El Paso Juarez Industry Summit Lear Corporation Profile, Impact and Growth 1 April 28, 2016
Lear Corporation Vision Matt Simoncini President and CEO 2
El Paso Juarez Industry Summit C O N T E N T Introduction Lear Profile - Video El Paso - Juarez Highlights Mexico Growth Highlights Lear Community Service Lear Business and Technology Questions and Answers 3
Lear Corporation Overview Lear Corporation ranks 174 among FORTUNE 500, with sales of $ 18.2 billion dollars in 2015. Leading supplier in the seating segment and electrical power management system, with high power hybrid electrical components. Lear Corporation Global Headquarters Southfield, MI Lear has a global team of 135,000 employees with 240 locations in 35 countries. We are Leaders in product Quality, Customer Service and Innovation. 4
Lear Mexican Operations Total of 37 facilities located in 10 states of Mexico and San Pedro Sula, Honduras: 1. Sonora, 2. Chihuahua, 3. Coahuila, 4. Nuevo Leon, 5. San Luis Potosi, 6. Guanajuato, 7. Estado de Mexico, 8. Distrito Federal, 9. Tlaxcala, 10. Puebla. 11. San Pedro Sula, Honduras Sonora El Paso Ciudad Juarez Chihuahua Guanajuato Coahuila San Luis Potosi Estado de Mexico Distrito Federal 51,791 employees in México and Honduras, which represents 38% of the global workforce. Of these, 46,824 employees work in México. Nuevo Leon Puebla Tlaxcala Naco Honduras 5
Lear in Chihuahua State El Paso Ciudad Juarez Nuevo Casas Grandes Villa Ahumada Employees: 33,202 Plants: 15 Trim (7 Plants) La Cuesta (Juarez) San Lorenzo (Juarez) Rio Bravo (Juarez) Fuentes (Juarez) Zaragoza (Juarez) Villa Ahumada (VA) Casas Grandes (NCG) Ascension Chihuahua Electrical Distribution Systems (5 Plants) Monarca (Juarez) Juarez (Juarez) Torres (Juarez) Americas (Chihuahua) Nova (Chihuahua) 71% of employees in México are in the state of Chihuahua. 6 Leather (3 Plants) Bermudez (Juarez) Jarudo (Juarez) Victoria (Juarez)
Lear Leads Peer Group in Adjusted EBITDA Growth 3 Year CAGR Lear Corporation currently ranks #174 on the FORTUNE 500 list. Sales of $ 18.2 billion dollars in 2015. Lear content can be found on more than 300 vehicle nameplates A global team of 135,000 employees. 240 locations in 35 countries. Founded in Detroit, Mi. on 1917 7 7
Lear Share Price Trend -- 2010 to Present $120 $125.90 11/30/15 $100 $80 $60 $33.82 12/31/09 $40 $20 8 8
El Paso Juarez Industry Summit Lear Profile V I D E O 9 9
Lear Juarez El Paso Profile 3 Business Units in Juarez City (11 Plants): Trim-Cutting and sewing (5 Plants) Electrical-Automotive electrical harnesses (3 Plants) Leather-Cutting-Finishing automotive leather (3 Plants) 3 Cross Docks - Warehouses in El Paso,Tx. Loma Verde (Electrical warehouse) Linc (Trim warehouse) Eagle Ottawa (Leather warehouse) A diverse team of 27,076 associates: Juarez employees: Hourly: 25716 Salary:1344 US, El Paso employees: Salary: 186 30 000 Import/Export transaction per year Lear Mexico exports 3.0 USD Billion (Around 2 Billion through El Paso Tx.). Import, 2.7 Billion (1.8 Billion through El Paso) 30,000 average trailers cross the bridge per year 10
Lear Customers in Mexico OEM s BAJA CALIFORNIA Tijuana Tacoma SONORA 70,000 units Hermosillo AGUASCALIENTES Aguascalientes 1, 2, 3 Versa Micra Note Sentra CLA, GLA, Q40, QX50 (2016) 550,000 units Ford Fusion Lincoln MKZ 370,000 units L Hermosillo COAHUILA Ramos Arizpe Chevrolet Sonic Chevrolet Captiva Cadillac SRX Cruze, Equinox (2016) 150,000 units Saltillo Ram Pickup ProMaster 250,000 units SAN LUIS POTOSI San Luis Potosi KEY STATE City Current OEM with Lear Current Lear Product Current NON-Lear Product Future Lear Product (SOP) Future NON Awarded Product (SOP) XXX,XXX Total OEM Plant Volume City Current OEM without Lear Seating Content GUANAJUATO Silao Chevrolet Aveo Chevrolet Trax Equinox/Terrain (2017) 250,000 units Chevrolet Silverado GMC Sierra 360,000 units Silao Salamanca Mazda 3 Mazda 2 Toyota Yaris (2015) 260,000 units Celaya JALISCO El Salto L Ramos Arizpe CR-V 75,000 units Toluca L ESTADO DE MEXICO Toluca L Silao L SLP L San Jose Chiapa L Puebla MORELOS Cuernavaca 1, 2 Versa/Tiida Tsuru NV200 Frontier City Express 250,000 units PUEBLA Puebla New Beetle Golf A7 Jetta A6 Tiguan (2016) 600,000 units Fit HR-V 290,000 units Fiat 500 Dodge Journey/Freemont Jeep Renegade (2018) 340,000 units Cuautitlan Fiesta Escape, Focus (2018) 150,000 units 11
New OEM Operations in Mexico NUEVO LEON Monterrey Forte (2016) Rio (2017) Accent (2018) 220,000 units SAN LUIS POTOSI San Luis Potosi 2016-2017 San Luis Potosi GUANAJUATO Celaya L Ramos Arizpe 3-Series (2019) 4-Series (2021) 150,000 units Corolla (2019) 200,000 units L SLP PUEBLA San Jose Chiapa L Silao Q5 (2016) 150,000 units L San Jose Chiapa L Puebla 12
Lear Mexican Operations Growth 2015 Huamantla Tlaxcala JIT Division Customer: Audi Employees: 1 000 Arteaga Coahuila Structure Division Customer: Lear Metal seats frames Employees: 1500 2016 Ramos Arizpe ll JIT Division Customer: GM Employees: 1 000 Caleras Zacatecas Trim Division Customer: 1500 Employees: 2 000 Sonora Chihuahua Torreon Coahuila Electrical Division Customer: Ford, Chrysler Employees: 3 000 Coahuila Nuevo Leon Ascension Chihuahua Trim Division Customer: Lear Trim Employees: 500 Guanajuato San Luis Potosi Estado de Mexico Puebla Tlaxcala 2017-2018 Torreon Coahuila Electrical Division Customer: Ford, Chrysler Employees:3 000 Distrito Federal Naco Honduras 12
Mexico Community Support Following Lear core values, Lear Mexico El Paso employees are actively and enthusiastically contributing and participating on community service activities Annual Average Total Contribution Annual Total Donations and support Mexico Employees Participation 96% 638 000 USD 553 000 USD Community support events Infrastructure, Education, People in difficult circumstances, reforestation, Medicines, etc. More than 220 Volunteers in community activities More than 1,750 Hours of community volunteering More than 8,000 Family values and first childhood workshops 33 and more than 1600 participants Blood units donated by employees 569 13
Community Service Support Summary Scholarships for Technical and Middle Schools Employees education support Employees education support Remodeling - equipping of a classroom at Technological Institute 15
Community Service Support Summary Supporting employees affected by natural disaster Painting and rehabilitation of public Kindergartens Support to build a playground area for children shelter. Blood Donation Drives 16
Community Service Support Summary Children s day celebration for orphanages Rehabilitation of public recreational areas Reforestation of a public school - 93 trees Eye Surgery for an employee 17
Community Service Support Summary Donation to a Cancer Organization Life Values workshops for employees and their families, with more than a thousand participants. Children Health Programs 17
Major Industry Trends Global platforms and direct component sourcing by customers Consumer demand for additional comfort, convenience and safety features Stricter fuel economy and emissions standards China is the largest major automotive market in the world Connectivity, adaptive safety and autonomous vehicles Uniquely Positioned In Both Business Segments To Take Advantage Of Industry Growth And Major Trends 18
Craftsmanship - Commanding confidence in Lear s commitment to quality. Crafted Comfort ConnectTM, Sculpted Process Produces Highly Crafted Look. Wrinkle-free seats. Styling for concave seat cushion. Shape history in launching vehicles that redefine the union of artistry and engineering. 19
Craftsmanship - Commanding confidence in Lear s commitment to quality. Basic fabric with flame retardant properties only. Fabrics that protect against water and oilbased stains. Enhance interior air quality Reduce static electricity Anti-microbial concerns such as mildew and bacteria, or all of the above. 20
Connectivity - The smartest integrated solution provider for smart devices on wheels. Receive multiple types of signals to enable and enhance functionality. Receiving and sending these signals at high speed and quality. In-vehicle electronic processing signals may also be necessary to ensure they can be understood by different vehicle domains and can be used in combination with one another. Provide software and hardware that manages and distributes the full complement of communication signals in, out and around the vehicle. We provide both wired and wireless signals, leveraging our own current leading position in power/signal distribution system in the vehicle. 21
Lear Leadership Model 22
El Paso Juarez Industry Summit Thanks! Gracias! 23