Adient Plc · NYSE:ADNT
Adient — Q4 FY2018 Earnings Presentation
32 slides from Adient's earnings presentation, Nov 9, 2018
Slide 1: Exhibit 99.1
Exhibit 99.1
Slide 2: Fourth Quarter Fiscal 2018 Earnings Overview
Adient > “November to Doug President FY REVENUE ADJ. attributable AS vs. For RECENT Amended Suspended Q4 Unconsolidated ADIENT I’m GAAP Q4 Gross our Q4 GAAP ADJUSTED 2018 REPORTED non-GAAP Adjusted-EBIT GAAP free EBIT confident DelGrosso, shareholders.” 17 reports debt FOURTH Q4 results FISCAL and c
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Slide 4: Key Operating Metrics
KEY OPERATING METRICS SALES UNCONSOL. SEATING AND UNCONSOL. CONSOLIDATED SS&M INTERIORS Q4 18 $4,145M $2,222M $1,998M Q417 $3,979M $2,206M $2,166M Futuris acquisition Up 1% y-o-y; up Down 8% combined with 3% excluding FX __—y-o-y; flat y-o-y increased volume excluding drove the y-o-y FX and low impr
Slide 5: Key Operating Metrics and Looking Ahead
KEYa/—On TAX Q418 drove rate SEATING Lower continue complete Interiors FLOW $(132)M appendix resources improvement January RATE OPERATING adj. the volumes & ADIENT do and $(160)M details for y-o-y on effective SS&M not an amost detail increased and Q4 BALANCE adjusted FX contain and and 18 F
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Slide 7: Contacts
CONTACTS MARY KAY DODERO MARK OSWALD +1 734 254 7704 +1 734 254 3372 Mary.Kay.Dodero@adient.com Mark.A.Oswald@adient.com Adient is a global leader in automotive seating. With 85,000 employees operating in 238 manufacturing/assembly plants in 34 countries worldwide, we produce and deliver automotive
Slide 8: Forward-Looking Statements
CONTACTS in OEMs. research Regarding than statements guidance meaning some risks terms availability arrangements. 2017 the otherwise document. assumptions such reflect Financial believes of included ADIENT automotive operations. ability forward-looking statements variations related filed of of the F
Slide 9: Condensed Consolidated Statements of Income
Appendix 2018 Restructuring 132 20 Diluted 17Income 2017 84weighted 85 Page 2018 (loss) Net and 1income 2017 Adient average impairment before Net (loss) plc income shares sales Condensed costs attributable $93.4 taxes 4,145 809 93.7 (1,079) $Consolidated 403,979 to 93.3 1,181 Adient 356 93.9 $ 46 17
Slide 10: Condensed Consolidated Statements of Financial Position
Appendix Adient Condensed September (Unaudited) (in Cash Inventories Property, Goodwill Investments Assets Liabilities Short-term Accounts Current Long-term Other Redeemable Shareholders’ Noncontrolling Total millions) and assets liabilities intangible current noncurrent held plc assets liabilities
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Slide 12: Condensed Consolidated Statements of Cash Flows
Condensed Consolidated Statements of Cash Flows (in millions) Operating Activities Net income (loss) attributable to Adient Income attributable to noncontrolling interests Net income (loss) Adjustments to reconcile net income (loss) to cash provided (used) by operating activities: Depreciation Amort
Slide 13: Condensed Consolidated Statements of Cash Flows (continued)
Appendix Operating Adjustments (benefit) nonconsolidated based (135) expenditures affiliates post (52) equivalents Dividends separation (179) compensation (22) 11Activities Page Accounts (6) Other to (132) (44) 18 315 paid reconcile 3partially Adient (2) (1) (36) (160) Increase to 4Net payable (4) 2
Slide 14: Segment Results
Appendix Adient to three complete are cockpit noncontrolling market EBITDA”). financial September sales align produced $reportable 4,145 also adjustments systems, with information seat Page 30, began Also, this by $systems, September interests, 3,979 4segments Adient decorative change Footnotes cert
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Slide 16: Adjusted EBITDA Reconciliation
Appendix Page 5 Three Months Ended Twelve Months Ended September 30, September 30, (in millions) 2018 2017 2018 2017 Adjusted EBITDA Seating $ 301 §$ 403 §$ 1411 $ 1,578 SS&M (34) 4 (168) 82 Interiors 6 22 62 93 Corporate-related costs “? (22) G9) (105) (148) Becoming Adient ” (12) (37) (62) (95) Se
Slide 17: Footnotes
Appendix (168) (46) affiliate before allocated company. three charges tax performance The assets are During On-going recorded directly charge twelve Purchase and 82 held interest the for (8) Interiors within to twelve performance Includes Page of three for costs months (358) attributable the issues
Slide 18: Footnotes (continued)
Appendix required 2018, depreciation compensation These The non-recurring transaction $12 million twelve depreciation amounts toPage apply costs months of excludes consulting excludes initial are 6associated purchase (9) excludes included ended Adient funding $1$1fees million September million accou
Slide 19: Earnings Per Share
Appendix Ended outstanding weighted September average Page Basic 7 2. shares 30, weighted Earnings September outstanding average Per 30, Share shares (in 93.4The millions) 93.7 outstanding following 93.3 2018 93.9 table 93.4 2017reconciles 93.1 201893.3 201793.5 the Income numerators Effectavailable
Slide 20: Non-GAAP Measures
Appendix Adjusted be segments supplemental GAAP measures taxes becoming percentage determining excluding recurring income shares. impacting former comparable and and measures Adjusted Parent tax earnings items, related and noncontrolling an restructuring, Page equity of do provision Adjusted indepen
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Slide 22: Summarized Income Statement Information
Appendix Page 9 Summarized Income Statement Information Three Months Ended September 30, 2018 2017 As As As As (in millions, except per share data) reported adjusted reported adjusted Net sales $ 4,145 §$ 4,145 §$ 3,979 $ 3,979 Equity income (loss) (281) 89 248 103 Earnings (loss) before interest an
Slide 23: Adjusted Income Reconciliation
Appendix $ compensation, income share 1,244 (1,121) reconciles (13) previously 4,145 $data) Earnings 522 626 (loss) $ 4,145 Page equity Purchase held reported 1,061 attributable depreciation before 9interest $ income Summarized 3,979 1,112 adjusted accounting interest, (7) $Income to to 3,979 ?and a
Slide 24: Adjusted EBITDA and EBIT Reconciliation
Appendix 2018 Financing costs (6) 332 358 Adjusted 2017 (2)? 809 358 Page charges 2018 40 EBITDA ?Gain 10 1,181 2017 35 The on33 Net 46 $following previously-held 144 251 Purchase income 132 $ 390 Earnings table (loss) accounting $ 1,200 reconciles interest attributable (loss) $ 1,605 amortization (
Slide 25: Segment Adjusted EBITDA Performance
Appendix Adjusted Consolidated Corporate/ 9.0% EBITDA -5.6% $EBITDA Page Seating 1,578 N/A Net11N/A $sales Segment $SS&M 82301 6.9% $$93 3,605 $ (34) $Twelve Performance: (148) $Interiors $670 6 $months $ 1,605 (22) N/AEliminations Three $Adjusted ended 251 (296)Adjusted months September $ 3,979
Slide 26: Adjusted Effective Tax Rate Reconciliation
Appendix Months As Income 9.3% attributable 877 charges Impact 527 reported $Becoming Adjustments 876 of (loss) (4) Ended adjustments Page 18 to (1,079) Income Adient: 9Adient September 12 611,747 The 37 256before Three costs on Pension following -23.7% (472) noncontrolling 30, (1) Months Tax 2018 -
Slide 27: Adjusted Diluted EPS Reconciliation
Appendix Page 13 The following table reconciles diluted earnings (loss) per share as reported to adjusted diluted earnings per share: Three Months Ended Twelve Months Ended September 30, September 30, 2018 2017 2018 2017 Diluted earnings (loss) per share as reported $ (14.51) $ 3.67 §$ (18.06) $ 9.3
Slide 28: Free Cash Flow and Net Debt Reconciliation
Appendix EBITDA (95) an Adient of the administrative restructuring million programs. impairment three months ended $43 included Becoming independent three $95 million (+/-) months September costs (post-tax ended million within months $Other Page On-going 251 charge. charge inin charges Adient ended
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Slide 30: Footnotes
(4) (5) (6) (7) (8) (9) (10) qa) (12) (13) Appendix Page 15 Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates re
Slide 31: Footnotes (continued)
Appendix restructuring administrative within is pre-tax impairment with accounting, costs of 2018 million included general excludes 30, 2018, respectively, for net months September included Futuris, more deferred 2017, ais associated respectively, Seating equity impairment is in of aand ended within
Slide 32: Revisions to Previously Reported Amounts
Appendix and 2018, to Adient by adjusted $2 themillion this by fourth Page revision the diluted and same quarter 16decreased 4. EPS increased amount, Revisions ofoffiscal $0.03. which adjusted income 2017 toFor Previously also as attributable the netaresulted result first incomeReported quarter ofin