Aptiv Plc · NYSE:APTV
Aptiv — J.P. Morgan Aviation, Transportation & Industrials Conference 2018
18 slides from Aptiv's conference presentation, Mar 15, 2018
Slide 1: J.P. Morgan Industrials Conference
March 15, 2018 Kevin Clark President and Chief Executive Officer APTIV J.P. Morgan Industrials Conference
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: 2017 Full Year Highlights
Nt FINISH TOZ f = NEW RECORD ~ eee Yi KOR BOOKINGS OF ane a jl $19:3-BILLION » REVENUE ($B) — A 7 $12.9 es ; COMPLETED POWERTRAIN SPIN-OFF AHEAD. OF SCHEDULE | FY Up 4.8% = | | if if ‘aie _ \ a OPERATING INCOME ($B) | : \\ NS EARNINGS P' ~~ $4.64 ($ZZz” Li \ LITY THROUGH AMD. FY Up 10.5% a Note: Rev
Slide 4: Increasing Need For Software & Systems Integration
Increasing Need For Software & Systems Integration NEW VEHICLE FEATURES, FUNCTIONALITY AND VALUE INCREASINGLY DEFINED BY SOFTWARE NEW MOBILITY SOLUTIONS BRAIN SAFE NERVOUS SYSTEM GREEN CONNECTED SERVICES CONNECTED ADVANCED ADVANCED ARCHITECTURES SOFTWARE 4 J.P. Morgan Industrials | March, 15 2018 |
Slide 5: Addressing Mobility's Toughest Challenges
Addressing Mobility's Toughest Challenges PROVIDING END-TO-END SOLUTIONS THAT ENABLE THE COMMERCIALIZATION OF NEW MOBILITY SMART VEHICLE ARCHITECTURE SMART_MOBILITY SOLUTIONS ACTIVE SAFETY SOFTWARE SENSING AND COMPUTING USER EXPERIENCE -APTIV: — CONNECTED SERVICES SIGNAL AND POWER DISTRIBUTION AUTON
Slide 6: Segment Overview
Segment Overview RELEVANT PORTFOLIO, WELL POSITIONED FOR CONSISTENT ABOVE MARKET GROWTH 1. GoM: Growth over Market as defined by Aptiv weighted production. Long term targets as of September 27, 2017 6 J.P. Morgan Industrials | March, 15 2018 | Aptiv
Slide 7: Winning Across the Portfolio
Winning Across the Portfolio KEY CUSTOMER AWARDS IN EACH BUSINESS REINFORCE GROWTH OUTLOOK Lifetime gross program revenues CUMULATIVE SINCE 2011 ($ Billions) $18.9 $19.3 ACTIVE $17.6 SAFETY $16.4 ADVANCED $14.3 $15.2 $4.7 $5.2 $6.2 $9 $5.2 SAFETY AND USER $4.5 $11.2 $4.0 INFOTAINMENT & EXPERIENCE1 U
Slide 8: Key Growth Businesses Gaining Scale
Key Growth Businesses Gaining Scale KEY GROWTH BUSINESSES GAIN SCALE, DRIVE MARGIN EXPANSION 8 J.P. Morgan Industrials | March, 15 2018 | Aptiv
Slide 9: New Addressable Markets
New Addressable Markets LEVERAGING OUR STRENGTHS TO UNLOCK MORE THAN $35 BILLION IN INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES BY 2025 Total Addressable Market ($ Billions) 3x AUTOMATED DRIVING $50+ • Active safety leading to autonomous driving; robust OEM level 3 solutions by 2025 • 2020 – 2025:
Slide 10: Global Mobility & Services Capabilities
Global Mobility & Services Capabilities UNMATCHED POSITION IN MOBILITY & SERVICES WITH DEEP CAPABILITIES IN SOFTWARE DEVELOPMENT, AUTOMOTIVE GRADE INDUSTRIALIZATION AND SYSTEMS INTEGRATION = = cima 1Ds'IN 9250+ ENGINEERS | CARS TO 10M CONTROLLERS APPLICABL : VOTEDTO \ THE HEMBEDDED OTA T MATED DRIVI
Slide 11: Investments Funded by Operating Performance
Investments Funded by Operating Performance RELENTLESSLY FOCUSED ON COST STRUCTURE; FUNDING NEW MOBILITY INVESTMENTS WITHIN FRAMEWORK OF LONG TERM TARGETS 2020+ 2018 • Key growth tech reaches scale OPERATING INCOME 14.0%-14.5% • Stranded costs eliminated $ Millions • Productivity initiatives • Funct
Slide 12: Capital Allocation Priorities
Capital Allocation Priorities FOCUSED ON VALUE ENHANCING CAPITAL DEPLOYMENT OPPORTUNITI “Tr. LT M&A AND SHARE REPURCHASES 5%-55% DIVIDENDS 10%15% = » Maintain investment grade-ratings + Organic re-investment to drive apn and increase returns 1! gest Saior oe Bolt op eseduer ec auarand technology ena
Slide 13: Summary
Summary STRONG AND GROWING GLOBAL BUSINESS GROWING ADVANCED CAPABILITIES * Core competencies positioning Aptiv to enable future mobility solutions + Expanding resources and footprint in global technology hubs to capitalize on opportunities EXECUTION + Increasing speed and scale - key growth business
Slide 14: Appendix
“APTIV:
Slide 15: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2017 Net income attributable to Aptiv $1,355 Interest expense 140 Other (income) expense, net 21 Income tax expense 223 Equity income, net of tax (31) Income from discontinued operations, net of tax (365) Net income attributable to noncontrolli
Slide 16: Non-US GAAP Financial Metrics: Adjusted EPS
Non-US GAAP Financial Metrics: Adjusted EPS ($ millions, except per share amounts) 2017 Net income attributable to Aptiv $1,355 Income from discontinued operations attributable to Aptiv, net of tax (334) Income from continuing operations attributable to Aptiv $1,021 Adjusting items: Restructuring 12
Slide 17: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 20181 Net income attributable to Aptiv $1,088 Interest expense 140 Other (income) expense, net (30) Income tax expense 244 Equity income, net of tax (30) Net income attributable to noncontrolling interest 40 Operating income $1,452 Restructuring 152 Other acqu
Slide 18: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 20181 Net income attributable to Aptiv $1,088 Restructuring 152 Other acquisition and portfolio project costs 64 Deferred compensation related to nuTonomy acquisition 57 Tax impact of adjusting items and other (a) 1 Adjusted net incom
Aptiv — J.P. Morgan Aviation, Transportation & Industrials Conference 2018 on 6ix