EX-99.1 2 d459019dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

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Adient Investor Meeting November 2017    Improving the experience of a world in motion    

 


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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 the meaning of the Private Securities Litigation Reform Act of 1995. In this document, statements regarding Adient’s future financial position, sales, costs, earnings, cash flows, other measures of results of operations, capital expenditures or debt levels and plans, objectives, outlook, targets, guidance or goals are forward-looking statements. Words such as “may,” “will,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “should,” “forecast,” “project” or “plan” or terms of similar meaning are also generally intended to identify forward-looking statements. Adient cautions that these statements are subject to numerous important risks, uncertainties, assumptions and other factors, some of which are beyond Adient’s control, that could cause Adient’s actual results to differ materially from those expressed or implied by such forward-looking statements, including, among others, risks related to: the ability of Adient to meet debt service requirements, the ability and terms of financing, general economic and business conditions, the strength of the U.S. or other economies, automotive vehicle production levels, mix and schedules, energy and commodity prices, the availability of raw materials and component products, currency exchange rates, the ability of Adient to effectively integrate the Futuris business, and cancellation of or changes to commercial arrangements. A detailed discussion of risks related to Adient’s business is included in the section entitled “Risk Factors” in Adient’s Annual Report on Form 10-K for the fiscal year ended September 30, 2016 filed with the SEC on November 29, 2016 and quarterly reports on Form 10-Q filed with the SEC, available at www.sec.gov. Potential investors and others should consider these factors in evaluating the forward-looking statements and should not place undue reliance on such statements. The forward-looking statements included in this document are made only as of the date of this document, unless otherwise specified, and, except as required by law, Adient assumes no obligation, and disclaims any obligation, to update such statements to reflect events or circumstances occurring after the date of this document. In addition, this document includes certain projections provided by Adient with respect to the anticipated future performance of Adient’s businesses. Such projections reflect various assumptions of Adient’s management concerning the future performance of Adient’s businesses, which may or may not prove to be correct. The actual results may vary from the anticipated results and such variations may be material. Adient does not undertake any obligation to update the projections to reflect events or circumstances or changes in expectations after the date of this document or to reflect the occurrence of subsequent events. No representations or warranties are made as to the accuracy or reasonableness of such assumptions or the projections based thereon. This document also contains non-GAAP financial information because Adient’s management believes it may assist investors in evaluating Adient’s on-going operations. Adient believes these non-GAAP disclosures provide important supplemental information to management and investors regarding financial and business trends relating to Adient’s financial condition and results of operations. Investors should not consider these non-GAAP measures as alternatives to the related GAAP measures. A reconciliation of non-GAAP measures to their closest GAAP equivalent is included in the appendix. Reconciliations of non-GAAP measures related to FY2018 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations. Adient has revised previously reported results to adjust equity income from a non-consolidated joint venture related to engineering costs that were inappropriately capitalized. Adient has also revised previously reported net sales and cost of sales to present certain components of a contract on a net basis. Please see Note 4 (Revisions to Previously Reported Amounts) to the Appendix to the Adient earnings release dated November 2, 2017 for a discussion of revisions to previously reported amounts. Investor meeting: November 2017 2 Adient – Improving the experience of a world in motion


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Meeting agenda ˃ Company & business overview ˃ China Review ˃ Financial overview ˃ Appendix Investor meeting: November 2017 3 Adient – Improving the experience of a world in motion    


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Adient’s vision and mission bring focus to our success VISION Improving the experience of a world in motion MISSION We will be the world-class automotive seating supplier through leadership in cost, quality, launch execution, and customer satisfaction. We will leverage our capabilities to drive growth, both within and beyond the automotive industry. Investor meeting: November 2017 4 Adient – Improving the experience of a world in motion    


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Adient today Adient is the largest global automotive seating supplier,    #1 supporting all major automakers in the differentiation of their vehicles through superior quality, technology and performance FY 2017 Global market Revenue by share* geography*    ~$16.2B    We supply one Consolidated revenue    Americas    Europe / out of every three Lear Africa Adient automotive seats ~$8.7B 31% 33% 26% worldwide Unconsolidated seating revenue Faurecia 6%    ~$8.6B 37% 25M+ Other China Asia /    Unconsolidated interiors revenue Toyota Pacific seat systems Magna Boshoku per year NYSE: ADNT *Adient share includes non-consolidated revenue (mkt share based on FY16). Revenue by geography based on FY2017 (consolidated and non-consolidated). Source: IHS Automotive and management estimates. Investor meeting: November 2017 5 Adient – Improving the experience of a world in motion    


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Adient delivers the broadest and most complete range of seating and interior products > Complete seat / Just-In-Time manufacturing > Front and rear seat structures > Track, recliner, manual height adjuster and lock mechanisms > Foam cushions and backs > Head restraints and armrests > Trim covers and fabrics > RECARO high performance seating > Commercial vehicle seating > Instrument panels > Floor consoles > Door panels > Overhead consoles > Decorative trim Investor meeting: November 2017 6 Adient – Improving the experience of a world in motion    


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We are located right where our customers need us most Global locations 250+ facilities 37 Europe countries North America 106 Asia* 76 52 Global employees Africa 86,000 South America 8 8 *Does not include China JVs 7    


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Our customer portfolio closely mirrors our customer’s global market share Others JLR 5% Ford 2% 12% > Industry leading diversification BMW 5% We work with the Volvo > By customer 5% GM Largest customer accounts for 12% 8% world’s largest Renault of total consolidated sales 4% N. American OEM’s automotive 30% European > By platform Mercedes OEM’s FCA 7% 36% Largest platform accounts for ~5% manufacturers 10% of total consolidated sales across the globe Asian    OEM’s 29% > Ability to leverage products VW Toyota across customers and regions 12% 9% Honda > Scale provides leverage to 6% Nissan 10% optimize cost structure    Hyundai/ Kia 5% Based on ADNT’s FY17 Consolidated Sales    Investor meeting: November 2017 8 Adient – Improving the experience of a world in motion    


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Focused on advancing Adient’s investment thesis… Earnings growth: > On track towards goal of 200 bps improvement in the mid-term > SG&A leading the charge, contribution from metals expected in FY19 and FY20    Cash generation: > De-risking the balance sheet (prepayment of debt) > Supporting Adient’s profitable growth strategy (organic & inorganic) Market position: > Backlog growth continues to accelerate — further strengthening our market position > Growth and diversification beyond the automotive industry progressing to plan Investor meeting: November 2017 9 Adient – Improving the experience of a world in motion    


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Margin progression on track Adj. EBIT and Adj. EBITDA Margin (excluding equity income)1 —(50 – 150) bps +100—200 bps 7.7% 7.2% 7.47% 7.47% Plan FY17-FY20 7.10% 7.29%    6.7% FY19-FY20 6.83% +200 bps 6.2% 6.44% term +150 bps 5.7% 5.10% 5.23% 5.24% —5.2% 4.72% 4.94% Mid FY17-FY18 4.7% 4.48% 4.2% SG&A Benchmark Metals Growth Inv. / Other Targeted Improvement LTM Jun LTM Sep LTM Dec LTM Mar LTM Jun LTM Sep Savings ‘16 ‘16 ‘16 ‘17 ‘17 ‘17 Adj EBIT ex. equity income Adj EBITDA ex. equity income consolidated unconsolidated 76 bps Adj. EBIT improvement excluding equity 44 bps improvement from income thru 9/30/17 strong growth in equity Date income thru 9/30/17 Adient has delivered 120 to    ~44 bps thru 9/30/17 basis points of Adj. EBIT ~105 bps thru ~(45) bps thru ~31 bps thru 9/30/17 margin improvement 9/30/17 1 9/30/17 since June 2016 LTM Progress ~(15) bps thru 9/30/17 SG&A Benchmark Metals Growth Other Equity Income Savings Investment Improvement 1 – See appendix for detail and reconciliation to U.S. GAAP Investor meeting: November 2017 10 Adient – Improving the experience of a world in motion    


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Adient JV equity income and cash dividend summaryRobust growth continues in equity income EquityCash% and cash dividendsSources    income dividends Conversion >In FY17, equity income (fx adjusted) (as adjusted) 1 paid increased 12% y-o-y outpacing 2015$286M$193M67.5% unconsolidated sales growth of 11% (fxadjusted) 2016 $364M $199M 54.7% Equity income expected to increase over 2017 $394M $ 280M 71.1% 10% in FY18 vs. FY17    Cash conversion expected to be aboutFY15A-FY17 CAGR 17.4% 20.4% 70% in FY182018 (Estimate) $435M~70% 1 – See appendix for detail and reconciliation to U.S. GAAP 11Investor meeting: November 2017Adient – Improving the experience of a world in motion


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Cash generation > Earnings growth and margin expansion driving strong cash generation > Balanced approach to cash usage / capital allocation: —De-risking the balance sheet with prepayment of debt; Adient’s net leverage ratio at September 30, 2017 at 1.73X, down about 12% compared to 1.97X at September 30, 2016 —Net leverage ratio at September 30, 2017 at ~1.5x adjusting for Futuris acquisition —Supports ongoing actions to enhance shareholder value (quarterly dividend and share repurchase program) —Supports Adient’s profitable growth initiatives (organic & inorganic) > Significant improvement in free cash flow expected in mid-term, driven by: —Lower cash restructuring —Margin growth —Increasing dividend growth from China JVs For Non-GAAP and adjusted results, which include certain pro forma adjustments for FY16; see appendix for detail and reconciliation to U.S. GAAP Investor meeting: November 2017 12 Adient – Improving the experience of a world in motion    


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Market position – strengthening through growth Backlog growth continues to accelerate — further strengthening $’s Billions Seating backlog [VALUE] our market position [VALUE] > Three-year seating backlog increased ~22% y-o-y to about $3.0B $2.1 > Adient’s consolidated backlog accounts for 51% of the total seating backlog > New business wins coming from a diverse group of customers (Traditional, West Coast, Luxury) 2016-2018 2017-2019 2018-2020 Note: Backlog defined as won new business, plus high probability targeted business, less lost replacement business (backlog not adjusted for pricing, market volumes, or FX) Opportunistically pursuing inorganic & adjacent market growth > Acquisition of Futuris Group > Collaboration with Boeing > Collaboration with Autoliv Adient’s “growth engine” is beginning to accelerate Investor meeting: November 2017 13 Adient – Improving the experience of a world in motion    


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Global industry trends ask for new design solutions in seating    Global Industry trends Implications for seating    • Safety • Changes in vehicle architecture & • Electrification power managment • Slim & lightweight • Light-weight • Low block height • Connectivity • Smart, individualized heating & cooling • Urbanization    • Changes in vehicle features • Shared ownership/ride • Passenger health & safety status sensor • Internet of Things • Pre-adjustment of seat for shared mobility • Smart materials    • Autonomous driving • Changes in seating functionality & • Individualization safety • Multi-purpose swivel structure    • New shapes • “Business-class” type comfort seats    • New safety standards (crash requirements) Investor meeting: November 2017 14 Adient – Improving the experience of a world in motion    


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Meeting agenda ˃ Company & business overview ˃ China Review ˃ Financial overview ˃ Appendix Investor meeting: November 2017 15 Adient – Improving the experience of a world in motion    


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Adient is the largest automotive seating supplier in China We enjoy a clear leadership position in China    We generated We employ $8.1B 33,000 sales revenue in FY2017 highly engaged employees including >1,300 engineers We have We have 19 45% seating joint ventures PV market share Note: excluding YFAI Investor meeting: November 2017 16 Adient – Improving the experience of a world i    


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Adient China Footprint 19 Joint ventures, 73 manufacturing plants and 4 global tech centers YFAS SJA CQADNT BJA CFAA HQ & Plant FAA HQ & Plant CFAA GAAS Daqing Employees:    7,210 Employees:    1,075 FAA Harbin AYM Engineers:                247 Engineers:                10 Fabrics Jilin Changchun SJA HQ & Plant Tech Center (Global) Capabilities incl.: BJA HQ & Plant Shenyang Employees:    2,270 > Industrial Design Beijing Engineers:                37 > Engineering Dalian > Innovation Employees:                710 Langfang > Benchmark Engineers:                21 Tianjin > Craftsmanship > Prototyping Yantai YFAS HQ & Plant > FEA & Testing Yancheng Qingdao Huainan Yizheng Zhengzhou Employees:    8,649 Nantong Nanjing Wuxi Engineers:                487 CQADNT HQ & Plant Hefei Changshu Mianyang Haining hanghai Employees:                3,243 Wuhu AYM HQ & Plant Engineers:                114 Hangzhou Cixi Chengdu Wuhan Ningbo Employees:    2,130 Chongqing Nanchang Taizhou Engineers:                95 Changsha Fuzhou Notes: ADS (located in GAAS HQ & Plant Guangzhou Dongguan Shanghai) trim plant was not Liuzhou Fabrics* displayed here Employees:                1,181 Foshan Employees:                441 Note: excluding YFAI Engineers:                12 Investor meeting: November 2017 17 Adient – Improving the experience of a world in motion    


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Joint venture structure    Tailored Strategy for Each JVEquity Share Strategic PlanJoint Venture Chinese Group Partner OEM partnered with Chinese Auto Group Adient Partner Components for China & SAICAsia Pacific Sub-partners Regional growthYFAS49.99% 50.01% Low cost engineering andChang’An DongfenginnovationSeatingOperational Efficiency Leverage current CFAA FAW 49.0% 51.0% relationshipGrowth focus on BJABAIC51.0% 49.0% luxury segment SJA Brilliance50.0% 50.0% AYMSAIC Supply all non-FAW customers50.0% 50.0% Grow market shareComponentsFFAAFAWSupply all FAW customers 50.0% 50.0% Fabrics capabilitiesWFADWanfangFocus on global OEMs25.0% 75.0% ADNNG NNG Focus on local OEMs61.9%38.1% InteriorsYanfeng Automotive Interiors (YFAI) 30.0%70.0%2017 Equity Income: $394mm & Cash Dividends: $280mm 18Investor meeting: November 2017Adient – Improving the experience of a world in motion


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Adient China’s current seating market share in each big auto group % Adient’s JIT market share in each big auto group, based on 2016 production volume (PV) Where competitors have alliance with the auto group PV seating market share per each major auto group 4816K 3495K 3057K 2037K 1999K 1734K 100% 78% 61% 32% 32% 27% 26% SAIC Dongfeng FAW Changan BAIC GAC > Since 1997, JV model has advantaged us in each main auto group    > Our partner relationship has worked well and we expect to maintain our position Source : IHS Forecast, traditional passenger vehicle Market share information: Adient internal information Investor meeting: November 2017 19 Adient – Improving the experience of a world in motion    


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Leading position with western OEMs with opportunities with Asian and Local OEMs Seating* market share among each OEM Group European OEM 70% LEAR FSA Sitech Adient Share at    In-House N.A. OEM 77% LEAR FSA Global OEM 6.5% 23.5% C OEM Japanese OEM 31% Toyota Boshoku TS-Tech Tachi –S FSA JV Others 56% KR OEM 2016* 31.5% Korean OEM 35% DYMOS LEAR DAS Daewon / Others OEM MIX 13.1% JP OEM N.A. OEM 17.5% 7.9% EU OEM Chinese OEM 30% LEAR Opportunity for topline growth In-House 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60% 65% 70% 75% 80% 85% 90% 95% 100% > Leading position with European and U.S. based OEM groups > Opportunity to grow share w/ Asian OEMs through strategic initiatives aligned w/ Adient global CGs > White space with local Chinese OEMs *All Market share data is calculated based on 2016 actual PV production volume – total market size = ~22million; “In-House OEM” refers to BYD and Great Wall Motor    Investor meeting: November 2017 20 Adient – Improving the experience of a world in motion


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Unparalleled customer diversity and relationships in China Customer Mix by Volume Asian OEMs (w/o China) 19% European OEMs 40% Chinese OEMs 19% North American OEMs 22% Investor meeting: November 2017 21 Adient – Improving the experience of a world in motion


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SUV trends are beneficial to Adient’s growth China SUV Development Trend % share based on production volume Seating content per vehicle: ~$1000-$1,100 Share of SUV of total market (Left) Gobal OEM’s share in SUV (Right) ~$500-$600 ~$550-$650 60.0% 60.0% 45% 47% 44% 40% 40.0% 33% Average SUV SUV Local Brand JV Brand 20.0% 46% New business wins in 43% Audi Q5 Great Wall China are capturing the 0.0% 40.0% $68,000 Havel H6 additional content growth 2015 2016 2017 2018 2021 $18,000 related to the mix shift 1. We expect penetration of SUV in total PV VW Teramont Great Wall into SUVs market to continue to increase from 40% today $60,000 WEY to 47% by 2021 $26,000 2. Global OEM’s share in SUV segment is BMW X1 F49 Wuling expected to increase by ~3% in the next 5 $51,000 BAOJUN years $12,000 Toyota RAV4 3. Competition will likely intensify in this segment $32,100 Adient has the complete seating Data source: IHS Forecast Data source: Car price—OEM Website business of those vehicles Investor meeting: November 2017 22 Adient – Improving the experience of a world in motion    


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Premium market will continue to outpace the volume market in China    China PV Production YoY Growth ( Average market vs. Premium) Segment share 2016 vs. 2021e PV Avg.YoY Growth % Premium YoY Growth % 28.1% 29,6 28.2% 26,7 29,3 65.0% 62.3% 6.8% 9.6% 21,1 18,6 19,0 ˃ We expect the premium 17,6 13,9 2016 2021e segment to continue to 11,2 Premium Segment 8,0 8,6 outpace the mass market in Medium Segment 3,5 Entry Segment the next 10 years, powered by Data source: IHS Forecast 2012 2013 2014 2015 2016 2017e Passenger vehicle only the growing middle class as their disposable income Adient market share in each main premium brands increases 100% 2017 ˃ Our backlog helps ensure our Volvo 2021 Incremental (awarded business) leading position in this PSA DS 100% segment BMW 50% Volume 60% ˃ Growth opportunities with increase those later comers and new Daimler 17% MFA volume 32% increase OEMs Audi 54% Growth Opportunities New OEMs Data source: IHS Forecast 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Adient internal information Investor meeting: November 2017 23 Adient – Improving the experience of a world in motion    


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Market trends are strengthening our leading position Shift to SUV / MPV Premium segment China technology Ability to offset “price segment remains robust roadmap 2025 downs” > New business wins with > Strong and growing > Lightweight materials > Scale advantage both domestic and global position with Daimler, > Development of New > Mature business manufacturers’ JV BMW, Audi, and Volvo Energy Vehicles processes / proven programs will grow our > Significant driver of capability share in segment content growth > High level of localization    > Increased content on SUV    / MPV vehicles vs. sedans > Leveraging Adient’s / wagons customer / JV relationships Investor meeting: November 2017 24 Adient – Improving the experience of a world in motion    


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Importance of Chinese market will continue to increase Evolution of the Global Platforms Chinese OEM Technology roadmap 2025:    Leading Market    New OEMs World’s biggest electric Of Electrification vehicle market with aggressive growth plans Investor meeting: November 2017 25 Adient – Improving the experience of a world in motion    


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China’s unconsolidated financial strength 1 FY2013 – FY2017 Industry CNY in billions Adient Results Sales Net Cash 3 55.4 > Top-line growth 8.2 > Well capitalized Units, Millions in excess of balance sheets China Light Vehicle 34.6 industry growth across the Production 2 expected to various joint continue 2.3 ventures 27.8 FY FY FY FY 19.9 2013 2017 2013 2017 Net > NI supported by Dividend Income strong operating FY FY performance (13% 1.8 > Dividend growth 2013 2017 4.1    EBITDA growth, expected to and margins continue 2.2 between 11-12%)    0[VA > Expect to sustain LUE] strong margin 1 – Excludes YFAI; includes SJJ and BJJ Interiors prior    FY FY performance FY FY to July 2015 2013 2017 2013 2017 2 – Based on IHS volumes 3—Net cash at 12/31/16 was approximately $1.1B Investor meeting: November 2017 26 Adient – Improving the experience of a world in motion    


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Dissecting Adient’s 2018E earnings ($ in millions) Base Business 2018E Consolidated Business EBITDA (Including Equity Income) $1,725 (-) 2018E Equity Income    (435) 2018E Base Business EBITDA $1,290 Valued at Industry    EV / EBITDA Multiple China Joint Ventures Valued at Industry 2018E Equity Income    435 China P / E Multiple (+) Illustrative Taxes (@ 18%)1                90 (+) Illustrative Interest Expense2                —>$1B net cash at JV’s (+) Illustrative Depreciation & Amortization3    110 Used for Consolidated 2018E Illustrative China Proportionate EBITDA    635 Leverage Purposes Source: Management estimates 1 Assumes 2018E unconsolidated sales of ~18bn and illustrative seating and interior operating income margins of ~10% and ~4%, respectively. 2 Assumes no net interest expense as the JVs are in a consolidated net cash position. 3 Assumes D&A represents 1.5% of total unconsolidated sales.    Reconciliations of non-GAAP measures related to FY2018 guidance have not been provided due to the unreasonable efforts it would take to provide such reconciliations Investor meeting: November 2017 27 Adient – Improving the experience of a world in motion    


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Meeting agenda ˃ Company & business overview ˃ China Review ˃ Financial overview ˃ Appendix Investor meeting: November 2017 28 Adient – Improving the experience of a world in motion    


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FY 2017 full year key financials As Reported As Adjusted 1 $ millions, except per share data FY17 FY16 FY17 FY16 B/(W) Revenue $ 16,213 $ 16,790 $ 16,213 $ 16,790 -3% EBIT $ 1,193 $ 399 $ 1,244 $ 1,156 +8% Margin 7.4% 2.4% 7.7% 6.9% EBITDA N/A N/A $ 1,605 $ 1,511 +6% Margin 9.9% 9.0% Memo: Equity Income 2 $ 522 $ 344 $ 394 $ 364 +8% Tax Expense $ 99 $ 1,839 $ 149 $ 137 ETR 9.3% * 13.4% 13.4% Net Income $ 877 $ (1,546) $ 878 $ 798 +10% EPS Diluted $ 9.34 $ (16.50) $ 9.35 $ 8.51 +10% 1 – On an adjusted basis, which includes certain pro forma adjustments for FY16; see appendix for detail and reconciliation to U.S. GAAP 2 – Equity income included in EBIT & EBITDA * Measure not meaningful Investor meeting: November 2017 29 Adient – Improving the experience of a world in motion    


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Managing through seat structures & mechanisms                near-term headwinds    > Significant launch challenges impacting seat structures and mechanisms: Late design changes, engineering / manufacturing issues, supply chain interruptions and labor challenges creating launch inefficiencies     Launch headwinds expected to continue into early FY18 > Steel economics and “one-time” events (e.g. distressed supplier costs, Global Launches by FY flooding) have created additional headwinds 50 40 Metals performance down ~$35 million in Q4 vs. last year (including 30 material economics and ~$13 million in expedited freight) 20 38 36 38 35 27 10 19 16 > Several actions taken to mitigate the near-term headwinds: 14 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Supplemental resources added to key facilities Audit of upcoming 2018 launches to identify potential issues earlier Customer specific actions Despite near-term headwinds, the mid-term plan remains intact Investor meeting: November 2017 30 Adient – Improving the experience of a world in motion    


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Drivers of future earnings growth > Accelerating backlog growth Increased Profitability > Well positioned to capture growth in China through equity income from market leading JV > Improved operational efficiencies driven by: SG&A reduction Seat Structures and Mechanisms improvement (FY19 / FY20) Increased Cash Flow Integration of Futuris Implementation of world-class operating system Increased use of low-cost footprint (Mexico, Eastern Europe and China) > Upward trend in profitability expected to drive increased value to our shareholders Increased Value to Shareholders    Investor meeting: November 2017 31 Adient – Improving the experience of a world in motion    


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FCF Growth    Key Takeaways    > FY18 expected results include:     A heightened level of cash restructuring Millions) (~$170M core business + ~$20M Futuris)     “Becoming Adient” costs re-calendarized in into FY18 (~$45M) ( $ FCF > Expected increase in FCF driven by:     Lower cash restructuring Run-off of “Becoming Adient” costs $525 Cumulative Growth drivers: Margin improvement Increasing JV dividends 2018 FCF Restructuring Becoming Growth1 Capex/Other 2019 FCF Futuris benefit Adient Incremental Impact of Cash Flow Items > Strong backlog and growth opportunities expected to result in a modest increase in capital spending in FY19    1—Includes margin growth, JV dividends, and Futuris    Investor meeting: November 2017 32 Adient – Improving the experience of a world in motion    


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Value drivers for Adient stock ~55% VALUE DRIVERS ˃ Margin improvement of 200 bps vs. LTM June 2016 results net earnings ˃ Strong backlog growth, expected to drive top line growth in 2019 and beyond ˃ Proven ability to generate substantial cash flow Consolidated ˃ Largest market share with most capable global production / delivery capability    Results VALUE DRIVERS ~45% ˃ ~45% market share with high growth opportunity – Incremental content per vehicle driven by mix (CUV / SUV / luxury) net earnings – Shift away from local / in-house players as vehicles migrate to global platforms Unconsolidated ˃ Record of success (i.e., from 2013-2017) – ~13% CAGR in sales and EBITDA (stable and attractive margins) Results – ~38% CAGR in net cash despite ~23% CAGR in dividends Investor meeting: November 2017 33 Adient – Improving the experience of a world in motion    


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Unconsolidated results = higher quality earnings ADNT’s UNCONSOLIDATED RESULTS = HIGHER QUALITY EARNINGS equity income     ~25% of Adient’s EBITDA generated through equity income ~25% – Shown as EBITDA for accounting purposes, should be treated as net EBITDA income for valuation purposes (already reflects growth investments and taxes)     ~70% of Adient’s equity income in FY18 expected to convert into cash ~70% dividends – Cash conversion rate significantly higher vs. peer EBITDA conversion cash conversion rate of ~37%¹ – Adient conversion rate expected to increase if growth in China slows    Adient’s joint venture income model makes us structurally unique 1. Represents peer median 5-year average; Peers include Autoliv, Faurecia, Lear, Magna, Tenneco.    Investor meeting: November 2017 34 Adient – Improving the experience of a world in motion    


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Framework for valuing Adient    Primary—P/E Multiple Methodology Secondary—Blended Multiple Methodology Base Business EBITDA Multiple EBITDA Overview Adient EPS P/E Multiple JV Equity P/E Multiple Income    Provides full value for JV equity income (key contributor Common method currently used by Wall Street to value and cash flow) research analysts Captures benefit from lower corporate tax rate Provides easier comparison to core auto peers who are Considerations primarily valued on an EV / EBITDA basis Captures earnings impact from increased leverage at spin (as well as benefit from de-levering over time) Does not provide proper credit for tax rate decline, leverage at spin or JV equity income Investor meeting: November 2017 35 Adient – Improving the experience of a world in motion    


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APPENDIX    


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FINANCIAL RECONCILIATIONS    


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Non-GAAP financial measurements > Adjusted EBIT, Adjusted EBIT margin, Pro-forma adjusted EBIT, Pro-forma adjusted EBIT margin, Pro-forma adjusted EBITDA, Adjusted effective tax rate, Adjusted net income attributable to Adient, Pro-forma adjusted net income attributable to Adient, Adjusted earnings per share, Adjusted Free cash flow, Net debt, Net leverage, Adjusted SG&A, as well as other measures presented on an adjusted basis are not recognized terms under GAAP and do not purport to be alternatives to the most comparable GAAP amounts. Since all companies do not use identical calculations, our definition and presentation of these measures may not be comparable to similarly titled measures reported by other companies.    > Adjusted EBIT, Adjusted EBIT margin, Pro-forma adjusted EBIT, Pro-forma adjusted EBIT margin, Pro-forma adjusted EBITDA, Adjusted effective tax rate, Adjusted net income attributable to Adient, Pro-forma adjusted net income attributable to Adient, Adjusted earnings per share and Adjusted Free cash flow are measures used by management to evaluate the operating performance of the company and its business segments to forecast future periods. Adjusted EBIT is defined as income before income taxes and noncontrolling interests excluding net financing charges, restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, expenses associated with becoming an independent company, other significant non-recurring items, and net mark-to-market adjustments on pension and postretirement plans. General corporate and other overhead expenses are allocated to business segments in determining Adjusted EBIT. Adjusted EBIT margin is Adjusted EBIT as a percentage of net sales. Pro-forma adjusted EBIT is defined as Adjusted EBIT excluding pro-forma IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under our former parent. Pro-forma adjusted EBIT margin is Pro-forma adjusted EBIT as a percentage of net sales. Pro-forma adjusted EBITDA is defined as Pro-forma adjusted EBIT excluding depreciation and stock based compensation.     Adjusted effective tax rate is defined as adjusted income tax provision as a percentage of adjusted income before income taxes. Adjusted net income attributable to Adient is defined as net income attributable to Adient excluding restructuring, impairment and related costs, purchase accounting amortization, transaction gains/losses, Becoming Adient/separation costs, other significant non-recurring items, net mark-to-market adjustments on pension and postretirement plans, and the tax impact of these items. Pro-forma adjusted net income attributable to Adient is defined as Adjusted net income attributable to Adient excluding pro-forma IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under our former parent, pro-forma interest expense that Adient would have incurred had it been a stand-alone company, the tax impact of these items and the pro-forma impact of the tax rate had Adient been operating as a stand-alone company domiciled in its current jurisdiction. Adjusted free cash flow is defined as cash from operating activities plus payments from our former parent (related to reimbursements for cash management actions and capital expenditures), less capital expenditures. Management uses these measures to evaluate the performance of ongoing operations separate from items that may have a disproportionate impact on any particular period. These measures are also used by securities analysts, institutional investors and other interested parties in the evaluation of companies in our industry > Net debt is calculated as gross debt less cash and cash equivalents. > Net leverage is calculated as net debt divided by last twelve months (LTM) pro-forma adjusted-EBITDA. 38 Adient – Improving the experience of a world in motion    


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Non-GAAP reconciliations EBIT, Pro-forma Adjusted EBIT, Pro-forma Adjusted EBITDA FY16 Actual FY17 Actual Last Twelve Months Ended Actual Actual Actual Actual Actual Actual (in $ millions) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Jun ‘16 Sep ‘16 Dec ‘16 Mar ‘17 Jun ‘17 Sep ‘17 Net income attributable to Adient $ (119) $ 133 $ (781) $ (17) $ (881) $ 142 $ 190 $ 201 $ 344 $ (784) $ (1,546) $ (1,537) $ (566) $ (348) $ 877 Income attributable to noncontrolling interests 13 17 23 21 23 22 24 22 17 74 84 89 90 91 85 Income Tax Provision 284 53 838 136 812 28 37 39 (5) 1,311 1,839 1,814 1,013 916 99 Financing Charges 1 2 4 2 14 35 33 31 33 9 22 55 84 113 132 Earnings before interest and income taxes $ 179 $ 205 $ 84 $ 142 $ (32) $ 227 $ 284 $ 293 $ 389 $ 610 $ 399 $ 421 $ 621 $ 772 $ 1,193 Separation costs (1) — 60 72 122 115 10 254 369 319 247 125 10 Becoming Adient (1) 15 23 20 37 15 38 58 95 Purchase accounting amortization (2) 9 9 10 9 9 10 9 10 14 37 37 38 37 38 43 Restructuring related charges (3) 4 4 3 3 4 8 10 10 9 14 14 18 25 32 37 Other items(4) (7) (21) (35) (22) (1) 13 3 (85) (79) (45) (10) 12 16 Restructuring and impariment costs (5) 182 169 75 88 6 40 426 332 332 169 94 46 Pension mark-to-market (6) 6 110 (45) 6 110 110 110 110 (45) Gain on previously held interest (9) (151) (151) Gain on business divestiture (137) (137) Adjusted EBIT $ 236 $ 257 $ 303 $ 329 $ 293 $ 283 $ 332 $ 333 $ 296 $ 1,125 $ 1,182 $ 1,208 $ 1,237 $ 1,241 $ 1,244 Pro-forma IT dis-synergies (8) (6) (6) (7) (6) (7) (25) (26) (20) (13) (7) -Pro-forma Adjusted EBIT $ 230 $ 251 $ 296 $ 323 $ 286 $ 283 $ 332 $ 333 $ 296 $ 1,100 $ 1,156 $ 1,188 $ 1,224 $ 1,234 $ 1,244 Stock based compensation (7) (4) 1 5 14 8 4 11 8 6 16 28 31 37 31 29 Depreciation 77 82 81 77 87 83 78 83 88 317 327 328 325 331 332 Pro-forma Adjusted EBITDA $ 303 $ 334 $ 382 $ 414 $ 381 $ 370 $ 421 $ 424 $ 390 $ 1,433 $ 1,511 $ 1,547 $ 1,586 $ 1,596 $ 1,605 1. Reflects incremental expenses associated with becoming an independent company and expenses associated with the separation from Johnson Controls International. 2. Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income. 3. Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. 4. First quarter 2017 primarily consists of $12M of initial funding of the Adient foundation. Fourth quarter of 2017 reflects $3 million of transaction costs associated with the acquisition of Futuris. Also reflects a first quarter 2016 $13 million favorable commercial settlement, second quarter 2016 $22 million favorable settlement from prior year business divestitures and a $6 million favorable legal settlement, and a third quarter 2016 $14 million favorable legal settlement. Also reflected is a multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent in the amount of $8 million, $7 million, $8 million and $1 million in the first, second, third, and fourth quarters of 2016, respectively. 5. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420. 6. Reflects net mark-to-market adjustments on pension and postretirement plans. 7. Stock based compensation excludes $2 million, $5 million, $3 million, and $6 million of expense in the first, second, third and fourth quarters of 2017, respectively, which is included in Becoming Adient costs discussed above. 8. Pro-forma amounts include IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under JCI, interest expense that Adient would have incurred had it been a stand-alone company and the impact of the tax rate had Adient been operating as a stand-alone company domiciled in its current jurisdiction. 9. Adient amended the agreement with a seating joint venture in China, giving Adient control of the previously non-consolidated JV. Adient began consolidating in July 2017 and was required to apply purchase accounting, including recognizing a gain on our previously held interest, which has been recorded in equity income. 39    


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Non-GAAP reconciliations Adjusted Net Income Adjusted Net Income Adjusted Diluted EPS Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended September 30 September 30 September 30 September 30 (in $ millions) 2017 2016 2017 2016 2017 2016 2017 2016 Net income attributable to Adient $ 344 $ (881) $ 877 $    (1,546) Diluted earnings per share as reported $ 3.67 $ (9.40) $ 9.34 $    (16.50) Separation costs (1) — 115 10 369 Separation costs (1) — 1.23 0.11 3.94 Becoming Adient (1) 37 — 95 —Becoming Adient (1) 0.39 —1.01 -Purchase accounting amortization (2) 14 9 43 37 Purchase accounting amortization (2) 0.15 0.10 0.46 0.39 Restructuring related charges (3) 9 4 37 14 Restructuring related charges (3) 0.10 0.04 0.39 0.15 Pension mark-to-market (6) (45) 110 (45) 110 Pension mark-to-market (6) (0.48) 1.17 (0.48) 1.17 Other items (4) 3 (1) 16 (79) Other items (4) 0.03 (0.01) 0.17 (0.84) Restructuring and impairment costs (5) 40 88 46 332 Restructuring and impairment costs (5) 0.43 0.94 0.49 3.55 Gain on previously held interest (7) (151) — (151) —Gain on previously held interest (7) (1.61) — (1.61) -Tax impact of above adjustments and one time tax items (32) 756 (50) 1,591 Tax impact of above adjustments and one time tax items (0.34) 8.06 (0.53) 16.97 Adjusted net income attributable to Adient $ 219 $ 200 $ 878 $ 828 Adjusted diluted earnings per share $ 2.34 $ 2.13 $ 9.35 $ 8.83 Pro-forma IT dis-synergies (6) — (7) — (26) Pro-forma IT dis-synergies (6) — (0.07) — (0.28) Pro-forma net financing charges (6) — (21) — (115) Pro-forma net financing charges (6) — (0.23) — (1.22) Tax impact of above pro-forma adjustments — 9 — 30 Tax impact of above pro-forma adjustments — 0.10 — 0.32 Pro-forma effective tax rate adjustment (6) — 21 — 81 Pro-forma effective tax rate adjustment (6) — 0.22 — 0.86 Pro-forma Adjusted net income attributable to Adient $ 219 $ 202 $ 878 $ 798 Pro-forma Adjusted diluted earnings per share $ 2.34 $ 2.15 $ 9.35 $ 8.51 1. Reflects incremental expenses associated with becoming an independent company and expenses associated with the separation from JCI. 2. Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income. 3. Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. 4. First quarter 2017 primarily consists of $12M of initial funding of the Adient foundation. Fourth quarter of 2017 reflects $3 million of transaction costs associated with the acquisition of Futuris. Also reflects a first quarter 2016 $13 million favorable commercial settlement, second quarter 2016 $22 million favorable settlement from prior year business divestitures and a $6 million favorable legal settlement, and a third quarter 2016 $14 million favorable legal settlement. Also reflected is a multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent in the amount of $8 million, $7 million, $8 million and $1 million in the first, second, third, and fourth quarters of 2016, respectively. 5. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420. 6. Pro-forma amounts include IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under JCI, interest expense that Adient would have incurred had it been a stand-alone company and the impact of the tax rate had Adient been operating as a stand-alone company domiciled in its current jurisdiction. 7. Adient amended the agreement with a seating joint venture in China, giving Adient control of the previously non-consolidated JV. Adient began consolidating in July 2017 and was required to apply purchase accounting, including recognizing a gain on our    40    previously held interest, which has been recorded in equity income.    


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Non-GAAP reconciliations Free Cash Flow Free Cash Flow Adjusted EBITDA to Free Cash Flow Three Months Ended Twelve Months Ended Three Months September 30 September 30 Ended September 30 (in $ millions) 2017 2016 2017 2016 (in $ millions) 2017 Operating cash flow $ 446 $    (1,478) $ 746 $    (1,034) Adjusted EBITDA $ 390 Less: Capital expenditures (160) (125) (577) (437) (-) Interest Expense (33) Cash from former parent — — 315 -(-) Taxes (16) Adjusted Free cash flow $ 286 $    (1,603) $ 484 $    (1,471) (-) Restructuring (Cash) (43) (+/-) Change in Trade Working Capital 137 (+/-) Net Equity in Earnings 120 (+/-) Other (109) Operating cash flow $ 446 (-) CapEx (160) Adjusted Free cash flow $ 286    


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Non-GAAP reconciliations Net Debt and Adjusted Equity Income Net Debt and Net Leverage Adjusted Equity Income Three Months Ended Twelve Months Ended September 30 September 30 September 30 September 30 (in $ millions) 2017 2016 (in $ millions) 2017 2016 2017 2016 2015 (1) Equity income as reported $ 248 $ 93 $ 522 $ 344 $ 281 Cash $ 709 $ 550 Purchase accounting amortization (3) 6 5 22 20 5 (2) Total Debt 3,478 3,521 Gain on previously held interest (4) (151) —(151) — -Net Debt $ 2,769 $ 2,971 YFAI restructuring — —1 — -Adjusted equity income $ 103 $ 98 $ 394 $ 364 $ 286 Pro-forma Adjusted EBITDA (last twelve months) 1,605 1,511 Net Leverage 1.73x 1.97x 1. Cash at September 30, 2016 is pro-forma cash based on the preliminary funding of Adient’s opening cash balance on October 31, 2016. 2. Total debt at September 30, 2016 has been revised to include debt issuance costs as a reduction of the carrying amount of the debt in accordance with ASU 2015-03, which was adopted retrospectively by the company in Q1 2017. 3. Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income. 4. Adient amended the agreement with a seating joint venture in China, giving Adient control of the previously non-consolidated JV. Adient began consolidating in July 2017 and was required to apply purchase accounting, including recognizing a gain on our previously held interest, which has been recorded in equity income.    


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Non-GAAP reconciliations Adjusted Income before Income Taxes, Financing Charges, and Segment Adjusted EBIT Adjusted Income before Income Taxes Three Months Ended September 30 Twelve Months Ended September 30 (in $ millions) 2017 2016 2017 2016 Income before Effective Income before Effective Income before Effective Income before Effective Tax impact Tax impact Tax impact Tax impact Income Taxes tax rate Income Taxes tax rate Income Taxes tax rate Income Taxes tax rate As reported $ 356 $ (5) -1.4% $ (46) $ 812 * $ 1,061 $ 99 9.3% $ 377 $ 1,839 * Adjustments, including prior year pro-forma impacts (93) 32 -34.4% 297 (786) * 51 50 98.0% 642 (1,702) * As adjusted $ 263 $ 27 10.3% $ 251 $ 26 10.3% $ 1,112 $ 149 13.4% $ 1,019 $ 137 13.4% * Measure not meaningful Financing Charges Adjusted EBIT/Pro-forma adjusted EBIT by segment Three Months Ended Twelve Months Ended Three Months Ended Twelve Months Ended September 30 September 30 September 30 September 30 (in $ millions) 2017 2016 2017 2016 (in $ millions) 2017 2016 2017 2016 Net financing charges as reported $ 33 $ 14 $ 132 $ 22 Seating (includes 2016 pro-forma IT dis-synergies) $ 274 $ 262 $ 1,151 $ 1,065 Pro-forma net financing charges (1) 21 115 Interiors 22 24 93 91 Pro-forma adjusted net financing charges $ 35 $ 137 Pro-forma adjusted EBIT $ 296 $ 286 $ 1,244 $ 1,156 1. Pro-forma amounts include IT dis-synergies as a result of higher stand-alone IT costs as compared to allocated IT costs under JCI, interest expense that Adient would have incurred had it been a stand-alone company and the impact of the tax rate had Adient been operating as a stand-alone company domiciled in its current jurisdiction.


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Non-GAAP reconciliations Reported to Adjusted SG&A FY16 Actual FY17 Actual Last Twelve Months Ended Actual Actual Actual Actual Actual Actual Actual (in $ millions) Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Jun ‘16 Sep ‘16 Dec ‘17 Mar ‘17 Jun ‘17 Sep ‘17 Selling, general and administrative costs $ 225 $ 253 $ 252 $ 315 $ 402 $ 217 $ 178 $ 169 $ 127 $    1,045 $    1,222 $    1,186 $    1,112 $ 966 $ 691 Separation costs (1) — (60) (72) (122) (115) (10) — — — (254) (369) (319) (247) (125) (10) Becoming Adient (1) — — — — — (6) (10) (6) (18) — — (6) (16) (22) (40) Purchase accounting amortization (2) (3) (4) (5) (4) (4) (5) (4) (3) (8) (16) (17) (18) (17) (16) (20) Restructuring related charges (3) — — — — (2) — — — (2) — (2) (2) (2) (2) (2) Other non-recurring items (4) 7 21 35 22 1 (13) — — (3) 85 79 45 10 (12) (16) Pension mark-to-market (5) (3) — — — (94) — — — 41 (3) (94) (94) (94) (94) 41 Adjusted SG&A $ 226 $ 210 $ 210 $ 211 $ 188 $ 183 $ 164 $ 160 $ 137 $ 857 $ 819 $ 792 $ 746 $ 695 $ 644 Sales ($Millions) $    4,150 $    4,220 $    4,290 $    4,348 $    3,932 $    4,026 $    4,201 $    4,007 $    3,979 $ 17,008 $ 16,790 $ 16,596 $ 16,507 $ 16,166 $ 16,213 Adjusted SG&A 226 210 210 211 188 183 164 160 137 857 819 792 746 695 644 % of Sales 5.45% 4.98% 4.90% 4.85% 4.78% 4.55% 3.90% 3.99% 3.44% 5.04% 4.88% 4.77% 4.52% 4.30% 3.97% 1. Reflects incremental expenses associated with becoming an independent company and expenses associated with the separation from JCI. 2. Reflects amortization of intangible assets including those related to the YFAI joint venture recorded within equity income. 3. Reflects restructuring related charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420. 4. First quarter 2017 primarily consists of $12M of initial funding of the Adient foundation. Fourth quarter of 2017 reflects $3 million of transaction costs associated with the acquisition of Futuris. Also reflects a first quarter 2016 $13 million favorable commercial settlement, second quarter 2016 $22 million favorable settlement from prior year business divestitures and a $6 million favorable legal settlement, and a third quarter 2016 $14 million favorable legal settlement. Also reflected is a multi-employer pension credit associated with the removal of costs for pension plans that remained with the former Parent in the amount of $8 million, $7 million, $8 million and $1 million in the first, second, third, and fourth quarters of 2016, respectively. 5. Reflects net mark-to-market adjustments on pension and postretirement plans. 44    


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Prior Period Results     FY16 ActualFY17 ActualLast Twelve Months Ended ActualActualActualActualActualActualActual Q4 FY15Q1 FY16Q2 FY16Q3 FY16Q4 FY16Q1 FY17Q2 FY17Q3 FY17Q4 FY17Jun ‘16Sep ‘16Dec ‘16Mar ‘17Jun ‘17Sep ‘17 Sales ($Mils.)$ 4,150$ 4,220$ 4,290$ 4,348$ 3,932$ 4,026$ 4,201$ 4,007$ 3,979$ 17,008$ 16,790$ 16,596$ 16,507$ 16,166$ 16,213 Adjusted EBIT2302512963232862833323332961,1001,1561,1881,2241,2341,244 % of Sales5.54%5.95%6.90%7.43%7.27%7.03%7.90%8.31%7.44%6.47%6.89%7.16%7.42%7.63%7.67% Adjusted EBITDA3033343824143813704214243901,4331,5111,5471,5861,5961,605 % of Sales7.30%7.91%8.90%9.52%9.69%9.19%10.02% Q1-201610.58%9.80%8.43%9.00%9.32%9.61%9.87%9.90% Adj Equity Income7295809198999498103338364368382389394 Adj EBIT Excl Equity158156216232188184238235193762792820842845850 % of Sales3.81%3.70%5.03%5.34%4.78%4.57%5.67%5.86%4.85%4.48%4.72%4.94%5.10%5.23%5.24% Adj EBITDA Excl Equity2312393023232832713273262871,0951,1471,1791,2041,2071,211 % of Sales5.57%5.66%7.04%7.43%7.20%6.73%7.78%8.14%7.21%6.44%6.83%7.10%7.29%7.47%7.47% 45