Slide 1: FY2025 First Quarter Earnings Call
FY2025 First Quarter Earnings Call January 28, 2025 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 FY2025 First Quarter Earnings Call Adient – PUBLIC 3
Slide 4: Solid start to Q1 with business performance mitigating ongoing industry headwinds
Solid start to Q1 with business performance mitigating ongoing industry headwinds > Industry production softness continues to drive near- term pressure > Americas – customers destocking inventories as Key Q1 FY25 expected, mostly right-sized heading into CY2025 Financial Metrics > EMEA- navigating v
Slide 5: Regional update: Americas, EMEA, Asia
Regional update > Adient’s customers destocked > Industry remains challenged > Macro conditions remain inventories, pressuring production > Weak volume and program challenging for region volumes in fiscal Q1 delays from traditional OEMs > Asia business continues to produce > Industry is better posit
Slide 6: China market overview
China market overview Stiff headwinds persist Adient’s response > Macro conditions in China: challenging market conditions > Leveraging our technical capabilities, leading product that emerged in late CY24 have continued into CY25 innovations and high content expertise, domestic and global footprint
Slide 7: Driving forward with new business wins and key launches
Driving forward with new business wins and key launches New Business Mercedes Xpeng Chang’an Deepal FAW Hongqi Hyundai E-Class G01 (large SUV) C518 (Sedan) H5 Elantra (Sedan) Complete Seat Rear Seat Rear Seat Complete Seat Complete Seat Launches Toyota Volkswagen Nissan Honda Dodge Bz3c Tayron Leaf
Slide 8: 2024 Sustainability Report highlights commitments and progress
2024 Sustainability Report highlights commitments and progress FISCAL YEAR 2024 HIGHLIGHTS Adient’s sustainability journey continues, driving sustainable growth through environmental reduction in Scope 1 stewardship, social responsibility and ethical 38% and 2 greenhouse gas emissions* governance. L
Slide 9: Key takeaways
Key takeaways The Americas continue to expand margins; Asia The company continues region continues to have to drive higher levels and strong margins and FCF improve business and continues to win performance, mitigating new business with local macro pressures China OEMS; EMEA remains a restructuring
Slide 10: Financial Review
Financial Review FY2025 First Quarter Adient – PUBLIC
Slide 11: Q1 FY25 key financials
Q1 FY25 key financials $ millions, except per share data As Reported As Adjusted 1 Q1 FY25 Q1 FY24 Q1 FY25 Q1 FY24 B/(W) Consolidated Revenue $ 3,495 $ 3,660 $ 3,495 $ 3,660 (5%) EBIT $ 93 $ 111 $ 122 $ 131 (7%) Margin 2.7% 3.0% 3.5% 3.6% EBITDA N/A N/A $ 196 $ 216 (9%) Margin 5.6% 5.9% Memo: Equity
Slide 12: Q1 FY25 revenue: consolidated and unconsolidated sales
Q1 FY25 revenue: consolidated and unconsolidated sales Regional Performance $ in millions Consolidated sales (consolidated sales y-o-y growth vs. Q1FY24 by region) 1 Q1 Q1 S&P $(5) Production $(160) Americas -2% -1% $3,660 $3,495 EMEA 2 -11% -11% Asia 0% 3% Note: China -10% 8% Note: Asia excl. China
Slide 13: Q1 FY25 adjusted EBITDA
Q1 FY25 adjusted EBITDA $ in millions Q1 FY25 adjusted EBITDA of $196M, down $20M y-o-y, was primarily driven by: $5 $1 > Improved business performance of $28M, $216 $(23) $(3) $196 primarily resulting from better net material margin and reduced operating costs including lower launch costs Q1FY24 Am
Slide 14: Q1 FY25 cash flow
Q1 FY25 cash flow Free Cash Flow Key drivers impacting Q1 FY25 FCF: Adjusted EBITDA to Free Cash Flow FY2025 FY2024 (+) Typical month-to-month working capital (in $ millions) Q1 Q1 movements Adjusted-EBITDA $ 196 $ 216 (+) Net capitalized engineering Adjusted equity income (21) (25) Dividend 6 16 (-
Slide 15: Debt and capital structure
Debt and capital structure Net Debt ($ in millions) 12/31/2024 December 31 September 30 Cash & Debt Profile Amount (in $ millions) 2024 2024 Cash & Cash Equivalents $ 860 ABL Revolver, incl. FILO due 2027 (1) - Cash $ 860 $ 945 Term Loan B due 2031 630 Total Debt 2,402 2,405 7.000% Secured Notes due
Slide 16: FY25 Outlook update
FY25 Outlook update Consolidated sales Approx. ~$13.9B Incremental China / EMEA production headwinds MACRO (previous $14.1B - $14.4B) (~$150M revenue impact from volume) Adj.-EBITDA Approx. ~$850M (previous $850M - $900M) Translational FX (~$200M revenue impact) Equity income ~$80M Incl. in Adj.-EBI
Slide 17: Appendix and financial reconciliations
Appendix and financial reconciliations FY2025 First Quarter Adient – PUBLIC
Slide 18: Q1 FY25 Adjusted-EBITDA: Americas
Q1 FY25 Adjusted-EBITDA: Americas Q1 FY25 of $85M, up $5M y-o-y, driven by: > Improved business performance of $9M, primarily driven by favorable $ in millions freight costs and lower launch costs > Favorable mix impact of $5M resulting $5 $1 $8 $85 largely from improved volumes on high $80 content,
Slide 19: Q1 FY25 Adjusted-EBITDA: EMEA
Q1 FY25 Adjusted-EBITDA: EMEA Q1 FY25 of $22M, down $23M y-o-y, driven by: > Business performance slightly up in the $ in millions quarter, mainly due to improved material margin and operating performance, $2 $1 including restructuring activities $45 $2 > Volume and mix was a $26M headwind resulting
Slide 20: Q1 FY25 Adjusted-EBITDA: Asia
Q1 FY25 Adjusted-EBITDA: Asia Q1 FY25 of $111M, down $3M y-o-y, driven by: > Improved business performance of $14M, mainly due to improved net material margin $ in millions 14.7% and lower launch expenses $14 $6 > FX was a tailwind of $6M during the quarter $114 $111 > Volume and mix was a $18M head
Slide 21: 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 22: Non-GAAP reconciliations – EBIT, adj.-EBIT, adj.-EBITDA, and adj.-net income
Non-GAAP reconciliations – EBIT, adj.-EBIT, adj.-EBITDA, and adj.- net income FY2025 First Quarter Earnings Call Adient – PUBLIC January 28, 2025 22
Slide 23: Non-GAAP reconciliations – adj. income tax expense and effective tax rate
Non-GAAP reconciliations – adj. income tax expense and effective tax rate FY2025 First Quarter Earnings Call Adient – PUBLIC January 28, 2025 23
Slide 24: Non-GAAP reconciliations – adj. EPS and adj.-equity income
Non-GAAP reconciliations – adj. EPS and adj.-equity income FY2025 First Quarter Earnings Call Adient – PUBLIC January 28, 2025 24
Slide 25: Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt leverage ratio
Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt leverage ratio FY2025 First Quarter Earnings Call Adient – PUBLIC January 28, 2025 25
Slide 26: Non-GAAP reconciliations – consolidated & unconsolidated sales (FX adj.)
Non-GAAP reconciliations – consolidated & unconsolidated sales (FX adj.) Consolidated Sales (FX adjusted) Unconsolidated Sales (FX adjusted) (in $ millions) (in $ millions) Consolidated Net Sales Q1 Q2 Q3 Q4 FY2024 Unconsolidated Net Sales Q1 Q2 Q3 Q4 FY2024 As reported $ 3,660 $ 3,660 As reported $
Slide 27: Segment Performance
Segment Performance Q1 2024 Q1 2025 Corporate/ Corporate/ Americas EMEA Asia Consolidated Americas EMEA Asia Consolidated Eliminations Eliminations Net Sales 1,647 1,268 770 (25) 3,660 1,611 1,129 772 (17) 3,495 Adjusted EBITDA 80 45 114 (23) 216 85 22 111 (22) 196 Adjusted Equity Income 1 4 20 - 25
Slide 28: Non-GAAP reconciliation – footnote addendum
Non-GAAP reconciliation – footnote addendum FY2025 First Quarter Earnings Call Adient – PUBLIC January 28, 2025 28