Adient Plc · NYSE:ADNT

Adient — Q4 FY2016 Earnings Presentation

25 slides from Adient's earnings presentation, Nov 8, 2016

  1. Slide 1: Quarterly Update FY16 Fourth Quarter

    Quarterly Update FY16 Fourth Quarter November 8, 2016

  2. Slide 2: Cautionary Statement Regarding Forward-Looking Statements

    Johnson Controls, plc. —2 November 8, 2016 Johnson Controls International plc Cautionary Statement Regarding Forward-Looking Statements Johnson Controls International plc has made statements in this communication that are forward-looking and therefore are subject to risks and uncertainties. All stat

  3. Slide 3: Non GAAP Financial Information

    Johnson Controls, plc. —3 November 8, 2016 Non GAAP Financial Information This presentation contains financial information regarding adjusted earnings per share, which is a non-GAAP performance measure. The adjusting items include mark-to-market for pension and postretirement plans/settlement losses

  4. Slide 4: Agenda

    Johnson Controls, plc. —4 Agenda FY16 commitments & fourth quarter highlights Alex Molinaroli, Chairman and Chief Executive Officer Introduction Antonella Franzen, Vice President, Investor Relations Business results and financial review Brian Stief, Executive Vice President and Chief Financial Offic

  5. Slide 5: Delivering on our FY16 Commitments

    Johnson Controls, plc. —5 Second Quarter 2015 Financial Highlights (continuing operations) Delivering on our FY16 Commitments November 8, 2016 *Non-GAAP, excludes Tyco results as well as transaction / integration / separation costs, year-end pension/postretirement mark-to-market adjustments and othe

  6. Slide 6: FY16 Fourth Quarter Diluted EPS vs. Guidance

    Johnson Controls, plc. —6 Second Quarter 2015 Financial Highlights (continuing operations) FY16 Fourth QuarterDiluted EPS from Continuing Operations vs. Guidance Q4 FY16 Full Year FY16 FY16 Guidance* $1.17 - $1.20 $3.95 - $3.98 Adjusted EPS* $1.21 $3.98 YoY Increase +16% +16% November 8, 2016 *Non-G

  7. Slide 7: FY16 Fourth Quarter Highlights

    FY16 Fourth Quarter Highlights* 7 Johnson Controls, plc . --  Organic growth of 4% (ex. Automotive Experience)  Building Efficiency sales up 2% (ex. FX and M&A)  Power Solutions sales up 8% (ex. FX and Lead)  Hitachi joint venture profitability and integration continuing to exceed expectations 

  8. Slide 8: FY16 Fourth Quarter Earnings from Continuing Operations

    Johnson Controls, plc. —8 FY16 Fourth Quarter Earnings from Continuing Operations* *Year 3 run rate synergies / productivity are estimates of future amounts November 8, 2016 Segment EBIT margin +7% Level FY16 Q4 FY15 Q4 $9.4 B $8.7 B NET SALES FY16 Q4 FY15 Q4 $1,085 M $939 M SEGMENT EBIT +16% +90 bp

  9. Slide 9: Productivity and Deal Synergies

    Johnson Controls, plc. —9 Johnson Controls Productivity ~$300M* Tyco Productivity ~$100M* Deal Synergies ~$650M*  Manufacturing/ Engineering  Procurement  Marketing & Sales  Functional Excellence  Procurement  Branch Network  Functional Excellence  Operational  Tax Productivity Plus Deal Sy

  10. Slide 10: Organized Around Strategic Platforms

    Johnson Controls, plc. —10 Organized Around 2 Strategic Platforms *Year 3 run rate synergies / productivity are estimates of future amounts November 8, 2016 Power FY16 Sales: $7B Buildings FY16 Sales: $23B Building Efficiency ~$13B Tyco ~$10B Conventional Lead-Acid AGM (Start-Stop) Lithium-Ion Energ

  11. Slide 11: Building Efficiency

    Building Efficiency* Continued order momentum +25% +2% FY16 Q4 FY15 Q4 $3.6 B $2.9 B NET SALES +17% FY16 Q4 FY15 Q4 $410 M $351 M SEGMENT EBIT Ex. FX and M&A * Non-GAAP excludes transaction / integration / separation costs and other special items. See appendix.  Third party sales (ex. FX and M&A) 

  12. Slide 12: Tyco

    Tyco* 12 Johnson Controls, plc. -  Represents September results  Includes $21M incremental recurring purchase accounting amortization  Conforms to Johnson Controls accounting policies  Solid momentum entering FY17 November 8, 2016 $828 M NET SALES SEGMENT EBIT $86 M * Non-GAAP excludes transacti

  13. Slide 13: Power Solutions

    Power Solutions* Higher volumes and significant margin expansion  Segment EBIT margin +160 bps  Benefit of lower lead price on sales  Higher volumes  Favorable product mix  Cost reduction initiatives +7% +8% FY16 Q4 FY15 Q4 $1.8 B $1.7 B NET SALES Ex. FX & lead impact +16% FY16 Q4 FY15 Q4 $394

  14. Slide 14: Automotive Experience

    Automotive Experience* Strong profitability -5% FY16 Q4 FY15 Q4 $3.9 B $4.2 B NET SALES +13% FY16 Q4 FY15 Q4 $281 M $248 M SEGMENT EBIT 14 Johnson Controls, plc. -  Growth in Asia offset by lower North America and Europe volumes  China sales (mostly non-consolidated) +26% to $2.9 billion (+31% ex.

  15. Slide 15: Fourth Quarter Financial Highlights (continuing operations)

    Johnson Controls, plc. —15 Second Quarter 2015 Financial Highlights (continuing operations) FY16 Fourth QuarterFinancial Highlights (continuing operations) (in millions) 2016 * 2015 * % Change 2016 (reported) 2015 (reported) Sales $9,390 $8,749 +7% $10,198 $8,749 Gross profit % of sales 1,927 20.5%

  16. Slide 16: Income statement from EBIT to diluted EPS

    Johnson Controls, plc. —16 (in millions, except earnings per share) 2016 * 2015 * 2016 (reported) 2015 (reported) EBIT $1,085 $939 $295 $628 Restructuring and impairment costs - - 289 397 Financing charges - net 77 73 103 73 Income (loss) before taxes 1,008 866 (97) 158 Income tax provision 172 162

  17. Slide 17: Balance Sheet and Cash Flow

    Johnson Controls, plc. —17 Second Quarter 2015 Financial Highlights (continuing operations) Bal e Sheet and Cash Flow  Net debt to capitalization of 39.4% at 9/30/16  Assumed Tyco debt of $2.2 billion (weighted average interest rate of 3.7%)  Tyco debt issuance of $4.0 billion (interest rate of 2

  18. Slide 18: Proforma Net Debt

    Johnson Controls, plc. —18 Proforma Net Debt $10.7 ($3.5) ($0.7) ($1.5) $16.4 Gross Debt - 9/30/16 Adient Debt Cash Cash in Escrow* Proforma Net Debt * $1.5 billion Adient distribution received in fourth quarter; $1.5 billion received from escrow in October 2016 November 8, 2016

  19. Slide 19: FY17 Matters of Interest

    Johnson Controls, plc. —19 Second Quarter 2015 Financial Highlights (continuing operations) Y17 Matters of Interest  Adient to be reflected as discontinued operation beginning first quarter FY17  Buildings reportable segment change  Corporate reported separately  Finalize purchase accounting rel

  20. Slide 20: Analyst Day in New York, December 5th

    20 Johnson Controls, plc. - November 8, 2016 Analyst Day in New York Mandarin Oriental Hotel December 5th

  21. Slide 21: _ Johnson Wi

    _ Johnson Wi Controls

  22. Slide 22: Fourth Quarter Special Items (Continuing Operations)

    Johnson Controls, plc. —22 Second Quarter 2015 Financial Highlights (continuing operations) ourth Quarter Special Items (C ntinu ng Operations) In millions, except EPS impact numbers Note: Total may not sum due to rounding November 8, 2016 2016 Pre‐tax Income (Expense) Tax (Expense) Benefit NCI (Exp

  23. Slide 23: Free Cash Flow

    Johnson Controls, plc. —23 Second Quarter 2015 Financial Highlights (continuing operations) ree C sh Flow* Note: May not sum due to rounding November 8, 2016 FY16 FY15 FY16 FY15 FY16 FY15 Cash provided by operating activities 0.7$ 0.9$ 1.1$ 0.7$ 1.8$ 1.6$ Capital expenditures (0.8) (0.8) (0.4) (0.3)

  24. Slide 24: Fourth Quarter FY16 Restructuring and Impairment Costs

    Johnson Controls, plc. —24 Second Quarter 2015 Financial Highlights (continuing operations) ourth Quarter FY16 Restr cturing and Impairment Costs Restructuring and non-cash impairment charges primarily related to workforce reductions and asset impairments In millions November 8, 2016 Business Unit C

  25. Slide 25: johnsoncontrols.com/investors

    johnsoncontrols.com/investors @JCI_IR

Adient — Q4 FY2016 Earnings Presentation on 6ix