2007 q2 trw auto earnings presentation

TRW Automotive Holdings Corp.

“The Global Leader inAutomotive Safety Systems”

August 1, 2007

Materials Included

Second Quarter 2007 Conference Call Materials

Pages- Press Release 1-8- Financial Summaries A1-A9- Presentation P1-P19

TRW Automotive News 12001 Tech Center Drive

Livonia, MI 48150 Release

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

Manley Ford (734) 855-2616

TRW Automotive Reports Second Quarter 2007 Financial Results LIVONIA, MICHIGAN, August 1, 2007 — TRW Automotive Holdings Corp. (NYSE:

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

quarter 2007 financial results with sales of $3.8 billion, an increase of 8.5 percent

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

earnings of $97 million or $0.94 per diluted share, which compares to net earnings of

$91 million or $0.88 per diluted share in the prior year period.

During the second quarter, the Company completed the final step of its 2007 debt

recapitalization plan with the successful refinancing of its $2.5 billion credit facilities in

May. The debt recapitalization provides a new debt structure that lowers the

Company’s borrowing costs, improves financial flexibility and extends debt maturities.

The second quarter results included $8 million of costs related primarily to the

refinancing of the Company’s credit facilities. Net earnings in the 2007 quarter

excluding these charges were $105 million or $1.02 per diluted share. The current year

benefited primarily from a lower tax rate between the two periods and a higher level of

operating income.

“Significant progress has been made to transform TRW into a leading supplier to the

global automotive industry since becoming an independent Company just four years

ago,” said John Plant, president and chief executive officer. “The strength provided by

our enviable safety product portfolio, solid customer base and leading global

diversification, together with intense cost reduction efforts and deleveraging activities,

have been key to this progress and have helped to mitigate challenging industry

conditions, particularly in North America.”

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Mr. Plant added, “The transformation of TRW is not complete and we look forward to

the future due to strong customer acceptance of our leading safety technologies, which

we expect will be further enhanced by growth in Asian emerging markets. We continue

to explore strategies that will strengthen our competitiveness and help to achieve our

goal of growing the Company profitably over the long term.”

Second Quarter 2007 The Company reported second-quarter 2007 sales of $3.8 billion, an increase of $293

million or 8.5 percent over the prior year period. The 2007 quarter benefited from the

positive effect of foreign currency translation, higher customer vehicle production in

Europe and China and continued growth of safety products in all markets, including

above-trend sales of lower margin modules. These positive factors were partially offset

by lower vehicle production levels at our major customers in North America and price

reductions provided to customers.

Operating income for second-quarter 2007 was $205 million, which compares to $201

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

factors, including higher product volumes, savings generated from cost improvement

and efficiency programs, including reductions in pension and OPEB related costs, and

other positive items, most notably gains related to property sales and favorable supplier

resolutions. These positive factors were in part offset by pricing provided to customers,

higher commodity prices, a negative mix of products sold and certain unfavorable

product-related settlements. Restructuring and asset impairment expenses in the 2007

period were $11 million, which is unchanged from the previous year.

Net interest and securitization expense for the second quarter of 2007 totaled $57

million, which compares to $61 million in the prior year. The year-to-year decline can

be attributed to the benefits derived from the Company’s 2007 debt recapitalization. As

mentioned previously, the 2007 quarter included debt retirement costs of $8 million.

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Second-quarter 2007 tax expense was $45 million, resulting in an effective tax rate of

32 percent, which compares to $53 million or 37 percent in the prior year. The effective

tax rate in the 2007 quarter excluding debt retirement expenses was 30 percent. As

mentioned previously, the lower effective tax rate in the 2007 quarter contributed to the

increase in net earnings compared to the previous year. Additionally, the 2007

adjusted tax rate is below the expected full year rate primarily due to the Company’s

geographic earnings profile in the quarter.

The Company reported second-quarter 2007 net earnings of $97 million, or $0.94 per

diluted share, which compares to $91 million or $0.88 per diluted share in the 2006

period. Net earnings in the 2007 quarter excluding previously mentioned debt

retirement costs of $8 million were $105 million or $1.02 per diluted share.

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

depreciation and amortization (“EBITDA”) were $344 million in the second quarter,

which compares to the prior year level of $326 million.

First Half 2007 The Company reported first-half 2007 sales of $7.3 billion, an increase of $464 million

or 6.8 percent compared to prior year sales of $6.9 billion. The 2007 period benefited

primarily from the positive effect of foreign currency translation and higher product

volumes related to new product growth and robust industry sales in overseas markets.

These positives were partially offset by the continued decline in North American

customer vehicle production and price reductions provided to customers.

Operating income for the first half of 2007 was $380 million, which is down from the

prior year result of $428 million. The year-to-year decline was driven by a number of

factors, including pricing provided to customers, negative product mix (particularly in the

first quarter) and higher commodity prices. Additionally, the comparison was negatively

impacted by Company specific issues predominantly in the first quarter related to a roof

collapse in Brazil and underperformance in the Automotive Components segment.

Savings generated from cost improvement and efficiency programs, including

reductions in pension and OPEB related costs, and higher product volumes helped to

offset these factors. Restructuring and asset impairment expenses in both the 2007

and 2006 periods were $19 million.

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Net interest and securitization expense in the first-half 2007 period was $121 million,

which represents a slight improvement from the prior year result of $122 million.

Benefits derived from the Company’s debt recapitalization more than offset the

unfavorable impact of higher interest rates between the two periods. As a reminder,

first quarter actions related to the debt recapitalization included a $1.5 billion Senior

Note offering and the tender for substantially all of the Company’s outstanding $1.3

billion Notes. The 2007 period included debt retirement costs of $155 million related to

the debt recapitalization. In comparison, the 2006 period included debt retirement

charges of $57 million.

First-half 2007 tax expense was $98 million, resulting in an effective tax rate 90

percent, which compares to $116 million or 46 percent in the prior year. The effective

tax rate, excluding previously mentioned debt retirement expenses from both periods,

was 37 percent in each of the years.

The Company reported first-half 2007 net earnings of $11 million, or $0.11 per diluted

share, which compares to $138 million or $1.34 per diluted share in the 2006 period.

Net earnings excluding the previously mentioned debt retirement costs from both

periods were $166 million or $1.62 per diluted share in 2007 and $195 million or $1.89

per diluted share in 2006.

EBITDA was $653 million in the first half of 2007, which is down from the prior year

level of $686 million primarily due to the lower level of operating income in the current

year.

Cash Flow and Capital Structure Second quarter net cash provided by operations was $290 million, which compares to

$233 million in the prior year. Cash flow in the 2007 period included proceeds of $127

million related to outstanding borrowings under the Company’s U.S. based Accounts

Receivable Securitization Facility (“Receivable Facility”). Absent these proceeds, the

Company’s cash flow from operations in the 2007 quarter was $163 million, which is

below the prior year result primarily due to higher working capital needs in the current

year. Second quarter capital expenditures were $109 million compared to $119 million

in 2006.

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For the six month period ended June 29, 2007, the Company generated net cash from

operating activities of $69 million, which compares to $251 million in the prior year.

Excluding proceeds related to outstanding borrowings under the Receivable Facility,

cash flow from operations was a use of $58 million in the 2007 period. The year-to-

year change resulted primarily from higher working capital requirements, including the

impact of seasonal factors, and a lower level of earnings in the 2007 period. First half

capital expenditures were $228 million compared to $202 million in 2006.

As part of the Company’s debt recapitalization plan, on May 9, 2007, it refinanced $2.5

billion of its existing credit facilities with new credit facilities in approximately the same

amount. The Company also completed its $1.5 billion Senior Note offering on March

26, 2007. Proceeds from the note offering were used to repurchase substantially all of

the existing $1.3 billion Notes through a tender offer. The Company incurred debt

retirement charges of approximately $155 million during the year-to-date period related

to these transactions.

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 June 29, 2007, the Company had $3,042 million of debt and $284 million of cash

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

marketable securities) of $2,758 million. Net debt adjusted to include proceeds of $127

million from outstanding borrowings under the Receivables Facility was $2,885 million,

which represents a decrease of $70 million compared to the balance at the end of the

first quarter. This lower level primarily reflects the favorable operating cash flow

outcome in the second quarter.

On June 4, 2007, the Company completed a secondary public offering of 11 million

shares of its common stock held by an affiliate of The Blackstone Group L.P. and

certain members of TRW management. The Company did not receive any proceeds

related to this offering. As a result of this transaction, Blackstone’s ownership stake in

TRW fell to 46.4%. Consequently, TRW has ceased to be a “controlled company”

within the meaning of the New York Stock Exchange corporate governance rules.

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2007 Outlook The Company updated its full year outlook to reflect the impact of the previously

mentioned credit facilities refinancing transaction and to account for other changes to

its forecast assumptions. The Company expects full year sales in the range of $14.1 to

$14.5 billion (including third quarter sales of approximately $3.4 billion) and net

earnings per diluted share in the range of $0.55 to $0.85. Net earnings excluding debt

retirement expenses of $155 million are expected to be in the range of $2.05 to $2.35,

which is unchanged from previous estimates.

This guidance range reflects pre-tax restructuring expenses of approximately $45

million (including approximately $12 million in the third quarter). The effective tax rate

after excluding debt retirement costs is expected to be in the range of approximately 40

to 44 percent. Lastly, the Company expects capital expenditures in 2007 to be

approximately 4 percent of sales.

Second Quarter 2007 Conference Call The Company will host its second-quarter conference call at 8:30 a.m. (EDT) today,

Wednesday, August 1, to discuss financial results and other related matters. To access

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

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

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

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

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

dial (706) 645-9291. The replay code is 7220208. 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.

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http://www.trw.com/results

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, operates in 28 countries and employs approximately 63,800 people

worldwide. TRW Automotive products include integrated vehicle control and driver

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

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

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

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

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

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

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

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

Reform Act of 1995. 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 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; loss of market share by domestic vehicle manufacturers; efforts by

our customers to consolidate their supply base; severe inflationary pressures impacting

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http://www.trw.com/

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.

# # #

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

A2


Condensed Consolidated Statements of Earnings (Unaudited)

(In millions, except per share amounts) Three Months Ended June 29, 2007 June 30, 2006 Sales ........................................................................................... $ 3,754 $ 3,461 Cost of sales................................................................................ 3,414 3,103 Gross profit ............................................................................ 340 358 Administrative and selling expenses ........................................... 143 140 Amortization of intangible assets................................................. 9 9 Restructuring charges and asset impairments ............................ 11 11 Other income — net .................................................................... (28) (3) Operating income .................................................................. 205 201 Interest expense — net ............................................................... 56 60 Loss on retirement of debt........................................................... 8 — Accounts receivable securitization costs..................................... 1 1 Equity in earnings of affiliates, net of tax..................................... (9) (9) Minority interest, net of tax .......................................................... 7 5 Earnings before income taxes ............................................. 142 144 Income tax expense .................................................................... 45 53 Net earnings........................................................................ $ 97 $ 91 Basic earnings per share: Earnings per share .................................................................... $ 0.97 $ 0.91 Weighted average shares ......................................................... 99.5 100.3 Diluted earnings per share: Earnings per share .................................................................... $ 0.94 $ 0.88 Weighted average shares ......................................................... 103.4 103.7

A3


Condensed Consolidated Statements of Earnings (Unaudited)

(In millions, except per share amounts) Six Months Ended June 29, 2007 June 30, 2006 Sales............................................................................................ $ 7,321 $ 6,857 Cost of sales ................................................................................ 6,661 6,138 Gross profit ............................................................................ 660 719 Administrative and selling expenses............................................ 275 269 Amortization of intangible assets ................................................. 18 18 Restructuring charges and asset impairments ............................ 19 19 Other income — net..................................................................... (32) (15) Operating income .................................................................. 380 428 Interest expense — net................................................................ 119 120 Loss on retirement of debt ........................................................... 155 57 Accounts receivable securitization costs ..................................... 2 2 Equity in earnings of affiliates, net of tax ..................................... (15) (13) Minority interest, net of tax........................................................... 10 8 Earnings before income taxes.............................................. 109 254 Income tax expense..................................................................... 98 116 Net earnings ........................................................................ $ 11 $ 138 Basic earnings per share: Earnings per share .................................................................... $ 0.11 $ 1.38 Weighted average shares.......................................................... 99.0 99.9 Diluted earnings per share: Earnings per share .................................................................... $ 0.11 $ 1.34 Weighted average shares.......................................................... 102.5 103.3

A4


Condensed Consolidated Balance Sheets

(Dollars in millions) As of

June 29,

2007 December 31,

2006 (Unaudited)

Assets

Current assets: Cash and cash equivalents.................................................... $ 275 $ 578 Marketable securities............................................................. 9 11 Accounts receivable — net .................................................... 2,194 2,049 Receivable from affiliate ........................................................ 359 — Inventories ............................................................................. 847 768 Prepaid expenses and other current assets .......................... 303 270

Total current assets.................................................................... 3,987 3,676 Property, plant and equipment — net......................................... 2,746 2,714 Goodwill...................................................................................... 2,282 2,275 Intangible assets — net.............................................................. 725 738 Pension asset............................................................................. 1,028 979 Other assets ............................................................................... 773 751

Total assets ............................................................................ $ 11,541 $ 11,133

Liabilities, Minority Interests and Stockholders’ Equity

Current liabilities: Short-term debt ..................................................................... $ 140 $ 69 Current portion of long-term debt .......................................... 31 101 Trade accounts payable........................................................ 2,218 1,977 Accrued compensation.......................................................... 295 271 Other current liabilities .......................................................... 1,166 1,257

Total current liabilities................................................................. 3,850 3,675 Long-term debt ........................................................................... 2,871 2,862 Post-retirement benefits other than pensions............................. 635 645 Pension benefits......................................................................... 700 722 Other long-term liabilities............................................................ 865 723

Total liabilities......................................................................... 8,921 8,627 Minority interests ........................................................................ 120 109

Commitments and contingencies

Stockholders’ equity: Capital stock.......................................................................... 1 1 Treasury stock....................................................................... – — Paid-in-capital ....................................................................... 1,164 1,125 Retained earnings ................................................................. 319 308 Accumulated other comprehensive earnings ........................ 1,016 963

Total stockholders’ equity........................................................... 2,500 2,397 Total liabilities, minority interests and stockholders’ equity .... $ 11,541 $ 11,133

A5


Condensed Consolidated Statements of Cash Flows (Unaudited)

(Dollars in millions) Six Months Ended June 29,2007 June 30, 2006 Operating Activities Net earnings ..................................................................................... $ 11 $ 138 Adjustments to reconcile net earnings to net cash provided by (used in) operating activities:

Depreciation and amortization........................................................ 268 253 Other — net .................................................................................... 70 (20)

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

Accounts receivable — net, and receivable from affiliate .............. (450) (288) Inventories...................................................................................... (54) 3 Trade accounts payable................................................................. 201 74 Other assets ................................................................................... (38) 3 Other liabilities................................................................................ 61 88 Net cash provided by operating activities..................................... 69 251

Investing Activities Capital expenditures......................................................................... (228) (202) Proceeds from asset sales and divestitures, net of acquisitions ...... 11 10 Other — net...................................................................................... (12) (1)

Net cash used in investing activities............................................. (229) (193) Financing Activities Change in short-term debt................................................................ 50 (19) Net proceeds from revolving credit facility........................................ 200 — Proceeds from issuance of long-term debt, net of fees.................... 2,582 22 Redemption of long-term debt.......................................................... (2,993) (273) Proceeds from exercise of stock options.......................................... 28 17

Net cash used in financing activities............................................ (133) (253) Effect of exchange rate changes on cash ........................................ (10) 39 Decrease in cash and cash equivalents........................................... (303) (156) Cash and cash equivalents at beginning of period........................... 578 659 Cash and cash equivalents at end of period .................................... $ 275 $ 503

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 Report on Form 10-Q for the period ended March 30, 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 June 29, 2007 June 30, 2006 GAAP net earnings........................................................ $ 97 $ 91

Income tax expense ................................................ 45 53 Interest expense — net ........................................... 56 60 Loss on retirement of debt....................................... 8 — Accounts receivable securitization costs ................. 1 1 Depreciation and amortization................................. 137 121

EBITDA ......................................................................... $ 344 $ 326

(Dollars in millions) Six Months Ended June 29, 2007 June 30, 2006 GAAP net earnings ....................................................... $ 11 $ 138

Income tax expense ................................................ 98 116 Interest expense — net ........................................... 119 120 Loss on retirement of debt ...................................... 155 57 Accounts receivable securitization costs................. 2 2 Depreciation and amortization ................................ 268 253

EBITDA......................................................................... $ 653 $ 686


Reconciliation of GAAP Net Earnings to Adjusted Earnings (Unaudited)

In conjunction with the Company’s tender offer and repurchases 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, (collectively, the “Old Notes”), the Company recorded a loss on retirement of debt of $1 million during the three months ended June 29, 2007 for additional redemption premiums paid. 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 second quarter of 2007. The following reconciliation excludes the impact of the loss on retirement of debt.

(In millions, except per share amounts)

Three MonthsEnded

June 29, 2007Actual Adjustments

Three Months Ended

June 29,2007 Adjusted

Sales ..................................................................... $ 3,754 $ — $ 3,754

Cost of sales ......................................................... 3,414 — 3,414

Gross profit........................................................ 340 — 340

Administrative and selling expenses..................... 143 — 143

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

Restructuring charges and asset impairments...... 11 — 11

Other income — net .............................................. (28) — (28)

Operating income.............................................. 205 — 205

Interest expense, net............................................. 56 — 56

Loss on retirement of debt .................................... 8 (8) (a) —

Account receivable securitization costs ................ 1 — 1

Equity in earnings of affiliates, net of tax .............. (9) — (9)

Minority interest, net of tax.................................... 7 — 7

Earnings before income taxes .......................... 142 8 150

Income tax expense ............................................. 45 — 45

Net earnings ..................................................... $ 97 $ 8 $ 105

Effective tax rate ................................................... 32% 30%

Basic earnings per share:

Earnings per share.............................................. $ 0.97 $ 1.06

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

Diluted earnings per share:

Earnings per share.............................................. $ 0.94 $ 1.02

Weighted average shares ................................... 103.4 103.4

(a) Reflects the elimination of the loss on retirement of debt.

A7


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 six months ended June 29, 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. 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 second quarter of 2007. The following reconciliation excludes the impact of the loss on retirement of debt.


Six Months Ended


Six Months Ended

June 29, 2007 Adjusted

Sales ..................................................................... $ 7,321 $ — $ 7,321

Cost of sales ......................................................... 6,661 — 6,661

Gross profit ....................................................... 660 — 660

Administrative and selling expenses..................... 275 — 275

Amortization of intangible assets .......................... 18 — 18

Restructuring charges and asset impairments ..... 19 — 19

Other income — net.............................................. (32) — (32)

Operating income.............................................. 380 — 380

Interest expense, net ............................................ 119 — 119

Loss on retirement of debt .................................... 155 (155) (a) —

Account receivable securitization costs................ 2 — 2

Equity in earnings of affiliates, net of tax .............. (15) — (15)

Minority interest, net of tax.................................... 10 — 10

Earnings before income taxes .......................... 109 155 264

Income tax expense ............................................. 98 — 98

Net earnings ..................................................... $ 11 $ 155 $ 166

Effective tax rate ................................................... 90% 37%

Basic earnings per share:

Earnings per share ............................................. $ 0.11 $ 1.68

Weighted average shares................................... 99.0 99.0

Diluted earnings per share:

Earnings per share ............................................. $ 0.11 $ 1.62

Weighted average shares................................... 102.5 102.5


A8


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, the Company recorded a loss on retirement of debt of £32 million, or approximately $57 million. Such loss on retirement of debt carries zero tax benefit due to the Company’s tax loss position in the respective jurisdiction. The following adjustment excludes the loss on retirement of debt to show the impact as if this transaction had not occurred.


Six Months Ended


Six Months Ended

June 30, 2006 Adjusted

Sales ................................................................... $ 6,857 $ — $ 6,857 Cost of sales........................................................ 6,138 — 6,138 Gross profit...................................................... 719 — 719 Administrative and selling expenses................... 269 — 269 Amortization of intangible assets ........................ 18 — 18 Restructuring charges and asset impairments.... 19 — 19 Other income — net ............................................ (15) — (15) Operating income............................................ 428 — 428 Interest expense, net........................................... 120 — 120 Loss on retirement of debt .................................. 57 (57) (a) — Account receivable securitization costs .............. 2 — 2 Equity in earnings of affiliates, net of tax ............ (13) — (13) Minority interest, net of tax .................................. 8 — 8 Earnings before income taxes......................... 254 57 311 Income tax expense ........................................... 116 — 116 Net earnings ................................................... $ 138 $ 57 $ 195 Effective tax rate ................................................. 46% 37% Basic earnings per share: Earnings per share............................................ $ 1.38 $ 1.95 Weighted average shares ................................. 99.9 99.9 Diluted earnings per share: Earnings per share............................................ $ 1.34 $ 1.89

Weighted average shares ................................. 103.3 103.3


A9


“The Global Leader inAutomotive Safety Systems”

Second Quarter 2007 Financial Results PresentationAugust 1, 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 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; 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’s strong financial performance continued during the second quarter:– Accomplished operating objectives– Executed final step of the 2007 debt recapitalization plan – Concluded a solid first half of the year

• TRW Strategy – key to success:– Demand for safety (government regulations,

manufacturers, and consumers) driving content growth– Well-placed to benefit from growth in emerging

markets– Enviable breadth of safety, solid customer

base and leading global diversification provide stability

– Leading-edge technology – Effective cost management– Strategic Priorities ingrained in

daily business decisions


Second Quarter• Sales of $3.8 billion, an increase of 8.5% over the prior year period:

– Foreign currency translation – New business content and growth in emerging markets – Big 3 North American industry production– Customer pricing

• GAAP net earnings of $97 million or $0.94 per share– Includes $8 million of debt retirement charges

• Net earnings excluding debt retirement charges were $105 million or $1.02 per diluted share(a)

First Half• Sales of $7.3 billion, an increase of 6.8% over the prior year period• GAAP net earnings of $11 million or $0.11 per share

– Includes $155 million of debt retirement charges• Net earnings excluding debt retirement charges were $166 million or

$1.62 per diluted share(a)

Financial Summary

(a) For adjusted results comparison and reconciliation to GAAP, please see slides P10 and P12.

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• Recorded another quarter of steady business wins with the world’s leading vehicle manufacturers:

– Pace of wins supports expectation of 4% compounded annual growth rate (CAGR)

• Investment in technology helping to ensure our future growth and sustainability. Examples include:

– Electric Park Brake

– Electrically Powered Steering

– Rollover Curtain Airbag

• Other developments:– Signed first-of-kind agreement in China with National Center of Supervision

and Vehicle Inspections to support the development of safety restraints for domestic Chinese OEMs

– Recently hosted 3,000 customer employees at three very successful technology exhibitions showcasing our active and passive safety capabilities

– Automotive Components performance stabilized – second half will be challenging– Capital structure changes

Recently surpassed 2 million units shipped

Quarterly Developments

Energy consumption just 10% of conventional hydraulic power steering

Features cold gas inflator and specially coated airbag to provide for up to 6 seconds of inflation


21.020.4

19.920.2

19.2

9.710.2

10.911.4

11.9

15.115.3

15.815.815.9

2007 Operating Environment

• North American vehicle production forecast now at 15.1 million units, down approximately 100K units from previous estimate.

• Big 3 production forecast in North American remains flat for the second half of 2007.

• European vehicle production forecast unchanged.

• Persistent commodity inflation (magnesium, nickel, and zinc) 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 $14.1 to $14.5 billion

• GAAP net earnings per diluted share of $0.55 to $0.85– Includes $155 million of debt retirement charges related to the

2007 debt recapitalization

• Net earnings per diluted share excluding debt charges in the range of $2.05 to $2.35 — unchanged from previous estimates(a)

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

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

• Effective tax rate excluding debt retirement charges in the range of approximately 40% - 44%

2007 Full Year Outlook

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


Financial OverviewJoseph S. CantieExecutive Vice Presidentand Chief Financial Officer


(dollars in millions, except where noted)

GAAP Results

Adjusting Item

Adjusted Results

GAAP Results

Sales 3,754$ -$ 3,754$ 3,461$ Operating Income 205 - 205 201 Net Interest and Securitization 57 - 57 61 Loss on Retirement of Debt 8 (8) - - Equity in Earnings of Affiliates (9) - (9) (9) Minority Interest 7 - 7 5 Income Tax Expense 45 - 45 53 Effective Tax Rate 32% 30% 37%Net Earnings 97$ 8$ 105$ 91$ Share Count 103.4 103.4 103.7 Earnings Per Share 0.94$ 1.02$ 0.88$

Q2 2007 Q2 2006

Second Quarter Results

(a) $8 million loss on retirement of debt related primarily to the Company’s $2.5 billion credit facilities refinancing transaction.

(a)


Second Quarter EBITDA

(a) Please refer to slide P18 for management’s rationale for using this metric.


Q2 2007 Q2 2006GAAP Net Earnings 97$ 91$ Income Tax Expense 45 53 Net Interest & Securitization 57 61 Loss on Retirement of Debt 8 - Depreciation & Amortization 137 121 EBITDA (a) 344$ 326$

Memo:Restructuring & AssetImpairments Included in EBITDA 11$ 11$



GAAP Results

Adjusting Item

Adjusted Results

GAAP Results

Adjusting Item

Adjusted Results

Sales 7,321$ -$ 7,321$ 6,857$ -$ 6,857$ Operating Income 380 - 380 428 - 428 Net Interest and Securitization 121 - 121 122 - 122 Loss on Retirement of Debt 155 (155) (a) - 57 (57) (b) - Equity in Earnings of Affiliates (15) - (15) (13) - (13) Minority Interest 10 - 10 8 - 8 Income Tax Expense 98 - 98 116 - 116 Effective Tax Rate 90% 37% 46% 37%Net Earnings 11$ 155$ 166$ 138$ 57$ 195$ Share Count 102.5 102.5 103.3 103.3 Earnings Per Share 0.11$ 1.62$ 1.34$ 1.89$

First Half 2006First Half 2007

First Half Results

(a) $155 million loss on retirement of debt related to the Company’s 2007 debt recapitalization.(b) $57 million loss on retirement of debt related to Lucas bond tender transaction.


First Half EBITDA

(a) Please refer to slide P18 for management’s rationale for using this metric.


First Half 2007

First Half 2006

GAAP Net Earnings 11$ 138$ Income Tax Expense 98 116 Net Interest & Securitization 121 122 Loss on Retirement of Debt 155 57 Depreciation & Amortization 268 253 EBITDA(a) 653$ 686$

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


Net Debt Summary(a)

$3,437$2,964

$2,515 $2,443 $2,955$2,656$2,372 $2,758$2,560

Feb 28,2003

Dec 31,2003

Dec 31,2004

Dec 31,2005

Mar 31,2006

June 30,2006

Dec 31,2006

Mar 30,2007

June 29,2007

Capital Structure Summary

(a) Net debt is equal to total indebtedness minus cash, cash equivalents and marketable securities. For net debt reconciliation to closest GAAP equivalent, please refer to the reconciliation on slide P19 of this presentation.

(b) Net debt adjusted to include receivables facility proceeds.

• Second quarter 2007 net cash from operating activities was $290 million, which compares to $233 million in the prior year period:

– Cash flow in the second quarter of 2007 included proceeds of $127 million related to outstanding borrowings under the Company’s Accounts Receivable Securitization Facility

• Capital expenditures in second quarter 2007 were $109 million, which compares to $119 million in the prior year period

Dalphimetal acquisition increased net debt by $244 million

$1.5 billion Senior Note offering and $1.3 billion tender transaction increased net debt by approximately $130 million $2,885(b)

$127 Million Receivable Facility Proceeds


2007 Outlook Detail

• Prospects for the second half remain positive – however, North American vehicle build remains uncertain

• Expect third quarter sales of $3.4 billion:– Based on vehicle production of 3.6 million units in North America and 4.7

million units in Europe– Lower Class 8 commercial vehicle build and increased module sales

(which have lower margins) will be at full swing in the third quarter

• Company continues to focus on the cost base to mitigate industrychallenges, while investing to continue growth and to remain globally competitive in the future


“DrivingAutomotiveSafety”


Financial Reconciliation Section


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 report on Form 10-Q for the period ended March 30, 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.


Net Debt Reconciliation

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

Cash 449$ 828$ 790$ 659$ 373$ 503$ 578$ 343$ 275$ Marketable securities 26 16 19 17 17 17 11 11 9

Total cash and marketable securities 475 844 809 676 390 520 589 354 284

Short term debt 168 76 40 98 98 83 69 125 140 Term loan facilities 1,510 1,480 1,512 1,593 1,588 1,585 1,582 1,579 1,100 Revolving credit facilities - - - - - - - - 200 Senior & senior subordinated notes due 2013 1,577 1,636 1,369 1,255 1,254 1,257 1,284 26 17 Senior notes due 2014 and 2017 - - - - - - - 1,467 1,469 Lucas Varity senior notes 167 189 202 181 - - - - - Other borrowings 142 45 58 109 106 110 97 112 116 Northrop seller note 348 382 - - - - - - -

Total debt 3,912 3,808 3,181 3,236 3,046 3,035 3,032 3,309 3,042 Net debt 3,437$ 2,964$ 2,372$ 2,560$ 2,656$ 2,515$ 2,443$ 2,955$ 2,758$

Memo:Receivable facility proceeds(a) - - - - - - - - 127$

Net debt including receivables facility proceeds 3,437$ 2,964$ 2,372$ 2,560$ 2,656$ 2,515$ 2,443$ 2,955$ 2,885$

Period-End Balances

(a) Proceeds related to outstanding borrowings under the Company’s U.S. based Accounts Receivable Securitization Facility.

2007 q2 trw auto earnings presentation

Economy & Finance

foreign currency

higher commodity

weighted average

similarly

foreign exchange

united states

original principal

opeb related