Slide 1: FY 2017 First Quarter Earnings Call
FY 2017 First Quarter Earnings Call February 3, 2017 Improving the experience of a world in motion
Slide 2: Forward looking statement
Forward looking statement 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” wi
Slide 3: Agenda
Agenda Introduction Mark Oswald Executive Director, Global Investor Relations First quarter highlights Bruce McDonald Chairman and Chief Executive Officer Financial review Jeffrey Stafeil Executive Vice President and Chief Financial Officer Q&A Q1 2017 Earnings / February 2017 3 Adient – Improving t
Slide 4: Highlights
Highlights > Completed separation from Johnson Controls International; began trading on NYSE under the symbol “ADNT” > Strong acceptance of ADNT’s investment thesis: ‒ Leading and strengthening market position ‒ Earnings growth (~200 bps margin improvement expected in mid-term) ‒ Proven record of ge
Slide 5: Highlights
Highlights > Leading market position has continued to strengthen: ‒ Three-year Seating backlog (2017-2019) increased to $2.4B ‒ Three-year YFAI backlog (2017-2019) increased to $2.3B ‒ Announced RECARO commercial vehicle seating contract with MAN Truck & Bus AG > Showcased how innovation will be a s
Slide 6: FY17 Q1 key product launches
FY17 Q1 key product launches Strengthening our leading position across customers, segments, and regions… BMW 5 Series Ford P375 Skoda Kodiaq Czech Republic Thailand Czech Republic Honda 2SK Tata Kite05 VW Audi Q2 VW Cross Blue Malaysia India Romania United States Q1 2017 Earnings / February 2017 6 A
Slide 7: Current operating environment
Current operating environment > Global production outlook improving ‒ Q2 headwinds in U.S. and uncertainties in China > Rising commodity prices and strong USD are headwinds > Longer-term uncertainties with new U.S. administration > Margin expansion initiatives ahead of schedule > Strong growth in un
Slide 8: Financial Review
FINANCIAL REVIEW FY2017 First Quarter Q1 2017 Earnings / February 2017 Adient – Improving the experience of a world in motion
Slide 9: FY2017 Q1 Key Financials
FY2017 Q1 Key Financials As Reported As Adjusted 1 $ millions, except per share data FY17 Q1 FY16 Q1 FY17 Q1 FY16 Q1 B/(W) Reported revenue $ 4,038 $ 4,233 $ 4,038 $ 4,233 -5% EBIT $ 234 $ 209 $ $290 $ 255 +14% Margin 5.8% 4.9% 7.2% 6.0% EBITDA N/A N/A $ 377 $ 338 +12% Margin 9.3% 8.0% Memo: Equity
Slide 10: Revenue – consolidated & unconsolidated
Revenue – consolidated & unconsolidated $ in Millions Consolidated sales > Consolidated sales challenged in the near-term resulting from capital constraints in prior years (pre-2016) $4,233 ‒ Volume and FX headwinds primary drivers of y-o-y decrease $8 $4,038 ($164) ($39) > Strong growth expected in
Slide 11: Adjusted-EBIT
Adjusted-EBIT > Adj-EBIT expanded to $290M, up $35M y-o-y $ in Millions $12 $17 > Primary drivers: $290 $25 ($19) ‒ SG&A improvement reflecting the $255 benefits of restructuring actions and lower corporate expenses 7.2% ‒ Improved operational results 6.0% ‒ Increase in equity income > Material econ
Slide 12: Cash and capital structure summary
Cash and capital structure summary Capitalization detail > Cash and cash equivalents of $709M at ($ in millions) $ Amount Coupon December 31, 2016 Cash & cash equivalents $709 ‒ Capital expenditures totaled $207M in FY17 Q1 compared to $108M a year ago. Revolving credit facility ($1.5B) due 2021 – ‒
Slide 13: Looking forward: FY2017 guidance
Looking forward: FY2017 guidance Status Revenue $16.8 to $17.0 billion ADJ. EBIT $1.15 to $1.2 billion $400 million of equity income excludes $20 million purchase (Incl. ~$400 million of E.I.) accounting amortization related to YFAI Depreciation & Amortization $400 million Interest Expense $145 mill
Slide 14: Adient's Key Investment Thesis
Adient’s Key Investment Thesis MARKET POSITION ˃ Broadest and most complete range of seating products ˃ Unparalleled customer diversity– market leadership in North America, Europe and China (unique and longstanding position in China through JV structure); support all major automakers (190+ active pl
Slide 15: Appendix and Financial Reconciliations
A PPEN D IX A N D FIN A N C IA L R EC ON C ILIATION S FY2017 First Quarter Adient / Q1 2017 Earnings / 2-3-17
Slide 16: Non-GAAP financial measurements
Non-GAAP financial measurements > Adjusted EBIT, Adjusted EBIT margin, Pro-forma adjusted EBIT, Pro-forma adjusted EBIT margin, Pro-forma adjusted EBITDA, Adjusted effective tax rate, Adjusted net income attributable to Adient, Pro-forma adjusted net income attributable to Adient, Adjusted earnings
Slide 17: Non-GAAP reconciliations
Non-GAAP reconciliations EBIT, Pro-forma Adjusted EBIT, Pro-forma Adjusted EBITDA FY16 Actual Last Twelve Months Ended Actual Actual Actual Actual (in $ millions) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Jun '16 Sep '16 Dec '16 Net income attributable to Adient $ (116) $ 137 $ (779) $ (14) $
Slide 18: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Net Income Adjusted Net Income Adjusted Diluted EPS Three Months Ended Three Months Ended December 31 December 31 (in $ millions) 2016 2015 (in $ millions) 2016 2015 Net income attributable to Adient $ 149 $ 137 Diluted earnings per share as reported $ 1.59 $ 1.46 B
Slide 19: Non-GAAP reconciliations
Non-GAAP reconciliations Free Cash Flow, Net Debt, and Adjusted Equity Income Free Cash Flow Net Debt and Net Leverage Three Months Ended December 31 December 31, September 30, (in $ millions) 2016 2015 (in $ millions) 2016 2016 (1) Operating cash flow $ (13) $ 90 Cash $ 709 $ 550 Less: Capital expe
Slide 20: Non-GAAP reconciliations
Non-GAAP reconciliations Adjusted Income before Income Taxes Adjusted Income before Income Taxes Three Months Ended December 31 (in $ millions) 2016 2015 Income before Effective tax Income before Effective tax Income Taxes Tax impact rate Income Taxes Tax impact rate As reported $ 199 $ 28 14.1% $ 2
Slide 21: Prior Period Results
Prior Period Results FY16 Actual Last Twelve Months Ended Actual Actual Actual Actual Actual (in $ millions) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Jun '16 Sep '16 Dec '16 Sales $ 4,162 $ 4,233 $ 4,298 $ 4,362 $ 3,944 $ 4,038 $ 17,055 $ 16,837 $ 16,642 Adjusted EBIT 233 255 298 326 290 290