Slide 1: First Quarter 2024 Earnings Call
May 2, 2024 APTIV First Quarter 2024 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: First Quarter Highlights
First Quarter Highlights STRONG FIRST QUARTER EARNINGS AS COST ACTIONS OFFSET MACRO HEADWINDS REVENUE $4.9B $12.8B 1Q BOOKINGS ACROSS PORTFOLIO OF 1Q up 2%1 INDUSTRY-LEADING ADVANCED TECHNOLOGIES EBITDA2 $720M +3% GROWTH OVER MARKET DESPITE HIGH VOLTAGE 1Q Margins of 14.7% SLOWDOWN IN NORTH AMERICA
Slide 4: 2024 Outlook
2024 Outlook STRONG OPERATING EXECUTION AND BENEFIT FROM COST ACTIONS OFFSET MACRO CHALLENGES NAVIGATING NEAR-TERM …WHILE STRENGTHENING APTIV’S HEADWINDS… FLEXIBLE BUSINESS MODEL WEAKER INDUSTRY BACKDROP WELL-POSITIONED ACROSS ALL POWERTRAINS Slowing demand for EVs and shifting customer mix Supporti
Slide 5: Bookings Update
Bookings Update ON TRACK TO REACH FULL YEAR BOOKINGS TARGET BOOKINGS Lifetime gross program revenues, $ Billions TARGET FY 2024 FY 2022 FY 2023 ~$35B ADVANCED SAFETY SIGNAL & POWER ~$34B & USER EXPERIENCE SOLUTIONS ~$32B $14.2 $13.9 BOOKINGS1 BOOKINGS1 $12.8 FY 2021 ~$24B $7.7 AS&UX $ 2.5B 1Q 2024 $
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience STRONG GROWTH IN ACTIVE SAFETY; COST ACTIONS CONTRIBUTING TO MARGIN IMPROVEMENT 1Q 2024 HIGHLIGHTS 1Q 2024 COMMERCIAL HIGHLIGHTS GROWTH DRIVERS1 JAPANESE OEMS • Active Safety bookings of $1.9B Additional radar awards with Japanese OEM for both North America and Asia
Slide 7: Emerging EV OEM Selects Gen 6 ADAS Platform
Emerging EV OEM Selects Gen 6 ADAS Platform PRODUCTIZED SOLUTION DELIVERING TURNKEY HANDS-FREE HIGHWAY AND URBAN ADAS OEM WILL LEVERAGE APTIV AND WIND RIVER’S FULL- HIGHLY COMPETITIVE AWARD DEMONSTRATES STACK, MODULAR PRODUCT OFFERINGS AND ROADMAP EXCEPTIONAL VALUE CREATED BY APTIV SOLUTION Cloud /
Slide 8: Signal & Power Solutions
Signal & Power Solutions COMMERCIAL TRACTION ACROSS INDUSTRIES; FURTHER COST ACTIONS TO OFFSET LABOR INFLATION 1Q 2024 HIGHLIGHTS 1Q 2024 COMMERCIAL HIGHLIGHTS GROWTH DRIVERS1 LOCAL CHINESE OEMS • Revenue Growth: 1% Strong traction with local China OEMs; bookings of more than $1B with key wins acros
Slide 9: Positioned To Win In Every Powertrain
Positioned To Win In Every Powertrain MAJORITY OF PORTFOLIO POWERTRAIN AGNOSTIC AND / OR FLEXIBLE TO ADAPT TO CONSUMER DEMAND INCREASING CPV WHILE LEVERAGING LONG-TERM TAILWIND FOR GROWTH; APTIV PORTFOLIO BROADLY COMMON / EXISTING CAPABILITIES CONSERVATIVE PENETRATION OUTLOOK POWERTRAIN AGNOSTIC Tot
Slide 10: Early 2024 Customer Event Outreach
Early 2024 Customer Event Outreach ENGAGING CUSTOMERS AND ECOSYSTEM PARTNERS ACROSS MULTIPLE GEOGRAPHIES AND END MARKETS MOBILE WORLD CONGRESS BEIJING AUTO SHOW Engaging telco customers on the benefits of Open RAN for 5G to Showcasing strong local leadership team and full system support new SW defin
Slide 11: 1Q 2024 vs. 1Q 2023
1Q 2024 vs. 1Q 2023 STRONG MARGIN IMPROVEMENT DRIVEN BY ONGOING COST ACTIONS ($ Millions, except per share amounts) 1Q 2024 Fav / (Unfav) COMMENTS • Strength in Active Safety offsetting lower UX REPORTED REVENUE $83 • S&PS growth including strong China performance $4,901 Adjusted Growth %1 | Growth
Slide 12: 1Q 2024 Revenue
1Q 2024 Revenue POSITIVE GROWTH OVER MARKET ACROSS REGIONS REVENUE REGIONAL GROWTH $ Millions 2% Adj 1 Adjusted Growth1 | Growth Over Market (GoM) 3% GoM N. AMERICA EUROPE CHINA2 $41 ($23) $65 2% Adj (1%) Adj 9% Adj 1% GoM 2% GoM 5% GoM $4,901 $4,818 1Q 2023 Sales Growth Net Price & Foreign 1Q 2024
Slide 13: 1Q 2024 AS&UX Recap
1Q 2024 AS&UX Recap STRONG YEAR-OVER-YEAR REVENUE GROWTH AND SIGNIFICANT MARGIN EXPANSION REVENUE OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • Growth over Market of 6% 146% • 1Q Active Safety growth of 24%; expecting FY 5%1 growth of ~20% 10.8% • Strength in Active Safet
Slide 14: 1Q 2024 S&PS Recap
1Q 2024 S&PS Recap SOLID EXECUTION DESPITE DECLINES IN HIGH VOLTAGE REVENUE REVENUE OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • Growth over Market of 2% 1%1 4% • Positive GoM despite (4%) decline in HV • Cost actions and operational initiatives largely offset unfavorabl
Slide 15: 2024 Macro Overview
2024 Macro Overview OUTLOOK REFLECTS LOWER VEHICLE PRODUCTION; ADJUSTMENTS TO KEY RATE ASSUMPTIONS GLOBAL NORTH AMERICA EUROPE CHINA 36% of Revenue2 34% of Revenue2 20% of Revenue2 Prior Prior Prior Prior FY 2024 2024 Guide FY 2024 2024 Guide FY 2024 2024 Guide FY 2024 2024 Guide ~5% 7% 9% 11% 2% 4%
Slide 16: 2024 Full Year Outlook
2024 Full Year Outlook UPDATING FULL YEAR OUTLOOK YoY Variance FY 2024 COMMENTS ($ Millions, except per share amounts) FY 2024 Fav / (Unfav) REPORTED REVENUE $20,850 – 21,450 $1,099 • Reduction in global vehicle production Adjusted Growth %1 | Growth Over Market • Long-term GoM framework of 6-8% 5%
Slide 17: Updated 2024 Outlook vs. Prior Guidance
Updated 2024 Outlook vs. Prior Guidance LOWERING VEHICLE PRODUCTION OUTLOOK, INCLUDING HIGH VOLTAGE REVENUE OPERATING INCOME1 $ Billions $ Billions, % of Sales ($0.4) $0.1 ($0.1) $0.15 11.8% ($0.1) ($0.0) ($0.1) 11.8% $21.6 $21.2 $2.55 $2.5 2024 Prior Guide Sales Growth Net Price & Foreign 2024 Upda
Slide 18: 1H vs. 2H 2024 Walk
1H vs. 2H 2024 Walk GROWTH IN 2H DRIVEN BY CUSTOMER LAUNCH ACTIVITY AND IMPROVED INDUSTRIAL GROWTH RELEVANT COMMENTARY REVENUE BRIDGE $ Billions • AS&UX growth driven primarily by ADAS launches on North America truck and SUV platforms, and launches $0.0 with local Chinese OEMs $0.1 ‒ Wind River seas
Slide 19: Motional Update
Motional Update MOTIONAL AGREEMENT REACHED; APTIV EQUITY INTEREST TO BE REDUCED FROM 50% TO 15% • JV partner Hyundai Motor Group to invest $475 million in Motional – reducing Aptiv’s common equity interest in Motional to ~44% • Further agreement between HMG and Aptiv: ‒ HMG to purchase 11% of Aptiv’
Slide 20: Strong Earnings Growth
Strong Earnings Growth EPS GROWTH OF 24% RELEVANT COMMENTARY EARNINGS PER SHARE $0.15 • 24% YoY earnings growth $0.31 ($0.59) • $600M capital returned to shareholders via share repurchases in Q1 $1.32 • Increased 2024 share repurchase target to $1.5B, up from $750M $6.05 • Benefit of reduction in Mo
Slide 21: Summary
Summary CONTINUED EXECUTION IN A CHALLENGING MARKET ENVIRONMENT SOLID 1Q EXECUTION • Strong commercial momentum and margin improvement • Continuing to proactively optimize cost structure, with focus on manufacturing footprint and rotation of engineering resources to best cost locations DYNAMIC MACRO
Slide 22: Appendix
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Slide 23: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 1Q 2024 Reported net sales % change 2% Less: foreign currency exchange and commodities -% Adjusted revenue growth 2% 1Q 2024 Reported Revenue Growth 2% Signal And Power Solutions Reported Revenue Growth 1% Advanced Safety And User Experience Reported Revenue Growth 5% Adju
Slide 24: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 1Q 2024 1Q 2023 Net income attributable to Aptiv 218 162 Interest expense 65 67 Other (income) expense, net (15) 1 Income tax expense 76 34 Equity loss, net of tax 69 82 Net income attributable to noncontrolling interest 6 3 Net loss attributab
Slide 25: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 1Q 2024 1Q 2023 Net income attributable to Aptiv 218 162 Interest expense 65 67 Income tax expense 76 34 Net income attributable to noncontrolling interest 6 3 Net loss attributable to redeemable noncontrolling interest - (1) Depreciation a
Slide 26: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 1Q 2024 1Q 2023 Net income attributable to ordinary shareholders 218 146 Mandatory convertible preferred share dividends - 16 Net income attributable to Aptiv 218 162 Adjusting items: Amortization 54 59 Restructu
Slide 27: Shares Outstanding
Shares Outstanding (millions) 1Q 2024 1Q 2023 Weighted average ordinary shares outstanding, basic 275.19 271.01 Dilutive shares related to RSUs 0.12 0.16 Weighted average ordinary shares outstanding, including dilutive shares 275.31 271.17 Weighted average MCPS Converted Shares (a) - 12.37 Adjusted
Slide 28: Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income
Non-US GAAP Financial Guidance Metrics: Adjusted Operating Income ($ millions) 20241 Net income attributable to Aptiv 1,240 Interest expense 250 Other income, net (50) Income tax expense 325 Equity loss, net of tax 245 Net income attributable to noncontrolling interest (a) 30 Operating income 2,040
Slide 29: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20241 Net income attributable to Aptiv 1,240 Interest expense 250 Income tax expense 325 Net income attributable to noncontrolling interest (a) 30 Depreciation and amortization 945 EBITDA 2,790 Other income, net (50) Equity loss, n
Slide 30: Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share
Non-US GAAP Financial Guidance Metrics: Adjusted NI Per Share ($ millions, except per share amounts) 20241 Net income attributable to Aptiv 1,240 Adjusting items: Amortization 220 Restructuring 160 Other acquisition and portfolio project costs 55 Compensation expense related to acquisitions 25 Tax i
Slide 31: Aptiv
“APTIV: