Slide 1: Third Quarter 2019 Earnings Call
October 30, 2019 APTIV Third 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: Third quarter and year-to-date results summary
AS STRONG ABOVE So ae Se 4 REVENUE $3.6B $10.8B 3Q up 6% | YTD up 4% t 2 SE ee so EBITDA I. bi Sa $587M $1.7B OVE MARK JESTMENTS FOR 3Q Margins of 16.5% | YTD Margins of 15.7% | \ * git J Or “ J IVE BENEFITS en eee SHNOLOG: , D IN THE FUTURE $410M $1.2B a 3Q Margins of 11.5% | YTD Margins of 10.8% e
Slide 4: 2019 Updated Outlook
2019 Updated Outlook STRONG YEAR-TO-DATE PERFORMANCE; OUTLOOK IMPACTED BY GM / UAW STRIKE t ¥ STRONG Q3 PERFORMANCE GM / UAW STRIKE Sustained strong above-market growth of 8% in 3Q19 Headwind to FY 2019 sales of ~($250M) and Ol of ($135M) EBITDA, Ol and EPS results ex-GM strike above expectations Ex
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS BOOKINGS BOOKINGS $5.6 $4.6 $5.8 $5.1 $7.0 $5.1 $6.1 $4.4 $6.5 $4.3 $5.5 $ 4.4B 2019 YTD $
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience DELIVERING 11% GROWTH OVER MARKET; APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE NEXT GENERATION FEATURES AND FUNCTIONALITY 3Q 2019 HIGHLIGHTS • Continued Growth Over Market: Up 11% YoY, including China Up 26% 2020 FINALIST • Strong Activ
Slide 7: Active Safety Awards Reinforce Outlook
Active Safety Awards Reinforce Outlook APTIV SCALABLE AND FLEXIBLE APPROACH AND COMPREHENSIVE TECHNOLOGY PORTFOLIO LEADING TO AWARDS WITH BOTH PREMIUM AND HIGH VOLUME OEMS APTIV L2 / L2+ / L3 ADAS WINS LEVEL 1-3 LEVEL 1-3 LEVEL 1-3 AUTOMATED DRIVING GLOBAL CHINA CHINA ON THE SPECTRUM OEM Local JV OF
Slide 8: Aptiv / Hyundai Joint Venture
Aptiv / Hyundai Joint Venture JOINT VENTURE TO ADVANCE THE DESIGN, DEVELOPMENT AND COMMERCIALIZATION OF L4/5 AV TECHNOLOGY E&I RIGHT PARTNER VEHICLES IN DEVELOPMENT WITH THE FUNCTIONAL SAFETY ARCHITECTURE IN PLACE, TO ADVANCE THE DEVELOPMENT OF L4-L5 TECHNOLOGY AT SCALE D> HYUNDAI (2) SHARED VISION
Slide 9: Signal & Power Solutions
Signal & Power Solutions GROWTH OVER MARKET OF 6%; BENEFITING FROM NEW PROGRAM LAUNCHES AND END MARKET DIVERSIFICATION 3Q 2019 HIGHLIGHTS • Ramp up of new launches and acquisition contributions accelerate growth • High Voltage Electrification growth in Europe and China • Strong cable management and
Slide 10: Effective Capital Deployment
Effective Capital Deployment ENHANCING ENGINEERED*COMPONENTS PORTFOLIO WITH STRATEGIC BOLT-ON ACQUISITIONS WHY GABOGOM BY MARKET LEADER HIGHLY COMPLEMENTARY 7% Leading provider of high-engineered, TO HELLERMANNTYTON nil high-quality cable management and Broadens HT's capabilities and expands protect
Slide 11: 3Q 2019 Revenue Growth
3Q 2019 Revenue Growth STRONG GROWTH OVER MARKET ACROSS ALL REGIONS WHEN EXCLUDING GM STRIKE IMPACT REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 6% Adj 1 8% GoM N. AMERICA EUROPE CHINA3 $283 ($59) ($80) ($70) 0% Adj2 14% Adj 6% Adj 1% GoM 15% GoM 13% GoM $3,559 $3,485 3Q 2
Slide 12: 3Q 2019 Earnings
3Q 2019 Earnings EBITDA, OPERATING INCOME AND EPS ALL AHEAD OF EXPECTATIONS EBITDA1 OPERATING INCOME1 EPS1 $ Millions, % of Sales $ Millions, % of Sales Earnings per share $ • +$7M versus midpoint of guide ex-GM strike of ($30M) • +$15M versus midpoint of guide ex-GM strike of ($30M) • +$0.07 versus
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 • +11% Growth Over Market • EBITDA Margins 14.7% ex Mobility • Op Margins 10.9% e
Slide 14: Signal & Power Solutions
Signal & Power Solutions STRONG GROWTH OVER MARKET DRIVEN BY NEW LAUNCHES AND END MARKET DIVERSIFICATION REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • +6% GoM, robust new launches and M&A benefit • Up 6% excluding FX/Comm and Tariffs • Up 4% excluding F
Slide 15: 2019 Guidance
2019 Guidance $ millions, except per share amounts 4Q 20193 FY 20193 COMMENTS Excluding GM Strike Including GM Strike Excluding GM Strike Including GM Strike REPORTED REVENUE • 4Q: AS&UX up Low SD; S&PS down Low SD $3,675 - 3,775 $3,495 – 3,595 $14,505 – 14,605 $14,255 – 14,355 Adj Growth %1 | Growt
Slide 16: 2019 Operating Income Guidance Walk
2019 Operating Income Guidance Walk MIDPOINT OF GUIDANCE EXCLUDING THE GM STRIKE IMPACT REMAINS UNCHANGED Q4 2019 FULL YEAR 2019 Operating Income1 ($ Millions), % of Sales2 Operating Income1 ($ Millions), % of Sales2 +20 bps (140) bps 12.1% +80 bps (150) bps ~12.9% (50) bps +110 bps ~11.5% (80) bps
Slide 17: 2020 Outlook
2020 Outlook APTIV FINANCIAL STRATEGY REMAINS UNCHANGED COMMITMENT TO LONG-TERM FINANCIAL FRAMEWORK RELEVANT PORTFOLIO ADDRESSING INDUSTRY’S TOP CHALLENGES SMART CAPITAL DEPLOYMENT e INVESTMENTS TO SUPPORT o FUTURE GROWTH 17 3Q 2019 Earnings | October 30, 2019 | Aptiv 2020 CONSIDERATIONS all & « SUS
Slide 18: Summary
Summary PORTFOLIO DRIVING CONTINUED STRONG ABOVE MARKET GROWTH * Right strategy, rigorously executed driving outperformance today and in the future * Competitive moat expanding, generating outsized customer awards PRUDENT FOURTH QUARTER OUTLOOK * Strong growth over market continues despite slower ve
Slide 19: Appendix
» APPENDIX
Slide 20: 3Q 2019 vs. 3Q 2018
3Q 2019 vs. 3Q 2018 ($ millions, except per share amounts) COMMENTS 3Q 2019 Fav / (Unfav) REPORTED REVENUE $74 • Vehicle production down (2%) $3,559 • AS&UX 11% GoM, S&PS 6% GoM Adjusted Growth %1 | Growth Over Market 6% | 8% EBITDA2 $587 1% • Up 4% ex FX/Commodities and Tariffs EBITDA Margin 16.5%
Slide 21: 2019 Macro Overview
2019 Macro Overview CONTINUED WEAK MACRO ENVIRONMENT GLOBAL NORTH AMERICA EUROPE CHINA 39% of Revenue2 32% of Revenue2 19% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1H19 4% (5%) 1H19 4% (2%) 1H19 6% (6%) 1H19 (9%) (14%
Slide 22: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 3Q 2019 YTD 2019 Reported net sales % change 2% -% Less: foreign currency exchange and commodities (3%) (3%) Less: divestitures and other, net (1%) (1%) Adjusted revenue growth 6% 4% Reflective of management estimates due to integration of businesses 3Q 2019 YTD 2019 Repor
Slide 23: YoY Revenue and OI Adj. By Segment Walks
YoY Revenue and OI Adj. By Segment Walks 3Q 2019 ($ 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 24: 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 25: 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 26: 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 27: 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 28 3
Slide 28: 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 29: 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 30: 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 31: “APTIV:
“APTIV: