Aptiv Plc · NYSE:APTV
Aptiv — UniCredit Automotive Credit Conference 2020
28 slides from Aptiv's conference presentation, Jun 25, 2020
Slide 1: UniCredit Automotive Credit Conference 2020
June 25, 2020 APTIV UniCredit Automotive Credit Conference 2020 Elena Rosman Jane Wu Vice President, Investor Relations Vice President, Corporate Development Treasurer
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: Aptiv Today
Aptiv Today 2019 FINANCIAL PERFORMANCE GLOBAL FOOTPRINT AND CAPABILITIES ($B) Aptiv is a global technology company, with more than 160,000 employees across 126 manufacturing facilities and 12 major technical centers worldwide. With a presence in $22.1 BOOKINGS 44 countries, we address mobility’s tou
Slide 4: Proactive Portfolio Actions
Proactive Portfolio Actions SMART PORTFOLIO ENHANCEMENTS HAVE POSITIONED APTIV TO THRIVE AQUISITIONS enhancing automated ACQUISITIONS increasing our scale driving & data management capabilities and leverage in engineered components at attractive valuations and presence in adjacent markets Jun 2018 N
Slide 5: Aptiv Business Segments
Aptiv Business Segments INDUSTRY LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED LEVERAGES OUR HERITAGE AS A GLOBAL ARCHITECTURE & COMPUTING PLATFORMS,
Slide 6: Robust Business Model
Robust Business Model LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ENABLING THE FUTURE OF MOBILITY SAFE GREEN CONNECTED A FUTURE WITH ZERO ACCIDENTS A FUTURE WITH ZERO EMISSIONS A FUTURE WITH SEAMLESS CONNECTIVITY PROVIDING END-TO-END SOLUTIONS WITH A CONSISTENT MANAGEMENT PHILOSOPHY THE BRAIN AND THE
Slide 7: Addressing Challenging Problems
Addressing Challenging Problems VEHICLE FATALITIES COMING DOWN EMISSIONS REGULATIONS BECOMING URBANIZATION AND CONSUMER GLOBALLY, BUT PASSIVE SAFETY AT ITS INCREASINGLY STRINGENT GLOBALLY TO EXPECTATIONS DRIVING DEMAND FOR LIMIT; ADVANCED SAFETY SOLUTIONS HELP IMPROVE AIR QUALITY AND REDUCE MORE INT
Slide 8: Acceleration of Safe, Green & Connected Megatrends
Acceleration of Safe, Green & Connected Megatrends ADVANCED TECHNOLOGIES ADDRESSING CUSTOMERS TOUGHEST CHALLENGES SAFE GREEN CONNECTED APTIV MISSION APTIV MISSION APTIV MISSION A SOCIETY THAT SEES ZERO FATALITIES, ZERO EMISSIONS: MINIMIZE THE VEHICLE’S SEAMLESS INTEGRATION BETWEEN THE CAR, ZERO INJU
Slide 9: Expanding Presence in Industrial Markets
Expanding Presence in Industrial Markets EVOLVING OUR LEADING PORTFOLIO OF ELECTRICAL ARCHITECTURE AND ELECTRONIC COMPONENT SOLUTIONS (~85% AUTO VS. ~15% CV / INDUSTRIAL) SAME MEGA TRENDS SAME DESIGN COMPETENCIES DIFFERENT PATHS TO MARKET Total Addressable Connectors Market ($ billions) SAFETY Incre
Slide 10: Rapidly Growing Addressable Markets
Rapidly Growing Addressable Markets LEVERAGING OUR STRENGTHS TO UNLOCK INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES BY 2025 TOTAL ADDRESSABLE MARKET ($ Billions) ~2.0x NEW & ADJACENT $50 MARKETS $170 $20 CV & DIVERSIFIED MARKETS ~1.5x AUTOMATED DRIVING $10 $120 $20 CONNECTED SERVICES & DATA HIGH VOL
Slide 11: Aptiv Performance Track Record
Aptiv Performance Track Record DISCIPLINED PORTFOLIO MANAGEMENT TRANSLATING INTO STRONGER FINANCIAL RETURNS 2012 2015 20191 S&PS 43% AS&UX 17% S&PS 53% S&PS 72% PRODUCT PORTFOLIO POWERTRAIN 30% AS&UX 18% AS&UX 28% THERMAL 10% POWERTRAIN 29% SYSTEMS NA 35% NA 38% NA 38% EMEA 41% EMEA 35% EMEA 33% REV
Slide 12: Balanced Across Platforms, Customers and Region
Balanced Across Platforms, Customers and Region 10 LARGEST PLATFORMS ARE WITH 8 DIFFERENT OEMs CUSTOMERS END MARKETS VW GM Non-Auto FCA Americas Truck/SUV Asia Ford Pass Car SAIC-GM Other PSA Asia Truck/SUV Geely Americas Pass Car Daimler Toyota Europe Tata Pass Car Europe Truck/SUV Note: Based on 2
Slide 13: Consistent Outperformance vs. the Market
Consistent Outperformance vs. the Market TRACK RECORD OF DELIVERING SIGNIFICANT GROWTH IN EXCESS OF VEHICLE PRODUCTION APTIV GROWTH OVER MARKET 1 GLOBAL NORTH AMERICA EUROPE CHINA 38% of Revenue 2 33% of Revenue 2 18% of Revenue 2 22% 18% 13% 13% 17% 16% 15% 17% 11% 13% 14% 12% 13% 12% 9% 9% 9% 9% 9
Slide 14: Global and Flexible Operating Model
Global and Flexible Operating Model WELL POSITIONED TO SEIZE OPPORTUNITIES WHILE MANAGING RISK FLEXIBLE IMPROVED COST ADJUSTED EBITDA BUSINESS MODEL STRUCTURE BREAKEVEN • Flexible business model funds growth • Continued rollout of standardized processes • Relentless focus on driving operational inve
Slide 15: Increasing Cash Flow Generation
Increasing Cash Flow Generation HIGHLY DISCIPLINED CAPITAL DEPLOYMENT RESULTS IN STRONG CASH FLOW CONVERSION EVEN IN MORE CHALLENGING MACRO ENVIRONMENT STRATEGIC FRAMEWORK OPERATING CASH FLOW CFBF1 & CASH CONVERSION2 ($M) ($M) • Quality, not quantity, growth with the right customers and platforms 85
Slide 16: Navigating Through Unprecedented Times
Navigating Through Unprecedented Times STRONG FIRST QUARTER EXECUTION DESPITE CHALLENGING ENVIRONMENT 1Q 2020 FINANCIALS 1Q 2020 PRODUCTION CURRENT ENVIRONMENT REVENUE $3.2B APTIV WEIGHTED GLOBAL VEHICLE PRODUCTION DOWN (7%) 13% GROWTH OVER MARKET 1 (20%) GLOBAL VEHICLE PRODUCTION • >(50%) 2Q produc
Slide 17: Decisive Actions to Enhance Financial Flexibility
Decisive Actions to Enhance Financial Flexibility RELENTLESS FOCUS TO ADDRESS MARKET CONDITIONS; $600M OF TARGETED ANNUAL CASH SAVINGS Disciplined and structured approach to Cash Conservation Actions ($M) Annualized right-sizing our cost structure: Suspension of Dividend $225 1 Employee Health & Saf
Slide 18: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile NO NEAR-TERM MATURITIES UNTIL 20241 AND INCREASED FLEXIBILITY FROM CREDIT AGREEMENT AMENDMENT DEBT MATURITY PROFILE CREDIT UPDATE 4.15% Sr Notes OUTSTANDING DEBT 1.50% Euro Sr Notes • ~9 years weighted average debt maturity Term Loan A $776 Extension 4.25% Sr Note
Slide 19: Actions to Further Enhance Financial Flexibility
Actions to Further Enhance Financial Flexibility RAISED NEW EQUITY CAPITAL TO ENHANCE FLEXIBILITY AND STRENGTHEN LONG-TERM FINANCIAL POSITION EQUITY ISSUANCE PRO FORMA LIQUIDITY RATING AGENCY FEEDBACK ($B) $2.3B IN GROSS PROCEEDS FROM DUAL-TRANCHE EQUITY OFFERING $4.4 Baa2 BBB ~$2.2B NET $1.15B COMM
Slide 20: Capital Deployment Track Record
Capital Deployment Track Record FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD M&A TRACK RECORD PURCHASE SYNERGY CASH RETURNED MERGERS & PRICE REVENUE ACHIEVED TO SHAREHOLDERS ACQUISITIONS ~40% ~30% $1.8B $750M 1.5x $526M $250M 1
Slide 21: Summary
Summary ROBUST BUSINESS MODEL AND EXECUTION MINDSET IMPROVING THROUGH-CYCLE RESILIENCY CONSISTENT EXECUTION OF STRATEGY • Alignment to safe, green and connected megatrends provides a tailwind for above-market growth • Relentless focus on continuous improvement and cost structure optimization • Proac
Slide 22: Aptiv Overview
Aptiv Overview
Slide 23: Appendix
» APPENDIX
Slide 24: Automated Driving Non-US GAAP Financial Metrics
Automated Driving Non-US GAAP Financial Metrics ($ millions) Total Aptiv - Reported 2019 Revenue 14,357 Adjusted EBITDA 2,254 Operating Cash Flow 1,624 Less Mobility JV Revenue 1 Adjusted EBITDA (151) Operating Cash Flow (152) Total Aptiv - Pro Forma Revenue 14,356 Adjusted EBITDA 2,405 Operating Ca
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 2019 Net income attributable to Aptiv 1,572 240 990 Interest expense 43 38 164 Other expense (income), net 1 (16) (14) Income tax expense 10 33 132 Equity income, net of tax (2) (3) (15) Net (loss) income attributable to noncontrolling inter
Slide 26: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 1Q 2020 1Q 2019 2019 Net income attributable to Aptiv 1,572 240 990 Adjusting items: Restructuring 28 26 148 Other acquisition and portfolio project costs 14 11 71 Asset impairments - - 11 Deferred compensation related to nuTonomy
Slide 27: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 2019 2015 2012 Net income attributable to Aptiv 1,572 240 990 1,450 1,077 Interest expense 43 38 164 127 136 Other expense (income), net 1 (16) (14) 88 (5) Income tax expense 10 33 132 263 212 Equity income, net of tax (2) (3) (15) (16) (27)
Slide 28: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics 1Q 2020 Reported net sales % change (10%) Less: foreign currency exchange and commodities (2%) Less: divestitures and other, net (1%) Adjusted revenue growth (7%) 28 UniCredit Automotive Credit Conference | June 25, 2020 | Aptiv