Improving the experience of a world in motion
Margin potential with successful turnaround execution
ADIENT
Adjusted EBITDA %
Benchmarking our performance
6.8%
FY 2016
Closest peer 8.5 - 9% 2
7.5%
-
Gap to
closest peer
400 bps
3
4.7%
FY 2017
FY 2018
ADNT (excl. Equity Inc) 1
1 - For Non-GAAP and adjusted results, see appendix for detail and reconciliation to U.S. GAAP
2- Based on external reports revised to align with ADNT fiscal year and Adjusted EBITDA
3- Components of margin gap include; 200-250 bps SS&M recovery/downsize, 100-150 bps core seating improvements, and 50 bps China JV infrastructure,
Bridging the profitability gap
will require operational "self
help" and commercial actions
> Examples of operational "self help" levers
> Organizational alignment
> Launch recovery
> Plant productivity
> Waste reduction
> SS&M rightsizing
> Examples of commercial actions
> Pricing
> Shared VAVE initiatives
> Material economics
> Operating patterns at OEMs
There are no structural reasons for
Adient's underperformance vs its peers;
however, it will take time to close the gap
15
Adient - Improving the experience of a world in motion
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