Financial Overview

(in million USD)

	FY ended in Dec. 31, 2012	FY ended in Dec. 31, 2011	Rate of change (%)	Factors
Overall
Net Sales	14,567.0	14,156.5	2.9	1)
Consolidated Net Income	1,317.2	570.4	130.9	-
Seating
Sales	11,029.6	10,943.0	0.8	2)
Electrical Power Management Systems
Sales	3,537.4	3,213.5	10.1	3)

Factors
1) Net Sales
-Net sales for the year ended December 31, 2012 were USD 14.6 billion, as compared to USD 14.2 billion for the year ended December 31, 2011, an increase of USD 411 million or 2.9%. New business and the acquisition of Guilford positively impacted net sales by USD 715 million and USD 197 million, respectively. These increases were partially offset by net foreign exchange rate fluctuations of USD 553 million.

2) Seating
-Seating net sales were USD 11.0 billion for the year ended December 31, 2012, as compared to USD 10.9 billion for the year ended December 31, 2011, an increase of USD 87 million or 0.8%. New business, improved production volumes on key Lear platforms in North America and the acquisition of Guilford positively impacted net sales by USD 293 million, USD 241 million and USD 197 million, respectively. These increases were largely offset by net foreign exchange rate fluctuations and lower production volumes on key Lear platforms in Europe of USD 407 million and USD 272 million, respectively.

3) Electrical Power Management Systems
-EPMS net sales were USD 3.5 billion for the year ended December 31, 2012, as compared to USD 3.2 billion for the year ended December 31, 2011, an increase of USD 324 million or 10.1%. New business and improved production volumes on key Lear platforms positively impacted net sales by USD 421 million and USD 108 million, respectively. These increases were partially offset by net foreign exchange rate fluctuations of USD 145 million.

Acquisitions

-The Company announced that it has completed the acquisition of Guilford Mills based in North Carolina for USD 257 million. The acquisition includes twelve locations in eight countries and approximately 1,600 employees globally. Guilford has annual sales of approximately USD 400 million, with 85% from automotive applications. Guilford's Automotive Division produces fabrics for a number of automotive interior applications, including seat fabric. Guilford has relationships with various major automakers including BMW, Chrysler, Ford, GM, Honda, Nissan, Toyota and Volkswagen. (From press releases on May 31, 2012 and April 11, 2012)

Awards

-The Company announced that it was named by General Motors as 2011 "Corporation of the Year". The Company also was recognized as a 2011 General Motors Supplier of the Year for Seat Assemblies. This marks the eighth consecutive year and the fourteenth time that the Company has been named a General Motors Supplier of the Year. (From a press release on March 15, 2012)

-The Company won an Automotive News PACE award in 2012 for its Solid State Smart Junction Box. The Solid State Smart Junction Box delivers weight savings up to 10 pounds, when wire gauge reductions are taken into account, by eliminating traditional fuses and relays. The box also enables meaningful related cost reductions, potentially providing a manufacturer substantial savings in new model introductions. (From a press release on April 25, 2012)

R&D Expenditure

(in million USD)

	FY ended in Dec. 31, 2012	FY ended in Dec. 31, 2011	FY ended in Dec. 31, 2010
Overall	104	111	81

R&D Structure

-Advanced technology development is conducted worldwide at six advanced technology centers and at the Company's product engineering centers.

Capital Expenditure

(in million USD)

	FY ended in Dec. 31, 2012	FY ended in Dec. 31, 2011	FY ended in Dec. 31, 2010
Seating	290.7	184.0	114.2
Electrical Power Management Systems	158.1	139.4	71.1
Other	9.5	6.1	8.0
Total	458.3	329.5	193.3

-From 2010 to 2012, the Company has invested approximately USD 300 million to increase its low-cost component manufacturing capacity.

Investments Outside USA

<Morocco>
-The Company announced its new automotive wiring plant is scheduled to open in 2013 in Morocco's Amer Saflia area and create approximately 700 jobs. The Company currently operates three plants in Morocco, including two in Tangier for electrical wiring systems and automotive seating and one in Rabat, supplying electronics such as battery chargers and gateway modules to European automakers including BMW, Renault and Volkswagen. (From a press release on December 10, 2012)

<Global>
-The Company announced that it will continue to invest in strengthening its core businesses by expanding component capabilities in emerging markets. In 2012, the Company added manufacturing capacity in foam, seat structures, surface materials and terminals and connectors in multiple low-cost countries. Since the beginning of 2010, the Company has added new component capacity in Brazil, China, India, Mexico, Moldova, Morocco, Poland, Romania, Russia, Thailand and Tunisia. This investment continues with the planned opening of several new facilities by the end of this year. (From a press release on August 2, 2012)