##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, DC 20549





Form 10-Q


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934 
|  
|   |  | For the quarterly period ended July 1, 2005                                                 
|  
|OR
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from          to          .                                   

Commission File No. 001-31970





TRW Automotive Holdings Corp.


(Exact name of registrant as specified in its charter)


|                                                                   |  |                                            
|------------------------------------------------------------------ |  | -------------------------------------------
|Delaware                                                           |  | 81-0597059                                 
|(State or other jurisdiction of
    Incorporation or Organization) |  | (I.R.S. Employer
    Identification Number)

12001 Tech Center Drive


Livonia, Michigan 48150


(734) 855-2600


(Address, Including Zip Code, and Telephone Number, Including
Area Code, of


Registrants Principal Executive Offices)


Securities registered pursuant to Section 12(b) of the
Act:


|                                        |  |                                          
|--------------------------------------- |  | -----------------------------------------
|Title of Each Class                     |  | Name of Each Exchange on Which Registered
|                                        |  |                                          
|Common Stock, $0.01 par value per share |  | New York Stock Exchange                  

Securities registered pursuant to Section 12(g) of the
Act:


None


þ o


o þ












---










TRW Automotive Holdings Corp.


Index


|                                                             |  |                                                                                                |  |      |    | 
|------------------------------------------------------------ |  | ---------------------------------------------------------------------------------------------- |  | ---- | -- | 
|                                                             |  |                                                                                                |  | Page |   
|                                                             |  |                                                                                                |  |      |   
|PART I  FINANCIAL
    INFORMATION                          
|Item 1                                                       |  | CONSOLIDATED FINANCIAL STATEMENTS
    (UNAUDITED)                                              |  |      | 2  | 
|Item 2                                                       |  | MANAGEMENTS DISCUSSION AND
    ANALYSIS OF FINANCIAL CONDITION AND  RESULTS OF
    OPERATIONS |  |      | 21 | 
|Item 3                                                       |  | QUANTITATIVE AND QUALITATIVE
    DISCLOSURES ABOUT MARKET RISKS                                |  |      | 37 | 
|Item 4                                                       |  | CONTROLS AND PROCEDURES                                                                        |  |      | 38 | 
|                                                            
|PART II  OTHER
    INFORMATION                             
|Item 1                                                       |  | LEGAL PROCEEDINGS                                                                              |  |      | 39 | 
|Item 2                                                       |  | UNREGISTERED SALES OF EQUITY
    SECURITIES AND USE OF PROCEEDS                                |  |      | 39 | 
|Item 4                                                       |  | SUBMISSION OF MATTERS TO A VOTE OF
    SECURITY HOLDERS                                        |  |      | 39 | 
|Item 5                                                       |  | OTHER INFORMATION                                                                              |  |      | 39 | 
|Item 6                                                       |  | EXHIBITS                                                                                       |  |      | 40 | 
|Third Amendment to Employment Agreement of Peter J. Lake    
|Third Amendment to Employment Agreement of David L. Bialosky
|Third Amendment to Employment Agreement of Joseph S. Cantie 
|Second Amendment to Employment Agreement of Neil E. Marchuk 
|Section 302 Certification                                   
|Section 302 Certification                                   
|Section 906 Certification                                   
|Section 906 Certification                                   



i



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##### Table of Contents






PART I







|        |                                  
|------- | ---------------------------------
|ITEM 1. | CONSOLIDATED FINANCIAL STATEMENTS

TRW Automotive Holdings Corp.


Consolidated Statements of Operations


(Unaudited)


|                                         |                         |                           |                              |       |               |     |       |       |     |     | 
|---------------------------------------- | ----------------------- | ------------------------- | ---------------------------- | ----- | ------------- | --- | ----- | ----- | --- | --- | 
|                                         |                         | Three Months Ended        |                             
|                                         |                         |                           |                             
|                                         |                         | July 1, 2005              |                              |       | June 25, 2004 |    
|                                         |                         |                           |                              |       |               |    
|                                         |                         | (In millions,             |                             
|                                         |                         | except per share amounts) |                             
|Sales                                    |                         | $                         | 3,365                        |       |               | $   | 3,163 |      
|Cost of sales                            |                         |                           | 2,959                        |       |               |     | 2,783 |      
|                                         |                         |                           |                              |       |               |    
|                                         |                         | Gross profit              |                              |       | 406           |     |       |       | 380 |    
|Administrative and selling expenses      |                         |                           | 126                          |       |               |     | 132   |      
|Research and development expenses        |                         |                           | 52                           |       |               |     | 42    |      
|Amortization of intangible assets        |                         |                           | 8                            |       |               |     | 8     |      
|Restructuring charges                    |                         |                           | 13                           |       |               |     | 8     |      
|Other (income) expense  net             |                         |                           | 9                            |       |               |     | (12   | )    
|                                         |                         |                           |                              |       |               |    
|                                         |                         | Operating income          |                              |       | 198           |     |       |       | 202 |    
|Interest expense  net                   |                         |                           | 54                           |       |               |     | 60    |      
|Loss on retirement of debt               |                         |                           | 7                            |       |               |     | 1     |      
|Accounts receivable securitization costs |                         |                           | 1                            |       |               |     |      |      
|                                         |                         |                           |                              |       |               |    
|                                         |                         |                           | Earnings before income taxes |       |               | 136 |       |       |     | 141 | 
|Income tax expense                       |                         |                           | 51                           |       |               |     | 65    |      
|                                         |                         |                           |                              |       |               |    
|                                         |                         |                           | Net earnings                 |       | $             | 85  |       |       | $   | 76  | 
|                                         |                         |                           |                              |       |               |    
|Basic earnings per share:                |                         |                           |                              |       |               |     |       |      
|                                         | Earnings per share      |                           | $                            | 0.86  |               |     | $     | 0.77  |    
|                                         |                         |                           |                              |       |               |    
|                                         | Weighted average shares |                           |                              | 99.0  |               |     |       | 98.9  |    
|                                         |                         |                           |                              |       |               |    
|Diluted earnings per share:              |                         |                           |                              |       |               |     |       |      
|                                         | Earnings per share      |                           | $                            | 0.83  |               |     | $     | 0.75  |    
|                                         |                         |                           |                              |       |               |    
|                                         | Weighted average shares |                           |                              | 102.2 |               |     |       | 101.3 |    
|                                         |                         |                           |                              |       |               |    



2



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##### Table of Contents



TRW Automotive Holdings Corp.


Consolidated Statements of Operations


(Unaudited)


|                                         |                         |                           |                              |       |               |     |       |      |     |     | 
|---------------------------------------- | ----------------------- | ------------------------- | ---------------------------- | ----- | ------------- | --- | ----- | ---- | --- | --- | 
|                                         |                         | Six Months Ended          |                             
|                                         |                         |                           |                             
|                                         |                         | July 1, 2005              |                              |       | June 25, 2004 |    
|                                         |                         |                           |                              |       |               |    
|                                         |                         | (In millions,             |                             
|                                         |                         | except per share amounts) |                             
|Sales                                    |                         | $                         | 6,590                        |       |               | $   | 6,086 |     
|Cost of sales                            |                         |                           | 5,820                        |       |               |     | 5,381 |     
|                                         |                         |                           |                              |       |               |    
|                                         |                         | Gross profit              |                              |       | 770           |     |       |      | 705 |    
|Administrative and selling expenses      |                         |                           | 262                          |       |               |     | 257   |     
|Research and development expenses        |                         |                           | 106                          |       |               |     | 79    |     
|Amortization of intangible assets        |                         |                           | 16                           |       |               |     | 17    |     
|Restructuring charges                    |                         |                           | 21                           |       |               |     | 13    |     
|Other (income) expense  net             |                         |                           | 12                           |       |               |     | (16   | )   
|                                         |                         |                           |                              |       |               |    
|                                         |                         | Operating income          |                              |       | 353           |     |       |      | 355 |    
|Interest expense  net                   |                         |                           | 112                          |       |               |     | 122   |     
|Loss on retirement of debt               |                         |                           | 7                            |       |               |     | 48    |     
|Accounts receivable securitization costs |                         |                           | 2                            |       |               |     | 1     |     
|                                         |                         |                           |                              |       |               |    
|                                         |                         |                           | Earnings before income taxes |       |               | 232 |       |      |     | 184 | 
|Income tax expense                       |                         |                           | 97                           |       |               |     | 106   |     
|                                         |                         |                           |                              |       |               |    
|                                         |                         |                           | Net earnings                 |       | $             | 135 |       |      | $   | 78  | 
|                                         |                         |                           |                              |       |               |    
|Basic earnings per share:                |                         |                           |                              |       |               |     |       |     
|                                         | Earnings per share      |                           | $                            | 1.36  |               |     | $     | 0.81 |    
|                                         |                         |                           |                              |       |               |    
|                                         | Weighted average shares |                           |                              | 99.0  |               |     |       | 96.6 |    
|                                         |                         |                           |                              |       |               |    
|Diluted earnings per share:              |                         |                           |                              |       |               |     |       |     
|                                         | Earnings per share      |                           | $                            | 1.33  |               |     | $     | 0.78 |    
|                                         |                         |                           |                              |       |               |    
|                                         | Weighted average shares |                           |                              | 101.6 |               |     |       | 99.5 |    
|                                         |                         |                           |                              |       |               |    



3



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##### Table of Contents



TRW Automotive Holdings Corp.


Consolidated Balance Sheets


|                                                             |                                          |                                                                     |       |       |                   |  |       |       |        | 
|------------------------------------------------------------ | ---------------------------------------- | ------------------------------------------------------------------- | ----- | ----- | ----------------- |  | ----- | ----- | ------ | 
|                                                             |                                          | As of                                                               |      
|                                                             |                                          |                                                                     |      
|                                                             |                                          | July 1, 2005                                                        |       |       | December 31, 2004 | 
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | (Unaudited)                                                         |       |       |                  
|                                                             |                                          | (Dollars in millions)                                               |      
|Assets                                                      
|Current assets:                                              |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Cash and cash equivalents                |                                                                     | $     | 506   |                   |  | $     | 790   |       
|                                                             | Marketable securities                    |                                                                     |       | 13    |                   |  |       | 19    |       
|                                                             | Accounts receivable  net                |                                                                     |       | 1,946 |                   |  |       | 1,813 |       
|                                                             | Inventories                              |                                                                     |       | 627   |                   |  |       | 684   |       
|                                                             | Prepaid expenses                         |                                                                     |       | 77    |                   |  |       | 34    |       
|                                                             | Deferred income taxes                    |                                                                     |       | 168   |                   |  |       | 176   |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total current assets                                         |                                          |                                                                     | 3,337 |       |                   |  | 3,516 |      
|Property, plant and equipment  net                          |                                          |                                                                     | 2,423 |       |                   |  | 2,635 |      
|Goodwill                                                     |                                          |                                                                     | 2,357 |       |                   |  | 2,357 |      
|Intangible assets  net                                      |                                          |                                                                     | 749   |       |                   |  | 765   |      
|Prepaid pension cost                                         |                                          |                                                                     | 204   |       |                   |  | 190   |      
|Deferred income taxes                                        |                                          |                                                                     | 115   |       |                   |  | 91    |      
|Other assets                                                 |                                          |                                                                     | 556   |       |                   |  | 560   |      
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | Total assets                                                        |       | $     | 9,741             |  |       | $     | 10,114 | 
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                            
|Liabilities, Minority Interests and Stockholders
    Equity
|Current liabilities:                                         |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Short-term debt                          |                                                                     | $     | 37    |                   |  | $     | 40    |       
|                                                             | Current portion of long-term debt        |                                                                     |       | 18    |                   |  |       | 19    |       
|                                                             | Trade accounts payable                   |                                                                     |       | 1,775 |                   |  |       | 1,887 |       
|                                                             | Accrued compensation                     |                                                                     |       | 294   |                   |  |       | 309   |       
|                                                             | Income taxes payable                     |                                                                     |       | 271   |                   |  |       | 233   |       
|                                                             | Other current liabilities                |                                                                     |       | 1,049 |                   |  |       | 992   |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total current liabilities                                    |                                          |                                                                     | 3,444 |       |                   |  | 3,480 |      
|Long-term debt                                               |                                          |                                                                     | 2,790 |       |                   |  | 3,122 |      
|Post-retirement benefits other than pensions                 |                                          |                                                                     | 941   |       |                   |  | 959   |      
|Pension benefits                                             |                                          |                                                                     | 775   |       |                   |  | 843   |      
|Deferred income taxes                                        |                                          |                                                                     | 254   |       |                   |  | 268   |      
|Long-term liabilities                                        |                                          |                                                                     | 268   |       |                   |  | 272   |      
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | Total liabilities                                                   |       |       | 8,472             |  |       |       | 8,944  | 
|Minority interests                                           |                                          |                                                                     | 62    |       |                   |  | 65    |      
|Commitments and contingencies                                |                                          |                                                                     |       |       |                   |  |       |      
|Stockholders equity:                                        |                                          |                                                                     |       |       |                   |  |       |      
|                                                             | Capital stock                            |                                                                     |       | 1     |                   |  |       | 1     |       
|                                                             | Treasury stock                           |                                                                     |       |      |                   |  |       |      |       
|                                                             | Paid-in-capital                          |                                                                     |       | 1,134 |                   |  |       | 1,131 |       
|                                                             | Retained earnings (accumulated deficit)  |                                                                     |       | 63    |                   |  |       | (72   | )     
|                                                             | Accumulated other comprehensive earnings |                                                                     |       | 9     |                   |  |       | 45    |       
|                                                             |                                          |                                                                     |       |       |                   | 
|Total stockholders equity                                   |                                          |                                                                     | 1,207 |       |                   |  | 1,105 |      
|                                                             |                                          |                                                                     |       |       |                   | 
|                                                             |                                          | Total liabilities, minority interests, and stockholders
    equity |       | $     | 9,741             |  |       | $     | 10,114 | 
|                                                             |                                          |                                                                     |       |       |                   | 



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TRW Automotive Holdings Corp.


Consolidated Statements of Cash Flows


(Unaudited)


|                                                                                                  |                                                                              |                                           |        |      |               |   |        |      |      |  
|------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------- | ----------------------------------------- | ------ | ---- | ------------- | - | ------ | ---- | ---- | -
|                                                                                                  |                                                                              | Six Months Ended                          |       
|                                                                                                  |                                                                              |                                           |       
|                                                                                                  |                                                                              | July 1, 2005                              |        |      | June 25, 2004 |  
|                                                                                                  |                                                                              |                                           |        |      |               |  
|                                                                                                  |                                                                              | (Dollars in millions)                     |       
|Operating Activities                                                                              |                                                                              |                                           |        |      |               |   |        |     
|Net earnings                                                                                      |                                                                              | $                                         | 135    |      |               | $ | 78     |     
|Adjustments to reconcile net earnings to net cash provided by
    (used in) operating activities: |                                                                              |                                           |        |      |               |   |        |     
|                                                                                                  | Depreciation and amortization                                                |                                           |        | 254  |               |   |        | 246  |     
|                                                                                                  | Pension and other post-retirement benefits contributions, net of
    expense |                                           |        | (66  | )             |   |        | (24  | )   
|                                                                                                  | Amortization of deferred financing fees                                      |                                           |        | 7    |               |   |        | 4    |     
|                                                                                                  | Loss on retirement of debt                                                   |                                           |        | 7    |               |   |        | 48   |     
|                                                                                                  | Deferred income taxes                                                        |                                           |        | (26  | )             |   |        | 4    |     
|                                                                                                  | Other  net                                                                  |                                           |        | 40   |               |   |        | 23   |     
|Changes in assets and liabilities, net of effects of businesses
    acquired or divested:         |                                                                              |                                           |        |      |               |   |        |     
|                                                                                                  | Accounts receivable, net                                                     |                                           |        | (282 | )             |   |        | (677 | )   
|                                                                                                  | Inventories                                                                  |                                           |        | 18   |               |   |        | 4    |     
|                                                                                                  | Trade accounts payable                                                       |                                           |        | (2   | )             |   |        | 143  |     
|                                                                                                  | Prepaid expense and other assets                                             |                                           |        | (30  | )             |   |        | (14  | )   
|                                                                                                  | Other liabilities                                                            |                                           |        | 157  |               |   |        | 193  |     
|                                                                                                  |                                                                              |                                           |        |      |               |  
|                                                                                                  |                                                                              | Net cash provided by operating activities |        |      | 212           |   |        |      | 28   |  
|Investing Activities                                                                              |                                                                              |                                           |        |      |               |   |        |     
|Capital expenditures                                                                              |                                                                              |                                           | (174   | )    |               |   | (162   | )   
|Acquisitions, net of cash acquired                                                                |                                                                              |                                           |       |      |               |   | (5     | )   
|Net proceeds from asset sales and divestitures                                                    |                                                                              |                                           |       |      |               |   | 108    |     
|                                                                                                  |                                                                              |                                           |        |      |               |  
|                                                                                                  |                                                                              | Net cash used in investing activities     |        |      | (174          | ) |        |      | (59  | )
|Financing Activities                                                                              |                                                                              |                                           |        |      |               |   |        |     
|Change in short-term debt                                                                         |                                                                              |                                           | (2     | )    |               |   | 4      |     
|Proceeds from issuance of long-term debt                                                          |                                                                              |                                           | 1,313  |      |               |   | 1,268  |     
|Redemption of long-term debt                                                                      |                                                                              |                                           | (1,598 | )    |               |   | (1,852 | )   
|Debt issue costs                                                                                  |                                                                              |                                           | (4     | )    |               |   | (7     | )   
|Issuance of capital stock, net of fees                                                            |                                                                              |                                           | 143    |      |               |   | 635    |     
|Repurchase of capital stock                                                                       |                                                                              |                                           | (143   | )    |               |   | (319   | )   
|Proceeds from exercise of stock options                                                           |                                                                              |                                           | 1      |      |               |   |       |     
|                                                                                                  |                                                                              |                                           |        |      |               |  
|                                                                                                  |                                                                              | Net cash used in financing activities     |        |      | (290          | ) |        |      | (271 | )
|Effect of exchange rate changes on cash                                                           |                                                                              |                                           | (32    | )    |               |   | (7     | )   
|                                                                                                  |                                                                              |                                           |        |      |               |  
|Decrease in cash and cash equivalents                                                             |                                                                              |                                           | (284   | )    |               |   | (309   | )   
|Cash and cash equivalents at beginning of period                                                  |                                                                              |                                           | 790    |      |               |   | 828    |     
|                                                                                                  |                                                                              |                                           |        |      |               |  
|Cash and cash equivalents at end of period                                                        |                                                                              | $                                         | 506    |      |               | $ | 519    |     
|                                                                                                  |                                                                              |                                           |        |      |               |  



5



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial Statements


(Unaudited)




|   |                        
|-- | -----------------------
|1. | Description of Business





|   |                      
|-- | ---------------------
|2. | Basis of Presentation







Earnings per share.


|                                    |  |               |       |  |            |  |       |         |  |  |          |  |  |  |      | 
|----------------------------------- |  | ------------- | ----- |  | ---------- |  | ----- | ------- |  |  | -------- |  |  |  | ---- | 
|                                    |  | Three Months  |       |  | Six Months | 
|                                    |  | Ended         |       |  | Ended      | 
|                                    |  |               |       |  |            | 
|                                    |  | July 1,       |       |  | June 25,   |  |       | July 1, |  |  | June 25, | 
|                                    |  | 2005          |       |  | 2004       |  |       | 2005    |  |  | 2004     | 
|                                    |  |               |       |  |            |  |       |         |  |  |          | 
|                                    |  | (In millions) |      
|Weighted average shares outstanding |  |               | 99.0  |  |            |  | 98.9  |         |  |  | 99.0     |  |  |  | 96.6 | 
|Effect of dilutive securities       |  |               | 3.2   |  |            |  | 2.4   |         |  |  | 2.6      |  |  |  | 2.9  | 
|                                    |  |               |       |  |            |  |       |         |  |  |          | 
|Diluted shares outstanding          |  |               | 102.2 |  |            |  | 101.3 |         |  |  | 101.6    |  |  |  | 99.5 | 
|                                    |  |               |       |  |            |  |       |         |  |  |          | 

Warranties.


6



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






|                                 |  |                       |     |         |          |   |          |                      |  |                |                  |   |  |         |     |   |  |   |     | 
|-------------------------------- |  | --------------------- | --- | ------- | -------- | - | -------- | -------------------- |  | -------------- | ---------------- | - |  | ------- | --- | - |  | - | --- | 
|                                 |  |                       |     |         |          |   |          | Changes in Estimates |  |                |                 
|                                 |  |                       |     | Current |          |   | Used for |                      |  | and Effects of |                  |   | 
|                                 |  | Beginning             |     |         | Period   |   |          | Purposes             |  |                | Foreign Currency |   |  | Ending  |    
|                                 |  | Balance               |     |         | Accruals |   |          | Intended             |  |                | Translation      |   |  | Balance |    
|                                 |  |                       |     |         |          |   |          |                      |  |                |                  |   |  |         |    
|                                 |  | (Dollars in millions) |    
|Three months ended July 1, 2005  |  | $                     | 111 |         |          | $ | 14       |                      |  | $              | (8               | ) |  | $       | (7  | ) |  | $ | 110 | 
|Six months ended July 1, 2005    |  |                       | 110 |         |          |   | 31       |                      |  |                | (17              | ) |  |         | (14 | ) |  |   | 110 | 
|Three months ended June 25, 2004 |  |                       | 86  |         |          |   | 14       |                      |  |                | (7               | ) |  |         | (1  | ) |  |   | 92  | 
|Six months ended June 25, 2004   |  |                       | 74  |         |          |   | 33       |                      |  |                | (14              | ) |  |         | (1  | ) |  |   | 92  | 

Stock-based compensation.




|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |      |  |   |    |      | 
|------------------------------------------------------------------------------------------------- | ----------- | --------------------------------------- | -- | ---- | ---------- | - | -- | ------- |  | - | -------- | ---- |  | - | -- | ---- | 
|                                                                                                  |             | Three Months                            |    |      | Six Months |  
|                                                                                                  |             | Ended                                   |    |      | Ended      |  
|                                                                                                  |             |                                         |    |      |            |  
|                                                                                                  |             | July 1,                                 |    |      | June 25,   |   |    | July 1, |  |   | June 25, |     
|                                                                                                  |             | 2005                                    |    |      | 2004       |   |    | 2005    |  |   | 2004     |     
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|                                                                                                  |             | (In millions, except per share amounts) |   
|Net earnings, as reported                                                                         |             | $                                       | 85 |      |            | $ | 76 |         |  | $ | 135      |      |  | $ | 78 |     
|Deduct: Stock-based compensation under SFAS 123 fair value
    method, net of related tax effects |             |                                         | (2 | )    |            |   | (2 | )       |  |   | (4       | )    |  |   | (4 | )   
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|Adjusted net earnings, fair value method                                                          |             | $                                       | 83 |      |            | $ | 74 |         |  | $ | 131      |      |  | $ | 74 |     
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|Basic earnings per share:                                                                         |             |                                         |    |      |            |   |    |         |  |   |          |      |  |   |    |     
|                                                                                                  | As reported |                                         | $  | 0.86 |            |   | $  | 0.77    |  |   | $        | 1.36 |  |   | $  | 0.81 | 
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|                                                                                                  | Pro forma   |                                         | $  | 0.84 |            |   | $  | 0.75    |  |   | $        | 1.32 |  |   | $  | 0.77 | 
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|Diluted earnings per share:                                                                       |             |                                         |    |      |            |   |    |         |  |   |          |      |  |   |    |     
|                                                                                                  | As reported |                                         | $  | 0.83 |            |   | $  | 0.75    |  |   | $        | 1.33 |  |   | $  | 0.78 | 
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     
|                                                                                                  | Pro forma   |                                         | $  | 0.81 |            |   | $  | 0.73    |  |   | $        | 1.29 |  |   | $  | 0.74 | 
|                                                                                                  |             |                                         |    |      |            |   |    |         |  |   |          |     

Recent Accounting Pronouncements


7



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


Comprehensive earnings.


|                                         |  |                       |     |   |            |   |     |         |  |   |          |   |  |   |     |  
|---------------------------------------- |  | --------------------- | --- | - | ---------- | - | --- | ------- |  | - | -------- | - |  | - | --- | -
|                                         |  | Three Months          |     |   | Six Months |  
|                                         |  | Ended                 |     |   | Ended      |  
|                                         |  |                       |     |   |            |  
|                                         |  | July 1,               |     |   | June 25,   |   |     | July 1, |  |   | June 25, |  
|                                         |  | 2005                  |     |   | 2004       |   |     | 2005    |  |   | 2004     |  
|                                         |  |                       |     |   |            |   |     |         |  |   |          |  
|                                         |  | (Dollars in millions) |    
|Net earnings                             |  | $                     | 85  |   |            | $ | 76  |         |  | $ | 135      |   |  | $ | 78  |  
|Foreign currency translation losses, net |  |                       | (35 | ) |            |   | (16 | )       |  |   | (66      | ) |  |   | (38 | )
|Realized net gains on cash flow hedges   |  |                       | 17  |   |            |   |    |         |  |   | 30       |   |  |   | 9   |  
|                                         |  |                       |     |   |            |   |     |         |  |   |          |  
|Comprehensive earnings                   |  | $                     | 67  |   |            | $ | 60  |         |  | $ | 99       |   |  | $ | 49  |  
|                                         |  |                       |     |   |            |   |     |         |  |   |          |  

Recent accounting pronouncements.








|   |                 
|-- | ----------------
|3. | Subsequent Event



8



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|   |                            
|-- | ---------------------------
|4. | Divestiture and Asset Sales







|   |                      
|-- | ---------------------
|5. | Restructuring Charges



|                            |                             |                       |    |    |            |   |   |         |  |   |          |    |  |   |    |    | 
|--------------------------- | --------------------------- | --------------------- | -- | -- | ---------- | - | - | ------- |  | - | -------- | -- |  | - | -- | -- | 
|                            |                             | Three Months          |    |    | Six Months |  
|                            |                             | Ended                 |    |    | Ended      |  
|                            |                             |                       |    |    |            |  
|                            |                             | July 1,               |    |    | June 25,   |   |   | July 1, |  |   | June 25, |   
|                            |                             | 2005                  |    |    | 2004       |   |   | 2005    |  |   | 2004     |   
|                            |                             |                       |    |    |            |   |   |         |  |   |          |   
|                            |                             | (Dollars in millions) |   
|Severance and other charges |                             | $                     | 13 |    |            | $ | 7 |         |  | $ | 21       |    |  | $ | 12 |   
|Asset impairments           |                             |                       | 2  |    |            |   | 1 |         |  |   | 2        |    |  |   | 1  |   
|Curtailment gain            |                             |                       | (2 | )  |            |   |  |         |  |   | (2       | )  |  |   |   |   
|                            |                             |                       |    |    |            |   |   |         |  |   |          |   
|                            | Total restructuring charges |                       | $  | 13 |            |   | $ | 8       |  |   | $        | 21 |  |   | $  | 13 | 
|                            |                             |                       |    |    |            |   |   |         |  |   |          |   



|                        |                             |                       |   |    |            |   |   |         |  |   |          |    |  |   |    |    | 
|----------------------- | --------------------------- | --------------------- | - | -- | ---------- | - | - | ------- |  | - | -------- | -- |  | - | -- | -- | 
|                        |                             | Three Months          |   |    | Six Months |  
|                        |                             | Ended                 |   |    | Ended      |  
|                        |                             |                       |   |    |            |  
|                        |                             | July 1,               |   |    | June 25,   |   |   | July 1, |  |   | June 25, |   
|                        |                             | 2005                  |   |    | 2004       |   |   | 2005    |  |   | 2004     |   
|                        |                             |                       |   |    |            |   |   |         |  |   |          |   
|                        |                             | (Dollars in millions) |  
|Chassis Systems         |                             | $                     | 5 |    |            | $ | 5 |         |  | $ | 9        |    |  | $ | 10 |   
|Occupant Safety Systems |                             |                       | 2 |    |            |   | 1 |         |  |   | 4        |    |  |   | 1  |   
|Automotive Components   |                             |                       | 6 |    |            |   | 2 |         |  |   | 8        |    |  |   | 2  |   
|                        |                             |                       |   |    |            |   |   |         |  |   |          |   
|                        | Total restructuring charges |                       | $ | 13 |            |   | $ | 8       |  |   | $        | 21 |  |   | $  | 13 | 
|                        |                             |                       |   |    |            |   |   |         |  |   |          |   



| |                            
| | ---------------------------
| | Severance and other charges



|                        |                                   |                       |   |    |            |   |   |         |  |   |          |    |  |   |    |    | 
|----------------------- | --------------------------------- | --------------------- | - | -- | ---------- | - | - | ------- |  | - | -------- | -- |  | - | -- | -- | 
|                        |                                   | Three Months          |   |    | Six Months |  
|                        |                                   | Ended                 |   |    | Ended      |  
|                        |                                   |                       |   |    |            |  
|                        |                                   | July 1,               |   |    | June 25,   |   |   | July 1, |  |   | June 25, |   
|                        |                                   | 2005                  |   |    | 2004       |   |   | 2005    |  |   | 2004     |   
|                        |                                   |                       |   |    |            |   |   |         |  |   |          |   
|                        |                                   | (Dollars in millions) |  
|Chassis Systems         |                                   | $                     | 7 |    |            | $ | 5 |         |  | $ | 11       |    |  | $ | 10 |   
|Occupant Safety Systems |                                   |                       |  |    |            |   |  |         |  |   | 2        |    |  |   |   |   
|Automotive Components   |                                   |                       | 6 |    |            |   | 2 |         |  |   | 8        |    |  |   | 2  |   
|                        |                                   |                       |   |    |            |   |   |         |  |   |          |   
|                        | Total severance and other charges |                       | $ | 13 |            |   | $ | 7       |  |   | $        | 21 |  |   | $  | 12 | 
|                        |                                   |                       |   |    |            |   |   |         |  |   |          |   

9



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




| |                  
| | -----------------
| | Asset impairments







| |                 
| | ----------------
| | Curtailment gain





| |                       
| | ----------------------
| | Restructuring reserves



|                                 |  |                       |    |         |          |   |          |            |  |                   |          |  |                |                  |     |   |         |   |    |   |  |   |    | 
|-------------------------------- |  | --------------------- | -- | ------- | -------- | - | -------- | ---------- |  | ----------------- | -------- |  | -------------- | ---------------- | --- | - | ------- | - | -- | - |  | - | -- | 
|                                 |  |                       |    |         |          |   |          |            |  | Reclassifications |          |  |               
|                                 |  |                       |    | Current |          |   | Purchase |            |  | Used for          |          |  | and Effects of |                  |     |  
|                                 |  | Beginning             |    |         | Period   |   |          | Price      |  |                   | Purposes |  |                | Foreign Currency |     |   | Ending  |  
|                                 |  | Balance               |    |         | Accruals |   |          | Allocation |  |                   | Intended |  |                | Translation      |     |   | Balance |  
|                                 |  |                       |    |         |          |   |          |            |  |                   |          |  |                |                  |     |   |         |  
|                                 |  | (Dollars in millions) |   
|Three months ended July 1, 2005  |  | $                     | 41 |         |          | $ | 13       |            |  | $                 |         |  |                | $                | (16 | ) |         | $ | (2 | ) |  | $ | 36 | 
|Six months ended July 1, 2005    |  |                       | 49 |         |          |   | 21       |            |  |                   |         |  |                |                  | (28 | ) |         |   | (6 | ) |  |   | 36 | 
|Three months ended June 25, 2004 |  |                       | 59 |         |          |   | 8        |            |  |                   |         |  |                |                  | (13 | ) |         |   |   |   |  |   | 54 | 
|Six months ended June 25, 2004   |  |                       | 79 |         |          |   | 13       |            |  |                   | 2        |  |                |                  | (40 | ) |         |   |   |   |  |   | 54 | 





|   |            
|-- | -----------
|6. | Inventories



|                                      |                   |                       |     |     |              |   |     |     | 
|------------------------------------- | ----------------- | --------------------- | --- | --- | ------------ | - | --- | --- | 
|                                      |                   | As of                 |    
|                                      |                   |                       |    
|                                      |                   | July 1,               |     |     | December 31, |  
|                                      |                   | 2005                  |     |     | 2004         |  
|                                      |                   |                       |     |     |              |  
|                                      |                   | (Dollars in millions) |    
|Finished products and work in process |                   | $                     | 337 |     |              | $ | 373 |    
|Raw materials and supplies            |                   |                       | 290 |     |              |   | 311 |    
|                                      |                   |                       |     |     |              |  
|                                      | Total inventories |                       | $   | 627 |              |   | $   | 684 | 
|                                      |                   |                       |     |     |              |  

10



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|   |                               
|-- | ------------------------------
|7. | Goodwill and Intangible Assets



| |         
| | --------
| | Goodwill





| |                  
| | -----------------
| | Intangible assets



|                                    |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |     | 
|----------------------------------- | ---------------------- | --------------------- | --- | --- | ----------------- | - | --- | -------- | - | ----- | -------- | --- |  | ------------ | --- | --- | -------- | - | --- | --- | - | - | --- | --- | 
|                                    |                        | As of                 |     |     | As of             |  
|                                    |                        | July 1, 2005          |     |     | December 31, 2004 |  
|                                    |                        |                       |     |     |                   |  
|                                    |                        | Gross                 |     |     |                   |   | Net |          |   | Gross |          |     |  |              | Net |    
|                                    |                        | Carrying              |     |     | Accumulated       |   |     | Carrying |   |       | Carrying |     |  | Accumulated  |     |     | Carrying |  
|                                    |                        | Amount                |     |     | Amortization      |   |     | Amount   |   |       | Amount   |     |  | Amortization |     |     | Amount   |  
|                                    |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |  
|                                    |                        | (Dollars in millions) |    
|Definite-lived intangible assets:   |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |    
|                                    | Customer relationships |                       | $   | 452 |                   |   | $   | (52      | ) |       | $        | 400 |  |              | $   | 452 |          |   | $   | (42 | ) |   | $   | 410 | 
|                                    | Developed technology   |                       |     | 80  |                   |   |     | (23      | ) |       |          | 57  |  |              |     | 81  |          |   |     | (18 | ) |   |     | 63  | 
|                                    |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |  
|                                    | Total                  |                       |     | 532 |                   |   |     | (75      | ) |       |          | 457 |  |              |     | 533 |          |   |     | (60 | ) |   |     | 473 | 
|Indefinite-lived intangible assets: |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |   |     |     |   |   |     |    
|                                    | Trademarks             |                       |     | 292 |                   |   |     |         |   |       |          | 292 |  |              |     | 292 |          |   |     |    |   |   |     | 292 | 
|                                    |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |  
|Total                               |                        | $                     | 824 |     |                   | $ | (75 | )        |   | $     | 749      |     |  | $            | 825 |     |          | $ | (60 | )   |   | $ | 765 |    
|                                    |                        |                       |     |     |                   |   |     |          |   |       |          |     |  |              |     |     |          |  





|   |                             
|-- | ----------------------------
|8. | Other (Income) Expense  Net



|                                         |                              |                       |    |   |            |   |    |         |   |   |          |    |  |   |     |     |  
|---------------------------------------- | ---------------------------- | --------------------- | -- | - | ---------- | - | -- | ------- | - | - | -------- | -- |  | - | --- | --- | -
|                                         |                              | Three Months          |    |   | Six Months |  
|                                         |                              | Ended                 |    |   | Ended      |  
|                                         |                              |                       |    |   |            |  
|                                         |                              | July 1,               |    |   | June 25,   |   |    | July 1, |   |   | June 25, |   
|                                         |                              | 2005                  |    |   | 2004       |   |    | 2005    |   |   | 2004     |   
|                                         |                              |                       |    |   |            |   |    |         |   |   |          |   
|                                         |                              | (Dollars in millions) |   
|Minority interest                        |                              | $                     | 2  |   |            | $ | 4  |         |   | $ | 4        |    |  | $ | 7   |    
|Earnings of affiliates                   |                              |                       | (5 | ) |            |   | (4 | )       |   |   | (10      | )  |  |   | (8  | )  
|Foreign currency exchange (gains) losses |                              |                       | 14 |   |            |   | (3 | )       |   |   | 19       |    |  |   |    |    
|Provision for bad debts                  |                              |                       | 2  |   |            |   |   |         |   |   | 15       |    |  |   |    |    
|Miscellaneous other income               |                              |                       | (4 | ) |            |   | (9 | )       |   |   | (16      | )  |  |   | (15 | )  
|                                         |                              |                       |    |   |            |   |    |         |   |   |          |   
|                                         | Other (income) expense  net |                       | $  | 9 |            |   | $  | (12     | ) |   | $        | 12 |  |   | $   | (16 | )
|                                         |                              |                       |    |   |            |   |    |         |   |   |          |   



11



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|   |                                   
|-- | ----------------------------------
|9. | Accounts Receivable Securitization









 


12



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






|    |             
|--- | ------------
|10. | Income Taxes







13



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|    |                                                                            
|--- | ---------------------------------------------------------------------------
|11. | Pension Plans and Post-Retirement Benefits Other Than
    Pensions (OPEB)



| |              
| | -------------
| | Pension Plans



|                                               |  |                       |     |         |               |   |     |       |         |   |      |   |  |      |     |   |       |   |     |   |  |   |    |  
|---------------------------------------------- |  | --------------------- | --- | ------- | ------------- | - | --- | ----- | ------- | - | ---- | - |  | ---- | --- | - | ----- | - | --- | - |  | - | -- | -
|                                               |  | Three Months Ended    |    
|                                               |  |                       |    
|                                               |  | July 1, 2005          |     |         | June 25, 2004 |  
|                                               |  |                       |     |         |               |  
|                                               |  |                       |     | Rest of |               |   |     |       | Rest of |  
|                                               |  | U.S.                  |     |         | U.K.          |   |     | World |         |   | U.S. |   |  | U.K. |     |   | World |  
|                                               |  |                       |     |         |               |   |     |       |         |   |      |   |  |      |     |   |       |  
|                                               |  | (Dollars in millions) |    
|Defined benefit plans                          |  |                       |     |         |               |   |     |       |         |   |      |   |  |      |     |   |       |   |     |   |  |   |    |  
|Service cost                                   |  | $                     | 7   |         |               | $ | 9   |       |         | $ | 5    |   |  | $    | 8   |   |       | $ | 8   |   |  | $ | 5  |  
|Interest cost on projected benefit obligations |  |                       | 17  |         |               |   | 64  |       |         |   | 8    |   |  |      | 17  |   |       |   | 54  |   |  |   | 7  |  
|Expected return on plan assets                 |  |                       | (14 | )       |               |   | (87 | )     |         |   | (3   | ) |  |      | (13 | ) |       |   | (74 | ) |  |   | (3 | )
|                                               |  |                       |     |         |               |   |     |       |         |   |      |   |  |      |     |   |       |  
|Net pension cost (income)                      |  | $                     | 10  |         |               | $ | (14 | )     |         | $ | 10   |   |  | $    | 12  |   |       | $ | (12 | ) |  | $ | 9  |  
|                                               |  |                       |     |         |               |   |     |       |         |   |      |   |  |      |     |   |       |  

|                                               |  |                       |     |         |               |   |      |       |         |   |      |   |  |      |     |   |       |   |      |   |  |   |    |  
|---------------------------------------------- |  | --------------------- | --- | ------- | ------------- | - | ---- | ----- | ------- | - | ---- | - |  | ---- | --- | - | ----- | - | ---- | - |  | - | -- | -
|                                               |  | Six Months Ended      |    
|                                               |  |                       |    
|                                               |  | July 1, 2005          |     |         | June 25, 2004 |  
|                                               |  |                       |     |         |               |  
|                                               |  |                       |     | Rest of |               |   |      |       | Rest of |  
|                                               |  | U.S.                  |     |         | U.K.          |   |      | World |         |   | U.S. |   |  | U.K. |     |   | World |  
|                                               |  |                       |     |         |               |   |      |       |         |   |      |   |  |      |     |   |       |  
|                                               |  | (Dollars in millions) |    
|Defined benefit plans                          |  |                       |     |         |               |   |      |       |         |   |      |   |  |      |     |   |       |   |      |   |  |   |    |  
|Service cost                                   |  | $                     | 14  |         |               | $ | 18   |       |         | $ | 10   |   |  | $    | 16  |   |       | $ | 16   |   |  | $ | 10 |  
|Interest cost on projected benefit obligations |  |                       | 34  |         |               |   | 130  |       |         |   | 16   |   |  |      | 34  |   |       |   | 108  |   |  |   | 14 |  
|Expected return on plan assets                 |  |                       | (28 | )       |               |   | (176 | )     |         |   | (6   | ) |  |      | (26 | ) |       |   | (149 | ) |  |   | (6 | )
|                                               |  |                       |     |         |               |   |      |       |         |   |      |   |  |      |     |   |       |  
|Net pension cost (income)                      |  | $                     | 20  |         |               | $ | (28  | )     |         | $ | 20   |   |  | $    | 24  |   |       | $ | (25  | ) |  | $ | 18 |  
|                                               |  |                       |     |         |               |   |      |       |         |   |      |   |  |      |     |   |       |  



| |                                                          
| | ---------------------------------------------------------
| | Post-Retirement Benefits Other Than Pensions
    (OPEB)



|                                    |  |                       |    |   |            |   |    |         |  |   |          |   |  |   |    | 
|----------------------------------- |  | --------------------- | -- | - | ---------- | - | -- | ------- |  | - | -------- | - |  | - | -- | 
|                                    |  | Three Months          |    |   | Six Months |  
|                                    |  | Ended                 |    |   | Ended      |  
|                                    |  |                       |    |   |            |  
|                                    |  | July 1,               |    |   | June 25,   |   |    | July 1, |  |   | June 25, |  
|                                    |  | 2005                  |    |   | 2004       |   |    | 2005    |  |   | 2004     |  
|                                    |  |                       |    |   |            |   |    |         |  |   |          |  
|                                    |  | (Dollars in millions) |   
|Service cost                        |  | $                     | 2  |   |            | $ | 1  |         |  | $ | 4        |   |  | $ | 3  | 
|Interest cost                       |  |                       | 12 |   |            |   | 16 |         |  |   | 24       |   |  |   | 32 | 
|Settlement gain                     |  |                       | (3 | ) |            |   |   |         |  |   | (3       | ) |  |   |   | 
|Amortization of unrecognized income |  |                       | (2 | ) |            |   |   |         |  |   | (4       | ) |  |   |   | 
|                                    |  |                       |    |   |            |   |    |         |  |   |          |  
|Net post-retirement benefit cost    |  | $                     | 9  |   |            | $ | 17 |         |  | $ | 21       |   |  | $ | 35 | 
|                                    |  |                       |    |   |            |   |    |         |  |   |          |  



14



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






|    |     
|--- | ----
|12. | Debt



|                                             |                                        |                       |       |       |              |   |       |       | 
|-------------------------------------------- | -------------------------------------- | --------------------- | ----- | ----- | ------------ | - | ----- | ----- | 
|                                             |                                        | As of                 |      
|                                             |                                        |                       |      
|                                             |                                        | July 1,               |       |       | December 31, |  
|                                             |                                        | 2005                  |       |       | 2004         |  
|                                             |                                        |                       |       |       |              |  
|                                             |                                        | (Dollars in millions) |      
|Short-term debt                              |                                        | $                     | 37    |       |              | $ | 40    |      
|                                             |                                        |                       |       |       |              |  
|Long-term debt:                              |                                        |                       |       |       |              |   |       |      
|Senior Notes                                 |                                        | $                     | 981   |       |              | $ | 1,063 |      
|Senior Subordinated Notes                    |                                        |                       | 293   |       |              |   | 306   |      
|Term Loan facilities                         |                                        |                       | 1,296 |       |              |   | 1,512 |      
|Revolving credit facility                    |                                        |                       |      |       |              |   |      |      
|Lucas Industries Limited debentures due 2020 |                                        |                       | 187   |       |              |   | 202   |      
|Capitalized leases                           |                                        |                       | 33    |       |              |   | 39    |      
|Other borrowings                             |                                        |                       | 18    |       |              |   | 19    |      
|                                             |                                        |                       |       |       |              |  
|                                             | Total long-term debt                   |                       |       | 2,808 |              |   |       | 3,141 | 
|Less current portion                         |                                        |                       | 18    |       |              |   | 19    |      
|                                             |                                        |                       |       |       |              |  
|                                             | Long-term debt, net of current portion |                       | $     | 2,790 |              |   | $     | 3,122 | 
|                                             |                                        |                       |       |       |              |  



| |                                           
| | ------------------------------------------
| | Senior Notes and Senior Subordinated Notes

3 8 1 8  3 4 


 1 8 1 8




15



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##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




| |                  
| | -----------------
| | Credit Facilities

Senior Secured Credit Facilities.


1 2






January 2004 Refinancing. 


16



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


April 2004 Refinancing.


November 2004 Refinancing.




|    |              
|--- | -------------
|13. | Capital Stock

Repurchase of Northrop Shares.


Issuance and Registration of Shares.




 1 8




Initial Public Offering.


17



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)






|    |                         
|--- | ------------------------
|14. | Stock-based Compensation







|    |                           
|--- | --------------------------
|15. | Related Party Transactions

Blackstone.




Northrop.






18



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)




|    |                   
|--- | ------------------
|16. | Operating Segments



|                               |                         |                              |       |       |            |   |       |         |     |   |          |       |     |   |       |       |     | 
|------------------------------ | ----------------------- | ---------------------------- | ----- | ----- | ---------- | - | ----- | ------- | --- | - | -------- | ----- | --- | - | ----- | ----- | --- | 
|                               |                         | Three Months                 |       |       | Six Months |  
|                               |                         | Ended                        |       |       | Ended      |  
|                               |                         |                              |       |       |            |  
|                               |                         | July 1,                      |       |       | June 25,   |   |       | July 1, |     |   | June 25, |      
|                               |                         | 2005                         |       |       | 2004       |   |       | 2005    |     |   | 2004     |      
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|                               |                         | (Dollars in millions)        |      
|Sales to external customers:   |                         |                              |       |       |            |   |       |         |     |   |          |       |     |   |       |      
|                               | Chassis Systems         |                              | $     | 1,953 |            |   | $     | 1,844   |     |   | $        | 3,800 |     |   | $     | 3,506 |    
|                               | Occupant Safety Systems |                              |       | 958   |            |   |       | 894     |     |   |          | 1,896 |     |   |       | 1,753 |    
|                               | Automotive Components   |                              |       | 454   |            |   |       | 425     |     |   |          | 894   |     |   |       | 827   |    
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|Total sales                    |                         | $                            | 3,365 |       |            | $ | 3,163 |         |     | $ | 6,590    |       |     | $ | 6,086 |      
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|Segment earnings before taxes: |                         |                              |       |       |            |   |       |         |     |   |          |       |     |   |       |      
|                               | Chassis Systems         |                              | $     | 108   |            |   | $     | 99      |     |   | $        | 171   |     |   | $     | 162   |    
|                               | Occupant Safety Systems |                              |       | 95    |            |   |       | 99      |     |   |          | 188   |     |   |       | 183   |    
|                               | Automotive Components   |                              |       | 30    |            |   |       | 28      |     |   |          | 64    |     |   |       | 62    |    
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|Segment earnings before taxes  |                         |                              | 233   |       |            |   | 226   |         |     |   | 423      |       |     |   | 407   |      
|Corporate expense and other    |                         |                              | (35   | )     |            |   | (24   | )       |     |   | (70      | )     |     |   | (52   | )    
|Financing costs                |                         |                              | (55   | )     |            |   | (60   | )       |     |   | (114     | )     |     |   | (123  | )    
|Loss on retirement of debt     |                         |                              | (7    | )     |            |   | (1    | )       |     |   | (7       | )     |     |   | (48   | )    
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|                               |                         | Earnings before income taxes |       | $     | 136        |   |       | $       | 141 |   |          | $     | 232 |   |       | $     | 184 | 
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|Intersegment sales:            |                         |                              |       |       |            |   |       |         |     |   |          |       |     |   |       |      
|                               | Chassis Systems         |                              | $     | 1     |            |   | $     | 1       |     |   | $        | 4     |     |   | $     | 1     |    
|                               | Occupant Safety Systems |                              |       | 24    |            |   |       | 5       |     |   |          | 38    |     |   |       | 9     |    
|                               | Automotive Components   |                              |       | 10    |            |   |       | 13      |     |   |          | 22    |     |   |       | 26    |    
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      
|                               |                         | $                            | 35    |       |            | $ | 19    |         |     | $ | 64       |       |     | $ | 36    |      
|                               |                         |                              |       |       |            |   |       |         |     |   |          |      



|    |              
|--- | -------------
|17. | Contingencies



19



---



##### Table of Contents



TRW Automotive Holdings Corp.


Notes to Consolidated Financial
Statements  (Continued)


















20



---



##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|ITEM 2. | MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL
    CONDITION AND RESULTS OF OPERATIONS



Executive Overview


Our Business.




1 8


Recent Trends.




21



---



##### Table of Contents







Our Debt and Capital Structure.  1 8




22



---



##### Table of Contents



RESULTS OF OPERATIONS






| |                                    
| | -----------------------------------
| | TOTAL COMPANY RESULTS OF OPERATIONS

CONSOLIDATED STATEMENTS OF OPERATIONS


For the Three Months Ended July 1, 2005 and
June 25, 2004


(Unaudited)


|                                         |                              |                       |       |     |               |   |       |     | 
|---------------------------------------- | ---------------------------- | --------------------- | ----- | --- | ------------- | - | ----- | --- | 
|                                         |                              | Three Months Ended    |      
|                                         |                              |                       |      
|                                         |                              | July 1, 2005          |       |     | June 25, 2004 |  
|                                         |                              |                       |       |     |               |  
|                                         |                              | (Dollars in millions) |      
|Sales                                    |                              | $                     | 3,365 |     |               | $ | 3,163 |    
|Cost of sales                            |                              |                       | 2,959 |     |               |   | 2,783 |    
|                                         |                              |                       |       |     |               |  
|                                         | Gross profit                 |                       |       | 406 |               |   |       | 380 | 
|Administrative and selling expenses      |                              |                       | 126   |     |               |   | 132   |    
|Research and development expenses        |                              |                       | 52    |     |               |   | 42    |    
|Amortization of intangible assets        |                              |                       | 8     |     |               |   | 8     |    
|Restructuring charges                    |                              |                       | 13    |     |               |   | 8     |    
|Other (income) expense  net             |                              |                       | 9     |     |               |   | (12   | )  
|                                         |                              |                       |       |     |               |  
|                                         | Operating income             |                       |       | 198 |               |   |       | 202 | 
|Interest expense  net                   |                              |                       | 54    |     |               |   | 60    |    
|Loss on retirement of debt               |                              |                       | 7     |     |               |   | 1     |    
|Accounts receivable securitization costs |                              |                       | 1     |     |               |   |      |    
|                                         |                              |                       |       |     |               |  
|                                         | Earnings before income taxes |                       |       | 136 |               |   |       | 141 | 
|Income tax expense                       |                              |                       | 51    |     |               |   | 65    |    
|                                         |                              |                       |       |     |               |  
|                                         | Net earnings                 |                       | $     | 85  |               |   | $     | 76  | 
|                                         |                              |                       |       |     |               |  



| |                                                                                 
| | --------------------------------------------------------------------------------
| | Three Months Ended July 1, 2005 Compared to Three
    Months Ended June 25, 2004

Sales


Gross profit


Administrative and selling expenses


23



---



##### Table of Contents



Research and development expenses


Amortization of intangible assets


Restructuring charges


Other (income) expense  net


Interest expense  net


Loss on retirement of debt  1 8 1 8




Accounts receivable securitization costs


Income tax expense


24



---



##### Table of Contents



CONSOLIDATED STATEMENTS OF OPERATIONS


For the Six Months Ended July 1, 2005 and June 25,
2004


(Unaudited)


|                                         |                              |                       |       |     |               |   |       |     | 
|---------------------------------------- | ---------------------------- | --------------------- | ----- | --- | ------------- | - | ----- | --- | 
|                                         |                              | Six Months Ended      |      
|                                         |                              |                       |      
|                                         |                              | July 1, 2005          |       |     | June 25, 2004 |  
|                                         |                              |                       |       |     |               |  
|                                         |                              | (Dollars in millions) |      
|Sales                                    |                              | $                     | 6,590 |     |               | $ | 6,086 |    
|Cost of sales                            |                              |                       | 5,820 |     |               |   | 5,381 |    
|                                         |                              |                       |       |     |               |  
|                                         | Gross profit                 |                       |       | 770 |               |   |       | 705 | 
|Administrative and selling expenses      |                              |                       | 262   |     |               |   | 257   |    
|Research and development expenses        |                              |                       | 106   |     |               |   | 79    |    
|Amortization of intangible assets        |                              |                       | 16    |     |               |   | 17    |    
|Restructuring charges                    |                              |                       | 21    |     |               |   | 13    |    
|Other (income) expense  net             |                              |                       | 12    |     |               |   | (16   | )  
|                                         |                              |                       |       |     |               |  
|                                         | Operating income             |                       |       | 353 |               |   |       | 355 | 
|Interest expense  net                   |                              |                       | 112   |     |               |   | 122   |    
|Loss on retirement of debt               |                              |                       | 7     |     |               |   | 48    |    
|Accounts receivable securitization costs |                              |                       | 2     |     |               |   | 1     |    
|                                         |                              |                       |       |     |               |  
|                                         | Earnings before income taxes |                       |       | 232 |               |   |       | 184 | 
|Income tax expense                       |                              |                       | 97    |     |               |   | 106   |    
|                                         |                              |                       |       |     |               |  
|                                         | Net earnings                 |                       | $     | 135 |               |   | $     | 78  | 
|                                         |                              |                       |       |     |               |  



| |                                                                             
| | ----------------------------------------------------------------------------
| | Six Months Ended July 1, 2005 Compared to Six Months
    Ended June 25, 2004

Sales


Gross profit


Administrative and selling expenses


Research and development expenses


25



---



##### Table of Contents



Amortization of intangible assets


Restructuring charges


Other (income) expense  net


Interest expense  net


Loss on retirement of debt  1 8 1 8






| |   |                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | $1 million related to the write-off of unamortized debt
    issuance costs in conjunction with the repayment of a portion of
    the then-existing term loan facilities in the second quarter of
    2004;                                    
|
| |  | $11 million write-off of unamortized debt issuance costs in
    conjunction with our January 2004 refinancing of the
    then-existing term loan facilities; and                                                                              
|
| |  | $30 million of redemption fees and $6 million
    write-off of unamortized debt issuance costs associated with our
    dollar and euro-denominated senior notes and senior-subordinated
    notes which were partially redeemed in March 2004.

Accounts receivable securitization costs


Income tax expense


26



---



##### Table of Contents





| |                              
| | -----------------------------
| | SEGMENT RESULTS OF OPERATIONS



|                             |                         |                               |       |     |            |   |       |         |       |   |          |     |       |   |       |     |       | 
|---------------------------- | ----------------------- | ----------------------------- | ----- | --- | ---------- | - | ----- | ------- | ----- | - | -------- | --- | ----- | - | ----- | --- | ----- | 
|                             |                         | Three Months                  |       |     | Six Months |  
|                             |                         | Ended                         |       |     | Ended      |  
|                             |                         |                               |       |     |            |  
|                             |                         | July 1,                       |       |     | June 25,   |   |       | July 1, |       |   | June 25, |    
|                             |                         | 2005                          |       |     | 2004       |   |       | 2005    |       |   | 2004     |    
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    
|                             |                         | (Dollars in millions)         |      
|Sales to external customers: |                         |                               |       |     |            |   |       |         |       |   |          |     |       |   |       |    
|Chassis Systems              |                         | $                             | 1,953 |     |            | $ | 1,844 |         |       | $ | 3,800    |     |       | $ | 3,506 |    
|Occupant Safety Systems      |                         |                               | 958   |     |            |   | 894   |         |       |   | 1,896    |     |       |   | 1,753 |    
|Automotive Components        |                         |                               | 454   |     |            |   | 425   |         |       |   | 894      |     |       |   | 827   |    
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    
|                             |                         | Total sales                   |       | $   | 3,365      |   |       | $       | 3,163 |   |          | $   | 6,590 |   |       | $   | 6,086 | 
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    
|Earnings before taxes        |                         |                               |       |     |            |   |       |         |       |   |          |     |       |   |       |    
|                             | Chassis Systems         |                               | $     | 108 |            |   | $     | 99      |       |   | $        | 171 |       |   | $     | 162 |      
|                             | Occupant Safety Systems |                               |       | 95  |            |   |       | 99      |       |   |          | 188 |       |   |       | 183 |      
|                             | Automotive Components   |                               |       | 30  |            |   |       | 28      |       |   |          | 64  |       |   |       | 62  |      
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    
|                             |                         | Segment earnings before taxes |       |     | 233        |   |       |         | 226   |   |          |     | 423   |   |       |     | 407   | 
|Corporate expense and other  |                         |                               | (35   | )   |            |   | (24   | )       |       |   | (70      | )   |       |   | (52   | )  
|Financing costs              |                         |                               | (55   | )   |            |   | (60   | )       |       |   | (114     | )   |       |   | (123  | )  
|Loss on retirement of debt   |                         |                               | (7    | )   |            |   | (1    | )       |       |   | (7       | )   |       |   | (48   | )  
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    
|                             |                         | Earnings before taxes         |       | $   | 136        |   |       | $       | 141   |   |          | $   | 232   |   |       | $   | 184   | 
|                             |                         |                               |       |     |            |   |       |         |       |   |          |    

CHASSIS SYSTEMS




| |                                                                                 
| | --------------------------------------------------------------------------------
| | Three Months Ended July 1, 2005 Compared to Three
    Months Ended June 25, 2004

|                      |  |                       |       |   |          |   |       |  
|--------------------- |  | --------------------- | ----- | - | -------- | - | ----- | -
|                      |  | Three Months          |      
|                      |  | Ended                 |      
|                      |  |                       |      
|                      |  | July 1,               |       |   | June 25, |  
|                      |  | 2005                  |       |   | 2004     |  
|                      |  |                       |       |   |          |  
|                      |  | (Dollars in millions) |      
|Sales                 |  | $                     | 1,953 |   |          | $ | 1,844 |  
|Earnings before taxes |  |                       | 108   |   |          |   | 99    |  
|Restructuring charges |  |                       | (5    | ) |          |   | (5    | )

Sales


Earnings before taxes


27



---



##### Table of Contents





| |                                                                             
| | ----------------------------------------------------------------------------
| | Six Months Ended July 1, 2005 Compared to Six Months
    Ended June 25, 2004

|                      |  |                       |       |   |          |   |       |  
|--------------------- |  | --------------------- | ----- | - | -------- | - | ----- | -
|                      |  | Six Months            |      
|                      |  | Ended                 |      
|                      |  |                       |      
|                      |  | July 1,               |       |   | June 25, |  
|                      |  | 2005                  |       |   | 2004     |  
|                      |  |                       |       |   |          |  
|                      |  | (Dollars in millions) |      
|Sales                 |  | $                     | 3,800 |   |          | $ | 3,506 |  
|Earnings before taxes |  |                       | 171   |   |          |   | 162   |  
|Restructuring charges |  |                       | (9    | ) |          |   | (10   | )

Sales


Earnings before taxes


OCCUPANT SAFETY SYSTEMS




| |                                                                                 
| | --------------------------------------------------------------------------------
| | Three Months Ended July 1, 2005 Compared to Three
    Months Ended June 25, 2004

|                      |  |                       |     |   |          |   |     |  
|--------------------- |  | --------------------- | --- | - | -------- | - | --- | -
|                      |  | Three Months          |    
|                      |  | Ended                 |    
|                      |  |                       |    
|                      |  | July 1,               |     |   | June 25, |  
|                      |  | 2005                  |     |   | 2004     |  
|                      |  |                       |     |   |          |  
|                      |  | (Dollars in millions) |    
|Sales                 |  | $                     | 958 |   |          | $ | 894 |  
|Earnings before taxes |  |                       | 95  |   |          |   | 99  |  
|Restructuring charges |  |                       | (2  | ) |          |   | (1  | )

Sales


Earnings before taxes


28



---



##### Table of Contents





| |                                                                             
| | ----------------------------------------------------------------------------
| | Six Months Ended July 1, 2005 Compared to Six Months
    Ended June 25, 2004

|                      |  |                       |       |   |          |   |       |  
|--------------------- |  | --------------------- | ----- | - | -------- | - | ----- | -
|                      |  | Six Months            |      
|                      |  | Ended                 |      
|                      |  |                       |      
|                      |  | July 1,               |       |   | June 25, |  
|                      |  | 2005                  |       |   | 2004     |  
|                      |  |                       |       |   |          |  
|                      |  | (Dollars in millions) |      
|Sales                 |  | $                     | 1,896 |   |          | $ | 1,753 |  
|Earnings before taxes |  |                       | 188   |   |          |   | 183   |  
|Restructuring charges |  |                       | (4    | ) |          |   | (1    | )

Sales


Earnings before taxes


AUTOMOTIVE COMPONENTS




| |                                                                                 
| | --------------------------------------------------------------------------------
| | Three Months Ended July 1, 2005 Compared to Three
    Months Ended June 25, 2004

|                      |  |                       |     |   |          |   |     |  
|--------------------- |  | --------------------- | --- | - | -------- | - | --- | -
|                      |  | Three Months          |    
|                      |  | Ended                 |    
|                      |  |                       |    
|                      |  | July 1,               |     |   | June 25, |  
|                      |  | 2005                  |     |   | 2004     |  
|                      |  |                       |     |   |          |  
|                      |  | (Dollars in millions) |    
|Sales                 |  | $                     | 454 |   |          | $ | 425 |  
|Earnings before taxes |  |                       | 30  |   |          |   | 28  |  
|Restructuring charges |  |                       | (6  | ) |          |   | (2  | )

Sales


Earnings before taxes


29



---



##### Table of Contents





| |                                                                             
| | ----------------------------------------------------------------------------
| | Six Months Ended July 1, 2005 Compared to Six Months
    Ended June 25, 2004

|                      |  |                       |     |   |          |   |     |  
|--------------------- |  | --------------------- | --- | - | -------- | - | --- | -
|                      |  | Six Months            |    
|                      |  | Ended                 |    
|                      |  |                       |    
|                      |  | July 1,               |     |   | June 25, |  
|                      |  | 2005                  |     |   | 2004     |  
|                      |  |                       |     |   |          |  
|                      |  | (Dollars in millions) |    
|Sales                 |  | $                     | 894 |   |          | $ | 827 |  
|Earnings before taxes |  |                       | 64  |   |          |   | 62  |  
|Restructuring charges |  |                       | (8  | ) |          |   | (2  | )

Sales


Earnings before taxes


LIQUIDITY AND CAPITAL RESOURCES




| |           
| | ----------
| | Cash Flows

Operating activities.


Investing activities.




Financing activities.


 1 8


30



---



##### Table of Contents



Debt and Commitments


Sources of Liquidity.








 1 8 1 8




Funding Our Requirements.


31



---



##### Table of Contents



Senior Secured Credit Facilities.




Debt Restrictions.




Interest Rate Swap Agreements.


Contractual Obligations and Commitments




 1 8


32



---



##### Table of Contents





Off-Balance Sheet Arrangements














33



---



##### Table of Contents





Other Receivables Facilities


 


Research, Development and Engineering




|                                  |       |                       |     |     |            |   |     |         |  |   |          |     |  |   |     |     | 
|--------------------------------- | ----- | --------------------- | --- | --- | ---------- | - | --- | ------- |  | - | -------- | --- |  | - | --- | --- | 
|                                  |       | Three Months          |     |     | Six Months |  
|                                  |       | Ended                 |     |     | Ended      |  
|                                  |       |                       |     |     |            |  
|                                  |       | July 1,               |     |     | June 25,   |   |     | July 1, |  |   | June 25, |    
|                                  |       | 2005                  |     |     | 2004       |   |     | 2005    |  |   | 2004     |    
|                                  |       |                       |     |     |            |   |     |         |  |   |          |    
|                                  |       | (Dollars in millions) |    
|Research and development expenses |       | $                     | 52  |     |            | $ | 42  |         |  | $ | 106      |     |  | $ | 79  |    
|Engineering costs                 |       |                       | 121 |     |            |   | 118 |         |  |   | 255      |     |  |   | 236 |    
|                                  |       |                       |     |     |            |   |     |         |  |   |          |    
|                                  | Total |                       | $   | 173 |            |   | $   | 160     |  |   | $        | 361 |  |   | $   | 315 | 
|                                  |       |                       |     |     |            |   |     |         |  |   |          |    



Environmental Matters






34



---



##### Table of Contents









Contingencies










35



---



##### Table of Contents









Recent Accounting Pronouncements




Outlook










36



---



##### Table of Contents





Forward-Looking Statements













|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET
    RISKS



Foreign Currency Exchange Rate Risk.


37



---



##### Table of Contents





Interest Rate Risk.


Sensitivity Analysis.


|                                 |                                |                       |   |     |                |  |   |               |   |  |  |            | 
|-------------------------------- | ------------------------------ | --------------------- | - | --- | -------------- |  | - | ------------- | - |  |  | ---------- | 
|                                 |                                | Assuming a 10%        |   |     | Assuming a 10% |  |   | Favorable     |  
|                                 |                                | increase in           |   |     | decrease in    |  |   | (unfavorable) |  
|                                 |                                | prices/rates          |   |     | prices/rates   |  |   | change in     |  
|                                 |                                |                       |   |     |                |  |   |               |  
|                                 |                                | (Dollars in millions) |  
|Market Risk                      |                                |                       |   |     |                |  |   |               |   |  |  |           
|Foreign Currency Rate Sensitive: |                                |                       |   |     |                |  |   |               |   |  |  |           
|Forwards*                        |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Long US$                     |                       | $ | (55 | )              |  | $ | 59            |   |  |  | Fair value | 
|                                 | - Short US$                    |                       | $ | 29  |                |  | $ | (31           | ) |  |  | Fair value | 
|Debt                             |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Foreign currency denominated |                       | $ | (61 | )              |  | $ | 61            |   |  |  | Fair value | 
|Interest Rate Sensitive:         |                                |                       |   |     |                |  |   |               |   |  |  |           
|Debt                             |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Fixed rate                   |                       | $ | 25  |                |  | $ | (26           | ) |  |  | Fair value | 
|                                 | - Variable rate                |                       | $ | (6  | )              |  | $ | 6             |   |  |  | Cash flow  | 
|Swaps                            |                                |                       |   |     |                |  |   |               |   |  |  |           
|                                 | - Pay variable/ receive fixed  |                       | $ | (1  | )              |  | $ | 1             |   |  |  | Fair value | 






|  |                                                                                                                                                                                                                                                                                                                                                                                                          
|- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|* | Includes only the risk related to the derivative instruments
    that serve as hedges and does not include the related underlying
    hedged item or any other operating transactions. The analyses
    also do not factor in a potential change in the level of
    variable rate borrowings or derivative instruments outstanding
    that could take place if these hypothetical conditions prevailed.






|        |                        
|------- | -----------------------
|ITEM 4. | CONTROLS AND PROCEDURES





38



---



##### Table of Contents






PART II







|        |                  
|------- | -----------------
|ITEM 1. | LEGAL PROCEEDINGS








|        |                                                                
|------- | ---------------------------------------------------------------
|ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF
    PROCEEDS



|    |                   
|--- | ------------------
|(c) | Issuer repurchases








|        |                                                    
|------- | ---------------------------------------------------
|ITEM 4. | SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS



| |     |                                                                                                                                                                                     
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) | The Company held its 2005 Annual Meeting of Stockholders on
    May 13, 2005. At the meeting, the following matters were
    submitted to a vote of the stockholders of the Company:



| |     |                                                                                   
| | --- | ----------------------------------------------------------------------------------
| | (1) | The election of three directors to three-year terms on the Board
    of Directors.



| |                                                                                      
| | -------------------------------------------------------------------------------------
| | Class I directors for a term expiring at the 2008 annual
    meeting of stockholders:

|                     |  |     |            |  |          |  |           | 
|-------------------- |  | --- | ---------- |  | -------- |  | --------- | 
|                     |  | For |            |  | Withhold | 
|                     |  |     |            |  |          | 
|Joshua H. Astrof     |  |     | 83,169,782 |  |          |  | 6,566,554 | 
|Francois J. Castaing |  |     | 89,102,154 |  |          |  | 634,182   | 
|Paul H. ONeill      |  |     | 85,921,297 |  |          |  | 3,815,039 | 



| |     |                                                                                                                                                                       
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (2) | The ratification of Ernst & Young LLP as independent
    public accounts to audit the consolidated financial statements
    of TRW Automotive Holdings Corp. for 2005:

|           |  |         |  |        
|---------- |  | ------- |  | -------
|For        |  | Against |  | Abstain
|           |  |         |  |        
|89,320,815 |  | 409,328 |  | 6,193  






|        |                  
|------- | -----------------
|ITEM 5. | OTHER INFORMATION

Amendment to Employment Agreements.


39



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##### Table of Contents








|        |         
|------- | --------
|ITEM 6. | EXHIBITS

|        |       |              |  |                                                                                                                                                            
|------- | ----- | ------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |             
|Number  |       | Exhibit Name
|        |       |             
|        | 10.1  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of Peter J. Lake                                                                     
|       
|        | 10.2  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of David L. Bialosky                                                                 
|       
|        | 10.3  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of Joseph S. Cantie                                                                  
|       
|        | 10.4  | *            |  | Second Amendment dated as of July 29, 2005 to Employment
    Agreement of Neil E. Marchuk                                                                  
|       
|        | 31(a) | *            |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    § 302 of the Sarbanes-Oxley Act of 2002.
|       
|        | 31(b) | *            |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    § 302 of the Sarbanes-Oxley Act of 2002.
|       
|        | 32(a) | *            |  | Certification Pursuant to 18 U.S.C. § 1350, As
    Adopted Pursuant to § 906 of the Sarbanes-Oxley Act of
    2002.                                        
|       
|        | 32(b) | *            |  | Certification Pursuant to 18 U.S.C. § 1350, As
    Adopted Pursuant to § 906 of the Sarbanes-Oxley Act of
    2002.                                        






|  |             
|- | ------------
|* | Filed herein

40



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##### Table of Contents



Signature






| |                              
| | -----------------------------
| | TRW Automotive Holdings Corp.
| | (Registrant)                 



| |     |                     
| | --- | --------------------
| | By: | /s/ JOSEPH S. CANTIE

| |                                 
| | --------------------------------
| |                                 
| | Joseph S. Cantie                
| | Executive Vice President and    
| | Chief Financial Officer         
| | (On behalf of the Registrant and
| | as Principal Financial Officer) 



41



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##### Table of Contents



Exhibit Index


|        |       |              |  |                                                                                                                                                            
|------- | ----- | ------------ |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |             
|Number  |       | Exhibit Name
|        |       |             
|        | 10.1  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of Peter J. Lake                                                                     
|       
|        | 10.2  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of David L. Bialosky                                                                 
|       
|        | 10.3  | *            |  | Third Amendment dated as of July 29, 2005 to Employment
    Agreement of Joseph S. Cantie                                                                  
|       
|        | 10.4  | *            |  | Second Amendment dated as of July 29, 2005 to Employment
    Agreement of Neil E. Marchuk                                                                  
|       
|        | 31(a) | *            |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    § 302 of the Sarbanes-Oxley Act of 2002.
|       
|        | 31(b) | *            |  | Certification Pursuant to Rule 13a-14(a) under the
    Securities Exchange Act of 1934, as adopted pursuant to
    § 302 of the Sarbanes-Oxley Act of 2002.
|       
|        | 32(a) | *            |  | Certification Pursuant to 18 U.S.C. § 1350, As
    Adopted Pursuant to § 906 of the Sarbanes-Oxley Act of
    2002.                                        
|       
|        | 32(b) | *            |  | Certification Pursuant to 18 U.S.C. § 1350, As
    Adopted Pursuant to § 906 of the Sarbanes-Oxley Act of
    2002.                                        






|  |             
|- | ------------
|* | Filed herein

42