#1FY 2018 Fourth Quarter Earnings Call November 9, 2018 NT ADIENT Improving the experience of a world in motion#2Important information ADIENT 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 impact of tax reform legislation through the Tax Cuts and Jobs Act, uncertainties in U.S. administrative policy regarding trade agreements, tariffs and other international trade relations, the ability of Adient to execute its SS&M turnaround plan, the ability of Adient to identify, recruit and retain key leadership, 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, 2017 filed with the SEC on November 22, 2017 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 are included in the appendix. 2 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#3Agenda Introduction Mark Oswald Vice President, Global Investor Relations Business update Douglas DelGrosso President and Chief Executive Officer Financial review Jeffrey Stafeil Executive Vice President and Chief Financial Officer Q&A 3 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion ADIENT#4Douglas DelGrosso introduction ADIENT Chassix Doug brings significant operational and turnaround experience to Adient Timeframe 2016 - 2018 • Henniges Automotive 2012-2015 • Doug DelGrosso TRW Automotive 2007-2012 President and CEO Joined Adient October 1, 2018 Member of Board of Directors Lear Corporation 1984 - 2007 • • Select commentary Appointed CEO; responsible for developing and implementing a strategic plan to increase financial performance and improved customer relationships Appointed CEO; developed and successfully led the company's turnaround efforts Sold the company to AVIC Vice president and general manager global braking and suspension operations Consolidated and restructured independent businesses into a global organization Progression of key operational roles leading up to president and chief operating officer More than two decades seating experience 4 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#5Recent developments > Revenue and free cash flow were delivered in-line with our commitments; operational challenges continue to weigh on earnings Q4 revenue of $4.1B, up $166M y-o-y Q4 Adjusted-EBITDA of $251M 1, down $139M y-o-y 1 Q4 Adjusted-EPS of $1.30 1 1 Q4 free cash flow of $307M 1 (includes $48M benefit from an accounts receivable financing facility) Net debt of $2.7B and net leverage of 2.29x at September 30, 2018 1 ADNT LISTED NYSE ADIENT 00 00 5,000 21,500 54,144 Balance Sheet > Q4 GAAP results were impacted by ~$1.5B of one-time, non-cash charges, primarily associated with asset impairments and the recording of valuation allowances against certain deferred tax assets Suspended the company's quarterly cash dividend beginning in Q2 fiscal 2019 to increase financial flexibility and increase focus on debt reduction > Amended ADNT's main credit agreement, increasing the maximum total bank-adjusted net leverage covenant ratio to 4.5x from 3.5x Executed actions to improve cash flow, including the sale of the company airplanes and the corporate HQ building in Detroit 1- For Non-GAAP and adjusted results, see appendix for detail and reconciliation to U.S. GAAP 5 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion -#6CEO 100-day plan > Deep dive into fiscal 2019 profit plan > On-site follow-up reviews in Europe, Mexico and U.S. on top 5 underperforming plants (Asia visit planned for late November) > Deep dive reviews on top 5 critical launches which occur in the next 90 days. > Prioritize resources on most severe underperforming manufacturing sites and future launches, focus on SS&M and Seating Americas > Initiated face-to-face dialog with customers with critically strained relationships. 6 Initiated review process for all new business with particular focus on SS&M business Initial observations: Adient's challenges are being addressed - Need to ingrain a "back-to-basics" approach; every business, regardless of product, customer or region is expected to earn an acceptable ROI Emphasis on performance metrics with a focus on EBITDA and cash flow Although severe, Adient issues are not widespread and are isolated to a handful of plants and future launches across a few customers, all of which can be fixed over time There is no glaring level of uncompetitiveness at Adient FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion 100+ days ADIENT Days 1-50 Listen, visit the operations, and understand the challenges facing Adient Days 51 - 99 Align management team on path forward; drive. operational execution Days 100 and beyond Relentless focus on execution#7FINANCIAL REVIEW FY 2018 Fourth Quarter FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion ADIENT#8Factors impacting ADNT's Q4 GAAP results ADIENT > Q4 GAAP net loss impacted by a variety of one-time, non-cash charges which included: Performance related driven by on-going business performance issues that are expected to persist into the foreseeable future: SS&M asset impairment - an analysis resulted in an impairment charge to write- down long-lived assets, primarily fixed assets, to their fair values YFAI asset impairment - an analysis resulted in an impairment charge to write- down the value of Adient's investment in YFAI Deferred tax asset impairment - based on the history of earnings in certain geographic regions and forecasts of future earnings, it was determined the company would be unlikely to realize the benefit of certain deferred tax assets, resulting in the valuation allowances > Revision to provisional estimate for US Tax Reform (SAB 118) - impacts have been updated for FY18 to be $210M compared with the Q1 estimate of $258M > Other adjustments including "becoming Adient", restructuring charges, pension mark-to- market, and purchase accounting amortization also impacted Q4 GAAP results Factors impacting Q4 GAAP net loss Category Impairments: Impact ($ mils) • • SS&M YFAI $718 $322 Deferred tax assets $439 Tax matters: SAB 118 adjustment $(48) $49 $1,480 Other • Total FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 8 Adient - Improving the experience of a world in motion#9FY 2018 Q4 key financials ADIENT $ millions, except per share data As Reported As Adjusted 1 FY18 Q4 FY17 Q4 Lant FY18 Q4 FY17 Q4 B/(W) Revenue $ 4,145 $ 3,979 $ 4,145 $ 252845 100 8X 199 257 23 3,979 4% EBIT $ (1,044) $ 389 $ 149 $ 296 Margin -50% * 9.8% 3.6% 7.4% EBITDA B N/A N/A $ 251 $ 390 5 57 3.71 71.7 Margin -36% 6.1% 9.8% Memo: Equity Income 38 321,3 (Loss) 2 $ (281) $ 248 $ 89 $ 103 -14% 62 6 275 Tax Expense (Benefit) $ 9,95 929 206 256 $ (5) $ ETR (30) $ 27 -23.7% 5,01 136 05' -1.4% -26.3% 10.3% 8,67 53 57 Net Income (Loss) $ (1,355) $ 344 $ 122 $ 217 -44% 50,52 1 607 4 EPS Diluted $ (14.51) $ 3.67 $ 1.30 $ 2.32 1.15 7 2 * Measure not meaningful 1 - On an adjusted basis, see appendix for detail and reconciliation to U.S. GAAP Equity income included in EBIT & EBITDA -44% 9 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#10FY 2018 full year key financials ADIENT $ millions, except per share data As Reported As Adjusted FY18 FY17 FY18 FY17 Lant B/(W) Revenue $ 17,439 $ 16,213 $ 17,439 $ 16,213 8% 252845 100 8X 199 257 EBIT $ (977) $ 1,193 $ 770 $ Margin 1,244 -38% * 7.4% 4.4% 7.7% 23 EBITDA B N/A N/A $ 1,200 $ 1,605 5 3.71 Margin -25% 6.9% 57 71.7 9.9% Memo: Equity Income 38 321,3 (Loss) 2 $ (13) $ 522 $ 385 $ 394 -2% 62 6 275 Tax Expense $ 480 $ 99 9,95 929 206 $ 8 $ ETR 149 -42.8% 5,01 136 05' 9.3% 1.3% 13.4% 8,67 53 57 Net Income (Loss) $ (1,685) $ 877 $ 527 $ 876 -40% 50,52 1 607 4 EPS Diluted $ (18.06) $ 9.34 $ 5.62 $ 9.33 1.15 7 2 Equity income included in EBIT & EBITDA 1 - On an adjusted basis, see appendix for detail and reconciliation to U.S. GAAP -40% * Measure not meaningful 10 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#11Revenue - consolidated & unconsolidated 11 $ in Millions Consolidated sales ADIENT Unconsolidated Seating and SS&M $2,206 M $2,222 M $158 $64 $4,145 $3,979 $(56) Q4FY17 Acquisition Volume/Pricing FX Q4 FY18 Regional Performance (consolidated sales y-o-y growth by region) 1 Americas Europe APAC 1 Growth rates at constant foreign exchange FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion 13% (9)% 30% Year-over- year growth + 1% Up 3% excluding FX FY17 Q4 FY18 Q4 Unconsolidated Interiors $2,166 M $1,998 M FY17 Q4 FY18 Q4 Yanfeng Global Automotive Interiors Year-over- year growth -8% flat y-o-y excluding FX and low margin cockpit sales#12Q4 FY18 Adjusted-EBITDA > Despite the benefit of increased revenue, y-o-y Adjusted-EBITDA declined to $251M in fiscal Q4 > Business performance (impacted by elevated freight costs, operational waste, and negative material margin performance) was the primary factor behind the y-o-y decline > Macro factors, including increased commodity costs and the negative impact of foreign exchange, also weighed on the quarter > Performance within unconsolidated $ in millions $390 9.8% Lower SG&A expense primarily launch related $(48)M Freight / operational waste $(39)M Operating performance $(21)M Net material margin performance $(34)M FX net commodities $17 Operational inefficiencies Pricing/volume/mix ADIENT $(102) $251 $(38) $(16) 6.1% Q4FY17 Corporate Seating SS&M Interiors Q4FY18 Seating and SS&M remains strong; equity income up $2M y-o-y Memo: FY17 Q3 $424 Q2 $421 Q1 $370 FY18 $319 $363 $267 Note: Corporate includes central costs that are not allocated back to the operations including executive offices, communications, finance, corporate development, legal and marketing 12 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion -#13Q4 FY18 Adjusted-EBITDA: Seating > Q4 FY18 Seating Adjusted-EBITDA of $301M, down $102M y-o-y > The positive benefits associated with the Futuris acquisition and increased volume. were more than offset by negative business performance: Increased freight and operational waste (i.e. scrap and cost of poor quality) $ in millions $11 $12 $403 Negative operating performance (cost of inefficient operations) Net material margin performance (i.e. inability to offset customer price downs with supplier pricing and operational efficiencies) > Macro factors, including increased commodity costs $(12) M and the negative impact of foreign exchange $(7) M also weighed on the quarter Business performance: $(36)M Freight/ operational waste $(26)M Operating performance $(52)M Pricing primarily launch related $32M Material $(20)M Net material margin ADIENT 11.2% $(82) $(19) $301 $(13) $(8) $(3) 8.0% Q4 FY17 Futuris Volume / Mix Business FX/ Performance Commodities SG&A Growth (primarily Equity Income Q4FY18 engineering) Memo: FY17 > SG&A efficiencies more than offset by changes related to insurance and workers comp accruals and a reduction in service fee recoveries Q3 $413 Q2 $398 Q1 $364 13 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient Improving the experience of a world in motion FY18 $344 $411 $355#14Q4 FY18 Adjusted-EBITDA: SS&M > Q4 FY18 SS&M Adjusted-EBITDA of $(34)M, down $38M y-o-y Benefits from a reduction in growth investments and increased equity income were more than offset by negative business performance: Increased freight and operational waste (i.e. scrap and cost of poor quality) Negative operating performance (cost of inefficient operations) > Macro factors, including increased commodity costs $ (9) M and the negative impact of foreign exchange $(5)M also weighed on the quarter > Unfavorable SG&A primarily driven. by changes related to insurance and workers comp accruals Memo: $ in millions $4 0.6% FY17 Q3 $31 སྐྱ་ོ Q2 $40 Q1 $7 14 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion $12 ADIENT $7 Business performance: $(13)M Operating performance $(12)M Freight operational waste. $(5)M Pricing $4M Material } primarily launch related } $(1)M Net material margin $(26) (4.8)% $(14) $(11) $(6) $(34) Q4FY17 Growth Equity Income Business Performance FX/ Commodities SG&A Volume / Mix Q4 FY18 FY18 $(18) $(34) $(82)#15Cash flow & debt 1 15 ADIENT Free Cash Flow (1) (in $ millions) Adjusted-EBITDA Q4 FY18 FY18 $ 251 $ (-) Interest paid (57) 1,200 (143) (-) Taxes paid 5 (139) (-) Restructuring (Cash) (35) (174) Debt (1) > Cash and cash equivalents of $687M at September 30, 2018 > Net leverage of 2.29x at September 30, 2018 > Suspended the quarterly cash dividend to increase financial flexibility and increase focus on debt reduction > Amended the company's main credit agreement. The amendment increased the maximum total bank-adjusted net leverage covenant ratio to 4.5x from 3.5x (+/-) Change in Trade Working Capital 2 351 225 (+/-) Net Equity in Earnings (77) (95) (in $ millions) September 30 September 30 2018 2017 (+/-) Other 1 (195) Operating Cash flow $ 439 $ 679 Cash $ 687 $ 709 3 (-) CapEx ³ (132) (536) Total Debt 3,430 3,478 Free Cash flow $ 307 $ 143 Net Debt $ 2,743 $ 2,769 Memo: Free cash flow excluding benefits associated with the $ 259 $ 1 expansion of an accounts receivable financing facility initiated in Q3 Adjusted-EBITDA (last twelve months) $ 1,200 $ 1,605 1 - See appendix for detail and reconciliation to U.S. GAAP Net Leverage 2.29x 1.73x 2 Q4 and full year TWC of $303M and $83M, respectively when excluding the benefits associated with the expansion of an accounts receivable financing facility initiated in Q3 (Q4 benefit of $48M, full year benefit of $142M) 3 Capex by segment for the quarter: SS&M $56M, Seating $76M; and for the year: SS&M $255, Seating $281 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#16Other matters > Amended the company's main credit agreement, part of a focused effort to de-risk Adient's capital structure - The maximum total bank-adjusted net leverage covenant ratio increased to 4.5x from 3.5x Amending the credit agreement provides additional flexibility as the company executes its turnaround plan The company will continue to focus on de-risking the capital structure ADIENT - The valuation allowances will not impact cash taxes. > The FY2018 adjusted effective tax rate reflected the lower y-o-y earnings, geographic composition of earnings and reduced U.S. tax rate. 252.865 100 8X 207 ant Looking forward, the valuation allowances will result in an increased effective tax rate in FY2019 23 5 24 57 3.71 38 71.77 62 321,3 1,95 6275 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion 5,01 929 206 8.67 136 05 60,52 31.15 53 52 1 607 4 7 16#1717 Looking forward Continued execution of the CEO's 100-day plan > Prioritize resources on most severe underperforming manufacturing sites and future launches, focus on SS&M and Seating Americas > Reviewing all facets of the business to identify further profit improvement and cash generation opportunities > Unfortunately the challenges faced in 2018 will continue to have a significant impact on fiscal 2019 results Full year fiscal 2019 guidance expected to be provided in January FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion ADIENT AIRBAG#18APPENDIX AND FINANCIAL RECONCILIATIONS FY 2018 Fourth Quarter FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient Improving the experience of a world in motion 4 5 S ADIENT#19Non-GAAP financial measurements ADIENT > 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 free cash flow, Net debt and Net leverage as well as other measures presented on an adjusted basis are not recognized terms under U.S. GAAP and do not purport to be alternatives to the most comparable U.S. 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, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income attributable to Adient, Adjusted effective tax rate, Adjusted earnings per share, Adjusted equity income, Adjusted free cash flow, Net debt and Net leverage 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. Adjusted EBIT margin is adjusted EBIT as a percentage of net sales. Adjusted EBITDA is defined as adjusted EBIT excluding depreciation and stock based compensation. Certain corporate-related costs are not allocated to the business segments in determining Adjusted EBITDA. Adjusted EBITDA margin is adjusted EBITDA as a percentage of net sales. 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, expenses associated with becoming an independent company, other significant non-recurring items, net mark-to-market adjustments on pension and postretirement plans, the tax impact of these items and other discrete tax charges/benefits. Adjusted effective tax rate is defined as adjusted income tax provision as a percentage of adjusted income before income taxes. Adjusted earnings per share is defined as Adjusted net income attributable to Adient divided by diluted weighted average shares. Adjusted equity income is defined as equity income excluding amortization of Adient's intangible assets related to its non-consolidated joint ventures and other unusual or one-time items impacting equity income. Free cash flow is defined as cash from operating activities less capital expenditures. Adjusted free cash flow is defined as free cash flow adjusted for cash transferred from the former Parent post separation. 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. 19 FY 2018 Fourth Quarter Earnings Call / Nov 9, 2018 Adient - Improving the experience of a world in motion#20Non-GAAP reconciliations EBIT, Adjusted EBIT, Adjusted EBITDA FY17 Actual FY18 Actual (in $ millions) Net income attributable to Adient Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Full FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Full FY18 $ 142 $ 190 $ 201 $ 344 $ 877 $ (216) $ (168) $ 54 $ (1,355) $ (1,685) Income attributable to noncontrolling interests Income Tax Provision (11) 22 24 22 17 85 20 25 19 20 $ 84 28 37 39 (5) 99 265 (28) (13) 256 $ 480 Financing Charges 35 33 31 33 132 33 37 39 35 $ 144 Earnings before interest and income taxes $ 227 $ 284 $ 293 $ 389 $ 1,193 $ 102 $ (134) $ 99 $ (1,044) $ (977) Separation costs (1) 10 . 10 10 Becoming Adient (1) 15 (2) Purchase accounting amortization 10 Restructuring related charges Other items (4) (3) Restructuring and impariment costs (6) 8 13 (5) 6 50 % 23 20 37 95 19 19 9 10 14 43 17 18 10 10 3 36 6 37 11 16 14 22 12 222 12 12 62 17 17 69 20 18 61 22 1 3 40 40 5 315 557 57 809 1,181 (45) (45) (151) (151) (24) (24) Pension mark-to-market Gain on previously held interest (7) Impairment on YFAI investment Adjusted EBIT (8) 358 358 $ 283 $ 332 $ 333 $ 296 $ 1,244 $ 163 $ 252 $ 206 $ 149 $ 770 Stock based compensation Depreciation Adjusted EBITDA (9) 4 11 8 6 29 10 12 12 3 37 (10) 83 78 83 88 332 94 99 101 99 99 393 $ 370 $ 421 $ 424 $ 390 $ 1,605 $ 267 $ 363 $ 319 $ 251 $ 1,200 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 partially owned affiliates recorded within equity income. ADIENT 3. Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income. 4. Fourth quarter of 2018 reflects $3 million of integration costs associated with the acquisition of Futuris, Third quarter of 2018 reflects $6 million of integration costs associated with the acquisition of Futuris, $9 million of OPEB income related to the termination of a retiree medical plan, and $4 million of non-recurring consulting fees related to SS&M. Second quarter of 2018 reflects $7 million of integration costs associated with the acquisition of Futuris, $8 million of prior period adjustments, and $7 million of non-recurring consulting fees related to SS&M. First quarter of 2018 reflects $6 million of integration costs associated with the acquisition of Futuris and $8 million related to the impact of the U.S. tax reform legislation at YFAI. First quarter 2017 primarily consists of $12M of initial funding of the Adient foundation. Fourth quarter of 2017 reflects $3 million of integration costs associated with the acquisition of Futuris. 5. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420. Also incudes a non-cash pre-tax impairment charge of $787 million (post-tax charge of $718 million) during the three months ended September 30, 2018 related to SS&M long-lived assets that were in use as of September 30, 2018 in support of current programs. On-going performance issues on the current programs within the North American and European regions led to an impairment assessment of each region and resulted in the recognition of such impairment charge. The twelve months ended September 30, 2018 also includes a non-cash goodwill impairment charge of $299 million associated with SS&M and a $49 million non-cash impairment charge 6. Reflects net mark-to-market adjustments on pension and postretirement plans. 7. In 2017, an amendment to the rights agreement with a Seating affiliate in China was finalized, giving Adient control of the previously non-consolidated JV. Adient began consolidating the affiliate 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. 8. During the three months ended September 30, 2018, the Company recorded a non-cash pre-tax impairment charge related to its YFAI investment balance of $358 million (post-tax charge of $322 million). On-going performance issues within the YFAI business led Adient to perform an impairment analysis of its YFAI investment and resulted in the recognition of such impairment charge, which has been recorded within equity income 9. Stock based compensation excludes $6 million, $2 million, $1 million and $1 million of expense in the first, second, third and fourth quarters of 2018, respectively, and $2 million, $5 million, $3 million and $6 million of expense in the first, second, third and fourth quarters of 2017, respectively. These costs are included in Becoming Adient costs discussed above. 10. Depreciation excludes $2 million, $2 million, $2 million and $1 million of expense in the first, second, third and fourth quarters of 2018, respectively, which is included in restructuring related charges discussed above. Depreciation excludes $3 million, $1 million and $1 million of expense in the second, third and fourth quarters of 2017, respectively. These costs are included in Becoming Adient costs discussed above. 11. The income tax provision for the three and twelve months ended September 30, 2018 includes a non-cash tax charge of $439 million to establish valuation allowances against net deferred tax assets in certain jurisdictions because of the on-going performance issues and the associated decline in profits in those jurisdictions. Also included in the income tax provision for the three months ended September 30, 2018 is a non-cash tax benefit of $48 million related to the impact of US tax reform. The impact of US tax reform on the income tax provision for the twelve months ended September 30, 2018 is a non-cash tax charge of $210 million#21Non-GAAP reconciliations Adjusted Net Income ADIENT (in $ millions) Adjusted Net Income 2018 Three Months Ended September 30 2017 Twelve Months Ended September 30 Adjusted Diluted EPS Three Months Ended September 30 Twelve Months Ended September 30 2018 2017 2018 2017 2018 2017 Net income attributable to Adient $ (1,355) $ 344 $ (1,685) $ 877 Diluted earnings per share as reported $ (14.51) $ 3.67 $ (18.06) $ 9.34 Becoming Adient (1) Separation costs (1) Restructuring and impairment costs (2) 809 40 Purchase accounting amortization (3) Restructuring related charges (4) Pension mark-to-market (5) Impairment of YFAI investment (6) Gain on previously-held interest (7) Other items (8) (9) 12 37 62 95 Becoming Adient' (1) 0.13 0.39 0.67 1.01 (1) 10 Separation costs 0.11 00 1,181 46 40 (2) Restructuring and impairment costs 8.64 0.43 12.61 0.49 17 17 14 69 69 (3) 43 Purchase accounting amortization 0.19 0.15 0.75 0.46 18 6 61 37 (4) Restructuring related charges 0.20 0.10 0.66 0.39 (5) (24) (45) (24) (45) Pension mark-to-market (0.25) (0.48) (0.25) (0.48) 358 358 Impairment of YFAI investment (6) 3.83 3.83 (151) (151) Gain on previously-held interest (8) (9) (7) (1.61) (1.61) 3 3 40 16 Other items 0.03 0.03 0.43 0.17 Impact of adjustments on noncontrolling interests (10) Tax impact of above adjustments and one time tax items (11) Adjusted net income attributable to Adient (2) 286 (2) (32) (7) (2) 472 (50) $ 122 $ 217 $ 527 $ 876 Impact of adjustments on noncontrolling interests Tax impact of above adjustments and one time tax items (11) Adjusted diluted earnings per share (10) (0.02) (0.02) (0.07) (0.02) 3.06 (0.34) 5.05 (0.53) $ 1.30 $ 2.32 $ 5.62 $ 9.33 1. Reflects incremental expenses associated with becoming an independent company and expenses associated with the separation from JCI. 2. Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420. Also incudes a non-cash pre-tax impairment charge of $787 million (post-tax charge of $718 million) during the three months ended September 30, 2018 related to SS&M long-lived assets that were in use as of September 30, 2018 in support of current programs. On-going performance issues on the current programs within the North American and European regions led to an impairment assessment of each region and resulted in the recognition of such impairment charge. The twelve months ended September 30, 2018 also includes a non-cash goodwill impairment charge of $299 million associated with SS&M and a $49 million non-cash impairment charge 3. Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. 4. Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income. 5. Reflects net mark-to-market adjustments on pension and postretirement plans. 6. During the three months ended September 30, 2018, the Company recorded a non-cash pre-tax impairment charge related to its YFAI investment balance of $358 million (post-tax charge of $322 million). On-going performance issues within the YFAI business led Adient to perform an impairment analysis of its YFAI investment and resulted in the recognition of such impairment charge, which has been recorded within equity income 7. In 2017, an amendment to the rights agreement with a Seating affiliate in China was finalized, giving Adient control of the previously non-consolidated JV. Adient began consolidating the affiliate 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. 8. The three months ended September 30, 2018 includes $3 million of integration costs associated with the acquisition of Futuris, which is included within cost of sales. The three months ended September 30, 2017 includes $3 million of transaction costs associated with the acquisition of Futuris, which is included within selling, general and administrative expenses. 9. The twelve months ended September 30, 2018 includes $22 million of integration costs associated with the acquisition of Futuris, of which $18 million is included within cost of sales and $4 million is included within selling, general and administrative expenses. Also included in the twelve months ended September 30, 2018 is a $1 million credit related to prior period adjustments ($11 million is included within cost of sales partially offset by $12 million included within selling, general and administrative expenses), $11 million of non-recurring consulting fees related to SS&M included within selling, general and administrative expenses and $8 million related to the impact of the U.S. tax reform legislation at YFAI included within equity income. The twelve months ended September 30, 2017 primarily includes $3 million of transaction costs associated with the acquisition of Futuris which is included within selling, general and administrative expenses and $12 million of initial funding of the Adient foundation which is included within selling, general and administrative expenses. 10. Reflects the impact of adjustments, primarily purchase accounting amortization, on noncontrolling interests. See Note 4 for more information. 11. The income tax provision for the three and twelve months ended September 30, 2018 includes a non-cash tax charge of $439 million to establish valuation allowances against net deferred tax assets in certain jurisdictions because of the on-going performance issues and the associated decline in profits in those jurisdictions. Also included in the income tax provision for the three months ended September 30, 2018 is a non-cash tax benefit of $48 million related to the impact of US tax reform. The impact of US tax reform on the income tax provision for the twelve months ended September 30, 2018 is a non-cash tax charge of $210 million FY 2018 Fourth Quarter Earnings Call / November 9, 2018 21#22Non-GAAP reconciliations Free Cash Flow ADIENT Free Cash Flow Three Months Ended September 30 Adjusted EBITDA to Free Cash Flow Twelve Months Ended (in $ millions) 2018 2017 2018 September 30 2017 (in $ millions) Three Months Ended September 30 Twelve Months Ended September 30 2018 2018 Operating cash flow $ 439 $ 446 $ 679 $ 746 Adjusted-EBITDA $ 251 $ 1,200 Less: Capital expenditures (132) (160) (536) (577) (-) Interest paid (57) (143) Cash from former Parent Adjusted Free cash flow 315 (-) Taxes paid 5 (139) $ 307 $ 286 $ 143 $ 484 (-) Restructuring (Cash) (35) (174) (+/-) Change in Trade Working Capital 351 225 (+/-) Net Equity in Earnings (77) (95) (+/-) Other 1 (195) Operating cash flow $ 439 $ 679 (-) CapEx Adjusted Free cash flow (132) (536) ՄՌ $ 307 $ 143 FY 2018 Fourth Quarter Earnings Call / November 9, 2018 22 22#23Non-GAAP reconciliations Net Debt and Adjusted Equity Income ADIENT Net Debt and Net Leverage (in $ millions) September 30 2018 September 30 2017 (in $ millions) Adjusted Equity Income Three Months Ended 2018 September 30 2017 September 30 2018 2017 Twelve Months Ended Cash $ 687 $ 709 Equity income as reported $ (281) ՄՌ $ 248 $ (13) $ 522 (1) Total Debt Net Debt 3,430 3,478 Purchase accounting amortization 6 6 22 22 $ 2,743 $ 2,769 Adjusted-EBITDA (last twelve months) Net Leverage $ 1,200 $ 1,605 2.29x 1.73x Restructuring related charges Impairment of YFAI Investment (3) US tax reform legislation at YFAI Gain on previously held interest Adjusted equity income (2) 6 10 1 358 358 8 (4) (151) (151) $ 89 $ 103 $ 385 $ 394 1. Reflects amortization of intangible assets including those related to partially owned affiliates recorded within equity income. 2. Reflects non-qualified restructuring charges for costs that are directly attributable to restructuring activities, but do not meet the definition of restructuring under ASC 420 along with restructuring costs at partially owned affiliates recorded within equity income. 3. During the three months ended September 30, 2018, the Company recorded a non-cash pre-tax impairment charge related to its YFAI investment balance of $358 million (post-tax charge of $322 million). On-going performance issues within the YFAI business led Adient to perform an impairment analysis of its YFAI investment and resulted in the recognition of such impairment charge, which has been recorded within equity income 4. In 2017, an amendment to the rights agreement with a Seating affiliate in China was finalized, giving Adient control of the previously non-consolidated JV. Adient began consolidating the affiliate 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. FY 2018 Fourth Quarter Earnings Call / November 9, 2018 23#24Non-GAAP reconciliations Adjusted Income before Income Taxes Adjusted Income before Income Taxes Three Months Ended September 30 ADIENT Twelve Months Ended September 30 (in $ millions) 2018 2017 2018 2017 As reported Adjustments $ Income before Tax impact Income Taxes (1,079) $ 256 Effective tax rate -23.7% Income before Income Taxes $ Effective Tax impact tax rate 356 $ (5) -1.4% Income before Tax impact Income Taxes $ (1,121) $ 480 Effective tax rate -42.8% Income before Income Taxes $ Tax impact 1,061 $ 99 Effective tax rate 9.3% 1,193 (286) -24.0% (93) 32 -34.4% 1,747 (472) -27.0% 51 50 98.0% As adjusted $ 114 $ 30) -26.3% 263 $ 27 10.3% 626 $ 8 1.3% 1,112 $ 149 13.4% FY 2018 Fourth Quarter Earnings Call / November 9, 2018 24 24#25Segment Performance (in $ millions) Segment Performance Q1 2017 Q1 2018 Corporate / Seating SS&M Interiors Recon Items Consolidated Seating SS&M Interiors Corporate / Recon Items Consolidated Net sales $ 3,692 $ 671 $ $ (337) $ 4,026 $ 3,796 $ 718 $ $ (310) $ 4,204 Adjusted EBITDA 364 7 30 (31) 370 355 (82) 25 (31) 267 Adjusted EBITDA margin 9.9% 1.0% N/A N/A 9.2% 9.4% -11.4% N/A N/A 6.4% Adjusted Equity Income. 60 9 30 99 72 12 25 109 Depreciation 49 34 83 52 41 3 96 Capex 111 71 25 207 72 71 143 Q2 2017 Q2 2018 Corporate / Seating SS&M Interiors Recon Items Consolidated Seating SS&M Interiors Corporate / Recon Items Consolidated Net sales $ 3,825 $ 756 $ $ (380) $ 4,201 $ 4,132 $ 797 $ $ (333) $ 4,596 Adjusted EBITDA 398 40 22 (39) 421 411 (34) 12 (26) 363 Adjusted EBITDA margin 10.4% 5.3% N/A N/A 10.0% 9.9% -4.3% N/A N/A 7.9% Adjusted Equity Income 62 10 22 94 72 9 12 93 Depreciation 42 34 5 81 53 45 3 101 Capex 40 53 2 95 58 65 123 Q3 2017 Q3 2018 Corporate / Seating SS&M Interiors Recon Items Consolidated Seating SS&M Interiors Corporate / Recon Items Consolidated Net sales $ 3,620 $ 713 $ $ Adjusted EBITDA 413 31 19 (326) $ (39) 4,007 $ 4,027 $ 783 $ $ 424 344 (18) 19 (316) $ (26) 4,494 319 Adjusted EBITDA margin 11.4% 4.3% N/A N/A 10.6% 8.5% -2.3% N/A N/A 7.1% Adjusted Equity Income. 70 9 19 98 67 8 19 94 Depreciation 45 37 2 84 53 46 4 103 Capex 59 56 115 75 63 138 Net sales Adjusted EBITDA Adjusted EBITDA margin Adjusted Equity Income Depreciation Capex ADIENT Q4 2017 Q4 2018 Seating SS&M Interiors Corporate / Recon Items Consolidated Seating SS&M Interiors Corporate/ Recon Items Consolidated $ 3,605 $ 670 $ $ (296) ST 3,979 $ 3,749 $ 705 $ $ (309) $ 4,145 403 4 22 (39) 390 301 (34) 6 (22) 251 11.2% 0.6% N/A N/A 9.8% 8.0% -4.8% N/A N/A 6.1% 72 9 22 103 68 15 6 89 47 40 2 89 52 47 1 100 81 79 20 160 76 56 132 25#26Prior Period Results FY17 Actual FY18 Actual ADIENT Q1 FY17 Q2 FY17 Q3 FY17 Q4 FY17 Full FY17 Q1 FY18 Q2 FY18 Q3 FY18 Q4 FY18 Full FY18 Sales ($Mils.) $ 4,026 $ 4,201 $ 4,007 $ 3,979 $ 16,213 $ 4,204 $ 4,596 $ Adjusted EBIT 283 332 333 296 1,244 163 252 % of Sales 7.03% 7.90% 8.31% 7.44% 7.67% 3.88% 5.48% 4,494 206 4.58% $ 4,145 149 $ 17,439 770 3.59% 4.42% Adjusted EBITDA % of Sales 370 421 424 390 1,605 267 363 319 251 1,200 9.19% 10.02% 10.58% 9.80% 9.90% 6.35% 7.90% 7.10% 6.06% 6.88% Adj Equity Income 99 94 98 103 394 109 93 94 89 385 Adj EBIT Excl Equity % of Sales 184 238 235 193 850 54 159 112 60 385 4.57% 5.67% 5.86% 4.85% 5.24% 1.28% 3.46% 2.49% 1.45% 2.21% Adj EBITDA Excl Equity % of Sales 271 327 6.73% 7.78% 326 8.14% 287 7.21% 1,211 158 270 225 162 815 7.47% 3.76% 5.87% 5.01% 3.91% 4.67% FY 2018 Fourth Quarter Earnings Call / November 9, 2018 26