Slide 1: Third Quarter 2018 Earnings Call
October 31, 2018 APTIV Third Quarter 2018 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 PORTFOLIO OF LEADING TECHNOLOGIES DRIVING SUSTAINED ABOVE MARKET GROWTHAND RECORD NEW CUSTOMER AWARDS ; *+13%Gom <All STRONG GROWTH ABOVE RECORD NEW | E LOWER BUSINESS AWARDS: (ODUCTION 77 *\ON TRACK TO EXCEED PRIOR ie RECORD | REVENUE $3.5B $10.8B 3QUp 11% | YTD Up 10% EOE
Slide 4: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS DEMONSTRATE APTIV PORTFOLIO STRENGTH IN KEY AUTO 2.0 SOLUTIONS BOOKINGS $7.0 Lifetime gross program revenues, $ Billions $6.1 $5.8 $5.6 ADVANCED $5.1 $5.1 SAFETY & USER $4.6 EXPERIENCE $4.4 $3.8 $3.4 $3.0 SIGNAL & POWER SOLUTIONS 1Q16 2Q16 3Q16 4Q16 1
Slide 5: Advanced Safety & User Experience
Advanced Safety & User Experience DELIVERING 15% GROWTH OVER MARKET; APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO HELP SOLVE CUSTOMERS TOUGHEST CHALLENGES 3Q 2018 HIGHLIGHTS • 11th consecutive quarter of double digit growth • Significant new wins reinforce best-in-class advance
Slide 6: Winning In Compute
Winning In Compute AWARDED HIGH END MULTI-DOMAIN COMPUTE PLATFORM FOR AUDI AND PORSCHE’S NEXT GENERATION ARCHITECTURE APTIV A PROVEN LEADER IN ACTIVE SAFETY, INFOTAINMENT AND UX DOMAIN CENTRALIZATION PORSCHE APPLYING APTIV’S EXPERTISE IN CENTRAL COMPUTE f) TO DELIVER BROADER DOMAIN CENTRALIZATION AS
Slide 7: Signal & Power Solutions
Signal & Power Solutions 11% GROWTH OVER MARKET, WHILE CONTINUING TO DIVERSIFY END MARKET EXPOSURE 3Q 2018 HIGHLIGHTS • New launches, ramp-ups drive strong Growth Over Market: Up 11% • Strength in N. America offsetting Europe/China production declines • Winchester supports further adjacent end-marke
Slide 8: High Voltage Electrification
High Voltage Electrification VEHICLE ELECTRIFICATION INCREASING CONTENT OPPORTUNITIES FOR APTIV REVENUE $ Billions ADDRESSABLE CPV* BOOKINGS FULL HYBRID $1100/ PLUG IN HYBRID $1100/ FULLEV Lifetime gross program revenues, § Billions Iniemal Batiery Conneciions Internal Battery Connectons Internal Ba
Slide 9: 3Q 2018 vs. 3Q 2017
3Q 2018 vs. 3Q 2017 ($ millions, except per share amounts) COMMENTS 3Q 2018 Fav / (Unfav) REPORTED REVENUE $337 • Vehicle production down (1.4%) $3,485 • AS&UX 15% GoM, S&PS 11% GoM Adjusted Growth %1 | Growth Over Market 11% | 13% EBITDA2 $582 10% • Up 15% ex F/X and Commodities EBITDA Margin | Ex
Slide 10: 3Q 2018 Revenue Growth
3Q 2018 Revenue Growth RECORD QUARTERLY GROWTH OVER MARKET REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 11% Adj 1 13% GoM N. AMERICA EUROPE ($37) ($16) CHINA 20% Adj 4% Adj 18% GoM 9% GoM $390 2% Adj S. AMERICA 7% GoM $3,485 (3%) Adj $3,148 (5%) GoM Q3 2017 Vol Price FX /
Slide 11: 3Q 2018 Operating Income Growth
3Q 2018 Operating Income Growth VOLUME GROWTH PARTIALLY OFFSET BY F/X AND MOBILITY OPERATING INCOME1 PERFORMANCE HIGHLIGHTS $ Millions, % of Sales 7% Adj 1 • Margins Up 30 bps ex FX/Comm 13% Ex FX / Comm while funding Mobility Investments ($37) • Conversion on strong sales ($18) $101 (90) bps ($26)
Slide 12: 3Q 2018 EPS Growth
3Q 2018 EPS Growth OPERATING INCOME TRANSLATES INTO ROBUST EPS GROWTH EPS1 PERFORMANCE HIGHLIGHTS Earnings Per Share 8% Adj 1 17% Ex FX / Comm • EPS Up 8% YoY, midpoint of ($0.01) guidance range • 14.4% tax rate; (250 bps) unfav YoY $0.20 • $222M Share Repurchases 3Q YTD ($0.10) $1.24 $1.15 3Q 2017
Slide 13: Advanced Safety & User Experience Highlights
Advanced Safety & User Experience Highlights CONTINUED DOUBLE DIGIT GROWTH; SUPPORTING MOBILITY INVESTMENTS REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales • Revenue growth Up 14% 14%1 180 • Active Safety Up 68% bps • Infotainment & UX Up 4% Ex Mobility 12.2% Inves
Slide 14: Signal & Power Solutions
Signal & Power Solutions DOUBLE DIGIT GROWTH OVER MARKET DRIVEN BY NEW LAUNCHES REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales 4Q • 11% Growth Over Market 10%1 (20) bps • Major new launches up 50% YoY • Op Income Up 8%, up 18% ex FX/Comm 13.6% • Op Margins 14.7%,
Slide 15: 2018 Guidance
2018 Guidance FULL YEAR EPS UP DOUBLE DIGITS IN A SOFTENING MARKET, WHILE FUNDING MOBILITY INVESTMENTS ($ millions, except per share amounts) 4Q 20183 FY 20183 COMMENTS REPORTED REVENUE $3,475 – 3,575 $14,275 – 14,375 • 4Q: Market down (2.5%), including China down DD Adjusted Growth %1 | Growth Over
Slide 16: 2018 Guidance Walk
2018 Guidance Walk DOUBLE DIGIT EARNINGS GROWTH IN A FLAT MARKET, WHILE SUPPORTING MOBILITY INVESTMENTS EPS: CURRENT VS. PRIOR 1 EPS: 2018 vs. 20171 Earnings Per Share Earnings Per Share ($0.14) Production 11% ($0.38) ($0.04) 11% Growth YoY2 ($0.04) FX Growth YoY2 $0.92 ($0.06) $0.03 $5.30 – $5.11 $
Slide 17: 2019 Outlook
2019 Outlook APTIV FINANCIAL STRATEGY REMAINS UNCHANGED COMMITMENT TO LONG-TERM FINANCIAL FRAMEWORK RELEVANT PORTFOLIO ALIGNED TO KEY SECULAR GROWTH DRIVERS. rs 0 FLEXIBLE AND EFFICIENT {} WORKFORCE ae INVESTMENTS TO SUPPORT "i FUTURE GROWTH 17 3Q 2018 Earnings | October 31, 2018 | Aptiv 3) t VOLUME
Slide 18: 2018 Capital Deployment
2018 Capital Deployment SMART CAPITAL DEPLOYMENT CONSISTENT WITH PRIORITIZATION FRAMEWORK CAPITAL EXPENDITURES Target: 35%-40% | 2018E: ~30% Organic re-investments to drive growth M&A AND SHARE REPURCHASES Target: 45%-55% | 2018E: ~60% Adding accretive bolt-on’s /diversification and technology enabl
Slide 19: Summary
Ss 19 ummary 13% Growth Over Market with strength from both AS&UX and S&PS Record year to date bookings of $15.6B; aligned to key Auto 2.0 trends Strong growth over market continues despite slower vehicle production Operations funding investments for growth Resilient business model funding investmen
Slide 20: “APTIV:
“APTIV:
Slide 21: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2018 3Q 2017 Net income attributable to Aptiv 222 395 Interest expense 34 35 Other (income) expense, net (4) 7 Income tax expense 66 31 Equity income, net of tax (4) (6) Income from discontinued operations, net of tax - (107) Net income attributable to n
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 3Q 2018 3Q 2017 Net income attributable to Aptiv 222 395 Interest expense 34 35 Other (income) expense, net (4) 7 Income tax expense 66 31 Equity income, net of tax (4) (6) Income from discontinued operations, net of tax - (107) Net income attributable to n
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 3Q 2018 3Q 2017 Net income attributable to Aptiv 222 395 Income from discontinued operations attributable to Aptiv, net of tax - (98) Income from continuing operations attributable to Aptiv 222 297 Adjusting items: Restructuring 65
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics (millions) 3Q 2018 3Q 2017 Weighted average ordinary shares outstanding, basic 264.56 266.24 Dilutive shares related to RSUs 0.77 0.92 Weighted average ordinary shares outstanding, including dilutive shares 265.33 267.16 24 3Q 2018 Earnings | October 31, 2018 | Aptiv
Slide 25: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 4Q 20181 20181 Net income attributable to Aptiv 249 1,069 Interest expense 35 139 Other income, net (5) (32) Income tax expense 56 264 Equity income, net of tax (6) (23) Net income attributable to noncontrolling interest 13 43 Operating income 342 1,460 Restru
Slide 26: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 4Q 20181 20181 Net income attributable to Aptiv 249 1,069 Interest expense 35 139 Other income, net (5) (32) Income tax expense 56 264 Equity income, net of tax (6) (23) Net income attributable to noncontrolling interest 13 43 Operating income 342 1,460 Deprec
Slide 27: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 4Q 20181 20181 Net income attributable to Aptiv 249 1,069 Restructuring 48 148 Other acquisition and portfolio project costs 16 73 Asset impairments - 2 Deferred compensation related to nuTonomy acquisition 13 57 Transaction and relat