2007 Q4 TRW Auto Earnings Presentation

Fourth Quarter and Full Year 2007Conference Call MaterialsFebruary 21, 2008

Materials Included Pages- Press Release 1-8- Financial Summaries A1-A10- Presentation P1-P34

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

Investor Relations Contact:

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

Manley Ford (734) 855-2616

TRW Reports Fourth Quarter and Full Year 2007 Financial Results; Provides 2008 Outlook

Highlights of 2007 Results Include: • Record sales of $14.7 billion - an increase of 11.9% • GAAP net earnings of $0.88 per diluted share • Net earnings, excluding debt retirement charges and a FAS 109 tax benefit,

increased to $2.28 per diluted share • Operating cash flow totaled $737 million or $224 million after capital

expenditures • Debt to capitalization ratio improved to 50%

LIVONIA, MICHIGAN, February 21, 2008 — TRW Automotive Holdings Corp. (NYSE:

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

quarter 2007 financial results with sales of $3.9 billion, an increase of 18.8 percent

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

earnings of $56 million or $0.55 per diluted share, which compares to the prior year

result of $33 million or $0.32 per diluted share. Net earnings, excluding tax benefits in

both years related to a FAS 109 adjustment in 2007 and debt retirement in 2006, were

$0.44 per diluted share in the 2007 quarter, which compares favorably to $0.16 per

diluted share in the prior year.

The Company’s full-year 2007 sales grew to a record $14.7 billion, an increase of 11.9

percent compared to the prior year. Net earnings for the year were $90 million or $0.88

per diluted share, which compares to 2006 earnings of $176 million or $1.71 per diluted

share. Full year net earnings, excluding debt retirement charges and the previously

mentioned tax items from both years, were $2.28 per diluted share in 2007, compared

to $2.10 per diluted share in 2006.

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“In 2007, TRW delivered solid operating results, including record sales and outstanding

cash flow, that exceeded the business objectives set at the beginning of the year,” said

John Plant, president and chief executive officer. “Our achievements in 2007 related to

our financial performance, together with steady expansion overseas, debt refinancing

and safety advancements have helped the Company grow stronger despite challenging

industry conditions.”

Mr. Plant added, “We have performed remarkably well since becoming an independent

company, providing solid results to our stakeholders and capitalizing on our position as

the world’s preeminent active and passive safety systems supplier. Now in 2008, we

are a significantly larger, more diverse enterprise that is reaching further into the world’s

growing markets with a portfolio of safety technology that is unrivaled in the

marketplace. We continue to build for the future and are focused on moving the

Company forward profitably over the long term.”

Fourth Quarter 2007 The Company reported fourth-quarter 2007 sales of $3.9 billion, an increase of $614

million or 18.8 percent over the prior year period. Foreign currency translation

benefited sales in the quarter by approximately $328 million. Fourth quarter sales

excluding the impact of foreign currency translation increased approximately $286

million or 8.7 percent over the prior year period. This increase can be attributed to

higher customer vehicle production in Europe and China and the continued growth of

safety products in all markets (including a higher mix of lower margin modules). These

positive factors were partially offset by pricing provided to customers and the continued

decline in North American customer vehicle production.

Operating income for fourth-quarter 2007 was $149 million, which compares favorably

to $126 million in the prior year period. Restructuring and asset impairment expenses

in the 2007 quarter were $19 million, which compares to $8 million in 2006. Operating

income excluding these expenses from both periods was $168 million in 2007, which

represents an increase of 25.4 percent compared to the 2006 result of $134 million.

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The year-to-year increase was driven primarily by higher product volumes and savings

generated from cost improvement and efficiency programs, including reductions in

pension and OPEB related costs and a measurable improvement in the Company’s

Automotive Components segment. These positive factors were in part offset by pricing

provided to customers, higher commodity costs and other unfavorable business items.

Net interest and securitization expense for the fourth quarter of 2007 totaled $56

million, which compares favorably to $66 million in the prior year. The year-to-year

decline can be attributed to the benefits derived from the Company’s 2007 debt

recapitalization which was completed during the second quarter of 2007.

Tax expense in the 2007 quarter was $39 million, resulting in an effective tax rate of 41

percent, which compares to $32 million or 49 percent in the prior year period. The 2007

quarter included a FAS 109 adjustment related to pension and OPEB gains recorded

through other comprehensive earnings that resulted in a non-cash tax benefit of $11

million. The prior year quarter included a $17 million tax benefit related to a bond

redemption transaction that was completed during the first quarter of 2006. Excluding

these items from both years, the effective tax rate was 53 percent in 2007, which

compares to 75 percent in the 2006 quarter. The lower tax rate in the fourth quarter of

2007 can be attributed to a change in the Company’s geographic earnings mix.

The Company reported fourth-quarter 2007 net earnings of $56 million or $0.55 per

diluted share, which compares to net earnings of $33 million or $0.32 per diluted share

in 2006. Net earnings excluding the previously mentioned tax items from both periods

were $45 million or $0.44 per diluted share in 2007, which compares to $16 million or

$0.16 per diluted share in 2006.

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

applicable), taxes, depreciation and amortization, or EBITDA, were $300 million in the

fourth quarter, which compares to the prior year level of $267 million.

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Full Year 2007 For full-year 2007, the Company reported sales of $14.7 billion, an increase of $1.6

billion or 11.9 percent compared to prior year sales of $13.1 billion. Foreign currency

translation benefited sales in 2007 by approximately $856 million. Full year 2007 sales

excluding the impact of foreign currency translation increased approximately $702

million or 5.3 percent over the prior year period. This increase resulted primarily from

higher product volumes related to new product growth and robust industry sales in

overseas markets, partially offset by the decline in North American customer vehicle

production and pricing provided to customers.

Operating income in 2007 was $624 million, which compares to $636 million in the prior

year. Restructuring and asset impairment expenses in 2007 were $51 million, which

compares to $30 million in 2006. Operating income excluding these expenses from

both periods was $675 million in 2007, which represents an increase of $9 million

compared to the 2006 result. This year-to-year improvement can be attributed to

savings generated from cost improvement and efficiency programs, including

reductions in pension and OPEB related costs, and higher product volumes globally.

These positive factors more than offset pricing provided to customers, considerably

higher commodity costs and a challenging first quarter operating environment, in which

operating income declined significantly compared to the prior year due to weak industry

production in North America and an unfavorable mix of products sold in the 2007

quarter. The Company posted year-to-year improvements in operating income in each

of the remaining three quarters in 2007 which helped offset the first quarter decline.

Net interest and securitization expense for 2007 totaled $233 million, which declined

from the prior year total of $250 million primarily due to the benefits derived from the

Company’s debt recapitalization completed during the second quarter of 2007. As a

reminder, actions related to the debt recapitalization included a $1.5 billion Senior Note

offering, the tender for substantially all of the Company’s outstanding $1.3 billion Notes

and the refinancing of its $2.5 billion credit facilities. In 2007, the Company incurred

charges related to these transactions of $155 million for loss on retirement of debt. In

2006, the Company incurred charges of $57 million also related to debt retirement.

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Tax expense in 2007 was $155 million, resulting in a 63 percent effective tax rate,

which compares to $166 million or 49 percent in 2006. The effective tax rate in 2007

excluding debt retirement charges and the FAS 109 tax benefit was 42 percent. This

compares to an effective tax rate, excluding debt retirement charges and the related tax

benefit, of 46 percent in 2006.

Full-year 2007 net earnings were $90 million, or $0.88 per diluted share, which

compares to $176 million or $1.71 per diluted share in 2006. Net earnings excluding

the previously mentioned debt retirement charges and tax items from both periods were

$234 million or $2.28 per diluted share in 2007, which compares to $216 million or

$2.10 per diluted share in 2006.

EBITDA in 2007 totaled $1,190 million, which represents a $24 million improvement

over the prior year result of $1,166 million.

Cash Flow and Capital Structure Net cash provided by operating activities during the fourth quarter was $826 million,

which compares to $397 million in the prior year period. Fourth quarter capital

expenditures were $174 million compared to $195 million in 2006.

For full-year 2007, net cash flow from operating activities was $737 million, which

compares to $649 million in the prior year. Capital expenditures were $513 million in

2007, which compares to $529 million in 2006. Full year 2007 operating cash flow after

capital expenditures, referred to as free cash flow, was $224 million, which compares to

$120 million in 2006.

As mentioned previously, the Company completed its debt recapitalization plan during

the second quarter of 2007, including the refinancing of its $2.5 billion credit facilities on

May 9, 2007. Additionally, on March 26, 2007, the Company completed its $1.5 billion

Senior Note offering and repurchased substantially all of the existing $1.3 billion Notes

through a tender offer. The Company incurred debt retirement charges of

approximately $155 million in 2007 related to these transactions.

5

On February 2, 2006, the Company’s wholly owned subsidiary, Lucas Industries

Limited, completed the tender for its outstanding GBP 94.6 million 10⅞% bonds. As a

result of the transaction, the Company incurred a $57 million charge for loss on

retirement of debt.

As of December 31, 2007, the Company had $3,244 million of debt and $899 million of

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

marketable securities) of $2,345 million. This net debt outcome is $98 million lower

than the balance at the end of 2006.

2008 Outlook For full-year 2008, sales are expected to be in the range of $15.6 to $16.0 billion

(including first quarter sales of approximately $4.0 billion). Full year net earnings per

diluted share are expected to be in the range of $2.15 to $2.45.

This guidance range reflects pre-tax restructuring expenses of approximately $50

million (including approximately $7 million in the first 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 slightly below 4 percent of sales.

“We expect 2008 will be challenging, especially in North America where customer

production volumes are anticipated to be down significantly in the first half of the year,”

said Mr. Plant. “In response, the Company has initiated an aggressive business plan

for 2008, which is reflected in the guidance we are providing today. We believe the

stability provided by having 70 percent of our sales derived from the combined regions

of Europe, Asia and South America, and a robust level of demand for our products in all

markets, will help mitigate the mounting challenges ahead.”

Fourth Quarter and Full Year 2007 Conference Call The Company will host its fourth quarter and full year conference call at 8:30 a.m.

(EST) today, Thursday, February 21, 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.

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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 33483516. 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 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.

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http://www.trw.com/results

http://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, 2006, and our Forms 10-Q for the quarters ended March 30, June 29

and September 28, 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 deliver

products at the scheduled rate; 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; the

impairment of our goodwill and other intangible assets; volatility in our annual effective

tax rate resulting from a change in earnings mix and other factors; adverse affects of

environmental and safety regulations; assertions by or against us relating to intellectual

property rights; and the possibility that our owners’ interests will conflict with ours. We

do not undertake any obligation to release publicly any revision to any of these forward-

looking statements.

# # #

8

A1

TRW Automotive Holdings Corp.

Index of Condensed Consolidated Financial Information Page Consolidated Statements of Earnings (unaudited) for the three months ended December 31, 2007 and December 31, 2006................................A2 Consolidated Statements of Earnings for the years ended December 31, 2007 and December 31, 2006 ............................................................................................................A3 Consolidated Balance Sheets as of December 31, 2007 and December 31, 2006...................A4 Condensed Consolidated Statements of Cash Flows (unaudited) for the years ended December 31, 2007 and December 31, 2006............................................A5 Reconciliation of GAAP Net Earnings to EBITDA (unaudited) for the three months and years ended December 31, 2007 and December 31, 2006...............A6 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the three months ended December 31, 2007 .......................................................................A7 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the three months ended December 31, 2006 .......................................................................A8 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the year ended December 31, 2007 .....................................................................................A9 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the year ended December 31, 2006 ....................................................................................A10 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, 2006 and Quarterly Reports on Form 10-Q for the periods ended March 30, 2007, June 29, 2007, and September 28, 2007 as filed with the United States Securities and Exchange Commission on February 23, 2007, May 2, 2007, August 1, 2007 and October 30, 2007, respectively.

A2


Consolidated Statements of Earnings

(Unaudited)

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

December 31, 2007 2006 Sales ........................................................................................... $ 3,886 $ 3,272 Cost of sales ............................................................................... 3,563 3,023 Gross profit............................................................................ 323 249 Administrative and selling expenses ........................................... 146 121 Amortization of intangible assets ................................................ 9 8 Restructuring charges and asset impairments ............................ 19 8 Other income — net .................................................................... — (14) Operating income .................................................................. 149 126 Interest expense — net ............................................................... 55 65 Accounts receivable securitization costs..................................... 1 1 Equity in earnings of affiliates, net of tax..................................... (8) (7) Minority interest, net of tax .......................................................... 6 2 Earnings before income taxes ............................................. 95 65 Income tax expense .................................................................... 39 32 Net earnings ....................................................................... $ 56 $ 33 Basic earnings per share: Earnings per share.................................................................... $ 0.56 $ 0.33 Weighted average shares ......................................................... 100.6 99.4 Diluted earnings per share: Earnings per share.................................................................... $ 0.55 $ 0.32 Weighted average shares ......................................................... 102.7 101.9

A3


Consolidated Statements of Earnings

(In millions, except per share amounts) Years Ended December 31,

2007 2006 Sales ........................................................................................... $ 14,702 $ 13,144 Cost of sales ............................................................................... 13,494 11,956 Gross profit............................................................................ 1,208 1,188 Administrative and selling expenses ........................................... 537 514 Amortization of intangible assets ................................................ 36 35 Restructuring charges and asset impairments ............................ 51 30 Other income — net .................................................................... (40) (27) Operating income .................................................................. 624 636 Interest expense — net ............................................................... 228 247 Loss on retirement of debt .......................................................... 155 57 Accounts receivable securitization costs..................................... 5 3 Equity in earnings of affiliates, net of tax..................................... (28) (26) Minority interest, net of tax .......................................................... 19 13 Earnings before income taxes ............................................. 245 342 Income tax expense .................................................................... 155 166 Net earnings........................................................................ $ 90 $ 176 Basic earnings per share: Earnings per share.................................................................... $ 0.90 $ 1.76 Weighted average shares ......................................................... 99.8 100.0 Diluted earnings per share: Earnings per share.................................................................... $ 0.88 $ 1.71 Weighted average shares ......................................................... 102.8 103.1

A4


Consolidated Balance Sheets

(Dollars in millions) As of

December 31,

2007 2006

Assets

Current assets: Cash and cash equivalents.................................................... $ 895 $ 578 Marketable securities............................................................. 4 11 Accounts receivable — net .................................................... 2,313 2,049 Inventories ............................................................................. 822 768 Prepaid expenses.................................................................. 65 60 Deferred income taxes .......................................................... 227 210

Total current assets.................................................................... 4,326 3,676 Property, plant and equipment — net......................................... 2,910 2,714 Goodwill...................................................................................... 2,243 2,275 Intangible assets — net.............................................................. 710 738 Pension asset............................................................................. 1,461 979 Deferred income taxes ............................................................... 88 91 Other assets ............................................................................... 552 660

Total assets ............................................................................ $ 12,290 $ 11,133

Liabilities, Minority Interests and Stockholders’ Equity

Current liabilities: Short-term debt ..................................................................... $ 64 $ 69 Current portion of long-term debt .......................................... 30 101 Trade accounts payable........................................................ 2,288 1,977 Accrued compensation.......................................................... 298 271 Income taxes......................................................................... 63 259 Other current liabilities .......................................................... 972 998

Total current liabilities................................................................. 3,715 3,675 Long-term debt ........................................................................... 3,150 2,862 Postretirement benefits other than pensions.............................. 591 645 Pension benefits......................................................................... 497 722 Deferred income taxes ............................................................... 552 428 Long-term liabilities .................................................................... 459 295

Total liabilities......................................................................... 8,964 8,627 Minority interests ........................................................................ 134 109

Commitments and contingencies

Stockholders’ equity: Capital stock.......................................................................... 1 1 Treasury stock....................................................................... — — Paid-in-capital ....................................................................... 1,176 1,125 Retained earnings ................................................................. 398 308 Accumulated other comprehensive earnings ........................ 1,617 963

Total stockholders’ equity........................................................... 3,192 2,397 Total liabilities, minority interests and stockholders’ equity .... $ 12,290 $ 11,133

A5


Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions) Years Ended December 31,

2007 2006 Operating Activities Net earnings...................................................................................... $ 90 $ 176 Adjustments to reconcile net earnings to net cash provided by operating activities:

Depreciation and amortization ........................................................ 557 517 Other — net..................................................................................... (26) (91)

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

Accounts receivable, net ................................................................ (66) 58 Inventories ...................................................................................... 22 (6) Trade accounts payable ................................................................. 133 (41) Other assets.................................................................................... 144 75 Other liabilities ................................................................................ (117) (39) Net cash provided by operating activities ..................................... 737 649

Investing Activities Capital expenditures ......................................................................... (513) (529) Proceeds from asset sales, net of acquisitions................................. 27 30 Other — net ...................................................................................... 18 40

Net cash used in investing activities ............................................. (468) (459) Financing Activities Change in short-term debt ................................................................ (27) (40) Net proceeds from revolving credit facility ........................................ 429 — Proceeds from issuance of long-term debt ....................................... 2,591 37 Redemption of long-term debt .......................................................... (3,011) (304) Issuance of capital stock, net of fees ................................................ — 153 Repurchase of capital stock.............................................................. — (209) Proceeds from exercise of stock options .......................................... 29 23

Net cash provided by (used in) financing activities....................... 11 (340) Effect of exchange rate changes on cash......................................... 37 69 Increase (decrease) in cash and cash equivalents........................... 317 (81) Cash and cash equivalents at beginning of period ........................... 578 659 Cash and cash equivalents at end of period..................................... $ 895 $ 578

A6


Reconciliation of GAAP Net Earnings to EBITDA (Unaudited)

The reconciliation schedule below should be read in conjunction with the TRW Automotive Holdings Corp. Annual Report on Form 10-K for the year ended December 31, 2006 and Quarterly Reports on Form 10-Q for the periods ended March 30, 2007 and June 29, 2007 and September 28, 2007 which contain summary historical data. 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, nor 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

December 31, 2007 2006 GAAP net earnings........................................................ $ 56 $ 33

Income tax expense ................................................ 39 32 Interest expense — net ........................................... 55 65 Accounts receivable securitization costs ................. 1 1 Depreciation and amortization................................. 149 136

EBITDA ......................................................................... $ 300 $ 267

(Dollars in millions) Years Ended December 31,

2007 2006 GAAP net earnings ....................................................... $ 90 $ 176

Income tax expense ................................................ 155 166 Interest expense — net ........................................... 228 247 Loss on retirement of debt ...................................... 155 57 Accounts receivable securitization costs................. 5 3 Depreciation and amortization ................................ 557 517

EBITDA......................................................................... $ 1,190 $ 1,166


Reconciliation of GAAP Net Earnings to Adjusted Earnings

(Unaudited) In accordance with FAS 109, the Company recorded a non-cash tax benefit of $11 million related to pension and OPEB gains recorded through other comprehensive earnings. The following reconciliation excludes the tax benefit related to the FAS 109 adjustment.

(In millions, except per share amounts)

Three Months Ended

December 31,2007

Actual Adjustment

Three Months Ended

December 31, 2007

Adjusted Sales............................................................. $ 3,886 $ — $ 3,886 Cost of sales ................................................. 3,563 — 3,563 Gross profit ............................................... 323 — 323 Administrative and selling expenses ............ 146 — 146 Amortization of intangible assets.................. 9 — 9 Restructuring charges and asset impairments ................................................. 19 — 19 Other income — net ..................................... — — — Operating income ..................................... 149 — 149 Interest expense, net .................................... 55 — 55 Account receivable securitization costs........ 1 — 1 Equity in earnings of affiliates, net of tax...... (8) — (8) Minority interest, net of tax ........................... 6 — 6 Earnings before income taxes.................. 95 — 95 Income tax expense .................................... 39 11 (a) 50 Net earnings ............................................ $ 56 $ (11) $ 45 Effective tax rate........................................... 41% 53% Basic earnings per share: Earnings per share ..................................... $ 0.56 $ 0.45 Weighted average shares........................... 100.6 100.6 Diluted earnings per share: Earnings per share ..................................... $ 0.55 $ 0.44

Weighted average shares........................... 102.7 102.7

(a) Represents the elimination of the tax benefit related to the FAS 109 adjustment.

A7


Reconciliation of GAAP Net Earnings to Adjusted Earnings (Unaudited)

In conjunction with the Company’s February 2, 2006 repurchase of its United Kingdom subsidiary Lucas Industries Limited’s £94.6 million 10⅞% bonds due 2020 for £137 million, or approximately $243 million at that time, the Company recorded a loss on retirement of debt of £32 million, or approximately $57 million. During the fourth quarter of 2006, the Company reversed a valuation allowance for its United Kingdom operations due to the non-occurrence of certain planned restructuring actions and favorable operating results in the region. As such, tax expense for the three months ended December 31, 2006 recognizes an accounting tax benefit of $17 million related to the Lucas notes bond redemption transaction, which was completed during the first quarter of 2006. The following reconciliation excludes the tax benefit related to the loss on retirement of debt from the Company’s fourth quarter results.


Three Months Ended

December 31,2006

Actual Adjustment

Three Months Ended

December 31, 2006

Adjusted Sales............................................................. $ 3,272 $ — $ 3,272 Cost of sales ................................................. 3,023 — 3,023 Gross profit ............................................... 249 — 249 Administrative and selling expenses ............ 121 — 121 Amortization of intangible assets.................. 8 — 8 Restructuring charges and asset impairments ................................................. 8 — 8 Other income — net ..................................... (14) — (14) Operating income ..................................... 126 — 126 Interest expense, net .................................... 65 — 65 Account receivable securitization costs........ 1 — 1 Equity in earnings of affiliates, net of tax...... (7) — (7) Minority interest, net of tax ........................... 2 — 2 Earnings before income taxes.................. 65 — 65 Income tax expense .................................... 32 17 (a) 49 Net earnings ............................................ $ 33 $ (17) $ 16 Effective tax rate........................................... 49% 75% Basic earnings per share: Earnings per share ..................................... $ 0.33 $ 0.16 Weighted average shares........................... 99.4 99.4 Diluted earnings per share: Earnings per share ..................................... $ 0.32 $ 0.16


(a) Represents the elimination of the tax benefit related to the loss on retirement of debt, which was recognized during the

quarter ended December 31, 2006.

A8


Reconciliation of GAAP Net Earnings to Adjusted Earnings (Unaudited)

In conjunction with the Company’s tender offer and repurchases of its then outstanding old notes, the Company recorded a loss on retirement of debt of $148 million during the year ended December 31, 2007. This loss included $112 million for redemption premiums paid, $20 million for the write-off of deferred debt issue costs, $11 million relating to the principal amount in excess of carrying value of the 9⅜% Senior Notes and $5 million of fees. Such loss on retirement of debt carries zero tax benefit due to the Company’s tax loss position in the respective jurisdiction. The Company entered into its Fifth Amended and Restated Credit Agreement dated as of May 9, 2007, which provides for $2.5 billion in senior secured credit facilities, consisting of (i) a 5-year $1.4 billion Revolving Credit Facility, (ii) a 6-year $600 million Term Loan A-1 Facility and (iii) a 6.75-year $500 million Term Loan B-1 Facility (collectively, the “Facilities”). Proceeds from the Facilities were used to refinance $2.5 billion of existing senior secured credit facilities and pay fees and expenses related to the refinancing. The Company recorded a loss on retirement of debt related to the transaction of $7 million during the year ended December 31, 2007. Such loss on retirement of debt carries zero tax benefit due to the Company’s tax loss position in the respective jurisdiction. In addition and in accordance with FAS 109, the Company recorded a non-cash tax benefit of $11 million related to pension and OPEB gains recorded through other comprehensive earnings. The following reconciliation excludes the impact of the loss on retirement of debt and the tax benefit related to the FAS 109 adjustment.


Year Ended December 31,

2007 Actual Adjustments


2007 Adjusted

Sales ..................................................................... $ 14,702 $ — $ 14,702 Cost of sales ......................................................... 13,494 — 13,494 Gross profit ....................................................... 1,208 — 1,208 Administrative and selling expenses..................... 537 — 537 Amortization of intangible assets .......................... 36 — 36 Restructuring charges and asset impairments ..... 51 — 51 Other income — net.............................................. (40) — (40) Operating income.............................................. 624 — 624 Interest expense, net ............................................ 228 — 228 Loss on retirement of debt .................................... 155 (155) (a) — Account receivable securitization costs................ 5 — 5 Equity in earnings of affiliates, net of tax .............. (28) — (28) Minority interest, net of tax.................................... 19 — 19 Earnings before income taxes .......................... 245 155 400 Income tax expense ............................................. 155 11 (b) 166 Net earnings ..................................................... $ 90 $ 144 $ 234 Effective tax rate ................................................... 63% 42% Basic earnings per share: Earnings per share ............................................. $ 0.90 $ 2.34 Weighted average shares................................... 99.8 99.8 Diluted earnings per share: Earnings per share ............................................. $ 0.88 $ 2.28 Weighted average shares................................... 102.8 102.8 (a) Reflects the elimination of the loss on retirement of debt. (b) Represents the elimination of the tax benefit related to the FAS 109 adjustment.

A9


Reconciliation of GAAP Net Earnings to Adjusted Earnings

(Unaudited) In conjunction with the Company’s February 2, 2006 repurchase of its subsidiary Lucas Industries Limited’s £94.6 million 10⅞% bonds due 2020 for £137 million, or approximately $243 million at that time, the Company recorded a loss on retirement of debt of £32 million, or approximately $57 million. The following reconciliation excludes the loss on retirement of debt and the related tax impact.



2006 Actual Adjustments


2006 Adjusted

Sales............................................................. $ 13,144 $ — $ 13,144 Cost of sales ................................................. 11,956 — 11,956 Gross profit ............................................... 1,188 — 1,188 Administrative and selling expenses ............ 514 — 514 Amortization of intangible assets.................. 35 — 35 Restructuring charges and asset impairments ................................................. 30 — 30 Other income — net ..................................... (27) — (27) Operating income ..................................... 636 — 636 Interest expense, net .................................... 247 — 247 Loss on retirement of debt............................ 57 (57) (a) — Account receivable securitization costs........ 3 — 3 Equity in earnings of affiliates, net of tax...... (26) — (26) Minority interest, net of tax ........................... 13 — 13 Earnings before income taxes.................. 342 57 399 Income tax expense .................................... 166 17 (b) 183 Net earnings ............................................ $ 176 $ 40 $ 216 Effective tax rate........................................... 49% 46% Basic earnings per share: Earnings per share ..................................... $ 1.76 $ 2.16 Weighted average shares........................... 100.0 100.0 Diluted earnings per share: Earnings per share ..................................... $ 1.71 $ 2.10


(a) Reflects the elimination of the loss on retirement of debt. (b) Represents the elimination of the tax benefit related to the loss on retirement of debt.

A10

Fourth Quarter and Full Year 2007 Financial Results Presentation

February 21, 2008

P2 © TRW Automotive Holdings Corp. 2007

IntroductionPatrick StobbDirector, Investor Relations

Business SummaryJohn C. PlantPresident andChief Executive Officer


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, 2006, and our Forms 10-Q for the quarters ended March 30, June 29 and September 28, 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 deliver products at the scheduled rate; 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 post-retirement benefits; risks associated with non-U.S. operations, including foreign exchange risks; the impairment of our goodwill and other intangible assets; volatility in our annual effective tax rate resulting from a change in earnings mix and other factors; adverse affects of environmental and safety regulations; assertions by or against us relating to intellectual property rights; and the possibility that our owners’ interests will conflict with ours. We do not undertake any obligation to release publicly any revision to any of these forward-looking statements.

Safe Harbor Statement


2007 highlights include:• Record sales and net earnings after adjustments.

• Solid cash flow generation, with cash available after capital expenditures of $224 million.(a)

• Recapitalized entire debt structure.

• Reduced net debt by approx. $100 million despite cash outflows of $145 million related to debt refinancing.

• Cost reduction programs delivered results.

• Level of new business supports growth expectation of 4% CAGR and enhances diversification.

• Excellent progress leveraging design capabilities to push the boundaries of “what is possible” in safety.

Safety

Sales Diversification

Cost & Capital Management

Innovation

(a) Cash available after capital expenditures equals cash flow from operations less capital expenditures. For a reconciliation to GAAP, please refer to slide P20.

“Key Attributes Drive Success”


Fourth Quarter Summary

North America 9.4%Europe 18.0% ROW 48.3%

$3,272

$3,886

Q4 2006 Q4 2007

19% Growth

Sales Summary(mils.)

(a) For adjusted results reconciliation to GAAP, please see slide P17.(b) Based on diluted shares.(c) Production volumes based on CSM Worldwide data.

(% changes based on year-over-year comparisons)

North AmericaBig 3 -2.9%EU OE 30.5%Asian OE 4.1%Total Region 0.7%

EuropeWest 4.8%East 18.3%Total Region 8.3%

ROWChina 18.9%India 17.2%Korea 9.0%Japan 5.6%South America 26.1%

Vehicle Production(c)Financial Summary

2007 GAAP ResultsNet Earnings $56 millionNet Earnings Per Share(b) $0.55

2007 Adjusted Results(a)

(Excludes $11 million of FAS 109 tax benefit)

Net Earnings $45 millionNet Earnings Per Share(b) $0.44


North America 3.1%Europe 12.1% ROW 38.6%

Full Year SummaryFinancial Summary

2007 GAAP ResultsNet Earnings $90 millionNet Earnings Per Share(b) $0.88

2007 Adjusted Results(a)

(Excludes $155 million of debt retirement charges and $11 million FAS 109 tax benefit)

Net Earnings $234 millionNet Earnings Per Share(b) $2.28

Sales Summary(mils.)

$13,144$14,702

2006 2007

12% Growth

(a) For adjusted results reconciliation to GAAP, please see slide P19.(b) Based on diluted shares(c) Production volumes based on CSM Worldwide data.

(% changes based on year-over-year comparisons)

North AmericaBig 3 -5.4%EU OE 17.2%Asian OE 4.5%Total Region -1.5%

EuropeWest 2.7%East 17.3%Total Region 6.2%

ROWChina 20.6%India 16.5%Korea 6.7%Japan 1.4%South America 18.2%

Vehicle ProductionVehicle Production(c)


Achieving Our Objectives

11.3

12.012.6

13.1

14.7

2003 2004 2005 2006 2007

1.03

1.72 1.72

2.102.28

2003 2004 2005 2006 2007

Sales GrowthUS $ in billions

Adjusted Earnings Growth(1)

Per Diluted Share

’03–’07 CAGR 6.8%

’03–’07 CAGR 22.0%

GAAP EPS(a) (0.78) 0.29 1.99 1.71 0.88

(a) For pro forma 2003 sales and adjusted earnings reconciliations to GAAP, please see slides P19, P28-P30.

Safety

Sales Diversification

Cost & Capital Management

Innovation

(a)


Quarterly Developments

• Steady pace of new business wins in 2007 provides measure of confidence in ability to deliver targeted top line growth.

• Opened new facilities:– Engineering center in Yokohama that

will house approximately 130 engineers, technicians and sales personnel

– State-of-the-art manufacturing site in Slovakia to support electric steering systems growth

– Delphi Saginaw braking module business – completed January 2nd

• Formed joint venture in India with Sun to manufacture steering wheels.

STEERINGKNUCKLE

CORNER MODULE

WHEELBEARINGROTOR CALIPER LININGS

Yokohama Engineering Center



• Electric drum-in-hat park brake extends the range of EPB to larger vehicles, which require greater clamping force for parking.

• Introduced new generation of column-drive electrically powered steering system for the new Mazda global small car platform.

• Automotive Components reports strong year-over-year profit improvement.

• Commodity inflation update:– Presented a significant challenge in 2007 with a

gross impact of approximately $100 million –similar impact expected in 2008

– Growing concern that sharp first half decline in Big 3 production volume will increase pressure on the supply base Column-Drive

Electrically Powered Steering

Electric Drum-in-Hat Park Brake


Successfully launched 78 programs during Q4…

• Citroen C5: Brake calipers, Curtain-Side-Driver-Passenger-Knee Airbags, Seat Belts, Electronically Powered Hydraulic Steering Powerpack, Stabilizer Links

• Chevrolet Malibu: ABS, Electronic Stability Control, Driver Airbag, Steering Wheel

• GMC Yukon and Chevrolet Tahoe Hybrid: Slip Control Boost

• Renault Kangoo: Brake calipers, Mechanical Steering Gear (for Electrically Powered Steering)

CitroenC5

Chevrolet Malibu

GMC Yukon Hybrid


Renault Kangoo


RD&E Expenditures

Investing In Our Future

Capital Expenditures

$600

$714$780

$825$893

2003 2004 2005 2006 2007

$416$493 $503 $529 $513

2003 2004 2005 2006 2007

Investing to Grow

5.3%

5.9%6.2% 6.3% 6.1%

RD&E as % of Sales

4.1% 4.0% 4.0%3.5%3.7%

CAPEX as % of Sales

CAPEX Funding

Business Growth

AirbagsDriver & Passenger AirbagsSide & Curtain/Rollover AirbagsKnee AirbagsAdaptive Airbag Systems

Steering SystemsHybrid Enabling & Active SteeringElectrically Powered SteeringSpeed Proportional Steering

Safety Electronics ECU and Remote SensorsVision SystemPedestrian ProtectionTire Pressure MonitoringWeight Sensing System

Driver Assist SystemsAdaptive Cruise Control Lane Guide SystemsCollision Warning

Active & Passive Safety Growth Drivers

Steering Wheel SystemsTouch SensorVibrating Steering WheelFixed-Hub Design

Braking SystemsElectronic Stability ControlSlip Control BoostElectric Park Brake

Seat Belt SystemsActive Control RetractorLoad Limiters & Pretensioners

Sales of Highlighted Technologies in

Aggregate Increased20% in 2007

Sales of Highlighted Technologies in

Aggregate Increased20% in 2007


• Forecast for North American production of approximately 14.5 million units:– Lowest production level

since 1993– Big 3 expected to decline

approximately 800K units, of which, 80% percent expected during the first half

• Europe production expected to hold relatively flat.

• Steady growth forecasted for Asia and South America.

• Commodity inflation pressures expected to be significant.

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

2008 Operating Environment

9.6 10.0 10.6 10.8 11.0

4.1 4.8 5.7 6.9 7.73.4 3.6 3.8 4.0 3.93.3 3.9 4.0

4.6 5.6

2004 2005 2006 2007 2008EJapan C hinaKo rea So uth A sia

2.5 2.8 3.04.03.6

2004 2005 2006 2007 2008E

16.2 15.8 15.5 15.9 15.6

3.8 4.1 4.9 5.8 6.4

2004 2005 2006 2007 2008EWestern Eastern

‘04’03

‘05

South America

North America

Asia

Europe21.7

20.419.920.0

2008 Industry Production Assumptions(1)

(units in millions)

11.4 10.8 9.5 8.7

4.4 5.0 5.2 5.6 5.8

10.1

2004 2005 2006 2007 2008EBig 3 Transplants

15.115.315.815.814.5

22.0


2008 Full Year Outlook

Sales $15.6 - $16.0 billion

Net Earnings per Diluted Share(a) $2.15 to $2.45

Restructuring Expenses (pre-tax) $50 million

Capital Spending slightly less than4% of sales

Effective Tax Rate approx. 38% - 42%

(a) Per share amounts based on weighted average diluted shares outstanding of approximately 103.0 million shares.

We have initiated an aggressive 2008 business plan that will help mitigate difficult industry conditions


Financial OverviewJoseph S. CantieExecutive Vice Presidentand Chief Financial Officer


(a) Please refer to slide P31 for management’s rationale for using this metric and slide P33 for a reconciliation to GAAP.(b) For adjusted results comparison and reconciliation to GAAP, please see slide P19.(c) Cash available after capital expenditures equals cash flow from operations less capital expenditures. For a reconciliation to GAAP, please refer to slide P20.

• Strong fourth quarter results completes impressive 2007 company scorecard:

Record sales of $14.7 billion

EBITDA increased to $1,190 million(a)

Net earnings, excluding debt retirement charges and a FAS 109 tax benefit, increased to $2.28 per share(b) (GAAP net earnings of $0.88 per share)

Operating cash flow after capital expenditures of $224 million(c)

Net debt down approximately $100 million, despite $145 million cash outflow from debt refinancing.

Significant improvement to Pension/OPEB funded status

Financial Summary


Fourth Quarter Sales Summary

$1,761

$1,076

$435

$2,132

$1,231

$523

2006 2007

ChassisOSSAuto Comp$3,272

$3,886

Q4 2006 Q4 2007

Total SalesUS $ in millions

Q4 YOY Sales Comparison

• Product Volumes• New Products• Vehicle Production• Modules

• Foreign Currency• Customer Pricing

+19%

Segment SalesUS $ in millions

Geographic Sales Mix% of total sales

2007Rest of World14.2%

North America

28.3%

Europe57.5%


North America

30.8%

Europe57.8%


(dollars in millions, except where noted)

GAAP Results

Adjusting Item

Adjusted Results

GAAP Results

Adjusting Item

Adjusted Results

Sales 3,886$ -$ 3,886$ 3,272$ -$ 3,272$ Operating Income 149 - 149 126 - 126 Net Interest and Securitization 56 - 56 66 66 Equity in Earnings of Affiliates (8) - (8) (7) - (7) Minority Interest 6 - 6 2 - 2 Income Tax Expense 39 11 (a) 50 32 17 (b) 49 Effective Tax Rate 41% 53% 49% 75%Net Earnings 56$ (11)$ 45$ 33$ (17)$ 16$ Share Count 102.7 102.7 101.9 101.9 Earnings Per Share 0.55$ 0.44$ 0.32$ 0.16$

EBITDA(c) 300$ 267$

Q4 2007 Q4 2006

Fourth Quarter Results

(a) $11 million tax benefit associated with FAS 109 adjustment related to pension and OPEB gains recorded through other comprehensive earnings.(b) $17 million tax benefit associated with Lucas bond tender transaction.(c) Please refer to slide P31 for management’s rationale for using this metric and slide P32 for a reconciliation to GAAP.


$7,096

$4,326

$1,722

$7,997

$4,714

$1,991

2006 2007

ChassisOSSAuto Comp

$13,144 $14,702

2006 2007

Total SalesUS $ in millions

Full Year YOY Sales Comparison

Segment SalesUS $ in millions


North America

30.2%

Europe57.2%

Geographic Sales Mix% of total sales

Full Year Sales Summary


North America

32.7%

Europe57.1%

+12%

• Product Volumes• New Product Growth• Europe & ROW• NA Industry Production• Modules

• Foreign Currency• Customer Pricing



GAAP Results

Adjusting Items

Adjusted Results

GAAP Results

Adjusting Items

Adjusted Results

Sales 14,702$ -$ 14,702$ 13,144$ -$ 13,144$ Operating Income 624 - 624 636 - 636 Net Interest and Securitization 233 - 233 250 250 Loss on Retirement of Debt 155 (155) (a) - 57 (57) (c) - Equity in Earnings of Affiliates (28) - (28) (26) - (26) Minority Interest 19 - 19 13 - 13 Income Tax Expense 155 11 (b) 166 166 17 (d) 183 Effective Tax Rate 63% 42% 49% 46%Net Earnings 90$ 144$ 234$ 176$ 40$ 216$ Share Count 102.8 102.8 103.1 103.1 Earnings Per Share 0.88$ 2.28$ 1.71$ 2.10$

EBITDA(e) 1,190$ 1,166$

2007 2006

Full Year Results

(a) $155 million loss on retirement of debt related to the Company’s 2007 debt recapitalization.(b) $11 million tax benefit associated with FAS 109 adjustment related to pension and OPEB gains recorded through other comprehensive earnings.(c) $57 million loss on retirement of debt related to Lucas bond tender transaction. (d) $17 million tax benefit associated with Lucas bond tender transaction.(e) Please refer to slide P31 for management’s rationale for using this metric and slide P33 for a reconciliation to GAAP.


Capital Structure Summary

Operating Cash Flow: 2006 2007

First 9 Months 252$ (89)$

Fourth Quarter 397$ 826$

Full Year 649$ 737$

Memo:Capital Expenditures (529) (513) Cash Available after Capital Expenditures 120$ 224$

$83$119 $119 $109 $132 $111

$195$174

$529$513

Q1 Q2 Q3 Q4 Full Year

2006

2007

Operating Cash FlowUS $ in millions

CapexUS $ in millions

2006

First 9 Months

2007Full Year

2007Cash 578$ 473$ 895$ Marketable Securities 11 13 4 Total Cash & Marketable Securities 589 486 899

3,032$ 3,515$ 3,244$ Total Equity 2,397 2,588 3,192 Total Capital 5,429 6,103 6,436

Net Debt(a) 2,443 3,029 2,345 Debt / Capital 56% 58% 50%

(a) Total debt less total cash & marketable securities.

Total Debt

Period-End BalancesCapital StructureUS $ in millions 12/31/03

84%

12/31/0750%


Net Debt(a)

$3,437

$2,964

$2,345$2,560 $2,443$2,372

Feb 28, 2003 Dec 31, 2003 Dec 31, 2004 Dec 31, 2005 Dec 31, 2006 Dec 31, 2007

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 P34.

Dalphimetal acquisition increased net debt by $244 million

(dollars in millions)

Lucas notes tender transaction increased net debt by $57 million

$1.5 billion Senior Note offering and $1.3 billion tender transaction increased net debt by approximately $145 million


2007 Debt Recapitalization

• TRW has methodically improved its capital structure by leveraging strong operating results and advantageous capital markets.

• Completed debt recapitalization plan during the first half of 2007:– Refinanced $1.3 billion of bond debt– Lowered fixed/variable position, which was

approximately 50% fixed at year-end– Refinanced $2.5 billion credit facilities– Combined transactions lower borrowing costs,

increase covenant flexibility and extend maturities

• In excess of $1.5 billion in available liquidity.

New debt structure efficient, low cost, and supports future growth expectations

New debt structure efficient, low cost, and supports future growth expectations

(Debt Maturities)

2008 2009 2010 2011 2012

No Significant Debt Maturities

Before 2012


Pension and OPEB Plans

• Excellent progress made in 2007 improving funded status of pension and OPEB plans.

• Since going public, TRW has significantly improved its Pension/OPEB total funded status, despite inflation, through:– Plan amendments– Selective “buy-out” programs– Favorable asset performance– Currency movements

• SFAS No. 158(a) adjustment increased equity $603 million in 2007.

Pension Plans

• U.S. Plans $ (430) $ (203) $ (26)

• UK Plans 502 952 1,442

• Rest of World (516) (520) (485)

Sub-Total (444) 229 931

OPEB Plans

• U.S. Plans (646) (576) (492)

• Rest of World (181) (138) (160)

Sub-Total (827) (714) (652)

Total Funded Status $ (1,271) $ (485) $ 279

2005 2006 2007Funded Status(b)

(a) SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other Post Retirement Plans.(b) As of the measurement date.


$14.7

$15.6-$16.0

2007 2008E

Framing 2008 Full Year Sales

≈ 6% to 9%

Impact of sharp decline in Big 3 NA production will be significant, especially in 1H ‘07.

Sales(units in billions)

Year-Over-Year Sales Impact

Industry Production• North America• Western Europe• South America• Asia (China)

Customer Pricing

New Business• Modules

Foreign CurrencyEuro benefit to sales forecasted to be significant, with no material benefit expected at the operating line.

Module sales expected to increase approx. $800 million (low margin).


First Quarter 2008 Summary

• Production environment in North America proving difficult (Big 3 and class 8 production).

• Expect sales of approximately $4 billion:

– Based on vehicle production of 3.6 million units in North America and 5.6 million units in Europe

– Significant portion of year-to-year sales increase attributed to foreign currency and module sales, with minimal benefit expected at the operating line

• Restructuring related costs forecasted at $7 million.

Despite a challenging industry environment, looking to move the Company forward positively in 2008

Despite a challenging industry environment, looking to move the Company forward positively in 2008


“DrivingAutomotiveSafety”


Financial Reconciliation Section



GAAP Results

Adjusting Items

Adjusted Results

GAAP Results

Adjusting Items

Adjusted Results

Sales 12,643$ -$ 12,643$ 13,144$ -$ 13,144$

Operating Income 553 (18) 535 636 - 636

Net Interest and Securitization 231 - 231 250 250

Loss on Retirement of Debt 7 (7) - 57 (57) -

Equity in Earnings of Affiliates (20) - (20) (26) - (26)

Minority Interest 7 - 7 13 - 13

Income Taxes 124 17 141 166 17 183 Effective Tax Rate 38% 44% 49% 46%

Net Earnings (Losses) 204$ (28)$ 176$ 176$ 40$ 216$

Share Count 102.3 102.3 103.1 103.1

Earnings Per Share 1.99$ 1.72$ 1.71$ 2.10$

Full Year Ended December 31, 2006Full Year Ended December 31, 2005

2005 & 2006 Full Year Reconciliations

(b)

(c) (a)

(a)(d)

(a)

(a) $57 million ($40 million after-tax) loss on retirement of debt associated with the Lucas bond tender transaction.(b) $18 million one-time reduction in litigation reserves.(c) $7 million premiums and fees related to a bond redemption transaction.(d) $17 million one-time tax benefit for a tax law change in Poland.


Full Year 2004 Reconciliation

(a) Represents $167 million loss on retirement of debt and $6 million of refinancing related expenses associated with capital transactions completed during 2004 and $29 million for the assumed tax impact.

(dollars in millions)GAAP Adjusting Adjusted

Results Items(a) Results

Sales 12,011$ -$ 12,011$

Operating Income 580 - 580

Net Interest and Securitization 252 (6) 246

Loss on Retirement of Debt 167 (167) -

Equity in affiliates (15) - (15)

Minority Interest 12 - 12

Income Taxes 135 29 164

Net Earnings 29$ 144$ 173$

Share Count 100.5 100.5

Earnings Per Diluted Share 0.29$ 1.72$

Effective Tax Rate 82% 49%

Full Year Ended December 31, 2004


(a) Reflects the elimination of the sales of TRW Koyo Steering Systems Company (“TKS”), which was not transferred as part of the acquisition of the Company by The Blackstone Group L.P. in February 2003 (“Acquisition”).

(b) Reflects the elimination of $40 million of cost of sales of TKS, $12 million in pension and OPEB adjustments as a result of purchase accounting, the elimination of the effects of a $43 million inventory write-up recorded as a result of the Acquisition and $5 million net decrease in depreciation and amortization expense resulting from fair value adjustments to fixed assets and certain intangibles.

(c) Reflects the elimination of $1 million administrative and selling expense of TKS, the addition of $1 million in the annual monitoring fee payable to an affiliate of Blackstone and $2 million decrease in depreciation and amortization expense resulting from fair value adjustments to fixed assets and capitalized software.

(d) Reflects the elimination of the fair value of purchase in-process research and development expensed as a result of purchase accounting. (e) Reflects the incremental increase in amortization resulting from assignment of fair value to certain intangibles. (f) Reflects elimination of $1 million other expense related to TKS.(g) Reflects adjustments to show pro forma net financing costs based upon the post-Acquisition capital structure and the initiation of our receivables securitization program.(h) Reflects the tax effect of the above adjustments at the applicable tax rates.

Sucessor Predecessor Pro FormaTen months

ended December 31,

2003

Two months ended February

28, 2003Pro Forma

Adjustments


2003

Sales 9,435$ 1,916$ (43)$ (a) 11,308$ Cost of sales 8,577 1,711 (100) (b) 10,188

Gross profit 858 205 57 1,120

Administrative and selling expenses 433 99 (2) (c) 530 Purchased in-process research and development 85 - (85) (d) - Amortization of intangible assets 27 2 3 (e) 32 Restructuring and asset impairments 29 4 - 33 Other (income) expense — net (59) - (1) (f) (60)

Operating income 343 100 142 585

Interest expense, net 284 47 (15) (g) 316 Loss on retirement of debt 31 - (31) (g) - Securitization cost 28 - (17) (g) 11 Net affiliate earnings & minority interest 3 3 - 6 (Losses) earnings before income taxes (3) 50 205 252 Income tax expense 98 19 42 (h) 159 Net (losses) earnings (101)$ 31$ 163$ 93$

Net earnings per share (90.4 million diluted shares) => 1.03$

Historical

Full Year 2003 Reconciliation

(dollars in millions)


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 Holdings Corp. Form 10-K for the year ended December 31, 2006, and quarterly reports on Form 10-Q for the quarters ended March 30, June 29 and September 28, 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.


Fourth Quarter EBITDA


Q4 2007 Q4 2006Net Earnings 56$ 33$ Income Tax Expense 39 32 Net Interest & Securitization 56 66 Depreciation & Amortization 149 136

EBITDA 300$ 267$

Memo:Restructuring & AssetImpairments Included in EBITDA 19$ 8$


Full Year EBITDA


Full Year 2007

Full Year 2006

Net Earnings 90$ 176$ Income Tax Expense 155 166 Net Interest & Securitization 233 250 Loss on Retirement of Debt 155 57 Depreciation & Amortization 557 517

EBITDA 1,190$ 1,166$

Memo:Restructuring & AssetImpairments Included in EBITDA 51$ 30$


Net Debt Reconciliation

(dollars in millions)2/28/03 12/31/03 12/31/04 12/31/05 12/31/06 9/28/07 12/31/07

Cash 449$ 828$ 790$ 659$ 578$ 473$ 895$ Marketable securities 26 16 19 17 11 13 4

Total cash and marketable securities 475 844 809 676 589 486 899

Short term debt 168 76 40 98 69 161 64 Term loan facilities 1,510 1,480 1,512 1,593 1,582 1,100 1,098 Revolving credit facilities - - - - - 638 429 Senior & senior subordinated notes due 2013 1,577 1,636 1,369 1,255 1,284 18 19 Senior notes due 2014 and 2017 - - - - - 1,489 1,505 Lucas Varity senior notes 167 189 202 181 - Other borrowings 142 45 58 109 97 109 129 Northrop seller note 348 382 - - -

Total debt 3,912 3,808 3,181 3,236 3,032 3,515 3,244 Net debt 3,437$ 2,964$ 2,372$ 2,560$ 2,443$ 3,029$ 2,345$

Period-End Balances

2007 Q4 TRW Auto Earnings Presentation

Economy & Finance