Adient Capital Allocation and China Business Update
A bright future lies ahead
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Since FY19, Adient's focused strategy
and "back-to-basics" mindset has
placed the company on a solid path
to significantly improving margins
As the self-help actions have taken
root, the company is solidly on track
to achieve its goal of 8.0%-8.5%
margins
In addition to operational
Normalized
production, S&P
forecasted global
volumes for FY25
5.2%
Inflationary
pressures to subside
or be resolved
commercially
100 bps
100 bps
100 bps
ADIENT
8.0% -
8.5%
Balance in
/ balance
out of
platforms,
VA/VE
improvements, the company has
successfully transformed its balance
sheet
As the earnings and margin profile of
the company continue to improve,
Adient expects to generate a
significant amount of free cash flow
Current
Guide
Volume
to 90M
Inflationary Headwinds
Recovered / Resolved
Business
Performance
Earnings
Potential
FY23
EBITDA Margins (ex. Equity income)
Future state
Interest expense stable
Cash taxes steady resulting from tax initiatives
EBITDA growth
Positive FCF
Restructuring heavy lift completed
Capex discipline and re-use
converts to FCF
Supported by earnings and margin growth, Adient is successfully transitioning to a cash
generating company
J.P. Morgan China Investor Meeting
Adient PUBLIC
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