Slide 1: First Quarter 2018 Earnings Call
May 2, 2018 » APTIV First Quarter 2018 Earnings Call “APTIV:
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: Portfolio of Engineered Components and $5B of Bookings
— PORTFOLIO OF mca $5B OF BOOKINGS | LOR SUPPORTED BY gw REVENUE STRONG WIN RATES $3.6B .' 1a ups Noe * — 5 77m =e OPERATING INCOME $427M 1Q Margins of 11.8% ‘ENGINEERED “QRLay ONENTS CAPABILITIES FSTGMPANY WORLD’S MOST KUM ACQUISITION INNOVATIVE COMPANIES 2018 g iliation to US GAAP. -APTIV:
Slide 4: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS 4 Q1 2018 Earnings | May 2, 2018 | Aptiv
Slide 5: Advanced Safety & User Experience
Advanced Safety & User Experience NEXT GENERATION FEATURES AND FUNCTIONALITY DRIVING SALES GROWTH AND NEW BUSINESS AWARDS Note: Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures 5 Q1 2018 Earnings | May 2, 2018 | Aptiv
Slide 6: Hub for operational support, while also enhancing development and testing
Hub for operational support, while also enhancing development and testing Innovation and customer demonstration showcase Multi-year agreement represents clear step toward commercialization Q1 2018 Earnings | May 2, 2018| Aptiv
Slide 7: Signal & Power Solutions
Signal & Power Solutions GROWTH OVER MARKET OF 5% DRIVEN BY ENGINEERED COMPONENTS AND NEW PROGRAM LAUNCHES Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures 7 Q1 2018 Earnings | May 2, 2018 | Aptiv
Slide 8: Strong Acquisition Track Record
Strong Acquisition Track Record EXPANDING ON INDUSTRY LEADING PORTFOLIO BOLT-ON’S ACCRETIVE ACQUISITIONS THAT FC) bg ¢ Hellermanntyton COMPLEMENT AND EXPAND EXISTING PLATFORMS MVL F e e KUM INTAYA — ECHNOLOGIES® ADVANCED TECHNOLOGY CONTROLTEC ia ion aed STRATEGIC ACQUISITIONS ACCELERATE SPEED TO MAR
Slide 9: KUM Engineered Components Acquisition
KUM Engineered Components Acquisition LEADING MANUFACTURER OF SPECIALIZED CONNECTORS AND CABLE MANAGEMENT; DIVERSIFYING CUSTOMER BASE AND PRODUCT PORTFOLIO $ Millions ELECTRICAL DISTRIBUTION SYSTEMS 20% CABLE MANAGEMENT $250M 20% o, CONNECTION SYSTEMS 60% TRANSACTION DETAILS + Purchase Price: $500M
Slide 10: Q1 2018 vs. Q1 2017
Q1 2018 vs. Q1 2017 ($ millions, except per share amounts) COMMENTS Q1 2018 Fav / (Unfav) REPORTED REVENUE $487 • Vehicle production down (0.9%) $3,630 • AS&UX 21% GoM, S&PS 5% GoM Adjusted Growth %1 | Growth Over Market 8% | 9% • Conversion on strong sales growth OPERATING INCOME2 $427 $75 • Lappin
Slide 11: Q1 2018 Revenue Growth
Q1 2018 Revenue Growth STRONG GROWTH IN ALL REGIONS MORE THAN OFFSETTING NORTH AMERICAN PASSENGER CAR DECLINES 1 Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures 11 Q1 2018 Earnings | May 2, 2018 | Aptiv
Slide 12: Q1 2018 Operating Income Growth
Q1 2018 Operating Income Growth STRONG OPERATIONAL PERFORMANCE WHILE CONTINUING TO INVEST OPERATING INCOME1 PERFORMANCE HIGHLIGHTS $ Millions, % of Sales 60 • Conversion on strong sales bps • (2%) Price $30 12.6% ($29) • In line with historical average ($63) $48 11.8% $89 • Foreign Exchange / Commod
Slide 13: Q1 2018 EPS Growth
Q1 2018 EPS Growth OPERATIONAL PERFORMANCE TRANSLATING TO ROBUST EPS GROWTH EPS1 PERFORMANCE HIGHLIGHTS Earnings Per Share 19% • Strong EPS growth • Up 19% YoY, $0.10 above the $0.01 midpoint of guidance ($0.08) • ($0.11) Mobility investments $0.28 • 15.8% tax rate in line with guidance • Lapping pr
Slide 14: Advanced Safety & User Experience Highlights
Advanced Safety & User Experience Highlights STRONG DOUBLE DIGIT GROWTH; CONTINUED INVESTMENTS TO SUPPORT MOBILITY REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales • Q1 Revenue Growth Up 20% • Active Safety Up 57% 480 • Infotainment & UX Up 17% 20%1 bps Ex Mobility
Slide 15: Signal & Power Solutions
Signal & Power Solutions SOLID GROWTH OVER MARKET; MID-SINGLE DIGIT GROWTH IN 2018 REVENUE OPERATING INCOME2 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales • Q1 Revenue Growth Up 4% 4Q • Strong growth in North America despite 4%1 20 passenger car volatility. Continued Asia bps Pac growth o
Slide 16: 2018 Guidance Walk
2018 Guidance Walk RAISING FULL YEAR SALES AND OPERATING INCOME TO REFLECT STRONG FIRST QUARTER PERFORMANCE AND HIGHER FX / COMMODITY ASSUMPTIONS REVENUE OPERATING INCOME2 $ Millions $ Millions, % of Sales 12% 6-7% Growth YoY3 Adj Growth YoY1 $31 - 12.6 – 12.8% $410 8% $34 (10) bps Growth YoY3 5-6%
Slide 17: 2018 Guidance
2018 Guidance 2018 GUIDANCE CONSISTENT WITH LONG TERM PLANNING FRAMEWORK ($ millions, except per share amounts) Q2 20183 FY 20183 FULL YEAR COMMENTS REPORTED REVENUE $3,500 - $3,600 $13,950 - $14,350 • Market Up ~1% Adjusted Growth %1 | Growth Over Market 9% | 5% 6 - 7% | 5 - 6% • AS&UX: Up 10%+, S&
Slide 18: Bolt-On Acquisition Score Card
Bolt-On Acquisition Score Card STRONG TRACK RECORD OF ACQUISITION EXECUTION ACQUISITION PURCHASE 2015-2018 DATE PRICE SALES CAGR FCi 4Q 2012 €765M 5% 7, J MIRED! 4Q 2014 $190M 20% i/o 4Q 2014 $140M 15% Hellermanntyton 4Q 2015 £1B 10% KUM 2H 2018 $500M 5% SYNERGY ACHIEVEMENT 1.5x 1.5x 1.0x 1.5x CAPAB
Slide 19: Sustainable Cost Optimization and Execution
Sustainable Cost Optimization and Execution RELOCATION TO DUBLIN SUPPORTS TRACK RECORD OF STRONG OPERATIONAL PERFORMANCE • Flexible business model drives efficiencies and reduces risk RELENTLESSLY • Improved breakeven levels; (45%) vs. today’s volumes FOCUSED ON COST AND FLEXIBILITY • Stranded cost
Slide 20: Summary
Summary ROBUST GROWTH DRIVEN BY KEY TECHNOLOGIES • 8% adjusted growth with strength from both S&PS and AS&UX • Continued strong momentum from key growth technologies CONFIDENT IN RAISED 2018 OUTLOOK • Stronger revenue growth driven by relevant portfolio of advanced technologies • Continued operating
Slide 21: “APTIV:
“APTIV:
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) Q1 2018 Q1 2017 Net income attributable to Aptiv 307 335 Interest expense 34 33 Other (income) expense, net (30) 23 Income tax expense 59 19 Equity income, net of tax (5) (11) Income from discontinued operations, net of tax - (123) Net income attributable t
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) Q1 2018 Q1 2017 Net income attributable to Aptiv 307 335 Interest expense 34 33 Other (income) expense, net (30) 23 Income tax expense 59 19 Equity income, net of tax (5) (11) Income from discontinued operations, net of tax - (123) Net income attributable t
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) Q1 2018 Q1 2017 Net income attributable to Aptiv 307 335 Income from discontinued operations attributable to Aptiv, net of tax - (115) Income from continuing operations attributable to Aptiv 307 220 Adjusting items: Restructuring 2
Slide 25: Shares Outstanding
Shares Outstanding (millions) Q1 2018 Q1 2017 Weighted average ordinary shares outstanding, basic 265.69 269.20 Dilutive shares related to RSUs 0.75 0.34 Weighted average ordinary shares outstanding, including dilutive shares 266.44 269.54 25 Q1 2018 Earnings | May 2, 2018 | Aptiv
Slide 26: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) Q2 20181 20181 Net income attributable to Aptiv 273 1,131 Interest expense 35 138 Other (income) expense, net 1 (37) Income tax expense 64 268 Equity income, net of tax (8) (30) Net income attributable to noncontrolling interest 8 40 Operating income 373 1,510
Slide 27: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) Q2 20181 20181 Net income attributable to Aptiv 273 1,131 Restructuring 50 147 Other acquisition and portfolio project costs 22 76 Deferred compensation related to nuTonomy acquisition 15 57 Transaction and related (benefits) costs as