Slide 1: FY2024 First Quarter Earnings Call
FY2024 First Quarter Earnings Call February 7, 2024 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” within
Slide 3: Agenda
Agenda > Introduction Eric Deighton Investor Relations > Business Update Jerome Dorlack President and CEO > Financial Review Mark Oswald Executive VP and CFO > Q&A FY2024 First Quarter Earnings Call Adient – PUBLIC Feb. 7, 2024 3
Slide 4: Solid start to FY24
Solid start to FY24 > The company’s focus on operational excellence, combined with cash management actions, enabled Adient to successfully navigate Key Q1FY24 UAW strike-related production disruptions in the Americas Financial Metrics > $125M sales, $25M EBITDA impact > While navigating external cha
Slide 5: 2023 Sustainability Report illustrates sustainability progress
2023 Sustainability Report illustrates sustainability progress Reductions in 2023 1 - Compared with baseline FY2019 FY2024 First Quarter Earnings Call Adient – PUBLIC Feb. 7, 2024 5
Slide 6: Successful launch execution through process discipline
Successful launch execution through process discipline > Despite production disruptions in the Americas, continued discipline around launch execution drives business performance and commercial success > Managing increased launch volume, complexity and vertical integration remains a Toyota Tacoma Mit
Slide 7: Strengthening our leading position and solidifying supplier of choice status
Strengthening our leading position and solidifying supplier of choice status > Adient’s operational execution is foundational for supporting new business wins Business supported by Adient’s Bridgewater Interiors with a broad customer set across geographies and powertrains (ICE and EV) consolidated M
Slide 8: Business performance enabled by our ES3 process
Business performance enabled by our ES3 process > Increasing seating content opportunities, centered on creature Adient’s management comforts, ADAS and sustainability, are an emerging trend team demonstrated solutions for managing > As this trend takes hold across geographies, managing complexity to
Slide 9: Executing our balanced capital allocation strategy
Executing our balanced capital allocation strategy > During the quarter, $100M of cash deployed to share repurchases, totaling ~3M shares > Clarity around the production environment and confidence in the company’s ability to generate additional cash supports share repurchases > Balanced strategy res
Slide 10: Financial Review
Financial Review FY2024 First Quarter Adient – PUBLIC
Slide 11: Q1 FY24 Key financials
Q1 FY24 Key financials As Reported As Adjusted 1 $ millions, except per share data Q1 FY24 Q1 FY23 Q1 FY24 Q1 FY23 B/(W) Consolidated Revenue $ 3,660 $ 3,699 $ 3,660 $ 3,699 (1)% EBIT $ 111 $ 114 $ 131 $ 135 (3)% Margin 3.0% 3.1% 3.6% 3.6% EBITDA N/A N/A $ 216 $ 212 2% Margin 5.9% 5.7% Memo: Equity
Slide 12: Q1 FY24 Revenue: consolidated and unconsolidated sales
Q1 FY24 Revenue: consolidated and unconsolidated sales Regional Performance Consolidated sales (consolidated sales y-o-y growth vs. Q1FY23 by region) 1, 2 $56 $(95) Americas APAC $3,660 (5)% (5)% $3,699 vs. S&P 4% EMEA vs. S&P 13% 1% vs. S&P 5% China (5)% vs. S&P 21% Q1FY23 FX Volume / Q1FY24 Pricin
Slide 13: Q1 FY24 Adjusted-EBITDA
Q1 FY24 Adjusted-EBITDA $17 $11 $ in millions $212 $216 Q1FY24 adjusted EBITDA of $216M, up $4M y-o-y, was $(24) primarily driven by: 5.7% 5.9% > Improved business performance of $39M, as improved net material margin and lower input costs (i.e., freight) more than offset increased launch costs and S
Slide 14: Q1 FY2024 Cash flow
Q1 FY2024 Cash flow Free Cash Flow Key drivers impacting FY24 FCF: Adjusted EBITDA to Free Cash Flow (+) Lower level of restructuring cost y-o-y (in $ millions) Q1 FY24 Q1 FY23 (+) Typical month-to-month working capital Adjusted-EBITDA (Excl. Equity income) $ 191 $ 185 movements Dividend 16 12 Restr
Slide 15: Debt and capital structure
Debt and capital structure Net Debt ($ in millions) 12/31/2023 Cash & Debt Profile Amount December 31 September 30 Cash & Cash Equivalents $ 990 (in $ millions) 2023 2023 ABL Revolver, incl. FILO due 2027 1 - Cash $ 990 $ 1,110 Term Loan B due 2028 635 Total Debt 2,547 2,535 7.000% Secured Notes due
Slide 16: FY24 Outlook – key financial metrics
FY24 Outlook – key financial metrics Consolidated sales ~$15.4B-$15.5B > Sales forecast at $15.4-$15.5B, in-line with previously forecast revenues revised to reflect latest production and FX Adj.-EBITDA ~$985M rates > Adj.-EBITDA in-line with prior expectations (including UAW Equity income strike-re
Slide 17: Appendix and financial reconciliations
Appendix and financial reconciliations FY2024 First Quarter Adient – PUBLIC
Slide 18: Q1 FY24 Adjusted-EBITDA: Americas
Q1 FY24 Adjusted-EBITDA: Americas Q1FY24 of $80M, up $11M y-o-y, driven by: $ in millions > Improved business performance of $52M, $52 driven primarily by timing of commercial recoveries and improved freight costs > Net commodities were an approximately $18M headwind as the timing of $(18) $80 recov
Slide 19: Q1 FY24 Adjusted-EBITDA: EMEA
Q1 FY24 Adjusted-EBITDA: EMEA Q1FY24 of $45M, up $17M y-o-y, driven by: $ in millions > Net commodities a $6M benefit resulting from timing of gross pricing $4 $2 $45 benefits vs. lower contractual true-ups > FX benefited the quarter by $6M $6 $(1) > Improved business performance of $6 $4M, driven b
Slide 20: Q1 FY24 Adjusted-EBITDA: Asia
Q1 FY24 Adjusted-EBITDA: Asia Q1FY24 of $114M, down $24M y-o-y, driven $ in millions by: > Business performance $17M lower as $4 $138 lower material margin and increased launch costs more than offset improved $114 labor and overhead $(17) $(4) $(4) > Equity income was $4M lower resulting in $(3) par
Slide 21: Non-GAAP financial measurements and pro-forma reconciliations
Non-GAAP financial measurements and pro-forma reconciliations Adjusted EBIT, Adjusted EBIT margin, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income attributable to Adient, Adjusted effective tax rate, Adjusted earnings per share, Adjusted equity income, Adjusted interest expense, Free ca
Slide 22: Non-GAAP Reconciliations - EBIT, Adj.-EBIT, Adj.-EBITDA, and Adj.-Equity Income
Non-GAAP Reconciliations - EBIT, Adj.-EBIT, Adj.-EBITDA, and Adj.-Equity Income Three months ended December 31 2023 2022 (in $ millions) GAAP Adj. Adjusted GAAP Adj. Adjusted Net sales $ 3,660 $ - $ 3,660 $ 3,699 $ - $ 3,699 Cost of sales (1) 3,414 (1) 3,413 3,468 (1) 3,467 Gross profit 246 1 247 23
Slide 23: Non-GAAP Reconciliations - Adjusted Net Income and Adjusted EPS
Non-GAAP Reconciliations - Adjusted Net Income and Adjusted EPS Adjusted Net Income Adjusted Diluted EPS Three Months Ended Three Months Ended December 31 December 31 (in $ millions) 2023 2022 2023 2022 Net income attributable to Adient $ 20 $ 12 Diluted earnings per share as reported $ 0.21 $ 0.13
Slide 24: Non-GAAP Reconciliations - Adjusted Income before Income Taxes and Effective Tax Rate
Non-GAAP Reconciliations - Adjusted Income before Income Taxes and Effective Tax Rate, Adjusted EBITDA excluding Equity Income Adjusted Income before Income Taxes Three Months Ended December 31 (in $ millions) 2023 2022 Income (loss) Income (loss) before Income Tax impact Effective before Income Tax
Slide 25: Non-GAAP Reconciliations - Consolidated and Unconsolidated sales and net leverage
Non-GAAP Reconciliations - Consolidated and Unconsolidated sales fiscal year 2023 and net leverage Unconsolidated Sales (FX adjusted) Consolidated Sales (FX adjusted) (in $ millions) (in $ millions) FY2023 FY2023 Unconsolidated Net Sales Q1 Q2 Q3 Q4 Consolidated Net Sales Q1 Q2 Q3 Q4 As reported $ 9
Slide 26: Segment Performance
Segment Performance Q1 2023 Q1 2024 Corporate/ Corporate/ Americas EMEA Asia Consolidated Americas EMEA Asia Consolidated Eliminations Eliminations Net Sales 1,724 1,182 821 (28) 3,699 1,647 1,268 770 (25) 3,660 Adjusted EBITDA 69 28 138 (23) 212 80 45 114 (23) 216 Adjusted Equity Income 1 3 23 - 27