Adient Capital Allocation and China Business Update
Solid progress at moving the company forward supports enhanced
capital allocation plan
ADIENT
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> The ability to drive the business forward despite the challenging operating
environment has enabled the company to enhance its capital allocation plan
> Adient's capital allocation plan has prioritized deleveraging; on track and progressing
towards the company's target leverage threshold (~1.5x - 2.0x net debt / adj.-EBITDA)
FY23 Plan suggests net leverage will settle within the target threshold due to:
> Significant progress made on voluntary debt repayments over the past 2-years
> Adient's outlook for the business in FY23 and beyond
> Given the significant progress made on transforming the balance sheet and
management's confidence in its near and long-term outlook, Adient's Board of
Directors has approved a $600M share repurchase program
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Adient expects to take a "measured" approach to the timing and amount of
buybacks to be executed (underpinned by cash needs and market conditions)
Through May 3, 2023, the company repurchased ~760,000 shares ($30M)
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LISTED
ADIENT
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Adient's capital allocation
plan is expected to balance
future FCF between
internal growth projects,
share repurchases and
potential / opportunistic
inorganic growth
opportunities
J.P. Morgan China Investor Meeting
Adient PUBLIC
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