Slide 1: Second Quarter 2020 Earnings Call
July 30, 2020 DRAFT v10 APTIV Second 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: Our People, Our Communities, Our Customers
OUR PEOPLE OUR COMMUNITIES OUR CUSTOMERS By operating as One Aptiv, we are committed The Aptiv Foundation has donated to the Our effective and rapid deployment of Aptiv to living our values and protecting the health GlobalGiving COVID-19 Relief Fund, which is Safety Protocols resulted in successful
Slide 4: Navigated Through The Crisis
Navigated Through The Crisis STRONGER THAN EXPECTED SECOND QUARTER PERFORMANCE; 11 PTS OF GROWTH OVER MARKET 2Q 2020 FINANCIALS 2Q 2020 PRODUCTION 2H 2020 OUTLOOK REVENUE $2.0B (54%) GLOBAL VEHICLE (10-15%) GLOBAL DOWN 43% PRODUCTION 1 VEHICLE PRODUCTION1 EBITDA LOSS $49M CONTINUED MACRO +6% CHINA V
Slide 5: Executing On Our Strategy
Executing On Our Strategy DESPITE CONTINUED CHALLENGING MACRO ENVIRONMENT, PROVING THROUGH-CYCLE RESILIENCY OPERATING SAFELY RELENTLESSLY FOCUSED LESSONS LEARNED WITH COVID ON EXECUTION DURING THE PANDEMIC STRONG COLLABORATION 100% OF SITES OPERATING WITH APTIV’S SAFETY PROTOCOLS ~ 15% HIGHER LAUNCH
Slide 6: Winning Across the Portfolio
Winning Across the Portfolio YEAR-TO-DATE BOOKINGS REFLECT NEAR-TERM GLOBAL IMPACT OF COVID-19 BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS $22.0B $22.1B ENCOMPASSES OUR DEEP LEVERAGES OUR HERITAGE AS A $18.9B $19.3B EXPERTISE IN CEN
Slide 7: Safe, Green & Connected Megatrends Remain Intact
Safe, Green & Connected Megatrends Remain Intact NEAR DOUBLING OF ADDRESSABLE MARKET OPPORTUNITIES IN THE NEXT 5 YEARS TOTAL ADDRESSABLE MARKET ($ Billions) $170 PORTFOLIO ALIGNED TO GROWTH ADDRESSABLE MARKET Strong underlying market growth in our core businesses driven by Safe, Green and Connected
Slide 8: Strengthening Leadership Positions
Strengthening Leadership Positions COMPETITIVE MOAT CONTINUES TO EXPAND ACTIVE SAFETY ELECTRIFICATION CONNECTIVITY CAPITALIZING ON $17B+ MARKET IN 2025, 20%+ HIGH VOLTAGE 75% CONNECTED VEHICLE SAFE, GREEN AND GROWING FROM $9B TODAY PENETRATION BY 2025 PENETRATION BY 2025 • Clear leader in • Global l
Slide 9: Leveraging Aptiv's Full-Stack Capabilities
Leveraging Aptiv’s Full-Stack Capabilities SOFTWARE-DEFINED VEHICLE REALIZED AND ENABLED BY APTIV’S SMART VEHICLE ARCHITECTURE (SVA™) VEHICLE IS BECOMING A APTIV EMPOWERING CUSTOMERS TO ENABLING VALUE CAPTURE ACROSS SOFTWARE-DEFINED PLATFORM DELIVER SCALABLE, FLEXIBLE SOLUTIONS THE ENTIRE TECHNOLOGY
Slide 10: Sustainable by Design
Sustainable by Design FLEXIBLE AND SUSTAINABLE BUSINESS DRIVING CONTINUED OUTPERFORMANCE AND LONG-TERM VALUE CREATION RIGOROUS FOCUS ON EXECUTION REVENUE DIVERSIFICATION Disciplined revenue growth with balanced customer, region, platform and end market mix INDUSTRY LEADING GROWTH PORTFOLIO Robust ne
Slide 11: 2Q 2020 vs. 2Q 2019
2Q 2020 vs. 2Q 2019 ($ millions, except per share amounts) COMMENTS 2Q 2020 2Q 2019 REPORTED REVENUE $1,960 $3,627 • Vehicle production down (54%) Adjusted Growth %1 | Growth Over Market (43%) | 11% 4% | 9% • AS&UX Up 7% GoM, S&PS Up 12% GoM • Approximately EBITDA breakeven at sales EBITDA2 ($49) $5
Slide 12: 2Q 2020 Revenue
2Q 2020 Revenue GROWTH OVER MARKET ACROSS ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) (43%) Adj1 11% GoM N. AMERICA EUROPE CHINA2 (64%) Adj (51%) Adj 14% Adj ($1,535) 4% GoM 11% GoM 8% GoM $3,627 ($79) ($53) $1,960 2Q 2019 Volume FX / Comm Price 2Q 2020 1. Rev
Slide 13: 2Q 2020 Segment Recap
2Q 2020 Segment Recap SEGMENT REVENUES OUTPACED UNDERLYING VEHICLE PRODUCTION ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 REVENUE EBITDA2 (47%)1 (42%)1 (129%) (101%) $2,585 $1,050 $1,435 $472 $530 $154 2Q 2019 2Q 2020 ($45) 2Q 2019 2Q 2020 ($4) 2Q
Slide 14: Flexible and Sustainable Operating Model
Flexible and Sustainable Operating Model MORE SUSTAINABLE BUSINESS, IMPROVED THROUGH-CYCLE RESILIENCY DIVERSIFIED IMPROVED DISCIPLINED REVENUE GROWTH COST STRUCTURE CAPITAL ALLOCATION BALANCED ACROSS PLATFORMS, RELENTLESS FOCUS ON DRIVING FOCUSED ON VALUE ENHANCING CUSTOMERS AND REGIONS OPERATIONAL
Slide 15: 2020 Macro Overview
2020 Macro Overview NARROWED GLOBAL PRODUCTION OUTLOOK, RUN-RATE UNCERTAINTY REMAINS GLOBAL NORTH AMERICA EUROPE CHINA Aptiv Aptiv Aptiv Aptiv Outlook Outlook Outlook Outlook 1H20 (37%) 1H20 (40%) 1H20 (40%) 1H20 (20%) 2H20 (10-15%) 2H20 (6-11%) 2H20 (12-17%) 2H20 (8-13%) FY20 ~(25%) FY20 ~(25%) FY2
Slide 16: Balance Sheet Strength
Balance Sheet Strength STRONG LIQUIDITY PROFILE POSITIONS APTIV FOR UNCERTAIN MACRO ENVIRONMENT; FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES STRONG CASH POSITION DEBT & LIQUIDITY INVESTMENTS FOR GROWTH $ Billions $ Billions MAKING INVESTMENTS TO OPTIMIZE HOW WE OPERATE
Slide 17: Summary
Summary ROBUST BUSINESS MODEL AND STRATEGY EXECUTION IMPROVING THROUGH-CYCLE RESILIENCY CONSISTENT EXECUTION OF STRATEGY • Alignment to safe, green and connected megatrends provides a tailwind for above-market growth • Focus on operational execution with COVID-19 strengthens ability to flawlessly de
Slide 18: Appendix
» APPENDIX
Slide 19: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2Q 2020 YTD 2020 Reported net sales % change (46%) (28%) Less: foreign currency exchange and commodities (3%) (2%) Less: divestitures and other, net -% -% Adjusted revenue growth (43%) (26%) Reflective of management estimates due to integration of businesses 2Q 2020 YTD 20
Slide 20: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks 2Q 2020 YTD 2020 ($ millions) Revenue OI Adj Revenue OI Adj 2Q 2019: Signal And Power Solutions 2,585 337 5,147 620 Volume, net of contractual price reductions (1,083) (511) (1,256) (594) FX and commodities (67) 1 (126) (8) Operational performance - 35 - 71 O
Slide 21: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2020 2Q 2019 YTD 2020 YTD 2019 Net (loss) income attributable to Aptiv (366) 274 1,206 514 Interest expense 44 43 87 81 Other expense (income), net 6 (6) 7 (22) Income tax (benefit) expense (14) 31 (4) 64 Equity loss (income), net of tax 18 (4) 16 (7) Ne
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2020 2Q 2019 YTD 2020 YTD 2019 Net (loss) income attributable to Aptiv (366) 274 1,206 514 Interest expense 44 43 87 81 Other expense (income), net 6 (6) 7 (22) Income tax (benefit) expense (14) 31 (4) 64 Equity loss (income), net of tax 18 (4) 16 (7) Ne
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 2Q 2020 2Q 2019 YTD 2020 YTD 2019 Net (loss) income attributable to ordinary shareholders (369) 274 1,203 514 Mandatory Convertible Preferred Share dividends 3 - 3 - Net (loss) income attributable to Aptiv (366) 274 1,206 514 Adjus
Slide 24: Shares Outstanding
Shares Outstanding (millions) 2Q 2020 2Q 2019 YTD 2020 YTD 2019 Weighted average ordinary shares outstanding, basic 258.03 257.02 256.77 258.04 Dilutive shares related to RSUs 0.18 0.24 0.25 0.36 Weighted average MCPS Converted Shares 3.14 0.00 1.57 0.00 Adjusted weighted average ordinary shares out
Slide 25: Aptiv
“APTIV: