Slide 1: Second Quarter 2022 Earnings Call
August 4, 2022 APTIV Second Quarter 2022 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, includi
Slide 3: Second Quarter Highlights
Second Quarter Highlights STRONG REVENUE GROWTH AND BOOKINGS DESPITE THE CHALLENGING ENVIRONMENT REVENUE MONITORING IMPACT OF $4.1B $8.2B $14.2B COVID SHUTDOWNS IN CHINA 2Q up 9% YTD up 6% AND WEAKNESS IN EUROPE RECORD BOOKINGS DRIVEN EBITDA BY PORTFOLIO OF ADVANCED INCREMENTAL MATERIAL $365M $843M
Slide 4: Navigating Through the Current Environment
Navigating Through the Current Environment INDUSTRY HEADWINDS EXPECTED TO CONTINUE IN 2H 2022 2Q 2022 PRODUCTION NEAR-TERM MACRO PRESSURES REMAIN AS NEW CHALLENGES ARISE… GLOBAL VEHICLE 1% PRODUCTION1 EUROPEAN PRODUCTION • Continued impact of semiconductor shortage on production volumes • Impact of
Slide 5: Mitigating Actions And Risk Management
Mitigating Actions And Risk Management CONTINUING TO IMPROVE AND TRANSFORM IN THE CURRENT ENVIRONMENT RIGHT SIZING AND EFFECTIVELY MANAGING COLLABORATING OPTIMIZING THE BUSINESS SUPPLY CHAIN DISRUPTIONS WITH CUSTOMERS ASSUMING FY 2022 IN REGION GLOBAL SCALE SUPPORTING RE-DESIGN PROJECTS TO GLOBAL VE
Slide 6: Validation of Industry-Leading Portfolio
Validation of Industry-Leading Portfolio COMPETITIVE MOAT EXPANDS WITH ONE APTIV APPROACH ADVANCED TECHNOLOGIES BRAIN AND NERVOUS SYSTEM CAPITALIZING ON SAFE, GREEN PROVIDING FULL SYSTEM-LEVEL AND CONNECTED MEGATRENDS SOLUTIONS AND CAPABILITIES ACTIVE SAFETY ARCHITECTURE OPTIMIZATION Global leader i
Slide 7: Winning Across the Portfolio
Winning Across the Portfolio RECORD NEW BUSINESS AWARDS DRIVEN BY PORTFOLIO OF RELEVANT TECHNOLOGIES BOOKINGS ADVANCED SAFETY ACTIVE SAFETY Lifetime gross program revenues, $ Billions 1H 2022 & USER EXPERIENCE $20.3B $14.2 $ 8.8B IN 2Q 2022 $ 4.5B IN 2Q 2022 FY 2020 FY 2021 $18B $24B ~$9.6B YTD ~$4.
Slide 8: Advanced Safety & User Experience
Advanced Safety & User Experience INDUSTRY-LEADING CAPABILITIES IN CENTRALIZED COMPUTE, PERCEPTION SYSTEMS AND SOFTWARE 2Q 2022 HIGHLIGHTS 2Q 2022 KEY AWARDS • Growth Over Market: 6% impacted by semiconductor shortage and China shutdowns FULL SYSTEM SOLUTION FOR SCALABLE ACTIVE • Active Safety growt
Slide 9: Signal & Power Solutions
Signal & Power Solutions EXPANDING LEADERSHIP POSITION IN VEHICLE ARCHITECTURE SOLUTIONS 2Q 2022 HIGHLIGHTS 2Q 2022 KEY AWARD • Growth Over Market: 9% HIGH VOLTAGE ARCHITECTURE SOLUTION FOR EUROPEAN BEVS WITH GLOBAL OEM • Continued growth with emerging EV platforms and OEMs • Robust growth in CV and
Slide 10: Demonstrating Through-Cycle Resiliency
Demonstrating Through-Cycle Resiliency EXECUTING ON OUR STRATEGY AND BUILDING A MORE SUSTAINABLE BUSINESS VALIDATED INVESTMENT THESIS LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES STRENGTHENING • Leading market positions around safe, green and connected megatrends OUR BUSINESS • ~10% GoM three-year ave
Slide 11: 2Q 2022 vs. 2Q 2021
2Q 2022 vs. 2Q 2021 ($ Millions, except per share amounts) 2Q 2022 Fav / (Unfav) COMMENTS • AS&UX 6% GoM, impacted by semiconductor shortage REPORTED REVENUE $250 and China shutdowns $4,057 Adjusted Growth %1 | Growth Over Market 9% | 8% • S&PS 9% GoM, driven by HV and favorable mix in NA EBITDA2 $3
Slide 12: 2Q 2022 Revenue
2Q 2022 Revenue STRONG TOP LINE OUTPERFORMANCE ACROSS REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted Growth1 | Growth Over Market (GoM) 9% Adj 1 8% GoM CHINA2 N. AMERICA EUROPE $36 ($107) $321 21% Adj 4% Adj (2%) Adj 9% GoM 9% GoM 7% GoM $4,057 $3,807 TOTAL APTIV GOM IMPACT OF (1%) FROM CHINA L
Slide 13: 2Q 2022 Segment Recap
2Q 2022 Segment Recap ONGOING SUPPLY CHAIN DISRUPTIONS AND MACRO CHALLENGES WEIGH ON MARGINS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 OP INCOME2 REVENUE EBITDA2 OP INCOME2 10%1 7%1 (18%) (79%) (22%) (2.2x) $2,846 $3,039 $430 $970 $1,026 $351 $6
Slide 14: 2022 Macro Overview
2022 Macro Overview GLOBAL VEHICLE PRODUCTION OUTLOOK OF 81.5 MILLION UNITS GLOBAL NORTH AMERICA EUROPE CHINA 34% of Revenue2 33% of Revenue2 22% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1Q22 4% (7%) 1Q22 7% (1%) 1Q22
Slide 15: 2022 Full Year Outlook
2022 Full Year Outlook ($ Millions, except per share amounts) FY 2022 FY 2021 FY 2022 COMMENTS REPORTED REVENUE $17,000 – 17,300 $15,618 • AS&UX ~9% GoM, driven by ramp-up in Active Safety Adj. Growth %1 | Growth Over Market ~13% | ~10% 15% | 15% • S&PS ~11% GoM, driven by HV and non-auto growth EBI
Slide 16: 2022 Outlook Versus Prior Guidance
2022 Outlook Versus Prior Guidance OUTLOOK ASSUMES LOWER EUROPE VOLUMES DRIVEN BY CONTINUED SUPPLY CONSTRAINTS AND WEAKER MACROECONOMIC ENVIRONMENT ~$260 ~$110 ~$260 ~($690) ~($480) REVENUE1 FX ($365) $ Millions Comm ($115) $17,950 KEY CONSIDERATIONS $17,150 • Cost recoveries, offsetting incremental
Slide 17: Second Half 2022 Business Drivers
Second Half 2022 Business Drivers VOLUME RECOVERY AND PRICING INITIATIVES CONTRIBUTING TO SIGNIFICANT SECOND HALF GROWTH REVENUE1 ADJUSTED OPERATING INCOME2 $ Millions $ Millions, % of Sales 11.9% ~$100 ~$166 ~$80 ~($300) ~$20 ~$60 ~$800 ~$280 $1,063 $8,915 $8,235 6.5% ~32% Incrementals $537 1H 2022
Slide 18: Summary
Summary MANAGING NEAR-TERM HEADWINDS WHILE ENHANCING THROUGH-CYCLE RESILIENCY COMPETITIVE POSITIONING REMAINS STRONG Targeting 10% growth above market in 2022 despite global disruptions, at the top end of long term 8-10% framework EXPECT IMPROVEMENTS IN SECOND HALF PERFORMANCE Cost management, price
Slide 19: Appendix
» APPENDIX
Slide 20: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2Q 2022 YTD 2022 Reported net sales % change 7% 5% Less: foreign currency exchange and commodities (2%) (1%) Adjusted revenue growth 9% 6% Reflective of management estimates due to integration of businesses 2Q 2022 YTD 2022 Reported Revenue Growth 7% 5% Signal And Power So
Slide 21: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 2Q 2022 YTD 2022 ($ millions) Revenue OI Adj Revenue OI Adj 2Q 2021: Signal And Power Solutions 2,846 313 5,868 719 Volume, net of contractual price reductions 292 83 362 85 FX and commodities (99) (32) (85) (82) Operational performance - (86) - (164) Other -
Slide 22: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2Q 2022 2Q 2021 YTD 2022 YTD 2021 Net (loss) income attributable to Aptiv (45) 163 44 458 Interest expense 56 38 99 78 Other expense (income), net 25 - 64 (1) Income tax expense 16 28 37 76 Equity loss, net of tax 72 53 135 95 Net (loss) income
Slide 23: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 2Q 2022 2Q 2021 YTD 2022 YTD 2021 Net (loss) income attributable to Aptiv (45) 163 44 458 Interest expense 56 38 99 78 Income tax expense 16 28 37 76 Net (loss) income attributable to noncontrolling interest (27) 3 (26) 8 Depreciation and a
Slide 24: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 2Q 2022 2Q 2021 YTD 2022 YTD 2021 Net (loss) income attributable to ordinary shareholders (61) 147 12 426 Mandatory convertible preferred share dividends 16 16 32 32 Net (loss) income attributable to Aptiv (45) 1
Slide 25: Shares Outstanding
Shares Outstanding (millions) 2Q 2022 2Q 2021 YTD 2022 YTD 2021 Weighted average ordinary shares outstanding, basic 270.93 270.49 270.86 270.40 Dilutive shares related to RSUs - 0.57 0.25 0.70 Weighted average ordinary shares outstanding, including dilutive shares 270.93 271.06 271.11 271.10 Weighte
Slide 26: Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income
Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income ($ millions) 20221 Net income attributable to Aptiv 630 Interest expense 212 Other expense, net 52 Income tax expense 135 Equity loss, net of tax 269 Net loss attributable to noncontrolling interest (18) Operating income 1,280 Amortiz
Slide 27: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20221 Net income attributable to Aptiv 630 Interest expense 212 Income tax expense 135 Net loss attributable to noncontrolling interest (18) Depreciation and amortization 786 EBITDA 1,745 Other expense, net 52 Equity loss, net of t
Slide 28: 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) 20221 Net income attributable to ordinary shareholders 567 Mandatory convertible preferred share dividends 63 Net income attributable to Aptiv 630 Adjusting items: Amortization 148 Restructuring 102
Slide 29: Aptiv
“APTIV: