Attachment: 8-K

Document
Exhibit 99.1
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Appendix
Page 1

Adient plc
Condensed Consolidated Statements of Income
(Unaudited)
Three Months Ended
March 31,
(in millions, except per share data)20212020
Net sales$3,819 $3,511 
Cost of sales3,521 3,274 
Gross profit298 237 
Selling, general and administrative expenses148 127 
Restructuring and impairment costs5 52 
Equity income (loss)85 8 
Earnings (loss) before interest and income taxes230 66 
Net financing charges110 50 
Other pension expense (income)(2)(2)
Income (loss) before income taxes122 18 
Income tax provision (benefit)28 16 
Net income (loss)94 2 
Income attributable to noncontrolling interests25 21 
Net income (loss) attributable to Adient$69 $(19)
Diluted earnings (loss) per share$0.72 $(0.20)
Shares outstanding at period end94.2 93.9 
Diluted weighted average shares96.0 93.8 


Appendix
Page 2

Adient plc
Condensed Consolidated Statements of Financial Position
(Unaudited)

March 31,September 30,
(in millions)20212020
Assets
Cash and cash equivalents$984 $1,692 
Accounts receivable - net
1,757 1,641 
Inventories756 685 
Assets held for sale56 43 
Other current assets537 421 
Current assets4,090 4,482 
Property, plant and equipment - net1,551 1,581 
Goodwill2,059 2,057 
Other intangible assets - net432 443 
Investments in partially-owned affiliates848 707 
Assets held for sale26 27 
Other noncurrent assets969 964 
Total assets$9,975 $10,261 
Liabilities and Shareholders' Equity
Short-term debt$22 $210 
Accounts payable and accrued expenses2,754 2,553 
Liabilities held for sale60 46 
Other current liabilities825 1,010 
Current liabilities3,661 3,819 
Long-term debt3,646 4,097 
Other noncurrent liabilities782 767 
Redeemable noncontrolling interests44 43 
Shareholders' equity attributable to Adient1,489 1,213 
Noncontrolling interests353 322 
Total liabilities and shareholders' equity$9,975 $10,261 



Appendix
Page 3

Adient plc
Condensed Consolidated Statements of Cash Flows
(Unaudited)
Three Months Ended
March 31,
(in millions)20212020
Operating Activities
Net income (loss) attributable to Adient$69 $(19)
Income attributable to noncontrolling interests25 21 
Net income (loss)94 2 
Adjustments to reconcile net income (loss) to cash provided (used) by operating activities:
Depreciation69 72 
Amortization of intangibles9 10 
Pension and postretirement contributions, net(3)(14)
Equity in earnings of partially-owned affiliates, net of dividends received(43)(1)
Gain on sale of a nonconsolidated partially-owned affiliate(33)— 
Premium and transaction costs paid on repurchase of debt46 — 
Deferred income taxes(1)10 
Non-cash restructuring and impairment charges4 — 
Equity-based compensation13 (3)
Other9 2 
Changes in assets and liabilities:
Receivables(366)113 
Inventories(65)(53)
Other assets(7)40 
Restructuring reserves(42)(15)
Accounts payable and accrued liabilities219 (199)
Accrued income taxes6 (20)
Cash provided (used) by operating activities(91)(56)
Investing Activities
Capital expenditures(55)(94)
Sale of property, plant and equipment2 4 
Settlement of cross-currency interest rate swap— 10 
Receipt of deferred consideration19 — 
Cash provided (used) by investing activities(34)(80)
Financing Activities
Increase (decrease) in short-term debt3 835 
Repayment of long-term debt, including premium paid(687)(2)
Debt financing costs(1)(1)
Dividends paid to noncontrolling interests(7)(5)
Other(2)(1)
Cash provided (used) by financing activities(694)826 
Effect of exchange rate changes on cash and cash equivalents(13)(15)
Increase (decrease) in cash and cash equivalents, including cash classified within current assets held for sale(832)675 
Less: Change in cash classified within current assets held for sale(4)— 
Increase (decrease) in cash and cash equivalents$(836)$675 


Appendix
Page 4

Footnotes
1. Segment Results

Adient manages its business on a geographic basis and operates in the following three reportable segments for financial reporting purposes: 1) Americas, which is inclusive of North America and South America; 2) Europe, Middle East, and Africa ("EMEA") and 3) Asia Pacific/China ("Asia").

Adient evaluates the performance of its reportable segments using an adjusted EBITDA metric defined as income before income taxes and noncontrolling interests, excluding net financing charges, qualified restructuring and impairment costs, restructuring related-costs, net mark-to-market adjustments on pension and postretirement plans, transaction gains/losses, purchase accounting amortization, depreciation, stock-based compensation and other non-recurring items ("Adjusted EBITDA"). Also, certain corporate-related costs are not allocated to the segments. The reportable segments are consistent with how management views the markets served by Adient and reflect the financial information that is reviewed by its chief operating decision maker.

Financial information relating to Adient's reportable segments is as follows:
Three Months Ended
March 31,
(in millions)20212020
Net Sales
Americas$1,644 $1,641 
EMEA1,636 1,488 
Asia588 444 
Eliminations(49)(62)
Total net sales$3,819 $3,511 
Three Months Ended
March 31,
(in millions)20212020
Adjusted EBITDA
Americas$64 106 
EMEA141 62 
Asia121 63 
Corporate-related costs (1)
(23)(20)
Restructuring and impairment costs (2)
(5)(52)
Purchase accounting amortization (3)
(10)(11)
Restructuring related charges (4)
(2)(7)
Gain on sale of interest in a nonconsolidated partially owned affiliate33 — 
Stock based compensation(13)3 
Depreciation(69)(72)
Other items (5)
(7)(6)
Earnings (loss) before interest and income taxes230 66 
Net financing charges(110)(50)
Other pension income (expense)2 2 
Income (loss) before income taxes$122 $18 

Refer to the Footnote Addendum for footnote explanations.


Appendix
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2. Earnings Per Share

The following table reconciles the numerators and denominators used to calculate basic and diluted earnings (loss) per share:
Three Months Ended
March 31,
(in millions, except per share data)20212020
Income available to shareholders
Net income (loss) attributable to Adient$69 $(19)
Weighted average shares outstanding
Basic weighted average shares outstanding94.2 93.8 
Effect of dilutive securities:
Stock options, unvested restricted stock and unvested performance share awards1.8 — 
Diluted weighted average shares outstanding96.0 93.8 

Potentially dilutive securities whose effect would have been antidilutive are excluded from the computation of diluted earnings per share, which for the three months ended March 31, 2020 is a result of being in a loss position.

Appendix
Page 6

3. Non-GAAP Measures

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 interest expense, Free cash flow and Net debt 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. Management uses the identified non-GAAP measures to evaluate the operating performance of the Company and its business segments and to forecast future periods. Management believes these non-GAAP measures assist investors and other interested parties in evaluating Adient's on-going operations and 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. Reconciliations of non-GAAP measures to their closest U.S. GAAP equivalent are presented below. Reconciliations of non-GAAP measures related to guidance for any future period have not been provided due to the unreasonable efforts it would take to provide such reconciliations.
•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, 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.
•Adjusted interest expense is defined as net financing charges excluding unusual or one-time items impacting interest expense.
•Free cash flow is defined as cash provided by operating activities less capital expenditures.
•Net debt is calculated as gross debt (short-term and long-term) less cash and cash equivalents.


Appendix
Page 7

Summarized Income Statement Information
(Refer to the Footnote Addendum for footnote explanations and details
of reconciling items between GAAP results and Adjusted results)
Three Months Ended March 31,
20212020
(in millions, except per share data)GAAP ResultsAdj.Adjusted ResultsGAAP ResultsAdj.Adjusted Results
Net sales$3,819 $— $3,819 $3,511 $— $3,511 
Cost of sales (6)
3,521 (1)3,520 3,274 (3)3,271 
Gross profit298 1 299 237 3 240 
Selling, general and administrative expenses (7)
148 (17)131 127 (19)108 
Restructuring and impairment costs (2)
5 (5)— 52 (52)— 
Equity income (loss) (8)
85 (32)53 8 2 10 
Earnings (loss) before interest and income taxes (EBIT)230 (9)221 66 76 142 
Memo accounts:
Depreciation69 72 
Equity based compensation13 (3)
Adjusted EBITDA$303 $211 
Net financing charges (9)
110 (50)60 50 — 50 
Other pension expense (income)(2)— (2)(2)— (2)
Income (loss) before income taxes122 41 163 18 76 94 
Income tax provision (benefit) (10)
28 (2)26 16 (3)13 
Net income (loss) attributable to Adient69 41 110 (19)77 58 
Diluted earnings (loss) per share0.72 0.43 1.15 (0.20)0.82 0.62 
Diluted weighted average shares96.0 — 96.0 93.8 0.4 94.2 


Appendix
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Segment Performance:
Three months ended March 31, 2021
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,644 $1,636 $588 $(49)$3,819 
Adjusted EBITDA$64 $141 $121 $(23)$303 
Adjusted EBITDA margin3.9 %8.6 %20.6 %N/A7.9 %
Three months ended March 31, 2020
AmericasEMEAAsiaCorporate/EliminationsConsolidated
Net sales$1,641 $1,488 $444 $(62)$3,511 
Adjusted EBITDA$106 $62 $63 $(20)$211 
Adjusted EBITDA margin6.5 %4.2 %14.2 %N/A6.0 %


The following table reconciles income (loss) before income taxes to adjusted income before income taxes and presents the related effective tax rate and adjusted effective tax rate:
Three Months Ended March 31,
20212020
(in millions, except effective tax rate)Income (loss) before income taxesTax impactEffective tax rateIncome (loss) before income taxesTax impactEffective tax rate
As reported$122 $28 23.0%$18 $16 88.9%
Adjustments41 (2)(4.9)%76 (3)(3.9)%
As adjusted$163 $26 16.0%$94 $13 13.8%



Appendix
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The following table reconciles net income (loss) attributable to Adient to adjusted net income (loss) attributable to Adient:
Three Months Ended
March 31,
(in millions)20212020
Net income (loss) attributable to Adient$69 $(19)
Restructuring and impairment costs
5 52 
Purchase accounting amortization
10 11 
Restructuring related charges
2 7 
Gain on sale of interest in a nonconsolidated partially owned affiliate(33)— 
Write off of deferred financing charges upon repurchase of debt10 — 
Interest accretion on deferred consideration(5)— 
Premium paid on repurchase of debt45 — 
Other items (5)
7 6 
Impact of adjustments on noncontrolling interests (11)
(2)(2)
Tax impact of above adjustments and other tax items (10)
2 3 
Adjusted net income attributable to Adient$110 $58 

Refer to the Footnote Addendum for footnote explanations

The following table reconciles diluted earnings (loss) per share as reported to adjusted diluted earnings per share:
Three Months Ended
March 31,
20212020
Diluted earnings (loss) per share as reported$0.72 $(0.20)
Restructuring and impairment costs0.05 0.55 
Purchase accounting amortization0.10 0.12 
Restructuring related charges0.02 0.08 
Gain on sale of interest in a nonconsolidated partially owned affiliate(0.33)— 
Write off of deferred financing charges upon repurchase of debt0.10 — 
Interest accretion on deferred consideration(0.05)— 
Premium paid on repurchase of debt0.47 — 
Other items (5)
0.07 0.06 
Impact of adjustments on noncontrolling interests (11)
(0.02)(0.02)
Tax impact of above adjustments and other tax items (10)
0.02 0.03 
Adjusted net income attributable to Adient$1.15 $0.62 

The following table presents calculations of net debt:
March 31,September 30,
(in millions)20212020
Cash and cash equivalents$984 $1,692 
Total short-term and long-term debt3,668 4,307 
Net debt$2,684 $2,615 


Appendix
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The following table reconciles cash from operating activities to free cash flow:
Three Months Ended
March 31,
(in millions)20212020
Cash provided by operating activities$(91)$(56)
Capital expenditures(55)$(94)
Free cash flow$(146)$(150)


The following table reconciles adjusted EBITDA to free cash flow:
FY21FY20
(in millions)Q2YTDQ2YTD
Adjusted EBITDA$303 $681 $211 $508 
(+/-) Net equity in earnings(45)(138)(3)(110)
(-) Restructuring (cash)(45)(100)(20)(40)
(+/-) Net customer tooling8 — (8)(2)
(+/-) Trade working capital (Net AR/AP + Inventory)(153)97 (103)99 
(+/-) Accrued compensation27 8 (23)(84)
(-) Interest paid(70)(136)(56)(105)
(+/-) Tax refund/taxes paid(20)(32)(26)(55)
(+/-) Non-income related taxes (VAT)(11)(78)1 — 
(+/-) Commercial settlements(70)(79)(21)(2)
(+/-) Other(15)(83)(8)(26)
Operating cash flow(91)140 (56)183 
Capital expenditures(55)(126)(94)(185)
Free cash flow$(146)$14 $(150)$(2)


Appendix
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Footnote Addendum

(1) Corporate-related costs not allocated to the segments include executive office, communications, corporate development, legal and corporate finance.

(2) Reflects qualified restructuring charges for costs that are directly attributable to restructuring activities and meet the definition of restructuring under ASC 420 along with one-time asset impairment charges, as follows:
Three Months Ended
March 31,
(in millions)20212020
Restructuring charges$(3)$(52)
Held for sale asset adjustments(2)— 
$(5)$(52)

(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 including restructuring costs at partially owned affiliates recorded within equity income.

(5) Other items include:
Three Months Ended
March 31,
(in millions)20212020
Transaction costs$(7)$(6)

(6) The adjustments to cost of sales include:
Three Months Ended
March 31,
(in millions)20212020
Restructuring related charges$(1)$(3)

(7) The adjustments to selling, general and administrative costs include:
Three Months Ended
March 31,
(in millions)20212020
Purchase accounting amortization$(9)$(10)
Transaction costs(7)(6)
Restructuring related charges(1)(3)
$(17)$(19)

(8) The adjustments to equity income include:

Appendix
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Three Months Ended
March 31,
(in millions)20212020
Gain on sale of interest in a nonconsolidated partially owned affiliate$(33)$— 
Restructuring related charges— 1 
Purchase accounting amortization1 1 
$(32)$2 

(9) The adjustments to net financing charges to calculate adjusted interest expense include:
Three Months Ended
March 31,
(in millions)20212020
Premium paid on repurchase of debt$(45)$— 
Write off of deferred financing charges upon repurchase of debt(10)— 
Interest accretion on deferred consideration5 — 
$(50)$— 

(10) The adjustments to income tax provision (benefit) include:
Three Months Ended
March 31,
(in millions)20212020
Benefits associated with restructuring and impairment charges$(1)$— 
Gain on sale of interest in a nonconsolidated partially owned affiliate5 — 
Tax rate change— (1)
Other reconciling items(2)4 
$2 $3 

(11) Reflects the impact of adjustments, primarily purchase accounting amortization on noncontrolling interests.




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