Aptiv Plc · NYSE:APTV
Aptiv — Q2 2021 Earnings Presentation
30 slides from Aptiv's earnings presentation, Aug 5, 2021
Slide 1: Second Quarter 2021 Earnings Call
August 5, 2021 APTIV Second Quarter 2021 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
Second Quarter Highlights RECORD REVENUE GROWTH AND STRONG PERFORMANCE DESPITE CHALLENGING ENVIRONMENT REVENUE 68% VEHICLE PRODUCTION $3.8B $7.8B GROWTH LAPPING PRIOR 2Q up 85% YTD up 44% +17% GoM YEAR NA / EU SHUTDOWNS EBITDA RECORD 2Q GROWTH ABOVE ONGOING CHALLENGES RELATED $498M $1.1B MARKET DRIV
Slide 4: 2021 Updated Outlook
2021 Updated Outlook DELIVERING FOR CUSTOMERS WHILE MITIGATING INDUSTRY HEADWINDS SUPPORTING CUSTOMER SCHEDULES WITH RECORD LAUNCH ACTIVITY FLEXIBLE AND OEM PRODUCTION OUTLOOK REMAINS STRONG; GLOBAL VEHICLE PRODUCTION UP ~10% SUSTAINABLE BUSINESS MODEL PRODUCT LINE TRENDS DRIVE STRONGER GROWTH OVER
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio RECORD FIRST HALF NEW CUSTOMER AWARDS BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS $8.1 $7.5 ENCOMPASSES OUR DEEP EXPERTISE LEVERAGES OUR HERITAGE AS A IN CENTRALIZED COMPUTING GLOBAL ARCHITECTURE AND PLA
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE SW-DEFINED VEHICLE 2Q 2021 HIGHLIGHTS GREAT WALL MOTORS CENTRAL VEHICLE • Growth Over Market: 15% CONTROLLER (CVC) • Active Safety launches and ramp-ups drive record GOM in NA • 1st Central Vehicle Con
Slide 7: Software in the Vehicle
Software in the Vehicle LEVERAGING CAPABILITIES ACROSS THE FULL SOFTWARE STACK AUTOMOTIVE SOFTWARE APTIV EXAMPLES WITH CUSTOMERS TODAY MARKET ACCELERATING Total Auto Software Market1 Providing best-in-class radar, camera and scalable ADAS platform running perception SW with fused 360° sensing and up
Slide 8: Signal & Power Solutions
Signal & Power Solutions EXPANDING LEADERSHIP POSITION IN LOW AND HIGH VOLTAGE ARCHITECTURE SOLUTIONS 2Q 2021 HIGHLIGHTS • Growth Over Market: 18% • Favorable platform mix and content gains in all regions • Robust CV and industrial market outgrowth SALES GROWTH DRIVERS1 2Q 2021 FY 2021E LOW VOLTAGE
Slide 9: High Voltage Electrification
High Voltage Electrification APTIV BENEFITTING FROM ACCELERATED ELECTRIFICATION TRENDS BOOKINGS REVENUE FULL SYSTEM-LEVEL CAPABILITIES Lifetime gross program revenues, $ Billions, Adj Growth CAGR1 THAT ENABLE A MORE EFFICIENT PATH TO $ Billions VEHICLE ELECTRIFICATION WITH: 40%+ TARGET TECHNOLOGY $2
Slide 10: Sustainability
Sustainability APTIV’S SUSTAINABILITY COMMITMENTS DELIVERING ON OUR MISSION OUR FRAMEWORK STRATEGIC COMMITMENTS PEOPLE • Attract and retain the best talent Foster healthy, inclusive • Advance a culture of diversity and inclusion workplaces and communities • Be a leader in employee health and safety
Slide 11: 2Q 2021 vs. 2Q 2020
2Q 2021 vs. 2Q 2020 ($ Millions, except per share amounts) 2Q 2021 2Q 2020 2Q 2021 COMMENTS REPORTED REVENUE $3,807 $1,960 • Vehicle production up 68%4 Adjusted Growth %1 | Growth Over Market 85% | 17% (43%) | 11% • AS&UX 15% GoM, S&PS 18% GoM EBITDA2 $498 ($49) • COVID & supply chain disruption cos
Slide 12: 2Q 2021 Revenue
2Q 2021 Revenue ROBUST GROWTH OVER MARKET IN ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted Growth1 | Growth Over Market (GoM) 85% Adj 1 17% GoM N. AMERICA EUROPE CHINA2 $178 ($38) 154% Adj 123% Adj 2% Adj $1,707 24% GoM 37% GoM 9% GoM $3,807 $1,960 2Q 2020 Volume FX / Comm Price 2Q 2021 1.
Slide 13: 2Q 2021 Segment Recap
2Q 2021 Segment Recap OUTGROWTH DRIVEN BY CONTENT AND PENETRATION GAINS; HIGHER INPUT COSTS WEIGH ON MARGINS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 OP INCOME2 REVENUE EBITDA2 OP INCOME2 86%1 +109x 83%1 +2.5x +1.3x +2.9x $277 $2,846 $430 $970
Slide 14: 2021 Macro Overview
2021 Macro Overview MAINTAINING GLOBAL VEHICLE PRODUCTION OUTLOOK OF UP 10% GLOBAL NORTH AMERICA EUROPE CHINA 35% of Revenue2 34% of Revenue2 22% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1H21 44% 29% 1H21 46% 32% 1H21
Slide 15: 2021 Guidance
2021 Guidance CONFIDENT IN UPDATED FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2021 FY 2020 FY 2021 COMMENTS REPORTED REVENUE $16,115 – 16,415 $13,066 • Vehicle production up 10%4 Adj. Growth %1 | Growth Over Market ~20% | ~10% (9%) | 10% • AS&UX 11% GoM, S&PS 9% GoM EBITDA2 $2,380 –
Slide 16: 2021 Outlook Business Drivers
2021 Outlook Business Drivers OUTLOOK REFLECTS STRONGER GROWTH OVER MARKET, PARTIALLY OFFSET BY HIGHER INPUT COSTS REVENUE1 EBITDA2 $ Millions $ Millions, % of Sales ~10% GoM ($70) $385 $200 $455 ($125) ~6% GoM $15 14.9% 15.6% $16,265 $15,425 $2,400 $2,420 Initial Guide GOM, FX & Current Guide Initi
Slide 17: New Sustainability-Linked Credit Facility
New Sustainability-Linked Credit Facility APTIV LEADS INDUSTRY WITH NEW CREDIT FACILITY; PRICING STRUCTURE TIED TO KEY ESG METRICS CREDIT UPDATE CREDIT FACILITY TERMS SUSTAINABILITY-LINKED KPIs MIRROR APTIV’S 2025 COMMITMENTS CREDIT RATING FACILITIES • Solid investment grade credit rating • $2,000M
Slide 18: Strong Cash Generation
Strong Cash Generation FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES STRONG CASH GENERATION DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD Operating Cash Flow, $ Billions CASH RETURNED MERGERS & VALUE ENHANCING TO SHAREHOLDERS ACQUISITIONS INVESTMENT OPPORTUNITIES 100%+ ~40%
Slide 19: Summary
Summary EXECUTION IN DIFFICULT ENVIRONMENT DRIVING RECOVERY OUTPERFORMANCE INDUSTRY-LEADING, RELEVANT PORTFOLIO OF SAFE, GREEN AND CONNECTED TECHNOLOGIES Investment to support customers resulting in stronger win rates, record bookings, and market outperformance ADVANCING OUR VISION OF 2025 AND BEYON
Slide 20: Appendix
» APPENDIX
Slide 21: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2Q 2021 YTD 2021 Reported net sales % change 94% 51% Less: foreign currency exchange and commodities 9% 7% Less: divestitures and other, net -% -% Adjusted revenue growth 85% 44% Reflective of management estimates due to integration of businesses 2Q 2021 YTD 2021 Reported
Slide 22: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 2Q 2021 YTD 2021 ($ millions) Revenue OI Adj Revenue OI Adj 2Q 2020: Signal And Power Solutions 1,435 (143) 3,765 82 Volume, net of contractual price reductions 1,236 462 1,780 663 FX and commodities 175 (52) 323 (66) Operational performance - 47 - 69 Other -
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2021 2Q 2020 YTD 2021 YTD 2020 Net income (loss) attributable to Aptiv 163 (366) 458 1,206 Interest expense 38 44 78 87 Other expense (income), net - 6 (1) 7 Income tax expense (benefit) 28 (14) 76 (4) Equity loss, net of tax 53 18 95 16 Net income (loss
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2021 2Q 2020 YTD 2021 YTD 2020 Net income (loss) attributable to Aptiv 163 (366) 458 1,206 Interest expense 38 44 78 87 Income tax expense (benefit) 28 (14) 76 (4) Net income (loss) attributable to noncontrolling interest 3 1 8 (4) Depreciation and amort
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 2Q 2021 2Q 2020 YTD 2021 YTD 2020 Net income (loss) attributable to ordinary shareholders 147 (369) 426 1,203 Mandatory convertible preferred share dividends 16 3 32 3 Net income (loss) attributable to Aptiv 163 (366) 458 1,206 Adj
Slide 26: Shares Outstanding
Shares Outstanding (millions) 2Q 2021 2Q 2020 YTD 2021 YTD 2020 Weighted average ordinary shares outstanding, basic 270.49 258.03 270.40 256.77 Dilutive shares related to RSUs 0.57 0.18 0.70 0.25 Weighted average MCPS Converted Shares - - - 1.57 Weighted average ordinary shares outstanding, includin
Slide 27: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 995 Interest expense 149 Other expense, net 3 Income tax expense 176 Equity loss, net of tax 211 Net income attributable to noncontrolling interest 15 Operating income 1,549 Restructuring 68 Other acquisition
Slide 28: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 995 Interest expense 149 Income tax expense 176 Net income attributable to noncontrolling interest 15 Depreciation and amortization 790 EBITDA 2,125 Other expense, net 3 Equity loss, net of tax 211 Restructuri
Slide 29: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 20211 Net income attributable to ordinary shareholders 932 Mandatory convertible preferred share dividends 63 Net income attributable to Aptiv 995 Adjusting items: Restructuring 68 Other acquisition and portfolio project c
Slide 30: “APTIV:
“APTIV: