Slide 1: Second Quarter 2018 Earnings Call
July 31, 2018 APTIV Second Quarter 2018 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: Second Quarter Highlights
a ll ill 5 Second Quarté lights DELIVERED RECORD 2Q DOUBLE-DIGIT REVENUE GROV OP INCOME, EPS AND FREE CASH FLOW > REVENUE $3.7B | $7.3B 2Q Up 12% YTD Up 10% —_ a: OPERATING INCOME $474M | $901M PAN USTOMER « 2a Up 19% | YTD Up 20% A : ny ry, | titty | 9x, ll YVAB . EARNINGS PER SHARE BZ CoATNUEn son
Slide 4: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS BOOKINGS $7.0 Lifetime gross program revenues, $ Billions $6.1 $5.8 $5.6 ADVANCED $5.1 $5.1 SAFETY & USER $4.6 EXPERIENCE $3.8 $3.4 $3.0 SIGNAL & POWER SOLUTIONS 1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1
Slide 5: Advanced Safety & User Experience
Advanced Safety & User Experience WINNING TODAY WITH DIFFERENTIATED SOLUTIONS, WHILE INVESTING TO FURTHER EXTEND TECHNOLOGY LEADERSHIP 2Q 2018 HIGHLIGHTS • 20% growth over market, with improved outlook for 2H 2018 • 3 high performance L2+ Active Safety awards • Integrated Cockpit Controller award le
Slide 6: Continued Awards Reinforce Active Safety Outlook
Continued Awards Reinforce Active Safety Outlook APTIV SCALABLE AND FLEXIBLE APPROACH AND COMPREHENSIVE TECHNOLOGY PORTFOLIO LEADING TO AWARDS WITH BOTH PREMIUM AND HIGH VOLUME OEMS BOOKINGS REVENUE Lifetime gross program revenues, $ Billions $ Billions 2022 2018 $2B+ ~$1B $3.7 $3+ $1.9 2Q YTD 2014
Slide 7: Mobility & Services Update
jo a Zab XP illvons vt : RIDES GIVEN as ON THE LYFT rs eal + NETWORK Mobility & Services Update a ails Maa ge _} f iW mee) efi OUT OF 5 RIDER RATING “SSS FLEET MANAGEMENT ad v4 PARTNER FOR LAS VEGAS iW Ok Whe \ 2Q 2018 Earnings | July 31, 2018 | Aptiv est y,\\
Slide 8: Signal & Power Solutions
Signal & Power Solutions GROWTH OVER MARKET OF 5% DRIVEN BY STRONG GROWTH ACROSS ALL PRODUCT LINES 2Q 2018 HIGHLIGHTS • New Launches accelerate growth: EDS +5%, ECG +12% • Adding accretive bolt-ons: KUM closing, Winchester announcement • Continued penetration of advanced features and functionality d
Slide 9: Winchester Acquisition
Winchester Acquisition WINCHESTERA PLATFORM FOR FUTURE EXPANSION; WELL POSITIONED TO INTEGRATE BOLT-ON’S FOR ADJACENT APPLICATIONS @ Winchester Interconnect. MILITARY & AEROSPACE RAIL & MASS TRANSIT C MEDICAL | TRANSACTION DETAILS + Purchase Price: $650M + Multiple: ~10.6x 2018 EBITDA * Closing: End
Slide 10: 2Q 2018 vs. 2Q 2017
2Q 2018 vs. 2Q 2017 ($ millions, except per share amounts) COMMENTS 2Q 2018 Fav / (Unfav) REPORTED REVENUE $531 • Vehicle production up 2.4% $3,684 • AS&UX 20% GoM, S&PS 5% GoM Adjusted Growth %1 | Growth Over Market 12% | 9% EBITDA2 $629 19% • Conversion on strong sales growth EBITDA Margin 17.1% 4
Slide 11: 2Q 2018 Revenue Growth
2Q 2018 Revenue Growth RECORD REVENUE GROWTH REVENUE $ Millions 12% Adj 1 9% GoM $154 ($59) $436 $3,684 $3,153 Q2 2017 Vol Price FX / Comm Q2 2018 1 Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures 11 2Q 2018 Earnings | July 31, 2018 | Aptiv
Slide 12: 2Q 2018 Operating Income Growth
2Q 2018 Operating Income Growth DOUBLE DIGIT OPERATING INCOME GROWTH DRIVES MARGIN EXPANSION OPERATING INCOME1 PERFORMANCE HIGHLIGHTS $ Millions, % of Sales 19% • Conversion on strong sales $22 ($18) ($59) ($31) • (1.9%) price downs $28 $134 $474 • 30 bps margin expansion • Operations funding invest
Slide 13: 2Q 2018 EPS Growth
2Q 2018 EPS Growth OPERATING INCOME TRANSLATES INTO ROBUST EPS GROWTH EPS1 PERFORMANCE HIGHLIGHTS Earnings Per Share 24% • $0.05 above guidance midpoint ($0.01) • 15.9% tax rate in line with guidance $0.28 $1.40 $1.13 2Q 2017 Operating Income Tax, Share Count & 2Q 2018 Other 1 Adjusted for restructu
Slide 14: Advanced Safety & User Experience Highlights
Advanced Safety & User Experience Highlights CONTINUED DOUBLE DIGIT GROWTH; SUPPORTING MOBILITY INVESTMENTS REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales • 2Q revenue growth Up 23% 80 • Active Safety Up 48% 23%1 bps • Infotainment & UX Up 24% Ex Mobility 12.3% In
Slide 15: Signal & Power Solutions
Signal & Power Solutions MID SINGLE DIGIT GROWTH IN 2018; SOLID GROWTH OVER MARKET REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales 4Q • 2Q revenue growth Up 8% 8%1 • Program launches support accelerated 130 bps growth 14.6% • Strong North America growth despite 13.
Slide 16: 2018 Guidance
2018 Guidance RAISING FULL YEAR OUTLOOK ($ millions, except per share amounts) 3Q 20183 FY 20183 FULL YEAR COMMENTS REPORTED REVENUE $3,425 - 3,525 $14,350 - 14,550 • Market Up ~1% Adjusted Growth %1 | Growth Over Market 10% | 7% 8 - 9% | 7 - 8% • AS&UX: Up Double Digits, S&PS: Up Mid Single Digit $
Slide 17: 2018 Performance Drivers
2018 Performance Drivers RAISING FULL YEAR OPERATING INCOME TO REFLECT HIGHER REVENUE OUTLOOK OPERATING INCOME1 PERFORMANCE HIGHLIGHTS $ Millions, % of Sales ~13% • Double Digit Op Income growth • Conversion on strong sales (50) bps $1,890 – 110 bps 1,920M (70) bps $1,790 – • (2%) price downs (160)
Slide 18: Cash & Balance Sheet Update
Cash & Balance Sheet Update LEVERAGING BALANCE SHEET FOR CONTINUED GROWTH DEBT CASH Debt Estimated Cash Flows $4.1B ~$4.1B ~$2.8B CAPACITY 1.9x ~1.7x 2018 Debt to EBITDA1 Debt to EBITDA OPERATING DRIVING GROWTH CASH FLOW • Added accretive Bolt-On’s; KUM and Winchester M&A • Organic reinvestment to s
Slide 19: Acquisitions Aligned to Aptiv Strategy
Acquisitions Aligned to Aptiv Strategy STRENGTHENING CORE AUTOMOTIVE CAPABILITIES WHILE EXPANDING INTO ADJACENT MARKETS SIGNAL & POWER SOLUTIONS Proforma Revenue Profile Including KUM and Winchester EXPAND LEADERSHIP STRENGTHEN AND DIVERSIFY ELECTRICAL DISTRIBUTION POSITION IN AUTOMOTIVE PRODUCT POR
Slide 20: Aptiv Investment Thesis
Aptiv Investment Thesis EXECUTING ON OUR COMMITMENTS TO SHAREHOLDERS GROWTHABOVE MARKET * 9% 1H 2018 growth over market; AS&UX up 20%; S&PS up 5% * Record $11B 1H 2018 New Business Awards; almost $50B since 2016 * Building stronger competitive moats MARGIN EXPANSION » Relentlessly focused on improvi
Slide 21: Aptiv
“APTIV:
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2018 2Q 2017 Net income attributable to Aptiv 291 369 Interest expense 36 35 Other expense (income), net 7 (8) Income tax expense 83 38 Equity income, net of tax (8) (7) Income from discontinued operations, net of tax - (80) Net income attributable to no
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2018 2Q 2017 Net income attributable to Aptiv 291 369 Interest expense 36 35 Other expense (income), net 7 (8) Income tax expense 83 38 Equity income, net of tax (8) (7) Income from discontinued operations, net of tax - (80) Net income attributable to no
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 2Q 2018 2Q 2017 Net income attributable to Aptiv 291 369 Income from discontinued operations attributable to Aptiv, net of tax - (72) Income from continuing operations attributable to Aptiv 291 297 Adjusting items: Restructuring 15
Slide 25: Shares Outstanding
Shares Outstanding (millions) 2Q 2018 2Q 2017 Weighted average ordinary shares outstanding, basic 264.81 267.41 Dilutive shares related to RSUs 0.67 0.62 Weighted average ordinary shares outstanding, including dilutive shares 265.48 268.03 25 2Q 2018 Earnings | July 31, 2018 | Aptiv
Slide 26: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 3Q 20181 20181 Net income attributable to Aptiv 203 1,095 Interest expense 35 139 Other income, net (6) (41) Income tax expense 104 307 Equity income, net of tax (6) (23) Net income attributable to noncontrolling interest 11 47 Operating income 341 1,524 Restr
Slide 27: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 3Q 20181 20181 Net income attributable to Aptiv 203 1,095 Interest expense 35 139 Other income, net (6) (41) Income tax expense 104 307 Equity income, net of tax (6) (23) Net income attributable to noncontrolling interest 11 47 Operating income 341 1,524 Depre
Slide 28: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 3Q 20181 20181 Net income attributable to Aptiv 203 1,095 Restructuring 46 145 Other acquisition and portfolio project costs 19 78 Asset impairments - 1 Deferred compensation related to nuTonomy acquisition 14 57 Transaction and relat