Slide 1: Fourth Quarter 2022 Earnings Call
February 2, 2023 APTIV Fourth Quarter 2022 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: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights DELIVERING RECORD BOOKINGS, STRONG REVENUE GROWTH AND SIGNIFICANT MARGIN EXPANSION $32B FY 2022 BOOKINGS ACROSS PORTFOLIO REVENUE $4.6B $17.5B OF ADVANCED TECHNOLOGIES 4Q up 19% FY up 16% +15% GoM IN 4Q AND +11% GoM IN 2022 DESPITE ONGOING EBITDA $674M $2,190M
Slide 4: Strengthening Leadership Position
Strengthening Leadership Position CAPITALIZING ON THE CHANGING ENVIRONMENT WHILE SOLVING OUR CUSTOMERS’ BIGGEST CHALLENGES CONTINUOUS IMPROVEMENT OF OUR OPERATING MODEL EXTENDING COMPETITIVE MOAT WITH ADVANCED TECHNOLOGY PRODUCT-CENTRIC ROADMAPS Developing product-specific, flexible solutions in adv
Slide 5: Record New Business Awards
Record New Business Awards DRIVEN BY FLAWLESS EXECUTION AND PORTFOLIO OF ADVANCED TECHNOLOGIES NEW BUSINESS BOOKINGS SMART VEHICLE ARCHITECTURE™ Lifetime gross program revenues, $ Billions • $4.2B in 2022 new business awards ~$32 • Key CVC and PDC wins across customer base • $5B in lifetime new busi
Slide 6: Segment Highlights
Segment Highlights BRAIN AND NERVOUS SYSTEM CAPABILITIES ENABLE THE DEVELOPMENT OF FULL SYSTEM-LEVEL SOLUTIONS ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED SMART VEHICLE LEVERAGES OUR LEADING POSITION AS AN ARCHITECTURE COMPUTING PLATFORMS,
Slide 7: Aptiv CES 2023
Aptiv CES 2023 BRINGING THE SOFTWARE-DEFINED VEHICLE TO LIFE WITH FUNCTIONAL SOLUTIONS Wind River Software Platform Gen 6 ADAS Platform Functional Smart Vehicle Architecture™ On-vehicle demonstration of industry’s first Open and scalable ADAS platform Optimized and sustainable platform end-to-end, c
Slide 8: 2023 Outlook
2023 Outlook ROBUST BUSINESS MODEL AND PORTFOLIO OF ADVANCED TECHNOLOGIES RESULTING IN SUSTAINABLE VALUE CREATION CONTINUED EXPANSION OF OUR … RESULTING IN STRONG … EVEN IN A WEAK COMPETITIVE MOAT… OUTPERFORMANCE … PRODUCTION ENVIRONMENT INVESTMENTS IN ADVANCED TECHNOLOGIES SUSTAINED GROWTH ABOVE MA
Slide 9: 4Q 2022 vs. 4Q 2021
4Q 2022 vs. 4Q 2021 ($ Millions, except per share amounts) 4Q 2022 Fav / (Unfav) COMMENTS • Vehicle production +4% REPORTED REVENUE $506 $4,640 • AS&UX 11% GoM; S&PS 16% GoM Adjusted Growth %1 | Growth Over Market 19% | 15% • China COVID impact ($60M); continued supply chain disruptions • Margin exp
Slide 10: 4Q 2022 Revenue
4Q 2022 Revenue CONTINUED VOLUME GROWTH & COST RECOVERIES MORE THAN OFFSET FX HEADWINDS REVENUE REGIONAL GROWTH $ Billions Adjusted Growth1 | Growth Over Market (GoM) 19% Adj 1 15% GoM N. AMERICA EUROPE CHINA2 $0.1 ($0.3) $0.8 ($0.1) 21% Adj 22% Adj 8% Adj 13% GoM 19% GoM 14% GoM $4.6 $4.1 4Q 2021 S
Slide 11: 4Q 2022 Segment Recap
4Q 2022 Segment Recap STRONG FLOW-THROUGH ON DOUBLE-DIGIT REVENUE GROWTH ACROSS SEGMENTS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE OP INCOME2 REVENUE OP INCOME2 15%1 20%1 64% 103% $1,280 $3,374 $446 $1,116 $3,025 $77 $272 $38 4Q 21 4Q 22 4Q 21 4Q 22 4Q
Slide 12: 2023 Macro Overview
2023 Macro Overview EXPECTING FULL YEAR GLOBAL PRODUCTION DOWN 1% GLOBAL NORTH AMERICA EUROPE CHINA 37% of Revenue2 31% of Revenue2 22% of Revenue2 FY 2023 • Production impacted by FY 2023 • Content growth FY 2023 • Macro risks to weigh FY 2023 • Continued EV continued supply offsetting flat on dema
Slide 13: 2023 Full Year Outlook
2023 Full Year Outlook BALANCING CONTINUED OUTGROWTH WITH DISRUPTIONS AND MACRO CONCERNS ($ Millions, except per share amounts) FY 2023 Fav / (Unfav) FY 2023 COMMENTS REPORTED REVENUE $1,511 • Vehicle production (1%)4 $18,700 – 19,300 Adj. Growth %1 | Growth Over Market ~8% | ~9% • FY GoM: AS&UX ~12
Slide 14: 2023 Outlook Versus 2022
2023 Outlook Versus 2022 STRONG GROWTH OVER MARKET AND MARGIN EXPANSION REVENUE OPERATING INCOME1 $ Billions $ Billions, % of Sales $2.0 10.5% Wind River / $19.0 Intercable Wind River / 10.2% $1.1 ($0.0) Intercable $0.3 ($0.1) ($0.3) ($0.0) $0.4 ($0.3) 9.1% $18.3 $1.9 (Ex. Acq.) $17.5 $1.6 (Ex. Acq.
Slide 15: Summary
Summary EXPANDING COMPETITIVE MOAT ACCELERATING COMMERCIAL MOMENTUM Record bookings demonstrating customer validation of industry-leading, relevant portfolio of safe, green and connected technologies CONTINUED FLAWLESS OPERATING EXECUTION Managing through material constraints and supply chain disrup
Slide 16: Appendix
» APPENDIX
Slide 17: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 4Q 2022 2022 Reported net sales % change 12% 12% Less: foreign currency exchange and commodities (8%) (4%) Less: acquisitions 1% -% Adjusted revenue growth 19% 16% 4Q 2022 2022 Reported Revenue Growth 12% 12% Signal And Power Solutions Reported Revenue Growth 12% 12% Advan
Slide 18: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 4Q 2022 2022 ($ millions) Revenue OI Adj Revenue OI Adj 2021: Signal And Power Solutions 3,025 272 11,598 1,225 Volume, net of contractual price reductions 613 283 1,908 712 FX and commodities (282) (77) (581) (202) Operational performance - 50 - (166) Other
Slide 19: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 4Q 2022 4Q 2021 2022 2021 Net income attributable to Aptiv 249 31 594 590 Interest expense 62 36 219 150 Other expense, net 10 131 54 129 Income tax expense 25 - 121 101 Equity loss, net of tax 77 54 279 200 Net income (loss) attributable to no
Slide 20: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 4Q 2022 4Q 2021 2022 2021 Net income attributable to Aptiv 249 31 594 590 Interest expense 62 36 219 150 Income tax expense 25 - 121 101 Net income (loss) attributable to noncontrolling interest 18 8 (3) 19 Net loss attributable to redeemab
Slide 21: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 4Q 2022 4Q 2021 2022 2021 Net income attributable to ordinary shareholders 233 15 531 527 Mandatory convertible preferred share dividends 16 16 63 63 Net income attributable to Aptiv 249 31 594 590 Adjusting item
Slide 22: Shares Outstanding
Shares Outstanding (millions) 4Q 2022 4Q 2021 2022 2021 Weighted average ordinary shares outstanding, basic 270.95 270.52 270.90 270.46 Dilutive shares related to RSUs 0.45 0.95 0.28 0.76 Weighted average ordinary shares outstanding, including dilutive shares 271.40 271.47 271.18 271.22 Weighted ave
Slide 23: 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 830 Interest expense 235 Other income, net (15) Income tax expense 195 Equity loss, net of tax 300 Net income attributable to noncontrolling interest (a) 15 Operating income 1,560 Am
Slide 24: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20231 Net income attributable to Aptiv 830 Interest expense 235 Income tax expense 195 Net income attributable to noncontrolling interest (a) 15 Depreciation and amortization 895 EBITDA 2,170 Other income, net (15) Equity loss, net
Slide 25: 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 800 Mandatory convertible preferred share dividends 30 Net income attributable to Aptiv 830 Adjusting items: Amortization 230 Restructuring 110
Slide 26: Aptiv
“APTIV: