Aptiv Plc · NYSE:APTV
Aptiv — Baird Global Industrial Conference 2019
20 slides from Aptiv's conference presentation, Nov 6, 2019
Slide 1: Aptiv
APTIV Kevin Clark President and Chief Executive Officer Joseph Massaro Senior Vice President and Chief Financial Officer
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: Aptiv Overview
Aptiv Overview POSITIONED TO WIN 2019E FINANCIAL PERFORMANCE1 GLOBAL FOOTPRINT AND CAPABILITIES2 $ billions, except per share amounts $14.3 REVENUE 160,000+ EMPLOYEES IN 44 COUNTRIES 22,000 $1.5 OPERATING SALARIED EMPLOYEES INCOME $4.65 EARNINGS PER SHARE $1.5 OPERATING CASH FLOW 18,600 ENGINEERS 12
Slide 4: Industry's Toughest Challenges
Industry’s Toughest Challenges VEHICLE FATALITIES COMING DOWN EMISSIONS REGULATIONS BECOMING URBANIZATION AND CONSUMER GLOBALLY, BUT PASSIVE SAFETY AT ITS INCREASINGLY STRINGENT GLOBALLY TO EXPECTATIONS DRIVING DEMAND FOR LIMIT; ADVANCED SAFETY SOLUTIONS HELP IMPROVE AIR QUALITY AND REDUCE MORE INTE
Slide 5: Proactively Addressing the Changing Environment
Proactively Addressing the Changing Environment SMART EXECUTION OF OUR BUSINESS MODEL AND TIMELY CAPITAL DEPLOYMENT HAS ENABLED APTIV TO ADAPT AND THRIVE IN A DYNAMIC MARKET INVESTED IN AUTOMATED DRIVING & DATA ACCRETIVE CONNECTOR BOLT-ONs increasing our CAPABILITIES prior to peers / OEMs, at attrac
Slide 6: Aptiv / Hyundai Joint Venture
Aptiv / Hyundai Joint Venture JOINT VENTURE TO ADVANCE THE DESIGN, DEVELOPMENT AND COMMERCIALIZATION OF L4/5 AV TECHNOLOGY RIGHT PARTNER VEHICLES IN DEVELOPMENT WITH THE FUNCTIONAL SAFETY ARCHITECTURE IN PLACE, TO ADVANCE THE DEVELOPMENT OF L4-L5 TECHNOLOGY AT SCALE SHARED VISION SHARED TIMELINE AND
Slide 7: Competitive Moat is Expanding
Competitive Moat is Expanding PROVIDING END-TO-END SOLUTIONS THAT ADDRESS INDUSTRY CHALLENGES AND ENABLE THE COMMERCIALIZATION OF NEW MOBILITY VEHICLE IS BECOMING A FULL SYSTEM SOLUTION CAPABILITIES MAKE APTIV UNIQUELY QUALIFIED SOFTWARE DEFINED PLATFORM TO CONCEIVE, SPECIFY AND DELIVER NEW MOBILITY
Slide 8: Fast Growing Business Gaining Scale
Fast Growing Business Gaining Scale LEVERAGING FULL APTIV CAPABILITIES TO INCREASE SCALE AND RELEVANCE IN FAST-GROWING PRODUCT AREAS ACTIVE SAFETY HIGH VOLTAGE ELECTRIFICATION REVENUE BOOKINGS 2022 BOOKINGS REVENUE Lifetime gross program revenues, $ Billions $2.5B+ Lifetime gross program revenues, $
Slide 9: Strategy Has Delivered Strong Results
Strategy Has Delivered Strong Results EXECUTION TOWARDS LONG TERM FINANCIAL FRAMEWORK CREATING VALUE FOR SHAREHOLDERS GROWTH INCOME TSR Revenue, IHS Production Operating Income1 2015 – November 1st, 2019 Aptiv | 133 Aptiv | 140 61% 49% Peers2 | 116 Peers2 | 114 Production | 107 16% 13% 2015 2016 201
Slide 10: Aptiv
“APTIV:
Slide 11: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 3Q 2019 YTD 2019 Reported net sales % change 2% -% Less: foreign currency exchange and commodities (3%) (3%) Less: divestitures and other, net (1%) (1%) Adjusted revenue growth 6% 4% Reflective of management estimates due to integration of businesses 3Q 2019 YTD 2019 Repor
Slide 12: YoY Revenue and OI Adj. By Segment Walks
YoY Revenue and OI Adj. By Segment Walks 3Q 2019 ($ millions) Revenue OI Adj. 3Q 2018: Signal And Power Solutions 2,535 346 Volume, net of contractual price reductions 113 (13) FX and commodities (64) (1) Operational performance - 30 Other - (12) 3Q 2019: Signal And Power Solutions 2,584 350 3Q 2018
Slide 13: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 246 222 760 820 Interest expense 42 34 123 104 Other income, net (7) (4) (29) (27) Income tax expense 38 66 102 208 Equity income, net of tax (5) (4) (12) (17) Net income attributable to non
Slide 14: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 246 222 760 820 Interest expense 42 34 123 104 Other income, net (7) (4) (29) (27) Income tax expense 38 66 102 208 Equity income, net of tax (5) (4) (12) (17) Net income attributable to non
Slide 15: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 246 222 760 820 Adjusting items: Restructuring 61 65 118 100 Other acquisition and portfolio project costs 17 16 45 57 Asset impairments 1 1 11 2 Deferred compensat
Slide 16: Shares Outstanding
Shares Outstanding (millions) 3Q 2019 3Q 2018 YTD 2019 YTD 2018 Weighted average ordinary shares outstanding, basic 255.89 264.56 257.32 265.02 Dilutive shares related to RSUs 0.55 0.77 0.42 0.72 Weighted average ordinary shares outstanding, including dilutive shares 256.44 265.33 257.74 265.74 16 B
Slide 17: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 4Q 20191 20191 Net income attributable to Aptiv 203 963 Interest expense 41 164 Other income, net 8 (21) Income tax expense 37 139 Equity income, net of tax (1) (13) Net income attributable to noncontrolling interest 15 23 Operating income 303 1,25
Slide 18: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 4Q 20191 20191 Net income attributable to Aptiv 203 963 Interest expense 41 164 Other income, net 8 (21) Income tax expense 37 139 Equity income, net of tax (1) (13) Net income attributable to noncontrolling interest 15 23 Operating income 303 1,25
Slide 19: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 4Q 20191 20191 Net income attributable to Aptiv 203 963 Restructuring 54 172 Other acquisition and portfolio project costs 9 54 Asset impairments - 11 Deferred compensation related to nuTonomy acquisition 9 43 Debt extingu
Slide 20: Aptiv
“APTIV: