Slide 1: Fourth Quarter 2019 Earnings Call
January 30, 2020 APTIV Fourth Quarter 2019 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: Revenue, EBITDA, Operating Income and EPS Highlights
REVENUE $3.6B $144B "7 4Qup 2% | FY up 4% EBITDA $566M $2.3B ig 4Q Margins of 15.7% FY Margins of 15.7% BALANCED 2020 OUTLOOK: @ FOCUSED ON OPERATIONAL EXECUTION DESPITE ONGOING MARKET HEADWINDS OPERATING INCOME $388M $1.5B =] 4Q Margins of 10.8% FY Margins of 10.8% @ L—e +7 9%) cROWTH-OVER-MARKET R
Slide 4: Through-Cycle Resiliency
Through-Cycle Resiliency MORE SUSTAINABLE BUSINESS, ABLE TO OUTPERFORM IN ANY ENVIRONMENT 2019 MILESTONES ro) REVENUE ) 44% REVENUES FROM NON-AUTO MARKETS, DIVERSIFICATION 0 UP FROM 8% IN 2017 INDUSTRY LEADING ) $22.1B _ Reconoz01s800Knes: ~O GROWTH PORTFOLIO + REVENUE GROWTHFROM HIGH L 40% VOLTAGE
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio RECORD NEW BUSINESS AWARDS DESPITE GLOBAL PRODUCTION DECLINES BOOKINGS VS. GLOBAL PRODUCTION Lifetime gross program revenues, $ Billions IHS global vehicle production, Millions ADVANCED SAFETY SIGNAL & POWER & USER EXPERIENCE SOLUTIONS $22.0B $22.1B BOOKINGS BOOKINGS $18
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience DELIVERED 12% GROWTH OVER MARKET IN 2019; APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE NEXT GENERATION FEATURES AND FUNCTIONALITY 4Q 2019 HIGHLIGHTS 2019 STRATEGIC HIGHLIGHTS • Continued Growth Over Market: Up 11% YoY Full system solutio
Slide 7: Active Safety
Active Safety CUSTOMER AWARDS REFLECT SIGNIFICANT MARKET SHARE GAINS ADDRESSABLE MARKET BOOKINGS REVENUE $ Billions, % CAGR Lifetime gross program revenues, $ Billions $ Billions, % Adj Growth* LVL 3 LVL 2/2+ $6.5 LVL 0/4 2019 2022 2014 2015 2016 ©2017 2018 +2019 2020E 2018 2019 2020E 2022T Source:
Slide 8: Signal & Power Solutions
Signal & Power Solutions DELIVERED 8% GROWTH OVER MARKET IN 2019, DRIVEN BY NEW PROGRAM LAUNCHES, HIGH VOLTAGE PENETRATION AND END MARKET DIVERSIFICATION 4Q 2019 HIGHLIGHTS 2019 STRATEGIC HIGHLIGHTS • Ramp up of new launches and acquisition contributions accelerate growth Leader in increasingly comp
Slide 9: High Voltage Electrification
High Voltage Electrification CUSTOMER AWARDS AND HIGH GROWTH MARKET REFLECT SIGNIFICANT OPPORTUNITY ADDRESSABLE MARKET BOOKINGS REVENUE $ Billions, % CAGR Lifetime gross program revenues, $ Billions $ Billions, % Adj Growth’ PHEV Hybrid - Mild Hybrid - Full < $2.2 ~$0.5 Electric $0.7 $0.4 Y, 2019 20
Slide 10: Aptiv At CES 2020
Aptiv At CES 2020 .CES | SIGNIFICANT POSITIVE CUSTOMER FEEDBACK ON TECHNOLOGY AND FUTURE ENGAGEMENT 66 989 Pavilion Stakeholder Tours Visits 100+ 500+ Investor Gustomer Visits VIP Visits
Slide 11: 4Q 2019 Revenue Growth
4Q 2019 Revenue Growth STRONG GROWTH OVER MARKET IN EUROPE AND CHINA; NORTH AMERICA IMPACTED BY GM STRIKE REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 2% Adj 1 9% GoM N. AMERICA EUROPE CHINA3 $80 ($56) (1.5%) Price ($64) (9%) Adj2 8% Adj 11% Adj Declines 0% GoM 14% GoM 12%
Slide 12: 4Q 2019 Earnings
4Q 2019 Earnings EBITDA, OPERATING INCOME AND EPS AT OR ABOVE HIGH-END OF GUIDANCE EBITDA1 OPERATING INCOME1 EPS1 $ Millions, % of Sales $ Millions, % of Sales Earnings per share $ • Includes GM strike impact of ($80M) vs ($105M) guide • +$13M versus midpoint of guidance • +$0.15 versus midpoint of
Slide 13: Advanced Safety & User Experience
Advanced Safety & User Experience DOUBLE DIGIT GROWTH OVER MARKET AND CONTINUED INVESTMENTS TO SUPPORT FUTURE GROWTH REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • Active Safety Revenue Up 23% in 4Q19 • 4Q GM strike impact of ~($11M); (80) bps of margin
Slide 14: Signal & Power Solutions
Signal & Power Solutions STRONG GROWTH OVER MARKET DRIVEN BY NEW LAUNCHES AND END MARKET DIVERSIFICATION REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • High Voltage Revenue Up 28% in 4Q19 • 4Q GM strike impact of ~($69M); (180) bps of margin • 4Q GM stri
Slide 15: 2020 Macro Overview
2020 Macro Overview EXPECTING GLOBAL PRODUCTION DOWN (3%) IN 2020 EUROPE 33% of Revenue Adjusted Growth At The Midpoint of Guidance 1 FY 2019 | 1Q 2020 | FY 2020 • Continued strong take rates in 8% | 6% | 8% Active Safety and High Voltage NORTH AMERICA 38% of Revenue Aptiv • Uncertainty from introdu
Slide 16: 2020 Guidance
2020 Guidance PRUDENT OUTLOOK GIVEN MACRO HEADWINDS $ millions, except per share amounts 1Q 20203 FY 20203 COMMENTS REPORTED REVENUE $3,470 - 3,570 $14,500 - 14,900 • 1Q GoM: AS&UX Up ~5%, S&PS Up ~6% Adj Growth %1 | Growth Over Market ~1% | ~6% ~4% | ~7% • FY GoM: AS&UX Up ~7%, S&PS Up ~6% EBITDA2
Slide 17: 2020 Business Drivers: AS&UX
2020 Business Drivers: AS&UX OUTLOOK REFLECTS STRONG REVENUE GROWTH AND ENHANCED COMPETITIVE POSITION IN ACTIVE SAFETY REVENUE EBITDA OPERATING INCOME $ Billions Excluding Mobility Investments, % of Sales Excluding Mobility Investments, % of Sales ~7% 10 bps (180) bps GoM Volume, net of 12% +20 bps
Slide 18: 2020 Business Drivers: S&PS
2020 Business Drivers: S&PS OUTLOOK REFLECTS STRONG SECULAR GROWTH DRIVERS AND OPERATING LEVERAGE REVENUE EBITDA OPERATING INCOME $ Billions % of Sales % of Sales +60 bps ~6% +50 bps +30 bps GoM (10) bps Performance, 18.6% +60 bps 13.2% 8% Sales Growth GoM net of Performance, 17.6% FX / Comm Volume,
Slide 19: 2020 Business Drivers: Aptiv
2020 Business Drivers: Aptiv FULL YEAR OUTLOOK REFLECTS THROUGH-CYCLE RESILIENCY REVENUE1 OPERATING INCOME2 $ Millions, Growth Over Market % $ Millions, % of Sales ~7% GoM ($234) ~4% $15 ~33% (10) bps ~2% Price ($137) Adj Growth1 Conversion (60) bps 11.5% $714 Declines 4% - Adj Growth1 10.8% +100 bp
Slide 20: Balanced Capital Deployment
Balanced Capital Deployment ~ FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT-OPPORTUNITIES 2018-2019 Capital Deployment Long Term Capital Allocation Priorities M&A AND SHARE REPURCHASES DRIVING GROWTH DIVIDENDS 45%-55% 0, 0, » Organic reinvestment to support active safety, infotainment
Slide 21: Summary
Summary DELIVERED STRONG 2019 RESULTS * Growth over market with strength from both AS&UX and S&PS * Flexible business model delivering robust EPS growth despite macro headwinds BALANCED 2020 OUTLOOK » Strong growth over market continues despite slower vehicle production * Relentless focus on improvi
Slide 22: Appendix
» APPENDIX
Slide 23: 2019 vs. 2018 Full Year Results
2019 vs. 2018 $ millions, except per share amounts COMMENTS FY 2019 Fav / (Unfav) REPORTED REVENUE ($78) • Vehicle production down (5%) $14,357 • AS&UX 12% GoM, S&PS 8% GoM Adjusted Growth %1 | Growth Over Market 4% | 9% EBITDA2 $2,254 (6%) • GM strike impact of ($110M) EBITDA Margin | Ex F/X and Co
Slide 24: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 4Q 2019 2019 Reported net sales % change (1%) (1%) Less: foreign currency exchange and commodities (2%) (4%) Less: divestitures and other, net (1%) (1%) Adjusted revenue growth 2% 4% Reflective of management estimates due to integration of businesses 4Q 2019 2019 Reported
Slide 25: YoY Revenue and OI Adj. By Segment Walks
YoY Revenue and OI Adj. By Segment Walks 4Q 2019 2019 ($ millions) Revenue OI Adj Revenue OI Adj 4Q 2018: Signal And Power Solutions 2,600 341 10,402 1,424 Volume, net of contractual price reductions 25 (37) 256 (151) FX and commodities (54) (1) (356) (52) Operational performance - 37 - 94 Other - (
Slide 26: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2019 4Q 2018 2019 2018 Net income attributable to Aptiv 230 247 990 1,067 Interest expense 41 37 164 141 Other expense (income), net 15 25 (14) (2) Income tax expense 30 42 132 250 Equity income, net of tax (3) (6) (15) (23) Net income attributable to no
Slide 27: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2019 4Q 2018 2019 2018 Net income attributable to Aptiv 230 247 990 1,067 Interest expense 41 37 164 141 Other expense (income), net 15 25 (14) (2) Income tax expense 30 42 132 250 Equity income, net of tax (3) (6) (15) (23) Net income attributable to no
Slide 28: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 4Q 2019 4Q 2018 2019 2018 Net income attributable to Aptiv 230 247 990 1,067 Adjusting items: Restructuring 30 9 148 109 Other acquisition and portfolio project costs 26 21 71 78 Asset impairments - 32 11 34 Deferred compensation r
Slide 29: Shares Outstanding
Shares Outstanding (millions) 4Q 2019 4Q 2018 2019 2018 Weighted average ordinary shares outstanding, basic 255.31 262.61 256.81 264.41 Dilutive shares related to RSUs 1.05 1.04 0.58 0.81 Weighted average ordinary shares outstanding, including dilutive shares 256.36 263.65 257.39 265.22 29 4Q 2019 E
Slide 30: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 1Q 20201 20201 Net income attributable to Aptiv 163 1,097 Interest expense 46 171 Other expense (income), net 5 (3) Income tax expense 24 172 Equity (income) loss, net of tax (3) 88 Net income attributable to noncontrolling interest 4 19 Operating
Slide 31: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 1Q 20201 20201 Net income attributable to Aptiv 163 1,097 Interest expense 46 171 Other expense (income), net 5 (3) Income tax expense 24 172 Equity (income) loss, net of tax (3) 88 Net income attributable to noncontrolling interest 4 19 Operating
Slide 32: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 1Q 20201 20201 Net income attributable to Aptiv 163 1,097 Restructuring 67 140 Other acquisition and portfolio project costs 5 20 Deferred compensation related to nuTonomy acquisition 4 16 Tax impact of adjusting items (a)
Slide 33: Aptiv
“APTIV: