Slide 1: First Quarter 2020 Earnings Call
May 5, 2020 DRAFT v10 APTIV First 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: 1Q 2020 Earnings | May 5, 2020 | Aptiv
3 1Q 2020 Earnings | May 5, 2020 | Aptiv
Slide 4: Strong Execution of Our Business Model
Strong Execution of Our Business Model BUILDING AMORE SUSTAINABLE BUSINESS AND HELPING US MANAGE THROUGH COVID-19 OUR FLEXIBLE AND SUSTAINABLE BUSINESS MODEL... fo) INDUSTRY LEADING GROWTH PORTFOLIO re) IMPROVED COST STRUCTURE re) REVENUE DIVERSIFICATION fe) BALANCE SHEET STRENGTH 4 1Q 2020 Earnings
Slide 5: Navigating Through Unprecedented Times
Navigating Through Unprecedented Times STRONG FIRST QUARTER EXECUTION DESPITE CHALLENGING ENVIRONMENT; SECOND QUARTER, FULL YEAR LACKING VISIBILITY AROUND TIMING AND PACE OF RECOVERY 1Q 2020 FINANCIALS 1Q 2020 PRODUCTION CURRENT ENVIRONMENT REVENUE $3.2B (20%) APTIV WEIGHTED GLOBAL VEHICLE GLOBAL VE
Slide 6: Decisive Actions Taken to Enhance Financial Flexibility
Decisive Actions Taken to Enhance Financ $600M OF TARGETED CASH SAVINGS IN 2020 PRODUCTION & i SUPPLY CHAIN COST REDUCTION ro) ACTIONS CAPITAL ° PRESERVATION BALANCE SHEET PROFILE & LIQUIDITY SAFELY RESUMING OPERATIONS t 6 1Q 2020 Earnings | May 5, 2020| Aptiv APTIV ACTIONS Shutdown facilities in Ch
Slide 7: Safety and Restart Protocols
Safety and Restart Protocols COLLABORATING AT ALL LEVELS IS MORE IMPORTANT THAN EVER Aptiv’s Safe Operations Protocols OUR • IMPLEMENTING APTIV’S SAFE OPERATIONS PROTOCOLS1 ACROSS OUR 140+ SITES EMPLOYEES • 22K EMPLOYEES WORKING REMOTELY OUR • SHARING OF SAFETY PROTOCOLS AND OPERATIONAL BEST PRACTIC
Slide 8: 2020 Vehicle Production Outlook
2020 Vehicle Production Outlook STEEP DECLINE EXPECTED, RECOVERY UNCERTAIN = oy CURRENT EXPECTATIONS KEY APTIV ASSUMPTIONS: 2020 GLOBAL LVP BY QUARTER: - ~ APTIV WEIGHTED MARKET ASSUMPTIONS. = © nw Ox FY20°GLOBALLVP (20-30%) eae eee * Initial restart planned for mid-April and now os od extended to m
Slide 9: Innovating Through the Disruption
Innovating Through the Disruption COMPETITIVE MOAT EXPANDS AS KEY INVESTMENTS FOR GROWTH CONTINUE 1Q 2020 HIGHLIGHTS CAPITALIZING ON ACTIVE SAFETY (AS USER EXPERIENCE SAEE, GREEN Gg © program launch with key best-in-class Integrated Cockpit Critical Satellite Architecture ~ Y) First tranche oflaunch
Slide 10: Delivering For Our Key Stakeholders
Delivering For Our Key Stakeholders KEEPING OUR EMPLOYEES SAFE AND MEETING OUR CUSTOMER NEEDS CREATES VALUE FOR ALL STAKEHOLDERS © OUR PEOPLE ® OUR CUSTOMERS ~ OUR SHAREHOLDERS Prioritizing the safety of our employees, their Working closely with our customers and Managing change proactively and fami
Slide 11: 1Q 2020 vs. 1Q 2019
1Q 2020 vs. 1Q 2019 ($ millions, except per share amounts) COMMENTS 1Q 2020 Fav / (Unfav) REPORTED REVENUE ($349) • Vehicle production down (20%) $3,226 • AS&UX Up 11% GoM, S&PS Up 13% GoM Adjusted Growth %1 | Growth Over Market (7%) | 13% EBITDA2 $411 ($107) • Lower volume, partially offset by favo
Slide 12: 1Q 2020 Revenue
1Q 2020 Revenue GROWTH OVER MARKET ACROSS ALL REGIONS REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) (7%) Adj 1 13% GoM N. AMERICA EUROPE CHINA2 (8%) Adj 2% Adj (31%) Adj 3% GoM 22% GoM 17% GoM ($279) ($70) $3,575 $3,226 1Q 2019 Vol / Price FX / Comm 1Q 2020 1. Revenue growt
Slide 13: 1Q 2020 Earnings
1Q 2020 Earnings EARNINGS REFLECT LOWER VEHICLE PRODUCTION, PARTIALLY OFFSET BY INITIAL COST ACTIONS EBITDA1 OPERATING INCOME1 EPS1 $ Millions, % of Sales $ Millions, % of Sales Earnings per share $ • Lower global vehicle production • Lower global vehicle production • Unfavorable operating income im
Slide 14: 1Q 2020 Segment Recap
1Q 2020 Segment Recap SEGMENT REVENUES OUTPACED UNDERLYING VEHICLE PRODUCTION ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS $ Millions $ Millions REVENUE EBITDA2 REVENUE EBITDA2 (9%)1 (7%)1 (42%) (12%) $145 $41 EBITDA, Ex $1,023 $84 Mobility Inv $2,562 $414 $902 Mobility $2,330 $364 $37
Slide 15: Liquidity & Capital Preservation
Liquidity & Capital Preservation STRONG LIQUIDITY PROFILE POSITIONS APTIV FOR UNCERTAIN MACRO ENVIRONMENT LIQUIDITY UPDATE LIQUIDITY & CASH CREDIT UPDATE $ Billions CONSERVATION ACTIONS EXTENDED AND AMENDED TARGETED CASH SAVINGS OF $600M CREDIT AGREEMENT • Covers existing Revolving Credit Facility (
Slide 16: Summary
Summary APTIV WILL EMERGE MORE RESILIENT AND UNITED IN OUR MISSION STRONG 1Q DESPITE UNPRECEDENTED DECLINES IN VEHICLE PRODUCTION * Maintained strong growth over market * Implemented decisive actions to preserve liquidity and increase financial flexibility INNOVATING AND LEADING THROUGH THE DISRUPTI
Slide 17: Appendix
» APPENDIX
Slide 18: 2020 Macro Overview
2020 Macro Overview EXPECTING GLOBAL PRODUCTION DOWN (20-30%) IN 2020 GLOBAL NORTH AMERICA EUROPE CHINA Aptiv Aptiv Aptiv Aptiv Outlook Outlook Outlook Outlook 1Q20 (20%) 1Q20 (11%) 1Q20 (20%) 1Q20 (48%) 2Q20 (50-60%) 2Q20 (50-60%) 2Q20 (50-60%) 2Q20 (25-35%) FY20 (20-30%) FY20 (20-30%) FY20 (20-30%
Slide 19: Summary of Aptiv SAFE Operations Protocols
Summary of Aptiv SAFE Operations Protocols Click here to view Aptiv’s Global COVID-19 Pandemic Plan • Crisis Management Team at executive level and Emergency Response Teams at sites POLICY / • 1 MANAGEMENT • • Regular reporting (site preparedness, confirmed / suspected cases) and identification of h
Slide 20: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 1Q 2020 Reported net sales % change (10%) Less: foreign currency exchange and commodities (2%) Less: divestitures and other, net (1%) Adjusted revenue growth (7%) Reflective of management estimates due to integration of businesses 1Q 2020 Reported Revenue Growth (10%) Sign
Slide 21: YoY Revenue And Adj. OI By Segment Walks
YoY Revenue And Adj. OI By Segment Walks ($ millions) Revenue OI Adj 1Q 2019: Signal And Power Solutions 2,562 283 Volume, net of contractual price reductions (173) (83) FX and commodities (59) (9) Operational performance - 36 Other - (2) 1Q 2020: Signal And Power Solutions 2,330 225 1Q 2019: Advanc
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 Net income attributable to Aptiv 1,572 240 Interest expense 43 38 Other expense (income), net 1 (16) Income tax expense 10 33 Equity income, net of tax (2) (3) Net (loss) income attributable to noncontrolling interest (5) 5 Operating income
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 1Q 2020 1Q 2019 Net income attributable to Aptiv 1,572 240 Interest expense 43 38 Other expense (income), net 1 (16) Income tax expense 10 33 Equity income, net of tax (2) (3) Net (loss) income attributable to noncontrolling interest (5) 5 Operating income
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 1Q 2020 1Q 2019 Net income attributable to Aptiv 1,572 240 Adjusting items: Restructuring 28 26 Other acquisition and portfolio project costs 14 11 Deferred compensation related to nuTonomy acquisition 4 11 Gain on business divesti
Slide 25: Shares Outstanding
Shares Outstanding (millions) 1Q 2020 1Q 2019 Weighted average ordinary shares outstanding, basic 255.51 259.08 Dilutive shares related to RSUs 0.32 0.47 Weighted average ordinary shares outstanding, including dilutive shares 255.83 259.55 25 1Q 2020 Earnings | May 5, 2020 | Aptiv
Slide 26: “APTIV:
“APTIV: