Aptiv Plc · NYSE:APTV
Aptiv — Q4 2021 Earnings Presentation
34 slides from Aptiv's earnings presentation, Feb 3, 2022
Slide 1: Fourth Quarter 2021 Earnings Call
February 3, 2022 APTIV Fourth Quarter 2021 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 includin
Slide 3: Fourth Quarter and Full Year Highlights
Fourth Quarter and Full Year Highlights RECORD REVENUE GROWTH OVER MARKET AND STRONG PERFORMANCE DESPITE CHALLENGING ENVIRONMENT REVENUE $4.1B $15.6B 4Q down 4% FY up 15% +15% FY GoM EXECUTING WELL DESPITE RECORD GROWTH OVER MARKET SUPPLY CHAIN DISRUPTIONS EBITDA BENEFITING FROM SAFE, GREEN AND MATE
Slide 4: Strengthening Leadership Positions
Strengthening Leadership Positions CAPITALIZING ON SAFE, GREEN AND CONNECTED MEGATRENDS SMART VEHICLE ARCHITECTURE (SVA™) ENABLING 2021 VALIDATION OF INDUSTRY LEADING THE ELECTRIFIED, SOFTWARE-DEFINED VEHICLE PORTFOLIO OF ADVANCED TECHNOLOGIES… ACTIVE SAFETY • Clear leader in perception systems and
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio RECORD NEW BUSINESS AWARDS OF $24 BILLION DRIVEN BY PORTFOLIO OF RELEVANT TECHNOLOGIES BOOKINGS Lifetime gross program revenues, $ Billions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS $8.1 FY 2019 FY 2020 $7.5 FY 2021 ENCOMPASSES OUR DEEP EXPERTISE LEVERAG
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience APPLYING EXPERTISE IN PERCEPTION SYSTEMS, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE SOFTWARE-DEFINED VEHICLES 4Q 2021 HIGHLIGHTS 4Q 2021 KEY AWARDS • Growth Over Market: 15% SCALABLE ACTIVE SAFETY SOLUTION • Continued Active Safety and next-gen DMS platform launche
Slide 7: Signal & Power Solutions
Signal & Power Solutions STRENGTHENING LEADERSHIP POSITION IN LOW AND HIGH VOLTAGE VEHICLE ARCHITECTURE SOLUTIONS 4Q 2021 HIGHLIGHTS 4Q 2021 KEY AWARDS • Growth Over Market: 10% EXTENSION FOR TRUCK & SUV LOW VOLTAGE • New HV program launches with emerging NA OEMs ELECTRICAL DISTRIBUTION SYSTEM • Rob
Slide 8: Wind River Acquisition
Wind River Acquisition ENABLES APTIV TO CAPITALIZE ON NEW GROWTH OPPORTUNITIES GLOBAL LEADER IN INTELLIGENT CONNECTED SYSTEMS World class management team and established platform offering a comprehensive edge-to-cloud portfolio and capabilities spanning the full intelligent system lifecycle UNLOCKIN
Slide 9: Aptiv Software Strategy
Aptiv Software Strategy ACCELERATING THE SOFTWARE-DEFINED FUTURE FULL LIFECYCLE MANAGEMENT ENHANCING …CREATING NEW VALUE FOR CAPABILITIES ACROSS THE SOFTWARE STACK… APTIV AND OUR CUSTOMERS DEVELOPMENT DEPLOYMENT CLOUD AND Cloud-native platform Managing updates to LEVERAGE CLOUD FOR OFFBOARD to accel
Slide 10: Aptiv 2022 CES Pavilion
Aptiv 2022 CES Pavilion INNOVATION IN MOTION TODAY’S TECHNOLOGY TOMORROW’S SOLUTIONS ONSITE VEHICLES WITH SIGNIFICANT APTIV CONTENT FULLY FUNCTIONING SVA™ DEMONSTRATION Industry leading feature-rich electrified vehicles with Aptiv Vehicle centerpiece showcasing SVA™ enhanced by our Continuous electr
Slide 11: 2022 Outlook
2022 Outlook SUSTAINABLE BUSINESS MODEL AND STRATEGY EXECUTION RESULTING IN CONSISTENT VALUE CREATION CONTINUED EXPANSION OF …RESULTING IN …DESPITE CONTINUED OUR COMPETITIVE MOAT… STRONG OUTPERFORMANCE INDUSTRY CHALLENGES PARTNER-OF-CHOICE EXPANDING MARKET SHARE COVID & SUPPLY CHAIN DISRUPTIONS Main
Slide 12: 4Q 2021 vs. 4Q 2020
4Q 2021 vs. 4Q 2020 ($ Millions, except per share amounts) 4Q 2021 4Q 2020 4Q 2021 COMMENTS REPORTED REVENUE $4,134 $4,212 • Vehicle production down 16%4 Adjusted Growth %1 | Growth Over Market (4%) | 12% 14% | 13% • AS&UX 15% GoM, S&PS 10% GoM • Margin expansion in high growth product lines EBITDA2
Slide 13: 4Q 2021 Revenue
4Q 2021 Revenue STRONG GROWTH OVER MARKET OFFSETTING 16% DECLINE IN GLOBAL VEHICLE PRODUCTION REVENUE REGIONAL GROWTH $ Millions Adjusted Growth1 | Growth Over Market (GoM) (4%) Adj 1 12% GoM N. AMERICA EUROPE CHINA $99 $0 (2%) Adj (14%) Adj 9% Adj 11% GoM 11% GoM 17% GoM ($695) $518 $4,212 $4,134 4
Slide 14: 4Q 2021 Segment Recap
4Q 2021 Segment Recap DOUBLE-DIGIT GOM IN BOTH SEGMENTS; ONGOING INDUSTRY CHALLENGES WEIGHING ON MARGINS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 OP INCOME2 REVENUE EBITDA2 OP INCOME2 (6%)1 (1%)1 (50%) (26%) (34%) (69%) $163 $1,121 $1,116 $3,10
Slide 15: 2022 Macro Overview
2022 Macro Overview EXPECTING FULL YEAR GLOBAL PRODUCTION UP 6% - WITH ROUGHLY FLAT PRODUCTION IN THE FIRST HALF GLOBAL NORTH AMERICA EUROPE CHINA 34% of Revenue2 33% of Revenue2 22% of Revenue2 FY 2022 • Production recovery FY 2022 • Continued strong truck FY 2022 • High take rates on FY 2022 • Con
Slide 16: 2022 Guidance
2022 Guidance CONFIDENT IN FULL YEAR OUTLOOK ($ Millions, except per share amounts) FY 2022 FY 2021 FY 2022 COMMENTS REPORTED REVENUE $17,750 – 18,150 $15,618 • Vehicle production up 6%4 Adj. Growth %1 | Growth Over Market 15% | 9% 15% | 15% • FY GoM: AS&UX Up ~19%, S&PS Up ~6% EBITDA2 $2,415 – 2,69
Slide 17: 2022 Business Drivers
2022 Business Drivers MARGIN EXPANSION DESPITE ONGOING INDUSTRY DISRUPTIONS REVENUE1 ADJUSTED EBITDA2 $ Millions $ Millions, % of Sales ~($65) ~($300) ~2% Price ~($300) ~$1,750 ~$100 Declines ~($265) ~$260 14.2% ~$760 8-10% GoM ~$950 12.8% +6% ~$17,950 ~$2,555 Production 24% YoY Incremental $2,001 $
Slide 18: A Closer Look at Wind River
A Closer Look at WORLD CLASS MANAGEMENT TEAM AND ESTABLISHED PLATFORM ACCELERATING THE SOFTWARE-DEFINED FUTURE 2022 OUTLOOK REVENUE1 $ Millions REVENUE GROWTH 12% - 15% GROSS MARGIN ~80% 10% CAGR EBITDA 20% - 22% $360 CASH FLOW CONVERSION2 ~90% Studio Subscription ADJUSTED EPS Neutral $300 LONG-TERM
Slide 19: Summary
Summary CONTINUE TO DELIVER SUSTAINABLE VALUE CREATION CONTINUED INVESTMENTS TO SUPPORT STRONG GROWTH OVER MARKET Investments to support customer production translating into revenue outperformance, record bookings and further expansion of competitive moat STRONG CUSTOMER PARTNERSHIPS LEADING TO NEW
Slide 20: Appendix
» APPENDIX
Slide 21: Appendix Table of Contents
Appendix Table of Contents SECTION SLIDE 2021 HISTORICAL BASIS • Full Year 2021 vs. Full Year 2020 22 • YoY Revenue Growth Metrics 23 • YoY Revenue And Adjusted Operating Income By Segment Walks 24 • Non-US GAAP Financial Metrics: Adjusted Operating Income 25 • Non-US GAAP Financial Metrics: Adjuste
Slide 22: Full Year 2021 vs. Full Year 2020
Full Year 2021 vs. Full Year 2020 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) ($ Millions, except per share amounts) FY 2021 FY 2020 FY 2021 COMMENTS REPORTED REVENUE $15,618 $13,066 • Vehicle production flat4 Adj. Growth %1 | Growth Over Market 15% | 15% (9%) | 10% • FY GoM: AS&UX Up 13%
Slide 23: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) 4Q 2021 2021 Reported net sales % change (2%) 20% Less: foreign currency exchange and commodities 2% 5% Less: divestitures and other, net -% -% Adjusted revenue growth (4%) 15% Reflective of management estimates due to
Slide 24: YoY Revenue And Adjusted OI By Segment Walks
YoY Revenue And Adjusted OI By Segment Walks 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) 4Q 2021 2021 ($ millions) Revenue OI Adj Revenue OI Adj 2020: Signal And Power Solutions 3,101 358 9,522 762 Volume, net of contractual price reductions (173) (68) 1,496 527 FX and commodities 97 (7)
Slide 25: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) ($ millions) 4Q 2021 4Q 2020 2021 2020 Net income attributable to Aptiv 31 299 590 1,804 Interest expense 36 39 150 164 Other expense (income), net 131 (6) 129 - Income tax expense (benefit) - 55 101 49
Slide 26: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) ($ millions) 4Q 2021 4Q 2020 2021 2020 Net income attributable to Aptiv 31 299 590 1,804 Interest expense 36 39 150 164 Income tax expense - 55 101 49 Net income attributable to noncontrolling inter
Slide 27: Non-US GAAP Financial Metrics: Adj NI Per Share
Non-US GAAP Financial Metrics: Adj NI Per Share 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) ($ millions, except per share amounts) 4Q 2021 4Q 2020 2021 2020 Net income attributable to ordinary shareholders 15 283 527 1,769 Mandatory convertible preferred share dividends 16 16 63 35 Net in
Slide 28: Shares Outstanding
Shares Outstanding 2021 HISTORICAL BASIS (INCLUDING AMORTIZATION EXPENSE) (millions) 4Q 2021 4Q 2020 2021 2020 Weighted average ordinary shares outstanding, basic 270.52 270.03 270.46 263.43 Dilutive shares related to RSUs 0.95 0.88 0.76 0.44 Weighted average MCPS Converted Shares - - - 6.83 Weighte
Slide 29: Recast: Adjusted Operating Income
Recast: Adjusted Operating Income 2021 RECAST (EXCLUDING AMORTIZATION EXPENSE) ($ millions) 2021 Net income attributable to Aptiv 590 Interest expense 150 Other expense, net 129 Income tax expense 101 Equity loss, net of tax 200 Net income attributable to noncontrolling interest 19 Operating income
Slide 30: Recast: Adjusted Net Income Per Share
Recast: Adjusted Net Income Per Share 2021 RECAST (EXCLUDING AMORTIZATION EXPENSE) ($ millions, except per share amounts) 2021 Net income attributable to ordinary shareholders 527 Mandatory convertible preferred share dividends 63 Net income attributable to Aptiv 590 Adjusting items: Amortization 14
Slide 31: Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income
Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income 2022 NEW BASIS (EXCLUDING AMORTIZATION EXPENSE) ($ millions) 20221 Net income attributable to Aptiv 1,024 Interest expense 133 Other expense, net 4 Income tax expense 188 Equity loss, net of tax 279 Net income attributable to noncontr
Slide 32: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA 2022 NEW BASIS (EXCLUDING AMORTIZATION EXPENSE) ($ millions) 20221 Net income attributable to Aptiv 1,024 Interest expense 133 Income tax expense 188 Net income attributable to noncontrolling interest 10 Depreciation and amortization 815 EBITDA
Slide 33: Non-US GAAP Financial Guidance Metrics: Adjusted Net Income Per Share
Non-US GAAP Financial Guidance Metrics: Adjusted Net Income Per Share 2022 NEW BASIS (EXCLUDING AMORTIZATION EXPENSE) ($ millions, except per share amounts) 20221 Net income attributable to ordinary shareholders 961 Mandatory convertible preferred share dividends 63 Net income attributable to Aptiv
Slide 34: Aptiv closing slide
“APTIV: