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    Third-Quarter 2006 Results,
 Fourth-Quarter 2006 Guidance and
   a Preliminary Outlook for 2007


                  October 26, 2006


                                     fast forward
advance relentlessly
                                                    1
Agenda


    Recent Events
         Bob Rossiter, Chairman and CEO
    –
    Financial Review
         Jim Vandenberghe, Vice Chairman and CFO
    –
    Strategy Update and Key Operating Targets
         Doug DelGrosso, President and COO
    –
    Summary and Outlook
         Bob Rossiter, Chairman and CEO
    –
    Q and A Session


                                                   2
Recent Events*

Strategic Developments
   Closed transaction whereby Lear contributed substantially all of
   its European Interior business to joint venture in return for a one-
   third equity stake
   Continued to make progress on new strategy for North American
   Interior business
   Agreed to $200 million equity offering to increase flexibility

Operating Developments
  Industry production environment in N.A. very challenging
  Continued to win new business with Asian manufacturers
  Introduced new products, including the industry’s first solid-state
  Smart Junction Box technology

                                                                                                                  3
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Financial Review



                   4
Recent Events
Update on Interior Business

       Contributed substantially all of Lear’s European Interior
       business to International Automotive Components Group,
       LLC in return for a one-third equity stake:
        – Creates a large [20 manufacturing facilities in 9 countries,
          with $1.2 billion in annual sales] and well capitalized
          enterprise
        – Solid platform for improving ongoing operating efficiency
          and financial performance
       Continuing to work toward a new strategy for Lear’s North
       American Interior business

     Working Toward Definitive New Strategic Direction
     For North American Interior Business By Year End
                                                                                                                   5
 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Recent Events
Equity Offering*

         Lear agreed to issue $200 million of common stock to
         affiliates of Carl Icahn in a private placement
         Proceeds to be used for strategic investments in the
         Company’s core businesses and to increase financial and
         operating flexibility
         Lear looks forward to working with Icahn to increase value
         for all Lear shareholders
         Icahn representative will join Lear’s Board of Directors
         when transaction closes (expected timing about 45 days)
         Lear’s shares outstanding will increase by 8.7 million


                                                                                                                  6
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Third Quarter 2006
Industry Environment
                                        Third Quarter      Third Quarter
                                            2006           2006 vs. 2005

 North American Production
  Industry                                      3.4 mil         Down 9%
  Big Three                                     2.2 mil        Down 13%
  Lear's Top 15 Platforms                       1.1 mil        Down 14%

 European Production
  Industry                                      4.2 mil         Down 2%
  Lear's Top 5 Customers                        2.0 mil         Down 3%

 Key Commodities (Quarterly Average)   vs. Prior Quarter
  Steel (Hot Rolled)                             Up 4%           Up 23%
  Resins (Polypropylene)                        Up 4%            Up 24%
  Copper                                       Up 12%           Up 106%
  Crude Oil                                        flat          Up 11%


                                                                           7
Third Quarter 2006
Financial Summary**
                                                                  Third                    Third                   3Q '06
 (in millions, except net loss per share)                      Quarter 2006             Quarter 2005            B/(W) 3Q '05

                                                                 $4,069.7                 $3,986.6                   $83.1
 Net Sales

 Income (Loss) Before Interest, Other Expense
                                                                    $28.8                  ($726.3)                 $755.1
 and Income Taxes*

                                                                       0.7 %                    NM                      NM
 Margin

                                                                  ($65.9)                  ($787.8)                 $721.9
 Pretax Loss

                                                                  ($74.0)                  ($750.1)                 $676.1
 Net Loss*

                                                                  ($1.10)                  ($11.17)                 $10.07
 Net Loss Per Share

                                                                       3.9 %                                          (0.3) pts.
                                                                                                 3.6 %
 SG&A % of Net Sales

                                                                    $56.6                                           ($11.5)
                                                                                              $45.1
 Interest Expense

                                                                    $98.1                                              $1.5
                                                                                              $99.6
 Depreciation / Amortization

                                                                    $38.1                     $16.4                 ($21.7)
 Other Expense, Net

*  Third quarter 2006 tax provision was $8.1 million. This included a non-recurring tax benefit of $19.9 million related to
   restructuring actions, the loss on the divestiture of the European Interior business and a one-time tax benefit.
                                                                                                                                   8
** Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
Third Quarter 2006
Restructuring and Special Items*

                                                                   Third Quarter

                                                                                                                 Memo:


                                                           Income Before
                                                           Interest, Other
                                                            Expense and
(in millions)                                              Income Taxes          Pretax Loss         Income Statement Category

                                                                                                                             Other
                                                                                                                            Expense
                                                                                                   COGS          SG&A


                                                       $               28.8      $      (65.9)
2006 Reported Results

Reported results include the following items:

                                                       $               17.4      $       17.4     $ 16.1          $ 1.3
 Costs related to Global Restructuring Actions                                                                                 -


 Loss on Divestiture of
                                                                             -           28.7          -                    $ 28.7
                                                                                                                        -
  European Interior Business


                                                                                 $      (19.8)
2006 Core Operating Results                            $               46.2
2005 Core Operating Results                            $               47.9      $      (10.1)



                                                                                                                                   9
 *   Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
Third Quarter 2006
Net Sales Changes and Margin Impact Versus Prior Year
                                 Net Sales       Margin
      Performance Factor         Change          Impact                    Comments
                                 (in millions)


  Industry Production /          $     (366)     Negative   Primarily lower industry production in
  Platform Mix / Net Pricing /                              North America (down 9%) and
  Other                                                     unfavorable platform mix (lower pickups
                                                            in N.A.)

  Global New Business                    362     Positive   GM large SUVs, Lucerne, Fusion / Milan
                                                            / Zephyr, Santa Fe, Peugeot 207, Punto



  F/X Translation                          87    Neutral    Euro up 4%, Canadian dollar up 7%


  Commodity / Raw Material                       Negative   Unfavorable year over year increases--
                                                            hot rolled steel up 23%, polypropylene up
                                                            24%, copper up 106%


  Performance                                    Positive   Favorable operating performance in core
                                                            businesses, including benefits from
                                                            restructuring actions                   10
Third Quarter and Nine Months 2006
Business Segment Results***
                                                                     Third Quarter                                                    Nine Months
     ($ in millions)
                                                                2006           2005                                              2006          2005
       Seating
             Net Sales                                      $    2,633.0                 $      2,564.3                      $     8,721.6                $ 8,192.9
             Segment Earnings*                              $      125.6                 $         71.2                      $       423.0                $   169.9
                       % of Sales                                    4.8 %                          2.8 %                              4.9 %                    2.1 %
             Adjusted % of Sales**                                   5.1 %                          3.0 %                              5.2 %                    2.7 %


       Electronic and Electrical
             Net Sales                                      $       682.6                $        690.9                      $     2,257.6                $ 2,237.8
             Segment Earnings*                              $        16.4                $         35.3                      $       107.6                $   145.9
                       % of Sales                                     2.4 %                         5.1 %                              4.8 %                    6.5          %
             Adjusted % of Sales**                                    3.4 %                         6.5 %                              5.7 %                    7.4          %
       Interior
              Net Sales                                     $       754.1                $        731.4                      $     2,579.2                $ 2,261.2
              Segment Earnings*                             $       (55.8)               $       (112.6)                     $      (149.6)               $ (138.8)
                        % of Sales                                   (7.4) %                      (15.4) %                            (5.8) %                  (6.1) %
                                                                                                                                      (5.0) %                  (2.1) %
              Adjusted % of Sales**                                  (7.1) %                       (3.3) %


*     Segment earnings represent income (loss) before goodwill impairment charge, interest, other expense and income taxes. Income (loss) before goodwill impairment
      charge, interest, other expense and income taxes for the Company was $28.8 million and $(56.3) million for the three months ended 9/30/06 and 10/01/05, respectively,
      and $196.2 million and $22.5 million for the nine months ended 9/30/06 and 10/01/05, respectively.
**    Adjusted % of sales excludes impairments, restructuring costs and other special items of $16.8 million (Seating - $7.8, Electronic and Electrical - $7.1, Interior - $1.9)
      and $103.9 million (Seating - $5.5, Electronic and Electrical - $9.7, Interior - $88.7) for the three months ended 9/30/06 and 10/01/05, respectively, and $69.7 million
      (Seating - $27.8, Electronic and Electrical - $22.0, Interior - $19.9) and $162.4 million (Seating - $50.6, Electronic and Electrical - $19.9, Interior - $91.9) for the nine
      months ended 09/30/06 and 10/01/05, respectively.
                                                                                                                                                                                      11
*** Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
Third Quarter and Nine Months 2006
Free Cash Flow*

         (in millions)

                                                                      Third                       Nine
                                                                     Quarter                     Months
                                                                      2006                        2006
               Net Loss                                             $      (74.0)               $      (62.5)
               Depreciation / Amortization                                   98.1                      299.4
               Working Capital / Other                                       11.5                    (107.1)
               Cash from Operations                                  $       35.6                $     129.8

               Capital Expenditures                                        (83.8)                    (268.5)

                                                                    $      (48.2)               $    (138.7)
               Free Cash Flow



* Free Cash Flow represents net cash provided by (used in) operating activities (($8.1) million for the three months and $106.1
  million for the nine months ended 9/30/06) before net change in sold accounts receivable ($43.7 million for the three months and
  $23.7 million for the nine months ended 9/30/06), less capital expenditures. Please see slides titled “Non-GAAP Financial
  Information” at the end of this presentation for further information.
                                                                                                                               12
Fourth Quarter 2006 Guidance
Key Assumptions*

                                                           Fourth Quarter                           Change from
                                                           2006 Guidance                             Prior Year

    North American Production
     Total Industry                                                   ≈ 3.7 mil                              down 5%
     Big Three                                                        ≈ 2.4 mil                             down 12%
     Lear's Top 15 Platforms                                          ≈ 1.0 mil                             down 24%


    European Production
     Total Industry                                                   ≈ 4.7 mil                               down 1%
       Lear's Top 5 Customers                                         ≈ 2.4 mil                               down 2%
       Euro                                                     $1.28 / Euro                                      up 7%




                                                                                                                          13
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
2006 Guidance
Key Financial Projections***

      (Reflects Lear's investment in European                          Fourth Quarter 2006                   Full Year 2006
      Interiors joint venture on an equity basis)

                                                                       ≈ $ 4.1 billion                     ≈ $ 17.7 billion
      Net Sales

                                                                       $80 to $110 million                 $345 to 375 million
      Core Operating Earnings
         Incom e before interest, other expense,
         incom e taxes, im pairm ents, restructuring
         costs and other special item s

                                                                       $50 to $55 million                  $210 to $215 million
      Interest Expense
                                                                       $15 to $45 million                  $65 to $95 million
      Pretax Income
         before im pairm ents, restructuring costs
         and other special item s

                                                                       ≈ $40 million                       ≈ $90 million
      Estimated Tax Expense*
                                                                       $50 to $60 million                  $105 to $115 million
      Pretax Restructuring Costs
                                                                       $110 to $120 million                $380 to $390 million
      Capital Spending
                                                                       ≈ $140 million positive             about breakeven
      Free Cash Flow**

   * Subject to actual mix of financial results by country.
   ** Excludes potential payment of approximately $35 million related to settlement of prior litigation.

  *** Please see slides titled “Non-GAAP Financial Information” and “Forward-Looking Statements” at the end of this presentation for
                                                                                                                                       14
      further information.
2007 Outlook
Preliminary Assessment of Key Financials*

        Assuming an industry production environment that is roughly in line
        with 2006. . . we see the following preliminary outlook for 2007:
        Within our core Seating, Electronic and Electrical businesses:
          – Global new business of about $800 million,
          – Seating margins continue to improve to the mid-5% level,
            excluding restructuring costs and other special items,
          – Electronic and Electrical margins improve during the course of the
            year to the 5.5% to 6% range, also excluding restructuring costs
            and other special items
          – Capital spending is expected to be in the range of $250 to $280
            million, and
          – Free cash flow turns solidly positive.

 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.   15
Strategy Update and Key
   Operating Targets



                          16
Where Lear Needs To Be . . .
And Our Strategy To Get There*



                                                                                         High-Performance
                               Strategic Direction                                            Company
                                                                                        Consistently Delivering
                                                                                         “Profitable Growth”


          Market Leadership
          Expand Market Boundaries
          Maintain Efficient / Competitive Operations
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.   17
Key Operating Targets**

      Achieve global sales growth (about 5% annually) and
      further diversify sales (target is to grow total Asian sales*
      about 25% annually)

      Continuous improvement in quality and customer satisfaction

      Core Dimension Strategy – product focus; emphasis on technology

      Put in place a new, sustainable business model for Interior business

      Restore Seating margins to historical level (6.0% range)

      Improve Electronic and Electrical margins (7.5% range)

      Restore strong free cash flow levels, pay down debt and restore
      investment grade credit status
 * Total Asian sales target includes consolidated and non-consolidated sales.
 ** Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.   18
Global Strategy
For Sales Growth and Diversification*
North America
   Fully participate in fast-growing Crossover segment
   Expand emerging relationships with Hyundai, Nissan and Toyota
   Grow content per vehicle with new products and technology:
    – Safety-Related – IntelliTireTM, Pro-TecTM PLuS and Adaptive
       Front Lighting
    – Electronics – RKE Technology, Premium Audio/Visual, Home
       Automation
   Participate in Hybrid growth with high-voltage Electrical Systems

Europe and Rest of World
   Continue to invest and grow sales in China, India and Korea
   Accelerate growth with Asian automakers and Volkswagen
   Leverage existing relationships with Big Three and European
   automakers to grow in emerging markets
 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.   19
Examples of Emerging Asian Relationships*
                                                                                       Lear Relationship
                                         Product
     Customer
                                                                             Supply 100% of North American seating
                                                                     •
                                                                             Provide value-add technologies (e.g., TPMS)
                                                                     •
                                                                             Provide wiring harnesses through JV with a Korean partner
                                                                     •
                                                                             Leverage Lear’s quality reputation and global footprint to
                                                                     •
                                                                             support Hyundai’s quality reputation
                                                                             Rapid growth potential as a preferred global supplier
                                                                     •

                           Santa Fe -- Seating, IntelliTireTM

                                                                             Nissan evolving its sourcing strategy to global suppliers
                                                                     •
                                                                             Lear’s relationship with Tachi-S now encompasses three
                                                                     •
                                                                             JVs:
                                                                                – North America (Mt. Juliet, TN)
                                                                                – Europe (Sunderland, U.K.)
                                                                                – Asia (Guangzhou, China)
                                                                             Collectively, these operations will supply seven vehicle
                                                                     •
                                                                             lines for Nissan
                                                                             Additional JV opportunities with Tachi-S being developed
                                  Qashqai -- Seating,                •

                                 Electrical Distribution
                                                                             Expanding relationship with headliners, NVH, plastics and
                                                                         •
                                                                             seating by establishing new facilities alongside Toyota in
                                                                             North America and Europe
                                                                             Continued success on seating JV in N.A. (Sienna) and
                                                                         •
                                                                             interior programs (e.g., Tundra) provides opportunity on
                                                                             next new N.A. seat program
                           Tundra – Flooring & Acoustics,
                                    Interior Trim
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.                      20
Lear China
Business Profile*
                                                                                                                                     Lear WOFE
                                                                                                                                     L JV Plant
                                                                                                         Lear
                Lear in China                                                                         Changchun
                                                                                                             Seats
•   Headquarters: Shanghai
                                                                                                                     L
                                                                                                    Shenyang
•   Existing Facilities:
                                                                                                       Seats
      –Joint Ventures = 12 (13 JV Plants)
      –WOFE’s = 3 (Changchun, Cadillac, RHQ)
                                                                                                     LBeijing
•   New / Planned Facilities: 7 new facilities to                                                      Seats
                                                                   Chongqing
                                                                                         LShiyan
                                                                                Wuhan
    support Ford, SGM, Nissan, Mazda, Fiat and
                                                                                        L Seats
                                                        Seat, Carpet, Interiors L  W/H
    Chery
                                                                                L Seats L
                                                                                                                          Shanghai
                                                                          W/H
      –New in 2006 = STEC, Guangzhou                                                                   L                  LDoor
                                                                                               Nanjing
                                                                       (sub of
      –Planned for 2007 = Nanchang, Chongqing,                Wuhan W/H)                         Seat, W/H
                                                                                                                          LCarpet
        Nanjing (2) and Wuhu
                                                                                                                          LW/H, Switch (STEL)
                                                                                                                New
                                                                                                               in 2006
•   Engineering Centers: Seating and Electronics in                                                                      LearSeats
                                                                                               LNanchang
    Shanghai                                                                                                             Lear Regional HQ and
                                                                                                  Seat

•                                                                                                                             Engineering Centers
    Employees: 959 Salaried / 5,105 Hourly
                                                                                               New in 2006
•   Main Competitors:
                                                                                                         Guangzhou
                                                                                                  L
    Faurecia/Delphi/JCI/Visteon/3303 (owned by
                                                                                                                Seats
    Chinese military)
•   2006 Sales forecast: ≈ $550 million, including
    consolidated and non-consolidated sales

                    Lear China = 13 JV Plants (For 12 JVs)
                + 3 WOFE’s (Including Regional Headquarters)
                                                                                                                                                    21
        * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Lear China
Projected Sales Growth*
                                                                                                                                 Lear WOFE
                                                                                                                                   L JV Plant
                                                                                                       Lear
         Projected Sales Growth                                                                      Changchun
                                                                                                           Seats
 (in millions)
                                                                                                                   L
                                                                                                   Shenyang
                                                                                                     Seats



                                                                                                   LBeijing
                                                                                                     Seats
                                                                    Chongqing
                                                                                            LShiyan
                                                                                 Wuhan
                                      ≈ $750
                                                                                           L Seats
                                                           Seat, Carpet, Interiors L  W/H

                                                                                   L Seats L
                                                                                                                        Shanghai
                             ≈ $550                                          W/H
                                                                                                          L             LDoor
                                                                                                  Nanjing
                                                                          (sub of
                     $350                                       Wuhan W/H)                      Seat, W/H
                                                                                                                        LCarpet
           $225
  $150
                                                                                                                        LW/H, Switch (STEL)
                                                                                                              New
                                                                                                             in 2006
                                                                                                                       LearSeats
                                                                                              LNanchang                Lear Regional HQ and
                                                                                                 Seat
  2003     2004     2005      2006    2007      2010
                                                                                                                            Engineering Centers
                            Forecast Outlook   Target
  Note: Includes consolidated and non-consolidated sales                                     New in 2006

                                                                                                        Guangzhou
                                                                                                L             Seats




                                  Lear China’s Sales Are Projected
                                   To Grow About 30% Annually
                                                                                                                                                  22
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
New Asian Business Awards
During Third Quarter 2006*
           Automaker                   Market                               Lear Content                          Vehicle Program
                                       Europe                               Seating, Wire                         Future Crossover
           Nissan
                                                                            Harnesses, Smart
                                                                            Junction Box


                                       China                                Seating                               Transit Van
           Chery


                                       China                                Seating, Door Trim                    New MPV
           Changan

                                       North America                        ProTec Plus TM                        Pilot
           Honda

                                       China                                Wire Harnesses,                       Sedan Passenger Car
           DFM
                                                                            Smart Junction Box

                                       North America                        Interior Trim                         Camry Crossover
           Toyota

                                       China                                Carpet, Trunk Trim                    Epsilon SWB
           GM

                                       China                                Carpet, Trunk Trim                    300C
           DCX


                            Continuing To Win New Business In Asia
                             And With Asian Manufacturers Globally
                                                                                                                                        23
* Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Targeting Total Asian Sales
Growth of About 25% Annually**
         Revenue in Asia and with                                                                 Lear’s Targeted
           Asian Manufacturers*                                                              Asian Sales by Major Market
(in millions)


                                                                                                                   China
                                                                                    North
                                                ≈ $3,000                           America
                                     $2,500
                         $2,200                                                                                                 Korea &
            $1,800
                                                                                                                                 India
 $1,200

                                                                                                                           Europe
                                                                                                                   Other Asia
2003        2004        2005       2006     2007    2010
                                  Forecast Outlook Target
   Consolidated
   Non-consolidated
       Rapid Growth In Asian Sales Led By Expanding
       Relationships With Hyundai, Nissan And Toyota,
    As Well As Growth In Emerging Markets Such As China
                                                                                                                                     24
* Total Asian sales target includes consolidated and non-consolidated sales.
** Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
North America
Major Second Half 2006 And 2007 Launches




                                                              Jeep Patriot
          Chevrolet Silverado
        Seating, Door Panels and                   Instrument Panel, Overhead System,
    Car2UTM Home Automation System                 Flooring & Acoustics, and Interior Trim
 Acura MDX                                      Nissan Altima
   Wire Harnesses                                Seating, Headliner, Door Panels, Flooring &
                                                 Acoustics, Interior Trim
 BMW X5
                                                Nissan Armada / Titan
   Seating, Electronics
 Chrysler Aspen                                  Overhead System, Console
   Seating, Wire Harnesses, Overhead System,    Nissan Sentra
   Flooring & Acoustics, Console, Electronics    Overheads, Flooring & Acoustics, Interior Trim
 Chrysler / Dodge Minivan
                                                Saturn VUE
   IP, Door Panels, Overhead System, Flooring
   & Acoustics                                   Seating
                                                Toyota Tundra
 Ford Edge / Lincoln MKX
                                                 Flooring & Acoustics, Interior Trim,
   Overhead System
                                                 SonoTecTM Dash Insulator
 Honda CR-V   and Accord
  Wire Harnesses                                                                                  25
                                                   Crossover Vehicle
Europe and Rest of World
Major Second Half 2006 And 2007 Launches
                Europe                                        Rest of World




                                                             Hyundai Veracruz
            Mercedes C-Class
                                                       Seating and IntelliTireTM (Korea)
                 Seating
                                                  Cadillac STS (China)
 BMW 3-Series Convertible
                                                    Seating, Door Panels, Flooring & Acoustics
   Seating, Electronics
 Fiat Bravo                                       Chang'an (China)
   Seating                                          Seating
                                                  Dodge Caliber (Venezuela)
 Ford Mondeo
   Seating (First LFSA-common seat architecture     Seating, Door Panels
   program in Europe)                             Ford Galaxy (China)
 Jaguar S-Type                                      Seating
   Seating, Overhead System, Electronics          Ford Mondeo (China)
 Land Rover Range Rover                             Seating, Door Panels, Overheads
   Seating, Electronics                           Hyundai Santro Minicar (India)
 Nissan Qashqai
                                                    Seating, IntelliTireTM
   Seating, Electrical Distribution
                                                  Nissan Geniss MPV and Sylphy Sedan (China)
 Peugeot 207 Coupe
                                                    Seating
   Seating
                                                  Renault Logan (India)
 Volvo V70
                                                    Seating
   Seating                                                                                     26
Summary
and Outlook



              27
Summary and Outlook
Improving our Global Competitiveness*

         Continuously improving quality and customer satisfaction
         levels

         Successfully implementing global restructuring initiatives

         Increasing emphasis on new product technology and
         innovation

         Leveraging global scale, expertise and common
         architecture strategy to deliver the best overall value

         Strategically managing the business to improve individual
         product-line returns
         Comprehensive Initiatives Being Implemented
             To Improve Future Competitiveness
                                                                                                                   28
 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
Summary and Outlook
Making Progress on Strategic Priorities*

  Global Seating margins improving
  Aggressive restructuring actions to improve Electronic and
  Electrical margins in future
  Completed agreement to contribute European Interior business
  to International Automotive Components Group, LLC
  Priority focus on improving our North American Interior
  business and putting in place a sustainable business model
  Continuing to aggressively grow sales in Asia and with Asian
  Automakers globally

      Agreement To Issue $200 Million Of Common Stock
     Provides Increased Flexibility, Allowing The Company
          To Further Strengthen Our Core Businesses
                                                                                                                   29
 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
R




                                R




         ADVANCE RELENTLESSLY™

 LEA
Listed
                      www.lear.com
NYSE                                     30
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 certain non-GAAP financial measures. These measures
include “income (loss) before interest, other expense and income taxes,” “income before interest, other expense, income taxes,
impairments, restructuring costs and other special items” (core operating earnings), “pretax income (loss) before impairments, restructuring
costs and other special items” and “free cash flow.” Free cash flow represents net cash provided by operating activities before the net
change in sold accounts receivable, less capital expenditures. The Company believes it is appropriate to exclude the net change in sold
accounts receivable in the calculation of free cash flow since the sale of receivables may be viewed as a substitute for borrowing activity.

Management believes that the non-GAAP financial measures used in this presentation are useful to both management and investors in their
analysis of the Company’s financial position and results of operations. In particular, management believes that income (loss) before interest,
other expense and income taxes, core operating earnings and pretax income (loss) before impairments, restructuring costs and other
special items are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the
Company’s core operating earnings or that may obscure trends useful in evaluating the Company’s continuing operating activities.
Management also believes that these measures are useful to both management and investors in their analysis of the Company's results of
operations and provide improved comparability between fiscal periods. Management believes that free cash flow is useful to both
management and investors in their analysis of the Company’s ability to service and repay its debt. Further, management uses these non-
GAAP financial measures for planning and forecasting in future periods.

Income (loss) before interest, other expense and income taxes, core operating earnings, pretax income (loss) before impairments,
restructuring costs and other special items and free cash flow should not be considered in isolation or as substitutes for net income (loss),
pretax income (loss), cash provided by operating activities or other income statement or cash flow statement data prepared in accordance
with GAAP or as measures of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt
and therefore, does not reflect funds available for investment or other discretionary uses. Also, these non-GAAP financial measures, 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 slides are reconciliations of these non-GAAP financial measures to the most directly comparable financial
measures calculated and presented in accordance with GAAP. Given the inherent uncertainty regarding special items and the net change
in sold accounts receivable in any future period, a reconciliation of forward-looking financial measures is not feasible. The magnitude of
these items, however, may be significant.



                                                                                                                                               31
Non-GAAP Financial Information


  (in millions)                                              Q3 2006           Q3 2005

  Loss before income taxes                               $       (65.9)    $      (787.8)
  Interest expense                                               56.6              45.1
  Other expense, net                                             38.1              16.4

  Income (loss) before interest, other expense
    and income taxes                                     $       28.8      $      (726.3)

  Goodwill and fixed asset impairment charges                          -           743.8
  Costs related to restructuring actions                          17.4              32.1
  Litigation charges                                                   -            (1.7)

  Income before interest, other expense, income taxes,
    impairments, restructuring costs and
    other special items                                  $        46.2     $        47.9
    (core operating earnings)



                                                                                            32
Non-GAAP Financial Information



 (in millions)                                       Q3 2006           Q3 2005

 Loss before income taxes                        $       (65.9)    $      (787.8)
 Goodwill and fixed asset impairment charges                   -           743.8
 Costs related to restructuring actions                  17.4              33.1
 Litigation charges                                            -             0.8
 Loss on divestiture                                     28.7                    -

 Pretax loss before impairments,
   restructuring costs and other special items   $       (19.8)    $       (10.1)




                                                                                     33
Non-GAAP Financial Information


                                                      Three Months              Nine Months
(in millions)                                             Q3 2006                Q3 2006

Net cash provided by (used in) operating activities   $             (8.1)   $          106.1
Net change in sold accounts receivable                          43.7                    23.7
Net cash provided by operating activities
  before net change in sold accounts receivable
                                                      $         35.6        $          129.8
  (cash from operations)
Capital expenditures                                            (83.8)                (268.5)

                                                      $         (48.2)      $         (138.7)
Free cash flow




                                                                                                34
Non-GAAP Financial Information


                                                        Three Months                 Nine Months
(in millions)                                      Q3 2006        Q3 2005      Q3 2006        Q3 2005

Seating                                            $   125.6     $     71.2    $    423.0    $    169.9
Electronic and Electrical                                16.4          35.3         107.6         145.9
Interior                                                (55.8)       (112.6)       (149.6)       (138.8)

Segment earnings                                   $    86.2     $     (6.1)   $   381.0     $    177.0

Corporate and geographic headquarters and
 elimination of intercompany activity                  (57.4)         (50.2)       (184.8)       (154.5)

Income (loss) before goodwill impairment charge,
   interest, other expense and income taxes        $    28.8     $    (56.3)   $   196.2     $     22.5

Goodwill impairment charge                                -          670.0           2.9         670.0
Interest expense                                        56.6          45.1         157.5         138.1
Other expense, net                                      38.1          16.4          55.4          55.5

Loss before income taxes and cumulative effect
 of a change in accounting principle               $   (65.9)    $   (787.8)   $    (19.6)   $   (841.1)




                                                                                                           35
Non-GAAP Financial Information

                                                  Three Months Q3 2006                     Three Months Q3 2005
                                                     Electronic and                           Electronic and
 (in millions)                            Seating       Electrical    Interior     Seating       Electrical    Interior

 Segment earnings                         $   125.6 $          16.4 $     (55.8)   $   71.2 $           35.3 $    (112.6)

 Fixed asset impairment charges                 -                -           -            -               -         73.8
 Costs related to restrucuting actions         7.8              7.1         1.9          7.2             9.7        14.9
 Litigation charges                             -                -           -          (1.7)             -           -

 Adjusted segment earnings                $   133.4 $          23.5 $     (53.9)   $   76.7 $           45.0 $     (23.9)


                                                  Nine Months Q3 2006                      Nine Months Q3 2005
                                                     Electronic and                           Electronic and
 (in millions)                            Seating       Electrical    Interior     Seating       Electrical    Interior

 Segment earnings                         $   423.0 $         107.6 $    (149.6)   $   169.9 $         145.9 $    (138.8)

 Fixed asset impairment charges                 -                -          9.2          -                -         73.8
 Costs related to restructuring actions       27.8             22.0        10.7        20.1             19.9        18.1
 Litigation charges                             -                -           -         30.5               -           -

 Adjusted segment earnings                $   450.8 $         129.6 $    (129.7)   $   220.5 $         165.8 $     (46.9)




                                                                                                                            36
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. 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, including changes in interest rates or currency exchange rates, 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 and suppliers, raw material costs and availability, the
 Company's ability to mitigate the significant impact of increases in raw material, energy and commodity costs, the
 outcome of legal or regulatory proceedings to which the Company is or may become a party, unanticipated changes in
 cash flow, including the Company’s ability to align its vendor payment terms with those of its customers, the finalization of
 the Company's restructuring strategy, the outcome of various strategic alternatives being evaluated with respect to its
 North American Interior business and other risks described from time to time in the Company's Securities and Exchange
 Commission filings. In particular, the Company’s financial outlook for 2006 and 2007 is based on several factors
 including, the Company’s current vehicle production and raw material pricing assumptions. The Company’s actual
 financial results could differ materially as a result of significant changes in these factors. The Company's previously
 announced private placement of common stock to affiliates of and funds managed by Carl C. Icahn is subject to certain
 conditions. No assurances can be given that the offering will be consummated on the terms contemplated or at all.


 The forward-looking statements in this presentation are made as of the date hereof, and the Company does not assume
 any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the
 date hereof.

                                                                                                                                    37

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LEAR Q3 06 earnings

  • 1. R Third-Quarter 2006 Results, Fourth-Quarter 2006 Guidance and a Preliminary Outlook for 2007 October 26, 2006 fast forward advance relentlessly 1
  • 2. Agenda Recent Events Bob Rossiter, Chairman and CEO – Financial Review Jim Vandenberghe, Vice Chairman and CFO – Strategy Update and Key Operating Targets Doug DelGrosso, President and COO – Summary and Outlook Bob Rossiter, Chairman and CEO – Q and A Session 2
  • 3. Recent Events* Strategic Developments Closed transaction whereby Lear contributed substantially all of its European Interior business to joint venture in return for a one- third equity stake Continued to make progress on new strategy for North American Interior business Agreed to $200 million equity offering to increase flexibility Operating Developments Industry production environment in N.A. very challenging Continued to win new business with Asian manufacturers Introduced new products, including the industry’s first solid-state Smart Junction Box technology 3 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 5. Recent Events Update on Interior Business Contributed substantially all of Lear’s European Interior business to International Automotive Components Group, LLC in return for a one-third equity stake: – Creates a large [20 manufacturing facilities in 9 countries, with $1.2 billion in annual sales] and well capitalized enterprise – Solid platform for improving ongoing operating efficiency and financial performance Continuing to work toward a new strategy for Lear’s North American Interior business Working Toward Definitive New Strategic Direction For North American Interior Business By Year End 5 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 6. Recent Events Equity Offering* Lear agreed to issue $200 million of common stock to affiliates of Carl Icahn in a private placement Proceeds to be used for strategic investments in the Company’s core businesses and to increase financial and operating flexibility Lear looks forward to working with Icahn to increase value for all Lear shareholders Icahn representative will join Lear’s Board of Directors when transaction closes (expected timing about 45 days) Lear’s shares outstanding will increase by 8.7 million 6 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 7. Third Quarter 2006 Industry Environment Third Quarter Third Quarter 2006 2006 vs. 2005 North American Production Industry 3.4 mil Down 9% Big Three 2.2 mil Down 13% Lear's Top 15 Platforms 1.1 mil Down 14% European Production Industry 4.2 mil Down 2% Lear's Top 5 Customers 2.0 mil Down 3% Key Commodities (Quarterly Average) vs. Prior Quarter Steel (Hot Rolled) Up 4% Up 23% Resins (Polypropylene) Up 4% Up 24% Copper Up 12% Up 106% Crude Oil flat Up 11% 7
  • 8. Third Quarter 2006 Financial Summary** Third Third 3Q '06 (in millions, except net loss per share) Quarter 2006 Quarter 2005 B/(W) 3Q '05 $4,069.7 $3,986.6 $83.1 Net Sales Income (Loss) Before Interest, Other Expense $28.8 ($726.3) $755.1 and Income Taxes* 0.7 % NM NM Margin ($65.9) ($787.8) $721.9 Pretax Loss ($74.0) ($750.1) $676.1 Net Loss* ($1.10) ($11.17) $10.07 Net Loss Per Share 3.9 % (0.3) pts. 3.6 % SG&A % of Net Sales $56.6 ($11.5) $45.1 Interest Expense $98.1 $1.5 $99.6 Depreciation / Amortization $38.1 $16.4 ($21.7) Other Expense, Net * Third quarter 2006 tax provision was $8.1 million. This included a non-recurring tax benefit of $19.9 million related to restructuring actions, the loss on the divestiture of the European Interior business and a one-time tax benefit. 8 ** Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
  • 9. Third Quarter 2006 Restructuring and Special Items* Third Quarter Memo: Income Before Interest, Other Expense and (in millions) Income Taxes Pretax Loss Income Statement Category Other Expense COGS SG&A $ 28.8 $ (65.9) 2006 Reported Results Reported results include the following items: $ 17.4 $ 17.4 $ 16.1 $ 1.3 Costs related to Global Restructuring Actions - Loss on Divestiture of - 28.7 - $ 28.7 - European Interior Business $ (19.8) 2006 Core Operating Results $ 46.2 2005 Core Operating Results $ 47.9 $ (10.1) 9 * Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
  • 10. Third Quarter 2006 Net Sales Changes and Margin Impact Versus Prior Year Net Sales Margin Performance Factor Change Impact Comments (in millions) Industry Production / $ (366) Negative Primarily lower industry production in Platform Mix / Net Pricing / North America (down 9%) and Other unfavorable platform mix (lower pickups in N.A.) Global New Business 362 Positive GM large SUVs, Lucerne, Fusion / Milan / Zephyr, Santa Fe, Peugeot 207, Punto F/X Translation 87 Neutral Euro up 4%, Canadian dollar up 7% Commodity / Raw Material Negative Unfavorable year over year increases-- hot rolled steel up 23%, polypropylene up 24%, copper up 106% Performance Positive Favorable operating performance in core businesses, including benefits from restructuring actions 10
  • 11. Third Quarter and Nine Months 2006 Business Segment Results*** Third Quarter Nine Months ($ in millions) 2006 2005 2006 2005 Seating Net Sales $ 2,633.0 $ 2,564.3 $ 8,721.6 $ 8,192.9 Segment Earnings* $ 125.6 $ 71.2 $ 423.0 $ 169.9 % of Sales 4.8 % 2.8 % 4.9 % 2.1 % Adjusted % of Sales** 5.1 % 3.0 % 5.2 % 2.7 % Electronic and Electrical Net Sales $ 682.6 $ 690.9 $ 2,257.6 $ 2,237.8 Segment Earnings* $ 16.4 $ 35.3 $ 107.6 $ 145.9 % of Sales 2.4 % 5.1 % 4.8 % 6.5 % Adjusted % of Sales** 3.4 % 6.5 % 5.7 % 7.4 % Interior Net Sales $ 754.1 $ 731.4 $ 2,579.2 $ 2,261.2 Segment Earnings* $ (55.8) $ (112.6) $ (149.6) $ (138.8) % of Sales (7.4) % (15.4) % (5.8) % (6.1) % (5.0) % (2.1) % Adjusted % of Sales** (7.1) % (3.3) % * Segment earnings represent income (loss) before goodwill impairment charge, interest, other expense and income taxes. Income (loss) before goodwill impairment charge, interest, other expense and income taxes for the Company was $28.8 million and $(56.3) million for the three months ended 9/30/06 and 10/01/05, respectively, and $196.2 million and $22.5 million for the nine months ended 9/30/06 and 10/01/05, respectively. ** Adjusted % of sales excludes impairments, restructuring costs and other special items of $16.8 million (Seating - $7.8, Electronic and Electrical - $7.1, Interior - $1.9) and $103.9 million (Seating - $5.5, Electronic and Electrical - $9.7, Interior - $88.7) for the three months ended 9/30/06 and 10/01/05, respectively, and $69.7 million (Seating - $27.8, Electronic and Electrical - $22.0, Interior - $19.9) and $162.4 million (Seating - $50.6, Electronic and Electrical - $19.9, Interior - $91.9) for the nine months ended 09/30/06 and 10/01/05, respectively. 11 *** Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information.
  • 12. Third Quarter and Nine Months 2006 Free Cash Flow* (in millions) Third Nine Quarter Months 2006 2006 Net Loss $ (74.0) $ (62.5) Depreciation / Amortization 98.1 299.4 Working Capital / Other 11.5 (107.1) Cash from Operations $ 35.6 $ 129.8 Capital Expenditures (83.8) (268.5) $ (48.2) $ (138.7) Free Cash Flow * Free Cash Flow represents net cash provided by (used in) operating activities (($8.1) million for the three months and $106.1 million for the nine months ended 9/30/06) before net change in sold accounts receivable ($43.7 million for the three months and $23.7 million for the nine months ended 9/30/06), less capital expenditures. Please see slides titled “Non-GAAP Financial Information” at the end of this presentation for further information. 12
  • 13. Fourth Quarter 2006 Guidance Key Assumptions* Fourth Quarter Change from 2006 Guidance Prior Year North American Production Total Industry ≈ 3.7 mil down 5% Big Three ≈ 2.4 mil down 12% Lear's Top 15 Platforms ≈ 1.0 mil down 24% European Production Total Industry ≈ 4.7 mil down 1% Lear's Top 5 Customers ≈ 2.4 mil down 2% Euro $1.28 / Euro up 7% 13 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 14. 2006 Guidance Key Financial Projections*** (Reflects Lear's investment in European Fourth Quarter 2006 Full Year 2006 Interiors joint venture on an equity basis) ≈ $ 4.1 billion ≈ $ 17.7 billion Net Sales $80 to $110 million $345 to 375 million Core Operating Earnings Incom e before interest, other expense, incom e taxes, im pairm ents, restructuring costs and other special item s $50 to $55 million $210 to $215 million Interest Expense $15 to $45 million $65 to $95 million Pretax Income before im pairm ents, restructuring costs and other special item s ≈ $40 million ≈ $90 million Estimated Tax Expense* $50 to $60 million $105 to $115 million Pretax Restructuring Costs $110 to $120 million $380 to $390 million Capital Spending ≈ $140 million positive about breakeven Free Cash Flow** * Subject to actual mix of financial results by country. ** Excludes potential payment of approximately $35 million related to settlement of prior litigation. *** Please see slides titled “Non-GAAP Financial Information” and “Forward-Looking Statements” at the end of this presentation for 14 further information.
  • 15. 2007 Outlook Preliminary Assessment of Key Financials* Assuming an industry production environment that is roughly in line with 2006. . . we see the following preliminary outlook for 2007: Within our core Seating, Electronic and Electrical businesses: – Global new business of about $800 million, – Seating margins continue to improve to the mid-5% level, excluding restructuring costs and other special items, – Electronic and Electrical margins improve during the course of the year to the 5.5% to 6% range, also excluding restructuring costs and other special items – Capital spending is expected to be in the range of $250 to $280 million, and – Free cash flow turns solidly positive. * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information. 15
  • 16. Strategy Update and Key Operating Targets 16
  • 17. Where Lear Needs To Be . . . And Our Strategy To Get There* High-Performance Strategic Direction Company Consistently Delivering “Profitable Growth” Market Leadership Expand Market Boundaries Maintain Efficient / Competitive Operations * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information. 17
  • 18. Key Operating Targets** Achieve global sales growth (about 5% annually) and further diversify sales (target is to grow total Asian sales* about 25% annually) Continuous improvement in quality and customer satisfaction Core Dimension Strategy – product focus; emphasis on technology Put in place a new, sustainable business model for Interior business Restore Seating margins to historical level (6.0% range) Improve Electronic and Electrical margins (7.5% range) Restore strong free cash flow levels, pay down debt and restore investment grade credit status * Total Asian sales target includes consolidated and non-consolidated sales. ** Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information. 18
  • 19. Global Strategy For Sales Growth and Diversification* North America Fully participate in fast-growing Crossover segment Expand emerging relationships with Hyundai, Nissan and Toyota Grow content per vehicle with new products and technology: – Safety-Related – IntelliTireTM, Pro-TecTM PLuS and Adaptive Front Lighting – Electronics – RKE Technology, Premium Audio/Visual, Home Automation Participate in Hybrid growth with high-voltage Electrical Systems Europe and Rest of World Continue to invest and grow sales in China, India and Korea Accelerate growth with Asian automakers and Volkswagen Leverage existing relationships with Big Three and European automakers to grow in emerging markets * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information. 19
  • 20. Examples of Emerging Asian Relationships* Lear Relationship Product Customer Supply 100% of North American seating • Provide value-add technologies (e.g., TPMS) • Provide wiring harnesses through JV with a Korean partner • Leverage Lear’s quality reputation and global footprint to • support Hyundai’s quality reputation Rapid growth potential as a preferred global supplier • Santa Fe -- Seating, IntelliTireTM Nissan evolving its sourcing strategy to global suppliers • Lear’s relationship with Tachi-S now encompasses three • JVs: – North America (Mt. Juliet, TN) – Europe (Sunderland, U.K.) – Asia (Guangzhou, China) Collectively, these operations will supply seven vehicle • lines for Nissan Additional JV opportunities with Tachi-S being developed Qashqai -- Seating, • Electrical Distribution Expanding relationship with headliners, NVH, plastics and • seating by establishing new facilities alongside Toyota in North America and Europe Continued success on seating JV in N.A. (Sienna) and • interior programs (e.g., Tundra) provides opportunity on next new N.A. seat program Tundra – Flooring & Acoustics, Interior Trim * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information. 20
  • 21. Lear China Business Profile* Lear WOFE L JV Plant Lear Lear in China Changchun Seats • Headquarters: Shanghai L Shenyang • Existing Facilities: Seats –Joint Ventures = 12 (13 JV Plants) –WOFE’s = 3 (Changchun, Cadillac, RHQ) LBeijing • New / Planned Facilities: 7 new facilities to Seats Chongqing LShiyan Wuhan support Ford, SGM, Nissan, Mazda, Fiat and L Seats Seat, Carpet, Interiors L W/H Chery L Seats L Shanghai W/H –New in 2006 = STEC, Guangzhou L LDoor Nanjing (sub of –Planned for 2007 = Nanchang, Chongqing, Wuhan W/H) Seat, W/H LCarpet Nanjing (2) and Wuhu LW/H, Switch (STEL) New in 2006 • Engineering Centers: Seating and Electronics in LearSeats LNanchang Shanghai Lear Regional HQ and Seat • Engineering Centers Employees: 959 Salaried / 5,105 Hourly New in 2006 • Main Competitors: Guangzhou L Faurecia/Delphi/JCI/Visteon/3303 (owned by Seats Chinese military) • 2006 Sales forecast: ≈ $550 million, including consolidated and non-consolidated sales Lear China = 13 JV Plants (For 12 JVs) + 3 WOFE’s (Including Regional Headquarters) 21 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 22. Lear China Projected Sales Growth* Lear WOFE L JV Plant Lear Projected Sales Growth Changchun Seats (in millions) L Shenyang Seats LBeijing Seats Chongqing LShiyan Wuhan ≈ $750 L Seats Seat, Carpet, Interiors L W/H L Seats L Shanghai ≈ $550 W/H L LDoor Nanjing (sub of $350 Wuhan W/H) Seat, W/H LCarpet $225 $150 LW/H, Switch (STEL) New in 2006 LearSeats LNanchang Lear Regional HQ and Seat 2003 2004 2005 2006 2007 2010 Engineering Centers Forecast Outlook Target Note: Includes consolidated and non-consolidated sales New in 2006 Guangzhou L Seats Lear China’s Sales Are Projected To Grow About 30% Annually 22 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 23. New Asian Business Awards During Third Quarter 2006* Automaker Market Lear Content Vehicle Program Europe Seating, Wire Future Crossover Nissan Harnesses, Smart Junction Box China Seating Transit Van Chery China Seating, Door Trim New MPV Changan North America ProTec Plus TM Pilot Honda China Wire Harnesses, Sedan Passenger Car DFM Smart Junction Box North America Interior Trim Camry Crossover Toyota China Carpet, Trunk Trim Epsilon SWB GM China Carpet, Trunk Trim 300C DCX Continuing To Win New Business In Asia And With Asian Manufacturers Globally 23 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 24. Targeting Total Asian Sales Growth of About 25% Annually** Revenue in Asia and with Lear’s Targeted Asian Manufacturers* Asian Sales by Major Market (in millions) China North ≈ $3,000 America $2,500 $2,200 Korea & $1,800 India $1,200 Europe Other Asia 2003 2004 2005 2006 2007 2010 Forecast Outlook Target Consolidated Non-consolidated Rapid Growth In Asian Sales Led By Expanding Relationships With Hyundai, Nissan And Toyota, As Well As Growth In Emerging Markets Such As China 24 * Total Asian sales target includes consolidated and non-consolidated sales. ** Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 25. North America Major Second Half 2006 And 2007 Launches Jeep Patriot Chevrolet Silverado Seating, Door Panels and Instrument Panel, Overhead System, Car2UTM Home Automation System Flooring & Acoustics, and Interior Trim Acura MDX Nissan Altima Wire Harnesses Seating, Headliner, Door Panels, Flooring & Acoustics, Interior Trim BMW X5 Nissan Armada / Titan Seating, Electronics Chrysler Aspen Overhead System, Console Seating, Wire Harnesses, Overhead System, Nissan Sentra Flooring & Acoustics, Console, Electronics Overheads, Flooring & Acoustics, Interior Trim Chrysler / Dodge Minivan Saturn VUE IP, Door Panels, Overhead System, Flooring & Acoustics Seating Toyota Tundra Ford Edge / Lincoln MKX Flooring & Acoustics, Interior Trim, Overhead System SonoTecTM Dash Insulator Honda CR-V and Accord Wire Harnesses 25 Crossover Vehicle
  • 26. Europe and Rest of World Major Second Half 2006 And 2007 Launches Europe Rest of World Hyundai Veracruz Mercedes C-Class Seating and IntelliTireTM (Korea) Seating Cadillac STS (China) BMW 3-Series Convertible Seating, Door Panels, Flooring & Acoustics Seating, Electronics Fiat Bravo Chang'an (China) Seating Seating Dodge Caliber (Venezuela) Ford Mondeo Seating (First LFSA-common seat architecture Seating, Door Panels program in Europe) Ford Galaxy (China) Jaguar S-Type Seating Seating, Overhead System, Electronics Ford Mondeo (China) Land Rover Range Rover Seating, Door Panels, Overheads Seating, Electronics Hyundai Santro Minicar (India) Nissan Qashqai Seating, IntelliTireTM Seating, Electrical Distribution Nissan Geniss MPV and Sylphy Sedan (China) Peugeot 207 Coupe Seating Seating Renault Logan (India) Volvo V70 Seating Seating 26
  • 28. Summary and Outlook Improving our Global Competitiveness* Continuously improving quality and customer satisfaction levels Successfully implementing global restructuring initiatives Increasing emphasis on new product technology and innovation Leveraging global scale, expertise and common architecture strategy to deliver the best overall value Strategically managing the business to improve individual product-line returns Comprehensive Initiatives Being Implemented To Improve Future Competitiveness 28 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 29. Summary and Outlook Making Progress on Strategic Priorities* Global Seating margins improving Aggressive restructuring actions to improve Electronic and Electrical margins in future Completed agreement to contribute European Interior business to International Automotive Components Group, LLC Priority focus on improving our North American Interior business and putting in place a sustainable business model Continuing to aggressively grow sales in Asia and with Asian Automakers globally Agreement To Issue $200 Million Of Common Stock Provides Increased Flexibility, Allowing The Company To Further Strengthen Our Core Businesses 29 * Please see slide titled “Forward-Looking Statements” at the end of this presentation for further information.
  • 30. R R ADVANCE RELENTLESSLY™ LEA Listed www.lear.com NYSE 30
  • 31. 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 certain non-GAAP financial measures. These measures include “income (loss) before interest, other expense and income taxes,” “income before interest, other expense, income taxes, impairments, restructuring costs and other special items” (core operating earnings), “pretax income (loss) before impairments, restructuring costs and other special items” and “free cash flow.” Free cash flow represents net cash provided by operating activities before the net change in sold accounts receivable, less capital expenditures. The Company believes it is appropriate to exclude the net change in sold accounts receivable in the calculation of free cash flow since the sale of receivables may be viewed as a substitute for borrowing activity. Management believes that the non-GAAP financial measures used in this presentation are useful to both management and investors in their analysis of the Company’s financial position and results of operations. In particular, management believes that income (loss) before interest, other expense and income taxes, core operating earnings and pretax income (loss) before impairments, restructuring costs and other special items are useful measures in assessing the Company’s financial performance by excluding certain items that are not indicative of the Company’s core operating earnings or that may obscure trends useful in evaluating the Company’s continuing operating activities. Management also believes that these measures are useful to both management and investors in their analysis of the Company's results of operations and provide improved comparability between fiscal periods. Management believes that free cash flow is useful to both management and investors in their analysis of the Company’s ability to service and repay its debt. Further, management uses these non- GAAP financial measures for planning and forecasting in future periods. Income (loss) before interest, other expense and income taxes, core operating earnings, pretax income (loss) before impairments, restructuring costs and other special items and free cash flow should not be considered in isolation or as substitutes for net income (loss), pretax income (loss), cash provided by operating activities or other income statement or cash flow statement data prepared in accordance with GAAP or as measures of profitability or liquidity. In addition, the calculation of free cash flow does not reflect cash used to service debt and therefore, does not reflect funds available for investment or other discretionary uses. Also, these non-GAAP financial measures, 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 slides are reconciliations of these non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP. Given the inherent uncertainty regarding special items and the net change in sold accounts receivable in any future period, a reconciliation of forward-looking financial measures is not feasible. The magnitude of these items, however, may be significant. 31
  • 32. Non-GAAP Financial Information (in millions) Q3 2006 Q3 2005 Loss before income taxes $ (65.9) $ (787.8) Interest expense 56.6 45.1 Other expense, net 38.1 16.4 Income (loss) before interest, other expense and income taxes $ 28.8 $ (726.3) Goodwill and fixed asset impairment charges - 743.8 Costs related to restructuring actions 17.4 32.1 Litigation charges - (1.7) Income before interest, other expense, income taxes, impairments, restructuring costs and other special items $ 46.2 $ 47.9 (core operating earnings) 32
  • 33. Non-GAAP Financial Information (in millions) Q3 2006 Q3 2005 Loss before income taxes $ (65.9) $ (787.8) Goodwill and fixed asset impairment charges - 743.8 Costs related to restructuring actions 17.4 33.1 Litigation charges - 0.8 Loss on divestiture 28.7 - Pretax loss before impairments, restructuring costs and other special items $ (19.8) $ (10.1) 33
  • 34. Non-GAAP Financial Information Three Months Nine Months (in millions) Q3 2006 Q3 2006 Net cash provided by (used in) operating activities $ (8.1) $ 106.1 Net change in sold accounts receivable 43.7 23.7 Net cash provided by operating activities before net change in sold accounts receivable $ 35.6 $ 129.8 (cash from operations) Capital expenditures (83.8) (268.5) $ (48.2) $ (138.7) Free cash flow 34
  • 35. Non-GAAP Financial Information Three Months Nine Months (in millions) Q3 2006 Q3 2005 Q3 2006 Q3 2005 Seating $ 125.6 $ 71.2 $ 423.0 $ 169.9 Electronic and Electrical 16.4 35.3 107.6 145.9 Interior (55.8) (112.6) (149.6) (138.8) Segment earnings $ 86.2 $ (6.1) $ 381.0 $ 177.0 Corporate and geographic headquarters and elimination of intercompany activity (57.4) (50.2) (184.8) (154.5) Income (loss) before goodwill impairment charge, interest, other expense and income taxes $ 28.8 $ (56.3) $ 196.2 $ 22.5 Goodwill impairment charge - 670.0 2.9 670.0 Interest expense 56.6 45.1 157.5 138.1 Other expense, net 38.1 16.4 55.4 55.5 Loss before income taxes and cumulative effect of a change in accounting principle $ (65.9) $ (787.8) $ (19.6) $ (841.1) 35
  • 36. Non-GAAP Financial Information Three Months Q3 2006 Three Months Q3 2005 Electronic and Electronic and (in millions) Seating Electrical Interior Seating Electrical Interior Segment earnings $ 125.6 $ 16.4 $ (55.8) $ 71.2 $ 35.3 $ (112.6) Fixed asset impairment charges - - - - - 73.8 Costs related to restrucuting actions 7.8 7.1 1.9 7.2 9.7 14.9 Litigation charges - - - (1.7) - - Adjusted segment earnings $ 133.4 $ 23.5 $ (53.9) $ 76.7 $ 45.0 $ (23.9) Nine Months Q3 2006 Nine Months Q3 2005 Electronic and Electronic and (in millions) Seating Electrical Interior Seating Electrical Interior Segment earnings $ 423.0 $ 107.6 $ (149.6) $ 169.9 $ 145.9 $ (138.8) Fixed asset impairment charges - - 9.2 - - 73.8 Costs related to restructuring actions 27.8 22.0 10.7 20.1 19.9 18.1 Litigation charges - - - 30.5 - - Adjusted segment earnings $ 450.8 $ 129.6 $ (129.7) $ 220.5 $ 165.8 $ (46.9) 36
  • 37. 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. 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, including changes in interest rates or currency exchange rates, 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 and suppliers, raw material costs and availability, the Company's ability to mitigate the significant impact of increases in raw material, energy and commodity costs, the outcome of legal or regulatory proceedings to which the Company is or may become a party, unanticipated changes in cash flow, including the Company’s ability to align its vendor payment terms with those of its customers, the finalization of the Company's restructuring strategy, the outcome of various strategic alternatives being evaluated with respect to its North American Interior business and other risks described from time to time in the Company's Securities and Exchange Commission filings. In particular, the Company’s financial outlook for 2006 and 2007 is based on several factors including, the Company’s current vehicle production and raw material pricing assumptions. The Company’s actual financial results could differ materially as a result of significant changes in these factors. The Company's previously announced private placement of common stock to affiliates of and funds managed by Carl C. Icahn is subject to certain conditions. No assurances can be given that the offering will be consummated on the terms contemplated or at all. The forward-looking statements in this presentation are made as of the date hereof, and the Company does not assume any obligation to update, amend or clarify them to reflect events, new information or circumstances occurring after the date hereof. 37