Aptiv Plc · NYSE:APTV
Aptiv — Non-Deal Roadshow (June 2020)
33 slides from Aptiv's roadshow presentation, Jun 9, 2020
Slide 1: Aptiv Overview – Equity Roadshow, June 2020
APTIV OVERVIEW Equity Roadshow, June 2020
Slide 2: Disclosure
Disclosure 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 forward-looking st
Slide 3: Today's Presenters
Today’s Presenters Kevin Clark Joe Massaro President and Chief Executive Officer Senior VP, Chief Financial Officer 3 Aptiv Equity Roadshow
Slide 4: Offering Summary
Offering Summary NEW CAPITAL TO ENHANCE FINANCIAL FLEXIBILITY AND STRENGTHEN LONG-TERM POSITION APTIV PLC Exchange / Ticker: NYSE / APTV and APTV PR A $1B COMMON STOCK INVESTMENT THESIS INTACT • Primary: 100% • Greenshoe: 15% • ROBUST BUSINESS MODEL HELPS TO NAVIGATE $1B MANDATORY CONVERTIBLE THROUG
Slide 5: We are a global technology company enabling the future of mobility
We are a global technology company that develops safer, greener and more connected solutions, which enable the future of mobility.
Slide 6: Aptiv Today
Aptiv Today 2019 FINANCIAL PERFORMANCE GLOBAL FOOTPRINT AND CAPABILITIES $Billions, except per share amount Aptiv is a global technology company, with more than 160,000 employees across 126 manufacturing facilities and 12 major technical centers worldwide. With a presence in 44 $22.1 BOOKINGS countr
Slide 7: Proactive Portfolio Actions
Proactive Portfolio Actions SMART PORTFOLIO ENHANCEMENTS HAVE POSITIONED APTIV TO THRIVE AQUISITIONS enhancing automated ACQUISITIONS increasing our scale driving & data management capabilities and leverage in engineered components at attractive valuations and presence in adjacent markets Jun 2018 N
Slide 8: Aptiv Business Segments
Aptiv Business Segments INDUSTRY LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED LEVERAGES OUR HERITAGE AS A GLOBAL ARCHITECTURE & COMPUTING PLATFORMS,
Slide 9: Rapidly Growing Addressable Markets
Rapidly Growing Addressable Markets LEVERAGING OUR STRENGTHS TO UNLOCK INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES BY 2025 TOTAL ADDRESSABLE MARKET ($ Billions) ~2.0x NEW & ADJACENT $50 MARKETS $170 $20 CV & DIVERSIFIED MARKETS ~1.5x AUTOMATED DRIVING $10 $120 $20 CONNECTED SERVICES & DATA HIGH VOL
Slide 10: Robust Business Model
Robust Business Model LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ENABLING THE FUTURE OF MOBILITY SAFE GREEN CONNECTED A FUTURE WITH ZERO ACCIDENTS A FUTURE WITH ZERO EMISSIONS A FUTURE WITH SEAMLESS CONNECTIVITY PROVIDING END-TO-END SOLUTIONS WITH A CONSISTENT MANAGEMENT PHILOSOPHY THE BRAIN AND THE
Slide 11: Strong Operating Execution
Strong Operating Execution BUILDING A MORE SUSTAINABLE MODEL OUR FLEXIBLE AND SUSTAINABLE …IMPROVING OUR ABILITY TO BUSINESS MODEL… PERFORM THROUGH-CYCLE INDUSTRY LEADING • Optimized portfolio of advanced technologies TECHNOLOGY PORTFOLIO • Leading market positions around safe, green and connected m
Slide 12: Addressing Challenging Problems
Addressing Challenging Problems VEHICLE FATALITIES COMING DOWN EMISSIONS REGULATIONS BECOMING URBANIZATION AND CONSUMER GLOBALLY, BUT PASSIVE SAFETY AT ITS INCREASINGLY STRINGENT GLOBALLY TO EXPECTATIONS DRIVING DEMAND FOR LIMIT; ADVANCED SAFETY SOLUTIONS HELP IMPROVE AIR QUALITY AND REDUCE MORE INT
Slide 13: Acceleration of Safe, Green & Connected Megatrends
Acceleration of Safe, Green & Connected Megatrends ADVANCED TECHNOLOGIES ADDRESSING 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 INJU
Slide 14: Strengthening Leadership Positions
Strengthening Leadership Positions COMPETITIVE MOAT CONTINUES TO EXPAND CAPITALIZING ON ACTIVE SAFETY ELECTRIFICATION CONNECTIVITY SAFE, GREEN Industry-leader in advanced Leader in robust high voltage connectors, fastening, and Global provider of edge processing, data analytics perception systems, c
Slide 15: Scalable Platform Solutions
Scalable Platform Solutions APTIV IS A PARTNER OF CHOICE AS OEMS LOOK FOR COST EFFECTIVE TECHNOLOGY SOLUTIONS APTIV’S OPTIMIZED SOLUTION SAVINGS TO OEM CUSTOMERS SATELLITE ARCHITECTURE 10% OEM COST SAVINGS ON LIKE-FOR-LIKE FEATURES Provides a flexible solution capable of • Additional savings from th
Slide 16: Aptiv Technology Solutions Delivered Responsibly
Aptiv Technology Solutions Delivered Responsibly SUSTAINABILITY EFFORTS FOCUSED ON PEOPLE, PRODUCT AND PLANET RECENT RECOGNITIONS Ethisphere Institute: 2020 World’s Creating exceptional value for The right people, organized and Most Ethical Companies® for the customers which generates best- incentiv
Slide 17: Financial Framework
Financial Framework STRONG FOUNDATION WITH PATH TO FURTHER VALUE CREATION 2015 2019 GROWTH MARKET OUTPERFORMANCE RECORD NEW BUSINESS WINS Growth Above Market 1; Aptiv weighted market growth OVER MARKET DRIVE CONSISTENT MARKET OUTPERFORMANCE GROWTH ABOVE MARKET 13% 11% COST STRUCTURE • $6B+ HIGH VOLT
Slide 18: Financial Framework
Financial Framework STRONG FOUNDATION WITH PATH TO FURTHER VALUE CREATION 2015 2019 EBITDA BREAKEVEN GROWTH CONSTANTLY IMPROVING COST Production volume decline vs. today’s levels OVER MARKET STRUCTURE, REDEPLOYING SAVINGS IN HIGH RETURN $14B INVESTMENTS COST STRUCTURE ~45% OPTIMIZATION • REDUCED OVE
Slide 19: Financial Framework
Financial Framework STRONG FOUNDATION WITH PATH TO FURTHER VALUE CREATION 2015 2019 GROWTH ENGINEERING INVESTMENTS REINVESTING FOR ACCELERATED OVER MARKET GROWTH AND MARGIN EXPANSION Net,, % of Total Revenue THROUGH THE CYCLE ~7% Of Sales COST STRUCTURE • Supporting record customer awards in OPTIMIZ
Slide 20: Financial Framework
Financial Framework STRONG FOUNDATION WITH PATH TO FURTHER VALUE CREATION 2015 2019 GROWTH DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD OVER MARKET M&A TRACK RECORD CASH RETURNED MERGERS & TO SHAREHOLDERS ACQUISITIONS PURCHASE ANNUAL COST STRUCTURE PRICE REVENUE SYNERGY ~40% ~30% OPTIMIZATION $1.8B $
Slide 21: Aptiv Performance Track Record
Aptiv Performance Track Record DISCIPLINED PORTFOLIO MANAGEMENT TRANSLATING INTO STRONGER FINANCIAL RETURNS 2012 2015 20191 S&PS 43% AS&UX 17% S&PS 53% S&PS 72% PRODUCT PORTFOLIO POWERTRAIN 30% AS&UX 18% AS&UX 28% THERMAL 10% POWERTRAIN 29% SYSTEMS NA 35% NA 38% NA 38% EMEA 41% EMEA 35% EMEA 33% REV
Slide 22: Financial Performance Drives Value Creation
Financial Performance Drives Value Creation ROBUST REVENUE AND EARNINGS RELATIVE TO PEERS DRIVES CONSISTENT OUTPERFORMANCE GROWTH EBITDA TSR Revenue, IHS Production Adjusted EBITDA1 2015 – 20193 Aptiv | 132 S&P 500 29% Aptiv | 142 1-Year 2 Peers 12% (2019) APTV 56% Peers2 | 115 S&P 500 44% 3-Year 2
Slide 23: 1Q 2020 vs. 1Q 2019
1Q 2020 vs. 1Q 2019 ($ millions, except per share amounts) COMMENTS 1Q 2020 Fav / (Unfav) REPORTED REVENUE ($349) • Vehicle production down (20%) $3,226 Adjusted Growth %1 | Growth Over Market (7%) | 13% • AS&UX Up 11% GoM, S&PS Up 13% GoM EBITDA2 $411 ($107) • Lower volume, partially offset by favo
Slide 24: 2020 Vehicle Production Outlook
2020 Vehicle Production Outlook RECOVERY IN PROCESS, VISIBILITY REMAINS LOW CURRENT EXPECTATIONS KEY APTIV ASSUMPTIONS: 2020 GLOBAL LVP BY QUARTER: APTIV WEIGHTED MARKET ASSUMPTIONS Q1-20 Q2-20 Q3-20 Q4-20 FY20 GLOBAL LVP (20-30%) 0% • Restart activity commenced mid/late-May in -10% Europe and North
Slide 25: Decisive Actions Taken to Enhance Financial Flexibility
Decisive Actions Taken to Enhance Financial Flexibility $600M OF TARGETED ANNUAL CASH SAVINGS; OFFENSIVE EQUITY RAISE OF $2B PRESERVES FLEXIBIITY APTIV ACTIONS COST REDUCTION • Workforce cost actions including executive pay cuts, employee furloughs/TLOs ACTIONS • Cut discretionary spending and exten
Slide 26: Summary
Summary STRATEGY FOCUSED ON PORTFOLIO OF ADVANCED TECHNOLOGIES AND OPERATING EXECUTION CREATES A MORE SUSTAINABLE BUSINESS, AND DELIVERS EXCEPTIONAL VALUE FOR SHAREHOLDERS STRATEGY of developing safer, greener and more connected platform solutions accelerating revenue growth and optimizing cost stru
Slide 27: Aptiv Overview
Aptiv Overview
Slide 28: Appendix
» APPENDIX
Slide 29: Automated Driving Non-US GAAP Financial Metrics
Automated Driving Non-US GAAP Financial Metrics ($ millions) Total Aptiv - Reported 2019 Revenue 14,357 Adjusted EBITDA 2,254 Operating Cash Flow 1,624 Less Mobility JV Revenue 1 Adjusted EBITDA (151) Operating Cash Flow (152) Total Aptiv - Pro Forma Revenue 14,356 Adjusted EBITDA 2,405 Operating Ca
Slide 30: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 2019 Net income attributable to Aptiv 1,572 240 990 Interest expense 43 38 164 Other expense (income), net 1 (16) (14) Income tax expense 10 33 132 Equity income, net of tax (2) (3) (15) Net (loss) income attributable to noncontrolling inter
Slide 31: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 1Q 2020 1Q 2019 2019 Net income attributable to Aptiv 1,572 240 990 Adjusting items: Restructuring 28 26 148 Other acquisition and portfolio project costs 14 11 71 Asset impairments - - 11 Deferred compensation related to nuTonomy
Slide 32: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 2019 2015 2012 Net income attributable to Aptiv 1,572 240 990 1,450 1,077 Interest expense 43 38 164 127 136 Other expense (income), net 1 (16) (14) 88 (5) Income tax expense 10 33 132 263 212 Equity income, net of tax (2) (3) (15) (16) (27)
Slide 33: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics 1Q 2020 Reported net sales % change (10%) Less: foreign currency exchange and commodities (2%) Less: divestitures and other, net (1%) Adjusted revenue growth (7%) 33 Aptiv Equity Roadshow