Aptiv Plc · NYSE:APTV
Aptiv — UniCredit Automotive Credit Conference 2018
21 slides from Aptiv's conference presentation, Jun 6, 2018
Slide 1: UniCredit Automotive Credit Conference 2018
June 6, 2018 Jim Holms Vice President, Treasurer APTIV UniCredit Automotive Credit Conference 2018
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: Business Model
Business Model FOUNDATIONAL ELEMENTS THAT DELIVER VALUE LEADING PORTFOLIO ALIGNED TO GLOBAL MEGATRENDS SAFE GREEN CONNECTED ZERO ACCIDENTS ZERO EMISSIONS SEAMLESS CONNECTIVITY BUILT ON A FOUNDATION OF: WITH A CONSISTENT MANAGEMENT PHILOSOPHY INNOVATION DISCIPLINED REVENUE GROWTH • 16,000 scientists
Slide 4: Addressing Mobility's Toughest Challenges
Addressing Mobility's Toughest Challenges PROVIDING END-TO-END SOLUTIONS THAT ENABLE THE COMMERCIALIZATION OF NEW MOBILITY SMART VEHICLE ARCHITECTURE SMART.MOBILITY SOLUTIONS SOFTWARE SENSING AND COMPUTING SIGNAL AND POWER DISTRIBUTION CONNECTIVITY ACTIVE SAFETY USER EXPERIENCE CONNECTED SERVICES AU
Slide 5: Increasing Need For Software & Systems Integration
Increasing Need For Software & Systems Integration NEW VEHICLE FEATURES, FUNCTIONALITY AND VALUE INCREASINGLY DEFINED BY SOFTWARE NEW MOBILITY SOLUTIONS BRAIN SAFE NERVOUS SYSTEM GREEN CONNECTED SERVICES CONNECTED ADVANCED ADVANCED ARCHITECTURES SOFTWARE 5 UniCredit Automotive Credit Conference | Ju
Slide 6: Diversification Strategy
Diversification Strategy BALANCED BUSINESS DIVERSIFIED ACROSS CUSTOMERS, PLATFORMS AND REGIONS CUSTOMERS END MARKETS GM VW Non-Auto Asia Americas FCA Pass Car Truck/SUV Ford Asia SAIC-GM Truck/SUV Other Americas Geely Pass Car Daimler PSA Europe Toyota Europe Pass Car Chang’an Truck/SUV 6 UniCredit
Slide 7: Segment Overview
Segment Overview RELEVANT PORTFOLIO, WELL POSITIONED FOR CONSISTENT ABOVE MARKET GROWTH 1. GoM: Growth over Market as defined by Aptiv weighted production. Long term targets last communicated on March 15, 2018 7 UniCredit Automotive Credit Conference | June 6, 2018 | Aptiv
Slide 8: Winning Across the Portfolio
Winning Across the Portfolio NEW BUSINESS AWARDS ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS 8 UniCredit Automotive Credit Conference | June 6, 2018 | Aptiv
Slide 9: Increasing Adoption Of Key Technologies
Increasing Adoption Of Key Technologies HIGH GROWTH BUSINESSES GAIN SCALE, DRIVE MARGIN EXPANSION Note: Long term targets last communicated on March 15, 2018 9 UniCredit Automotive Credit Conference | June 6, 2018 | Aptiv
Slide 10: New Addressable Markets
New Addressable Markets LEVERAGING OUR STRENGTHS TO UNLOCK MORE THAN $35 BILLION IN INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES BY 2025 Total Addressable Market ($ Billions) 3x $50+ AUTOMATED DRIVING • Active safety leading to autonomous driving; robust OEM level 3 solutions by 2025 $10+ • 2020 – 2
Slide 11: Investments Funded by Operating Performance
Investments Funded by Operating Performance RELENTLESSLY FOCUSED ON COST STRUCTURE; FUNDING NEW MOBILITY INVESTMENTS WITHIN FRAMEWORK OF LONG TERM TARGETS 2020+ 2018 • Key growth tech reaches scale OPERATING INCOME 14.0%-14.5% • Stranded costs eliminated $ Millions • Productivity initiatives • Funct
Slide 12: Flexible Operating Model
Flexible Operating Model WELL POSITIONED TO SEIZE OPPORTUNITIES WHILE MANAGING RISKS 2017 EBITDA BREAKEVEN SUMMARY + Additional volume Production volume decline vs. today’s levels OPPORTUNITIES + Operating leverage + Acquisitions ~45% sales reduction $12.9B - Lower industry volume ~$7.1B RISKS - For
Slide 13: Strong Balance Sheet
Strong Balance Sheet SUBSTANTIAL LIQUIDITY AND CONSERVATIVE LEVERAGE PROFILE ENABLES OPERATIONAL FLEXIBILITY CAPITALIZATION DEBT PROFILE LEVERAGE $ Billions Credit Rating: BBB / Baa2 / BBB Cash $1.3 Total Liquidity $3.7 8.0 years 3.0 % Total Debt $4.2 1.9x Weighted Weighted Average Average 1.3x Net
Slide 14: Consistent Cash Flow Generation
Consistent Cash Flow Generation HIGHLY DISCIPLINED CAPITAL DEPLOYMENT RESULTS IN STRONG CASH FLOW CONVERSION OPERATING CASH FLOW $ Billions ~12% CAGR? ~85% Conversion? 2017PF' Stranded/ Operational + 2020° One Time performance CAGRrepresents growth of operational cash flow only (Operating Gesh Flow
Slide 15: Capital Allocation Priorities
- Capital Allocation Priorities FOCUSED ON VALUE ENHANCING CAPITAL DEPLOYMENT OPPORTUNITI “Tr. LT M&A AND SHARE REPURCHASES 5%-55% DIVIDENDS 10%15% = » Maintain investment grade-ratings + Organic re-investment to drive apn and increase returns 1! gest Saior oe Bolt op eseduer ec auarand technology e
Slide 16: 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 17: 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 $500M 5% SYNERGY ACHIEVEMENT 1.5x 1.5x 1.0x 1.5x CAPAB
Slide 18: Summary
Summary GROWTHABOVE MARKET * Stable underlying market growth - Relevant portfolio aligned to safe, green and connected provides tail MARGIN EXPANSION * Relentless focus on cost management, productivity and continuous improvemen * Key growth businesses expand to maturity; scale driving higher operati
Slide 19: Appendix
UniCredit Automotive Credit Conference | June 6, 2018 | Aptiv
Slide 20: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2017 Net income attributable to Aptiv $1,355 Interest expense 140 Other (income) expense, net 21 Income tax expense 223 Equity income, net of tax (31) Income from discontinued operations, net of tax (365) Net income attributable to noncontrolli
Slide 21: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 20181 Net income attributable to Aptiv 1,131 Interest expense 138 Other (income) expense, net (37) Income tax expense 268 Equity income, net of tax (30) Net income attributable to noncontrolling interest 40 Operating income 1,510 Restructuring 147 Other acquis