Slide 1: Third Quarter 2023 Earnings Call
November 2, 2023 APTIV Third 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: Third Quarter Highlights
Third Quarter Highlights SOLID 3Q EARNINGS PERFORMANCE EXCEEDING EXPECTATIONS DESPITE UAW STRIKE IMPACT REVENUE $5.1B $15.1B $6.6B 3Q BOOKINGS DRIVEN BY CONTINUED STRENGTH 3Q up 7% YTD up 16% IN ACTIVE SAFETY AND HIGH VOLTAGE ELECTRIFICATION EBITDA 7% 3Q REVENUE GROWTH DUE TO STRENGTH IN AS&UX WITH
Slide 4: 2023 Key Themes and Trends
2023 Key Themes and Trends DYNAMIC MACRO ENVIRONMENT WITH STRONG UNDERLYING BUSINESS PERFORMANCE UNIQUELY POSITIONED TO CREATE LONG-TERM VALUE KEY MACRO TRENDS PARTNER OF CHOICE GLOBAL PRODUCTION Strong bookings and strategic customer pursuits for SVA™, Full year outlook of 6%+ despite increased var
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 YTD 2023 ~$32B ~$27B FY 2021 ~$24B $14.2 $13.9 ACTIVE SAFE
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience INDUSTRY LEADING CAPABILITIES IN CENTRALIZED COMPUTE, PERCEPTION SYSTEMS AND SOFTWARE 3Q 2023 HIGHLIGHTS 3Q 2023 KEY AWARDS GROWTH DRIVERS • Revenue Growth: 13%; Growth Over Market: 8% • Strong Active Safety growth across all regions • Launched Automated Parking sol
Slide 7: Signal & Power Solutions
Signal & Power Solutions GLOBAL LEADER IN OPTIMIZED, NEXT-GEN ARCHITECTURE SOLUTIONS 3Q 2023 KEY AWARDS AA 2023 HIGHLIGHTS 3Q GROWTH DRIVERS VEHICLE ARCHITECTURE SOLUTIONS • Revenue Growth: 5%; Growth Over Market: Flat FOR LOCAL CHINESE OEM • Growth generally in-line with market across all regions •
Slide 8: Innovation Unveiled: CES 2024
Innovation Unveiled: CES 2024 VEHICLE BECOMING AN INTELLIGENT EDGE DEVICE APTIV INTELLIGENT PERCEPTION FLEXIBLE AND OPTIMIZED ON-VEHICLE PLATFORMS INNOVATIONS CES 2024 EDGE-TO-CLOUD HIGH VOLTAGE CONNECTED PLATFORMS 2030 AND THE CLOUD-NATIVE VEHICLE 8 3Q 2023 Earnings | November 2, 2023 | Aptiv
Slide 9: Value Creation Delivered Sustainably
Value Creation Delivered Sustainably ANNUAL PROGRESS TOWARDS OUR 2025 SUSTAINABILITY COMMITMENTS PEOPLE PRODUCTS PLANET PLATFORM ATTRACTING, DEVELOPING & SAFE, GREEN & CLIMATE CHANGE ETHICS & COMPLIANCE RETAINING THE BEST TALENT CONNECTED MOBILITY TONS OF EMISSIONS OF SALARIED EMPLOYEES 40% INTERNAL
Slide 10: Perspectives on 2024
Perspectives on 2024 SUSTAINABLE BUSINESS MODEL AND STRATEGY EXECUTION RESULTING IN CONSISTENT VALUE CREATION WELL POSITIONED FOR STRONG GROWTH AND CONTINUED GLOBAL VEHICLE NORMALIZED MARGIN EXPANSION… ACCELERATION OF SUPPLY CHAIN PRODUCTION MEGATRENDS INCREASING …HOWEVER, MACRO CHALLENGES REMAIN CO
Slide 11: 3Q 2023 vs. 3Q 2022
3Q 2023 vs. 3Q 2022 ($ Millions, except per share amounts) 3Q 2023 Fav / (Unfav) COMMENTS • GoM of 2% reflecting NA strike, EU and China REPORTED REVENUE $500 $5,114 program timing and customer mix Adjusted Growth %1 | Growth Over Market 7% | 2% • UAW strike impact of (~$80M) EBITDA2 $727 $54 • ~30%
Slide 12: 3Q 2023 Revenue
3Q 2023 Revenue DOUBLE-DIGIT GROWTH IN NORTH AMERICA AND EUROPE; CHINA IN-LINE WITH MARKET REVENUE REGIONAL GROWTH $ Millions 7% Adj 1 Adjusted Growth1 | Growth Over Market (GoM) 2% GoM 1 Wind River / N. AMERICA EUROPE CHINA2 Intercable Automotive $27 $21 $153 $299 10% Adj 10% Adj ~flat Adj 2% GoM 4
Slide 13: 3Q 2023 AS&UX Recap
3Q 2023 AS&UX Recap STRONG ACTIVE SAFETY GROWTH CONTINUES REVENUE1 OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • Active Safety revenue growth of 30% • User Experience down 5% in the quarter, 13%1 35% impacted by customer program timing 7.6% • UAW strike revenue impact of
Slide 14: 3Q 2023 S&PS Recap
3Q 2023 S&PS Recap STRONG PERFORMANCE DESPITE CHALLENGING OPERATING ENVIRONMENT REVENUE1 OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • UAW strike revenue impact of (~$70M); Op Income impact of (~$25M) 5%1 2% • High Voltage revenue growth of 13% • YoY FX impact of (~70) bp
Slide 15: Balance Sheet Strength
Balance Sheet Strength RELENTLESS FOCUS ON IMPROVING OPERATING PERFORMANCE AND CASH FLOW GENERATION OPERATING CASH FLOW DEBT & CASH PROFILE DISCIPLINED 3Q 2023 Actuals ($ Billions) 3Q 2023 Actuals ($ Billions) CAPITAL DEPLOYMENT ~$300M TERM LOAN A PAID OFF Prioritize organic investments to support I
Slide 16: Maintaining 2023 Full Year Outlook
Maintaining 2023 Full Year Outlook MAINTAINING FULL YEAR GUIDANCE; INCLUDES STRIKE IMPACT THROUGH OCTOBER Fav / (Unfav) ($ Millions, except per share amounts) FY 2023 vs Prior Year FY 2023 COMMENTS REPORTED REVENUE $2,611 • Strong adj. growth; GoM impacted by strike $19,950 – 20,250 Adj. Growth %1 |
Slide 17: Summary
Summary STRENGTHENING OUR COMPETITIVE POSITION STRONG UNDERLYING BUSINESS PERFORMANCE • Industry-leading portfolio of advanced technologies and resilient business model supports continued outperformance today and in the future IMPROVING SUPPLY CHAIN ENVIRONMENT • Easing of supply chain constraints l
Slide 18: Appendix
» APPENDIX
Slide 19: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 3Q 2023 YTD 2023 Reported net sales % change 11% 18% Less: foreign currency exchange and commodities -% (2%) Less: acquisitions 4% 4% Adjusted revenue growth 7% 16% 3Q 2023 YTD 2023 Reported Revenue Growth 11% 18% Signal And Power Solutions Reported Revenue Growth 8% 13% A
Slide 20: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 3Q 2023 3Q 2022 YTD 2023 YTD 2022 Net income attributable to Aptiv 1,629 301 2,033 345 Interest expense 75 58 214 157 Other (income) expense, net (26) (20) (36) 44 Income tax (benefit) expense (1,312) 59 (1,248) 96 Equity loss, net of tax 72 67
Slide 21: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 3Q 2023 3Q 2022 YTD 2023 YTD 2022 Net income attributable to Aptiv 1,629 301 2,033 345 Interest expense 75 58 214 157 Income tax (benefit) expense (1,312) 59 (1,248) 96 Net income (loss) attributable to noncontrolling interest 8 5 15 (21) N
Slide 22: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 3Q 2023 3Q 2022 YTD 2023 YTD 2022 Net income attributable to ordinary shareholders 1,629 286 2,004 298 Mandatory convertible preferred share dividends - 15 29 47 Net income attributable to Aptiv 1,629 301 2,033 3
Slide 23: Shares Outstanding
Shares Outstanding (millions) 3Q 2023 3Q 2022 YTD 2023 YTD 2022 Weighted average ordinary shares outstanding, basic 282.84 270.93 275.56 270.88 Dilutive shares related to RSUs 0.17 0.17 0.13 0.22 Weighted average MCPS Converted Shares - - 7.75 - Weighted average ordinary shares outstanding, includin
Slide 24: 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 2,275 Interest expense 285 Other income, net (40) Income tax benefit (1,180) Equity loss, net of tax 300 Net income attributable to noncontrolling interest (a) 20 Operating income 1,
Slide 25: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20231 Net income attributable to Aptiv 2,275 Interest expense 285 Income tax benefit (1,180) Net income attributable to noncontrolling interest (a) 20 Depreciation and amortization 920 EBITDA 2,320 Other income, net (40) Equity los
Slide 26: 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 2,245 Mandatory convertible preferred share dividends 30 Net income attributable to Aptiv 2,275 Adjusting items: Amortization 240 Restructuring
Slide 27: Aptiv
“APTIV: