Adient Plc · NYSE:ADNT
Adient — Merger or Acquisition (March 2021)
8 slides from Adient's merger presentation, Mar 12, 2021
Slide 1: Adient announces strategic transformation in China
Adient announces strategic transformation in China March 12, 2021 Exhibit 99.2
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 - Transactions overview - Rationale - Use of proceeds & pro forma Adient - Q & A Douglas Del Grosso President and CEO Jeffrey Stafeil Executive VP and CFO
Slide 4: Overview of transactions
Overview of transactions Adient and Yanfeng Automotive Trim Systems Company Ltd. (YF) will end their Yanfeng Adient Seating Co., Ltd. (YFAS) JV in China. Adient will sell its 49.99% interest in YFAS to YF for ~$1.2B. Adient will acquire certain assets of YFAS – its 50% ownership of Chongqing Yanfeng
Slide 5: Post transactions, Adient China business projected to have ~$4.5B in sales
Post transactions, Adient China business projected to have ~$4.5B in sales and extensive customer and geographic coverage Changchun Hangzhou Liuzhou Foshan Guangzhou Wuhan Nanchang Chongqing Changsha Chengdu Hefei Shenyang Beijing Dalian Langfang Tianjin Daqing Ningbo North South West & Central Xi’a
Slide 6: Rationale
Rationale Aligns with China auto industry trend in post-JV era Global manufacturers such as Tesla, VW, BMW have moved towards majority-owned business model and away from JV model after China abolished its JV requirements in 2018 with OEMs Similar trend taking place with leading Chinese manufacturers
Slide 7: Use of proceeds / pro forma Adient
Consolidated sales expected to increase annually by ~$700M - $800M Unconsolidated sales expected to decline annually by ~$3.5B - $4.0B Consolidated EBITDA expected to increase annually by ~$90M - $100M Equity income expected to decline annually by ~$155M Net leverage target between 1.5x – 2.0x (depe
Slide 8: Q & A
Title / Date / Public-Internal-Confidential-Restricted Q & A