Slide 1: FY2024 Third Quarter Earnings Call
FY2024 Third Quarter Earnings Call August 6, 2024 Adient – PUBLIC
Slide 2: Important Information
Important Information Adient has made statements in this document that are forward-looking and, therefore, are subject to risks and uncertainties. All statements in this document other than statements of historical fact are statements that are, or could be, deemed “forward-looking statements” within
Slide 3: Agenda
Agenda > Introduction Michael Heifler VP, Investor Relations and Strategy > Business Update Jerome Dorlack President and CEO > Financial Review Mark Oswald Executive VP and CFO > Q&A FY2024 Third Quarter Earnings Call Adient – PUBLIC August 6, 2024 3
Slide 4: Third quarter results reflect lower volume and FX headwinds
Third quarter results reflect lower volume and FX headwinds > Adient’s Q3 results significantly impacted by the EMEA region which experienced lower Key Q3FY24 volume/ mix and weaker commercial Financial Metrics recoveries Consolidated ~$3.7B > Americas and Asia performed generally Revenue (down 8% y
Slide 5: Regional update
Regional update Navigating challenging macro conditions, lower-than-expected vehicle production volumes and softer EV demand APAC AMER EMEA > Top-notch > Strong execution > Ongoing strategic operational measures to > Reduce third- manage costs and performance party metals capacity > Double-digit bus
Slide 6: Winning the right business and executing successful launches
Winning the right business and executing successful launches New Business Avatr 12 REEV GAC Trumpchi ES9 GAC Sedan Audi Q3 Complete Seat System Complete Seat System Complete Seat System JIT/Trim/Foam Adient’s recent business awards are solidifying our status as the supplier of choice, further enhanc
Slide 7: Creating sustainable value for our shareholders
Creating sustainable value for our shareholders Actions driving shareholder value > Laser focused on operational excellence > Modular assembly in production, more planned for FY25 > Expanding automation, artificial intelligence projects drive business performance > Innovative partnerships to drive c
Slide 8: Financial Review
Financial Review FY2024 Third Quarter Adient – PUBLIC
Slide 9: Q3 FY24 key financials
Q3 FY24 key financials As Reported As Adjusted 1 $ millions, except per share data Q3 FY24 Q3 FY23 Q3 FY24 Q3 FY23 B/(W) Consolidated Revenue $ 3,716 $ 4,055 $ 3,716 $ 4,055 (8)% EBIT $ 94 $ 173 $ 126 $ 195 (35)% Margin 2.5% 4.3% 3.4% 4.8% EBITDA N/A N/A $ 202 $ 276 (27)% Margin 5.4% 6.8% Memo: Equi
Slide 10: Q3 FY24 Revenue: consolidated and unconsolidated sales
Q3 FY24 Revenue: consolidated and unconsolidated sales Regional Performance Consolidated sales (consolidated sales y-o-y growth vs. Q3FY23 by region) 1, 2 Asia ex. China (3)% vs. S&P (2)% $(285) Americas APAC $4,055 $(54) $3,716 (8)% 1% vs. S&P (-)% EMEA vs. S&P 1% (9)% vs. S&P (7)% China 6% vs. S&P
Slide 11: Q3 FY24 Adjusted-EBITDA
Q3 FY24 Adjusted-EBITDA $ in millions Q3FY24 adjusted EBITDA of $202M, $276 $4 $1 down $74M y-o-y $202 > Volume/mix and FX headwinds $(78) $(1) were partially offset by improved 6.8% 5.4% business performance of $5M (~$25M excluding the non- Q3FY23 Americas APAC EMEA CORP Q3FY24 recurring insurance
Slide 12: Q3 FY2024 Cash flow
Q3 FY2024 Cash flow Free Cash Flow Key drivers impacting FY24 FCF: Adjusted EBITDA to Free Cash Flow Q3 YTD (+) Typical month-to-month working capital (in $ millions) 2024 2023 2024 2023 (+) Net customer tooling, driven by non-recurrence Adjusted-EBITDA $ 202 $ 276 $ 645 $ 703 of FY23 headwinds Adju
Slide 13: Debt and capital structure
Debt and capital structure Cash & Debt Profile ($ in millions) 6/30/2024 Net Debt Amount Cash & Cash Equivalents $ 890 June 30 September 30 (in $ millions) 2024 2023 ABL Revolver, incl. FILO due 2027 1 - Term Loan B due 2031 633 Cash $ 890 $ 1,110 7.000% Secured Notes due 2028 500 Total Debt 2,537 2
Slide 14: FY24 Outlook – key financial metrics
FY24 Outlook – key financial metrics Consolidated sales ~$14.6B > Sales forecast at $14.6B, revised to reflect latest Prior ~$14.8B - $14.9B production and FX rates Adj.-EBITDA ~$870M Prior ~$900M - $920M > Adj.-EBITDA at ~$870M, reflects lower volume Equity income ~$80M > Equity income forecast at
Slide 15: Appendix and financial reconciliations
Appendix and financial reconciliations FY2024 Third Quarter Adient – PUBLIC
Slide 16: Q3 FY24 Adjusted-EBITDA: Americas
Q3 FY24 Adjusted-EBITDA: Americas Q3FY24 adjusted EBITDA of $99M, up $ in millions $4M y-o-y > Improved business performance of $41M primarily driven by net material margin performance, improved freight costs and net engineering recoveries. Q3FY23 benefited from a non-recurring insurance recovery of
Slide 17: Q3 FY24 Adjusted-EBITDA: EMEA
Q3 FY24 Adjusted-EBITDA: EMEA Q3FY24 adjusted EBITDA of $25M, down $78M $ in millions y-o-y > Business performance was significantly impacted by: > Short notice customer downtime which led to adverse labor and overhead performance $103 $1 > Timing of commercial recoveries (Q3FY23 reflected a high le
Slide 18: Q3 FY24 Adjusted-EBITDA: Asia
Q3 FY24 Adjusted-EBITDA: Asia $ in millions Q3FY24 adjusted EBITDA of $101M, up $1M y-o-y > Improved business performance was driven by higher material margin and improved labor efficiencies > Volume and mix negatively impacted the quarter by $10M $19 $1 > FX was a $7M headwind related to RMB, JPY,
Slide 19: Non-GAAP financial measurements and pro-forma reconciliations
Non-GAAP financial measurements and pro-forma reconciliations Adjusted EBIT, Adjusted EBIT margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income attributable to Adient, Adjusted effective tax rate, Adjusted earnings per share, Adjusted equity income, Adjusted interest expense, Free ca
Slide 20: Non-GAAP Reconciliations - Adj.-EBIT, Adj.-EBITDA, and Adj.-Net income
Non-GAAP Reconciliations - Adj.-EBIT, Adj.-EBITDA, and Adj.-Net income (a) & (b) Adjusted EBIT and Adjusted EBITDA Three months ended (c) Adjusted net income attributable to Adient June 30 Three months ended June 30 (in $ millions) 2024 2023 (in $ millions) 2024 2023 Net income $ 5 $ 95 Net income (
Slide 21: Non-GAAP Reconciliations - Adjusted income tax expense, effective tax rate
Non-GAAP Reconciliations - Adjusted income tax expense, effective tax rate (d) Adjusted income tax expense and effective tax rate Three Months Ended June 30, (in $ millions, except effective tax rate) 2024 2023 Income Income Income (loss) tax Income (loss) tax before Income expense Effective before
Slide 22: Non-GAAP Reconciliations - Adjusted diluted EPS, equity income, net financing charges
Non-GAAP Reconciliations - Adjusted diluted earnings per share, adj. equity income, adj. net financing charges (e) Adjusted diluted earnings per share (f) Adjusted equity income Three months ended Three Months Ended June 30 June 30 (in $ millions, except per share data) 2024 2023 (in $ millions) 202
Slide 23: Non-GAAP Reconciliations - Free cash flow, net leverage, FX-adjusted sales
Non-GAAP Reconciliations - Free cash flow, net leverage, prior year fx-adjusted consolidated and unconsolidated sales (h) Free cash flow (in $ millions) Three Months Ended Nine Months Ended FY2023 June 30 June 30 Unconsolidated Net Sales Q1 Q2 Q3 (in $ millions) 2024 2023 2024 2023 As reported $ 976
Slide 24: Non-GAAP Reconciliations - Segment performance
Non-GAAP Reconciliations - Segment performance Q1 2023 Q1 2024 Corporate/ Corporate/ Americas EMEA Asia Consolidated Americas EMEA Asia Consolidated Eliminations Eliminations Net Sales 1,724 1,182 821 (28) 3,699 1,647 1,268 770 (25) 3,660 Adjusted EBITDA 69 28 138 (23) 212 80 45 114 (23) 216 Adjuste
Slide 25: Non-GAAP reconciliations - footnote addendum
Non-GAAP reconciliations - footnote addendum (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time as