2008 Q1 TRW Auto Earnings Presentation

First Quarter 2008Financial Results Presentation

April 30, 2008

© TRW Automotive Holdings Corp. 2008

Materials Included Pages-Press Release 1-6-Financial Summaries A1-A6-Presentation P1-P25

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

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

John Wilkerson (734) 855-3864

TRW Reports First Quarter 2008 Financial Results; Revises Full Year Outlook

LIVONIA, MICHIGAN, April 30, 2008 — TRW Automotive Holdings Corp. (NYSE:

TRW), the global leader in active and passive safety systems, today reported first-

quarter 2008 financial results with sales of $4.1 billion, an increase of 16.2 percent

compared to the same period a year ago. The Company reported first quarter net

earnings of $94 million or $0.92 per diluted share, which compares to a net loss in the

prior year of $(86) million or $(0.87) per share.

The prior year result included charges of $147 million related to the Company’s debt

recapitalization plan that was initiated in the prior year quarter. The plan was

completed during the second quarter of 2007 and included the refinancing of

substantially all of the Company’s debt, which effectively lowered corporate borrowing

costs, improved covenant flexibility and extended debt maturities. When comparing

results between the two periods, excluding the impact of debt charges in 2007, the

Company’s 2008 first quarter net earnings of $0.92 per diluted share compare favorably

to the prior year adjusted result of $0.60 per diluted share. In comparison, the first

quarter of 2008 benefited primarily from lower expenses related to interest and taxes,

together with higher product volumes and the non-recurrence of certain other expenses

that impacted the 2007 period.

“We have consistently pursued business strategies that improve TRW’s long-term

competitiveness, which has helped the Company overcome difficult industry conditions

and is reflected in our solid first quarter performance,” said John Plant, president and

chief executive officer.

1

“These strategies focus efforts on improving our global market position in safety,

pioneering innovation throughout the organization and implementing our operating

programs in a manner that optimizes both cost and quality.”

Mr. Plant added, “With respect to innovation, TRW is raising the intelligence of safety.

Earlier this year we introduced our vision of Cognitive Safety Systems, which embodies

our goal of helping to keep drivers and passengers safer by making vehicles smarter.

Cognitive Safety represents the culmination of new and better technology that

increasingly uses advanced electronics and proprietary algorithms to sense, analyze

and respond to ever-changing conditions. Cognitive Safety focuses attention on our

advanced capabilities and underscores our role as an intellectual partner to our

customers. In doing so, it also raises our confidence in our ability to provide

sustainable long-term growth for the Company.”

First Quarter 2008 The Company reported first-quarter 2008 sales of $4.1 billion, an increase of $577

million or 16.2 percent over the prior year period. Foreign currency translation

benefited sales in the 2008 quarter by approximately $358 million. First quarter sales,

excluding the impact of foreign currency translation, increased approximately $219

million or 6.1 percent over the prior year period. This increase can be attributed

primarily to significantly higher module sales and industry growth in China and South

America. These positive factors were partially offset by price reductions provided to

customers and the continued decline in North American vehicle production, including

the effects of a supplier-related strike that negatively impacted operations at one of our

customers.

Operating income for first-quarter 2008 was $188 million, which compares favorably to

$175 million in the prior year period. The year-to-year increase was driven by a number

of positive factors, including savings generated from cost improvement and efficiency

programs, higher product sales and the non-recurrence of a business disruption that

negatively impacted the 2007 quarter. These factors were partially offset by price

reductions provided to customers, higher commodity costs and the impact of operating

inefficiencies stemming from historically low vehicle production in North America.

2

The net impact of foreign currency rate fluctuations did not have a material impact on

operating income in the 2008 quarter. Restructuring and asset impairment expenses in

both years were $8 million.

Net interest and securitization expense for the first quarter of 2008 totaled $49 million,

which compares favorably to $64 million in the prior year. Lower borrowing costs in the

2008 quarter can be attributed to the benefits derived from the Company’s previously

mentioned debt recapitalization and the impact of declining interest rates between the

two periods.

Tax expense in the 2008 quarter was $47 million, resulting in an effective tax rate of 33

percent, which compares to $53 million in the prior year period. The effective tax rate in

the 2007 quarter excluding previously mentioned debt retirement charges was 46

percent. The Company expects its full year 2008 effective tax rate to be approximately

38 to 42 percent.

The Company reported first-quarter 2008 net earnings of $94 million or $0.92 per

diluted share, which compares to a net loss of $(86) million or $(0.87) per share in

2007. The 2008 result represents an improvement of $33 million when compared to

2007 net earnings, excluding debt retirement charges, of $61 million or $0.60 per

diluted share.

Earnings before interest, securitization costs, loss on retirement of debt (where

applicable), taxes, depreciation and amortization, or EBITDA, were $337 million in the

first quarter, which compares to the prior year level of $309 million.

Cash Flow and Capital Structure Net cash from operating activities during the first quarter was a use of $115 million,

which compares to a use of $221 million in the prior year period. First quarter capital

expenditures were $97 million compared to $119 million in 2007.

As mentioned previously, the Company refinanced substantially all of its debt in 2007.

In the first-quarter 2007, the Company completed its $1.5 billion Senior Note offering

and repurchased substantially all of its then-outstanding Notes through a tender offer.

The Company incurred debt retirement charges related to this transaction of

approximately $147 million in the first quarter of 2007.

3

As of March 28, 2008, the Company had $3,164 million of debt and $565 million of cash

and marketable securities, resulting in net debt (defined as debt less cash and

marketable securities) of $2,599 million. This net debt outcome is $254 million higher

than the balance at the end of 2007.

2008 Outlook The Company increased its full year outlook and now expects sales to be in the range

of $16.2 to $16.6 billion (including second quarter sales of approximately $4.5 billion).

Full year net earnings per diluted share are now expected to be in the range of $2.30 to

$2.60.

This guidance range reflects pre-tax restructuring expenses of approximately $55

million (including approximately $10 million in the second quarter) and an effective tax

rate in the range of approximately 38 to 42 percent. Lastly, the Company expects

capital expenditures in 2008 to be approximately 3.5 percent of sales.

First Quarter 2008 Conference Call The Company will host its first quarter conference call at 8:30 a.m. (EDT) today,

Wednesday, April 30, to discuss financial results and other related matters. To access

the conference call, U.S. locations should dial (877) 852-7898, and locations outside

the U.S. should dial (706) 634-1095.

A replay of the conference call will be available approximately two hours after the

conclusion of the call and accessible for approximately one week. To access the

replay, U.S. locations should dial (800) 642-1687, and locations outside the U.S. should

dial (706) 645-9291. The replay code is 42019964. A live audio webcast and

subsequent replay of the conference call will also be available on the Company’s

website at www.trw.com/results.

Reconciliation to GAAP In addition to GAAP results included within this press release, the Company has

provided certain information which is not calculated according to GAAP (“non-GAAP”).

Management believes these non-GAAP measures are useful to evaluate operating

performance and/or regularly used by security analysts, institutional investors and other

interested parties in the evaluation of the Company. Non-GAAP measures are not

4

http://www.trw.com/results

purported to be a substitute for any GAAP measure and, as calculated, may not be

comparable to other similarly titled measures of other companies. For a reconciliation

of non-GAAP measures to the closest GAAP measure and for share amounts used to

derive earnings per share, please see the financial schedules that accompany this

release.

About TRW With 2007 sales of $14.7 billion, TRW Automotive ranks among the world's leading

automotive suppliers. Headquartered in Livonia, Michigan, USA, the Company, through

its subsidiaries, operates in 27 countries and employs more than 66,000 people

worldwide. TRW Automotive products include integrated vehicle control and driver

assist systems, braking systems, steering systems, suspension systems, occupant

safety systems (seat belts and airbags), electronics, engine components, fastening

systems and aftermarket replacement parts and services. All references to "TRW

Automotive", “TRW” or the "Company" in this press release refer to TRW Automotive

Holdings Corp. and its subsidiaries, unless otherwise indicated. TRW Automotive news

is available on the internet at www.trw.com.

Forward-Looking Statements This release contains statements that are not statements of historical fact, but instead

are forward-looking statements within the meaning of the Private Securities Litigation

Reform Act of 1995. We caution readers not to place undue reliance on these

statements, which speak only as of the date hereof. All forward-looking statements are

subject to numerous assumptions, risks and uncertainties which can cause our actual

results to differ materially from those suggested by the forward-looking statements,

including those set forth in our Report on Form 10-K for the fiscal year ended

December 31, 2007, such as: loss of market share by domestic North American vehicle

manufacturers and resulting production cuts and restructuring initiatives, including

bankruptcy actions, of our suppliers and customers; escalating pricing pressures from

our customers; commodity inflationary pressures adversely affecting our profitability

and supply base, including any resulting inability of our suppliers to perform as we

expect; our dependence on our largest customers; product liability, warranty and recall

claims and efforts by customers to alter terms and conditions concerning warranty and

recall participation; strengthening of the U.S. dollar and other foreign currency

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http://www.trw.com/

exchange rate fluctuations; work stoppages or other labor issues at our facilities or at

the facilities of our customers or suppliers; our substantial debt and resulting

vulnerability to an economic or industry downturn and to rising interest rates; cyclicality

of automotive production and sales; any increase in the expense and funding

requirements of our pension and other postretirement benefits; risks associated with

non-U.S. operations, including foreign exchange risks and economic uncertainty in

some regions; any impairment of our goodwill or other intangible assets; volatility in our

annual effective tax rate resulting from a change in earnings mix or other factors;

adverse effects of environmental and safety regulations; assertions by or against us

relating to intellectual property rights; the possibility that our largest shareholder’s

interests will conflict with ours; and other risks and uncertainties set forth in our Report

on Form 10-K and in our other filings with the Securities and Exchange Commission.

We do not undertake any obligation to release publicly any revision to any of these

forward-looking statements.

# # #

6

TRW Automotive Holdings Corp.

Index of Consolidated Financial Information Page Consolidated Statements of Operations (unaudited) for the three months ended March 28, 2008 and March 30, 2007...................................................A2 Condensed Consolidated Balance Sheets as of March 28, 2008 (unaudited) and December 31, 2007 .....................................................................A3 Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 28, 2008 and March 30, 2007...................................................A4 Reconciliation of GAAP Net Earnings (Losses) to EBITDA (unaudited) for the three months ended March 28, 2008 and March 30, 2007...................................................A5 Reconciliation of GAAP Net Earnings (Losses) to Adjusted Earnings (unaudited) for the three months ended March 30, 2007....................................................................................A6

The accompanying unaudited condensed consolidated financial information and reconciliation schedules should be read in conjunction with the TRW Automotive Holdings Corp. Annual Report on Form 10-K for the year ended December 31, 2007, as filed with the United States Securities and Exchange Commission on February 21, 2008.

A2


Consolidated Statements of Operations (Unaudited)

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

March 28, 2008

March 30, 2007 Sales ........................................................................................... $ 4,144 $ 3,567 Cost of sales ............................................................................... 3,803 3,251 Gross profit............................................................................ 341 316 Administrative and selling expenses........................................... 132 128 Amortization of intangible assets ................................................ 9 9 Restructuring charges and asset impairments............................ 8 8 Other expense (income) — net................................................... 4 (4) Operating income.................................................................. 188 175 Interest expense — net............................................................... 48 63 Loss on retirement of debt .......................................................... — 147 Accounts receivable securitization costs .................................... 1 1 Equity in earnings of affiliates, net of tax .................................... (7) (6) Minority interest, net of tax.......................................................... 5 3 Earnings (losses) before income taxes................................ 141 (33) Income tax expense.................................................................... 47 53 Net earnings (losses).......................................................... $ 94 $ (86) Basic earnings (losses) per share: Earnings (losses) per share ...................................................... $ 0.93 $ (0.87) Weighted average shares ......................................................... 100.8 98.5 Diluted earnings (losses) per share: Earnings (losses) per share ...................................................... $ 0.92 $ (0.87) Weighted average shares ......................................................... 102.2 98.5

A3


Condensed Consolidated Balance Sheets

(Dollars in millions) As of

March 28,

2008 December 31,

2007 (Unaudited)

Assets

Current assets: Cash and cash equivalents .................................................... $ 562 $ 895 Marketable securities.............................................................. 3 4 Accounts receivable — net..................................................... 2,860 2,313 Inventories .............................................................................. 936 822 Prepaid expenses and other current assets ........................... 336 292

Total current assets..................................................................... 4,697 4,326

Property, plant and equipment — net ......................................... 2,995 2,910 Goodwill ...................................................................................... 2,249 2,243 Intangible assets — net............................................................... 724 710 Pension asset.............................................................................. 1,506 1,461 Other assets................................................................................ 660 640

Total assets ............................................................................. $ 12,831 $ 12,290

Liabilities, Minority Interests and Stockholders’ Equity

Current liabilities: Short-term debt ...................................................................... $ 80 $ 64 Current portion of long-term debt........................................... 20 30 Trade accounts payable......................................................... 2,666 2,406 Accrued compensation .......................................................... 296 298 Other current liabilities ........................................................... 1,027 917

Total current liabilities ................................................................. 4,089 3,715

Long-term debt............................................................................ 3,064 3,150 Postretirement benefits other than pensions............................... 586 591 Pension benefits.......................................................................... 516 497 Other long-term liabilities ............................................................ 1,046 1,011

Total liabilities.......................................................................... 9,301 8,964

Minority interests ......................................................................... 144 134

Commitments and contingencies

Stockholders’ equity: Capital stock .......................................................................... 1 1 Treasury stock........................................................................ — — Paid-in-capital ........................................................................ 1,182 1,176 Retained earnings.................................................................. 495 398 Accumulated other comprehensive earnings......................... 1,708 1,617

Total stockholders’ equity............................................................ 3,386 3,192 Total liabilities, minority interests, and stockholders’ equity .... $ 12,831 $ 12,290

A4


Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions) Three Months Ended March 28, 2008 March 30, 2007 Operating Activities Net earnings (losses) ......................................................................... $ 94 $ (86) Adjustments to reconcile net earnings (losses) to net cash used in operating activities:

Depreciation and amortization.......................................................... 147 131 Net pension and other postretirement benefits income and contributions ................................................................................... (54)

(41)

Loss on retirement of debt................................................................ — 147 Other — net ...................................................................................... (23) 10

Changes in assets and liabilities, net of effects of businesses acquired:

Accounts receivable — net............................................................. (420) (420) Inventories...................................................................................... (58) (37) Trade accounts payable ................................................................. 150 121 Prepaid expense and other assets................................................. (15) (36) Other liabilities................................................................................ 64 (10) Net cash used in operating activities.............................................. (115) (221)

Investing Activities Capital expenditures, including other intangibles ............................... (97) (119) Acquisitions, net of cash acquired...................................................... (40) (12) Termination of interest rate swaps ..................................................... — (12) Net proceeds from asset sales and sales/leasebacks ....................... 1 7

Net cash used in investing activities............................................... (136) (136) Financing Activities Change in short-term debt.................................................................. 14 36 Net repayments on revolving credit facility ........................................ (90) — Proceeds from issuance of long-term debt, net of fees...................... 4 1,477 Redemption of long-term debt............................................................ (43) (1,396) Proceeds from exercise of stock options............................................ 2 5

Net cash (used in) provided by financing activities ........................ (113) 122 Effect of exchange rate changes on cash .......................................... 31 — Decrease in cash and cash equivalents............................................. (333) (235) Cash and cash equivalents at beginning of period............................. 895 578 Cash and cash equivalents at end of period ...................................... $ 562 $ 343

A5


Reconciliation of GAAP Net Earnings (Losses) to EBITDA (Unaudited)

The reconciliation schedule below should be read in conjunction with the TRW Automotive Holdings Corp. Form 10-K for the year ended December 31, 2007. The EBITDA measure calculated in the following schedule is a measure used by management to evaluate operating performance. Management believes that EBITDA is a useful measurement because it is frequently used by securities analysts, institutional investors and other interested parties in the evaluation of companies in our industry. EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net earnings (losses) as an indicator of operating performance, or to cash flows from operating activities as a measure of liquidity. Additionally, EBITDA is not intended to be a measure of free cash flow for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Because not all companies use identical calculations, this presentation of EBITDA may not be comparable to other similarly titled measures of other companies.

(Dollars in millions) Three Months Ended March 28, 2008 March 30, 2007 GAAP net earnings (losses).......................................... $ 94 $ (86)

Income tax expense................................................ 47 53 Interest expense — net ........................................... 48 63 Loss on retirement of debt ...................................... — 147 Accounts receivable securitization costs................. 1 1 Depreciation and amortization ................................ 147 131

EBITDA......................................................................... $ 337 $ 309


Reconciliation of GAAP Net Earnings to Adjusted Earnings (Unaudited)

In conjunction with the Company’s tender offer and repurchase on March 26, 2007 of its then outstanding 9⅜% Senior Notes and 10⅛% Senior Notes in original principal amounts of $925 million and €200 million, respectively, and 11% Senior Subordinated Notes and 11¾% Senior Subordinated Notes in original principal amounts of $300 million and €125 million, respectively, the Company recorded a loss on retirement of debt of $147 million. This loss included $111 million for redemption premiums paid, $20 million for the write-off of deferred debt issuance costs, $11 million relating to the principal amount in excess of carrying value of the 9⅜% Senior Notes and $5 million of fees. No tax benefit was recognized relating to the loss on retirement of debt due to the Company’s tax loss position in the respective jurisdiction. The following reconciliation excludes the impact of the loss on retirement of debt.

(In millions, except per share amounts)

Three MonthsEnded

March 30, 2007

Actual Adjustments

Three Months Ended

March 30, 2007

Adjusted

Sales...................................................................... $ 3,567 $ — $ 3,567

Cost of sales.......................................................... 3,251 — 3,251

Gross profit ........................................................ 316 — 316

Administrative and selling expenses ..................... 128 — 128

Amortization of intangible assets .......................... 9 — 9

Restructuring charges and asset impairments...... 8 — 8

Other income — net .............................................. (4) — (4)

Operating income.............................................. 175 — 175

Interest expense, net............................................. 63 — 63

Loss on retirement of debt..................................... 147 (147) (a) —

Accounts receivable securitization costs............... 1 — 1

Equity in earnings of affiliates, net of tax............... (6) — (6)

Minority interest, net of tax .................................... 3 — 3

(Losses) earnings before income taxes ............ (33) 147 114

Income tax expense ............................................. 53 — 53

Net (losses) earnings ....................................... $ (86) $ 147 $ 61

Effective tax rate.................................................... n.m. 46%

Basic (losses) earnings per share:

(Losses) earnings per share ............................... $ (0.87) $ 0.62

Weighted average shares ................................... 98.5 98.5

Diluted (losses) earnings per share:

(Losses) earnings per share ............................... $ (0.87) $ 0.60

Weighted average shares ................................... 98.5 101.6 (b)

(a) Reflects the elimination of the loss on retirement of debt. (b) Includes approximately 3.1 million shares that have been excluded from the GAAP diluted losses per share calculation for the three

months ended March 30, 2007, as the effect was anti-dilutive due to the net loss reflected for such period. n.m. – not meaningful

A6

First Quarter 2008Financial Results Presentation

April 30, 2008

© TRW Automotive Holdings Corp. 2008

IntroductionPatrick StobbDirector, Investor Relations

Business SummaryJohn C. PlantPresident and Chief Executive Officer

P3© TRW Automotive Holdings Corp. 2008

Safe Harbor Statement

This presentation contains statements that are not statements of historical fact, but instead are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We caution readers not to place undue reliance on these statements, which speak only as of the date hereof. All forward-looking statements are subject to numerous assumptions, risks and uncertainties which can cause our actual results to differ materially from those suggested by the forward-looking statements, including those set forth in our Report on Form 10-K for the fiscal year ended December 31, 2007, such as: loss of market share by domestic North American vehicle manufacturers and resulting production cuts and restructuring initiatives, including bankruptcy actions, of our suppliers and customers; escalating pricing pressures from our customers; commodity inflationary pressures adversely affecting our profitability and supply base, including any resulting inability of our suppliers to perform as we expect; our dependence on our largest customers; product liability, warranty and recall claims and efforts by customers to alter terms and conditions concerning warranty and recall participation; strengthening of the U.S. dollar and other foreign currency exchange rate fluctuations; work stoppages or other labor issues at our facilities or at the facilities of our customers or suppliers; our substantial debt and resulting vulnerability to an economic or industry downturn and to rising interest rates; cyclicality of automotive production and sales; any increase in the expense and funding requirements of our pension and other postretirement benefits; risks associated with non-U.S. operations, including foreign exchange risks and economic uncertainty in some regions; any impairment of our goodwill or other intangible assets; volatility in our annual effective tax rate resulting from a change in earnings mix or other factors; adverse effects of environmental and safety regulations; assertions by or against us relating to intellectual property rights; and the possibility that our largest shareholder’s interests will conflict with ours. We do not undertake any obligation to release publicly any revision to any of these forward-looking statements.


Summary Comments

• TRW reports solid first quarter results:– Healthy growth in sales and earnings– Continued demand for increased safety content

and leading diversification providing good momentum

– Successfully offset commodity inflation and lower North American production

• TRW has consistently executed business strategies that improve its long-term competitiveness……focusing efforts on:– Elevating global market position in safety– Pioneering innovation– Optimizing both cost and quality

• TRW is a results-oriented organization with a passion for continuous improvement and a drive for efficiency.

Performance and Commitment to Core Strategies Helping to

Drive Success


$3,567

$4,144

Q1 2007 Q1 2008

First Quarter Summary

16% Growth

Sales Summary

Vehicle Production(c)(% changes based on year-over-year comparisons)

Financial Summary(US $ in millions, except were noted)

North AmericaBig 3 -13.4%EU OE -1.9%Asian OE -0.7%Total Region -8.8%

East 16.6%

China 5.9%

South America 22.4%

India 16.6%Korea 3.9%Japan 5.5%

Total Region 1.7%

ROW

EuropeWest -3.2%

43.0%ROW 11.8%Europe 15.6%North America

Net Earnings Summary

(a) Excludes $147 million of debt retirement charges. For adjusted results reconciliation to GAAP, please see slide P17.(b) Per share amounts based on basic shares for (losses) and diluted shares for earnings.(c) Production volumes based on CSM Worldwide data.

Q1 2008

GAAP Adjusted(a) GAAP

Net Earnings (Losses) (86)$ 61$ 94$

Earnings (Losses) Per Share(b) (0.87)$ 0.60$ 0.92$

Q1 2007


Redefining Automotive Safety

• Introduced our vision of Cognitive Safety Systems during first-quarter 2008.• Embodies goal of helping keep drivers and passengers safer by making

vehicles smarter.• Represents the culmination of new and better

technologies that increasingly use advanced electronics and proprietary algorithms to…

SenseAnalyze

AnticipateRespond

• Demonstrates how TRW is raising the intelligence of safety.



• TRW invests significant amounts of capital each year to engineer its products globally:

– Investment has increased approximately 49% since 2003– Technology critical to winning new contracts– Increasing use of electronics is driving the future of our business

• TRW positioned at the forefront of safety, with new developmentsrelated to radar systems, electrically powered steering, electric park brake, advanced airbags and stability control.

• Heightened emphasis on electronics driving the evolution of our capabilities. Intelligent Safety

Increasing Use of Electronics Key to the

Future of TRW


• TRW effectively competes and manages its business across the spectrum of safety.

• Underscores our role as a strong intellectual partner to our customers.

• Focuses attention on our innovation and ingenuity.

• Prominence in active and passive safety helps differentiate TRW in the marketplace.


COMPONENTS

SUPPLIER INTELLECTUALPARTNER

INTEGRATION

SYSTEMS

COMPONENTS

COGNITIVE SAFETY SYSTEMS

SYSTEMS


Quarterly Developments

• Plant awards and recognition:

– Peterlee, UK Electronics facility received the “2008 Queens Award for Enterprise” under the category of International Trade

– Engineered Fasteners and Components plant in Queretaro, Mexico received the Honda deMéxico ‘Excellence Award’ for quality

• TRW has been winning new business at a rate that supports top-line growth expectation of approximately a 4 percent compound annual growth rate.

• TRW placed among the elite in Quality Magazine’s 2008 Quality Leadership 100 rankings, which measures quality effectiveness of more than 800 manufacturing companies from a broad range of industries.



• Cost pressures from commodity inflation continue to intensify: – Pricing of steel and other commodities expected to worsen significantly during

the remaining quarters– Gross full year impact now expected at $100 million or higher– Combination of higher commodity costs and record low production

volumes in North America have increased concerns that supply base will weaken further

• Labor related issues impacting North American production:– American Axle strike, now in its 3rd month, hampering vehicle production at GM.– First Quarter impact of strike was not material to TRW, with approximately $55

million in lost revenue– Continue to monitor and develop contingency plans to address the potential for

more widespread impact to GM in North America



Successfully launched 85 programs during Q1…

• Dodge Journey: Front Brake Calipers, Side Airbags, Seat Belt Retractors, Chassis Modules (Rear Brake Calipers and Steering Gear), Steering Column Control Module and Angle Sensor, HVAC Controller and Actuators

• Volkswagen Jetta (China): Driver Airbag and Inflator, Brake Rotors, Rear Brake Calipers, Steering Wheel, Chassis Modules

• Citroën Berlingo, Berlingo Van, Peugeot Partner, and Partner Van: Side-Driver-Passenger-Curtain Airbags, Steering Wheels, Rear Brake Calipers, Electrically Powered Hydraulic Steering Power Pack, Actuation

Dodge Journey

Volkswagen Jetta

Citroën Berlingo

Peugeot Partner


10.8 10.1 8.7 8.6

5.0 5.2 5.6 5.8 5.6

9.5

2005 2006 2007 2008EOLD

2008ENEW

Big 3 Transplants

15.9 15.6

4.1 4.9 5.8 6.4 6.7

15.5 15.615.8

2005 2006 2007 2008EOLD

2008ENEW

Western Eastern

10.0 10.6 10.8 11.0 10.9

4.8 5.7 6.9 7.7 7.83.6 3.8

4.0 3.9 3.93.94.0

4.6 5.6 5.5

2005 2006 2007 2008EOLD

2008ENEW

Japan China Korea South Asia

• Forecast for North American production lowered to approximately 14.2 million units –lowest production level since 1993.

• European production raised based on growth in Eastern Europe. No change to Western Europe estimate.

• Steady growth forecasted for Asia and South America.

• Revised Euro rate assumptions upward, which is reflected in the increased full year sales guidance.

• Commodity inflation pressures to continue, with significant increases expected in the remaining quarters.

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

South America

North America

Asia

Europe21.720.419.915.115.315.8

14.522.3

2008 Operating Environment

2008 Industry Production Assumptions(1)(units in millions)

2.8 3.0 3.6 4.14.0

2005 2006 2007 2008EOLD

2008ENEW

14.222.0


2008 Full Year Outlook

(a) Per share amounts based on assumed weighted average diluted shares outstanding of approximately 103.5 million shares.

Sales $16.2 - $16.6 billionNet Earnings per Diluted Share(a) $2.30 to $2.60Restructuring Expenses (pre-tax) $55 millionCapital Spending approx. 3.5% of salesEffective Tax Rate approx. 38% - 42%

TRW is Optimistic About the Future – Bolstered by Leading Customer and Geographic Diversification, Innovation and a Track Record of Steady

Performance During Difficult Conditions.

Financial OverviewJoseph S. CantieExecutive Vice Presidentand Chief Financial Officer


First Quarter 2008 Summary

• Performed well in the first quarter, marking a good start for the year.

• Results at high end of company expectations due to better than expected growth overseas and lower expenses related to interest and taxes.

• Raising full year 2008 guidance, considerationsinclude:– Strength of first quarter results– Improved fundamentals at some

of our businesses– Current assumptions for commodities

and vehicle volumes carry measurabledownside risk

We Believe TRW is in a Good Position to Deliver

Another Year of Solid Financial Results


Foreign CurrencyProduct Volumes

Modules New ProductsVehicle Production

Customer Pricing

$3,567

$4,144

Q1 2007 Q1 2008

Total SalesUS $ in millions

Q1 YOY Sales Comparison

First Quarter Sales Summary

+16%

Geographic Sales Mix% of total sales

$1,896

$1,182

$489

$2,342

$1,274

$528

Q1 2007 Q1 2008

ChassisOSSAuto Comp

Q1 2007 Q1 2008

Segment SalesUS $ in millions

Rest of World 10.3%

North America

30.5%Europe59.2%

Rest of World 12.7%

North America

30.3%Europe57.0%


(a) $147 million loss on retirement of debt related to the Company’s 2007 debt recapitalization.(b) Please refer to slide P23 for management’s rationale for using this metric and slide P24 for a reconciliation to GAAP.(c) Includes approximately 3.1 million shares that have been excluded from the GAAP diluted losses per share calculation for the three months ended

March 30, 2007, as the effect was anti-dilutive due to the net loss reflected for such period.

First Quarter Results

(US $ in millions, except where noted)

GAAP Results

GAAP Results

Adjusting Item

Adjusted Results

Sales 4,144$ 3,567$ -$ 3,567$ Operating Income 188 175 - 175 Net Interest and Securitization 49 64 - 64 Loss on Retirement of Debt - 147 (147) (a) - Equity in Earnings of Affiliates (7) (6) - (6) Minority Interest 5 3 - 3 Income Tax Expense 47 53 - 53 Effective Tax Rate 33% n.m. 46%Net Earnings (Losses) 94$ (86)$ 147$ 61$ Share Count 102.2 98.5 101.6 (c)

Earnings (Losses) Per Share 0.92$ (0.87)$ 0.60$

EBITDA(b) 337$ 309$

Q1 2008 Q1 2007


Q1 2007 Q1 2008Cash 343$ 562$ Marketable Securities 11 3 Total Cash & Marketable Securities 354$ 565$

3,309 3,164 Total Equity 2,327 3,386 Total Capital 5,636$ 6,550$

Total Debt / Capital Ratio 59% 48%

Net Debt(a) 2,955$ 2,599$ (a) Total debt less total cash & marketable securities.

Total Debt

Period-End Balances

Capital Structure Summary

Operating Cash Flow: 2007 2008

First Quarter (221)$ (115)$

Memo:Capital Expenditures (119) (97) Operating Cash Flow After Capital Expenditures (340)$ (212)$

$119

$97

Q1 2007 Q1 2008

Operating Cash FlowUS $ in millions

Capital ExpendituresUS $ in millions

Capital StructureUS $ in millions


$3,437

$2,964

$2,372$2,560

$2,443

$2,955

$2,345$2,599

Feb 28, 2003 Dec 31, 2003 Dec 31, 2004 Dec 31, 2005 Dec 31, 2006 Mar 30, 2007 Dec 31, 2007 Mar 28, 2008

Capital Structure Summary

(a) Net debt is equal to total debt less cash and marketable securities. For net debt reconciled to the closest GAAP equivalent, please refer to slide P25.

Dalphimetal acquisition increased net debt

by $244 million

Debt transaction increased net debt by $57 million

Debt transactions increased net debt by approximately $130 million

Net Debt (a)

US $ in millions


Outlook Discussion

Full Year• Raised full year sales guidance to $16.2 - $16.6 billion:

– Decline in North American volume expected to be significant with the Big 3 producing nearly 900 thousand fewer vehicles

– Positives include safety content growth, stability in Europe and higher vehicle volumes in Asia and South America

– Expect lower margin module sales to increase $800 to $900 million in 2008– Currency effect will provide measurable upside to sales – no material impact to

income expected

• Increased full year earnings to $2.30 to $2.60 per share.

Second Quarter• Sales increase to approximately $4.5 billion due primarily to currency and modules.• North American production environment will be difficult. Expect offsets from safety

content growth and strength of overseas operations.

• Restructuring expense of approximately $10 million.

Financial Reconciliations


EBITDA Measurement

The accompanying unaudited consolidated financial information and reconciliation of GAAP net earnings to earnings before interest, income tax, accounts receivable securitization cost, loss on retirement of debt, and depreciation and amortization (“EBITDA”) should be read in conjunction with the TRW Automotive HoldingsCorp. Form 10-K for the year ended December 31, 2007, as filed with the United States Securities and Exchange Commission.

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

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


First Quarter EBITDA

(US $ in millions, except where noted)

Q1 2008 Q1 2007GAAP Net Earnings (Losses) 94$ (86)$ Income Tax Expense 47 53 Net Interest & Securitization 49 64 Loss on Retirement of Debt - 147 Depreciation & Amortization 147 131 EBITDA 337$ 309$

Memo:Restructuring & AssetImpairments Included in EBITDA 8$ 8$


Net Debt Reconciliation

(US $ in millions)2/28/03 12/31/03 12/31/04 12/31/05 12/31/06 3/30/07 12/31/07 03/28/08

Cash 449$ 828$ 790$ 659$ 578$ 343$ 895$ 562$ Marketable securities 26 16 19 17 11 11 4 3

Total cash and marketable securities 475 844 809 676 589 354 899 565

Short term debt 168 76 40 98 69 125 64 80 Term loan facilities 1,510 1,480 1,512 1,593 1,582 1,579 1,098 1,098 Revolving credit facilities - - - - - - 429 339 Senior & senior subordinated notes due 2013 1,577 1,636 1,369 1,255 1,284 26 19 - Senior notes due 2014 and 2017 - - - - - 1,467 1,505 1,522 Lucas Varity senior notes 167 189 202 181 - - - - Other borrowings 142 45 58 109 97 112 129 125 Northrop seller note 348 382 - - - - - -

Total debt 3,912 3,808 3,181 3,236 3,032 3,309 3,244 3,164 Net debt 3,437$ 2,964$ 2,372$ 2,560$ 2,443$ 2,955$ 2,345$ 2,599$

Period-End Balances

2008 Q1 TRW Auto Earnings Presentation

Economy & Finance

Transcript of 2008 Q1 TRW Auto Earnings Presentation