Aptiv Plc · NYSE:APTV
Aptiv — CECP CEO Investor Forum 2020
21 slides from Aptiv's conference presentation, Feb 24, 2020
Slide 1: CECP CEO Investor Forum
February 24, 2020 CECP CEO INVESTOR FORUM Kevin Clark President and Chief Executive Officer
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: Aptiv Overview
EG Aptiv Overview POSITIONED TO WIN 2019 FINANCIAL PERFORMANCE1 $ billions, except per share amounts We are a global technology $14.4 REVENUE company that develops safer, OPERATING greener and more connected $1.5 INCOME solutions, which enable the $4.80 EARNINGS PER SHARE future of mobility. $1.6 OP
Slide 4: Compelling Mission
Compelling Mission CLEAR AND COMPELLING MISSION AT THE HEART OF EVERYTHING WE DO MISSION STRATEGY EXECUTION SUSTAINABLE BY DESIGN A society that sees zero fatalities, Zero emissions: minimize the vehicle’s Seamless integration between the car, zero injuries and zero accidents total lifecycle environ
Slide 5: Portfolio Aligned To Safe, Green And Connected
Portfolio Aligned To Safe, Green And Connected APTIV TECHNOLOGIES HELPING ADDRESS CUSTOMERS TOUGHEST CHALLENGES SAFE GREEN CONNECTED APTIV MISSION APTIV MISSION APTIV MISSION A SOCIETY THAT SEES ZERO FATALITIES, ZERO EMISSIONS: MINIMIZE THE VEHICLE’S SEAMLESS INTEGRATION BETWEEN THE CAR, ZERO INJURI
Slide 6: Right Strategy, Rigorously Executed
Right Strategy, Rigorously Executed DRIVING OUTPERFORMANCE TODAY, AND IN THE FUTURE MISSION STRATEGY EXECUTION SUSTAINABLE BY DESIGN • Built top-tier automated mobility technology capabilities Automated • Established data monetization platform Driving • Expanded into non-auto markets FUTURE PLATFORM
Slide 7: Proactively Addressing the Changing Environment
Proactively Addressing the Changing Environment SMART EXECUTION OF OUR BUSINESS MODEL AND TIMELY CAPITAL DEPLOYMENT HAS ENABLED APTIV TO ADAPT AND THRIVE IN A DYNAMIC MARKET ACQUISITIONS increasing our scale and leverage in INVESTED IN AUTOMATED DRIVING & DATA electrical architecture, while expandin
Slide 8: Aptiv Perfectly Positioned Today
Aptiv Perfectly Positioned Today PROVIDING END-TO-END SOLUTIONS THAT ENABLE THE COMMERCIALIZATION OF NEW MOBILITY Aptiv’s advanced technologies and deep …allows us to conceive, specify systems knowledge across the brain and and deliver solutions for our nervous system of the vehicle… customers’ toug
Slide 9: Funding Investments for Growth
Funding Investments for Growth IMPROVEMENTS IN BUSINESS FOUNDATION ALLOWING US TO REINVEST FOR ACCELERATED GROWTH AND MARGIN EXPANSION THROUGH THE CYCLE MISSION STRATEGY EXECUTION SUSTAINABLE BY DESIGN PERFORMANCE AND INVESTMENTS COMPETITIVE MOAT EXPANDING 2015 - 2020E Reinvestment in the business i
Slide 10: Fast Growing Business Gaining Scale
Fast Growing Business Gaining Scale LEVERAGING FULL APTIV CAPABILITIES TO INCREASE SCALE AND RELEVANCE IN FAST-GROWING PRODUCT AREAS ACTIVE SAFETY HIGH VOLTAGE ENGINEERED COMPONENTS $ Billions, % Adj Growth1 ELECTRIFICATION $ Billions, % Adj Growth1 $ Billions, % Adj Growth1 6% 30% 50% $5.5+ $2.5+ $
Slide 11: Balanced Capital Deployment
Balanced Capital Deployment FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES OPERATING CASH FLOW Long Term Capital Allocation Priorities4 $ Billions, Free Cash Flow Conversion1 M&A AND SHARE REPURCHASES ~10% 45%-55% DRIVING GROWTH CAGR2 $2.2-2.4 • Organic reinvestment to sup
Slide 12: Strategy Has Delivered Strong Results
Strategy Has Delivered Strong Results EXECUTION TOWARDS LONG TERM FINANCIAL FRAMEWORK CREATING VALUE FOR SHAREHOLDERS GROWTH INCOME TSR Revenue, IHS Production Operating Income1 2015 – 20193 Aptiv | 132 S&P 500 29% 1-Year 2 Peers 12% (2019) Aptiv | 124 APTV 56% Peers2 | 115 S&P 500 44% 3-Year 2 Peer
Slide 13: Sustainable by Design
Sustainable by Design FINANCIAL FRAMEWORK ALIGNED WITH STRATEGY AND VISION MISSION STRATEGY EXECUTION SUSTAINABLE BY DESIGN REVENUE DIVERSIFICATION MORE SUSTAINABLE BUSINESS Disciplined revenue growth with balanced customer, region and end market mix INDUSTRY LEADING PORTFOLIO OF TECHNOLOGIES Contin
Slide 14: More Sustainable through "The How"
More Sustainable through “The How” CULTURE OF CONTINUOUS IMPROVEMENT AROUND OUR PEOPLE, PROCESSES AND PORTFOLIO MAKES APTIV A MORE SUSTAINABLE BUSINESS PEOPLE PROCESSES PORTFOLIO Our people play the key role in executing our We’re improving the resiliency and efficiency of our Our innovative portfol
Slide 15: Winning Culture
Winning Culture SUSTAINABLE CULTURES DELIVER BEST-IN-CLASS PERFORMANCE FOR ALL STAKEHOLDERS RESULTS COMPOUND WELL ABOVE PEERS CORE VALUES AT THE HEART OF APTIV ESG TAKING HOLD Principles for how we work World’s Most Ethical Companies for the eighth year in a row PLAY TO ONE THINK & ACT WIN TEAM LIKE
Slide 16: Sustainability Journey
Sustainability Journey OPERATIONALLY FOCUSED ON MAKING APTIV A MORE DIVERSE COMPANY RIGHT STRUCTURE DIVERSITY EQUALS INNOVATION Beyond the right culture and portfolio of products, we believe it is essential to have the right people, in the right frame of mind, Diversity of thought and experiences ar
Slide 17: Incentives Aligned to Long-Term Value
Incentives Aligned to Long-Term Value PAY-FOR-PERFORMANCE CULTURE WITH METRICS TIGHTLY LINKED TO LONG-TERM VALUE CREATION PERFORMANCE BASED LONG-TERM VALUE FOCUSED ACHIEVED THE RIGHT WAY Named Executive Officer Pay Mix Incentives Aligned To Creating Strategic Results Modifier (SRM) Component of AIP
Slide 18: Board Of Directors Engagement
Board Of Directors Engagement STRONG PARTNERSHIP BETWEEN BOARD OF DIRECTORS AND MANAGEMENT ON STRATEGY AND RISK MANAGEMENT STRATEGY FINANCE INVESTOR SENTIMENT • Product portfolio review • Financial performance and disclosures • Market and industry insight and assessment • Operational planning • Annu
Slide 19: Aptiv 2025 Vision
Aptiv 2025 Vision … LOGICAL EXTENSION OF OUR STRATEGY ADVANCED SAFETY & SIGNAL & POWER USER EXPERIENCE SOLUTIONS WINNING CULTURE Winning teams deliver best-in-class customer and shareholder value FUTURE PLATFORMS EMERGE 2025 REVENUE Investments result in accretive solutions IMPROVED GROWTH PROFILE ~
Slide 20: Summary
Summary STRATEGY, PORTFOLIO AND RIGOROUS FOCUS ON EXECUTION MAKE APTIV A MORE SUSTAINABLE BUSINESS MISSION STRATEGY EXECUTION SUSTAINABLE BY DESIGN Deliver safe, green and Full system solutions Accelerating growth in Success emanates from a connected technologies aligned to the safe, green current a
Slide 21: “APTIV:
“APTIV: