Slide 1: FY 2023 First Quarter Earnings Call
FY 2023 First Quarter Earnings Call February 7, 2023 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” withi
Slide 3: Agenda
Agenda > Introduction Mark Oswald VP, Treasurer & Investor Relations > Business Update Doug Del Grosso President and CEO > Financial Review Jerome Dorlack Executive VP and CFO > Q&A FY2023 First Quarter Earnings Call Adient – PUBLIC Feb. 7, 2023 3
Slide 4: Executing Adient's FY23 plan
Executing Adient’s FY23 plan Remaining focused on delivering the company’s commitments > Adient is successfully executing actions within our control (i.e., commercial settlements Key Q1FY23 with customers, reducing costs, protecting cash) which enabled us to achieve Q1 financial Financial Metrics re
Slide 5: Building a sustainable future
Building a sustainable future The details of our many ongoing ESG initiatives — as well as our fiscal year 2022 accomplishments — are included in our recently published 2022 Sustainability Report. The report highlights, among many things, how Adient is: > Reducing its scope 1 and 2 absolute greenhou
Slide 6: Strengthening our leading position and solidifying supplier of choice status
Strengthening our leading position and solidifying supplier of choice status > Adient was awarded the Toyota Rav4 replacement business in China. This is a key win in our Adient supplied China region with a key customer, further solidifying Adient’s supplier of choice status. complete seats or > NIO’
Slide 7: In process and upcoming launches
In process and upcoming launches > Adient’s unwavering focus on day-to-day execution continues to underpin the company’s successful launch performance. GTMC bZ4X APAC > As expected entering FY23, certain launches with higher complexity are moving through the launch curve. The team continues to execu
Slide 8: FY2023 operating environment
FY2023 operating environment > Entering FY23, Adient expected the overall operating environment to improve vs. FY22, including the Regional Environments successful navigation of various external obstacles Americas > Those expectations have not changed -- however, the underlying assumptions around th
Slide 9: Financial Review
Financial Review FY2023 First Quarter Adient – PUBLIC
Slide 10: Q1 FY2023 Key Financials
Q1 FY2023 Key Financials As Reported As Adjusted $ millions, except per share data Q1 FY23 Q1 FY22 Q1 FY23 Q1 FY22 B/(W) Consolidated $ 3,699 $ 3,480 $ 3,699 $ 3,480 6% Revenue EBIT $ 114 $ 40 $ 135 $ 61 NM Margin 3.1% 1.1% 3.6% 1.8% EBITDA N/A N/A $ 212 $ 146 45% Margin 5.7% 4.2% Memo: Equity Incom
Slide 11: Q1 FY2023 Revenue: Consolidated and Unconsolidated Sales
Q1 FY2023 Revenue: Consolidated and Unconsolidated Sales Regional Performance Consolidated sales (consolidated sales y-o-y growth (vs. Q1FY22) by region) 1, 2, 3 Q1 S&P $430 Q1 Production Americas 15.0% 7.8% $(211) EMEA 8.9% 11.7% $3,699 Asia 16.9% 0.1% Note: China 6.5% -6.1% $3,480 Note: Asia excl.
Slide 12: Q1 FY23 Adjusted-EBITDA
Q1 FY23 Adjusted-EBITDA Q1FY23 adjusted EBITDA of $212M, up $66M y-o-y, was primarily driven by: $24 $11 > Volume and mix, which benefited the quarter by ~$59M as production $59 $ in millions $(25) improved, as expected $(3) > Improved business performance of ~$24M, driven by: $212 $146 > Improved n
Slide 13: Cash flow
Cash flow Free Cash Flow Key drivers impacting FY23 FCF: (+) Higher consolidated y-o-y earnings (driven (in $ millions) Q1 FY23 Q1 FY22 by improved volumes and incrementally Adjusted-EBITDA (Excl. Equity income) $ 185 $ 112 improving production environment) (+) Dividend 12 2 (+) Lower level of inter
Slide 14: Debt and capital structure
Debt and capital structure Net Debt ($ in millions) 12/31/2022 December 31 September 30 Cash & Debt Profile Amount (in $ millions) 2022 2022 Cash & Cash Equivalents $ 901 Cash $ 901 $ 947 ABL Revolver, incl. FILO due 2027 (1) - Term Loan B due 2028 985 Total Debt (2) 2,640 2,578 Total Secured Debt 9
Slide 15: FY23 Outlook – key financial metrics
FY23 Outlook – key financial metrics > FY23 guidance updated to reflect Adient’s YTD results through Consolidated sales ~$15.0B Prior: ~$14.7B Dec. 31, 2022 and current market conditions (including revised production forecast and the positive impact of FX on sales and Adj.-EBITDA ~$850M Adj.-EBITDA)
Slide 16: Appendix and financial reconciliations
Appendix and financial reconciliations FY 2023 First Quarter Adient – PUBLIC
Slide 17: Q1 FY23 Adjusted-EBITDA: Americas
Q1 FY23 Adjusted-EBITDA: Americas Q1FY23 of $69M, up $60M y-o-y, driven by: > Improved volume and mix of ~$34M resulting from modestly improving customer production > Improved business performance of ~$20M driven by: $ in millions > Increased net material margin performance $69 $6 $1 of ~$26M, aided
Slide 18: Q1 FY23 Adjusted-EBITDA: EMEA
Q1 FY23 Adjusted-EBITDA: EMEA Q1FY23 of $28M, down $15M y-o-y, driven by: $ in millions > Improved SG&A performance of ~$4M, including certain one-time benefits associated with minor asset sales > Higher equity income of ~$4M resulting from $2 improved volumes at our unconsolidated JVs $4 $4 > Incre
Slide 19: Q1 FY23 Adjusted-EBITDA: Asia
Q1 FY23 Adjusted-EBITDA: Asia Q1FY23 of $138M, up $24M y-o-y, driven by: > Favorable volume and mix impact of ~$23M, $ in millions driven primarily by the improved production $3 environment $18 > Improved business performance of ~$18M, $23 $138 driven by $(12) $114 $(8) > ~$20M of improved net mater
Slide 20: 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 21: Non-GAAP Reconciliations - EBIT, Adj.-EBIT, Adj.-EBITDA, and Adj.-Equity Income
Non-GAAP Reconciliations - EBIT, Adj.-EBIT, Adj.-EBITDA, and Adj.-Equity Income Three months ended December 31 2022 2021 (in $ millions) GAAP Adj. Adjusted GAAP Adj. Adjusted Net sales $ 3,699 $ - $ 3,699 $ 3,480 $ - $ 3,480 Cost of sales (1) 3,468 (1) 3,467 3,307 (1) 3,306 Gross profit 231 1 232 17
Slide 22: Non-GAAP Reconciliations - Adjusted Net Income and Adjusted EPS
Non-GAAP Reconciliations - Adjusted Net Income and Adjusted EPS Adjusted Net Income Adjusted Diluted EPS Three Months Ended Three Months Ended December 31 December 31 (in $ millions) 2022 2021 2022 2021 Net income (loss) attributable to Adient $ 12 $ (54) Net income (loss) attributable to Adient $ 0
Slide 23: Non-GAAP Reconciliations - Adjusted Income before Income Taxes and Effective Tax Rate
Non-GAAP Reconciliations - Adjusted Income before Income Taxes and Effective Tax Rate Adjusted Income before Income Taxes Three Months Ended December 31 (in $ millions) 2022 2021 Income (loss) Income (loss) before Income Tax impact Effective before Income Tax impact Effective Taxes tax rate Taxes ta
Slide 24: Non-GAAP Reconciliations - Unconsolidated sales fiscal year 2022 reconciliations
Non-GAAP Reconciliations - Unconsolidated sales fiscal year 2022 reconciliations Unconsolidated Sales (FX adjusted) (in $ millions) Unconsolidated Net Sales Q1 Q2 Q3 Q4 FY2022 As reported $ 1,208 $ 926 $ 876 $ 1,056 $ 4,066 FX Impact (138) FX Adjusted 1,070 FY2023 First Quarter Earnings Call Adient
Slide 25: Segment Performance
Segment Performance Q1 2022 Q1 2023 Corporate/ Corporate/ Americas EMEA AP Consolidated Americas EMEA AP Consolidated Eliminations Eliminations Net Sales 1,498 1,230 784 (32) 3,480 1,724 1,182 821 (28) 3,699 Adjusted EBITDA 9 43 114 (20) 146 69 28 138 (23) 212 Adjusted Equity Income (1) (1) 36 - 34