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Adient’s Digital RoadmapRandy Urban, VP Digital Office Improving the experience of a world in motion

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Introduction

˃ 29 years of experience

˃ 20+ years in automotive

˃ IT, Finance, Supply Chain, Procurement, Manufacturing

˃ Leading Adient’s Digital Office

˃ Digital Innovation: "We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next 10. Don't let yourself be lulled into inaction." — Bill Gates

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Adient today

FY2017~$16.2BConsolidated revenue

~$8.7BUnconsolidated seating revenue

~$8.6BUnconsolidated interiors revenue

Revenue by geography*

Europe /Africa

China

Americas

26%

6%37%

31%

Asia /Pacific

NYSE: ADNT

Adient is the largest global automotive seating supplier, supporting all major automakers in the differentiation of their vehicles through superior quality, technology and performance#1

We supply oneout of every three automotive seats

worldwide

Global market share*

Adient

Other

Lear

Faurecia

33%

ToyotaBoshokuMagna

*Adient share includes non-consolidated revenue (market share based on FY2016). Revenue by geography based on FY2017 (consolidated and non-consolidated). Source: IHS Automotive and management estimates.

25M+seat systems

per year

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Products

> Complete Seat systems capabilities including complex logistics and supply chain management, Just-In-Time in sequence delivery, quality, craftsmanship and change management> ~100 Assembly plants> ~130 Manufacturing plants

> What’s causing us to think about our digital strategy?

ADIENT

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Revenue by Geography

˃ Our two largest markets have active digital initiatives

˃ Germany “Industry 4.0”

˃ China “Manufactured in China 2025” 26%

6%

37%

31%

Americas Europe / Africa

Asia / PacificChina

The industry is shiftingTrends & key questions 2020 and beyond

Traditional manufacturers ... Industry trends

> Autonomous driving > Electrification> Internet of things> Connectivity> Urbanization> Alternative propulsion> Slim & lightweight> Smart materials> Individualization> New shapes> Safety> Shared ownership

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Sample of traditional OEMs and the new players who could accelerate industry trends.

Examples

... and the new players

ADIENT

Adient Investor Day – Product / Technology / Innovation 8

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The progression of digital disruption

> Moore’s law is the foundation. Computational power drive advancement in other areas.

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What happens when things go “Exponential”?

> This is how you get Ubered!

Exponential = 10x faster, better and cheaper

What Megatrends and Technologies will emerge and go “Exponential”?

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6 D’s of Digital Distribution

˃ The roadmap to advance technologies impacting your business˃ Follow the exponential curve˃ AI is moving into the disruption phase

Adient / Presentation Title / Date11

DigitalizationOnce represented in 1’s and 0’s it will enter exponential growth

DeceptionStays below the surface but is doubling every 18 months

DisruptionStarts when exponential intersects linear

DemonitizationMoney is removed as an obstacle

DematerializedPhysical products are removed and condensed

DemocratizedAccess to large populations

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Smart is the new normal

Smart Factory

Smart Mobility

Smart Grid

Smart Logistics

Business Web

Social Web

Smart Homes

Smart Buildings

Internet of things

Internet of service

> Competing in the “Data Layer”

Internet of data

Internet of people

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Adient’s journey towards digital

We have begun to make progress

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> Working with Marketing and Communications

> Digital Marketing> Aftermarket

> Current focus> Digital robots at shared services

center and help desk> Mobile data entry at plants> Program launch analytics> Digital twin during product

development> Industry 4.0 analytics for shop

floor efficiencies

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> Uber-model> Software/Information Technology

in products

Customer Experience> Customer understanding> Top line growth> Customer touch points

Operational Processes> Process digitization> Worker enablement> Performance management

Business Models> Digitally-modified business> New digital business> Digital globalization

* MIT Center for Digital Business and Capgemini Consulting, “Digital Transformation: A Roadmap for Billion-Dollar Organizations”

Digital transformation initiatives are centered in three areas

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IT strategy needs to support current business AND digital business of our future

Run Strong Drive ROI Race Ahead

Reliability˃ Prevention management˃ Operations reviews

Availability ˃ Support (HD – L1)˃ Detailed diagnostic procedures

Maintainability˃ Correct defects or their cause˃ Maximize a product's useful life˃ Improve how maintenance is performed˃ Reduce ongoing costs

Security˃ Risk management˃ Audit compliance

˃ Major projects on core technologies

˃ Continuous improvement ˃ Remain current (N-1)˃ Value stream based architecture

roadmaps˃ Security upfront˃ Rationalization of technologies &

application˃ Examples:

˃ Projects (Business, GI & Security)˃ Project reviews˃ Major technology upgrades

˃ New to Adient ˃ New capabilities / products˃ New processes ˃ New technologies ˃ New locations / markets ˃ New methodologies ˃ New skills˃ Examples:

˃ Marketing automation ˃ Digital twin˃ Virtual reality˃ Augmented reality˃ Agile

(operational excellence through effective execution) (continuous improvement of our core) (deployment of innovative solutions)

1 2 3 Digital focus

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Race ahead through implementation of digital technology

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Business BenefitsDefinition of Digital

Traditional Information Technology

+ Social media+ Smart mobile devices, including ones from

customers and suppliers+ Analytics+ Cloud+ Artificial Intelligence+ The Internet of Things+ Industry 4.0: convergence of Operational

Technology (OT) and IT+ IT embedded in products+ New business models+ Agile organization

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>

Core applications with digital wrapper

People Data Product Data

Operations DataCustomer Data

Collaboration

Digital

AICloud

Industry 4.0Analytics

MobileSocial

Process Automation

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Digital is changing the IT delivery model … increased focus on customer, more proofs of concepts, faster delivery

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˃ Problem Statements˃ Hypotheses˃ CI ideas˃ Lean

˃ Experimentation˃ Rapid Proofs of concept˃ Accept - Reject˃ Estimate

˃ Rapid solution delivery˃ Minimal viable product˃ Continuous delivery˃ Value realization˃ SMAC + IoT, AI

Innovation often doesn’t come from linear thinking. It requires a more creative approach that combines iterative and experimental approaches.

Follow a three-phase approach:• Design Thinking sessions and tactics are used to understand the customer and define the real need• Lean Startup provides opportunities to create prototypes and conduct proof of concepts to experiment and

demonstrate feasibility of the idea• Use Agile practices to implement the solution in smaller segments for more control and allow flexibility

Measure

LeanStartup AgileDesign

Thinking

Build

Learn

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Digital team identifying business opportunities and applying technology to solve

179 business problems

captured

43 Digital proofs of

concepts (POCs)

15+ Projects in production

8Design thinking

workshops

> Program launch> Machine utilization> SMRR mobility> Non-connected

employees> Help desk chat bot> Rockenhausen RFID

on containers> Etc.

> North America training

> Shanghai training> Europe training > Detroit IT leadership

exposure> Recaro aftermarket> GBS automation> Program launch> Warren operations

> Digital boardroom> Fabrics quality defects> Inventory pick list> Foam pump analytics> Exchange rate update> Automate legal entity

creation> Dig4IT work streams> iApprove app

> Container tracking RFID> eLPA app on tablets> Vehicle content> Program translator> Infosys NIA> PPA IoT for Recaro> Accounts Receivable

dashboard> Various IT

enhancements> Cloud apps

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PPA – High level architecture

IT Manufacturing - Shop Floor Application December 201720

Non IoT capable devices (PLCs, Tools, etc.)

IoT capable devices

Field Gateway

MQTT

Adient’s Authentication

Storage

Azure’s Cloud

On premise equipment

Stream AnalyticsIoT Hub

Service Bus

Function/ Routing

Cold Path

Hot Path / Reference Data

Machine Learning (Future dev)

Solution UX, Maintenance

screens

Device Registry

Analytics, Dashboards

Device Orchestrator

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> Manual and time consuming> Many people performing audits

in average plant > Significant time is spent on

audit planning, audit execution, documentation, corrective action planning and reporting

> Lack of visibility to audit data and findings

> High overhead of a manual process results in lack of compliance - plants are not performing audits

> COPQ reduction> Potential savings of 220

hours saved per plant per month

> Increased compliance> Increase visibility

Problem Statement Digital Enabler Business Benefits

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Example: Electronic Layered Process Audit

˃ Mobile capability˃ Applications

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What are you waiting for?

THANK YOU!