Slide 1: Fourth Quarter 2020 Earnings Call
February 3, 2021 APTIV Fourth Quarter 2020 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 STRONG FINISH TO 2020 AND SUSTAINED GOM DESPITE THE ONGOING CHALLENGING ENVIRONMENT REVENUE $4.2B $13.1B 4Q up 14% FY down 9% +10% GoM EBITDA GROWTH ABOVE MARKET DESPITE LOWER VEHICLE $678M $1.6B PRODUCTION 4Q Margins of 16.1% FY Margins of 12.4% OPERATING INC
Slide 4: 2021 Outlook
2021 Outlook WELL-POSITIONED FOR CONTINUED RECOVERY OUTPERFORMANCE DESPITE NEAR-TERM CHALLENGES RECOVERY UNDERWAY INDUSTRY CHALLENGES REMAIN SUSTAIN ABOVE MARKET GROWTH COVID OPERATIONAL CHALLENGES ~6% growth over market attributed to secular growth drivers Inefficiencies associated with operating w
Slide 5: Executing On Our Strategy
Executing On Our Strategy STRENGTHENING BUSINESS FOUNDATION WHILE CAPITALIZING ON NEXT WAVE OF GROWTH 2020 VALIDATED INVESTMENT THESIS CONSISTENT MARKET OUTGROWTH LEADING PORTFOLIO OF ACCELERATED EV/AV ADVANCED TECHNOLOGIES OPPORTUNITIES ON THE PATH TO FULL SVA™ • Consistent market outperformance de
Slide 6: Winning Across the Portfolio
Winning Across the Portfolio STRONG 2020 BOOKINGS REFLECTING RAMP UP OF AWARD ACTIVITY BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY ACTIVE SAFETY $8.1 & USER EXPERIENCE $7.5 $6.1 $6.5 $ 4.7B IN 2020 $ 3.7B IN 2020 $5.5 $5.0 ~$20B SINCE 20181 ~$12B SINCE 20181 $4.6 $4.4 $4.3 $
Slide 7: Innovation In Motion
Innovation In Motion ENABLING THE ELECTRIFIED, SOFTWARE-DEFINED VEHICLES OF THE FUTURE SMART VEHICLE ARCHITECTURE™ (SVA™): LATEST INNOVATIONS NEXT-GEN ADAS ENHANCING VEHICLE ARCHITECTURE • Open and scalable ADAS platform enables the software-defined Aptiv’s approach to supporting customers’ electrif
Slide 8: Motional: Aptiv / Hyundai Joint Venture
Motional: Aptiv / Hyundai Joint Venture MAKING DRIVERLESS VEHICLES A SAFE, RELIABLE AND ACCESSIBLE REALITY APTIV’S HYUNDAI’S COMMERCIAL LEADERSHIP EXPERTISE IN LEADERSHIP • Ridesharing industry’s driverless tech of choice AUTOMOTIVE TECHNOLOGY + IN VEHICLE MANUFACTURING • Powering the largest robota
Slide 9: 4Q 2020 vs. 4Q 2019
4Q 2020 vs. 4Q 2019 ($ Millions, except per share amounts) 4Q 2020 Fav / (Unfav) COMMENTS REPORTED REVENUE $616 • Vehicle production up 1% $4,212 • AS&UX Up 6% GoM, S&PS Up 16% GoM Adjusted Growth %1 | Growth Over Market 14% | 13% EBITDA2 $678 $112 • ~($30M) of COVID-related operating costs EBITDA M
Slide 10: 4Q 2020 Revenue
4Q 2020 Revenue STRONGER THAN EXPECTED VOLUME ACROSS ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted Growth1 | Growth Over Market (GoM) 14% Adj 1 13% GoM N. AMERICA EUROPE CHINA2 $124 ($74) 11% Adj 20% Adj 9% Adj $566 11% GoM 19% GoM 4% GoM $4,212 $3,596 4Q 2019 Volume FX / Comm Price 4Q 202
Slide 11: 4Q 2020 Segment Recap
4Q 2020 Segment Recap SEGMENT REVENUES OUTPACED UNDERLYING VEHICLE PRODUCTION ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 REVENUE EBITDA2 7%1 17%1 (1%) 17% $1,121 $3,101 $1,034 $2,571 $515 $165 $163 $441 4Q 2019 4Q 2020 4Q 2019 4 4Q 2020 4Q 2019 4
Slide 12: 2021 Macro Overview
2021 Macro Overview GLOBAL VEHICLE PRODUCTION UP 10%; SUPPLY CHAIN CHALLENGES EXPECTED TO ABATE 2H’2021 Adjusted Growth At The Midpoint of Guidance1 • • • NORTH AMERICA 35% of Revenue; Copper: 3.20 EUROPE 34% of Revenue; EUR: 1.18 CHINA 22% of Revenue; CNY: 6.75 FY 2021 FY 2021 FY 2021 • Further res
Slide 13: 2021 Guidance
2021 Guidance CONFIDENT IN FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2021 GUIDANCE FY 2020 FY 2021 COMMENTS REPORTED REVENUE $15,125 – 15,725 $13,066 • Vehicle production up 10% Adj. Growth %1 | Growth Over Market ~16% | ~6% (9%) | 10% • AS&UX Up 13% GoM, S&PS Up 4% GoM EBITDA2 $2,
Slide 14: Aptiv Business Segments
Aptiv Business Segments INDUSTRY LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS 2021 GUIDANCE ADVANCED SAFETY & SIGNAL & POWER USER EXPERIENCE SOLUTIONS ADVANCED SAFETY & Up ~13% GoM1 Up ~4% GoM1 USER EXPERIENCE REVENUE EBITDA MARGIN2 ~$4.4B ~13% 2021 REVE
Slide 15: 2019 vs. 2021 Business Drivers
2019 vs. 2021 Business Drivers RECOVERING 2019 MARGIN LEVELS IN 2021 DESPITE ONGOING OPERATIONAL INEFFICIENCIES REVENUE1 EBITDA2 $ Millions $ Millions, % of Sales ~$180 2% Price ~$300 Declines 2% Price Declines 25% Restructuring ~($180) Conversion Savings: $100M FX / Comm: (10%) ($40M) 15.4-15.7% 15
Slide 16: Cash Flow Generation
Cash Flow Generation SUSTAINABLE BUSINESS MODEL CONVERTING MORE INCOME TO CASH OPERATING CASH FLOW 2021 KEY DRIVERS $ Billions, Free Cash Flow Conversion1 100%+ RESTRUCTURING CASH OUTFLOWS Restructuring activity reflects further footprint rationalization 86% DISCIPLINED CAPITAL EXPENDITURES $ Capita
Slide 17: Summary
Summary INNOVATION AND EXECUTION DRIVING RECOVERY OUTPERFORMANCE CONTINUED RECOVERY OUTPERFORMANCE Well-positioned for continued recovery outperformance despite near-term challenges STRONG EXECUTION ON STRATEGY Advancing our vision by strengthening our business foundation and seeding next wave of gr
Slide 18: Appendix
» APPENDIX
Slide 19: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 4Q 2020 2020 Reported net sales % change 17% (9%) Less: foreign currency exchange and commodities 3% -% Less: divestitures and other, net -% -% Adjusted revenue growth 14% (9%) Reflective of management estimates due to integration of businesses 4Q 2020 2020 Reported Revenu
Slide 20: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 4Q 2020 2020 ($ millions) Revenue OI Adj Revenue OI Adj 4Q 2019: Signal And Power Solutions 2,571 304 10,302 1,274 Volume, net of contractual price reductions 428 160 (768) (451) FX and commodities 102 (13) (12) (26) Operational performance - (47) - 32 Other
Slide 21: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2020 4Q 2019 2020 2019 Net income attributable to Aptiv 299 230 1,804 990 Interest expense 39 41 164 164 Other (income) expense, net (6) 15 - (14) Income tax expense 55 30 49 132 Equity loss (income), net of tax 43 (3) 83 (15) Net income attributable to
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2020 4Q 2019 2020 2019 Net income attributable to Aptiv 299 230 1,804 990 Interest expense 39 41 164 164 Other (income) expense, net (6) 15 - (14) Income tax expense 55 30 49 132 Equity loss (income), net of tax 43 (3) 83 (15) Net income attributable to
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 4Q 2020 4Q 2019 2020 2019 Net income attributable to ordinary shareholders 283 230 1,769 990 Mandatory Convertible Preferred Share dividends 16 - 35 - Net income attributable to Aptiv 299 230 1,804 990 Adjusting items: Restructurin
Slide 24: Shares Outstanding
Shares Outstanding (millions) 4Q 2020 4Q 2019 2020 2019 Weighted average ordinary shares outstanding, basic 270.03 255.31 263.43 256.81 Dilutive shares related to RSUs 0.88 1.05 0.44 0.58 Weighted average MCPS Converted Shares 12.37 - 6.83 - Adjusted weighted average ordinary shares outstanding, inc
Slide 25: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 917 Interest expense 154 Other expense, net 29 Income tax expense 166 Equity loss, net of tax 223 Net income attributable to noncontrolling interest 15 Operating income 1,504 Restructuring 95 Other acquisition
Slide 26: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 20211 Net income attributable to Aptiv 917 Interest expense 154 Other expense, net 29 Income tax expense 166 Equity loss, net of tax 223 Net income attributable to noncontrolling interest 15 Operating income 1,504 Depreciation and amortization 785
Slide 27: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 20211 Net income attributable to ordinary shareholders 854 Mandatory Convertible Preferred Share dividends 63 Net income attributable to Aptiv 917 Adjusting items: Restructuring 95 Other acquisition and portfolio project c
Slide 28: Aptiv
“APTIV: