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LEAR Supplier Communication Day Munich, Germany April 27, 2005

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12:00 13:00 Supplier Arrival and Gathering 13:00 13:10 Opening Comments..Michael Hartig 13:10 13:20Supplier Quality Video 13:20 13:35Sourcing Strategy .Michael Hartig 13:35 13:45Supplier Readiness strategyElie Ghazal 13:45 14:00Program Management APQP..Spencer Gill 14:00 14:20Launch Readiness.Bo Carlberg 14:20 14:40Supplier Quality..Alejandro De Icaza 14:40 14:50Supplier Development...Michael Hartig 14:50 15:00Closing Comments.Joe Zimmer Agenda

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Michael Hartig Lear Corporation Vice President, Purchasing Europe, Africa & Asian Pacific Operations Sourcing Strategy

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Supplier Communication Meeting Munich, Germany April 27, 2005

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Worlds fifth largest automotive supplier Fortune 129 company 23rd fastest growing company in the US over the last 10 years Over 360 facilities in 34 countries with over 110,000 employees 2004 sales $17 billion - up 8% from 2003 Record $3.8 billion, 3 year backlog Leader in the automotive interiors, electrical distribution and electronics Global JIT network Lear Business Profile

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Sales in $ Billions * Terminals and Connectors SEAT SYSTEMS OVERHEAD SYSTEMS DOOR SYSTEMS FLOOR & ACOUSTIC SYSTEMS INSTRUMENT PANELS ELECTRICAL & ELECTRONICS T & C* Total Interior Capabilities Growing Sales and Capabilities

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North America Canada United States Mexico Central America Honduras South America ArgentinaBrazil EuropeAustriaBelgium Czech rep. FranceGermanyHollandHungaryItalyIrelandPolandPortugalRomaniaSpainSwedenTurkey United Kingdom Africa Africa Morocco Morocco South Africa South Africa Tunisia Tunisia AsiaChinaJapanIndiaPhilippinesRussia S Korea SingaporeThailandAustralia Europe 36% US/Canada 54% Asia, Mexico and the Rest of the World 10% 2004 Sales $17.0 Billion Lears Global Presence

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Joint product development Access to automotive market also for smaller suppliers Long term cooperation with Preferred Suppliers Support to manage complex JIT logistics Support in international growth Supply to Premium Brands through Lear This development offers substantial opportunities for Suppliers to grow with Lear Supplier Opportunities

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A First Class Supplier Delivers outstanding quality Is highly experienced Has competitive overall costs Is strongly customer focused Is financially stable Is Competitive in the Automotive Environment Supply Base Requirements

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Expectations: Open book calculations, cost breakdowns Target costing Savings proposals and VAVE actions Commitment to yearly cost reductions (LSA) Technical support LCC manufacturing capabilities Accurate tooling follow-up and timing plan Professional change management before and after SOP Tooling audit acceptance Sufficient engineering capabilities Supply Base Requirements

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Supplier must be ISO 9001, QS 9000 or TS 16949 registered Support Advanced Product Quality Planning and control plan (APQP) Perform a production trial run Obtain full Production Part Approval (PPAP level 3; IMDS) Supplier Rating System (SRS) Environmental management program in progress Electronic Data Interchange (EDI) capabilities The Fulfillment of Quality Requirements is a Must! Supply Base Requirements

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Final Supplier Selection will be determined by Sourcing Committee PurchasingEngineering Program Mgmt OperationsQuality Supplier Development Decision Criteria: Quality Engineering Capabilities Logistics LCC Capabilities Product Innovation Total Cost Supplier Selection Process

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Thank You

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Elie Ghazal Lear Corporation Vice President, Quality

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Supplier Development -Purchasing Program Management Process Concept Development Planning Prototype Post Launch Pilot Launch/SOP IPD Launch Mfg./Supplier Readiness Supplier Quality- Supplier Quality Group IPD Red/Yellow/critical Suppliers Sourcing Decision Input Supplier Award SUPPORT Supplier APQP Tracking Program MGMT CFD Info sharing Populating Profile C O M M U N I C A T I O N

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Thank You

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Spencer Gill Lear Corporation Director, Global Business Practices

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LPMP / ProFile Lear Program Management Process - The One Lear Program Mgmt Process - All Products - All Customers - Encompasses Development & Launch - Cross Functional Team - Program Managers are Responsible ProFile - Web based Software - Cross Functional Teams Manage - Timing Plans - Open issues - Documents - Parts - Suppliers - Stats 900 Projects, 12k Users, 75k Issues, & 150k Documents

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Supplier APQP Process Supplier APQP Prototype Prelim. SC/CC Review Engineering Release DFMEA DV Test Equip & Facilities Review Gage & Fixture Review Control Plan Feasibility 31 Items Pilot Packaging Approval SC/CC Review Engineering Release Tool Kick-Off Heat Treat Review Process Flow / Floor Plan PFMEA Pre-Launch Control Plan Process / Operator Instructions Production Tooling Complete Dimensional Approval Appearance Approval Int. Mat. Data System Cert Team Feasibility Run at Rate PPAP Submission PV Testing Doc & Process Review Launch PFMEA Control Plan Launch Containment Plan Ram Up Plan PPAP Approval

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LPMP Supplier APQP OEM Timeline Proto 1 MRDRFQProto 2 MRDPilot 1 MRDLaunch MRDPilot 2 MRD Planning Prototype 1 Prototype 2 Pilot Launch Part Level Supplier APQP When do we know?

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On Line APQP Speed is Critical to our Success! - Real-time by Part Information - Correct, & High Quality Information - Accurate Dates - Quality Documentation

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Lears Expectations Real-time - Use of the On line APQP in ProFile - By Part Current Timing and Documentation Correct and High Quality Information - Single point contact for timing and risks - Same person you hold responsible for launch success On line APQP

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How to enroll? On Line APQP in ProFile

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Click on the Supplier Information link

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A new window will open Click on the Lear link

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DETAILED INSTRUCTIONS FOR SUPPLIER ACCESS TO LEAR APPLICATIONS

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To Login On Line APQP in ProFile

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Click on this link to enter the ProFile System. Tip: The previous steps can be skipped by typing the following in your browser address bar: https://access2.lear.com

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This is the list of Programs you are listed as a Supplier. ie Vehicle and Lear Product These are the components

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Prototype Phase Pilot Phase Launch Phase

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Click here to see a list of Supplier Key Dates

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Auto Status Colors: Green until 2 weeks before Target Turns Yellow 2 weeks before Target Turns Red on Target Date Flagging as Risk Yes overrides auto-status and makes status red! Blue means item has been completed

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Click Notify Lear SQE When Complete

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Next Steps - Go to www.lear.com Supplier Info Web Apps to Establish Supplier Adminwww.lear.com - Supplier Admin grants ProFile APQP access to your Program Managers (or acting PMs) - Go to Web Apps or directly to https://access2.lear.comhttps://access2.lear.com - Keep part APQP up to date in the On Line system - Flag items as a risk as soon a it known LPMP / ProFile

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Thank You

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Bo Carlberg (Presented by Elie Ghazal) Lear Corporation Director, Manufactoring Readiness

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Launch Manufacturing and Supplier Readiness MISSION ; To Assure FLAWLESS LAUNCHES ! Means; Assure that LEAR Plants, and LEAR Suppliers, Have a PLAN, are ORGANIZED, CAPABLE, and COMMITTED, and by Cross Functional TEAMWORK, Fulfilling CUSTOMERS and LEAR DELIVERABLES, EXCEEDING EXPECTATIONS ! Mission Statement

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What is a Launch ? Its Not --- !! A One Day Event, at SOP Business as Usual Something that Program and Engineering are doing A Task, that we will do when things have calmed down a little It Is --- !! A Complex, All Consuming Time Period, that varies much from the normal Plant Deliverables, Outlining the foundation for the next 7 Years, that Requires.. Planning, Dedicated Organization, Extensive Communication, TEAM Work, and Committed People, that has Managements Commitment and Support ! Launch Definition

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Organization

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Launch Team have extended experience in Plant Operations, Program Management, Supplier Readiness, Logistics and Engineering Launch Managers have detailed understanding of Lear expectations Launch Managers are trained in Best Practices Launch Managers are trained in LEAN Principles Launch Managers are skilled enough, to understand, where Expert Assessments are needed, and know where to find them within LEAR Launch Managers is on board 8-12 months prior to SOP Launch Managers utilize the IPD Launch/Mfg. Readiness Handbook, and LEAN Principals Check List, as a base, for their Launch Assessments Launch Managers should be used for Best Practices, LEAN Principles and Design For Assembly Launch Managers, have extended experience, and we will help our Suppliers, to become ready for Launch ! Launch Mfg./ Supplier Readiness TEAM

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We are an Audit Team, verifying the Status of our Launches in LEAR Plants and at our Suppliers. How is the Launch Team Working We are a Recommendation/ Resolution Team, Driving Acceleration and Resolutions, on a Divisional Level. Raising The Flag, to Protect LEARs Launch Performance. We are an Action Team, when Rating is RED, helping Launch Manager / Plant and Suppliers, in a very Hands- on way, Leading Run@Rates, Getting the Decisions made, Working with the Suppliers for Support and Resolution, Hitting our Deliverables, Where and When it has to Happen.

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4 Launch Readiness Reviews - LRR Review #1Review #2Review #3Review #4 8-12 months prior to Launch 6-8 Months prior to Launch 2-4 Months Prior to Launch 1-2 Months prior to Launch Launch Readiness Assessment Plant Program Presentation Launch Manual Overview Review of Deliverables and Roles / Expectations Est. Communication List Supplier Awareness Review - Expectations Launch Readiness Assessment APQP review Open Issue list Supplier Readiness Assessment Process Expert Assessments, if Needed Supplier Launch Plan and Organization Established Manufacturing Readiness Report Review of open Red issues, and Closing Actions Review of Hire, Training and Containment plans Review Manufacturing Process and Run@Rates Supplier Manufacturing Readiness Report Run@Rate Participation Manufacturing Readiness Report Follow up on Open issues Assess Overall Readiness Assign Launch Support Personnel Ensure Standardized Supplier Day Ramp Up on Site Support

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Launch Readiness Assessment

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Bo Carlberg (Presented by Brian Rossiter) Lear Corporation Director, Manufactoring Readiness

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IPD Supplier Readiness One of LEARs main function, in the Supplier Value Stream, is to Co- ordinate the In-Coming Material, and Assemble that for JIT delivery, to our Customer Another item that is imperative, is to ensure that LEAR and all our Suppliers, work as ONE TEAM We are dependent on each others, and none of us are stronger then the weakest link of the Chain

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IPD Supplier Readiness Ensure Flawless Launches throughout Lears Supply Base and sub-supplier base Track suppliers 1 year before launch through SOP + 90 on the Supplier Readiness Assessment The Supplier Readiness Assessment has been added to the launch / manufacturing readiness assessment, this is how suppliers will be tracked Monthly High Risk Supplier meeting for Launch Two supplier days will be held before every launch at the manufacturing facility Supply base will be present at Lear site during all major build events leading up to launch Supply base to be present at launch till plant manager / launch manager releases them

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Supplier Readiness Assessment Summary

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How will this effect LEAR Suppliers ? Early Upfront Communication. Establish LEAR- Supplier Communication List. LEAR will call to Launch Awareness Meetings, 8-12 months prior to SOP. LEAR Launch Readiness and Supplier Quality Staff will visit you, and in depth, review your Launch Plan, Run@Rates, and your progress, towards a Flawless Launch. LEAR will call you to Supplier Day, with Emphasis Builds. Launch on Site Support, from Suppliers, in LEAR Plants, at significant Volume Ramp Up.

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How will this effect LEAR Suppliers ? Top Five High Risk Supplier Meeting For Launch Once a month the launch group brings in suppliers for each high risk launch Suppliers invited are critical suppliers Provide them a base line of expectations. Supplier Participation consists of working level people on the particular launch Two-way communication with the suppliers

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Bo Carlberg (Presented by Elie Ghazal) Lear Corporation Director, Manufactoring Readiness

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Quality Expectations ! Quality First ! Prototype and Pre-series Deliveries, has SAME expectation, in terms of Quality and Timing, as Serial Deliveries, and HIGHER demands, in terms of Documentation, and Follow Up Respect FIFO, at Launches, Engineering Changes makes environment more challenging LEAR expects No Defect or Suspect Part, to be Shipped to LEAR, Contain and Sort at the Source Again, Communicate !

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Planning Expectations ! Organize your Company, for the up-coming Launch Launch Plan, Organization, Company Quality System, Equipment installation, Training and Time Free up Necessary Time, for Key Individuals Management Support and Involvement, at pre- designated Milestones and Go Ahead Gates, are Crucial, for Launch Success Understand that careful Planning, and Execution, add some cost initially, but gives quick Pay-Back, while not spending resources up-front, easily can cost us all a fortune, both in Money and Reputation

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PRODUCT DESIGN / DEVEVELOPMENT VALIDATION TEST SUPPLIER READINESS PLANT INSTALL PLANT TRANING WELL PREPARED LAUNCH Planning Timeline Timing Expectations !

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PRODUCT DESIGN / DEVEVELOPMENT VALIDATION TEST SUPPLIER READINESS PLANT INSTALL PLANT TRANING RISK FOR BAD LAUNCH Typical Timeline Timing Expectations !

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Execution Expectations ! Attend Supplier Awareness Day and Supplier Days, with Key Individuals, and be Active Ensure that you have a Launch/ Mfg. Plan, and that you are tracking your progress daily, and communicate that with LEAR Plant Launch Manager If LEAR is late on a delivery, or prerequisite to you, make that clear to us That your company has made the necessary Contacts with Partners, that will help you, at the LEAR Launch Location, i.e. Technical and Logistical Companies

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Summary If you miss something from LEAR Make it Clear to Us ! Communication is Key, at Launch. Over-Communicate ! Make a Launch Plan, and Ensure Resources for It ! Respect your own Timing and Respect our Timing ! Respect the People Training, Training and Training ! We are a TEAM ONE TEAM, Lets Help Each Others ! If Problems or Risk Arises, Involve LEAR, before a Potential Issue, has become a Fact !

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Final Statement ! KEEP IT GREEN !

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Thank You

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De Icaza Alejandro (Presented by Robin Govani) Lear Corporation Manager, Supplier Quality

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Who are we? Supplier Quality a dedicated comprehensive team located across Europe. Actively working with current supply base to improve overall performance via Top 5 approach and robust PPM roadmaps. Assessing potential suppliers for new programs. To support, facilitate and guide external suppliers during all key phases of a launch. Suppliers communication in respect to systems, requirements and program quality information. Progressively assess readiness of all key suppliers and act accordingly.

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Supplier Quality Initiatives Customer Expectations Spills = 0 RPPMs < 20 Top 5 Activities Problem Solving Techniques Web based Resources Zero PPM Commitment / Expected Improvements Supplier Performance

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Supplier Quality Mission To protect Lear and its customers from Quality Defects and Spills. To continue striving for data accuracy in order to make good quality decisions. To be pro-active in our supplier quality initiatives in order to exceed Lear expectations.

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IPD Supplier Quality Performance 68% Y-O-Y improvement 2003 2004 2005 Goal 420 RPPM from our Suppliers IPD Goal of 20 PPM to our OEMs Approx. 1500 suppliers under IPD Organization Missing the Goal

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Supplied Parts to Lear in 2004 = 2,200,000,000 1 RPPM = 2,200 Non-conforming parts Our Goal for 2005 is 420 RPPM That means 924,000 Bad Parts So far we are at 683 RPPM = 1,502,600 Parts IPD Supplier Quality Performance

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Expected Improvement Typical Industry Standard is 50% improvement Y-O-Y We need to be at these levels in 2005 NOW Customer Expectation