reduced
shares outstanding by 3
million.

MEASURABLE BUSINESS IMPROVEMENT
MEASURABLE BUSINESS IMPROVEMENT
(a) Net debt is equal to total indebtedness (including receivables facility) minus cash, cash equivalents and marketable securities. For net
debt reconciliation to closest GAAP equivalent, please refer to the reconciliation on slide P22 of this presentation.


2006 Financial Highlights
Fourth Quarter
Fourth Quarter
• Sales of $3.3 billion, an increase of $136 million or 4.3% over the
prior year period:
+ Foreign currency translation
–
+ Dalphimetal
–
+ New product sales
–
-
– North American industry production
-
– Customer pricing
• GAAP net earnings of $33 million or $0.32 per diluted share
• Net earnings excluding $17 million tax benefit were $16 million or
$0.16 per diluted share(a)

Full Year
Full Year
• Sales of $13.1 billion, an increase of 4% over the prior year period
• GAAP net earnings of $176 million or $1.71 per diluted share, which
includes $40 million after-tax of debt retirement expenses
• Net earnings excluding debt retirement expenses were $216 million
or $2.10 per diluted share(b)
(a) For Q4 adjusted results comparison, please see slide P12.
(b) For full year adjusted results comparison, please see slide P14.


Succeeding in Today’s Global Environment

• The challenges facing the parts industry are significant due to:
– Intense market share competition among vehicle manufacturers in
established markets, especially in North America
– Rapid globalization straining resources
– Cost pressures from commodity inflation and supplier/customer
insolvency issues
• TRW has been very active countering the impact of these significant
industry pressures:
– Extensive plant restructuring (17 plant closures announced)
– Successful operating programs (Operational Excellence, Six Sigma)
– Improved productivity and worker flexibility at existing facilities
– Rationalized non-manufacturing costs (Pension and postretirement
curtailment actions)


2007 Operating Environment
2007 Industry Production Assumptions(1)
(units in millions)
• North American vehicle production
expected to increase slightly despite a
15.9
’03 4% reduction in Big 3 production (will
15.8
‘04 negatively impact 2007 sales due to
North
North 15.8
customer exposure).
‘05
America
America
15.3
‘06
• First half 2007 Big 3 vehicle production
15.4
‘07
in North American expected to be down
approximately 9.5%.
11.9
’03
• North American commercial vehicle
11.4
‘04 Big 3
Big 3
10.9 sales expected to drop significantly.
North
‘05 North
America
10.2 America
‘06
• In Europe, vehicle production expected
9.8
‘07
to increase less than 1%, primarily due
to Eastern Europe (Western Europe
19.2
’03
expected to be down).
20.2
‘04
• Persistent commodity inflation and
19.9
Europe
Europe
‘05
supplier issues expected to further
20.4
‘06
pressure the cost base.
20.5
‘07

(1) Source: Light vehicle assumptions primarily CSM Worldwide and internal company estimates.


2007 Full Year Outlook

• Expect sales in the range of $13.4 to $13.8 billion
• Net earnings per diluted share of $1.85 to $2.15(1)
• Restructuring expenses (pre-tax) of approximately $40
million
• Capital spending expected to run at approximately 4% of
2007 sales
• Effective tax rate of approximately 42%

(1) Per share amounts based on weighted average diluted shares outstanding of approximately 101.5 million shares.


Financial Overview
Joseph S. Cantie
Executive Vice President
and Chief Financial Officer


Summary Comments

• Fourth quarter results better than anticipated – able to overcome
industry and company specific challenges:
– Dramatic decline in Big 3 North American production
– Commodity inflation
– Supplier related costs
– Negative Automotive Components performance
• Impressive 2006 company scorecard, highlighted by:
– Record sales
– Operating earnings growth
– Net debt reduction

SOLID 2006 PERFORMANCE – DEMONSTRATING ANOTHER YEAR
SOLID 2006 PERFORMANCE – DEMONSTRATING ANOTHER YEAR
OF RESILIENCY AND PROGRESS
OF RESILIENCY AND PROGRESS


Fourth Quarter Results

(dollars in millions, except where noted)
Q4 2006 Q4 2005
GAAP Adjusting Adjusted GAAP Adjusting Adjusted
Results Item Results Results Item Results

Sales $ 3,272 $ - $ 3,272 $ 3,136 $ - $ 3,136

(18)(b)
Operating Income 126 - 126 133 115

Net Interest and Securitization 66 - 66 58 - 58

Equity in Earnings of Affiliates (7) - (7) (8) - (8)

Minority Interest 2 - 2 2 - 2
(a)
Income Taxes 32 17 49 22 - 22
Effective Tax Rate 49% 75% 27% 35%

Net Earnings $ 33 $ (17) $ 16 $ 59 $ (18) $ 41
Share Count 101.9 101.9 102.9 102.9

Earnings Per Share $ 0.32 $ 0.16 $ 0.57 $ 0.40

(a) $17 million tax benefit associated with Lucas bond tender transaction (completed February 2006).
(b) $18 million one-time reduction in litigation reserves.


Fourth Quarter EBITDA

(dollars in millions)

Q4 2006 Q4 2005

Net Earnings $ 33 $ 59

Income Tax Expense 32 22

Net Interest and Securitization 66 58
Depreciation and Amortization 136 129
EBITDA(a) $ 267 $ 268

Memo:
Restructuring & Asset
Impairments Included Above $ 8 $ 51

(a) Please refer to slide P21 for management’s rationale for using this metric.


Full Year 2006 Results

Full Year 2006 Full Year 2005
GAAP Adjusting Adjusted GAAP Adjusting Adjusted
Results Item Results Results Items Results

Sales $ 13,144 $ - $ 13,144 $ 12,643 $ - $ 12,643

(18)(b)
636 - 636 553 535
Operating Income

250 250 231 - 231
Net Interest and Securitization
(a)
(7)(c)
Loss on Retirement of Debt 57 (57) - 7 -

(26) - (26) (20) - (20)
Equity in Earnings of Affiliates

13 - 13 7 - 7
Minority Interest
(a) (d)
183 124 17 141
166 17
Income Taxes
Effective Tax Rate 49% 46% 38% 44%
(a)
Net Earnings (Losses) $ 176 $ 40 $ 216 $ 204 $ (28) $ 176
Share Count 103.1 103.1 102.3 102.3

$ 1.71 $ 2.10 $ 1.99 $ 1.72
Earnings Per Share

(a) $57 million ($40 million after-tax) loss on retirement of debt associated with the Lucas bond tender transaction.
(b) $18 million one-time reduction in litigation reserves.
(c) $7 million premiums and fees related to a bond redemption transaction.
(d) $17 million one-time tax benefit for a tax law change in Poland.


Full Year 2006 EBITDA


Full Year 2006 Full Year 2005

Net Earnings $ 176 $ 204

Income Tax Expense 166 124

Net Interest and Securitization 250 231

Loss on Retirement of Debt 57 7
Depreciation and Amortization 517 509
EBITDA(a) $ 1,166 $ 1,075

Memo:
Restructuring & Asset
Impairments Included Above $ 30 $ 109

(a) Please refer to slide P21 for management’s rationale for using this metric.


Capital Structure Summary

Net Debt Summary (a)
Dalphimetal acquisition
increased net debt by
$244 million

$3,437
$2,964 $2,669
$2,514 $2,443
$2,372 $2,560

Feb 28, 2003 Dec 31, 2003 Dec 31, 2004 Sep 30, 2005 Dec 31, 2005 Sep 29, 2006 Dec 31, 2006

• Full year 2006 net cash flow from operating activities was $649 million, which
compares to $502 million in the prior year period.
• Capital expenditures in 2006 were $529 million, which compares to $503 million
in the prior year period.
• In excess of $1 billion in available liquidity at year-end.

(a) Net debt is equal to total indebtedness (including receivables facility) minus cash, cash equivalents and marketable securities. For net debt
reconciliation to closest GAAP equivalent, please refer to the reconciliation on slide P22 of this presentation.


SFAS No. 158 Adoption

• On December 31, 2006, the Company adopted SFAS No. 158 (Employers’
Accounting for Defined Benefit Pension and Postretirement Plans”):
– Requires the recognition of the Company’s funded status of its pension and
postretirement plans on its consolidated balance sheet.
• The net impact of adopting SFAS No. 158 increased total stockholders’
equity by $805 million, which reflects previously unrecognized:
– Actuarial gains
– Prior service cost reductions of approximately $235 million related to
corporate actions that significantly reduced pension and postretirement
obligations.

• Primarily as a result of this 2006 2005
change, debt to total capital (debt Debt $ 3,032 $ 3,236
divided by the sum of debt plus
Equity 2,397 1,208
equity) improved measurably.
Total Capital $ 5,429 $ 4,444
Debt to Capital Ratio 56% 73%


Closing Summary

• Assumptions Underlying 2007 sales expectations:
+ Foreign currency translation
–
+ Increased European and Asian vehicle production, as well as new
–
business (mix favors modules)
-
– Lower North American Big 3 vehicle production
-
– Pricing provided to customers
-
– Decline in commercial vehicle production
• Limited operating profit benefit from currency translation (due to
cross-rate exposures) and increased module sales (lower margin)
• Expect first quarter sales of $3.5 billion based on industry
production of 3.9 million units in North America and 5.2 million units
in Europe.

INVESTING TO ENSURE BUSINESS GROWTH AND TO REMAIN
INVESTING TO ENSURE BUSINESS GROWTH AND TO REMAIN
GLOBALLY COMPETITIVE IN THE FUTURE
GLOBALLY COMPETITIVE IN THE FUTURE



“Driving Automotive Safety”

Financial
Reconciliation Section


EBITDA Measurement
• The accompanying unaudited consolidated financial information and reconciliation of GAAP net
earnings to earnings before interest, income tax, accounts receivable securitization cost, loss
on retirement of debt, and depreciation and amortization (“EBITDA”) should be read in
conjunction with the TRW Automotive Holdings Corp. Form 10-K for the year ended December
31, 2005, and Forms 10-Q for the quarters ended March 31, June 30 and September 29, 2006, as
filed with the United States Securities and Exchange Commission.

• The EBITDA measure calculated in this presentation is a measure used by management to
evaluate operating performance. Management believes that EBITDA is a useful measurement
because it is frequently used by securities analysts, institutional investors and other interested
parties in the evaluation of companies in our industry.

• EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net
earnings (losses) as an indicator of operating performance, or to cash flows from operating
activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free
cash flow for management’s discretionary use, as it does not consider certain cash
requirements such as interest payments, tax payments and debt service requirements.
Because not all companies use identical calculations, our presentation of EBITDA may not be
comparable to other similarly titled measures of other companies.


Net Debt Reconciliation

(dollars in millions) Period-End Balances
2/28/03 12/31/03 12/31/04 4/1/05 7/1/05 9/30/05 12/31/05 3/31/06 6/30/06 9/29/06 12/31/06
Cash $ 449 $ 828 $ 790 $ 435 $ 506 $ 300 $ 659 $ 373 $ 503 $ 358 $ 578
Marketable securities 26 16 19 16 13 17 17 17 17 11 11
Total 475 844 809 451 519 317 676 390 520 369 589
Short term debt 168 76 40 38 37 38 98 98 83 81 69
Long term debt:
Term loan facilities 1,510 1,480 1,512 1,298 1,296 1,293 1,593 1,588 1,585 1,585 1,582
Senior notes 1,142 1,178 1,063 1,042 981 972 964 960 959 975 982
Senior subordinated notes 435 458 306 300 293 293 291 294 298 298 302
Lucas Varity senior notes 167 189 202 198 187 186 181 - - - -
45 58 54 51 49 109 106 110 99 97
Other borrowings 142
Total Short & Long Term Debt 3,564 3,426 3,181 2,930 2,845 2,831 3,236 3,046 3,035 3,038 3,032
Net debt operating company $ 3,089 $ 2,582 $ 2,372 $ 2,479 $ 2,326 $ 2,514 $ 2,560 $ 2,656 $ 2,515 $ 2,669 $ 2,443
Seller note 348 382 - - - - - - - - -
Net debt TRW Holdings $ 3,437 $ 2,964 $ 2,372 $ 2,479 $ 2,326 $ 2,514 $ 2,560 $ 2,656 $ 2,515 $ 2,669 $ 2,443


2006 Q4 TRW Auto Earnings Presentation

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