Adient plc (Formerly Automotive seating business of Johnson Controls Inc.) Business Report FY ended Sep. 2019

Financial Overview

(in million USD)

	FY ended Sep. 30, 2019	FY ended Sep. 30, 2018	Rate of change (%)	Factors
Net Sales	16,526	17,439	(5.2)	-Lower production volumes in EMEA and Asia
Net Income (Loss)	(491)	(1,685)	(70.9)

Outlook

-FY2020 consolidated sales is expected to range between USD 15.6 billion and USD 15.8 billion.
-Year-on-year sales declines is expected in North America, Europe and Asia (excluding China); partially offsetting the headwinds are positive contributions expected from impact of Tesla Model S/X insourcing.

Restructuring

-The Company will permanently close a plastics fabrication plant by May 1, 2019, with layoffs of 212 workers taking place on March 1. The factory was formerly owned by CNI Plastics and was acquired by Adient along with its USD 360 million purchase of Futuris Group in 2017. All the contracts and the equipment inside the building will be sold to another company in western Michigan. (From multiple sources on December 18, 2018)

R&D Expenditures

(in million USD)

	FY ended Sep. 30, 2019	FY ended Sep. 30, 2018	FY ended Sep. 30, 2017
Total	454	513	488

Capital Expenditure

(in million USD)

	FY ended Sep. 30, 2019	FY ended Sep. 30, 2018	FY ended Sep. 30, 2017
Total	468	536	577

Investment outside U.S.

<Serbia>
-Serbian Development Agency announced that the Company started the construction of a factory in Serbia's western municipality of Loznica on May 30, 2019 with an investment of EUR 18 million. This investment project will bring 1,500 new jobs in Serbia by the end of 2020. Serbia was chosen among eighth other countries for this investment. (From an article of Development Agency of Serbia on June 3, 2019)