Automotive Holdings Corp

CSFB Global Automotive ConferenceSeptember 8, 2004

CSFB Global Automotive CSFB Global Automotive ConferenceConferenceSeptember 8, 2004

Automotive Holdings Corp.Automotive Holdings Corp.

© TRW Automotive Holdings Corp. 20042

Business OverviewJohn C. PlantPresident and Chief Executive Officer

Business OverviewBusiness OverviewJohn C. PlantPresident and Chief Executive Officer

This material contains statements that are not statements of historical fact, but instead are forward-looking statements. All forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those contained in forward-looking statements made in this release. Such risks, uncertainties and other important factors which could cause our actual results to differ materially from those contained in our forward-looking statements are set forth in the TRW Automotive Holdings Corp. final prospectus dated as of February 2, 2004 (the "Prospectus") filed with the Securities and Exchange Commission (the "SEC") pursuant to Rule 424(b)(4), our Report on Form 10-K for the fiscal year ended December 31, 2003 (the “10-K”), and our Reports on Form 10-Q for the quarters ended March 26 and June 25, 2004, and include: our substantial leverage; the highly competitive automotive parts industry and its cyclicality; pricing pressures from our customers; increasing costs for purchased components and raw materials; non-performance by, or insolvency of, our suppliers; product liability and warranty and recall claims; our dependence on our largest customers; limitations on flexibility in operating our business contained in our debt agreements; increases in interest rates; fluctuations in foreign exchange rates; the possibility that our owners' interests will conflict with ours; work stoppages or other labor issues and other risks and uncertainties set forth under "Risk Factors" in the Prospectus, in the 10-K and in our other SEC filings. We do not intend or assume any obligation to update any of these forward-looking statements.

Safe Harbor StatementSafe Harbor Statement



Leadingmarket positions in primary product lines

Largestportfolio of safety products in the world

Growthdriven by increasing safety content in vehicles

Sales of $11.3 billion in 2003, with 80% of OE sales derived from safety related products60,800 employees worldwide located in 22 countries serving the world’s major OEMsA network of over 200 manufacturing facilities, technical centers, sales offices and joint ventures located in every major vehicle producing regionOur sales are among the most diverse in the industry based on geography, product and customer mix

“Safety Sells”strategically focused product emphasis

Financials(1) ProductsSales: $6,491 Foundation Brakes% of Sales: 58% ABS/VSCPBT Margin: 4% Steering Systems

Financials(1) ProductsSales: $3,306 Air Bags% of Sales: 29% Seat Belt SystemsPBT Margin 9% Safety Electronics

Steering Wheels

Financials(1) ProductsSales: $1,511 Engineered Fasteners% of Sales: 13% Body ControlsPBT Margin 8% Engine Components


TRW Operating SegmentsTRW Operating Segments

(1) See pages 38-42 of the company’s 2003 Form 10-K for a reconciliation of actual to pro forma results; Amounts exclude pro forma non-segment charges, including corporate costs of $115 million, financing costs of $333 million and net employee benefits income of $14 million.

ChassisSystems

“Active Safety”

ChassisChassisSystemsSystems

““Active SafetyActive Safety””

Occupant SafetySystems

“Passive Safety”

Occupant SafetyOccupant SafetySystemsSystems

““Passive SafetyPassive Safety””

AutomotiveComponentsAutomotiveAutomotive

ComponentsComponents


• Focused product portfolios devoted to growing Active and Passive Safety businesses

• Ownership and capital structure that supports strategy and growth

• Leverage diversification to strengthen customer base

• Use cash flow to optimize shareholder value

• Strategically focus R&D resources across the globe

TRW –Transition ContinuesTRW –Transition Continues

• Large conglomerate with competing resources

• Automotive operated as an asset for sale business, which constrained

– Capital investment– Customer awards– Growth strategies– Research &

development

• Automotive segments operated independently prior to 2001

2001-20022001-2002 2003-Beyond2003-Beyond

• Automotive operations consolidated into single organizational structure

• Extensive restructuring completed to recognize synergies

• Began implementing consistent processes and practices company-wide

• Strengthened competitive stature by establishing single face to customer

• Cash flow funded defense businesses

Prior to 2001Prior to 2001

ENHANCING CUSTOMER FOCUS AND SHAREHOLDER VALUE ENHANCING CUSTOMER FOCUS AND SHAREHOLDER VALUE

– 85% of purchasers stated that they looked for vehicle safety information before making their decision—up from 68% in 1999*

– J.D. Power lists safety as the most desired aspect of vehicle features

– NHTSA side impact protection (FMVSS214)– Occupant sensing (FMVSS208)– TREAD Act - tire pressure monitoring and

rollover testing– Fuel economy– Pedestrian protection

– Utilizing safety to differentiate vehicles– Adopting voluntary standards

Safety Sells, with…Safety Sells, with…

Front crush zone sensors

Enhanced Accident Response System

Three-point seat belts in all positions

Belt alert

Standard ABS and electronic brake force distribution

Side-impact air bag sensors

Head rests in all positions

Curtain air bags with front and rear coverage

Advanced air bags

Seat belt pretensioners, constant force retractors

Energy absorbing steering column and rear mounted steering rack

2003 Mercedes-Benz E-Class – Safety and security features

*The insurance Research Council and Roper ASW report on vehiclesafety-2002

ConsumersConsumersConsumers

GovernmentsGovernmentsGovernments

ManufacturersManufacturersManufacturers



Safety Sells, Buzz ContinuesSafety Sells, Buzz ContinuesNew camera‐based occupant sensor passes NHTSA test

New camera‐based occupant sensor passes NHTSA test

“TRW Automotive Holdings says the occupant sensing vision system developed by its TRW Vehicle Safety Systems subsidiary now meets the US National Highway Traffic Safety Administration's (NHTSA) FMVSS 208 static test requirements for out-of-position occupant sensing, and is the first system of its type to have been recognisedby TRW customers for thisachievement.”

Suppliers see sales swelling if airbag rules are are adopted

Suppliers see sales swelling if airbag rules are are adopted

“Airbag makers, including TRW Automotive Inc., are preparing for higher volumes of their side-impact and side-curtain airbags as automakers expect new safety rules.”

“The National Highway Traffic Safety Administration is proposing rules to protect an occupant's head and body in a side collision. The rule doesn't mandate airbags, but the proposed crash-test standards make side-impact and side-curtain airbags the most obvious remedy.”

Toyota Strengthens Traffic Safety Initiatives

Toyota Strengthens Traffic Safety Initiatives

“Toyota has positioned the “realization of a safe mobile society” as a priority management issue and continues to take a comprehensive approach in improving both vehicle safety and traffic safety through “the development of even safer vehicles…”

“Development of new technologies for strengthening preventive safety and pre-crash safety Toyota plans to strengthen its work on preventive safety, which can prevent accidents, and collision detection, which can help reduce injury during a collision.”

Honda’s commitment to safety.

Honda’s commitment to safety.

“Honda has been a leader in the area of automotive safety research and design. As part of our continuing safety efforts, Honda plans to lead the industry into the future. By the end of 2006, our commitment to “Safety for Everyone” will equip virtually every Honda and Acura vehicle*, regardless of size or price, with the following safety features as standard equipment:

• Front side airbags with Occupant Position Detection System…

• Side curtain airbags for every row…

• Anti-lock braking system (ABS)…

• Vehicle Stability Assist (VSA) and rollover sensor…

• Pedestrian Safety…”

Just-Auto.com27 July 2004


Automotive NewsJuly 12, 2004

www.toyota.co.jp/en/newsJune 3, 2004

The Wall Street Journal July 2, 2004


“TRW Automotive Holdings says the occupant sensing vision system developed by its TRW Vehicle Safety Systems subsidiary now meets the US National Highway Traffic Safety Administration's (NHTSA) FMVSS 208 static test requirements for out-of-position occupant sensing, and is the first system of its type to have been recognisedby TRW customers for thisachievement.”

Regulations prompt automakers’focus on safety technology

Regulations prompt automakers’focus on safety technology

“After years of equipping vehicle interiors with safety technology to protect occupants, automakers are focusing their efforts on the outside.”

“The goal is to use technology for crash prevention; but if a crash is imminent, use the technology to put the vehicle and its occupants in the best position possible to protect against injury.”

“Some of that effort is driven by regulation, including a federal mandate that all vehicles have occupant-sensing technology by the 2006 model year that suppresses airbag deployment for small passengers.”

ForbesApril 2, 2004


• Best positioned to provide a complete range of safety products

• Diversified product portfolio with leading market positions in mostly non-fragmented markets

• Rich customer mix with largest customer at only 18% of 2003 sales

• Gaps in customer portfolio are opportunities for growth

• Although Automotive Components not part of safety, profitable and generates cash

Focused Product PortfolioFocused Product Portfolio

Steering Systems

16%

Airbags

13.8%

FoundationBrakes

13.1% Seat Belts

9.6%

ABS& VSC9.1%

Aftermarket6.8%

Modules5.8%

Linkage &Suspension 5.5%

Body Controls 5.0%

Engine Valves 4.6%

Safety Electronics 3.9%

Fasteners 3.1% 2.7% Other

1.0%

Steering Wheels

PRODUCT MIX

CUSTOMER MIX

Ford

18.4%

Daimler Chrysler

16.3%

Volkswagen

15.0%

General Motors

13.2%

Renault/Nissan8.1%

Fiat 4.5%

PSA 3.5%

Toyota 3.0%BMW 1.9%

Hyundai 1.5%

Honda 1.4%Other

13.2%

Note: Percentages based on full-year 2003 pro forma sales


Geographic Diversity/Growth DriversGeographic Diversity/Growth Drivers

9%

50%41%

9%

50%41%

North AmericaMarginal industry growth (Big-3 declining share)Side-impact & rollover protection growthStrongest “Safety Buzz”of all regionsFocused efforts on building transplant customer book

EuropeModest industry growthLargest sales region w/ best customer diversityGrowth fueled by:

EPSVSCAir Bags

Leading technology development

ROWRapid industry growthLeveraging existing infrastructureExperienced JV partnersInvesting to grow (A-P focus)

Geographic Sales Mix

EuropeN.A.

Note: Percentages based on full-year 2003 pro forma sales


Technology/Content DriversTechnology/Content DriversToday’s DriversTodayToday’’s Driverss Drivers Tomorrow’s DriversTomorrowTomorrow’’s Driverss Drivers

Bra

king

Bra

king

Bra

king

Stee

ring

Stee

ring

Stee

ring

OSS

OSS

OSS

• Transition from conventional hydraulic-based braking to electronically controlled braking

• Safety awareness and product differentiation • Continued penetration of ABS and vehicle

stability control in vehicles

• Demand from consumers, government legislation and manufacturers for safer vehicles

• Smarter air bags such as dual stage inflator coupled with occupant sensing

• Increased use of pretensioners• Integration of seat belts into comprehensive

safety system (Active Control Retractor)

• Demand for increased fuel economy and performance

• Greater penetration for electric-based solutions

• Euro crash standards

• Integration of chassis systems for enhanced functionality

• Increased demands for driver support functionality

• Demand for electric steering on high-end vehicles

• Increased Active/Passive safety system functionality

• Side-impact regulation in North America

• Rollover protection in SUV/light truck

• Market expansion in China coupled with demand for today’s technology

• Pedestrian protection systems in Europe and Japan

• Tire pressure monitoring fitment in North America (TREAD Act)

• Electronics and sensors as key technology enablers

Convergence of Active and Passive SafetyConvergence of Active and Passive SafetyFoundation

Brakes

Bra

king

Bra

king

Stee

ring

Stee

ring

Occ

upan

t Saf

ety

Syst

ems

Occ

upan

t Saf

ety

Syst

ems

Anti-lock Braking Systems

Vehicle Stability Control

Collision Warning/ Mitigation

Active Cruise Control

Manual Steering

Hydraulic Power Steering

Electrically Powered Hydraulic Steering

Electrically Assisted

Power Steering

Lane Guidance/Keeping

Driver Air Bags

Passenger Air Bags

Curtain & Side Air Bags

Occupant Sensing

Pedestrian Protection

Seat Belts

Rear Pretensioners

Active Control Retractor

Front Pretensioners

Act

ive

Integrated Vehicle Safety System

Pass

ive

ELECTRONICS & SENSORS AS KEY TECHNOLOGY ENABLERSELECTRONICS & SENSORS AS KEY TECHNOLOGY ENABLERSELECTRONICS & SENSORS AS KEY TECHNOLOGY ENABLERS


Note: Listed technologies either in production or under development, of which a commercial application may not yet be available

• Expect approximately 4% CAGR top-line annual growth over the foreseeable future:– Flat to moderate industry growth– Constant exchange– Pricing factor

• Pending U.S. regulations should be a lift to this revenue growth

• Consumer safety “Buzz” growing louder, driving demand for new technologies

• Growth in Asia – leveraging infrastructure and working with partners around the world

• Pursuing further opportunities to improve business mix with Japanese and Korean manufacturers

Growing the BusinessGrowing the Business

CAGR PROVIDES BALANCED PROXY FOR FORWARD REVENUECAGR PROVIDES BALANCED PROXY FOR FORWARD REVENUECAGR PROVIDES BALANCED PROXY FOR FORWARD REVENUE



Managing the Business EnvironmentManaging the Business Environment• Industry pressures

– OE cost-down environment– Market competition– Inflationary pressures from material and labor– New product launches

• Succeeding in this tough environment– Product innovation– Manufacturing programs (Six Sigma / Business Excellence)– Purchase initiatives to reduce material cost and usage– Balance technology with cost and skill requirements

• Growth and innovation provide a basis for cost initiatives

TRW COMMITMENT TO STRATEGY PAVING THE WAY FOR SUCCESS TRW COMMITMENT TO STRATEGY PAVING THE WAY FOR SUCCESS TRW COMMITMENT TO STRATEGY PAVING THE WAY FOR SUCCESS

© TRW Automotive Holdings Corp. 200415(1) Manufacturing facilities includes majority-owned joint-venture facilities. As of June 25, 2004.(2) Total headcount includes only active employees.

Global Manufacturing BaseGlobal Manufacturing Base

FundamentalsSales of $4.7B (41%)41 Mfg. Facilities(1)

22,300 Employees(2)

3 Joint Ventures

North AmericaNorth AmericaNorth America

South AmericaSouth AmericaSouth America

EuropeEuropeEurope

AsiaAsiaAsia

ProductsAll ProductsAftermarket

Key OpportunitiesIntegrated SafetySide Impact/RolloverJOEMs/KOEMs

FundamentalsSales $0.3B (3%)11 Mfg. Facilities(1)

3,900 Employees(2)

3 Joint Ventures

ProductsPrimarily ChassisAftermarket

Key OpportunitiesOSS growthJOEMs/KOEMsMfg Consolidation


32,000 Employees(2)

1 Joint Venture


Key OpportunitiesIntegrated SafetyJOEMs/KOEMsLow Cost Mfg.


2,600 Employees(2)

14 Joint Ventures


Key OpportunitiesOSS, ABS, ElectronicsChina, Korea, IndiaLow Cost Mfg.

Cost Savings Efforts Providing ResultsCost Savings Efforts Providing Results

72.470.4

67.766.4

64.1

1999 2000 2001 2002 2003

Tota

l Hea

dcou

nt (0

00) 8,300 workers

11%17.4

16.6 16.5

15.7 15.5

14.2

1998 1999 2000 2001 2002 2003

Faci

litie

s (in

mill

ions

of f

t²)

3.2 mm ft²

18%

Headcount ReductionHeadcount Reduction(1)(1) Facility Closures in High Cost CountriesFacility Closures in High Cost Countries

Facility Additions in Low Cost CountriesFacility Additions in Low Cost Countries Cash Restructuring CostsCash Restructuring Costs

5.25.5

5.85.85.5

6.0

1998 1999 2000 2001 2002 2003

Faci

litie

s (in

mill

ions

of f

t²) 0.8 mm ft²

15%

$77

$189

$27

$62$32

1999 2000 2001 2002 2003

(US

$ in

mill

ions

)


Note: Pro forma for divestitures.(1) Total headcount includes active, inactive and temporary employees; 1999-2002 excludes TKS headcount; 60,800 active employees in 2003.


• Best Quality – Drive Six Sigma, Q-Lean and other quality methods– Ensure we make the product right the first time and deliver

only quality products on time

• Lowest Cost – Relentlessly drive down costs

• Global Reach – Position globally to service key customers

• Innovative Technology– Offer leading-edge systems & products that add value for our

customers– TRW is uniquely positioned to be a leader in active and

passive safety technologies

TRW Automotive – Strategic PrioritiesTRW Automotive – Strategic Priorities


– Eye For Long Term Value

“Safety Sells” expected to maintain pace through end of decadeInnovation points toward convergence of active and passive safety technologiesDiversified portfolio smoothes growth prospects and provides a defensive aspect to our growthOrganization committed to delivering strategic prioritiesUtilize free cash flow to forward initiatives that maximize shareholder valueGoal is steady earnings growth

• Achieved solid financial results despite production environment and inflationary pressures

• Sales of $3.2 billion, up 6% vs. 2003

• Net Earnings of $75 million or $0.74 per diluted share, up $21 million, or 39% from prior year pro forma

• Debt reductions efforts proceeding with gross debt down $71 million in the quarter

• 2004 sales awards at targeted levels– Major volume win in OSS (air bags and seat belts)– Trend of wins indicative of present sales

diversification

Second Quarter HighlightsSecond Quarter Highlights


• Metal-based inflationary pressures remain an industry-wide issue

• Pricing levels remain high in North America; extending to Europe and Asia

• First half impact lessened by:– Active supply chain management– Aggressive cost savings throughout the company– Other favorable business variances

• Maintain cautious view regarding potential impact to the second half and beyond

Metal-Based Inflation UpdateMetal-Based Inflation Update


Deleveraging Continues (dollars in millions)Deleveraging Continues (dollars in millions)

Net DebtNet Debt(1)(1) CommentsComments


$3,089 $2,923$2,304$2,456$2,582

$2,709$2,849$2,964

$3,295$3,437

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

'Feb 28 'Sep 26 'Dec 31 'Mar 26 'Jun 25

(1) Net debt is equal to total indebtedness (including receivables facility) minus cash, cash equivalents and marketable securities. For net debt reconciliation to closest GAAP equivalent, please refer to the reconciliation on slide 24 of this presentation.

PIK Seller NoteOperating Co. Debt

• Total gross debt down $565 million year-to-date

• Net debt down $140 million in Q2 2004, down $255 year-to-date

• As of Jun 25, 2004, the Company had over $1 billion of liquidity– $500 million revolver– $400 million A/R facility– $519 million of cash on

balance sheet

• Debt to EBITDA significantly improved

• IPO – completed on February 6, 2004

• New business wins at planned rates

• Achieve financial commitments, including– Sales and earnings– Implement cost savings at targeted levels– Complete restructuring actions– Reduction in effective tax rate

• Strengthen balance sheet by lowering debt

Defining Success in 2004Defining Success in 2004



Automotive


Net Debt Reconciliation (Support Slide)(dollars in millions)

3/1/03 9/26/03 12/31/03 3/26/04 6/25/04Cash 449$ 399$ 828$ 449$ 519$ Marketable securities 26 16 16 16 15

Total 475 415 844 465 534

Short term debt 168 54 76 66 65

Long term debt:Term loan facilities 1,510 1,469 1,480 1,263 1,211 Senior notes 1,142 1,155 1,178 1,049 1,017 Senior subordinated notes 435 444 458 294 294 Lucas Varity senior notes 167 175 189 190 192 Other borrowings 142 41 45 59 59 Total Short & Long Term Debt 3,564 3,338 3,426 2,921 2,838

Net debt operating company 3,089$ 2,923$ 2,582$ 2,456$ 2,304$ Seller note 348 372 382 393 405 Net debt TRW Holdings 3,437$ 3,295$ 2,964$ 2,849$ 2,709$

Period-End Balances

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