Slide 1: Fourth Quarter 2023 Earnings Call
January 31, 2024 APTIV Fourth Quarter 2023 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: Fourth Quarter Highlights
Fourth Quarter Highlights STRONG UNDERLYING BUSINESS PERFORMANCE REVENUE $4.9B $20.1B $7.7B 4Q BOOKINGS ACROSS PORTFOLIO OF INDUSTRY-LEADING ADVANCED TECHNOLOGIES 4Q up 2% FY up 12% +2% 4Q ADJUSTED GROWTH IMPACTED BY UAW EBITDA $772M $2,788M STRIKE AND CUSTOMER MIX 4Q Margins of 15.7% FY Margins of
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: Record New Business Awards
Record New Business Awards NEW BUSINESS AWARDS DRIVEN BY PORTFOLIO OF ADVANCED TECHNOLOGIES BOOKINGS Lifetime gross program revenues, $ Billions THE ONLY FULL SYSTEM SOLUTIONS PROVIDER $34 ~$35 $32 ACTIVE SAFETY $ 3.4B FY 20231 $ 11.4B FY 2021-2023 $24 $22 AS&UX $18 HIGH VOLTAGE ELECTRIFICATION $ 6.
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience INDUSTRY LEADING CAPABILITIES IN CENTRALIZED COMPUTE, PERCEPTION SYSTEMS AND SOFTWARE 2023 COMMERCIAL ACHIEVEMENTS OPERATIONAL EXCELLENCE WIND RIVER STUDIO • LARGE CANADIAN CSP: enabling full O-RAN deployment in NA ENGINEERING EFFICIENCY • HYUNDAI MOBIS: acceleratin
Slide 7: Signal & Power Solutions
Signal & Power Solutions GLOBAL LEADER IN OPTIMIZED, NEXT-GEN ARCHITECTURE SOLUTIONS 2023 COMMERCIAL ACHIEVEMENTS OPERATIONAL EXCELLENCE AUTOMATION INITIATIVES • Implementation of highly advanced automated lines for low voltage GLOBAL EV Vehicle architecture awards across multiple electrical assembl
Slide 8: Aptiv At CES 2024
Aptiv At CES 2024 DEEP ENGAGEMENT WITH 1000+ STAKEHOLDERS ON FUNCTIONAL, FULLY INTEGRATED SOLUTIONS Visitor Highlights SDV Demonstrator Integrating SVA™, L2+ ADAS, 500+ Interior Sensing and Wind River into a drivable customer demo Customers across all regions, with strong executive level engagement
Slide 9: 2024 Outlook
2024 Outlook LONG-TERM STRATEGY AND INVESTMENT THESIS REMAIN INTACT ACCELERATING …DRIVING SUSTAINABLE LONG-TERM … AND DISCIPLINED CAPITAL COMMERCIAL TRACTION… GROWTH AND MARGIN EXPANSION… DEPLOYMENT HIGHER LEVELS OF AUTONOMY GROWTH ABOVE MARKET INVESTMENT IN GROWTH Aptiv’s scalable, modular architec
Slide 10: 4Q 2023 vs. 4Q 2022
4Q 2023 vs. 4Q 2022 YoY Variance ($ Millions, except per share amounts) COMMENTS 4Q 2023 Fav / (Unfav) • GoM impacted by customer/OEM mix including strike REPORTED REVENUE $279 $4,919 impact, slower HV growth Adjusted Growth %1 | Growth Over Market 2% | (5%) • UAW strike impact of (~$100M) EBITDA2 $
Slide 11: 4Q 2023 Revenue
4Q 2023 Revenue NORTH AMERICA IMPACTED BY UAW STRIKE AND CUSTOMER MIX; CHINA LOCALS VS MULTINATIONAL JV’S REVENUE REGIONAL GROWTH $ Millions 2% Adj 1 Adjusted Growth1 | Growth Over Market (GoM) (5%) GoM 1 N. AMERICA EUROPE CHINA2 $62 $29 $188 (7%) Adj 6% Adj 12% Adj (11%) GoM ~flat GoM (8%) GoM $4,9
Slide 12: 4Q 2023 AS&UX Recap
4Q 2023 AS&UX Recap STRONG 4Q OPERATING PERFORMANCE; FULL YEAR IN-LINE WITH EXPECTATIONS REVENUE1 OPERATING INCOME2 4Q COMMENTARY $ Millions $ Millions, % of sales • Active Safety revenue growth up 11%1 17%1 • User Experience down 16%1 due to China OEM mix • UAW strike revenue impact of (~$20M) and
Slide 13: 4Q 2023 S&PS Recap
4Q 2023 S&PS Recap OPERATIONAL PERFORMANCE AND COST RECOVERIES OFFSET LABOR AND MATERIAL COST HEADWINDS REVENUE1 OPERATING INCOME2 4Q COMMENTARY $ Millions $ Millions, % of sales • High Voltage revenue growth up 4%1 16% • Strong revenue growth in China of 15%1 11%1 • YoY FX impact of (~60) bps prima
Slide 14: 2024 Macro Overview
2024 Macro Overview EXPECTING FLAT FULL YEAR GLOBAL PRODUCTION GLOBAL NORTH AMERICA EUROPE CHINA 36% of Revenue2 34% of Revenue2 20% of Revenue2 FY 2024 • Global production shifting FY 2024 • Inventory rebalancing FY 2024 • Decline in production FY 2024 • Exports and government from supply constrain
Slide 15: 2024 Full Year Outlook
2024 Full Year Outlook STRONG REVENUE AND EARNINGS GROWTH YoY Variance FY 2024 COMMENTS ($ Millions, except per share amounts) FY 2024 Fav / (Unfav) REPORTED REVENUE $1,549 • Vehicle production ~flat3 $21,300 – 21,900 Adjusted Growth %1 | Growth Over Market 7% | 6-8% • Updated long-term GoM framewor
Slide 16: 2024 Outlook Versus 2023
2024 Outlook Versus 2023 CONTINUED PROFITABLE GROWTH AND MARGIN EXPANSION REVENUE OPERATING INCOME1 $ Billions $ Billions, % of Sales $0.1 $0.2 $0.0 $0.0 11.8% ($0.4) $0.5 $0.4 $1.2 10.6% $21.6 $2.6 $2.1 $20.1 2023 Sales Growth Net Price Foreign 2024E 2023 Sales Growth Net Price Foreign Other - Perf
Slide 17: Growth Over Market Bridge
Growth Over Market Bridge GROWTH OVER MARKET FRAMEWORK UPDATED TO 6% - 8% GROWTH OVER MARKET: 2023 FRAMEWORK TO 2024 RELEVANT COMMENTARY • NA 2023 Production: Japanese OE’s up 22% vs. D3 up 1% • China weighting: 2023 ~40% Local vs ~60% (2%) | NA Global JV; 2024 50%/50% (4%) (2%) | China 1% • HV 2023
Slide 18: Performance Bridge 2022-2024
Performance Bridge 2022-2024 2023 EXCEEDED ORIGINAL GUIDANCE; CONTINUED STRONG MARGIN EXPANSION IN 2024 OPERATING INCOME1 $0.0 $0.0 $ Billions, % of Sales 11.8% ($0.4) $0.5 $0.4 ($0.1) 10.6% $0.6 ($0.1) $0.5 ($0.4) 9.1% $2.6 $2.1 $1.6 2022 Sales Growth Net Price Foreign Other - Performance & 2023 Sa
Slide 19: Cash Flow Generation
Cash Flow Generation STRONG CASH FLOW GENERATION PROVIDING MULTIPLE DEPLOYMENT OPPORTUNITIES OPERATING CASH FLOW KEY HIGHLIGHTS $ Billions 2023 ~$400M capital returned to shareholders via share repurchases $0.0 $0.0 ($0.1) ~$300M Term Loan A paid off in October $0.5 $2.3 2024 Organic and inorganic i
Slide 20: Summary
Summary LONG-TERM STRATEGY REMAINS ON TRACK STRONG CUSTOMER PARTNERSHIPS LEADING TO NEW BUSINESS AWARDS Three consecutive years of record bookings demonstrating customer validation of industry-leading technologies and securing future revenue growth DRIVING SUSTAINABLE OUTPERFORMANCE Strengthening ou
Slide 21: Appendix
» APPENDIX
Slide 22: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 4Q 2023 2023 Reported net sales % change 6% 15% Less: foreign currency exchange and commodities 1% (1%) Less: acquisitions 3% 4% Adjusted revenue growth 2% 12% 4Q 2023 2023 Reported Revenue Growth 6% 15% Signal And Power Solutions Reported Revenue Growth 6% 11% Advanced Sa
Slide 23: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 4Q 2023 4Q 2022 2023 2022 Net income attributable to Aptiv 905 249 2,938 594 Interest expense 71 62 285 219 Other (income) expense, net (27) 10 (63) 54 Income tax (benefit) expense (680) 25 (1,928) 121 Equity loss, net of tax 72 77 299 279 Net
Slide 24: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 4Q 2023 4Q 2022 2023 2022 Net income attributable to Aptiv 905 249 2,938 594 Interest expense 71 62 285 219 Income tax (benefit) expense (680) 25 (1,928) 121 Net income (loss) attributable to noncontrolling interest 13 18 28 (3) Net income
Slide 25: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 4Q 2023 4Q 2022 2023 2022 Net income attributable to ordinary shareholders 905 233 2,909 531 Mandatory convertible preferred share dividends - 16 29 63 Net income attributable to Aptiv 905 249 2,938 594 Adjusting
Slide 26: Shares Outstanding
Shares Outstanding (millions) 4Q 2023 4Q 2022 2023 2022 Weighted average ordinary shares outstanding, basic 280.95 270.95 276.92 270.90 Dilutive shares related to RSUs 0.26 0.45 0.17 0.28 Weighted average MCPS Converted Shares - - 5.79 - Weighted average ordinary shares outstanding, including diluti
Slide 27: Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income
Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income ($ millions) 20241 Net income attributable to Aptiv 1,235 Interest expense 250 Other income, net (75) Income tax expense 340 Equity loss, net of tax 330 Net income attributable to noncontrolling interest (a) 25 Operating income 2,105
Slide 28: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20241 Net income attributable to Aptiv 1,235 Interest expense 250 Income tax expense 340 Net income attributable to noncontrolling interest (a) 25 Depreciation and amortization 950 EBITDA 2,800 Other income, net (75) Equity loss, n
Slide 29: Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share
Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share ($ millions, except per share amounts) 20241 Net income attributable to Aptiv 1,235 Adjusting items: Amortization 225 Restructuring 150 Other acquisition and portfolio project costs 40 Compensation expense related to acquisitions 30 Tax i
Slide 30: Aptiv
“APTIV: