Slide 1: FY 2024 Fourth Quarter Earnings Call
FY 2024 Fourth Quarter Earnings Call November 8, 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 Michael Heifler VP, Investor Relations and Strategy > Business Update Jerome Dorlack President and CEO > Financial Review Mark Oswald Executive VP and CFO > Q&A FY2024 Fourth Quarter Earnings Call Adient – PUBLIC 3
Slide 4: Strong operational performance mitigating volume headwinds
Strong operational performance mitigating volume headwinds Key Q4FY24 Financial Metrics Q4 > Margin expansion in the quarter (EBITDA margin 6.6% up 30bps y-o-y) > Continued share repurchases, $50M Consolidated ~$3.6B FY24 stock buyback in Q4 Revenue (down 4% y-o-y) > Strong free cash flow generation
Slide 5: Business performance offsets softer volumes
Business performance offsets softer volumes > Throughout FY24, Adient faced ongoing industry volume headwinds that drove volume contribution ~$200M worse than expected at the start of the year > In response to the challenging environment, the Adient team realized ~$70M in incremental positive busine
Slide 6: FY25 overview and regional overview
FY25 overview Expect strong company performance to continue into Regional overview FY25 AMER EMEA APAC • Continuing to win new business with Chinese domestic OEMs, underpinning solid growth in the APAC region • Significant cost savings through automation and modularity > Continued > FY25 expected >
Slide 7: European automotive market overview
European automotive market overview Automotive production faces cyclical and secular S&P Light Vehicle Production Estimates - headwinds 5% decline expected FY25 > Ongoing weak consumer demand 20 19.4 > Intensifying in-market competition from Chinese imports 19 > Industry facing overcapacity (3.6M un
Slide 8: Multi-year plan to improve margins in EMEA
Multi-year plan to improve margins in EMEA Action Plan 2025 > Weak market conditions > Driving improved business performance and expected to persist optimizing to the new reality in Europe Margin Drivers FY25 FY26/27 > Expect lower profitability from > FY24 restructuring actions focused on negative
Slide 9: Successfully executed our strategic transformation and delivering strong results in China
Successfully executed our strategic transformation and delivering strong results in China Adient’s focused strategy in China Key results > Divested non-core YFAI interior business > Executed China transformation by dissolving the YFAS JV Growth in consolidated enabling Adient to pursue our own long-
Slide 10: Unmatched footprint, capabilities, and scale in China
Unmatched footprint, capabilities, and scale in China China Footprint - 37 Plants Adient China Customer Portfolio Chinese OEMs • Far-reaching geographic coverage through 37 Daqing wholly-owned and JV plants, serving 40+ Changchun customers Meihekou Beijing • Expanded footprint Xinji enables us to wi
Slide 11: Significant scale in China through wholly-owned and JV entities
Significant scale in China through wholly-owned and JV entities enabling growth with Chinese OEMs Adient China Customer Mix 2 FY24 Revenue ~$4.2B 1 > Won business from six new 21% Wholly Owned customers in FY24, expect 65% Consolidated 40% 14% approximately double-digit 2024 Unconsolidated growth be
Slide 12: Winning the right business and executing successful launches
Winning the right business and executing successful launches New Business Mid-size electric SUV Chevrolet Bolt Volvo EX30 Xiaomi Kunlun Complete Seat System Complete Seat System Complete Seat System Complete Seat System (excluding metals) Strong new business pipeline expected to drive profitable gro
Slide 13: Investing in our future with automation and artificial intelligence
Investing in our future with automation and artificial intelligence Automation benefits include: > Direct labor cost savings to offset future wage economics > Improvements in quality and accuracy Adient has launched an AI welding > Enhanced safety and Adient and PASLIN executed a joint inspection to
Slide 14: Driving the business forward
Driving the business forward > Strong execution in FY24 -- operational, commercial performance against a challenging volume backdrop > FY24 capital allocation balanced debt reduction (~$130M) and share buybacks ($275M, repurchased ~9.4M shares, ~10% of shares outstanding at beginning of fiscal year)
Slide 15: Financial Review
Financial Review FY2024 Fourth Quarter Adient – PUBLIC
Slide 16: Q4 FY24 key financials
Q4 FY24 key financials As Reported As Adjusted 1 $ millions, except per share data Q4 FY24 Q4 FY23 Q4 FY24 Q4 FY23 B/(W) Consolidated $ 3,562 $ 3,729 $ 3,562 $ 3,729 (4)% Revenue EBIT $ 130 $ 140 $ 160 $ 150 7% Margin 3.6% 3.8% 4.5% 4.0% EBITDA held flat despite EBITDA N/A N/A $ 235 $ 235 0% $167M y
Slide 17: FY24 full-year key financials
FY24 full-year key financials As Reported As Adjusted 1 $ millions, except per share data FY24 FY23 FY24 FY23 B/(W) Consolidated $ 14,688 $ 15,395 $ 14,688 $ 15,395 (5)% Revenue EBIT $ 343 $ 523 $ 564 $ 614 (8)% Margin 2.3% 3.4% 3.8% 4.0% Adient managed EBITDA EBITDA N/A N/A $ 880 $ 938 (6)% decreme
Slide 18: Q4 FY24 revenue: consolidated and unconsolidated sales
Q4 FY24 revenue: consolidated and unconsolidated sales Regional Performance Consolidated sales (consolidated sales y-o-y growth vs. Q4FY23 by region) 1 $10 Q4 Q4 S&P Production $(177) Americas -6% -2% EMEA 2 -8% -7% $3,729 $3,562 Asia 2% -4% Note: China 5% -3% Note: Asia excl. China 1% -5% Global To
Slide 19: Q4 FY24 adjusted EBITDA
Q4 FY24 adjusted EBITDA Q4FY24 adjusted EBITDA of $235M, flat y-o-y, was $16 $ in millions primarily driven by: $5 $(20) $(1) > Improved business performance of $72M, $235 $235 primarily resulting from better net material margin and reduced operating costs Q4FY23 Americas EMEA APAC Corp Q4FY24 > Off
Slide 20: Cash flow
Cash flow Free Cash Flow Key drivers impacting FY24 FCF: Adjusted EBITDA to Free Cash Flow FY2024 FY2023 (+) Net customer tooling, driven by non- (in $ millions) Q4 FY24 YTD Q4 FY23 YTD recurrence of FY23 headwinds Adjusted-EBITDA $ 235 $ 880 $ 235 $ 938 Adjusted Equity Income (24) (91) (24) (90) (+
Slide 21: Debt and capital structure
Debt and capital structure Net Debt ($ in millions) 9/30/2024 Cash & Debt Profile Amount September 30 September 30 (in $ millions) 2024 2023 Cash & Cash Equivalents $ 945 ABL Revolver, incl. FILO due 2027 1 - Cash $ 945 $ 1,110 Term Loan B due 2031 632 Total Debt 2,405 2,535 7.000% Secured Notes due
Slide 22: Financial Outlook FY 2025
Financial Outlook FY 2025 Adient – PUBLIC
Slide 23: Key assumptions
Key assumptions Key production assumptions (October S&P Global estimates) FY25 sales expected to drop (3% FX adjusted), ADNT FY25 Sales / Volume primarily driven by lower customer (units in millions) FY24 S&P FY25 S&P y-o-y ∆ projected actual forecast sales y-o-y % production (FX adj.) N. America 15
Slide 24: FY25 Outlook – key financial metrics
FY25 Outlook – key financial metrics Consolidated sales ~$14.1B - $14.4B > Sales expected in the $14.1B - $14.4B range, driven by lower expected production volumes Adj.-EBITDA ~$850M - $900M > Adj.-EBITDA expected to be in the $850M - $900M range > Equity income down slightly due to restructuring of
Slide 25: Adj.-EBITDA walk FY24 to FY25 guidance mid-point
Adj.-EBITDA walk FY24 to FY25 guidance mid-point > Ongoing business performance from automation FY24 Actual to FY25 Guidance Adj.- EBITDA and modularity projects and other efficiencies expected primarily in the Americas and Europe. $100 > Volume pressure in Americas and Europe $880 $875 (especially
Slide 26: Appendix and financial reconciliations
Appendix and financial reconciliations FY 2024 Fourth Quarter Adient – PUBLIC
Slide 27: Q4 FY24 Adjusted-EBITDA: Americas
Q4 FY24 Adjusted-EBITDA: Americas $180 Q4FY24 of $116M, up $16M y-o-y, driven $ in millions by: $336 $(89) $375 $(27) $(25) > Improved business performance of Full Year $52M, resulting from better net 4.7% 5.5% material margin (driven by customer 5.5% recoveries), reduced input costs, and FY2023 Bus
Slide 28: Q4 FY24 Adjusted-EBITDA: EMEA
Q4 FY24 Adjusted-EBITDA: EMEA Q4FY24 of $28M, down $20M y-o-y, driven by: $5 $4 $4 $ in millions $232 > Improved business performance of $7M, driven by better net material margin $(48) $155 Full Year $(42) performance, partially offset by increased 4.5% labor costs 3.1% > Volume and mix was a $16M h
Slide 29: Q4 FY24 Adjusted-EBITDA: APAC
Q4 FY24 Adjusted-EBITDA: APAC $24 $ in millions $6 $2 Q4FY24 of $112M, down $1M y-o-y, driven by: $464 $439 $(38) $(19) > Improved business performance of $12M, Full Year mainly due to improved net material margin 15.0% 14.7% > Volume and mix was a $15M headwind resulting from lower customer product
Slide 30: 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 31: Non-GAAP reconciliations – EBIT, adj.-EBIT, adj.-EBITDA, and adj.-net income
Non-GAAP reconciliations – EBIT, adj.-EBIT, adj.-EBITDA, and adj.- net income FY2024 Fourth Quarter Earnings Call Adient – PUBLIC November 8, 2024 31
Slide 32: Non-GAAP reconciliations – adj. income tax expense and effective tax rate
Non-GAAP reconciliations – adj. income tax expense and effective tax rate (d) Adjusted income tax expense and effective tax rate Three Months Ended September 30 Twelve Months Ended September 30 (in $ millions, except effective tax rate) 2024 2023 2024 2023 Income Income Income Income Income (loss) t
Slide 33: Non-GAAP reconciliations – adj. EPS and adj.-equity income
Non-GAAP reconciliations – adj. EPS and adj.-equity income FY2024 Fourth Quarter Earnings Call Adient – PUBLIC November 8, 2024 33
Slide 34: Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt
Non-GAAP reconciliations – adj. interest expense, free cash flow, net debt leverage ratio, consolidated & unconsolidated sales (FX adj.) Consolidated Sales (FX adjusted) (in $ millions) Consolidated Net Sales Q1 Q2 Q3 Q4 FY2023 As reported $ 3,699 $ 3,912 $ 4,055 $ 3,729 $ 15,395 FX Impact 56 (28) (
Slide 35: 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
Slide 36: Non-GAAP reconciliation – footnote addendum
Non-GAAP reconciliation – footnote addendum (1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance. (2) Reflects restructuring charges for costs that are probable and reasonably estimable and one-time ass