Aptiv Plc · NYSE:APTV
Aptiv — Q1 2023 Earnings Presentation
26 slides from Aptiv's earnings presentation, May 4, 2023
Slide 1: First Quarter 2023 Earnings Call
May 4, 2023 APTIV First Quarter 2023 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 SOLID 1Q PERFORMANCE; ON TRACK WITH OUR FINANCIAL OUTLOOK REVENUE $4.8B RECORD REVENUE IN 1Q WITH +6% GoM DRIVEN BY 1Q up 15% OUTGROWTH ACROSS ALL REGIONS AND STRENGTH IN AS&UX EBITDA $594M +130 BPS YOY IN 1Q OI MARGIN WITH FLOW-THROUGH 1Q Margins of 12.3% ON HIGHER VOLUMES
Slide 4: Executing on Our Strategy
Executing on Our Strategy OPTIMIZING GLOBAL EXECUTION CAPABILITIES TO DELIVER VALUE TO OUR CUSTOMERS MACRO OPERATIONAL SUPPLY CHAIN ENVIRONMENT EXCELLENCE RESILIENCY 9 + % 1Q GLOBAL VEHICLE PRODUCTION SUPPORTED BY STRONG NA AND EUROPE STRONG CUSTOMER ENGAGEMENTS TRANSLATING TO COMMERCIAL SUCCESS ~ 8
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS DRIVEN BY PORTFOLIO OF ADVANCED TECHNOLOGIES BOOKINGS Lifetime gross program revenues, $ Billions THE ONLY FULL SYSTEM SOLUTIONS PROVIDER LEVERAGING BRAIN & NERVOUS SYSTEM CAPABILITIES FY 2022 FY 2023E ~$32B 0.8B ~$32B FY 2021 ACTIVE SAFETY $ ~$24B 1Q
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience APTIV AT THE POINT OF CONTENT AGGREGATION FOR HARDWARE AND SOFTWARE 1Q 2023 HIGHLIGHTS GROWTH DRIVERS CONTINUED TRACTION IN A&D AND TELECOM • Growth Over Market: 9% Service expansion with key A&D customers and significant deployment of 5G cloud-native services with
Slide 7: Signal & Power Solutions
Signal & Power Solutions GLOBAL LEADER IN OPTIMIZED, NEXT-GEN ARCHITECTURE SOLUTIONS 1Q 2023 HIGHLIGHTS GROWTH DRIVERS • Growth Over Market: 5% STRONG NEW BUSINESS AWARDS ~$0.5B of bookings in 1Q, reflecting multiple awards with • Strong High Voltage electrification growth across all regions German
Slide 8: Continued Commercialization of SVA™
Continued Commercialization of SVA™ ENABLING THE FULL POTENTIAL OF THE SOFTWARE-DEFINED VEHICLE SMART VEHICLE ARCHITECTURE™ “Hardware-Defined” “Software-Defined” SERVERIZATION Architecture DOMAIN ZONE (FULL SVA™) Orientation ONGOING 2022-2025 2025+ 20+ 5 13 Domain Zone Advanced Controller Controller
Slide 9: Uniquely Positioned to Create Long-Term Value
Uniquely Positioned to Create Long-Term Value ON TRACK TO DELIVER ON OUR INVESTOR DAY TARGETS MEGATRENDS ACCELERATING ADVANCED SAFETY & SIGNAL & POWER Consumer expectations and regulatory requirements continue USER EXPERIENCE SOLUTIONS to accelerate safe, green and connected megatrends RIGHT STRATEG
Slide 10: 1Q 2023 vs. 1Q 2022
1Q 2023 vs. 1Q 2022 ($ Millions, except per share amounts) 1Q 2023 Fav / (Unfav) COMMENTS REPORTED REVENUE $640 • Active Safety and High Voltage launches in EU and China $4,818 Adjusted Growth %1 | Growth Over Market 15% | 6% • NA impacted by program timing and supply chain constraints EBITDA2 $594
Slide 11: 1Q 2023 Revenue
1Q 2023 Revenue GROWTH ACROSS ALL REGIONS DESPITE MARKET WEAKNESS IN CHINA REVENUE REGIONAL GROWTH $ Millions 15% Adj 1 Adjusted Growth1 | Growth Over Market (GoM) 6% GoM Wind River / Intercable Automotive N. AMERICA EUROPE CHINA2 $178 $74 ($128) $516 14% Adj 24% Adj 2% Adj 4% GoM 7% GoM 10% GoM $4,
Slide 12: 1Q 2023 Segment Recap
1Q 2023 Segment Recap DOUBLE DIGIT GROWTH IN BOTH SEGMENTS; STRONG OPERATIONAL PERFORMANCE DESPITE FX HEADWINDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE OP INCOME2 REVENUE OP INCOME2 18%1 14%1 21% ~4x $1,366 $3,464 $3,106 $374 $1,082 $63 $308 $16 1Q 22
Slide 13: 2023 Macro Overview
2023 Macro Overview NO CHANGE TO FULL YEAR MACRO OUTLOOK GLOBAL NORTH AMERICA EUROPE CHINA 37% of Revenue2 31% of Revenue2 22% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1Q23 15% 9% 1Q23 14% 10% 1Q23 24% 17% 1Q23 2% (8%
Slide 14: 2023 Guidance
2023 Guidance NO CHANGE IN FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2023 Fav / (Unfav) FY 2023 COMMENTS REPORTED REVENUE $1,511 • Vehicle production (1%)4 $18,700 – 19,300 Adj. Growth %1 | Growth Over Market ~8% | ~9% • FY GoM: AS&UX ~12%, S&PS ~8% EBITDA2 $2,585 – 2,745 $475 • Fl
Slide 15: Strength in Fast Growing Product Lines
Strength in Fast Growing Product Lines MEANINGFUL CONTRIBUTIONS FROM WIND RIVER AND INTERCABLE AUTOMOTIVE ACTIVE HIGH VOLTAGE SMART VEHICLE SAFETY ELECTRIFICATION COMPUTE & SOFTWARE Revenue, $ Billions Revenue, $ Billions Revenue, $ Billions ~30% ~30% Adj. Growth Adj. Growth1 ~$2.0 INTERCABLE ~$1.4
Slide 16: Summary
Summary CONTINUED EXECUTION DRIVING SUSTAINABLE VALUE CREATION SOLID 1Q IN-LINE WITH EXPECTATIONS • Record revenue and strong margin improvement • Operational excellence remains key priority with footprint optimization and best-in-class supply chain BOOKINGS AND COMMERCIAL MOMENTUM • Record quarterl
Slide 17: Appendix
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Slide 18: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 1Q 2023 Reported net sales % change 15% Less: foreign currency exchange and commodities (4%) Less: acquisitions 4% Adjusted revenue growth 15% 1Q 2023 Reported Revenue Growth 15% Signal And Power Solutions Reported Revenue Growth 12% Advanced Safety And User Experience Rep
Slide 19: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 1Q 2023 1Q 2022 Net income attributable to Aptiv 162 89 Interest expense 67 43 Other expense, net 1 39 Income tax expense 34 21 Equity loss, net of tax 82 63 Net income attributable to noncontrolling interest 3 1 Net loss attributable to redeem
Slide 20: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 1Q 2023 1Q 2022 Net income attributable to Aptiv 162 89 Interest expense 67 43 Income tax expense 34 21 Net income attributable to noncontrolling interest 3 1 Net loss attributable to redeemable noncontrolling interest (1) - Depreciation an
Slide 21: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 1Q 2023 1Q 2022 Net income attributable to ordinary shareholders 146 73 Mandatory convertible preferred share dividends 16 16 Net income attributable to Aptiv 162 89 Adjusting items: Amortization 59 37 Restructur
Slide 22: Shares Outstanding
Shares Outstanding (millions) 1Q 2023 1Q 2022 Weighted average ordinary shares outstanding, basic 271.01 270.79 Dilutive shares related to RSUs 0.16 0.37 Weighted average ordinary shares outstanding, including dilutive shares 271.17 271.16 Weighted average MCPS Converted Shares (a) 12.37 12.37 Adjus
Slide 23: Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income
Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income ($ millions) 20231 Net income attributable to Aptiv 830 Interest expense 235 Other income, net (15) Income tax expense 195 Equity loss, net of tax 300 Net income attributable to noncontrolling interest (a) 15 Operating income 1,560 Am
Slide 24: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20231 Net income attributable to Aptiv 830 Interest expense 235 Income tax expense 195 Net income attributable to noncontrolling interest (a) 15 Depreciation and amortization 895 EBITDA 2,170 Other income, net (15) Equity loss, net
Slide 25: Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share
Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share ($ millions, except per share amounts) 20231 Net income attributable to ordinary shareholders 800 Mandatory convertible preferred share dividends 30 Net income attributable to Aptiv 830 Adjusting items: Amortization 230 Restructuring 110
Slide 26: “APTIV:
“APTIV: