2007 trw auto earnings presentation

TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.

“The Global Leader inAutomotive Safety Systems”

First Quarter 2007 Conference Call Materials

May 2, 2007

Materials Included Pages- Press Release 1-6- Financial Summaries A1-A7- Presentation P1-P17

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

Manley Ford (734) 855-2616

TRW Automotive Reports First Quarter 2007 Financial Results

LIVONIA, MICHIGAN, May 2, 2007 — TRW Automotive Holdings Corp. (NYSE: TRW),

the global leader in active and passive safety systems, today reported first-quarter 2007

financial results with sales of $3.6 billion, an increase of 5.0 percent compared to the

same period a year ago. The Company reported a first quarter net loss of $(86) million

or $(0.87) per share, which compares to net earnings of $47 million or $0.46 per diluted

share in the previous year. Both periods included charges related to debt retirements.

In support of the Company’s effort to improve financial flexibility and to lower borrowing

costs, it issued $1.5 billion of Senior Notes and tendered for substantially all of its

outstanding $1.3 billion Notes due 2013 during the first quarter. As a result of the

transactions, the Company incurred debt retirement charges of $147 million for related

premiums and fees. Similarly, the 2006 quarter included debt retirement charges of

$57 million. Net earnings excluding debt retirement charges from both periods were

$61 million or $0.60 per diluted share in 2007 and $104 million or $1.01 per diluted

share in 2006. The year-to-year comparison was negatively impacted by difficult

industry conditions, including lower North American customer vehicle production and

commodity inflation, as well as an adverse mix of products sold and a higher tax rate

between the two periods. Additional factors included Company specific issues related

to a business disruption caused by a roof collapse at a facility in Brazil and

underperformance in the Automotive Components group.

“The Company is on track to achieve its full year objectives as the first quarter

operating results were consistent with our expectations despite continued North

American industry pressures,” said John Plant, president and chief executive officer.

TRW Automotive 12001 Tech Center Drive Livonia, MI 48150

News Release

2

Mr. Plant added, “Our steady financial performance can be attributed to the strength of

the Company’s safety portfolio, customer diversification and global sales balance,

together with the benefits derived from our extensive cost reduction and restructuring

programs.”

First Quarter 2007

The Company reported first-quarter 2007 sales of $3.6 billion, an increase of $171

million or 5.0 percent over the prior year period. The 2007 quarter benefited from the

positive effect of foreign currency translation and growth of safety products, including a

higher concentration of lower margin module business. These positives were partially

offset by the continued decline in North American customer vehicle production and

price reductions provided to customers.

Operating income for first-quarter 2007 was $175 million, which compares to $227

million in the prior year period. The year-to-year decline was driven by a number of

factors, including significantly lower North American customer vehicle production,

negative product mix, higher commodity prices and pricing provided to customers.

Additionally, the comparison was negatively impacted by the previously mentioned

business disruption in Brazil and further underperformance in the Automotive

Components segment. Savings generated from cost improvement and efficiency

programs, including reductions in pension and OPEB related costs, new business

growth and stable European production helped to offset these factors. Restructuring

and asset impairment expenses in the 2007 period were $8 million, which is equal to

the level reported in the previous year.

Net interest and securitization expense for the first quarter of 2007 increased to $64

million when compared to the prior year total of $61 million. The year-to-year increase

can be attributed primarily to the impact of rising interest rates on the Company’s

floating rate debt. As mentioned previously, both periods included debt retirement

costs, which were $147 million in the 2007 quarter and $57 million in the prior year.

3

First-quarter 2007 tax expense was $53 million, which compares to $63 million in the

prior year. The effective tax rate in the 2007 quarter excluding previously mentioned

debt retirement expenses was 46 percent, which is measurably higher than the

previous year’s adjusted rate of 38 percent. The higher effective tax rate contributed to

the decrease in net earnings when compared to the prior year results. Additionally, the

2007 adjusted rate is above the expected full year rate of 42 percent primarily due to

the impact of the Company’s geographic earnings profile in the first quarter.

The Company reported a first-quarter 2007 net loss of $(86) million, or $(0.87) per

share, which compares to $47 million or $0.46 per diluted share in the 2006 period. Net

earnings excluding the previously mentioned debt retirement costs from both periods

were $61 million or $0.60 per diluted share in 2007 and $104 million or $1.01 per

diluted share in 2006.

Earnings before interest, securitization costs, loss on retirement of debt, taxes,

depreciation and amortization (“EBITDA”) were $309 million in the first quarter, which is

down from the prior year level of $360 million.

Cash Flow and Capital Structure

Net cash from operating activities during the first quarter was a use of $221 million,

which compares to a source of $18 million in the prior year. The year-to-year change

resulted primarily from higher working capital requirements and lower earnings in the

2007 period. First quarter capital expenditures were $119 million compared to $83

million in 2006.

The Company completed its $1.5 billion Senior Note offering on March 26, 2007.

Proceeds from the debt offering were used to repurchase existing Notes through its

tender offer initiated on March 12. The Company incurred charges of $147 million in

related premiums paid and fees during the first quarter as a result of the tender

transaction. As of the expiration date on April 18, 2007, approximately 98.7 percent of

the aggregate principal amount of outstanding Notes had been tendered.

4

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 March 30, 2007, the Company had $3,309 million of debt and $354 million of cash

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

marketable securities) of $2,955 million, which represents an increase of $512 million

compared to year-end 2006. In addition to the higher level of working capital, the Senior

Note offering and Note tender transaction increased net debt by approximately $130

million during the first quarter.

2007 Outlook

The Company revised its full year outlook to reflect the impact of the previously

mentioned capital transactions and to account for other changes to its forecast

assumptions. The revised outlook calls for full year sales in the range of $13.8 to $14.2

billion (including second quarter sales of approximately $3.6 billion) and net earnings

per diluted share in the range of $0.62 to $0.92. Net earnings excluding first quarter

debt retirement expenses of $147 million are expected to be in the range of $2.05 to

$2.35, which is higher than previously provided guidance primarily due to an average

lower borrowing rate associated with the newly issued debt.

This guidance range reflects an increase in estimated pre-tax restructuring expenses

that now total approximately $45 million (including approximately $12 million in the

second quarter). The effective tax rate remains at approximately 42 percent. Lastly,

capital expenditures in 2007 are expected to be approximately 4 percent of sales.

First Quarter 2007 Conference Call

The Company will host its first-quarter conference call at 9:00 a.m. (EDT) today,

Wednesday, May 2, 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.

5

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 6471700. 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 2006 sales of $13.1 billion, TRW Automotive ranks among the world's leading

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

its subsidiaries, employs approximately 63,800 people in 26 countries. 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.

6

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. 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 our Report on Form 10-K for the fiscal year ended December

31, 2006 (the “10-K”), and include: production cuts or restructuring by our major

customers; work stoppages or other labor issues at the facilities of our customers or

suppliers; non-performance by, or insolvency of, our suppliers and customers, which

may be exacerbated by recent bankruptcies and other pressures within the automotive

industry; the inability of our suppliers to deliver products at the scheduled rate and

disruptions arising in connection therewith; interest rate risk arising from our variable

rate indebtedness (which constitutes a majority of the company’s indebtedness); loss of

market share by domestic vehicle manufacturers; efforts by our customers to

consolidate their supply base; severe inflationary pressures impacting the market for

commodities; escalating pricing pressures from our customers; our dependence on our

largest customers; fluctuations in foreign exchange rates; our substantial leverage;

product liability and warranty and recall claims and efforts by customers to alter terms

and conditions concerning warranty and recall participation; limitations on flexibility in

operating our business contained in our debt agreements; the possibility that our

owners’ interests will conflict with ours and other risks and uncertainties set forth under

“Risk Factors” 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.

# # #

TRW Automotive Holdings Corp.

Index of Condensed Consolidated Financial Informati on Page Condensed Consolidated Statements of Operations (unaudited) for the three months ended March 30, 2007 and March 31, 2006...................................................A2 Condensed Consolidated Balance Sheets as of March 30, 2007 (unaudited) and December 31, 2006 .....................................................................A3 Condensed Consolidated Statements of Cash Flows (unaudited) for the three months ended March 30, 2007 and March 31, 2006...................................................A4 Reconciliation of GAAP Net Earnings to EBITDA (unaudited) for the three months ended March 30, 2007 and March 31, 2006...................................................A5 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the three months ended March 30, 2007....................................................................................A6 Reconciliation of GAAP Net Earnings to Adjusted Earnings (unaudited) for the three months ended March 31, 2006....................................................................................A7

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, as filed with the United States Securities and Exchange Commission on February 23, 2007.

A2


Condensed Consolidated Statements of Operations (Unaudited)

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

March 30, 2007

March 31, 2006

Sales ........................................................................................... $ 3,567 $ 3,396 Cost of sales ............................................................................... 3,247 3,035 Gross profit............................................................................ 320 361 Administrative and selling expenses........................................... 132 129 Amortization of intangible assets ................................................ 9 9 Restructuring charges and asset impairments............................ 8 8 Other income — net.................................................................... (4) (12) Operating income.................................................................. 175 227 Interest expense — net............................................................... 63 60 Loss on retirement of debt .......................................................... 147 57 Accounts receivable securitization costs .................................... 1 1 Equity in earnings of affiliates, net of tax .................................... (6) (4) Minority interest, net of tax.......................................................... 3 3 (Losses) earnings before income taxes............................... (33) 110 Income tax expense.................................................................... 53 63 Net (losses) earnings.......................................................... $ (86) $ 47 Basic (losses) earnings per share: (Losses) earnings per share ..................................................... $ (0.87) $ 0.47

Weighted average shares ......................................................... 98.5 99.5

Diluted (losses) earnings per share: (Losses) earnings per share ..................................................... $ (0.87) $ 0.46

Weighted average shares ......................................................... 98.5 103.0

A3


Condensed Consolidated Balance Sheets

(Dollars in millions) As of

March 30, 2007

December 31, 2006

(Unaudited)

Assets

Current assets: Cash and cash equivalents ................................................................ $ 343 $ 578 Marketable securities ................................................................ 11 11 Accounts receivable — net ................................................................ 2,492 2,049 Inventories.......................................................................................... 821 768 Prepaid expenses and other current assets................................ 292 270

Total current assets ................................................................................ 3,959 3,676 Property, plant and equipment — net ....................................................... 2,733 2,714 Goodwill ................................................................................................ 2,281 2,275 Intangible assets — net ................................................................ 733 738 Pension asset ......................................................................................... 995 979 Other assets ........................................................................................... 772 751

Total assets......................................................................................... $ 11,473 $ 11,133

Liabilities, Minority Interests and Stockholders’ E quity

Current liabilities: Short-term debt.................................................................................. $ 125 $ 69 Current portion of long-term debt ...................................................... 101 101 Trade accounts payable ................................................................ 2,117 1,977 Accrued compensation ................................................................ 270 271 Other current liabilities................................................................ 1,120 1,257

Total current liabilities ............................................................................. 3,733 3,675 Long-term debt ....................................................................................... 3,083 2,862 Post-retirement benefits other than pensions ................................ 630 645 Pension benefits ..................................................................................... 721 722 Other long-term liabilities ................................................................ 865 723

Total liabilities ..................................................................................... 9,032 8,627 Minority interests..................................................................................... 114 109 Commitments and contingencies Stockholders’ equity:

Capital stock ...................................................................................... 1 1 Treasury stock ................................................................................... — — Paid-in-capital .................................................................................... 1,135 1,125 Retained earnings.............................................................................. 222 308 Accumulated other comprehensive earnings................................ 969 963

Total stockholders’ equity ................................................................ 2,327 2,397 Total liabilities, minority interests, and stockholders’ equity................ $ 11,473 $ 11,133

A4


Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions) Three Months Ended March 30, 2007 March 31, 2006 Operating Activities Net (losses) earnings ..................................................................................... $ (86) $ 47 Adjustments to reconcile net (losses) earnings to net cash provided by operating activities:

Depreciation and amortization................................................................ 131 132 Pension and other post-retirement benefits, net of contributions .......................... (41) (33) Loss on retirement of debt................................................................ 147 57 Other — net ................................................................................................ 10 (15)

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

(382)

(170)

Net cash (used in) provided by operating activities ................................ (221) 18 Investing Activities Capital expenditures including other intangibles ................................ (119) (83) Acquisitions, net of cash acquired and transaction fees ................................ (12) (1) Termination of interest rate swaps ................................................................ (12) — Net proceeds from asset sales, divestitures and sales/leasebacks ................. 7 8

Net cash used in investing activities................................................................ (136) (76) Financing Activities Change in short-term debt................................................................................. 36 (3) Proceeds from issuance of long-term debt........................................................ 1,477 3 Redemption of long-term debt................................................................ (1,396) (250) Proceeds from exercise of stock options........................................................... 5 7

Net cash provided by (used in) financing activities ................................ 122 (243) Effect of exchange rate changes on cash ......................................................... — 15 Decrease in cash and cash equivalents............................................................ (235) (286) Cash and cash equivalents at beginning of period................................ 578 659 Cash and cash equivalents at end of period ..................................................... $ 343 $ 373

A5


Reconciliation of GAAP Net Earnings 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, 2006, which contains 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, 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 30, 2007 March 31, 2006 GAAP net (losses) earnings........................................... $ (86) $ 47

Income tax expense ................................................. 53 63 Interest expense — net ............................................ 63 60 Loss on retirement of debt ....................................... 147 57 Accounts receivable securitization costs.................. 1 1 Depreciation and amortization ................................. 131 132

EBITDA.......................................................................... $ 309 $ 360

A6


Reconciliation of GAAP Net Earnings to Adjusted Ear nings (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 issue costs, $11 million relating to the principal amount in excess of carrying value of the 9⅜% Senior Notes and $5 million of fees. The following reconciliation excludes the impact of the loss on retirement of debt.

(In millions, except per share amounts)

Three Months Ended

March 30, 2007

Actual Adjustments

Three Months Ended

March 30, 2007

Adjusted

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

Cost of sales ................................................................ 3,247 — 3,247

Gross profit................................................................ 320 — 320

Administrative and selling expenses.............................. 132 — 132

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) —

Account 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 actual diluted losses per share 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

A7


Reconciliation of GAAP Net Earnings to Adjusted Ear nings (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, 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 impact.

(In millions, except per share amounts)

Three Months Ended

March 31, 2006

Actual Adjustments

Three Months Ended

March 31, 2006

Adjusted Sales .............................................................................. $ 3,396 $ — $ 3,396 Cost of sales................................................................ 3,035 — 3,035 Gross profit................................................................ 361 — 361 Administrative and selling expenses.............................. 129 — 129 Amortization of intangible assets ................................ 9 — 9 Restructuring charges and asset impairments............... 8 — 8 Other income — net ....................................................... (12) — (12) Operating income....................................................... 227 — 227 Interest expense, net...................................................... 60 — 60 Loss on retirement of debt ............................................. 57 (57) (a) — Account receivable securitization costs ......................... 1 — 1 Equity in earnings of affiliates, net of tax ....................... (4) — (4) Minority interest, net of tax ............................................. 3 — 3 Earnings before income taxes................................ 110 57 167 Income tax expense ...................................................... 63 — 63 Net earnings .............................................................. $ 47 $ 57 $ 104 Effective tax rate ............................................................ 57% 38% Basic earnings per share: Earnings per share....................................................... $ 0.47 $ 1.05

Weighted average shares ............................................ 99.5 99.5 Diluted earnings per share: Earnings per share....................................................... $ 0.46 $ 1.01

Weighted average shares ............................................ 103.0 103.0 (a) Reflects the elimination of the loss on retirement of debt.

TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.TRW Automotive Holdings Corp.

“The Global Leader inAutomotive Safety Systems”

First Quarter 2007 Financial Results PresentationMay 2, 2007

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. All forward-looking statements involve risks and uncertainties. Our actual results could differ materially from those contained in forward-looking statements made in this presentation. 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 our Report on Form 10-K for the fiscal year ended December 31, 2006 (the “10-K”), and include: production cuts or restructuring by our major customers; work stoppages or other labor issues at the facilities of our customers or suppliers; non-performance by, or insolvency of, our suppliers and customers, which may be exacerbated by recent bankruptcies and other pressures within the automotive industry; the inability of our suppliers to deliver products at the scheduled rate and disruptions arising in connection therewith; interest rate risk arising from our variable rate indebtedness (which constitutes a majority of the company’s indebtedness); loss of market share by domestic vehicle manufacturers; efforts by our customers to consolidate their supply base; severe inflationary pressures impacting the market for commodities; escalating pricing pressures from our customers; our dependence on our largest customers; fluctuations in foreign exchange rates; our substantial leverage; product liability and warranty and recall claims and efforts by customers to alter terms and conditions concerning warranty and recall participation; limitations on flexibility in operating our business contained in our debt agreements; the possibility that our owners’interests will conflict with ours and other risks and uncertainties set forth under “Risk Factors”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 Statement


Summary Comments

• Company is on track to achieve its full year object ives and marked a solid start to the year:– First quarter operating results were consistent with expectations – North American environment remains challenging, primarily due to

significant declines in Big 3 vehicle production– Commodity inflation continues to pressure results

• Success can be attributed to:– Growth of vehicle safety content

– Customer diversification– Geographic sales balance– Cost improvement and efficiency efforts

• Moved forward with plans to refinance the Company’s existing debt structure:– $1.5 billion Senior Note offering– Tendered for substantially all outstanding bonds due 2013

– Initiated plans to refinance $2.5 billion bank credit facilities – expect to complete in May

TRW’S PERFORMANCE IN THIS ENVIRONMENT FURTHER

EMPHASIZES ITS COMPETITIVE STRENGTHS

TRW’S PERFORMANCE IN THIS ENVIRONMENT FURTHER

EMPHASIZES ITS COMPETITIVE STRENGTHS


• Sales of $3.6 billion, an increase of 5.0% over the prior year period:– Foreign currency translation – New product sales – Big 3 North American industry production

– Customer pricing

• GAAP net loss of $(86) million or $(0.87) per share

• Net earnings excluding $147 million debt retirement charges were $61 million or $0.60 per diluted share (a)

• Adjusted 2007 results compare negatively to the pri or year’s adjusted results of $1.01 per share primarily due to: (a)

– Beneficial mix of products sold in the 2006 quarter– Adverse industry conditions and a higher tax rate in 2007

– Company specific issues due to property damage at a plant in Brazil and underperformance in the Automotive Components group

First Quarter 2007 Financial Summary

(a) For adjusted results comparison and reconciliation to GAAP, please see slide P10.

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++

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++


• New business summary:

– Recorded another quarter of steady business wins with a number of the world’s leading vehicle manufacturers

– Book of new business in place supports expectation to grow revenue at a 4% compounded annual growth rate (CAGR)

– Technology underpins success

• Quality efforts recognized:

– Received Gold and Silver Ford World Excellence Awards for 2006 performance in quality, cost and delivery

– Toyota recognized TRW China for outstanding quality of safety electronics crash sensors

• Aftermarket acquisition of Brake Engineering in Jan uary

• Automotive Components performance still down, but s howing improvement

Quarterly Developments


21.0

20.419.9

20.2

19.2

9.7

10.210.9

11.4

11.9

15.2

15.315.8

15.8

15.9

2007 Operating Environment

• North American vehicle production forecast now at 15.2 million units, down 200K units from previous estimate.

• Also, lowered Big 3 production forecast in North American, which is now expected to be down 5% compared to the previous year.

• North American commercial vehicle sales expected to drop significantly during the remaining nine months.

• European vehicle production forecast increased from previous estimate, mainly due to higher Eastern European volumes.

• Persistent commodity inflation and supplier issues expected to further pressure the cost base.

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

‘04

’03

‘05

‘06

North AmericaNorth

America

‘07

Big 3 North

America

Big 3 North

America

EuropeEurope

‘04

’03

‘05‘06

‘07

‘04

’03

‘05

‘06

‘07

2007 Industry Production Assumptions (1)

(units in millions)


• Expect sales in the range of $13.8 to $14.2 billion

• GAAP net earnings per diluted share of $0.62 to $0. 92

– Includes $147 million of debt retirement charges related to the $1.3 billion bond tender transaction

• Net earnings per diluted share excluding debt charg es in the range of $2.05 to $2.35 (a)

• Restructuring expenses (pre-tax) of approximately $ 45 million

• Capital spending expected to run at approximately 4 % of 2007 sales

• Effective tax rate of approximately 42%

2007 Full Year Outlook

(a) Per share amounts based on weighted average diluted shares outstanding of approximately 102.5 million shares.


Financial OverviewJoseph S. CantieExecutive Vice Presidentand Chief Financial Officer


First Quarter Results

(a) $147 million loss on retirement of debt related to $1.3 billion bond tender transaction.(b) $57 million loss on retirement of debt related to Lucas bond tender transaction.

(a) (b)

(dollars in millions, except where noted)

GAAP Results

Adjusting Item

Adjusted Results

GAAP Results

Adjusting Item

Adjusted Results

Sales 3,567$ -$ 3,567$ 3,396$ -$ 3,396$

Operating Income 175 - 175 227 - 227

Net Interest and Securitization 64 - 64 61 - 61

Loss on Retirement of Debt 147 (147) - 57 (57) -

Equity in Earnings of Affiliates (6) - (6) (4) - (4)

Minority Interest 3 - 3 3 - 3

Income Taxes 53 - 53 63 - 63

Effective Tax Rate n.m. 46% 57% 38%

Net Earnings (Losses) (86)$ 147$ 61$ 47$ 57$ 104$

Share Count 98.5 101.6 103.0 103.0

Earnings (Losses) Per Share (0.87)$ 0.60$ 0.46$ 1.01$

Q1 2006Q1 2007


First Quarter EBITDA

(a) Please refer to slide P16 for management’s rationale for using this metric.

(dollars in millions)

Q1 2007 Q1 2006

Net Earnings (Losses) (86)$ 47$

Income Tax Expense 53 63

Net Interest and Securitization 64 61

Loss on Retirement of Debt 147 57

Depreciation and Amortization 131 132

EBITDA (a)309$ 360$

Memo:Restructuring & Asset Impairments Included Above 8$ 8$


Net Debt Summary (a)

$3,437$2,964

$2,514 $2,669 $2,443$2,372 $2,560$2,955

Feb 28, 2003 Dec 31, 2003 Dec 31, 2004 Sep 30, 2005 Dec 31, 2005 Sep 29, 2006 Dec 31, 2006 Mar 30, 2007

Capital Structure Summary

(a) 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 P17 of this presentation.

Dalphimetal acquisition increased net debt by $244 million

(dollars in millions)

• First quarter 2007 net cash from operating activiti es was a use of $221 million, which compares to a source of $18 million in the pr ior year period

• Capital expenditures in first-quarter 2007 were $11 9 million, which compares to $83 million in the prior year period

$1.5 Senior Note offering and $1.3 billion tender transaction increased net debt by approximately $130 million


2007 Outlook Detail

• Increased full year earnings outlook after adjustme nts to account for lower interest expense as a result of the refinanci ng transactions completed in the first quarter

• Expect second quarter sales of $3.6 billion:

– Based on vehicle production of 4.1 million units in North America and 5.5 million units in Europe.

– Currency and module sales expected to positively impact the year-on-year sales comparison – will provide limited benefit at the operating profit line

– Lower Class 8 commercial vehicle builds will begin to negativelyimpact sales in the quarter

• Looking to build off solid first quarter results – f ocused on mitigating industry challenges, especially in North America


“DrivingAutomotiveSafety”


Financial Reconciliation Section


EBITDA Measurement

• The accompanying unaudited consolidated financial i nformation and reconciliation of GAAP net earnings to earnings before interest, income tax, a ccounts receivable securitization cost, loss on retirement of debt, and depreciation and amortiz ation (“EBITDA”) should be read in conjunction with the TRW Automotive Holdings Corp. Form 10-K for the year ended December 31, 2006, as filed with the United States Securitie s and Exchange Commission.

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

• 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 perf ormance, 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 payment s and debt service requirements. Because not all companies use identical calculation s, our presentation of EBITDA may not be comparable to other similarly titled measures of ot her companies.


Net Debt Reconciliation

(dollars in millions)2/28/03 12/31/03 12/31/04 12/31/05 3/31/06 6/30/06 9/29/06 12/31/06 3/30/07

Cash 449$ 828$ 790$ 659$ 373$ 503$ 358$ 578$ 343$ Marketable securities 26 16 19 17 17 17 11 11 11

Total 475 844 809 676 390 520 369 589 354

Short term debt 168 76 40 98 98 83 81 69 125

Long term debt:Term loan facilities 1,510 1,480 1,512 1,593 1,588 1,585 1,585 1,582 1,579 Senior & senior subordinated notes due 2013 1,577 1,636 1,369 1,255 1,254 1,257 1,273 1,284 26 Senior notes due 2014 and 2017 - - - - - - - - 1,467 Lucas Varity senior notes 167 189 202 181 - - - - - Other borrowings 142 45 58 109 106 110 99 97 112 Total Short & Long Term Debt 3,564 3,426 3,181 3,236 3,046 3,035 3,038 3,032 3,309

Net debt operating company 3,089$ 2,582$ 2,372$ 2,560$ 2,656$ 2,515$ 2,669$ 2,443$ 2,955$

Seller note 348 382 - - - - - - - Net debt TRW Holdings 3,437$ 2,964$ 2,372$ 2,560$ 2,656$ 2,515$ 2,669$ 2,443$ 2,955$

Period-End Balances

2007 trw auto earnings presentation

Economy & Finance