Slide 1: Third Quarter 2020 Earnings Call
October 29, 2020 DRAFT v10 APTIV Third Quarter 2020 Earnings Call
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation, as well as other statements made by Aptiv PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performance. Such fo
Slide 3: Strong Execution of Our Business Model
Strong Execution of Our Business Model ONGOING COMMITMENT TO CONTINUOUS IMPROVEMENT LED TO STRONG EXECUTION IN 2020 WELL-POSITIONED FOR OUR SUSTAINABLE AND PROVING THROUGH-CYCLE RECOVERY OUTPERFORMANCE FLEXIBLE BUSINESS MODEL RESILIENCY IN 2020 IN 2021 AND BEYOND LEADING PORTFOLIO OF ADVANCED TECHNO
Slide 4: Demonstrating Our Through-Cycle Resiliency
Demonstrating Our Through-Cycle Resiliency SUSTAINED ABOVE MARKET GROWTH DESPITE THE ONGOING CHALLENGING ENVIRONMENT 3Q 2020 FINANCIALS 3Q 2020 PRODUCTION 4Q 2020 OUTLOOK REVENUE $3.7B (4%) GLOBAL VEHICLE ~(3%) GLOBAL VEHICLE Up 3% | 7% GoM PRODUCTION1 PRODUCTION1 EBITDA $581M SUSTAINED GROWTH Margi
Slide 5: Award Activity Ramping Up
Award Activity Ramping Up YEAR-TO-DATE BOOKINGS REFLECT NEAR-TERM GLOBAL IMPACT OF COVID-19 BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS ~$6 $16-17 ENCOMPASSES OUR DEEP EXPERTISE LEVERAGES OUR HERITAGE AS A IN CENTRALIZED COMPUTING G
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience DEEP EXPERTISE IN SOFTWARE AND CENTRALIZED COMPUTING PLATFORMS UNLOCKING NEXT GENERATION FUNCTIONALITY ADVANCED SAFETY & CENTRAL COMPUTE AND SOFTWARE REVENUE USER EXPERIENCE CAPABILITIES ENABLING ADVANCED $ Billions 2020E Revenue FUNCTIONALITY LEADER IN SOFTWARE AND
Slide 7: Active Safety
Active Safety CUSTOMER AWARDS REFLECT SIGNIFICANT MARKET SHARE GAINS MARKET PENETRATION BOOKINGS REVENUE Global penetration rate % Lifetime gross program revenues, $ Billions, % CAGR $ Billions, % Adj Growth CAGR1 25% 15% 20% 25% LVL 2/2+ 35% 40% 45% LVL 0/1 ~$4 $2+ $4.2 $3.7 $3.9 ~$1.3 $1.3 50% 40%
Slide 8: Signal & Power Solutions
Signal & Power Solutions GLOBAL LEADER IN NEXT GENERATION ARCHITECTURES WITH PORTFOLIO OF ROBUST HIGH VOLTAGE CONNECTORS, CABLE MANAGEMENT, AND ELECTRICAL DISTRIBUTION SYSTEMS LEADER IN INCREASINGLY COMPLEX SIGNAL & POWER REVENUE ARCHITECTURE OPTIMIZATION SOLUTIONS $ Billions 2020E Revenue SYSTEM-LE
Slide 9: High Voltage Electrification
High Voltage Electrification PARTNER OF CHOICE WITH BOTH HIGH VOLUME AND EMERGING EV OEMS MARKET PENETRATION BOOKINGS REVENUE Global penetration rate % Lifetime gross program revenues, $ Billions $ Billions, Adj Growth CAGR1 40% HIGH Electric VOLTAGE PHEV 10% Hybrid - Full ~25% 20% Hybrid - Mild 92%
Slide 10: Aptiv Sustainability
Aptiv Sustainability ADVANCED SOLUTIONS DELIVERED RESPONSIBLY DRIVE RESULTS OUR SUSTAINABILITY COMMITMENT Our products and solutions are of the highest quality, are designed, developed and manufactured responsibly, and transform society — making mobility safer, greener and more connected. PEOPLE PRO
Slide 11: 3Q 2020 vs. 3Q 2019
3Q 2020 vs. 3Q 2019 ($ millions, except per share amounts) 3Q 2020 Fav / (Unfav) COMMENTS REPORTED REVENUE $109 • Vehicle production down (4%) $3,668 • AS&UX Up 7% GoM, S&PS Up 6% GoM Adjusted Growth %1 | Growth Over Market 3% | 7% EBITDA2 $581 ($6) • ~$30M of COVID-related operating expenses EBITDA
Slide 12: 3Q 2020 Revenue
3Q 2020 Revenue STRONGER THAN EXPECTED VOLUME ACROSS ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 3% Adj 1 7% GoM N. AMERICA EUROPE CHINA2 ($74) $24 $159 (3%) Adj 3% Adj 14% Adj (2%) GoM 11% GoM 3% GoM $3,668 $3,559 3Q 2019 Volume FX / Comm Price 3Q 2020 1. Rev
Slide 13: 3Q 2020 Segment Recap
3Q 2020 Segment Recap SEGMENT REVENUES OUTPACED UNDERLYING VEHICLE PRODUCTION ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 REVENUE EBITDA2 3%1 2%1 (24%) (2%) $2,584 $2,656 $985 $1,020 $483 $471 $145 $110 3Q 2019 3Q 2020 3Q 2019 4 3Q 2020 3Q 2019 3Q
Slide 14: 2020 Macro Overview
2020 Macro Overview UPDATED MACROS REFLECT IMPROVING OUTLOOK IN ALL REGIONS GLOBAL NORTH AMERICA EUROPE CHINA 38% of Revenue2 33% of Revenue2; EUR: 1.174 18% of Revenue2; CNY: 6.904 Adjusted Adjusted Adjusted Adjusted Production3 Production Production Production Growth1 Growth1 Growth1 Growth1 1H20
Slide 15: 2020 Guidance
2020 Guidance REINSTATING PRUDENT OUTLOOK GIVEN CONTINUED MACRO CHALLENGES ($ millions, except per share amounts) 4Q 20203 FY 20203 FULL YEAR 2020 COMMENTS REPORTED REVENUE $3,685 – 3,835 $12,540 – 12,690 • Vehicle production down ~(20%) Adjusted Growth %1 | Growth Over Market ~3% | ~6% ~(11%) | ~9%
Slide 16: 2021 Outlook
2021 Outlook … WELL-POSITONED FOR CONTINUED RECOVERY OUTPERFORMANCE APTIV FINANCIAL STRATEGY 2021 CONSIDERATIONS REMAINS UNCHANGED RELEVANT PORTFOLIO ADDRESSING GRADUAL MARKET REBOUND INDUSTRY’S TOP CHALLENGES Global vehicle production up ~10% COMMITMENT TO LONG-TERM SUSTAINED ABOVE MARKET GROWTH FI
Slide 17: Summary
Summary INNOVATION AND EXECUTION DRIVING RECOVERY OUTPERFORMANCE DEMONSTRATING THROUGH-CYCLE RESILIENCY • Portfolio of leading technologies driving sustained above market growth • Volume and operational execution drive stronger than expected 3Q performance • Relentless focus on cost structure optimi
Slide 18: Appendix
“APTIV:
Slide 19: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 3Q 2020 YTD 2020 Reported net sales % change 3% (18%) Less: foreign currency exchange and commodities -% (2%) Less: divestitures and other, net -% -% Adjusted revenue growth 3% (16%) Reflective of management estimates due to integration of businesses 3Q 2020 YTD 2020 Repor
Slide 20: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks QTD YTD ($ millions) Revenue OI Adj Revenue OI Adj 3Q 2019: Signal And Power Solutions 2,584 350 7,731 970 Volume, net of contractual price reductions 60 (17) (1,196) (611) FX and commodities 12 (5) (114) (13) Operational performance - 8 - 79 Other - (14) - (
Slide 21: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2020 3Q 2019 YTD 2020 YTD 2019 Net income attributable to Aptiv 299 246 1,505 760 Interest expense 38 42 125 123 Other (income) expense, net (1) (7) 6 (29) Income tax (benefit) expense (2) 38 (6) 102 Equity loss (income), net of tax 24 (5) 40 (12) Net in
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2020 3Q 2019 YTD 2020 YTD 2019 Net income attributable to Aptiv 299 246 1,505 760 Interest expense 38 42 125 123 Other (income) expense, net (1) (7) 6 (29) Income tax (benefit) expense (2) 38 (6) 102 Equity loss (income), net of tax 24 (5) 40 (12) Net in
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 3Q 2020 3Q 2019 YTD 2020 YTD 2019 Net income attributable to ordinary shareholders 283 246 1,486 760 Mandatory Convertible Preferred Share dividends 16 - 19 - Net income attributable to Aptiv 299 246 1,505 760 Adjusting items: Rest
Slide 24: Shares Outstanding
Shares Outstanding (millions) 3Q 2020 3Q 2019 YTD 2020 YTD 2019 Weighted average ordinary shares outstanding, basic 270.03 255.89 261.22 257.32 Dilutive shares related to RSUs 0.35 0.55 0.28 0.42 Weighted average MCPS Converted Shares 13.71 0.00 5.64 0.00 Adjusted weighted average ordinary shares ou
Slide 25: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 4Q 20201 20201 Net income attributable to Aptiv 182 1,687 Interest expense 41 166 Other expense, net 5 11 Income tax expense 37 31 Equity loss, net of tax 40 80 Net income attributable to noncontrolling interest 8 10 Operating income 313 1,985 Rest
Slide 26: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 4Q 20201 20201 Net income attributable to Aptiv 182 1,687 Interest expense 41 166 Other expense, net 5 11 Income tax expense 37 31 Equity loss, net of tax 40 80 Net income attributable to noncontrolling interest 8 10 Operating income 313 1,985 Depr
Slide 27: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 4Q 20201 20201 Net income attributable to ordinary shareholders 166 1,652 Mandatory Convertible Preferred Share dividends 16 35 Net income attributable to Aptiv 182 1,687 Adjusting items: Restructuring 91 209 Other acquisi
Slide 28: Aptiv
“APTIV: