Aptiv Plc · NYSE:APTV
Aptiv — Investor Day (June 2018)
54 slides from Aptiv's investor day presentation, Jun 26, 2018
Slide 1: Active Safety Teach In
June 26, 2018 ACTIVE SAFETY Teach In
Slide 2: Elena Rosman
Elena Rosman VICE PRESIDENT, INVESTOR RELATIONS, APTIV 2 Active Safety Teach In | June 26, 2018 | Aptiv
Slide 3: Active Safety Teach In Agenda
Active Safety Teach In Agenda MACRO ENVIRONMENT: APTIV MARKET OUTLOOK Xavier Mosquet | BCG REGULATORY INSIGHTS David Strickland | Venable APTIV ACTIVE SAFETY Glen De Vos | Senior VP & CTO Q8A, INTERACTION Q&A Round Table Glen De Vos | Senior VP & CTO Xavier Mosquet | BCG David Strickland | Venable I
Slide 4: 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 5: awa
awa wi =o = =". SPENT YEARS : PORTFOLIO STRATEGY KEY TO UNDERSTAND HC - KINGS AND MARY oS (PAT THE FOREFRONT MARK! Mm : "OF DEMOCRATIZATION
Slide 6: Passive Safety Reaching Its Limits
Passive Safety Reaching Its Limits AUTOMOTIVE INDUSTRY SUCCESSFUL IN CONSTANTLY REDUCING VEHICLE FATALITIES, BUT PASSIVE SAFETY BENEFITS REACHING ITS LIMIT; ACTIVE SAFETY A CRITICAL NEXT STEP IN REDUCING VEHICLE FATALITIES oy 0 TRAFFIC FATALITIES Per 100M Vehicle Miles Traveled SEAT BELTS ENERGY- AB
Slide 7: Less Mature Markets Even More Hazardous
Less Mature Markets Even More Hazardous SIGNIFICANT OPPORTUNITIES FOR PROGRESS REMAIN VEHICLE FATALITIES 120 100 ford to) CHINA Fatalities (Thousands) 2 o 20 Road deaths 5 10 15 20 25 30 2000 2004 2008 2012 2016 Read deat sn oe imei No data Sources: NHTSA, World Health Organization, The Economist Ac
Slide 8: Today's Presenters
Today’s Presenters BRINGING TOGETHER INDUSTRY THOUGHT LEADERS WITH APTIV COMMERCIALIZATION FOCUS David Strickland Xavier Mosquet Glen W. De Vos Partner in Venable's Regulatory Group, Senior Partner and Managing Director Senior Vice President, Chief Technology and Former Administrator of the National
Slide 9: Executive Summary
Executive Summary ACTIVE SAFETY PENETRATION ACCELERATING * Increasing consumer awareness and willingness to pay present upside for the active safety market * OEMs making Active Safety core to their strategy and driving penetration of more advanced features REGULATORS AND INFORMATION SERVICES SUPPORT
Slide 10: Xavier Mosquet
Xavier Mosquet SENIOR PARTNER AND MANAGING DIRECTOR, THE BOSTON CONSULTING GROUP 10 Active Safety Teach In | June 26, 2018 | Aptiv
Slide 11: Active Safety Evolution
Active Safety Evolution JUNE 26, 2018
Slide 12: The number and severity of auto accidents in the U.S. are troubling
The number and severity of auto accidents in the U.S. are troubling # of auto accidents 6M # of people injured 2.4M Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved. $910B+ # of fatalities 40K Societal cost # of vehicles in crashes 13M 12 Source: BCG analysis, Insurance Inst
Slide 13: Active safety can reduce number of crashes
Active safety can reduce number of crashes Active safety features can reduce backing and front-to-rear collisions by up to 62% and 50%, respectively1 Active safety feature Type of crash Rear automatic braking 62 Backing Automatic Emergency Braking 50 Front-to-rear Copyright © 2017 by The Boston Cons
Slide 14: Motor vehicle crashes cost U.S. society $910B per year
Motor vehicle crashes cost U.S. society $910B per year Current active safety features have the potential to reduce societal harm by 28% Motor vehicle crashes cost the U.S. $910B or ~5% of real GDP each year Current active safety features could save ~$250B annually Societal harm ($B) or around ~2.5x
Slide 15: Four factors to unlock active safety societal benefits
Four factors to Active safety unlock potential total societal societal benefits Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved. contribution of active safety $250B Source: BCG 15
Slide 16: US and EU regulators pushing NCAP at rapid pace
US and EU regulators pushing NCAP at rapid pace 1994 Five-star rating system established 2011 1979 Added side pole testing, different sized 1997 2004 dummies, collecting more crash data, NCAP established for 2015 Added testing and Added dynamic testing to Overall Vehicle Score frontal impact testing
Slide 17: US regulators committed to ensuring active safety penetration
Twenty automakers1 pledged to voluntarily equip virtually all new passenger vehicles by September 1, 2022 US regulators committed to Announced NCAP update to include ensuring active crash avoidance and included AEB in list of recommended technologies Copyright © 2017 by The Boston Consulting Group,
Slide 18: EU regulators committed to continue pushing active safety, China to match EU NCAP
EU regulators committed to continue pushing active safety as well, China to match EU NCAP standards Roadmap 2020 2018 2019 2020 2021 2022 2023 2024 2025 AEB VRU cyclist Far-side protection Mobile progressive deformable barrier Roadmap 2025 Driver monitoring AEB VRU pedestrian – Back-over EU NCAP AEB
Slide 19: OEMs making active safety core part of their strategy
OEMs making active safety core part of their strategy 2017 AEB OEM Vision take rate Progress In Sweden alone we have seen a decline of ~45% in rear-end frontal By 2020, no one will be crashes thanks to our collision warning with autobrake system…we are killed or seriously injured in 68% determined t
Slide 20: High level of awareness among consumers
High level of awareness among consumers Percentage of respondents (%) 50 50 45 43 41 40 38 37 24 37 34 25 23 30 22 27 23 21 22 17 24 22 20 20 19 19 20 16 Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved. 17 14 12 15 12 11 11 11 26 10 10 20 20 9 Familiar 18 16 16 17 15 11 10
Slide 21: Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
SLIDE REDACTED 21 Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Slide 22: Consumer acceptance and willingness to pay for active safety
Consumer acceptance and willingness to pay for active safety $600 Average willingness to pay $400 $470 $200 $270 $190 $170 Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved. $0 Forward collision warning/assist/AEB Blind spot detection Park assist Lane departure warning 2017 P
Slide 23: Recap: Levels of driving automation
Recap: Levels of driving automation Fallback System Steering and performance capability acceleration/ Monitoring driving of dynamic (driving Level Name deceleration environment driving task modes) Human driver monitor the driving environment Human Human Human 0 No Automation n/a driver driver driver
Slide 24: Market evolving as a continuum rather than in discreet SAE levels
Market evolving as a continuum rather than in discreet SAE levels Level 0 Level 1 Level 2 Level 2+ Level 3 Level 4 Level 5 Systems to aid or Adaptive Cruise Lane keep assist + Highway Highway Most driving All driving warn driver, Control (ACC) ACC automated driving automated driving, scenarios scena
Slide 25: Each level of automation paves way for the next
Each level of automation paves way for the next Level 0/1 Level 2 Level 2+ Level 3 Level 4/5 Cameras 1-2 1-2 4-8 5-6 5 - 14 Radar 0-5 3-5 1-5 3-5 8 - 21 Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved. Lidar 0 0 0 1 1-5 Ultrasonic 4-6 6-12 4 - 12 8 - 12 0 - 12 AD module 0 1
Slide 26: Regulatory pace, consumer awareness and OEM commitment will continue market growth
Regulatory pace, consumer awareness/willingness and OEM commitment will continue market growth Market size (million vehicles) Market size ($B) 50 15 46 Potential upside $12-13B 9 40 possible from $11B consumer willingness to pay for L2 and L2+ 10 Copyright © 2017 by The Boston Consulting Group, Inc.
Slide 27: Key implications for the market
Key implications for the market 1 Societal value of active safety is significant, 30+% of annual societal cost of accidents can be avoided short term, 90% as a target 2 OEMs will use active safety as point of differentiation Copyright © 2017 by The Boston Consulting Group, Inc. All rights reserved.
Slide 28: bcg.com
THE Boston CONSULTING GROUP
Slide 29: David Strickland
David Strickland PARTNER, VENABLE 29 Active Safety Teach In | June 26, 2018 | Aptiv
Slide 30: Regulatory Roadmap
Regulatory Roadmap REGULATORS RECOGNIZE ACTIVE SAFETY SAVES LIVES As early active safety technology has become. more common, regulators. have looked at the data. and recognized that advanced safetyfeatures have reduced crashes and fatalities > As more advanced solutions are deployed, regulators will
Slide 31: Glen De Vos
Glen De Vos SENIOR VICE PRESIDENT, CHIEF TECHNOLOGY OFFICER AND PRESIDENT, MOBILITY AND SERVICES GROUP, APTIV 31 Active Safety Teach In | June 26, 2018 | Aptiv
Slide 32: 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 SOFTWARE ACTIVE SAFETY SENSING AND USER COMPUTING EXPERIENCE SIGNAL AND POWER CONNECTED DISTRIBUTION SERVICES AUTONOMOUS CONN
Slide 33: Leveraging Full Aptiv Capabilities
Leveraging Full Aptiv Capabilities UNIQUELY POSITIONED WITH BOTH THE BRAIN AND NERVOUS SYSTEM OF THE VEHICLE MULTIPLE APTIV PRODUCT LINES CONTRIBUTE TO - AND BENEFIT FROM - INCREASING SAFETY ADOPTION &3 (3 33 Active Safety Teach In| June 26, 2018 | Aptiv ACTIVE SAFETY PROVIDING SOFTWARE, DOMAIN CONT
Slide 34: Heritage In Active Safety
Heritage In Active Safety OVER 25 YEARS OF EXPERIENCE IN COMMERCIALIZING AUTOMOTIVE GRADE SAFETY SOLUTIONS @ First three generations Subsequent generations of radar all 3 { of radar were es solid state / electronic scanning. e H electromechanical ited mn 1993: First to provide i 2009: Industry first
Slide 35: Active Safety Portfolio
Active Safety Portfolio COMPREHENSIVE ACTIVE SAFETY SOLUTIONS SUPPORTED BY DEEP SYSTEMS KNOWLEDGE AND RELEVANT PRODUCT PORTFOLIO SOFTWARE & SENSOR FUSION SIDE FRONT VIEW LEADING RADAR CAMERA TECHNOLOGY PORTFOLIO CORNER FORWARD LOOKING LIDAR RADAR SYSTEMS REAR VIEW INTEGRATION FORWARD CAMERA LOOKING
Slide 36: Perception Systems Enable Advanced Safety
Perception Systems Enable Advanced Safety INVESTMENTS IN ENGINEERING AND STRATEGIC PARTNERSHIPS UNIQUELY POSITION APTIV ACROSS ALL THREE SENSING MODALITIES 36 Active Safety Teach In | June 26, 2018 | Aptiv
Slide 37: The Importance of Sensor Fusion
The Importance of Sensor Fusion MULTIPLE SENSING MODALITIES REQUIRED; SENSOR FUSION IS THE SECRET SAUCE THAT BRINGS THEM TOGETHER ASSESS CONFIDENCE OF THE DETECTED OBJECTS AND EVALUATE PLAUSIBILITY OF THE OBJECT IMPROVE ACCURACY OF POSITION AND MOTION ESTIMATION MAXIMIZE AVAILABILITY AND ENSURE FAIL
Slide 38: Smart Vehicle Architecture (SVA) for ADAS
Smart Vehicle Architecture (SVA) for ADAS APPLYING SMART VEHICLE ARCHITECTURE APPROACH KEY TO SCALABILITY, AND OPTIMIZED COST FOR NEXT GENERATION FUNCTIONALITY Today 2007 | VOLVO S80 2018 | BMW APPLYING SVA APPROACH FUSION ACTIVE SAFETY CONTROLLER • Improved decision making DOMAIN CONTROLLER • Signi
Slide 39: Today's Active Safety Architecture
Today’s Active Safety Architecture MARKET CONTINUING TO DRIVE PENETRATION OF MORE ADVANCED SOLUTIONS LEVEL 0/1 LEVEL 2 LEVEL 2+ LEVEL 3 Function-specific automation of one Combined function automation of Conditional automation; driver engaged Conditional automation; driver able to fully control func
Slide 40: Content Per Vehicle
Content Per Vehicle INCREASING LEVELS OF FUNCTIONALITY RESULT IN SIGNIFICANTLY HIGHER ADDRESSABLE CPV LEVEL 0/1 LEVEL 2 LEVEL 2+ LEVEL 3 Function-specific automation of one Combined function automation of Conditional automation; driver engaged Conditional automation; driver able to fully control fun
Slide 41: Winning With Premium OEMs
Winning With Premium OEMs • DELIVERING PREMIUM PERFORMANCE DIFFERENTIATION FOR L2 AND ABOVE • SCALABILITY ENABLES CUSTOMIZATION • COMPLEX CONTROLLER DESIGN MEETING FUNCTIONAL SAFETY REQUIREMENTS Audi BMW LEVEL 0 – 3 LEVEL 0 – 4 MOST POWERFUL COMPUTE PLATFORM AVAILABLE IN A VEHICLE TODAY LEVERAGING A
Slide 42: Democratization of Active Safety
Democratization of Active Safety. “4 BASE ACTIVE SAFETY FUNCTIONALITY MOVING TO MASS MARKET PLATFORMS Evidence of automation effectiveness driving new regulation standards, while consumer information programs continue to stimulate the ADAS market by requesting increasingly advanced active safety sys
Slide 43: Leading To High Volume Applications
… Leading To High Volume Applications • DELIVERING COST OPTIMIZATION FOR L0 TO LOWER LEVEL L2 SOLUTIONS • SCALABILITY FOR DESIGN FLEXIBILITY AND ENGINEERING REUSE • PACKAGING OPTIMIZED FOR ALL VEHICLE CLASSES THROUGH SMART VEHICLE ARCHITECTURE North American OEM FCA LEVEL 0 – 2+ LEVEL 0 – 2+ ENABLIN
Slide 44: China Safety Market Maturing Rapidly
China Safety Market Maturing Rapidly CHINA OEMs DRIVING EXPONENTIAL INCREASES IN ACTIVE SAFETY ADOPTION 2006 Today Best Selling Model Not Available Optional Standard CHERY QQ TIGGO 7 $4,500 Sales Price $22,000 Sales Price 4x Addressable CPV Airbags (Driver/Front/Rear/Side) Airbags Air-conditioning (
Slide 45: Active Safety Financial Outlook
Active Safety Financial Outlook CUSTOMER AWARDS REFLECT MARKET SHARE GAINS ADDRESSABLE MARKET BOOKINGS REVENUE OUTLOOK $ Billions, % CAGR Lifetime gross program revenues, $ Billions $ Billions, % CAGR 20% 35% $11+ ~$1B $2+ LVL 3 Active Safety Revenue In 2018 35% LVL 2 $3.7 $3+ 50% $5 $0.9 1Q YTD LVL
Slide 46: Active Safety Leading To Automated Driving
Active Safety Leading To Automated Driving AUTOMATED DRIVING ON THE SPECTRUM OF ACTIVE SAFETY SOLUTIONS; INVESTMENTS IN SOFTWARE, SENSING AND COMPUTE DRIVE REVENUE TODAY AND IN THE FUTURE Software & systems integratiot 7 - Accelerating enabling leadership position in active sai " = Mobility to deliv
Slide 47: Automated Driving Investments
Automated Driving Investments ACQUISITIONS AND AUTOMATED DRIVING SOFTWARE STACK PROVIDERS, AND STRATEGIC INVESTMENTS IN SOLID STATE LiDAR COMPLEMENT EXISTING APTIV CAPABILITIES SOFTWARE STRATEGIC ACQUISITIONS OF AUTOMATED DRIVING FULL-STACK SOFTWARE PROVIDERS SOLID STATE LiDAR STRATEGIC INVESTMENTS
Slide 48: Leveraging Mobility & Services Investments
Leveraging Mobility & Services Investments ADVANCED CAPABILITIES HELPING DIFFERENTIATE CURRENT APTIV PLATFORMS AND INFORM PRODUCT ROADMAPS AUTOMATED DRIVING ON THE SPECTRUM OF ACTIVE SAFETY • Existing strengths in sensing and compute core to unlocking functionality CURRENT PLATFORMS • Demonstrated A
Slide 49: Summary
Summary APTIV WELL POSITIONED TO BENEFIT FROM DEMOCRATIZATION OF ACTIVE SAFETY “APTIV: 49 Active Safety Teach In| June 26, 2018 | Aptiv Core Active Safety market for LO-L3 poised for growth inflection Portfolio of relevant technologies enabling OE point of differentiation and scalability Increasing
Slide 50: Active Safety
Active Safety Teach In | June 26, 2018 | Aptiv
Slide 51: Glen W. De Vos
Glen W. De Vos Senior Vice President, Chief Technology Officer and President, Mobility and Services Group Glen De Vos is senior vice president and chief technology officer of Aptiv, a position he has held since March 2017. In this role, Mr. De Vos is responsible for leading the company’s innovation
Slide 52: Xavier Mosquet
Xavier Mosquet Senior Partner and Managing Director, The Boston Consulting Group Xavier joined BCG in London in 1985. He later moved to Paris, then in 2005 opened BCG's Detroit office. He has been for 8 years the leader of BCG’s Global Automotive Practice. Xavier received five Awards for his consult
Slide 53: David Strickland
David Strickland Partner, Venable LLP A partner in Venable's Regulatory Group, David Strickland focuses his practice on transportation policy, consumer protection, internet privacy, data security, and legislative and government affairs. In addition, David is Counsel to the Self-Driving Coalition for
Slide 54: Aptiv Technology Advisory Council (ATAC)
Aptiv Technology Advisory Council (ATAC) INDUSTRY THOUGHT LEADERS ADVISING APTIV LEADERSHIP ON EMERGING TECHNOLOGY TRENDS; INTERACTIONS GUIDE PRODUCT STRATEGIES AND INVESTMENTS Mr. Hamid Akhavan Mr. Michael D. Hillman Former Chief Executive Head of Hardware Officer of Unify Inc. Oculus VR, LLC, a wh