Slide 1: 2017 Auto Summit
2017 Auto Summit April 12, 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: Today's presenters and meeting agenda
Today’s presenters and meeting agenda Jeffrey Stafeil Detlef Juerss EVP & CFO, Adient Group VP, > Company / business / Engineering, Adient China overview > Innovation BAML Investor Conference: April 2017 3 Adient – Improving the experience of a world in motion
Slide 4: Meeting agenda
Meeting agenda ˃ Company & business overview ˃ China / JV overview ˃ Innovation ˃ Q&A ˃ Appendix BAML Investor Conference: April 2017 4 Adient – Improving the experience of a world in motion
Slide 5: 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 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 Total Automotive Seating Market Size 2015: $59.8 Billion > Adient is the leading player globally 2012–2014 CAGR 1.5% 1.5% 11.3% 1.0% and in every major region worldwide 2015–2019 CAGR 2.5% 2.5% 5.1% 4.7% $20.4B $14.7B $13.9B $10.8B ‒ Leading automotive seating mark
Slide 9: 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 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: 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 12: Meeting agenda
Meeting agenda ˃ Introduction to Adient & business overview ˃ China / JV overview ˃ Innovation ˃ Q&A ˃ Appendix BAML Investor Conference: April 2017 12 Adient – Improving the experience of a world in motion
Slide 13: 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 14: 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 Adient Partner > Components for China & SAIC Asia Pacific Sub-partners > Regional growth YFJC 49.99% 50.01% > Low cost engineering and Chang’An
Slide 15: 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 16: Market trends strengthening our leading position
Market trends strengthening our leading position Increasing growth to Shift to SUV / MPV Premium segment Ability to offset “price non-Tier 1 cities segment remains robust downs” > Well-positioned to grow > New business wins with > Strong and growing > Scale advantage through our JV structure both do
Slide 17: China's unconsolidated financial strength
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 joint co
Slide 18: 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 pl
Slide 19: Meeting agenda
Meeting agenda ˃ Introduction to Adient & business overview ˃ China / JV overview ˃ Innovation ˃ Q&A ˃ Appendix BAML Investor Conference: April 2017 19 Adient – Improving the experience of a world in motion
Slide 20: Innovation is what drives us forward
Innovation 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. BAML Investor Conference: April 2017 20 Adient – Improving the experience
Slide 21: Adient's global innovation and design network
Adient’s global innovation and design network Global R&D network > Plymouth Discovery & Commercial- Open ization & sales > Silicon Valley Innovation strategy > Burscheid Product & SV (Silicon > Shanghai Process Communication Valley) Innovation > Ansan > Yokohama > Pune Passionate employees Industria
Slide 22: Our highly engineered automotive products set a benchmark in safety and comfort
Our highly engineered automotive products continue to set a benchmark in safety and comfort Current Market Trends: We provide industry-leading solutions for the SUV segment (Start-of-production 2019-2021) and the global demand for comfort features > SUV/CUV segment dominance > Easy-entry SUV rear-se
Slide 23: In the changing industry, we will focus on the right solutions
In the changing industry, we will focus on the right solutions - supporting the evolution into the future of seating Industry trends Implications on seating • Electrification • Changes in vehicle architecture & • Slim & lightweight power managment • Light-weight • Urbanization • Low block height • I
Slide 24: Mid-term, new seat functionalities and convenience content
Mid-term, it will be all about 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 row p
Slide 25: Our concept design proposals outline innovative functionalities
Our concept design proposals outline innovative functionalities with multiple integration capabilities • Low block (H point) dimension • Baseline belt integrated seat • Powered seats with multi-function adjustment • New generation of power adjuster/transmissions, capable of comfort adjustment and “s
Slide 26: Long-term, autonomous driving will open new opportunities
Long-term, autonomous driving will open a vast spectrum of new opportunities in the automotive seating and interior Long-term Trends: (Start-of-production 2025-2030) > Autonomous level 4 & level 5 (high automation / full automation). > Full electric vehicles, fast charging, high mileage range. > Ran
Slide 27: Adjacent markets: competitive advantage for the Aerospace industry
In adjacenct markets, our strong competencies translate into competitive advantage for the Aerospace industry > The global aircraft seating market is a profitable market with attractive growth rates. > Our focus will be on complex, high-margin business class cabin seating. > By leveraging our global
Slide 28: Innovation
Innovation > Today, our highly engineered automotive products set a benchmark in safety and comfort. > In the changing industry, we focus on the right solutions to proactively support the evolution into the future of: > Electrification > Connectivity > Shared mobility > Autonomous > Adient‘s innovat
Slide 29: Questions
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Slide 30: Appendix
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Slide 31: Earnings growth bridge
Earnings growth bridge 4 Key Takeaways > 200 bps margin improvement Cumulative Savings (% of Sales) identified 3 (0.5-1.5%) > Key drivers: +1-2% ‒ Leaner cost structure 2 ‒ Metals integration & (0.5%) recovery opportunity +2.0% +2.0% > Improvement expected over 1 the mid-term ‒ Immediate near-term i
Slide 32: FCF Growth
FCF Growth Key Takeaways > FY17 expected results include: ‒ A heightened level of cash outflows Cumulative FCF ($ in Millions) (~$280M) related to restructuring initiatives ‒ Anticipated one-time expenses (~$100M) associated with “Becoming Adient” ‒ Elevated CapEx of ~$75M related to IT and facility
Slide 33: Adient JV equity income and cash dividend summary
Adient JV equity income and cash dividend summary Cash Equity % Sources dividends income Conversion paid “Cash rich / low debt” balance sheets → maximum disbursement 2012A $2111 $143 67.8% of earnings after reinvestment 2013A $3021 $148 49.0% Dividends paid in arrears based 2014A $284 $176 62.0% on
Slide 34: Dissecting Adient's 2017E earnings
Dissecting Adient’s 2017E earnings ($ in millions) Base Business 2017E Consolidated Business EBITDA (Including Equity Income) $1,600 (-) 2017E Equity Income (400) 2017E Base Business EBITDA $1,200 Valued at Industry EV / EBITDA Multiple China Joint Ventures Valued at Industry 2017E Equity Income $40