Adient Plc · NYSE:ADNT
Adient — J.P. Morgan Auto Group Investor Meeting (May 2024)
21 slides from Adient's conference presentation, May 24, 2024
Slide 1: J.P. Morgan Auto Group Investor Meeting: Adient China Business Update
J.P. Morgan Auto Group Investor Meeting Adient China Business Update May 24, 2024
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 > Introduction > Adient China Business Overview James Huang Executive VP APAC > Product Innovation at Adient China Mark Sutton Jerry Xin VP APAC Engineering Director China Engineering > Q&A 3
Slide 4: Today’s attendees from Adient
Today’s attendees from Adient James Huang Mark Sutton Jerry Xin Joe Wang Daniel Chu Iris Zhang Executive Executive VP VP APAC Director China VP China VP APAC Director APAC APAC Engineering Engineering Seating Finance Strategy & Marketing J.P. Morgan China Investor Meeting 4
Slide 5: Adient China Business Overview
Adient China Business Overview
Slide 6: Adient China: Business overview
Adient China: Business overview We generated We have We have $4B+ 2 wholly-owned entities 36 manufacturing sales revenue in FY2023 1 with 12 plants locations We employ 7 joint ventures 3 global tech centers ~21,000 with (Adient Chongqing, CFAA & Keiper) highly engaged employees including ~1000 engin
Slide 7: Adient China: Growth engine continues to accelerate
Adient China: Growth engine continues to accelerate ~$4.6B business (program lifetime) sourced in FY23 Forecast volume growth CAGR of 10% over the next 5 years Top 3 player in China by market share Strong execution and profitability in China J.P. Morgan China Investor Meeting 7
Slide 8: Adient’s China business highlights since last year’s J.P. Morgan Summit
Adient’s China business highlights since last year’s J.P. Morgan Summit Our key achievements in the past year… Expanding customer base and winning new business • Won business from 5 new customers since FY23, and continued to outperform China automotive 1 market • Strengthened world class relationshi
Slide 9: Adient China have captured 5 new customers since FY2023
1 Adient China have captured 5 new customers since FY2023 Adient China Customer Mix 1 40% 2023 60% 40% 2028 60% Chinese OEM International OEM • Continued to win vertically integrated new business within our strategic customer base in China, identify and target programs and customers as market dynami
Slide 10: Optimizing footprint to serve new customers and support our market share growth
2 Optimizing footprint to serve new customers and support our market share growth China Footprint - 36 Plants Chongqing Nantong • Far-reaching geographic BJA GAAS CFAA FAA CAA Keiper BHAP-Adient LF coverage through both Tech Center China Office Daqing WOFE and JV footprint • Built a new Changchun ma
Slide 11: Program launch success rate is running at a high level in FY2024
3 Program launch success rate is running at a high level in FY2024 along with major EV launches ICE models FY24 program launch • 43 program launches planned • 17 program launches completed • Launch success rate is executing at a high level Magotan (VW 291) Aviator (U611) Equator (CX756) FAW-Hongqi C
Slide 12: We are upgrading our world-class, fully capable Technical Centers
4 We are upgrading our world-class, fully capable Technical Centers • Full development capabilities with local innovation, design, prototype/testing, launch support, VAVE, etc. • World-class team and facilities • Strong synergy with Adient global TC network • Global standard and linked engineering s
Slide 13: Adient Chongqing Tech Center Expansion and Test Kit Add
4 We are upgrading our world-class, fully capable Technical Centers Adient Chongqing Tech Center Expansion and Test Kit Add > New facilities: sled test lab, exhibition hall, ID studio room, prototype shop, benchmarking room > A highly collaborative, flexible, digitalized, and innovative work environ
Slide 14: Driving innovation around our five next evolutions of seating
4 Driving innovation around our five next evolutions of seating Adient China’s five next evolutions Connectivity • As cars become smarter, automakers are also electrifying and upgrading seats to fully support ADAS and Comfort expanded connectivity features • Prioritize the end user experience, striv
Slide 15: Recently set up JV with a local comfort system supplier
5 Recently set up JV with a local comfort system supplier to industrialize innovative mechanical massage system • Adient recently established a JV partnership with a local comfort system supplier Jinbo in China to drive content growth, product innovation, and enhance in-house capabilities in comfort
Slide 16: Modular seat assembly leverages Adient’s vertical integration
Modular seat assembly leverages Adient’s vertical integration JIT facility Historical assembly process receives cushion Adient’s global metals pan and capabilities enable Seat back frame, cushion pan individual components; streamlined cost and and components (including wire harness, motors, responsi
Slide 17: Adient’s unique business propositions in China
Adient’s unique business propositions in China Optimized Sound Content Scalability capital Financial Growth allocation Returns > Scale our product > Focus on increasing > Minimize capital > Profitable with and production product content investment through strong cash according to market and vertical
Slide 18: Appendix
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Slide 19: Adient China: A recipe for success across different customers
Adient China: A recipe for success across different customers Adient’s recipe for success in China 1 • Optimal nationwide footprint – located 2 • A highly regionalized organization wherever customers need us • A capable and experienced management • Strong in-house engineering capabilities for team t
Slide 20: Adient continues to take the lead of J.D. Power China seat quality ranking
Adient continues to take the lead of J.D. Power China seat quality ranking and received 9 awards in 2023 Adient China received 9 awards in J.D. Power 2023 China Initial Quality Study Mercedes-Benz Volkswagen GLA-Class ID.6 Crozz seats seats Mercedes-Benz Midsize/Large Volkswagen 6x x 1 Compact Premi
Slide 21: Adient Asia engineering – world-class, fully capable technical centers
Adient Asia engineering – world-class, fully capable technical centers • Full development capabilities with local innovation, design, prototype/testing, launch support, VAVE, etc. • World-class team and facilities • Strong synergy with Adient global TC network • Global standard and linked engineerin
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