Slide 1: Adient Investor Meetings
Adient Investor Meetings February / March 2020 Improving the experience of a world in motion 1 Adient – Improving the experience of a world in motion
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: Today's agenda
Today’s agenda > Executive summary > Operations update • Turnaround plan solidly on track • Strategic actions further positioning Adient for long-term success > Innovation: balancing the “now” with the “future” > Financial update > Successfully transitioned from “stabilization” to “improvement” phas
Slide 4: Executive summary
Executive summary Leading competitive position in a strong and vital market > Adient maintains one of the largest market shares (~33%) in a concentrated segment with few global competitors > Well diversified customer mix - no customer is greater than 12% of total consolidated sales > High barriers t
Slide 5: Impact of COVID-19 on Adient's FY20 outlook
Impact of COVID-19 on Adient’s FY20 outlook > The coronavirus has caused a great deal of uncertainty for the auto industry both inside and outside of China Adient specifics > China’s auto industry has experienced a staggered restart to operations after the Lunar New Year Holiday > To ensure the heal
Slide 6: Operations update
Operations update Adient – Improving the experience of a world in motion
Slide 7: Significant opportunity to improve earnings and cash generation
Significant opportunity to improve earnings and cash generation Benchmarking our performance Closest peer 8% – 9% 2 ➢ Significant opportunity to further increase Gap to closest peer earnings and cash flow >$600M Adj. EBITDA opportunity ➢ Closing the margin gap from current levels would translate to
Slide 8: Executing Adient's turnaround plan – successfully stabilized the business in FY19
Executing Adient’s turnaround plan – successfully stabilized the business in FY19 8 Adient – Improving the experience of a world in motion
Slide 9: Renewed focus on fundamentals underpinned the stabilization
Renewed focus on fundamentals underpinned the stabilization ➢ ➢ ➢ ➢ ➢ ➢ ➢ 9 Adient – Improving the experience of a world in motion
Slide 10: Successfully transitioned to the "improvement" phase of turnaround
Successfully transitioned to the “improvement” phase of turnaround FY2019 FY2020 - FY2022 FY2023 and beyond Stabilization Improvement Optimization Renewed emphasis on Earnings and cash flow Expected margin gap closure to discipline in fundamentals growth peers, additional FCF generation Specific foc
Slide 11: Specific focus areas driving improved results
Specific focus areas driving improved results ➢ ➢ ➢ Launch Operational ➢ management improvement • Continuous • Better launch improvement execution • Lean activities • Reduced number of ➢ launches and launch • Asset utilization complexity • Rationalize footprint ➢ Commercial Cost reduction discipline
Slide 12: Recently announced strategic actions demonstrate Adient's focus
Recently announced strategic actions demonstrate Adient’s focus on the core seating business and capital allocation Divestiture of RECARO Non-core, breakeven business Automotive Seating Focus on capital allocation With operations stabilized in FY19 and Sale of 30% ownership stake in steadily improvi
Slide 13: Innovation: Balancing the "now" with the "future"
Innovation: Balancing the “now” with the “future” Adient – Improving the experience of a world in motion
Slide 14: Adient innovations aligned with customers' needs
Adient innovations aligned with customers’ needs Safety Emotional, sensorial experience Seamlessly integrate our products Pursue excellence in the execution of within vehicle safety systems to meet design theme, harmony, craftsmanship or exceed all government and OEM (sensorial experience) and intui
Slide 15: Collaborative workshops create value for Adient, our customers and end-users
Collaborative workshops create value for Adient, our customers and end-users Current Our Solution: environment Collaborative Workshops 15 Adient – Improving the experience of a world in motion
Slide 16: Adient's global reach and engineering enable value-enhancement opportunities
Adient’s global reach and engineering enable a wide range of value-enhancement opportunities to our customers Global • Reach • • Engineering Materials • • Commonizing Solutions • Global • Sourcing • 16 Adient – Improving the experience of a world in motion
Slide 17: Satisfying our customers' needs with award-winning solutions
Satisfying our customers’ needs with award-winning solutions: 2020 North American Car, Utility and Truck of the Year > Adient's industry-leading seats and components were included in two of the three North American Car, Utility and Truck of the Year (NACTOY) winners • Jeep Gladiator • Kia Telluride
Slide 18: Financial performance
Financial performance Adient – Improving the experience of a world in motion
Slide 19: Key financials (FY19 and Q1 FY20)
Key financials (FY19 and Q1 FY20)1 $’s millions > Improved operational performance in the Americas and EMEA regions has driven sequential improvement in Adient’s financial results − Turnaround actions implemented throughout FY19 gained traction and drove just under $100M in improved Adjusted EBITDA
Slide 20: Cash flow & debt
Cash flow & debt 1 > Improving Adient’s cash generation is a key focus area > Strong quarter-end cash balance > Cash and cash equivalents of $965M at Dec. 31, 2019 > Gross debt and net debt totaled $3,754M and $2,789M, respectively, at Dec. 31, 2019 > Manageable level of debt with no near term matur
Slide 21: Additional opportunity to strengthen the balance sheet
Additional opportunity to strengthen the balance sheet - positioning Adient for long-term success Proceeds Divestiture of RECARO Non-core, breakeven business $0 expected to be Automotive Seating Focus on capital allocation used to paydown a portion of Sale of 30% ownership stake in Adient’s debt $37
Slide 22: Driving shareholder value
Driving shareholder value Driving shareholder value With operations stabilized and steadily improving, opportunity to execute Strengthening the balance strategic actions: sheet Execute improvement phase of turnaround plan Cash flow growth ► Portfolio adjustments (sale of focused on: RECARO Automotiv
Slide 23: Appendix: about Adient & financial reconciliations
Appendix: about Adient & financial reconciliations Adient – Improving the experience of a world in motion
Slide 24: Adient today
Adient today Adient is a critical supplier in automotive seating, supplying approximately one out of every three automotive seats worldwide NYSE: ADNT FY19 Revenue Global market Revenue by share* geography* ~$16.5B ~$7.9B Consolidated Unconsolidated Americas Europe / Lear revenue seating revenue Adi
Slide 25: We are located where our customers need us most
We are located where our customers need us most Global locations Edit Master text styles Second level 220 > Third level ‒ Fourth level manufacturing facilities ‒ Fifth level 35 countries Global employees 83,000 Adient – Improving the experience of a world in motion 25 Adient – Improving the experien
Slide 26: Strong customer diversification
Strong customer diversification JLR 2% Others Ford PSA 2% 10% 11% > Industry leading diversification We work with the > By customer FCA 10% No customer is greater than 12% of world’s largest BMW 5% N. American total consolidated sales OEM's automotive Volvo 27% GM > By platform 6% manufacturers 6% E
Slide 27: Our Seating Joint Venture partnerships in China
Our Seating Joint Venture partnerships in China enable us to enjoy a clear leadership position in China We generated We have We have $7.4B 19 seating joint ventures* ~79 manufacturing sales revenue in FY2019 locations with We employ 4 ~ 40% - 45% global tech centers 31,000 combined share of the high
Slide 28: Adient – Improving the experience of a world in motion
28 Adient – Improving the experience of a world in motion
Slide 29: The right products
The right products Providing world-class seat systems and components that offer safety, functionality and comfort with proven quality 29 Adient – Improving the experience of a world in motion
Slide 30: Adient delivers a diverse range of seating products and solutions
Adient delivers a diverse range of seating products and solutions We partner with OEMs to develop customized seating systems that excel in quality and craftsmanship We utilize lightweight, innovative materials to enhance fuel efficiency and vehicle differentiation COMPLETE SEAT STRUCTURES FOAM TRIM
Slide 31: Appendix: financial reconciliations
Appendix: financial reconciliations Adient – Improving the experience of a world in motion
Slide 32: Non-GAAP financial measurements
Non-GAAP financial measurements > 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 free cash flow, Net debt and Net leverage as well as
Slide 33: Non-GAAP reconciliations - EBIT, Adjusted EBIT, Adjusted EBITDA
Non-GAAP reconciliations - EBIT, Adjusted EBIT, Adjusted EBITDA Three months ended December 31 2019 2018 2018 (in $ millions) GAAP Adj. Adjusted GAAP Adj. Adjusted Adj. Adjusted GAAP 1 Adj. Adjusted Net sales $ 3,936 $ - $ 3,936 $ 4,158 $ - $ 4,158 Cost of sales (1) 3,673 (2) 3,671 3,978 (10) 3,968
Slide 34: Non-GAAP reconciliations - EBIT, Adjusted EBIT, Adjusted EBITDA (prior periods)
Non-GAAP reconciliations - EBIT, Adjusted EBIT, Adjusted EBITDA Three months ended March 31 Three months ended June 30 Three months ended September 30 (prior periods) (in $ millions) GAAP 2019 Adj. Adjusted GAAP 2019 Adj. Adjusted GAAP 2019 Adj. Adjusted Net sales $ 4,228 $ - $ 4,228 $ 4,219 $ - $ 4
Slide 35: Segment Performance
Segment Performance Segment Performance (in $ millions) Q1 2019 Q1 2020 Corporate / Corporate / Americas EMEA Asia Consolidated Americas EMEA Asia Consolidated Recon Items Recon Items Net sales $ 1,935 $ 1,640 $ 650 $ (67) $ 4,158 $ 1,859 $ 1,564 $ 572 $ (59) $ 3,936 Adjusted EBITDA 43 2 154 (23) 17