Adient Plc · NYSE:ADNT
Adient — Investor Day (September 2016)
95 slides from Adient's investor day presentation, Sep 15, 2016
Slide 1: Adient Investor Meeting
Adient Investor Meeting September 15, 2016
Slide 2: Forward looking statements
Forward looking statements 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” w
Slide 3: Meeting agenda
Meeting agenda Bruce McDonald Byron Foster Eric Mitchell Chairman & CEO, Adient EVP, Adient EVP, Adient > Introduction to Adient > Business > China / JV overview overview Detlef Juerss Jeffrey Stafeil Q&A VP & GM Global EVP & CFO, Adient > All Engineering, Adient > Financial > Product / overview Tec
Slide 4: For many years Automotive was the growth engine of Johnson Controls
For many years Automotive was the growth engine of Johnson Controls Revenue YFAI Hammerstein, 33 Interiors Keiper, Recaro JV 30 ˃ Recent JCI multi-industrial strategy constrained investment in automotive Michel Thierry 27 JCIM JV 24 Sagem 21 Ikeda Becker Bussan 18 Sale of Yanfeng Electronics 15 JV 1
Slide 5: Automotive spin-off
Automotive spin-off Principles > Establish Automotive to be successful ‒ Leverage below JCI ‒ Limited pension liabilities ‒ Automotive not burdened with stranded corporate costs Minimize TSA’s > Cost of separation largely incurred by JCI > Minimal separation investment in 2017+ BECOMING ADIENT I Fin
Slide 6: Introducing Adient
Introducing Adient Key changes going forward Today Future > Part of a global multi-industry company > Focus on automotive seating ‒ Leaner cost structure > Improving business performance > Expect 200 bps of margin improvement with double-digit EPS growth over the mid-term > Capital allocated to supp
Slide 7: Timeline of key events
Timeline of key events Distribution date and day 1 trading for JCI board approves “When issued” trading “ADNT” Adient spin-off October 17-28 October 31 September 8-9 September October September 2 September 15 October 19 Johnson Controls Adient investor Record date and Tyco merge meeting BECOMING ADI
Slide 8: 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 estimate 230+ 25+ 75,000 ~$17 billion locations globally million seat highly engaged Consolidated revenu
Slide 9: Adient board of directors
Adient board of directors Current JCI Directors Adient Board of Directors New Adient Directors Julie Bushman Bruce McDonald Julie Bushman John Barth Bruce McDonald John Barth Chairman & CEO Chairman & CEO Raymond Conner Frederick Richard Goodman Raymond Conner Frederick Barb Henderson Henderson Sama
Slide 10: Adient leadership team
Adient leadership team BECOMING ADIENT I Financial analyst day I September 15, 2016 10
Slide 11: 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 12: Our values
Our values Behavior Statement Do it the right way We always act ethically, with integrity, and in a socially responsible manner. Play to win We meet our commitments, no excuses. Get it right the first time We deliver best-in-class performance in all that we do. Pick up the pace We make timely decisi
Slide 13: Adient five-year marker
Adient five-year marker Integrity Operational Excellence Global Growth People and Leadership We have a passion for winning but at We will be the cost leader in our We embrace the globalization of the Our people are our greatest asset, all times will act with unquestioned industry. We will be operati
Slide 14: Global market leader
Global market leader Adient Lear 34% Faurecia Toyota Boshoku Magna Other Adient share Includes non-consolidated revenue Source: IHS Automotive and management estimates BECOMING ADIENT I Financial analyst day I September 15, 2016 14
Slide 15: Revenue by geography
Revenue by geography Europe / Africa Americas 35% 29% 6% China 30% Asia / Pacific Source: IHS Automotive and management estimates; consolidated and unconsolidated revenue BECOMING ADIENT I Financial analyst day I September 15, 2016 15
Slide 16: Our customer portfolio closely mirrors our customers' global market share
Our customer portfolio is the envy of the industry and closely mirrors our customer’s global market share Fiat JLR 2% Other 3% 5% BMW Ford 4% 14% Volvo Key Takeaways 4% 5% > Industry leading diversification Renault, Peugeot & Citroen > By customer -- largest GM 5% 8% customer accounts for 14% of 32%
Slide 17: China
China > Early market entrant advantaged position in China through Adient Seating China strategic partnerships > Adient is largest supplier of just-in-time seating in China 10 > Operates through 17 joint ventures and 60 manufacturing locations in 32 cities > Partnerships with all major auto groups in
Slide 18: Winning with our customers
Winning with our customers 6.73 $6.0 $2.8 $5.1B booked thru August 31, 2016 3.77 $3.77 3.55 $3.55 3.28 $3.29 Consolidated $0.81 $1.86 $1.31 100% Unconsolidated JVs Sales ($Billion) $3.2 $2.48 $2.24 $1.91 2013A 2014A 2015A 2016E Source: Management estimates BECOMING ADIENT I Financial analyst day I S
Slide 19: Profitability on an upward trajectory
Profitability on an upward trajectory 9 Months FY16 Net Revenues(1) ($ in billions) $12.6 $12.9 > Excluding the impact of the Interiors deconsolidation and foreign exchange, sales increased Adj. for 2% vs. the first nine months FY15 deconsolidation of Interiors and FX > Chinese revenues (primarily
Slide 20: 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 SUV’s / MPV’s globally 101 million vehicles by 2020 > Increase in luxury /
Slide 21: Takeaway – numerous reasons Adient is a solid investment
Takeaway – numerous reasons Adient is a solid investment Market Position > Broadest and most complete range of seating products > Unparalleled customer diversity– market leadership in North America, Europe and China (unique and longstanding position in China through JV structure); support all majo
Slide 22: Meeting agenda
Meeting agenda Bruce McDonald Byron Foster Eric Mitchell Chairman & CEO, Adient EVP, Adient EVP, Adient > Introduction to Adient > Business > China / JV overview overview Detlef Juerss Jeffrey Stafeil Q&A VP & GM Global EVP & CFO, Adient > All Engineering, Adient > Financial > Product / overview Tec
Slide 23: 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 estimate 230+ 25+ 75,000 ~$17 billion locations globally million seat highly engaged Consolidated revenu
Slide 24: Complete Seat / JIT
Complete Seat / JIT > Complete Seat systems capabilities including complex logistics and supply chain management, Just-In-Time in sequence delivery, quality, craftsmanship and change management > 108 Manufacturing plants: (19) Americas, (28) Europe, (21) Japan/Korea/Southeast Asia and (40) in China
Slide 25: Trim: cut & sew and fabric
Trim: cut & sew and fabric > Market leader in integrated trim through global vertical > Full fabric processing expertise integration of fabrics and Cut & Sew > 42 Manufacturing plants: > Best-in-class design capabilities bringing differentiation to (9) Americas, (15) Europe, customer vehicle platfor
Slide 26: Foam: cushions & backs, head restraints, armrests
Foam: cushions & backs, head restraints, armrests > World leader in manufacturing seating foam, head > 44 Manufacturing plants: (11) Americas, (9) Europe, restraints, armrests and other foam products (9) Japan/Korea/Southeast Asia and (15) in China > Innovator with Pour-In-Place foam, resulting in d
Slide 27: Metals & mechanisms
Metals & mechanisms > Industry leading mechanisms solutions > Unique value proposition in the complex rear seat > Offering modular solutions which result in fewer structures segment by using simple mechanisms to parts and standardized global technologies achieve “Wow” functionality > 55 Manufacturin
Slide 28: Specialty seating, a niche growth market - RECARO
Specialty seating, a niche growth market - RECARO > Premium OEM and aftermarket car seats > Renowned brand RECARO for the automotive business > Market leading design, ergonomics quality and craftsmanship, and lightweight construction for passenger cars and commercial vehicles BECOMING ADIENT I Finan
Slide 29: RECARO's brand performance leads among competitors
RECARO’s® brand performance leads among competitors Brand performance index* RECARO 100 XLP team survey: consumers in US, COBRA 38 Japan, Germany, Consistently elected best seating brand: China “AutoMotorSport” magazine SPARCO 35 n=349 Qualified AM awareness: rank 1 RECARO Holding MOMO 23 brand rese
Slide 30: Broadest and most complete range of Seating & Interior Products
Broadest and most complete range of Seating & Interior Products Seating Seating Adient Automotive Yanfeng Global Automotive Interiors > Complete Seat / Just-In-Time > Instrument Panels Manufacturing > Floor Consoles > Front & Rear Seat Structures > Door Panels > Track, Recliner, Manual Height Adjust
Slide 31: Strong market position with twice the share of nearest competitor
Adient enjoys a strong market position with twice the share of our nearest competitor Adient Lear 34% Faurecia Toyota Boshoku Magna Other Adient share Includes non-consolidated revenue Source: IHS Automotive and management estimates BECOMING ADIENT I Financial analyst day I September 15, 2016 10
Slide 32: Global competitive market position
Global competitive market position Total Market Size 2015: $59.8 Billion > Adient is the leading player 2012–2014 CAGR 1.5% 1.5% 11.3% 1.0% globally and in every major region 2015–2019 CAGR 2.5% 2.5% 5.1% 4.7% $20.4B $14.7B $13.9B $10.8B worldwide ‒ Leading automotive seating market share in North A
Slide 33: We are the market leader across all major seating components
We are the market leader across all of the major seating components and systems Complete Seating Trim: Cut & Sew Trim: Fabric Toyota Boshoku Toyota Boshoku Toyota Boshoku Faurecia Faurecia Magna Prevent Aunde Sage Lear Lear Lear Adient Adient Adient Metals & Mechanisms Seating Foam Headrests / Armre
Slide 34: Early investment in emerging markets allowed Adient to take advantage of globalization
Early investment in emerging markets allowed Adient to take advantage of the globalization of the automotive industry Europe / Africa Americas 35% 29% 6% China 30% Asia / Pacific Source: IHS Automotive and management estimates; consolidated and unconsolidated revenue BECOMING ADIENT I Financial anal
Slide 35: Our customer portfolio mirrors our customers' global share
Our customer portfolio is the envy of the industry and closely mirrors our customer’s global share Fiat JLR 2% Other 3% 5% BMW Ford 4% 14% Volvo 4% 5% Renault, Peugeot & Citroen GM 5% 8% 32% NA 35% EU Mercedes 7% Chrysler 10% VW 10% 28% AP Nissan Honda 8% 6% Hyundai/Kia Toyota 6% 8% Based on consoli
Slide 36: We deliver a full suite of design and engineering capabilities
We deliver a full suite of design and engineering capabilities… > Product Planning > Structural Analysis > Prototype Shop > Benchmarking > Project Management > Comfort and Acoustic Lab > Consumer Research > Quality Systems > Testing incl. Sled Test > Design Studio > Purchasing > Production Process /
Slide 37: Network of world class global development centers
…through a network of world class global development centers Development Centers Plymouth (USA) Holland (USA) Neuss (Germany) Burscheid (Germany) Kaiserslautern (Germany) Remscheid (Germany) Regional Engineering Offices Solingen (Germany) Kirchheim (Germany) Sunderland (England) Torino (ltaly) Trenc
Slide 38: Building on our strong foundation toward a bright future
Building on our strong foundation toward a bright future > Global market leadership in North America, Europe and China > Unique and longstanding position in China through JV structure > Longstanding customer relationships with all major, global OEMs > Global manufacturing footprint and expertise – a
Slide 39: Meeting agenda
Meeting agenda Bruce McDonald Byron Foster Eric Mitchell Chairman & CEO, Adient EVP, Adient EVP, Adient > Introduction to Adient > Business > China / JV overview overview Detlef Juerss Jeffrey Stafeil Q&A VP & GM Global EVP & CFO, Adient > All Engineering, Adient > Financial > Product / overview Tec
Slide 40: Adient – Winning in China
Adient – Winning in China > We have nearly 45 percent market share of the seating business in China, making us the industry leader > By leveraging our market position, we expect to outpace the market, further expanding our share and strengthening our leadership > Seating in China (incl. joint ventur
Slide 41: Unique position in China through JV structure
Unique position in China through JV structure BECOMING ADIENT I Financial analyst day I September 15, 2016 3
Slide 42: Mutually beneficial China JV partnerships
Mutually beneficial China JV partnerships BECOMING ADIENT I Financial analyst day I September 15, 2016 4
Slide 43: Joint venture structure
Joint venture structure Tailored Strategy for Each JV Equity Share Strategic Plan Joint Venture Chinese Group Partner OEM partnered with Chinese Auto Group JCI Partner > Components for China & SAIC Asia Pacific Sub-partners > Regional growth YFJC 49.99% 50.01% > Low cost engineering and Chang’An Don
Slide 44: 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 auto group, based on 2016 production volume (PV) Where competitors have alliance with the auto group PV seating market share per each big auto group 4.57M units 3.39M units 2.87M units 2.00M units
Slide 45: China seating market share growth potential
China seating market share growth potential ~55% ~44% ~45% 2016 2021 Baseline Customer plan Asian OEMs Local Brands 2021E pending Additional Growth Opportunity New awards & backlog enable us to attain ~45% of share by 2021 Additional market share growth opportunity w/ Chinese and Asian OEMs Source:
Slide 46: Adient JV equity income and cash dividend summary
Adient JV equity income and cash dividend summary Cash Dividends Sources Equity Income % Conversion Paid 2011A $201 $156 77.6% 2012A $211 $143 1 67.8 Great return on investment 2013A $302 $148 1 49.0 Since 1997, invested $150M cash, received 2014A $284 $176 62.0 dividends back in excess of $1B 2015A
Slide 47: Market trends strengthening our leading position
Market trends strengthening our leading position > Increasing growth to non-Tier 1 cities > Premium segment remains robust ‒ Well positioned to grow through our JV structure ‒ Strong and growing position with Daimler, BMW, with all OEMs Audi, and Volvo ‒ Foreign OEMs adding competitive products in n
Slide 48: Yanfeng Johnson Controls (YFJC) company overview
Yanfeng Johnson Controls (YFJC) company overview 64 17,000 31% YFJC’s products Subsidiaries Employees Share of China’s are sold in 15 complete seat market countries including China Shanghai Headquarters & Technical Center Plants $4.0 B Global sales Established in 1997 and has become the industry lea
Slide 49: Yanfeng Automotive Interiors (YFAI) company overview
Yanfeng Automotive Interiors (YFAI) company overview 17 28,000 1 Countries Global Employees Seamless Global Network Global footprint of YFAI’s 100 facilities strategically overlaps with customers around the world All new business booked since Global HQ Regional HQ establishment: Tech Center $10.9B*
Slide 50: Progression of Chinese business model
Progression of Chinese business model China 3.0 strategy > Growth (market share & equity income) > Reinvent value propositions to our shareholders, customers and partners > China emerging leadership in automotive industry > Adjacent markets BECOMING ADIENT I Financial analyst day I September 15, 201
Slide 51: China global influence
China global influence BECOMING ADIENT I Financial analyst day I September 15, 2016 13
Slide 52: Key takeaways
Key takeaways > Proven history ‒ Great return on prior investments; confident in a bright future > Strong growth ‒ Market expected to grow 3-5% annually for the next decade ‒ Adient is well positioned to capture the market’s growth given its leading position and JV structure ‒ Leveraging China as a
Slide 53: Meeting agenda
Meeting agenda Bruce McDonald Byron Foster Eric Mitchell Chairman & CEO, Adient EVP, Adient EVP, Adient > Introduction to Adient > Business > China / JV overview overview Detlef Juerss Jeffrey Stafeil Q&A VP & GM Global EVP & CFO, Adient > All Engineering, Adient > Financial > Product / overview Tec
Slide 54: Improving the experience of a world in motion
Improving the experience of a world in motion 220 200 Technology drivers Full Content growth drivers in 180 Industry drivers connected autonomous seating & interiors Seating & Interior market size ($B) assisted 160 > Feature penetration into mass 140 Non- Shared mobility segments automated Electrifi
Slide 55: Our global engineering and manufacturing setup
Our global engineering and manufacturing setup We deliver scale > 4,500 engineers globally > Global advanced development, > 56% in low-cost countries engineering and execution > Customer front offices > Global platform capabilities > Low-cost country and growth regions focus > Modular core product p
Slide 56: How we contribute to fuel-efficient vehicles today
Lightweight solutions How we contribute to fuel-efficient vehicles today … > The light-weight race for steel is still on Steel > Ultra-high-strength steel and unique steel treatment Engineered > Deep expertise in integrated complete seat engineering integration > Direct integration enables significa
Slide 57: ... and are ready for the next generation
... and are ready for the next generation > CAMISMA composite structure for seat back Winner of the frame JEC Americas Innovation > Weight reduction: 40 percent lighter than Award 2015 conventional back frames „Automotive“ > Environmental and cost advantage: Efficient carbon processing reduces waste
Slide 58: Where we are heading...
Where we are heading...
Slide 59: Slide 59
Slide 60: Adient Investor Day – Product / Technology / Innovation
Adient Investor Day – Product / Technology / Innovation 8
Slide 61: Adient Investor Day – Product / Technology / Innovation
Adient Investor Day – Product / Technology / Innovation 9
Slide 62: Adient Investor Day – Product / Technology / Innovation
Adient Investor Day – Product / Technology / Innovation 10
Slide 63: Adient Investor Day – Product / Technology / Innovation
Adient Investor Day – Product / Technology / Innovation 11
Slide 64: Adient Investor Day – Product / Technology / Innovation
Adient Investor Day – Product / Technology / Innovation 12
Slide 65: The industry is shifting
The industry is shifting Trends & key questions 2020 and beyond Traditional manufacturers ... ... and the new players Industry trends > Autonomous driving > Electrification > Internet of things > Connectivity > Urbanization > Alternative propulsion > Slim & lightweight > Smart materials > Individual
Slide 66: Electrification will change the industry
Electrification will change the industry Electrification will drive changes in vehicle architecture and power management: advanced heating & cooling utilizing interiors surfaces, next generation of light-weight, seat-integrated drive-by-wire controls.
Slide 67: Autonomous Driving: From a Dream to becoming Reality
Autonomous Driving From a Dream to becoming Reality
Slide 68: Autonomous driving: from conceptual design to realization
Autonomous driving From conceptual design to realization - we are ready New players will accelerate Total Interior Sourcing Adient Investor Day – Product / Technology / Innovation 16
Slide 69: Shaping the future of automotive seating and interiors
Shaping the future of automotive seating and interiors > Globally leading mechanisms capabilities for multi-functional seat concepts > R&D into advanced materials for next- generation light-weight products Integrated controls and convenience > Advanced safety and comfort feature 360° swivel mechanis
Slide 70: New business models will demand individualized differentiators
New business models will demand for individualized differentiators Lighting Ink-jet Stitching Printing Sewing Screen Printing Embossing HF Welding BECOMING ADIENT I Presentation Title I Date 18
Slide 71: Opportunities in new markets
Opportunities in new markets Growing outside traditional auto markets West Coast Commercial New Players Vehicle Seating Railway Aircraft Seating Seating Adient Investor Day – Product / Technology / Innovation 19
Slide 72: Product / Technology / Innovation
Product / Technology / Innovation Strong, global product development network World-class capabilities The industry game is shifting – we are ready Shaping the future of Automotive Seating & Interiors Growing outside the traditional auto markets
Slide 73: Meeting agenda
Meeting agenda Bruce McDonald Byron Foster Eric Mitchell Chairman & CEO, Adient EVP, Adient EVP, Adient > Introduction to Adient > Business > China / JV overview overview Detlef Juerss Jeffrey Stafeil Q&A VP & GM Global EVP & CFO, Adient > All Engineering, Adient > Financial > Product / overview Tec
Slide 74: Adient financial overview
Adient financial overview > Financial profile ‒ ~$17bn consolidated net sales Key Metrics Expected Range > Consolidated seating Net Leverage1 1.9x ‒ ~200 bps margin improvement expected in mid-term ‒ Lower SG&A ‒ Improved performance in metals business Cash on Balance Sheet $610mm ‒ Wind down of rem
Slide 75: Historical financial performance
Historical financial performance Consolidated Revenue & YoY % Growth Adj. EBITDA2 & % Margin $22,041 $1,451 $1,406 $19,986 $20,470 $20,071 $18,776 $1,112 $1,014 $1,067 13.0% 6.4% 7.7% 6.6% 7.0% 2.4% 5.4% 5.6% 5.2% (8.9)% FY11A FY12A FY13A FY14A FY15A FY11A FY12A FY13A FY14A FY15A Decline in 2015 Sal
Slide 76: Profitability on an upward trajectory
Profitability on an upward trajectory 9 Months FY16 Net Revenues(1) ($ in billions) $12.6 $12.9 > Excluding the impact of the Interiors deconsolidation and foreign exchange, sales increased Adj. for 2% vs. the first nine months FY15 deconsolidation of Interiors and FX > Chinese revenues (primarily
Slide 77: Drivers of future earnings growth
Drivers of future earnings growth > Positive volume trends and backlog > Well positioned to capture growth in China through equity income from market leading JV Increased Profitability > Improved operational efficiencies driven by: ‒ Implementation of world-class operating system ‒ G&A reduction ‒ M
Slide 78: Earnings growth bridge
Earnings growth bridge 4 Key Takeaways > 200 bps margin improvement identified Cumulative Savings (% of Sales) > Key drivers: 3 (0.5-1.5%) ‒ Leaner cost structure +1-2% ‒ Metals integration & recovery opportunity 2 (0.5%) > Improvement expected over +2.0% +2.0% the mid-term 1 ‒ Immediate near-term i
Slide 79: Margin improvement roadmap: SG&A reduction
Margin improvement roadmap SG&A reduction SG&A as % of revenue (3-year average 1) Issue(s): 6 > Benchmark analysis indicates that Adient’s SG&A ~5.2% infrastructure is significantly higher than our closest 5 competitor, Lear > Costs associated with support of China business limits 4 ability to fully
Slide 80: Margin improvement roadmap: Metals business
Margin improvement roadmap Metals business 2011 Acquisitions ~$3B in revenue today Opportunity in 5 years Keiper CRH 1-2% opportunity One integrated business AE internal metals Issues today: > Three businesses not fully integrated > Excess capacity is preventing Adient from realizing full strategic
Slide 81: Unconsolidated joint venture financial strength
Unconsolidated joint venture financial strength Unconsolidated joint venture results - nine months ended June 30, 2016 ($ in millions) China Seating China Interiors All Other Total • China’s JVs drive Adient’s unconsolidated results Revenue $ 5,285 $ 6,295 $ 578 $ 12,158 • Double digit operating Ope
Slide 82: Adient cash flow profile
Adient cash flow profile > Strong initial free cash flow 1 ‒ Low tax rate (Irish domicile ~10-12%) ‒ Minimal working capital needs ‒ Smart reinvestment / capital expenditures (maintenance & growth) > Growing opportunity ‒ Margin / earnings growth ‒ Increasing equity income and cash dividends ‒ Lower
Slide 83: FCF Growth
FCF Growth Key Takeaways > FY17 includes: ‒ A heightened level of cash outflows (~$280M) related to restructuring Cumulative FCF ($ in Millions) initiatives ‒ Anticipated one-time expenses (~$100M) (0.5-1.5%) associated with “Becoming Adient” +1-2% ‒ Elevated CapEx of ~$75M related to IT and facilit
Slide 84: Adient JV equity income and cash dividend summary
Adient JV equity income and cash dividend summary YFJC represents ~57% of Adient Seating JV Cash Dividends Sources Equity Income % Conversion equity income and Paid ~52% of total equity income 2011A $201 $156 77.6% “Cash rich / low debt” 1 balance sheets (i.e. 2012A $211 $143 67.8 YFJC at 12/31/15 $
Slide 85: Adient debt and maturity profile
Adient debt and maturity profile Pro Forma Capitalization Detail No Near Term Maturities ($ in millions) $ Amount Coupon ($ in millions) $ 1,600 Pro Forma Cash $ 610 $ 1,500 Revolving Credit Facility ($1.5bn) due 2021 - $ 1,200 $ 1,100 New Term Loan A due 2021 1,500 LIBOR +175 $ 900 $ 800 Senior Uns
Slide 86: Limited pension and OPEB exposure
Limited pension and OPEB exposure As of September 30, 2015 ($ in millions) Pension Plan Status by Country Liabilities by Country U.S Region # of Plans Assets Liabilities Status 3% Canada 7 $ 68.0 $ 61.2 $ 6.8 Canada 11% France 5 $ 0.7 $ 13.8 $(13.1) ROW United 15% Kingdom Germany 12 $ 101.9 $ 147.5
Slide 87: Financial policy planning
Financial policy planning > Initial leverage > Dividend / share repurchase spend ‒ Net leverage of ~1.9x at spin (expected to ‒ Pay a competitive dividend in line with auto supplier peers decline materially) ‒ Modest share repurchase plan > Leverage target > Debt service ‒ Net leverage consistent wi
Slide 88: Looking forward: FY2017 guidance
Looking forward: FY2017 guidance Revenue $16.8 to $17.0 billion Adj. EBIT $1.15 to $1.2 billion (Incl. ~$380 million of E.I.) Depreciation & Amortization $400 million Interest Expense $145 million Effective Tax Rate 10 to 12% Adj. Net Income $850 to $900 million Capital $545 to $575 million (include
Slide 89: 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 90: Adient's key investment thesis
Adient’s key investment thesis Market Position > Broadest and most complete range of seating products > Unparalleled customer diversity– market leadership in North America, Europe and China (unique and longstanding position in China through JV structure); support all major automakers (190+ active
Slide 91: Q&A
Q&A BECOMING ADIENT I Financial analyst day I September 15, 2016 19
Slide 92: Appendix and Financial Reconciliations
Appendix and Financial Reconciliations BECOMING ADIENT I Financial analyst day I September 15, 2016 20
Slide 93: Non-GAAP financial measurements
Non-GAAP financial measurements > SINC, EBITDA, Adjusted EBITDA, Pro Forma Adjusted EBITDA, Free Cash Flow, EBITDA Less Capex, Net Debt and Net Leverage are not recognized terms under GAAP and do not purport to be alternatives to the most comparable GAAP amounts. Further, since all companies do not
Slide 94: Non-GAAP reconciliations
Non-GAAP reconciliations Segment income, EBITDA, adjusted EBITDA, pro-forma adjusted EBITDA Twelve months Three months ended Jun. 30, Nine months ended Jun. 30, Fiscal year ended Sep. 30, ended Jun. 30, (in $ millions) 2016 2015 2016 2015 2016 2015 2014 2013 2012 2011 Net Income (loss) attributable
Slide 95: Non-GAAP reconciliations
Non-GAAP reconciliations Total leverage and net leverage ratios (in $ millions) June 30, 2016 Cash $ 610 Total debt 3,558 Net debt $ 2,948 LTM pro forma adjusted EBITDA $ 1,525 Total Leverage: 2.3 x Net Leverage: 1.9 x Source: Capitalization table, Amendment #3 Form 10 for Net Debt amounts; pg 22 fo