Aptiv Plc · NYSE:APTV
Aptiv — UniCredit Automotive Credit Conference 2021
21 slides from Aptiv's conference presentation, Jun 16, 2021
Slide 1: UniCredit Automotive Credit Conference 2021
June 16, 2021 APTIV UniCredit Automotive Credit Conference 2021 Elena Rosman Vice President, Investor Relations Vicky Apostolakos Director, Investor Relations Jane Wu Vice President, Corporate Development Treasurer
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 Today
Aptiv Today 2021 FINANCIAL OUTLOOK1 LEADING PORTFOLIO ALIGNED WITH INDUSTRY MEGATRENDS… $ Billions SAFE GREEN CONNECTED A FUTURE WITH A FUTURE WITH A FUTURE WITH SEAMLESS ZERO ACCIDENTS ZERO EMISSIONS CONNECTIVITY $15.4 REVENUE …ENABLING THE FUTURE OF MOBILITY $2.4 EBITDA2 LEADING ADAS TOP HV SIGNAL
Slide 4: Proactive Portfolio Actions
Proactive Portfolio Actions SMART PORTFOLIO ENHANCEMENTS HAVE HELPED POSITION APTIV FOR SUCCESS Aug 2020 ACQUISITIONS enhancing automated ACQUISITIONS increasing our scale Dynawave driving & data management capabilities and leverage in engineered components at attractive valuations and presence in a
Slide 5: Aptiv Business Segments
Aptiv Business Segments ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED LEVERAGES OUR HERITAGE AS A GLOBAL ARCHITECTURE & COMPUTING PLATFORMS, ADVANCED SAFETY SYSTEMS AND CO
Slide 6: Safe, Green & Connected Megatrends Accelerating
Safe, Green & Connected Megatrends Accelerating NEAR DOUBLING OF ADDRESSABLE MARKET OPPORTUNITIES IN THE NEXT 5 YEARS TOTAL ADDRESSABLE MARKET ($ Billions) $170 PORTFOLIO ALIGNED TO GROWTH ADDRESSABLE MARKET Strong underlying market growth in our core businesses driven by Safe, Green and Connected m
Slide 7: Aptiv Sustainability
Aptiv Sustainability INTEGRAL TO PRODUCTS WE CREATE AND WAY WE DO BUSINESS OUR SUSTAINABILITY COMMITMENT Our products and solutions are of the highest quality, are designed, developed and manufactured responsibly, and transform society — making mobility safer, greener and more connected. PEOPLE PROD
Slide 8: Operating Sustainably
Operating Sustainably CLIMATE COMMITMENTS ALIGNED TO OUR CORE MISSION 2040 CARBON NEUTRAL 2025 COMPANY REDUCE CARBON Manufacture Carbon Neutral Products by 2039 EMISSIONS BY 25% 2030 Decrease Scope 1 & 2 CO2 Emissions CARBON NEUTRAL OPERATIONS Source 100% Renewable Energy Globally APTIV’S ROAD TO CA
Slide 9: Financial Track Record & Performance
FINANCIAL TRACK RECORD & PERFORMANCE
Slide 10: Strengthening Credit Profile Over Time
Strengthening Credit Profile Over Time PROACTIVE PORTFOLIO MANAGEMENT AND EQUITY OFFERING POSITION APTIV FOR CONTINUED GROWTH 2012 2015 2021E S&PS 43% S&PS 53% AS&UX 17% S&PS 71% PRODUCT PORTFOLIO POWERTRAIN 30% AS&UX 18% AS&UX 29% POWERTRAIN 29% THERMAL 10% GROWTH OVER MARKET1 (1)% +5% +6% Reported
Slide 11: Relentless Cost Structure Optimization
Relentless Cost Structure Optimization STRONG OPERATING LEVERAGE DRIVEN BY FLEXIBLE AND EFFICIENT COST STRUCTURE FLEXIBLE IMPROVED COST ADJUSTED EBITDA BUSINESS MODEL STRUCTURE BREAKEVEN • Flexible business model funds growth • Continued rollout of standardized processes • Relentless focus on drivin
Slide 12: Increasing Cash Flow Generation
Increasing Cash Flow Generation SUSTAINABLE BUSINESS MODEL CONVERTING MORE INCOME TO CASH STRATEGIC FRAMEWORK OPERATING CFBF & CASH ✓ Quality, not quantity, growth with the right CASH FLOW CONVERSION1 customers and platforms ($M) ($M) ✓ Leveraging industry-leading operating model to 120% drive effic
Slide 13: Capital Deployment Track Record
Capital Deployment Track Record CASH DEPLOYMENT FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD M&A TRACK RECORD PURCHASE SYNERGY CASH RETURNED MERGERS & PRICE REVENUE ACHIEVED TO SHAREHOLDERS ACQUISITIONS ~40% ~30% $1.8B $750M 1.
Slide 14: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile NO NEAR-TERM MATURITIES UNTIL 20241 AND STRONG LIQUIDITY POSITION DEBT MATURITY PROFILE OUTSTANDING DEBT 4.15% Sr Notes • ~8 years weighted average debt maturity 1.50% Euro Sr Notes $820 • 3.2% weighted average rate Term Loan A Extension Pre-payable 4.25% Sr Notes
Slide 15: 2021 Macro Overview
2021 Macro Overview GLOBAL VEHICLE PRODUCTION UP 10%1 • • • NORTH AMERICA 35% of Revenue EUROPE 34% of Revenue; EUR: 1.18 CHINA 22% of Revenue; CNY: 6.75 1Q 2021 | FY 2021 1Q 2021 | FY 2021 1Q 2021 | FY 2021 • Consumer-led recovery • Production recovery despite • Expecting production 5% | 26% • Favo
Slide 16: 2021 Guidance
2021 Guidance CONFIDENT IN FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2021 GUIDANCE FY 2020 FY 2021 COMMENTS REPORTED REVENUE $15,125 – 15,725 $13,066 • Vehicle production up 10%3 Adj. Growth %1 | Growth Over Market ~16% | ~6% (9%) | 10% • AS&UX Up 13% GoM, S&PS Up 4% GoM EBITDA2 $2
Slide 17: Summary
Summary APTIV AT THE INTERSECTION OF AUTO 2.0 TRENDS, WHILE EXECUTION DRIVES RECOVERY OUTPERFORMANCE PORTFOLIO PERFECTLY POSITIONED • Alignment to safe, green and connected megatrends provides a tailwind for above-market growth • Proactive portfolio management and equity offering position Aptiv for
Slide 18: Aptiv Overview
Aptiv Overview
Slide 19: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 917 Interest expense 154 Other expense, net 29 Income tax expense 166 Equity loss, net of tax 223 Net income attributable to noncontrolling interest 15 Operating income 1,504 Restructuring 95 Other acquisition
Slide 20: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 2015 2012 Net income attributable to Aptiv 917 1,450 1,077 Interest expense 154 127 136 Other expense (income), net 29 88 (5) Income tax expense 166 263 212 Equity loss, net of tax 223 (16) (27) Income from discontinued operations, net of tax
Slide 21: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 20211 Net income attributable to ordinary shareholders 854 Mandatory Convertible Preferred Share dividends 63 Net income attributable to Aptiv 917 Adjusting items: Restructuring 95 Other acquisition and portfolio project c