Adient Plc · NYSE:ADNT
Adient — Investor Day (June 2017)
122 slides from Adient's investor day presentation, Jun 28, 2017
Slide 1: Adient China Business Review
Adient China Business Review June 28, 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: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China market overview ˃ Adient in China ˃ Adient’s unconsolidated financial strength ˃ Innovation ˃ JV overview ˃ Panel discussion China Business Review / June 28, 2017 3 Adient – Improving the experience of a world in motion
Slide 4: Adient today
Adient today The largest global automotive seating supplier, supporting all major automakers in the differentiation of their vehicles through superior quality, technology and performance. FY 2016 230+ 25+ 75,000 ~$17 billion locations globally million seat highly engaged Consolidated revenue systems
Slide 5: Adient's vision and mission bring focus to our success
Adient’s vision and mission bring focus to our success Vision Improving the Experience of a World in Motion Mission We will be the world-class automotive seating supplier through leadership in cost, quality, launch execution, and customer satisfaction. We will leverage our capabilities to drive grow
Slide 6: Broadest and most complete range of Seating & Interior Products
Broadest and most complete range of Seating & Interior Products Adient Automotive Seating Yanfeng Global Automotive Interiors > Complete Seat / Just-In-Time > Instrument Panels Manufacturing > Floor Consoles > Front & Rear Seat Structures > Door Panels > Track, Recliner, Manual Height Adjuster > Ove
Slide 7: Global market leader with diversified geographic exposure
Global market leader with diversified geographic exposure Global market share Revenue by geography Adient Americas Lear Europe / Africa 33% 34% 29% Faurecia Toyota 7% Asia / Pacific Boshoku 30% Other China Magna Early investment in emerging markets allowed Adient to take advantage of the globalizati
Slide 8: Global competitive market position
Global competitive market position Global market share Americas Europe In-house / small In-house / small In-house / <10% players players 10- small players 15% Adient 21% Adient Adient 33% 38% 33% 2016 market 2016 market 2016 market size ~ $22B size ~ $16B size ~ $65B 45% Traditional Traditional Comp
Slide 9: Our customer portfolio mirrors our customers' global market share
Our customer portfolio is the envy of the industry and closely mirrors our customer’s global market share Others JLR 4% Ford BMW 3% 4% 13% Key Takeaways Volvo 4% > Industry leading diversification Renault, Peugeot & Citroen GM > By customer -- largest customer 9% 5% accounts for 13% of total consoli
Slide 10: Seating – growth market
Seating – growth market 1 Industry Growth1 2 Mix > Global light vehicle production remains robust > Mix of Foam/Trim/JIT sourcing and component sourcing and is expected to reach production levels of > Continued shift towards SUVs / MPVs globally 101 million vehicles by 2020 > Increase in luxury / co
Slide 11: Adient is well positioned to capitalize on a shifting industry
Adient is well positioned to capitalize on a shifting industry Traditional manufacturers ... ... and the new players Industry trends > Autonomous driving > Electrification > Internet of things > Connectivity > Urbanization > Alternative propulsion > Slim & lightweight > Smart materials > Individuali
Slide 12: Opportunities in new markets
Opportunities in new markets Growing outside traditional auto markets West Coast New Commercial Players Vehicle Seating Railway Seating Aircraft Seating China Business Review / June 28, 2017 12 Adient – Improving the experience of a world in motion
Slide 13: Value drivers for Adient stock
Value drivers for Adient stock VALUE DRIVERS ~55% ˃ Margin improvement of 200 bps vs. LTM June 2016 results net earnings ˃ Strong order book in 2016, expected to drive top line growth in 2019 and beyond ˃ Proven ability to generate substantial cash flow Consolidated ˃ Largest market share with most
Slide 14: Joint venture income model makes us structurally unique
Unconsolidated results = higher quality earnings UNCONSOLIDATED RESULTS = HIGHER QUALITY EARNINGS ADNT’s equity income ˃ ~25% of Adient’s EBITDA generated through equity income ~25% – Shown as EBITDA for accounting purposes, should be treated as net EBITDA income for valuation purposes (already refl
Slide 15: Dissecting Adient's 2017E earnings
Dissecting Adient’s 2017E earnings ($ in millions) Base Business 2017E Consolidated Business EBITDA (Including Equity Income) $1,625 (-) 2017E Equity Income (400) 2017E Base Business EBITDA $1,225 Valued at Industry EV / EBITDA Multiple China Joint Ventures Valued at Industry 2017E Equity Income $40
Slide 16: Framework for valuing Adient
Framework for valuing Adient Primary - P/E Multiple Methodology Secondary - Blended Multiple Methodology Base Business EBITDA Multiple EBITDA Overview Adient EPS P/E Multiple JV Equity P/E Multiple Income Provides full value for JV equity income (key contributor Common method currently used by W
Slide 17: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China market overview ˃ Adient in China ˃ Adient’s unconsolidated financial strength ˃ Innovation ˃ JV overview ˃ Panel discussion China Business Review / June 28, 2017 17 Adient – Improving the experience of a world in motion
Slide 18: The outlook for business environment in China remains promising
The outlook for business environment in China remains promising Stabilized economic growth Strong government support Potential in consumption “New Normal” “Made in China 2025” ˃ Sustainable economic growth ˃ Move China’s auto industry ˃ Continued urbanization China GDP Growth Forecast 2017-2021 to t
Slide 19: China light vehicle production and short-term outlook
Market trends: China light vehicle production and short-term outlook Light Commercial Vehicle YoY (PV+LCV) % Passenger Vehicle Production CAGR ,% Production CAGR ,% Production CAGR ,% Passenger Vehicle: 2000-2007: 35% Passenger Vehicle: 2008-2016: 19% Passenger Vehicle: 2017-2022e: 3.2% YoY Growth L
Slide 20: We are prepared for the uncertainties
We are prepared for the uncertainties > Growth to slow down in 2017&2018, but hard landing is not likely > Competition will increase and price headwind will continue > We are capable of dealing with the market headwinds through: 1. Operational excellence (AMS; Industry 4.0) 2. Supply chain managemen
Slide 21: SUV trends are beneficial to Adient's growth
SUV trends are beneficial to Adient’s growth China SUV Development Trend % share based on production volume Seating content per vehicle: ~$1000-$1,100 Share of SUV of total market (Left) Gobal OEM's share in SUV (Right) ~$500-$600 ~$550-$650 60.0% 60.0% 45% 47% 44% 40% 40.0% 33% Average SUV SUV Loca
Slide 22: Premium market will continue to outpace the volume market in China
Premium market will continue to outpace the volume market in China China PV Production YoY Growth ( Average market vs. Premium) Segment share 2016 vs. 2021e PV Avg.YoY Growth % Premium YoY Growth % 28.2% 28.1% 29,6 29,3 26,7 65.0% 62.3% 6.8% 9.6% 21,1 18,6 19,0 ˃ Premium segment will 17,6 13,9 2016
Slide 23: Importance of Chinese market will continue to increase
Importance of Chinese market will continue to increase Evolving of the Global Platforms Chinese OEM Technology roadmap 2025: Leading Market New OEMs Of Electrification World’s biggest electric vehicle market with aggressive growth plans China Business Review / June 28, 2017 23 Adient – Improving the
Slide 24: China technology roadmap 2025: lightweight materials
Market trends: China technology roadmap 2025: focus on the development of lightweight materials Categories 2020 Objectives 2025 Objectives 2030 Objectives Vehicle weight reduction rate (In comparison to 2015) By 10% By 20% By 35% 50% use of AHSS w/ a strength of 30% use of 3-genereation HTS for Use
Slide 25: Development of New Energy Vehicle
Development of New Energy Vehicle Sales of New Energy Vehicle in China China’s NEV Brand Market Share in 2015 ˃ NEV market in China was Data source: China Association of Automobile Manufacture (CAAM) Chery, 3.9% Lifan, 3.1% JMC, 2.7% surging since 2014 +342,9% 507.000 JAC, 4.9% Others, 4.0% ˃ Local
Slide 26: Summary: Vehicle seating
Summary: ˃ The entire automotive industry is on the brink of a major transformation, technology is driving this shift, shaped by demographic, regulatory and environmental pressures. ˃ China’s auto industry will also evolve thus bring profound impact both domestically and globally. ˃ We are equipped
Slide 27: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China market overview ˃ Adient in China ˃ Adient’s unconsolidated financial strength ˃ Innovation ˃ JV overview ˃ Panel discussion China Business Review / June 28, 2017 27 Adient – Improving the experience of a world in motion
Slide 28: Adient is the largest automotive seating supplier in China
Adient is the largest automotive seating supplier in China We enjoy a clear leadership position in China We generated We employ $7.5B 31,000 sales revenue in FY2016 highly engaged employees including >1,300 engineers We have We have 17 seating joint ventures 45% PV market share Note: excluding YFAI
Slide 29: We operate through joint ventures, manufacturing plants and 4 global tech centers
We operate through 17 joint ventures, 67 manufacturing plants and 4 global tech centers in 37 locations YFAS SJA CQADNT BJA CFAA HQ & Plant FAA HQ & Plant CFAA GAAS Daqing Employees: 7,210 Employees: 1,075 FAA AYM Harbin Engineers: 247 Engineers: 10 Fabrics Changchun SJA HQ & Plant Tech Center (Glob
Slide 30: We partner with all major auto groups in China
We partner with all major auto groups in China China Joint Ventures Joint Venture Name Chinese Group Partner Joint Ventures’ Customers YFAS SAIC CFAA FAW CQADNT Changan Complete Seat BJA BAIC SJA Brilliance GAAS & CAA GAC GZDFAS Dongfeng AYM SAIC FAA FAW Serving all major OEM customers Components WF
Slide 31: Adient China's current seating market share in each big auto group
Adient China’s current seating market share in each big auto group % Adient’s JIT market share in each big auto group, based on 2016 production volume (PV) Where competitors have alliance with the auto group PV seating market share per each major auto group 4816K 3495K 3057K 2037K 1999K 1734K 100% 7
Slide 32: Leading position with western OEMs with opportunities with Asian and Local OEMs
Leading position with western OEMs with opportunities with Asian and Local OEMs Seating* market share among each OEM Group European OEM 70% LEAR FSA Sitech Adient Share at In-House N.A. OEM 77% LEAR FSA Global OEM 6.5% 23.5% C OEM Japanese OEM 31% Toyota Boshoku TS-Tech Tachi –S FSA JV Others 56% KR
Slide 33: Unparalleled customer diversity and relationships in China
Unparalleled customer diversity and relationships in China Customer Mix by Volume Asian OEMs (w/o China) 19% European OEMs 40% Chinese OEMs 19% North American OEMs 22% China Business Review / June 28, 2017 33 Adient – Improving the experience of a world in motion
Slide 34: Customer awards and recognition
Customer awards and recognition 2016: 24 awards in total No JV Customer Award No JV Customer Award 1 YFAS-Shanghai SGM Best Supplier 1 YHAS JAC New Model SOP Contribution Award 2016 2 YFAS-Yantai SGM Gold Partner Award 2 YHAS JAC Excellent Supplier Award 2016 3 YFAS-Shenyang SGM Best Supplier 3 YHAS
Slide 35: Key Takeaways
Key Takeaways We have been successful in China over the Our goal is to continue to outpace the past 20 years making us the industry leader, market, further expanding our share because we do things right: and strengthening our leadership. > Unique and longstanding position in China through Joint Vent
Slide 36: Our Commitment
Our Commitment > We will continue to focus on growth, building on our strengths > Customer Focus > Partnerships and Global Team > Products / Technology / Innovation > Operational Excellence > We will be nimble and influence market changes > We will leverage our strength in China to grow in the rest
Slide 37: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China market overview ˃ Adient in China ˃ Adient’s unconsolidated financial strength ˃ Innovation ˃ JV overview ˃ Panel discussion China Business Review / June 28, 2017 37 Adient – Improving the experience of a world in motion
Slide 38: Adient China's unconsolidated financial strength
Adient China’s unconsolidated financial strength 1 FY2012 – FY2016 Industry CNY in billions Adient Results Sales Net Cash 3 48.9 > Top-line growth > Well capitalized Units, Millions 5.8 in excess of balance sheets China Light Vehicle 29.1 industry growth across the Production 2 expected to various j
Slide 39: Financial Returns from China JVs
Financial Returns from China JVs China Foundation Incredible Growth 1997- 2006 2007-2016 Invest. Capital $73.8M $74.1M YFAS/SJJ/CFAA/BJA YHAS/YFAT/FAA/GAAS/WTAS CQADNT/GZYFAS/AYHS DLYFAS/CAA/WFAD/AYM/ADNNG Cumulated Adient Dividends YTD:$1,226.3M $147.8M invest turned into $1.226B return over 20 yea
Slide 40: Financial Strength Expected to Be Continued – Sales
Financial Strength Expected to Be Continued – Sales Adient is expected to continue realize sales growth in China > China automotive industry slows down but is expected to continue to grow > Adient’s future growth is expected to continue outpace industry growth ‒ Adient has high and increasing market
Slide 41: Financial Strength Expected to Be Continued – Margin
Financial Strength Expected to Be Continued – Margin Adient is expected to continue maintain sustainable margin with sales growth > Advanced & standardized operating systems in place to drive operational improvements 6 Sigma Operational BBP AMS Systems/ Tools VA/VE KAIZEN > Operational flexibility w
Slide 42: Financial Strength Expected to Be Continued – Dividends
Financial Strength Expected to Be Continued – Dividends Strong and Growing Dividends Increasing Equity Well Capitalized Income to Adient Balance Sheet Top Line Sales Strong Margin Growth Performance China Business Review / June 28, 2017 42 Adient – Improving the experience of a world in motion
Slide 43: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China market overview ˃ Adient in China ˃ Adient’s unconsolidated financial strength ˃ Innovation ˃ JV overview ˃ Panel discussion China Business Review / June 28, 2017 43 Adient – Improving the experience of a world in motion
Slide 44: Agenda: Driving Technology & Innovation in China
Agenda: Driving Technology & Innovation in China ˃ The Race for Autonomous & Electric is on ˃ Industry Trends and how Adient is ahead of the game – Short-term – Mid-term – Long-term ˃ Adjacent markets China Business Review / June 28, 2017 44 Adient – Improving the experience of a world in motion
Slide 45: Innovation & Technology is what drives us forward
Innovation & Technology is what drives us forward Innovation will be a significant driver of our global growth. We will surprise and delight our customers globally, introducing our innovative products at the world's major automotive shows. China Business Review / June 28, 2017 45 Adient – Improving
Slide 46: The race for electric and autonomous is on
The race for electric and autonomous is on ... and the paradigm shift is already underway GM to start autonomous vehicle manufacturing and testing in Michigan China pushes for homegrown driverless cars Tesla Is Testing Self-Driving Cars on California Roads Autonomous car startup NIO unveiled its sel
Slide 47: OEMs start announcing market entry dates for autonomous vehicle models
OEMs start announcing market entry dates for autonomous vehicle models ... with increasing dynamics Level 5 Level 4 SAE autononmous level * Other autonomous driving projects Timing / level not identified: Level 3 Nissan pilot w/Uber Infiniti pilot w/Lyft Other Chinese OEM working on AV technology_ L
Slide 48: Mid-term, requirements will focus on new seat functionalities
Mid-term, requirements will focus on new seat functionalities and convenience content for passenger seating Mid-term Trends: (Start-of-production 2022-2025) > Autonomous level 3 (partial automation) > Increase of full electric with increasing mileage range > Seating functionality in 1st, 2nd and 3rd
Slide 49: Long-term, autonomous mobility will open new opportunities
Long-term, autonomous mobility will open a vast spectrum of new opportunities for the seating and interiors business Long-term Trends: (Start-of-production 2025-2030) > Autonomous level 4 & level 5 > Full electric vehicles, fast charging, high mileage range > Range of sophisticated seating functiona
Slide 50: Global industry trends ask for new design solutions in seating
Global industry trends ask for new design solutions in seating Global Industry Trends Implications on seating Changes in vehicle architecture & power ˃ •Safety Safety management ˃ Electrification – Light-weight •– Electrification Slim & lightweight – Low block height •– Slim Connectivity & lightweig
Slide 51: Adient innovation domains are aligned to the customers' needs
Adient innovation domains are aligned to the 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 experien
Slide 52: Concept design proposals for EV and AV technology
Our concept design proposals outline innovative functionalities with multiple integration capabilities for EV and AV technology > Low block (H point) dimension for electric vehicles > Baseline belt integrated seat > Powered seats with multi-function adjustment > New generation of power adjuster/tran
Slide 53: China has a strong case to become a pioneer in autonomous mobility
China has a strong case to become a pioneer in autonomous mobility Globally, the technology is (almost) ready > Sensors > Motors / Actuators > Seating Functionality & Convenience > Advanced Safety Systems are WIP Autonomous & Electric technology enablers … … and road blocks: > Legislation / regulati
Slide 54: Three major mobility models driving adoption
New technologies and changing consumer behaviors will converge to drive the adoption of three major mobility models China 1. Shared autonomous 2.2. Owned autonomous 3. „Traditional/vintage“ autonomous Where > Mega cities (China) / congested areas > Medium cities / long-distance driving > Outside of
Slide 55: Global Product Development network
Adient’s global Product Development network -with industry leading capabilities in China- delivers excellence in product design Global capabilities to deliver excellence in product design – while understanding regional market requirements. Around the globe as well as in China > 4,500 Engineers > 1,3
Slide 56: Global Tech Centers drive technology leadership in China market
Our Global Tech Centers drive technology leadership in China market by integrating our JV partners deeply into the global network Plymouth Global Tech Centers Fully owned (USA) Joint Venture Burscheid (Germany) Changchun Kaiserlautern (CFAA) (Germany) 350 engineers Solingen Shanghai (Germany) (AYM)
Slide 57: Shanghai Auto Show showcase of capabilities
At the Shanghai Auto Show, we showcased our capabilities to win in China‘s growing content market – in the short/mid, and long-term China Business Review / June 28, 2017 57 Adient – Improving the experience of a world in motion
Slide 58: China's short-term & mid-term trends translate into growth opportunities
China‘s short-term & mid-term trends translate into significant growth opportunities for Adient 1. 2. 3. SUV segment Increasing safety Electrification content growth standards in China EV / Plug-in ˃ Functionality with mechatronics ˃ Local brands with global safety ˃ Light-weight / hybrid structures
Slide 59: RECARO's portfolio drives content penetration
RECARO’s renowned and innovative portfolio drives content penetration in China from three angles Light-weight: RECARO brand : RECARO aftermarket: Innovative composite structures, “China Luxury” ultimate comfort High-performance sports seats e.g. carbon fibre experience solutions for large variety of
Slide 60: China CV market: heavy & medium duty truck seating
In the China CV market, we will capture share with our heavy & medium duty truck seating capabilities Adient is well positioned to capture share in heavy truck seating > Rapidly growing in Europe > Low-cost experience based Entering the HC market in China: on India (Tata) > Unique capabilities in Ch
Slide 61: Competitive advantage in aerospace adjacent market
In adjacent markets, our strong competencies translate into competitive advantage for the Aerospace industry By leveraging our global expertise in automotive seating and interiors, we will raise the bar on aviation passenger experience, and provide competitive advantage, in terms of > Comfort & craf
Slide 62: Innovation & Product Development - Summary
Innovation & Product Development - Summary > Adient’s global Technology & Product Development capabilities drive our growth opportunities in China, while we execute on industry-leading product design for global and local customers, jointly with our Joint Venture partners. > Short-/mid-term, we will
Slide 63: China Joint Ventures
China Joint Ventures 1. YFAS 2. AYM 3. Global YFAI 63
Slide 64: Yanfeng Adient Seating (YFAS) Company Overview
Yanfeng Adient Seating (YFAS) Company Overview 2017
Slide 65: Equity Structure
Equity Structure Founded Time: 18th Dec. 1997 Registered Capital: 445 million RMB Shanghai Detroit* *ADIENT Global HQ Detroit, Michigan, USA Renovation to be completed by late 2018 or early 2019 65
Slide 66: Business Performance
Business Performance The largest automotive seating supplier in China, supporting almost all major automakers in differentiating their vehicles through superior quality, technology and performance. 29.1B 18,000 ~31% Sales revenue in CY2016 Highly engaged employees, incl. Market share in passenger ve
Slide 67: Product Mix
Product Mix Trim Complete Seat Headliner Headrest Foam Sun Visor Structure 67
Slide 68: Milestone
Milestone Established Shanghai Yanfeng Johnson Controls Seating Co., Establish Wuhu JCYH Ltd. • YFJC TC nominated as • SAIC SOP in Anting JIT • SGM SOP in Kangqiao JIT municipal level technical center • Establish 1st JV- CQYFJC • Establish Guangzhou DFJC • Establish Hefei YHJC SVW SOP in Anting JIT
Slide 69: Customer Mix
Customer Mix Domestic Key Customers Complete Seat & Components Overseas Customers Components Europe: Other operational income, 2.0% Export, 3.8% Asian OEMs, 7.7% EU OEMs, 29.2% America: Asia(excl. China）: Chinese OEMs, 24.3% US OEMs, 33.1% PIP HR Trim Overhead System Seat Structure 69
Slide 70: New SOP Model
New SOP Model Roewe i6 Roewe RX5 Peugeot 5008 Chevrolet Equinox Buick NewGL8 SVW Teramont DF Nissan New LIVINA Skoda Kodiaq Zhengzhou Nissan CEFIRO 70
Slide 71: Buick New GL8
Buick New GL8 YFAS AYM • 9 Patents Authorization & Applied • Manual recliner: L3000 • 3 Patents in Process • Power recliner : T2000 • ABTS Seat • Manual/ Power height adjuster • Long Travel Floor Rail • Leg support : Tilt 2000 • Full Size Power Leg Support • Low Process Molding Back Panel • Side Cup
Slide 72: Global Footprint
Global Footprint Subsidiaries 63 No. of Plant 80 Complete Seat 37 Trim 4 Seat Structure 12 Headrest 2 Foam 17 Overhead System 8 Overseas Plant 1 Thailand Headrest Front Office 2 America , Germany 72
Slide 73: Manufacturing Capability
Manufacturing Capability We have the manufacturing capability from seat components to complete seat, covering the entire automotive seating value chain 73
Slide 74: Manufacturing Capability - JIT
Manufacturing Capability - JIT Match detection online Robot automated unloading ASRS Robot automated Backrest press machine Automated infrared tightening online heating Automated receipt Automated select Automated loading Information system Process data information collection and control Establishme
Slide 75: Manufacturing Capability – Seat Structure
Manufacturing Capability – Seat Structure We have manufacturing capability with high automation, flexibility, modularization and systemization level to ensure our seat frame products competitiveness 75
Slide 76: Manufacturing Capability – Soft Trim
Manufacturing Capability – Soft Trim Three-Mould Foam Production Chengdu 30 Station LF line Automated Blending System Preassemble headrest kitting in Line home made sequence NON PIP Headrest Production Line Riact Headrest Assembling Line NC leather cutting machine with auto scan & auto nesting & thr
Slide 77: Management System
Management System QS9000 TS16949 VDA6.1 OSHAS BBP SAP 18000 1998 1999 2001 2001 2003 2005 2009 2013 2015 GB/T ISO ISO/IEC 29490 QAD BOS 14000 17025 TSO 27001 6 Sigma BBP Management AMS Systems VA/VE KAIZEN 77
Slide 78: Manufacturing Sustainability
AMS YFAS ME Model Our Mission Achieve Manufacturing Excellence One Yanfeng Adient Way of manufacturing to Improve Manuf./Logistics Man./IT/People Ability attain world class performance. We are Knowledge Management & Team Collaboration engaging employees, driving manufacturing Manufacturing & Managem
Slide 79: Quality Achievements - 2016
Quality Achievements - 2016 Adient SVW Chery Best Material Control Excellence Development Award Best Supplier FY17 MEBP Summit FBAC DPCA JAC Best Supplier Best Supplier General Manager Award New Model Production SAIC GM Commitment Award DF Renault M4 Great Supplier Best Supplier
Slide 80: YFAS Tech Center Footprint
YFAS Tech Center Footprint Global Onsite Office YFAS Tech Center Shanghai – YFAS Established 1997 Headcount: 663 Avg. experience: 8 years Seating Exp: 5 years Engineers: 540 NA Office Euro Office Expats: 6 Established 2015 Established 2012 SMTE: 22 Regional Tech Center Shenyang Test Lab Established
Slide 81: YFAS Tech Center H/Q - Capability
YFAS Tech Center H/Q - Capability We have the full complete seat and component engineering capability: complete seat package; the design of component part, mechanism, soft trim…; Prototype Building / Mini JIT; Test Lab; Benchmarking; Advanced Engineering; Industrial Design; Comfort Simulation & Deve
Slide 82: Technical Center – Bench Mark
Technical Center – Bench Mark • Go-Bench System • Sample part library • Tear down analysis • Share data globally Shared Database with EU/JP/NA Teardown Analysis of Seat Systems Sample Part Library for Reference 82
Slide 83: Technical Center - Studio
Technical Center - Studio • Customer oriented studio • Creative styling design • Craftsmanship process • 3D CAD/CAID systems Customer Oriented Studio Creative Styling Design VR Review Stage Craftsmanship Process Color & Material design Comfort STO Design 83
Slide 84: Technical Center - Testing
Technical Center - Testing • 4,500 m2 Area • 84 Staffs • Got global OEM certification - GM / VW / PSA / DAIMLER… • All CS & Component Test • Regulation/Safety/Sled/Comfort/Material/NVH Test All Seat Test programs Sled Test Regulation/Safety Static Load, Comfort Material Test, CMM Semi-anechoic room
Slide 85: Technical Center – Mini JIT
Technical Center – Mini JIT • 3,500 m2 Area • 70 Staffs • Assembly/ Foam/ Trim/ Frame Prototype (ED&DV Capability) • Quality Inspection • Reverse Engineering Foam CNC Trim Cutter 3D Scanning Simulated JIT Line Welding and Pressing Faro Arm H point 85
Slide 86: Innovation
Innovation • Innovation management Platform • Standardize innovation project management • Technology Development Trends& Roadmap • Improve Innovation Culture Innovation management platform Technology Development Trends & Roadmap Innovation projects management & development Innovation Culture improve
Slide 87: Global Program Sharing and Communication
Global Program Sharing and Communication Smart Board Global EPIC/PLM/TcAE/EBP System Global EPIC/PLM/E-room Load in YFAS Data Base/EBP Obeya Room Engineer Onsite Support 87
Slide 88: Culture & Responsibility
Culture & Responsibility Together with Adient program Blue Sky, YFAS encourage employees to support charities, for example, a book drive, environmental protection, helping poor students for further education etc. We hope to cultivate the sense of responsibility and leadership ability of employees by
Slide 89: Vision and Mission
Vision: To be the excellent supplier of automobile component in the world, to commit ourselves to a more comfortable, safe and sustainable world. Mission: Continually exceed our customers’ increasing expectations.
Slide 90: China Joint Ventures
China Joint Ventures 1. YFAS 2. AYM 3. Global YFAI 90
Slide 91: Adient Yanfeng Seating Mechanism Company Overview
Adient Yanfeng Seating Mechanism Company Overview
Slide 92: AYM Overview
AYM Overview Partnership 50% 50% Company Name Adient Yanfeng Seating Mechanism Co., Ltd Formation Investment JV Contract Signed: 9th.Sept 2013 Total Investment: 900M RMB (143M USD) Formation: 19th.Dec 2013 Registered Capital: 300M RMB (48M USD) Headcount : 2,577 92 AYM Overview: June 2017
Slide 93: Our Mission
Our Mission We will be the world-class automotive mechanisms supplier through leadership in cost, quality, launch execution, and customer satisfaction. We will leverage our capabilities to drive growth, both within and beyond the automotive industry. 93 AYM Overview: June 2017
Slide 94: AYM Milestones
AYM Milestones JV contract signed on AYM Kangwei Campus AYM Changshu Subsidiary Company name and LOGO AYM Changshu Plant 13th.Sept 2013 and formally Opening Ceremony 6th.Feb formed on 24th.March changed in May 2017 Opening Ceremony 2018 formed on 19th Dec 2013 2013 2015 2017 2017 2018 2014 2016 2017
Slide 95: Five Year Marker
Five Year Marker INTEGRITY OPERATIONAL GLOBAL GROWTH PEOPLE AND LEADERSHIP We have a passion for winning but at EXCELLENCE Ensure Changshu Plant Building to fit Increase knowhow in teams all times will act with unquestioned Enforce strong safety mindset the timing needs Improve employee engagement a
Slide 96: Our OEM and Tier 1 Customers
Our OEM and Tier 1 Customers OEM Customers – Global/ Local Brands Tier One – Local /Oversea Other China North APEC 7% 25% America 8% 34% North Direct Customer OEM Region America Location 23% China Europe 62% 23% APEC 18% 96 AYM Overview: June 2017 * Data from 2016 ABP
Slide 97: Sales Overview
Sales Overview Unit: 100Mil RMB 60 50 40 Recliner $ 487M 30 $427M 19 % Track $ 308M 39 20 % $ 253M 22 % Adjuster & 10 Lock 0 2013 2014 2015 2016 2017 2020 Sales by Product (%) 2013 2014 2015 2016 2017 Forecast Recliner 40% 42% 41% 39% 41% Sales growth rate expected Track 31% 30% 31% 32% 33% to be hi
Slide 98: Volume & Market Share Overview
Volume & Market Share Overview Volume Overview Market Share 2016 Unit: Mil Track Pcs 37.1 12% AYM 40.0 33.5 22% 26.2 Other 30.0 14.0 19.3 20.0 8.2 11.4 Growth Rate 88% 78% 10.0 5.8 expected to be higher than Track Recliner - Market Rate 2013 2014 2015 2016 2017 2018 2019 2020 Actual Actual Actual Ac
Slide 99: Organization Chart
Organization Chart Executive Committee Standing General Manager Party Secretary Deputy GM Jim Hawkins &Union Chairman Ni Jiawen Operations Operations Manufacturing TC Director Finance Human Resource Recliners/FB Track/Stamping Engineering Stefan Josten Tony Xu Chu Yonggang Qian Cheng Yu Caixia Zhang
Slide 100: Technique Center Overview
Technique Center Overview AYM Tech Center is one of Adient global AYM EOS system flow Tech Centers with more than 150 employees. Capability • Core products development and support • Mechanisms Application Support • Series life support • Full prototype capability • Product Testing and FEA capability
Slide 101: Function Test Lab
Function Test Lab AYM Function Lab is global test lab with full mechanism test capability with 25 employees. Capability • Test Equipment based on Adient Global Standard Strength Test Life Cycle Test QTY 3 QTY 21 • 11 Engineers, 14 Technicians • Key employees trained in Adient Global Test Center • In
Slide 102: Manufacturing Engineering Center of Competence
Manufacturing Engineering Center of Competence (CoC) AYM Manufacturing Engineering Dept. cover the process of fine blanking, heat treatment, stamping, E-coating, welding, assembly. Capability • Fine blanking and heat treating Welding Heat Treatment • Track stamping QTY 43 QTY 3 • E-coating painting
Slide 103: Tool Shop
Tool Shop AYM Tool Shop specialized in fine blanking and high precision stamping tools. High-Speed Milling CNC Grinding EDM Capability • 11 engineers, more than 60 technicians • High precision machining capability • Complete new fine blanking and track profile tool manufacturing Wire Cutting CNC • T
Slide 104: Recliner Value Stream Map (VSM)
Recliner Value Stream Map (VSM) Fine Blanking Heat Treatment Assembly Suppliers Laser Welding Testing Customers Small parts, Large parts 250T to 880T 16 Lines Qty 36 and Air quenching • 7 Fine blanking presses from 250T to 880T, full cleaning and finishing capability • Heat treatment Small part line
Slide 105: Track Value Stream Map (VSM)
Track Value Stream Map (VSM) Blanking Stamping Sub Assembly Assembly Suppliers E-coating Testing Customers 250T to 300T 8 Lines 30 Line 13 Lines • Blanking Steel from Bao Steel and Europe • 3 blanking line. Latest generation with servo drive • Painting using thin film pre-treatment • Track Assembly
Slide 106: Operational Excellence
Operational Excellence Design and Development of LEAN Direction — AMS Applications Level 3 Business Management Systems LEAN Logistics AGV are operation for steel coil delivery with improvement in safety. ISO/TS 16949 Small Train feed material Certificate from “supermarket” to the lines and to finish
Slide 107: Product Portfolio – Overview
Product Portfolio – Overview Recliner Adjuster Track Lock 107 AYM Overview: June 2017
Slide 108: Product Portfolio – Recliner
Product Portfolio – Recliner 3000 Series Recliner L3000 series • Light weight (-25% compared to the T2000 disc) Adient Latest • Optimized package Products fully • Superior load capability: best-in-class Strength/Weight Ratio • Three load classes: ≥2000Nm;≥2500Nm; ≥4000Nm localized in AYM T3000 serie
Slide 109: Product Portfolio – Track
Product Portfolio – Track Joint Developed between Adient AYM Developed Products Targeting Adient Latest Products fully localized in AYM & AYM Growth & Emerging Market Track 3000 Series Track 2000 A GTS Track • Consistent manual and power profile • Consistent manual and power profile, including • Con
Slide 110: Product Portfolio – Adjuster
Product Portfolio – Adjuster Power Height Adjuster PHA3000 • Consistent manual and power profile, including full comfort Power Height Adient Latest • EMC capable 5+based on motor Adjuster HA3000 • High performance with assistant spring Products fully Manual Height Adjuster MHA3000 localized in AYM M
Slide 111: Product Portfolio – Lock
Product Portfolio – Lock Lock 3000 Series • Weight reduction compared to Lock 2000® : -25% (30 kN load class) • Core mechanism package reduction compared to Lock 2000: -30% (30 kN load class) Lock 3000 Series • Integrated inversion of actuation direction (parallel actuation Adient Latest possible) •
Slide 112: Company Footprint
Company Footprint 1 Changshu 常熟市 2 AYM Kangwei Campus Changshu, located in China • Headcount : 2,577 Jiangsu Province, possess a • Area：43,346 m2 unique geographical advantages. It takes 120 min’s drive from Changsu to 1 2 Shanghai. And it is 130 Km between two AYM plants. AYM Changshu Subsidiary •
Slide 113: Plant Layout – Shanghai – Kang Wei Plant
Plant Layout – Shanghai – Kang Wei Plant Factory Land Building Products (M2) (M2) Fine blanking Heat treatment Building 1 10,883 20,635 Painting Profile stamping Track 2000 Asymmetric Track Adjuster Track LW Gemini Track Building 2 Recliner 32,463 50,025 Painting DR2K Heat Treatment T/L 2000 T/L 300
Slide 114: Plant Layout – Changshu Campus
Plant Layout – Changshu Campus Building Function Space(M2) Building 1 Track/Transmission Stamping, 81,800 (AYM) Painting, Assembly Utility Buildings YFAS Building 2 Structures Metal Welding & Stamping 26,900 (YFAS) Office AYM Office (2 Floors) 7,700 Space Reserved Building Track and VTA manufacturin
Slide 115: Thank you!
AAYM Thank you! NNNNNN NNNNNN NNNANN NNNNNN NNNNNN NNNNNN NNNNANN NNNNANN NNNANN NNNNNN NNNNANN NNNANN NNNNANN VNNNNANN NNNNANN NNNNANN NNNNNN NNNANN NNNNNN NNNNNN NNNNNN NNNNNN NNNNANN VNNNNANN NNNNNN NNNNANN NNNNNAN NNNNNN NNNNANN NNNNNN NNNNANN NNNNNN NNNNNN NNNANN NNNNNN NNNNNN NNNNANN NNNNNN NN
Slide 116: China Joint Ventures
China Joint Ventures 1. YFAS 2. AYM 3. Global YFAI 116
Slide 117: YFAI will continue to keep the leading position in global automotive interior market
YFAI will continue to keep the leading position in the global automotive interior market with a share growth Interior Market Share 2017 YFAI 13.0% Other Faurecia Antolin In-house IAC Toyota Boshoku Mobis Source: YPS as of March 16, 2017 Kasai Seoyon China Business Review / June 28, 2017 117 Adient –
Slide 118: Diversified Customer Base, Matching Global Footprint
Diversified Customer Base, Matching Global Footprint Top Customers by Region APAC N. America No Customer Lost Since Establishment Europe China Business Review / June 28, 2017 118 Adient – Improving the experience of a world in motion
Slide 119: 113+ Global Locations
113+ Global Locations Footprint of the facilities highly matched with customers 18 33,000 1 Countries Global employees Seamless global network Americas Europe & South Africa Asia Pacific 28 Locations 15 Locations 70 Locations around 12,000+ Employees around 8,000+ Employees around 13,000+ Employees
Slide 120: Megatrend Impact on Interior
Megatrend Impact on Interior Interior will become higher priority in terms of car consumers differentiations. Smart surfaces and included core product functions, are under development with most customers. New players from West Coast disrupts current car industry with approaches like E-car tech., sel
Slide 121: 2017 Finance Highlights - YFAI
2017 Finance Highlights - YFAI > YFAI will continue to deliver strong results and strengthen it’s market position > Significant business wins driving top line growth > Strong backlog will result in revenue growth in excess of industry > Market share increasing +1-2% over 2016 levels and expected to
Slide 122: Thank you
Questions? Thank you China Business Review / June 28, 2017 122 Adient – Improving the experience of a world in motion