Slide 1: First Quarter 2019 Earnings Call
May 2, 2019 APTIV First Quarter 2019 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: First Quarter Highlights
First Quarter Highlights SUSTAINED STRONG GROWTHABOVE MARKET AND INVESTMENTS TO SUPPORT NEW BUSINESS OPPORTUNITIES REVENUE $3.6B a 1Q up 4% a ~ EBITDA = $518M ‘renee ee <7 1Q Margins of 14.5% & array OM cet = OPERATING INCOME 3 <i $345M 1Q Margins of 9.7% Be oe Se EARNINGS PER SHARE $1.05 1Q down (1
Slide 4: Strong First Quarter
STRONG FIRST QUARTER ee Higher outgrowth in weaker markets See = - as __ MARKET DETERIORATION ~~ Lower vehicle production and program delays in Europe & China _ Bem © BALANCED COST ACTIONS — ° 0? Sustaining a flexible bigness model while funding Se Te See FOREIGN EXCHANGE / COMMODITIES Lowering Euro
Slide 5: Aptiv's Business Model
a APTIV'S F BUSINESS MODEL... OVERHEAD REDUCTION Se ee Back office consolidation and incremental cost ea oe — G MFG & SUPPLY CHAIN OPTIMIZATION Foor lore) and mitigation actions Z Oo ©. COST STRUCTURE SUSTAINABILITY - (ox ) Flexible and scalable cost structure _ 5 1Q 2019 Earnings | May 2, 2019 | Ap
Slide 6: Winning Across the Portfolio
Winning Across the Portfolio 2019 YTD BOOKINGS ON TRACK TO EXCEED PRIOR YEAR RECORD BOOKINGS Lifetime gross program revenues, $ Billions $7.0 $6.5 $6.1 ADVANCED SAFETY & USER $5.1 $5.1 EXPERIENCE $4.4 $4.3 $3.8 $3.4 SIGNAL & POWER SOLUTIONS 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 1. Cumulative
Slide 7: Advanced Safety & User Experience
Advanced Safety & User Experience DELIVERING 12% GROWTH OVER MARKET; APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE NEXT GENERATION FEATURES AND FUNCTIONALITY 1Q 2019 HIGHLIGHTS • Continued Growth Over Market: Up 12% YoY, including China Up 18% • Strong Active Safety win r
Slide 8: Commercializing Advanced Safety Solutions
Commercializing Advanced Safety Solutions SEEDING THE NEXT WAVE OF GROWTH; INVESTMENTS IN SCALABLE ACTIVE SAFETY AND AUTOMATED DRIVING TECHNOLOGIES HELPING TO DEMOCRATIZE NEW MOBILITY SOLUTIONS 8 1Q 2019 Earnings | May 2, 2019 | Aptiv
Slide 9: Signal & Power Solutions
Signal & Power Solutions GROWTH OVER MARKET OF 7% DRIVEN BY HIGH VOLTAGE ELECTRIFICATION AND NEW PROGRAM LAUNCHES 1Q 2019 HIGHLIGHTS • Ramp up of new launches and acquisition contributions accelerate growth • Strong cable management and fastening solutions growth driven by industrial end markets • C
Slide 10: Aptiv 2019 Investor Day
Aptiv 2019 Investor Day BUILDING A MORE SUSTAINABLE BUSINESS RELENTLESSLY FOCUSED ON EXECUTION Flexible business model and culture of continuous improvement delivering PORTFOLIO PERFECTLY POSITIONED outperformance in any environment, while improving the growth engine Uniquely positioned as a full st
Slide 11: 1Q 2019 Revenue Growth
1Q 2019 Revenue Growth GROWTH OVER MARKET IN ALL MAJOR REGIONS DESPITE WEAKER CHINA PRODUCTION REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 4% Adj 1 9% GoM N. AMERICA EUROPE CHINA $156 ($48) ($163) +$125M 7% Adj 6% Adj (12%) Adj Vs. Midpoint of Guidance 9% GoM 11% GoM 3% G
Slide 12: 1Q 2019 Earnings
1Q 2019 Earnings EBITDA, OPERATING INCOME AND EPS ALL AHEAD OF EXPECTATIONS EBITDA1 OPERATING INCOME1 EPS1 $ Millions, % of Sales $ Millions, % of Sales Earnings per share $ • +$8M versus midpoint of guidance • +$10M versus midpoint of guidance • +$0.05 versus midpoint of guidance • Lower China volu
Slide 13: Advanced Safety & User Experience
Advanced Safety & User Experience CONSISTENT DOUBLE DIGIT GROWTH OVER MARKET AND CONTINUED INVESTMENTS TO SUPPORT FUTURE GROWTH REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • 12% Growth Over Market • EBITDA Margins 14.2% ex Mobility • Op Margins 10.7% ex
Slide 14: Signal & Power Solutions
Signal & Power Solutions STRONG GROWTH OVER MARKET DRIVEN BY NEW LAUNCHES REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • 7% Growth Over Market • Down (12%), or (7%) excluding FX/Comm and Tariffs • Down (19%), or (14%) excluding FX/Comm and Tariffs • High
Slide 15: 2019 Macro Overview
2019 Macro Overview DETERIORATING MACROS; GLOBAL VEHICLE PRODUCTION NOW EXPECTED DOWN (3.5%) GLOBAL NORTH AMERICA EUROPE CHINA 39% of Revenue2 32% of Revenue2 19% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1Q19 4% (5%)
Slide 16: 2019 Guidance
2019 Guidance PRUDENT OUTLOOK GIVEN MACRO HEADWINDS $ millions, except per share amounts 2Q 20193 FY 20193 COMMENTS REPORTED REVENUE $3,600 – 3,700 $14,425 – 14,825 • 2Q: AS&UX up Mid SD, S&PS up Mid SD Adj Growth %1 | Growth Over Market ~5% | ~9% ~6% | ~9% • FY: AS&UX up ~10%, S&PS up Mid SD Pre Ta
Slide 17: 2019 Guidance Walk
2019 Guidance Walk DE-RISKING FULL YEAR OUTLOOK FOR WEAKER MACROS REVENUE1 OPERATING INCOME2 $ Millions, Growth Over Market % $ Millions, % of Sales $15 ~6% FX ($20) Adj Growth1 $145 ($170) 11.8-12.0% - bps COMM ($40) ~6% (30 bps) ($55) $10 ($150) Adj Growth1 Commodities 11.3-11.5% mostly driven (30
Slide 18: Capital Structure And Deployment
Capital Structure And Deployment REFINANCED LONG TERM DEBT WHILE OFFSETTING EPS IMPACT THROUGH SHARE BUYBACK LONG TENURE DEBT PROVIDES SIGNIFICANT FLEXIBILITY BALANCED CAPITAL DEPLOYMENT Refinanced $650M into 10 | 30 Year Debt - improving flexibility and tenor - while Repurchasing $450M shares in 20
Slide 19: Summary
Summary PORTFOLIO DRIVING SUSTAINED ABOVE MARKET GROWTH • 9% growth over market from leading technologies in AS&UX and S&PS • Continued momentum in Active Safety and High Voltage Electrification growth BALANCED 2019 OUTLOOK • Strong growth over market continues despite slower vehicle production • Ba
Slide 20: Appendix
“APTIV:
Slide 21: 1Q 2019 vs. 1Q 2018
1Q 2019 vs. 1Q 2018 ($ millions, except per share amounts) COMMENTS 1Q 2019 Fav / (Unfav) REPORTED REVENUE ($55) • Vehicle production down (4.5%) $3,575 • AS&UX 12% GoM, S&PS 7% GoM Adjusted Growth %1 | Growth Over Market 4% | 9% EBITDA2 $518 (11%) • Down (6%) ex FX/Commodities and Tariffs EBITDA Ma
Slide 22: YoY Growth Metrics
YoY Growth Metrics Reflective of management estimates due to integration of businesses 1Q 2018 2Q 2018 3Q 2018 4Q 2018 FY 2018 1Q 2019 Reported Revenue Growth 15% 17% 11% 6% 12% -1% Signal & Power Solutions 12% 13% 9% 4% 9% -2% Advanced Safety & User Experience 26% 27% 13% 9% 18% -1% Adjusted Revenu
Slide 23: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks ($ millions) Revenue OI Adj 1Q 2018: Signal & Power Solutions 2,617 351 Volume, net of price reductions 71 (59) FX and commodities (126) (14) Operational performance - 4 Other - 1 1Q 2019: Signal & Power Solutions 2,562 283 1Q 2018: Advanced Safety & User Exp
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2019 1Q 2018 Net income attributable to Aptiv 240 307 Interest expense 38 34 Other income, net (16) (30) Income tax expense 33 59 Equity income, net of tax (3) (5) Net income attributable to noncontrolling interest 5 9 Operating income 297 374 Restructur
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2019 1Q 2018 Net income attributable to Aptiv 240 307 Interest expense 38 34 Other income, net (16) (30) Income tax expense 33 59 Equity income, net of tax (3) (5) Net income attributable to noncontrolling interest 5 9 Operating income 297 374 Depreciati
Slide 26: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 1Q 2019 1Q 2018 Net income attributable to Aptiv 240 307 Adjusting items: Restructuring 26 20 Other acquisition and portfolio project costs 11 19 Deferred compensation related to nuTonomy acquisition 11 14 Debt extinguishment costs
Slide 27: Shares Outstanding
Shares Outstanding (millions) 1Q 2019 1Q 2018 Weighted average ordinary shares outstanding, basic 259.08 265.69 Dilutive shares related to RSUs 0.47 0.75 Weighted average ordinary shares outstanding, including dilutive shares 259.55 266.44 27 1Q 2019 Earnings | May 2, 2019 | Aptiv
Slide 28: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 2Q 20191 20191 Net income attributable to Aptiv 237 1,128 Interest expense 39 156 Other income, net (8) (32) Income tax expense 50 195 Equity income, net of tax (4) (21) Net income attributable to noncontrolling interest 9 40 Operating income 323 1,466 Restruc
Slide 29: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 2Q 20191 20191 Net income attributable to Aptiv 237 1,128 Interest expense 39 156 Other income, net (8) (32) Income tax expense 50 195 Equity income, net of tax (4) (21) Net income attributable to noncontrolling interest 9 40 Operating income 323 1,466 Depreci
Slide 30: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 2Q 20191 20191 Net income attributable to Aptiv 237 1,128 Restructuring 40 126 Other acquisition and portfolio project costs 10 35 Deferred compensation related to nuTonomy acquisition 12 43 Debt extinguishment costs - 6 Gain on chang