Aptiv Plc · NYSE:APTV
Aptiv — European Credit Conference by UniCredit 2024
27 slides from Aptiv's conference presentation, Jun 12, 2024
Slide 1: European Credit Conference by UniCredit 2024
June 12, 2024 APTIV European Credit Conference by UniCredit 2024 Bob Hoeppner VP, Corporate Controller and Treasurer Stephen McGovern Assistant Treasurer, Capital Markets
Slide 2: Disclaimers
Disclaimers This presentation has been prepared by Aptiv PLC (the “Company”) solely for informational purposes and information contained herein constitutes confidential information and is provided to you on the condition that you will hold it in strict confidence and not reproduce, disclose, forward
Slide 3: Aptiv Today
Aptiv Today 2023 FINANCIALS LEADING PORTFOLIO ALIGNED WITH INDUSTRY MEGATRENDS… $ Billions, except per share amount SAFE GREEN CONNECTED A FUTURE WITH A FUTURE WITH A FUTURE WITH SEAMLESS ZERO ACCIDENTS ZERO EMISSIONS CONNECTIVITY $20.1 REVENUE …ENABLING THE FUTURE OF MOBILITY $2.8 EBITDA1 LEADING A
Slide 4: Full Year 2023 Achievements
Full Year 2023 Achievements CONTINUED EXECUTION OF OUR LONG-TERM STRATEGY POSITIONING FOR THE FUTURE $34B+ RECORD FULL YEAR BOOKINGS DRIVEN BY STRENGTH Industry leading technologies and capabilities IN SVA™, ACTIVE SAFETY AND HIGH VOLTAGE ELECTRIFICATION STRONG GROWTH PORTFOLIO 12% ADJUSTED REVENUE
Slide 5: Industry Leading Portfolio
Industry Leading Portfolio ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS DEEP DOMAIN EXPERTISE ENABLING THE TRANSITION TO ONLY ARCHITECTURE PROVIDER CAPABLE OF OPTIMIZING SOFTWARE-DEFINED VEHICLES AT A FULL SYSTEM LEV
Slide 6: Bookings Update
Bookings Update 2023 FULL YEAR BOOKINGS REACHED A RECORD HIGH OF ~$34B BOOKINGS Lifetime gross program revenues, $ Billions FY 2022 FY 2023 ADVANCED SAFETY SIGNAL & POWER ~$34B & USER EXPERIENCE SOLUTIONS ~$32B $14.2 $13.9 BOOKINGS1 BOOKINGS1 FY 2021 ~$24B $7.0 $7.7 AS&UX $ 30B 2021-2023 $ 60B 2021-
Slide 7: Operational Excellence & Resiliency
Operational Excellence & Resiliency SUPPORTING RESILIENCYCUSTOMERS AND CAPITALIZING INCREASINGLY ON THEADVANTAGE A COMPETITIVE CHANGING ENVIRONMENT TRACK RECORD OF EXECUTION SUPPORTED BY A COMBINATION OF PROACTIVE Strong quality & delivery on a global basis while INITIATIVES AND RISK MITIGATION ACTI
Slide 8: Positioned To Win In Every Powertrain
Positioned To Win In Every Powertrain MAJORITY OF PORTFOLIO POWERTRAIN AGNOSTIC AND / OR FLEXIBLE TO ADAPT TO CONSUMER DEMAND INCREASING CPV WHILE LEVERAGING LONG-TERM TAILWIND FOR GROWTH; APTIV PORTFOLIO BROADLY COMMON / EXISTING CAPABILITIES CONSERVATIVE PENETRATION OUTLOOK POWERTRAIN AGNOSTIC Tot
Slide 9: Continued Expansion Into Adjacent Markets
Continued Expansion Into Adjacent Markets APPLICATION OF EXISTING SOLUTIONS TO THE INTELLIGENT EDGE Cloud / Offboard DEVOPS TOOLCHAIN FOR TELECOM Other markets with similar needs and Services Cloud • Wind River Studio Gallery technology trends • Wind River Conductor DevOps Applications COMMERCIAL VE
Slide 10: Long-Term Commitment to Operating Sustainably
Long-Term Commitment to Operating Sustainably OUR FRAMEWORK FOR DELIVERING ON OUR MISSION 2025 MISSION APPROACH IMPACT REDUCE CARBON Why we do what we do How we do business Our effect on the world EMISSIONS BY 25% Decrease Scope 1 & 2 CO2 Emissions SAFE PEOPLE A future with STAKEHOLDER VALUE CREATIO
Slide 11: Uniquely Positioned To Create Long-Term Value
Uniquely Positioned To Create Long-Term Value UNIQUE PORTFOLIO AND EXECUTION FOCUS DELIVERING A TRACK RECORD OF OUTPERFORMANCE MEGATRENDS RIGHT STRATEGY, RIGHT UNIQUE FULL EXPANDING COMPETITIVE POSITIONED FOR ACCELERATING PORTFOLIO SYSTEM SOLUTIONS MOAT OUTPERFORMANCE Consumer expectations and Optim
Slide 12: Financial Track Record & Performance
FINANCIAL TRACK RECORD & PERFORMANCE 11
Slide 13: Right Strategy, Rigorously Executed
Right Strategy, Rigorously Executed FINANCIAL FRAMEWORK DRIVES LONG-TERM OUTPERFORMANCE DISCIPLINED • Current and future product lines driving record new business awards and sustained growth-over-market REVENUE GROWTH • Balanced growth across regions, end markets and technologies • Relentless focus
Slide 14: Strengthening Credit Profile Over Time
Strengthening Credit Profile Over Time PROACTIVE PORTFOLIO MANAGEMENT POSITIONING APTIV FOR CONTINUED GROWTH 2021 2023 S&PS 74% S&PS 72% PRODUCT PORTFOLIO AS&UX 26% AS&UX 28% ADJUSTED GROWTH1 +15% +12% Reported Revenue $15.6B $20.1B EBITDA MARGIN2 12.8% 13.9% EBITDA2 $2.0B $2.8B OPERATING CASH FLOW
Slide 15: Disciplined Revenue Growth
Disciplined Revenue Growth BALANCED ACROSS PLATFORMS, CUSTOMERS AND REGION #2 CV/Industrial #1 #3 Americas Truck/SUV #4 Asia Pass Car CUSTOMERS END MARKETS #5 #6 #7 Americas Other Asia #8 Truck/SUV Pass Car #9 #10 Europe Europe Pass Car Truck/SUV Note: Based on 2023 revenue 14
Slide 16: Relentless Cost Structure Optimization
Relentless Cost Structure Optimization STRONG OPERATING LEVERAGE DRIVEN BY FLEXIBLE AND EFFICIENT COST STRUCTURE FLEXIBLE BUSINESS MODEL IMPROVED COST STRUCTURE SUPPLY CHAIN RESILIENCY • Flexible business model funds growth • Continued rollout of standardized processes • Relentless focus on driving
Slide 17: Strong Cash Flow Generation
Strong Cash Flow Generation HIGHLY DISCIPLINED CAPITAL DEPLOYMENT RESULTS IN STRONG CASH FLOW CONVERSION STRATEGIC FRAMEWORK OPERATING CFBF1 & CASH Profitable growth with the right customers & CASH FLOW CONVERSION2 platforms ($M) ($M) Leveraging industry-leading operating model to 85% drive effi
Slide 18: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile NEXT MATURITIES IN 2025 DEBT MATURITY PROFILE AS OF Q1 2024 OUTSTANDING DEBT (as of Q1 2024) • ~15 years weighted average debt maturity 2.396% 3NC1 3.10% Sr Notes • 3.1% weighted average rate $700 $1,500 • 1.8x Net Debt / LTM Adj. EBITDA1 4.15% Sr Notes • Fully re
Slide 19: Capital Deployment Track Record
Capital Deployment Track Record CASH DEPLOYMENT FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD M&A TRACK RECORD PURCHASE REVENUE1 PRICE CASH RETURNED MERGERS & $3.5B $430M TO SHAREHOLDERS ACQUISITIONS ~30% ~40% $1.8B $750M $0.7B
Slide 20: Summary
Summary CONTINUED EXECUTION IN A CHALLENGING MARKET ENVIRONMENT STRONG UNDERLYING BUSINESS PERFORMANCE • Robust growth across our safe, green and connected portfolio • Expanding our competitive moat and key capabilities to win DISCIPLINED CAPITAL DEPLOYMENT • Strong operating leverage driven by flex
Slide 21: Appendix
» APPENDIX
Slide 22: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2023 2021 Reported net sales % change 15% 20% Less: foreign currency exchange and commodities (1%) 5% Less: acquisitions 4% -% Adjusted revenue growth 12% 15% 2023 2021 Reported Revenue Growth 15% 20% Signal And Power Solutions Reported Revenue Growth 11% 22% Advanced Safe
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2023 Net income attributable to Aptiv 2,938 Interest expense 285 Other income, net (63) Income tax (benefit) (1,928) Equity loss, net of tax 299 Net income attributable to noncontrolling interest 28 Operating income 1,559 Amortization 233 Restructuring 211
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) LTM 1Q 2024 2023 2021 Net income attributable to Aptiv 2,994 2,938 590 Interest expense 283 285 150 Income tax (benefit) expense (1,886) (1,928) 101 Net income attributable to noncontrolling interest 31 28 19 Net loss attributable to redeemable noncontrolli
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2023 Cash flows from operating activities: Net income 2,966 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 912 Restructuring expense, net of cash paid 83 Working capital (128) Pension contribu
Slide 26: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 2023 Net income attributable to ordinary shareholders 2,909 Mandatory convertible preferred share dividends 29 Net income attributable to Aptiv 2,938 Adjusting items: Amortization 233 Restructuring 211 Other acqu
Slide 27: Aptiv Overview
Aptiv Overview