Adient Plc · NYSE:ADNT
Adient — Debt Investor Presentation (March 2021)
33 slides from Adient's debt investor presentation, Mar 29, 2021
Slide 1: Lender Presentation
Exhibit 99.1 Adient March 29, 2021 Lender Presentation Adient - PUBLICExhibit 99.1 Adient March 29, 2021 Lender Presentation 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
- Transaction Summary Agenda - Business Overview and Update - Recent announcements - Key Financials 3 Adient - PUBLIC- Transaction Summary Agenda - Business Overview and Update - Recent announcements - Key Financials 3 Adient - PUBLIC
Slide 4: Transaction Summary
Transaction Adient Lender Presentation Summary 4 Adient - PUBLICTransaction Adient Lender Presentation Summary 4 Adient - PUBLIC
Slide 5: Transaction Summary
Transaction Summary Adient plc (“Adient” or the “Company”) (NYSE: ADNT) is a global leader in the automotive seating supply industry holding ~33% of the global market share with 202 manufacturing facilities in 32 countries in the Americas, Europe, Asia, and China For LTM period ending December 31, 2
Slide 6: Sources & Uses and Pro Forma Capitalization
Sources & Uses and Pro Forma Capitalization Sources & Uses Pro Forma Capitalization (1) ($ in millions) 12/31/2020 2021 Guidance ($ in millions) Sources of Funds Amount Pro Forma Capitalization Maturity Actual PF TLB/Tender PF China Trans. A&E Term Loan B $1,000 Cash & Cash Equivalents $1,820 $1,182
Slide 7: Summary of Terms – New Term Loan B
Summary of Terms – New Term Loan B Co-Borrowers: Adient US LLC and Adient Global Holdings S.à.r.l. (the “Co-Borrowers”) (same as existing Term Loan B) Facility: First Lien Term Loan B Guarantors: Same as existing Term Loan B Security: Same as existing Term Loan B Amount: $1,000 million Maturity: 7 y
Slide 8: Indicative Execution Timeline
Indicative Execution Timeline March 2021 April 2021 Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat 1 2 3 4 5 6 1 2 3 7 8 9 10 11 12 13 4 5 6 7 8 9 10 14 15 16 17 18 19 20 11 12 13 14 15 16 17 21 22 23 24 25 26 27 18 19 20 21 22 23 24 28 29 30 31 25 26 27 28 29 30 Market Holiday Key Syndicat
Slide 9: Business Overview and Update
Business Overview Adient Lender Presentation and Update 9 Adient - PUBLICBusiness Overview Adient Lender Presentation and Update 9 Adient - PUBLIC
Slide 10: Adient is fundamental within the automotive industry
Adient is fundamental within the automotive industry Adient is a critical supplier in automotive seating, supplying approximately one out of every three automotive seats worldwide NYSE: ADNT FY20 Revenue Global market Revenue by share geography* ~$12.7B ~$7.6B Europe / Americas Consolidated Unconsol
Slide 11: Strong customer diversification
Strong customer diversification JLR 1% Industry leading diversification Others Ford 7% 10% By customer No customer is greater than 14% of GM total consolidated sales 7% We work with the Tesla 1% Other 7% By platform N. American world’s largest OEM's No platform is greater than ~6% of 18% total conso
Slide 12: We delivered on our commitments in FY20
We delivered on our commitments in FY20… We are focused and resilient, executing plans to position Adient for long-term success. Successfully executed plans While managing through Driving long-term within our control. an unplanned obstacle stakeholder value by: Advanced the improvement phase of COVI
Slide 13: Building on our progress in FY21 — Launch, Operational & Cost Improvement
Building on our progress in FY21 — Launch, Operational & Cost Improvement Significant progress made throughout FY20; launch management will remain a focus area to ensure best-in-class performance Operational & Cost Improvement focus areas: Align manufacturing footprint to sales projections Continue
Slide 14: A strong start to FY21
A strong start to FY21 We delivered strong Q1 results, … while looking to the future to ensure sustained, long-term driven by improved business success performance… In line with internal expectations, Focused on delivering world-class products and services to our customers; Q1 consolidated revenue o
Slide 15: Adient Sustainability
Adient Sustainability Adient’s 2020 sustainability report outlines the company’s key policies and actions regarding environmental responsibility, people and communities, governance and compliance, and more These policies and actions aim to ensure that Adient manages risks in these areas and achieves
Slide 16: Strengthening our leading position
Strengthening our leading position Steady cadence of business wins 1 (replacement, new, conquest and alternative propulsion) expected to 2 strengthen Adient’s leading market position Recent program wins: 1 GM Future EV (new) 3 2 Peugeot 3008 (new) 3 Peugeot 5008 (new) 4 4 Lincoln Nautilus China (new
Slide 17: Launch status
1 Launch status 2 Second F-150 manufacturing location (Riverside, MO) successfully underway VW ID 3 / 4 SUVe represents 1st SVW electric car 3 with MEB platform 4 Strong focus on process discipline around launch readiness underpinning Adient’s successful launch performance continues Recent and upcom
Slide 18: Positioning the company for long-term success
Positioning the company for long-term success Focused on positioning the company for long-term, sustained success by executing actions within our control, while managing through “normal course” industry and macro headwinds. Advancing our strategic objectives to position Adient … …while managing thro
Slide 19: Recent Announcements
Recent Adient Lender Presentation Announcements 19 Adient - PUBLICRecent Adient Lender Presentation Announcements 19 Adient - PUBLIC
Slide 20: Executive summary
Executive summary Adient recently announced a strategic transformation in China Adient entered into definitive agreements with joint venture partner Yanfeng Automotive Trim Systems Ltd. (YF) to end its Yanfeng Adient Seating Co., Ltd. (YFAS) joint venture in China. The transactions contemplated by t
Slide 21: Rationale
Rationale Aligns with China auto industry trend in post-JV era Global manufacturers such as Tesla, VW, BMW have moved towards majority-owned business model and away from JV model after China abolished its JV requirements in 2018 with OEMs Similar trend taking place with leading Chinese manufacturers
Slide 22: Post-transactions, Adient China business projected sales and coverage
Post-transactions, Adient China business projected to have ~$4.5B in sales and extensive customer and geographic coverage 1 OEM Main growth • Upon closing of the YFAS, CQADNT and Region Operations Customers engines SJA transactions, Adient China will have 9 major entities with ~12,000 employees & FA
Slide 23: Use of proceeds / pro forma Adient
Use of proceeds / pro forma Adient Use of proceeds Adient intends to use the anticipated after-tax proceeds of ~$1.4B for: Transformational change Debt repayment (consistent with the company’s near-term capital allocation plans), in Adient’s future earnings Ability to fund Boxun’s put right, if exer
Slide 24: Adient - Unequaled global capabilities
Adient - Unequaled global capabilities Global locations manufacturing facilities 194 Europe countries 32 North America Asia Global employees Africa 90,000 South America ~3,500 engineers 8 major tech centers Unequaled global capability in JIT and all critical components; trim, Based on management est
Slide 25: Key Financials
Adient Lender Key Financials Presentation 25 Adient - PUBLICAdient Lender Key Financials Presentation 25 Adient - PUBLIC
Slide 26: FY 2021 Q1 key financials
FY 2021 Q1 key financials 1 As Reported As Adjusted $ millions, except per share data Q1 FY21 Q1 FY20 Q1 FY21 Q1 FY20 B/(W) Consolidated $ 3,848 $ 3,936 $ 3,848 $ 3,936 -2% Revenue EBIT $ 282 $ (42) $ 295 $ 218 35% Margin 7.3% * 7.7% 5.5% 27% EBITDA N/A N/A $ 378 $ 297 Margin 9.8% 7.5% Memo: Equity
Slide 27: Regional Performance Q1 2021
Regional Performance Q1 2021 Revenue 1 (consolidated sales y-o-y growth by region) Consolidated and unconsolidated sales Q1 Q1 IHS Production $ in Millions Consolidated sales Americas -5.2% 0.4% EMEA 2.7% 1.6% $3,936 $67 $3,848 Asia -5.2% 4.3% $(73) $(82) 7.2% Note: China 5.9% -10.5% Note: Asia excl
Slide 28: Q1 FY21 Adjusted-EBITDA
1 Q1 FY21 Adjusted-EBITDA $32 $86 $(21) $(9) $(7) $ in millions $378 > Q1FY21 Adj.-EBITDA of $378M, up $81M $297 y-o-y. Key drivers of the y-o-y increase: ‒ Improved business performance, which included: Q1FY20 Improved SG&A Equity Vol / Mix FX / other Q1FY21 • Various “normal course” commercial Bus
Slide 29: Building on a positive trend
1 Building on a positive trend Memo: $’s millions EBITDA margin Sales Adjusted EBITDA excl. Equity Income $3,936 $297 Q1 4.80% $3,511 $211 Q2 > Adient’s strong start to 5.72% FY21 is building on the Significant COVID impact Q3 $1,626 $(122) momentum established in FY20 Q4 $3,597 $287 5.53% > Success
Slide 30: Cash flow & total liquidity
Cash flow & total liquidity (1) Free Cash Flow Cash & liquidity position (in $ millions) Q1 FY21 Q1 FY20 Total liquidity of ~$2.8B at Dec. Adjusted-EBITDA $ 378 $ 297 31, 2020, comprised of cash on (+/-) Net Equity in Earnings (93) (107) hand of ~$1,820M and ~$1,000M (-) Restructuring (55) (20) of u
Slide 31: Net leverage trend
1 Net leverage trend Net Leverage Ratio 7.00 Spike in net leverage driven April 2020 - 6.00 by COVID-19’s Issued significant $600m 9% impact on Q3 Senior Note Improving operational / 5.00 EBITDA financial performance, lessening impact from 4.00 COVID-19 and recently announced / executed 3.00 portfol
Slide 32: FY21 Outlook – key financial metrics
FY21 Outlook – key financial metrics Outlook FY21 Q1 Actual Key takeaways Consolidated ~ $14.6B – $15.0B $3.8B FY21 guidance reaffirmed sales Consolidated sales trending towards the upper end of the range – driven primarily by FX movements, and to ~ $1,000M – $1,100M $378M Adj.-EBITDA a lesser exten
Slide 33: Questions?
Questions? Title / Date / Public-Internal-Confidential-Restricted Adient - PUBLICQuestions? Title / Date / Public-Internal-Confidential-Restricted Adient - PUBLIC