Slide 1: Fourth Quarter 2017 Earnings Call
February 1, 2018 >» APTIV Fourth Quarter 2017 Earnings Call “APTIV:
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: Recent Highlights
Re cent Ife i rh To /$12.9B j | ‘it |e, wee INCOME ot 6B. \\ \ EARNINGS PER SHARE ~~ $4.64 FY Up 10.5% Note: Revenue growth exclud fe see appendixfor detail and p 3 ag 204 ———S—_S NEWRECORD LN BOOKINGS OF 19.38. COMPLETED POWERTRAIN SPIN-OFF AHEAD OF SCHEDULE °
Slide 4: 2017 Milestones
2017 Milestones CREATED A MORE FOCUSED, MORE PROFITABLE BUSINESS WHILE CONTINUING TO INVEST EXCEEDED FINANCIAL CONTINUED PORTFOLIO WINNING TODAY WHILE COMMITMENTS WHILE ENHANCEMENTS AND BUILDING FOUNDATION FOR CONTINUING TO INVEST STRATEGIC INVESTMENTS THE FUTURE 2017 Bookings3 Sales Growth1 SALES G
Slide 5: Aptiv Addressing Mobility's Toughest Challenges
Aptiv Addressing Mobility's Toughest Challenges GLOBAL TECHNOLOGY LEADER THAT DEVELOPS SAFER, GREENER AND MORE CONNECTED SOLUTIONS, WHICH ENABLE THE FUTURE OF MOBILITY SMART VEHICLE ARCHITECTURE SMART MOBILITY SOLUTIONS SOFTWARE ACTIVE SAFETY SENSING AND USER COMPUTING EXPERIENCE SIGNAL AND POWER CO
Slide 6: Introducing New Segment Names
Introducing New Segment Names SEGMENTS REFLECT EVOLVING CAPABILITIES AS THE ONLY PROVIDER OF INTEGRATED BRAIN AND NERVOUS SYSTEM Advanced Safety & User Experience Infotainment Active Connectivity Mobility & & User Safety & Security Services Experience 6 Q4 2017 Earnings | February 1, 2018 | Aptiv
Slide 7: Global Mobility & Services Capabilities
Global Mobility & Services Capabilities UNMATCHED POSITION IN MOBILITY & SERVICES WITH DEEP CAPABILITIES IN SOFTWARE DEVELOPMENT, AUTOMOTIVE GRADE INDUSTRIALIZATION AND SYSTEMS INTEGRATION ~50 PhDs IN 250+ ENGINEERS ~70 CARS TODAY WITH 10M CONTROLLERS APPLICABLE FIELDS DEVOTED TO 150+ ON THE ROAD BY
Slide 8: Winning Across the Portfolio
Winning Across the Portfolio KEY CUSTOMER AWARDS IN EACH BUSINESS REINFORCE GROWTH OUTLOOK INFOTAINMENT & UX ACTIVE SAFETY $18.9B $19.3B $17.6B $16.4B $5.2 $6.2 $4.7 ADVANCED SAFETY AND USER $5.2 EXPERIENCE1 CHINESE MULTINATIONAL MULTI-OEM ALLIANCE INFOTAINMENT SHORT RANGE RADAR ENGINEERED ELECTRICA
Slide 9: Strategic Awards with BMW
Strategic Awards with BMW STRATEGIC AWARDS IN ACTIVE SAFETY AND USER EXPERIENCE REINFORCE APTIV LEADERSHIP IN NEXT GENERATION FEATURES AND FUNCTIONALITY Cs) ADAS MULT! DOMAIN CONTROLLERS @ SENSORS: RADAR AND VISION CP) MULTI-LAYER DISPLAY (MLD) CLUSTER ma za a Se itae-| in BS 9 Q4 2017 Earnings | Fe
Slide 10: Aptiv at CES 2018
Aptiv at CES 2018 400+ 2,300 115 AUTOMATED RIDES CUSTOMER VISITS INVESTOR VISITS A P T I V GENERAL PUBLIC GOVERNMENT 4.997 LYFT USER RATING 10 Q4 2017 Earnings | February 1, 2018 | Aptiv
Slide 11: 2017 Results Exceeded September Investor Conference Guidance
2017 vs. 2016 2017 RESULTS EXCEEDED SEPTEMBER INVESTOR CONFERENCE GUIDANCE ($ millions, except per share amounts) 2017 Fav / (Unfav) 2016 PF3 COMMENTS REPORTED REVENUE $895 • Production up 0.8% $12,884 $11,989 • Mid single digit GoM Adjusted Growth %1 | Growth Over Market 4.8% | 4.0% • Strong operat
Slide 12: Q4 2017 Revenue Growth
Q4 2017 Revenue Growth STRONG GROWTH IN EUROPE AND ASIA MORE THAN OFFSETTING NORTH AMERICAN PASSENGER CAR DECLINES REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 4%1 N. AMERICA EUROPE CHINA $213 (6%) Adj 11% Adj (3%) GoM 4% GoM $3 5% Adj $3,440 S. AMERICA 5% GoM $156 26% Adj
Slide 13: Q4 2017 Operating Income and EPS Growth
Q4 2017 Operating Income and EPS Growth STRONG OPERATIONAL PERFORMANCE WHILE CONTINUING TO INVEST OPERATING INCOME1 EPS1 $ Millions Earnings Per Share (80) bps (4%) $32 ($28) ($0.11) $0.02 13.1% $0.16 $28 13.9% ($0.13) ($62) $45 $450 $435 $1.34 $1.28 2 2 4Q16 Price Sales FX / Comm Perf, D&A, Mobilit
Slide 14: Advanced Safety & User Experience Highlights
Advanced Safety & User Experience Highlights RECORD REVENUE AND BOOKINGS; CONTINUING TO INVEST IN MOBILITY & SERVICES REVENUE OP INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions • FY Active Safety Revenue Up 66% 4Q FY 4Q FY 19%1 290 20 • FY Infotainment Revenue Up 15% bps 19%1 bps EX MOBILITY IN
Slide 15: Signal & Power Solutions
Signal & Power Solutions CONTINUED OPERATIONAL EXECUTION DESPITE TOP LINE HEADWINDS REVENUE OP INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions • Passenger car headwinds as expected 4Q FY 4Q FY o North American 4Q passenger car (1%)1 0%1 10 (70) bps production down (17%), FY down (14%) bps 13.7%
Slide 16: 2018 Guidance
2018 Guidance 2018 GUIDANCE CONSISTENT WITH LONG TERM PLANNING FRAMEWORK ($ millions, except per share amounts) Q1 20183 20183 FULL YEAR COMMENTS • Market: Flat to Up 1% REPORTED REVENUE $3,275 - $3,375 $13,400 - $13,800 • AS&UX: Up ~10% Adjusted Growth %1 | Growth Over Market ~3% | ~4% 5 - 6% | ~5%
Slide 17: Investments Funded by Operating Performance
Investments Funded by Operating Performance RELENTLESSLY FOCUSED ON COSTS; FUNDING NEW MOBILITY INVESTMENTS WITHIN FRAMEWORK OF LONG TERM TARGETS 2020+ 2018 • Key growth tech reaches scale OPERATING INCOME 14.0 - 14.5% • Stranded costs eliminated $ Millions • Productivity initiatives • Functional pr
Slide 18: Capital Allocation Priorities
Capital Allocation Priorities FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMEN’ a "+ wT, sy, _- « ~ Maintain investment graderatings Pm p M&A AND SHARE REPURCHASES 45%-55% + Organic re-investment to drive growth and increase returns : a == M&A foreccae bolt-on’s/ diversification and techno
Slide 19: Summary
Summary DELIVERED STRONG 2017 » Exceeded commitments while executing spin-off ahead of schedul * Continued portfolio enhancements through acquisitions and strateg CONFIDENT IN 2018 OUTLOOK « Mid-single digit organic revenue growth driven by portfolio of advanced technologies * Solid operating margin
Slide 20: Appendix
“APTIV:
Slide 21: Q4 2017 vs. Q4 2016
Q4 2017 vs. Q4 2016 ($ millions, except per share amounts) COMMENTS 4Q 2017 Fav / (Unfav) 4Q 2016 PF3 • Production up 0.5% REPORTED REVENUE $310 • Strong Europe and China growth $3,440 $3,130 Adjusted Growth %1 | Growth Over Market 3.6% | 3.1% • N.A. passenger car down (17%) • Strong operational per
Slide 22: Historical Segment Financial Detail
Historical Segment Financial Detail 2016 2017 Revenue, $M 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY AS&UX 625 672 696 746 2,739 821 823 846 956 3,446 S&PS 2,277 2,353 2,288 2,401 9,319 2,342 2,346 2,318 2,501 9,507 Eliminations (19) (19) (14) (17) (69) (20) (16) (16) (17) (69) Aptiv $2,883 $3,006 $2,970 $3,130
Slide 23: Adjusted Growth Financial Detail
Adjusted Growth Financial Detail 2016 2017 Adjusted Growth %, YoY 1Q 2Q 3Q 4Q FY 1Q 2Q 3Q 4Q FY AS&UX 9.5% 10.5% 19.2% 23.6% 15.8% 27.0% 18.4% 13.9% 19.1% 19.4% S&PS 4.5% 8.1% 10.7% 7.5% 7.7% 4.4% -0.1% -1.4% -1.3% 0.4% Aptiv 5.9% 8.9% 12.8% 11.0% 9.6% 9.3% 4.2% 2.2% 3.6% 4.8% North America 1.7% 4.4
Slide 24: Mechatronics Financial Detail
Mechatronics Financial Detail ($ millions) Advanced Safety and User Experience – Reported Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Revenue $700 $750 $765 $809 $3,024 Adjusted EBITDA1 98 114 113 113 438 Adjusted operating income1,2 77 94 90 90 351 Adjusted operating margin1,2 11.0% 12.5% 11.8% 11.1% 11.6
Slide 25: Mechatronics Financial Detail
Mechatronics Financial Detail ($ millions, except per share amounts) Aptiv – Reported Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Revenue $2,958 $3,084 $3,039 $3,193 $12,274 Adjusted EBITDA1 480 536 514 581 2,111 Adjusted operating income1,2 364 415 389 455 1,623 Adjusted operating margin1,2 12.3% 13.5% 12
Slide 26: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) Q4 2017 Q4 2016 2017 2016 Net income attributable to Aptiv $256 $281 $1,355 $1,257 Interest expense 37 33 140 155 Other (income) expense, net (1) 311 21 384 Income tax expense (benefit) 135 (4) 223 167 Equity income, net of tax (7) (12) (31) (35) Income fro
Slide 27: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) Q4 2017 Q4 2016 2017 2016 Net income attributable to Aptiv $256 $281 $1,355 $1,257 Interest expense 37 33 140 155 Other (income) expense, net (1) 311 21 384 Income tax expense (benefit) 135 (4) 223 167 Equity income, net of tax (7) (12) (31) (35) Income fro
Slide 28: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) Q4 2017 Q4 2016 2017 2016 Net income attributable to Aptiv $256 $281 $1,355 $1,257 Income from discontinued operations attributable to Aptiv, net of tax (49) (99) (334) (423) Income from continuing operations attributable to Aptiv
Slide 29: Shares Outstanding
Shares Outstanding (millions) (millions) Q4 Q4 2017 2017 Q4Q4 2016 2016 2017 2017 2016 2016 Weighted average ordinary shares outstanding, basic 265.84 265.84 270.38 270.38 267.16 267.16 273.02 273.02 Dilutive shares related to RSUs 1.601.60 1.26 1.26 0.87 0.87 0.68 0.68 Weighted average ordinary sha
Slide 30: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) Q1 20181 20181 Net income attributable to Aptiv $166 $1,088 Interest expense 35 140 Other (income) expense, net (10) (30) Income tax expense 79 244 Equity income, net of tax (8) (30) Net income attributable to noncontrolling interest 7 40 Operating income $269
Slide 31: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) Q1 20181 20181 Net income attributable to Aptiv $166 $1,088 Restructuring 88 152 Other acquisition and portfolio project costs 29 64 Deferred compensation related to nuTonomy acquisition 14 57 Tax impact of adjusting items and other (
Slide 32: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2017 2016 2015 2014 Net income attributable to Aptiv $1,355 $1,257 $1,450 $1,351 Interest expense 140 155 124 131 Other (income) expense, net 21 384 114 42 Income tax expense 223 167 161 146 Equity income, net of tax (31) (35) (16) (21) Income
Slide 33: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Net income attributable to Aptiv $335 $369 $395 $256 Interest expense 33 35 35 37 Other (income) expense, net 23 (8) 7 (1) Income tax expense 19 38 31 135 Equity income, net of tax (11) (7) (6) (7) Income from di
Slide 34: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Net income attributable to Aptiv $425 $258 $293 $281 Interest expense 41 40 41 33 Other (income) expense, net (1) 8 66 311 Income tax expense (benefit) 53 82 36 (4) Equity income, net of tax (6) (7) (10) (12) Inc
Slide 35: Non-US GAAP Financial Metrics: Adjusted EPS
Non-US GAAP Financial Metrics: Adjusted EPS ($ millions, except per share amounts) 2017 2016 2015 2014 Net income attributable to Aptiv $1,355 $1,257 $1,450 $1,351 Income from discontinued operations attributable to Aptiv, net of tax (334) (423) (637) (459) Income from continuing operations attribut
Slide 36: Non-US GAAP Financial Metrics: Adjusted EPS
Non-US GAAP Financial Metrics: Adjusted EPS ($ millions, except per share amounts) Q1 2017 Q2 2017 Q3 2017 Q4 2017 Net income attributable to Aptiv $335 $369 $395 $256 Income from discontinued operations attributable to Aptiv, net of tax (115) (72) (98) (49) Income from continuing operations attribu
Slide 37: Non-US GAAP Financial Metrics: Adjusted EPS
Non-US GAAP Financial Metrics: Adjusted EPS ($ millions, except per share amounts) Q1 2016 Q2 2016 Q3 2016 Q4 2016 Net income attributable to Aptiv $425 $258 $293 $281 Income from discontinued operations attributable to Aptiv, net of tax (216) (11) (97) (99) Income from continuing operations attribu