Slide 1: Second Quarter 2023 Earnings Call
August 3, 2023 APTIV Second 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: Second Quarter Highlights
Second Quarter Highlights RECORD SECOND QUARTER AND FIRST HALF FINANCIAL RESULTS REVENUE $5.2B $10.0B RECORD REVENUE IN 2Q WITH +10% GoM DRIVEN BY AS&UX 2Q up 25% YTD up 20% SEGMENT AND STRONG VOLUMES ACROSS REGIONS EBITDA CONTINUED STRONG CONTRIBUTION FROM ACTIVE SAFETY $695M $1,289M AND HIGH VOLTA
Slide 4: 2023 Updated Outlook
2023 Updated Outlook STRONG ALIGNMENT TO MEGATRENDS; CONTINUED IMPROVEMENT IN SUPPLY CHAIN UNDERLYING BUSINESS STRENGTH MACRO & INDUSTRY BACKDROP STRONG FIRST HALF INDUSTRY MEGATRENDS Record revenue and $20B+ of new business awards; Increasing demand for fully electrified, software-defined 320 bps 1
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS DRIVEN BY PORTFOLIO OF ADVANCED TECHNOLOGIES AND FLAWLESS EXECUTION BOOKINGS Lifetime gross program revenues, $ Billions FY 2022 FY 2023E ~$32B ~$32B ADVANCED SAFETY SIGNAL & POWER FY 2021 & USER EXPERIENCE SOLUTIONS ~$24B $14.2 $13.9 BOOKINGS BOOKING
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience INDUSTRY LEADING CAPABILITIES IN CENTRALIZED COMPUTE, PERCEPTION SYSTEMS AND SOFTWARE 2Q 2023 HIGHLIGHTS 2Q 2023 KEY AWARDS GROWTH DRIVERS • Revenue Growth: 39%; Growth Over Market: 24% • Continued ramping up of Active Safety launches • User Experience driven by str
Slide 7: Wind River Commercial Progress
Wind River Commercial Progress ENABLING THE TRANSITION FROM A HARDWARE-BASED TO A SOFTWARE-CENTRIC FUTURE NEW CUSTOMER AWARDS GLOBAL LEADER IN INTELLIGENT EDGE SOFTWARE FOR AEROSPACE AND DEFENSE CONNECTED SYSTEMS Wind River’s software platform and cloud-native DevSecOps enabling the software archite
Slide 8: Signal & Power Solutions
Signal & Power Solutions GLOBAL LEADER IN OPTIMIZED, NEXT-GEN ARCHITECTURE SOLUTIONS 2Q 2023 HIGHLIGHTS 2Q 2023 KEY AWARDS GROWTH DRIVERS • Revenue Growth: 21%; Growth Over Market: 6% ~$0.5B OF BOOKINGS IN 2Q, REFLECTING MULTIPLE AWARDS WITH GERMAN OEMS • Favorable EV mix and volume growth in China
Slide 9: High Voltage Electrification
High Voltage Electrification RECORD FIRST HALF BOOKINGS; ON TRACK FOR CONTINUED STRONG GROWTH BOOKINGS REVENUE Lifetime gross program revenues, $ Billions $ Billions, Adj Growth CAGR1 ~30% ~$5 Adj. Growth1 2023 Target • RECORD BOOKINGS WITH ~$1B YTD, ALREADY SURPASSING FULL YEAR BOOKINGS FOR 2022 IN
Slide 10: Customers' Partner-of-Choice
Customers’ Partner-of-Choice RECOGNITION OF LONG-STANDING STRATEGIC PARTNERSHIP WITH THE VW GROUP LEADER IN INNOVATION RELIABLE QUALITY & EXECUTION SUPPLY CHAIN RESILIENCY 2023 Global Performance Champion Awarded by 10 2Q 2023 Earnings | August 3, 2023 | Aptiv
Slide 11: 2Q 2023 vs. 2Q 2022
2Q 2023 vs. 2Q 2022 ($ Millions, except per share amounts) 2Q 2023 Fav / (Unfav) COMMENTS • Strong market outgrowth REPORTED REVENUE $1,143 $5,200 • Strong growth in Active Safety, High Voltage and Adj. Growth %1 | Growth Over Market1 25% | 10% Commercial Vehicle EBITDA2 $695 $330 • ~30% incremental
Slide 12: 2Q 2023 Revenue
2Q 2023 Revenue STRONG GROWTH ACROSS ALL REGIONS REVENUE REGIONAL GROWTH $ Millions 25% Adj 1 Adjusted Growth1 | Growth Over Market1 (GoM) 10% GoM 1 Wind River / Intercable Automotive N. AMERICA EUROPE CHINA2 $176 $114 ($40) $893 19% Adj 28% Adj 41% Adj 4% GoM 14% GoM 20% GoM $5,200 $4,057 2Q 2022 S
Slide 13: 2Q 2023 Segment Recap
2Q 2023 Segment Recap STRONG GROWTH AND OPERATIONAL PERFORMANCE DESPITE SIGNIFICANT FX/COMM HEADWINDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE OP INCOME2 REVENUE OP INCOME2 39%1 +$168 21%1 61% $138 $3,679 $1,532 $3,039 $392 $1,026 $243 ($30) 2Q 22 2Q 2
Slide 14: Updated 2023 Macro Overview
Updated 2023 Macro Overview IMPROVED VEHICLE PRODUCTION OUTLOOK; ADJUSTING FOR CURRENT FX AND COMMODITY RATES GLOBAL NORTH AMERICA EUROPE CHINA 37% of Revenue3 31% of Revenue3 22% of Revenue3 Adjusted Adjusted Adjusted Adjusted Production2 Production2 Production2 Production2 Growth1 Growth1 Growth1
Slide 15: 2023 Guidance
2023 Guidance UPDATING FULL YEAR GUIDANCE Fav / (Unfav) ($ Millions, except per share amounts) FY 2023 vs Prior Year FY 2023 COMMENTS REPORTED REVENUE $2,611 • Vehicle production 3-4%4 $19,950 – 20,250 Adj. Growth %1 | Growth Over Market1 ~12% | ~9% • FY GoM: AS&UX ~12%, S&PS ~8% EBITDA2 $2,755 – 2,
Slide 16: 2023 Outlook Versus Prior Guidance
2023 Outlook Versus Prior Guidance REFLECTS HIGHER VOLUMES AND UPDATED MACRO ASSUMPTIONS REVENUE ADJUSTED OPERATING INCOME1 $ Millions $ Millions, % of Sales ~($30) ~($100) ~$200 ~$220 ~$170 ~$35 10.6% ~$730 10.5% $20,100 $2,125 $19,000 $2,000 Prior Guide Sales Net Price & Foreign Current Guide Prio
Slide 17: Summary
Summary CONTINUED EXECUTION DRIVING SUSTAINABLE VALUE CREATION STRONG UNDERLYING BUSINESS PERFORMANCE • Robust growth across our safe, green and connected portfolio • Strong new business awards securing future revenue growth over market IMPROVED MACRO SITUATION • Increase in global vehicle productio
Slide 18: Appendix
» APPENDIX
Slide 19: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2Q 2023 YTD 2023 Reported net sales % change 28% 22% Less: foreign currency exchange and commodities (1%) (2%) Less: acquisitions 4% 4% Adjusted revenue growth 25% 20% 2Q 2023 YTD 2023 Reported Revenue Growth 28% 22% Signal And Power Solutions Reported Revenue Growth 21% 1
Slide 20: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2Q 2023 2Q 2022 YTD 2023 YTD 2022 Net income (loss) attributable to Aptiv 242 (45) 404 44 Interest expense 72 56 139 99 Other (income) expense, net (11) 25 (10) 64 Income tax expense 30 16 64 37 Equity loss, net of tax 73 72 155 135 Net income
Slide 21: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 2Q 2023 2Q 2022 YTD 2023 YTD 2022 Net income (loss) attributable to Aptiv 242 (45) 404 44 Interest expense 72 56 139 99 Income tax expense 30 16 64 37 Net income (loss) attributable to noncontrolling interest 4 (27) 7 (26) Net loss attribut
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) 2Q 2023 2Q 2022 YTD 2023 YTD 2022 Net income (loss) attributable to ordinary shareholders 229 (61) 375 12 Mandatory convertible preferred share dividends 13 16 29 32 Net income (loss) attributable to Aptiv 242 (4
Slide 23: Shares Outstanding
Shares Outstanding (millions) 2Q 2023 2Q 2022 YTD 2023 YTD 2022 Weighted average ordinary shares outstanding, basic 272.69 270.93 271.86 270.86 Dilutive shares related to RSUs 0.08 - 0.11 0.25 Weighted average ordinary shares outstanding, including dilutive shares 272.77 270.93 271.97 271.11 Weighte
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 935 Interest expense 285 Other income, net (40) Income tax expense 180 Equity loss, net of tax 300 Net income attributable to noncontrolling interest (a) 20 Operating income 1,680 Am
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 935 Interest expense 285 Income tax expense 180 Net income attributable to noncontrolling interest (a) 20 Depreciation and amortization 920 EBITDA 2,340 Other income, net (40) Equity loss, net
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 905 Mandatory convertible preferred share dividends 30 Net income attributable to Aptiv 935 Adjusting items: Amortization 240 Restructuring 130
Slide 27: Aptiv
“APTIV: