Aptiv Plc · NYSE:APTV
Aptiv — UniCredit Automotive Credit Conference 2022
20 slides from Aptiv's conference presentation, Jun 22, 2022
Slide 1: UniCredit Automotive Credit Conference 2022
June 22, 2022 APTIV UniCredit Automotive Credit Conference 2022 Jane Wu Vice President, Corporate Development Treasurer Evan Goss Senior Manager, Investor Relations
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, includi
Slide 3: Aptiv Today
Aptiv Today 2021 FINANCIAL PERFORMANCE LEADING PORTFOLIO ALIGNED WITH INDUSTRY MEGATRENDS… $ Billions SAFE GREEN CONNECTED A FUTURE WITH A FUTURE WITH A FUTURE WITH SEAMLESS ZERO ACCIDENTS ZERO EMISSIONS CONNECTIVITY $15.6 REVENUE …ENABLING THE FUTURE OF MOBILITY $2.0 EBITDA1 LEADING ADAS TOP HV SIG
Slide 4: Operating in a Challenging Environment
Operating in a Challenging Environment PROACTIVELY MANAGING THROUGH SUPPLY CHAIN DISRUPTIONS ACTIONS TAKEN MACRO FACTORS STRUCTURAL COST ACTIONS IMPLEMENTED WHILE CONTINUING TO CONSUMER DEMAND REMAINS STRONG INVEST IN GROWTH INITIATIVES ONGOING SUPPLY CHAIN DISRUPTIONS REENGINEERING PRODUCTS TO MITI
Slide 5: Aptiv Business Segments
Aptiv Business Segments ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS ADVANCED SAFETY & USER EXPERIENCE SIGNAL & POWER SOLUTIONS ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED LEVERAGES OUR HERITAGE AS A GLOBAL ARCHITECTURE & COMPUTING PLATFORMS, ADVANCED SAFETY SYSTEMS AND CO
Slide 6: Proactive Portfolio Actions
Proactive Portfolio Actions Jan 2022 (signed) SMART PORTFOLIO ENHANCEMENTS HAVE HELPED POSITION APTIV FOR SUCCESS Nov 2021 Aug 2020 May 2019 Dec 2021 Jun 2018 Nov 2017 Apr 2021 Jun 2015 Oct 2014 Thermal Dec 2015 Jul 2015 Mar 2020 Oct 2018 Nov 2015 Nov 2019 IPO Dec 2017 AUTOMATED DRIVING 2011 POWERTR
Slide 7: 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 8: Aptiv Sustainability
Aptiv Sustainability INTEGRAL TO PRODUCTS WE CREATE AND WAY WE DO BUSINESS 7 UniCredit Automotive Credit Conference | June 22, 2022 | Aptiv
Slide 9: Operating Sustainably
Operating Sustainably CLIMATE COMMITMENTS ALIGNED TO OUR CORE MISSION 2040 CARBON NEUTRAL 2025 COMPANY REDUCE CARBON Manufacture Carbon Neutral Products by 2039 EMISSIONS BY 25% 2030 Decrease Scope 1 & 2 CO2 Emissions CARBON NEUTRAL OPERATIONS Source 100% Renewable Energy Globally APTIV’S ROAD TO CA
Slide 10: Financial Track Record & Performance
FINANCIAL TRACK RECORD & PERFORMANCE
Slide 11: Strengthening Credit Profile Over Time
Strengthening Credit Profile Over Time PROACTIVE PORTFOLIO MANAGEMENT AND EQUITY OFFERING POSITION APTIV FOR CONTINUED GROWTH 2012 2015 2021 S&PS 43% S&PS 53% AS&UX 17% S&PS 74% PRODUCT PORTFOLIO POWERTRAIN 30% AS&UX 18% AS&UX 26% POWERTRAIN 29% THERMAL 10% GROWTH OVER MARKET (1)% +5% +15% Reported
Slide 12: Relentless Cost Structure Optimization
Relentless Cost Structure Optimization STRONG OPERATING LEVERAGE DRIVEN BY FLEXIBLE AND EFFICIENT COST STRUCTURE FLEXIBLE IMPROVED COST ADJUSTED EBITDA BUSINESS MODEL STRUCTURE BREAKEVEN • Flexible business model funds growth • Continued rollout of standardized processes • Relentless focus on drivin
Slide 13: Increasing Cash Flow Generation
Increasing Cash Flow Generation SUSTAINABLE BUSINESS MODEL CONVERTING MORE INCOME TO CASH STRATEGIC FRAMEWORK OPERATING CFBF1 & CASH ✓ Quality, not quantity, growth with the right CASH FLOW CONVERSION2 customers and platforms ($M) ($M) 106% ✓ Leveraging industry-leading operating model to drive effi
Slide 14: Capital Deployment Track Record
Capital Deployment Track Record CASH DEPLOYMENT FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD M&A TRACK RECORD PURCHASE SYNERGY CASH RETURNED MERGERS & PRICE REVENUE ACHIEVED TO SHAREHOLDERS ACQUISITIONS ~35% ~30% $4.3B $360M N/
Slide 15: Well-Laddered Debt Maturity Profile
Well-Laddered Debt Maturity Profile NO NEAR-TERM MATURITIES UNTIL 2025 DEBT MATURITY PROFILE OUTSTANDING DEBT • ~17 years weighted average debt maturity 2.396% Sr Notes 3.10% Sr Notes $700 $1,500 • 3.1% weighted average rate • 0.4x Net Debt / EBITDA (3.3x Debt / EBITDA)1 4.15% Sr Notes 1.50% Euro Sr
Slide 16: Summary
Summary APTIV AT THE INTERSECTION OF AUTO 2.0 TRENDS, WHILE EXECUTION DRIVES RECOVERY OUTPERFORMANCE PORTFOLIO PERFECTLY POSITIONED • Alignment to safe, green and connected megatrends provides a tailwind for above-market growth • Proactive portfolio management and equity offering position Aptiv for
Slide 17: Aptiv Overview
Aptiv Overview
Slide 18: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2021 2015 2012 Net income attributable to Aptiv 590 1,450 1,077 Interest expense 150 127 136 Income tax expense 101 263 212 Net income attributable to noncontrolling interest 19 85 83 Income from discontinued operations, net of tax - (274) - Depreciation an
Slide 19: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2021 Cash flows from operating activities: Net income 609 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 773 Restructuring expense, net of cash paid (56) Working capital (408) Pension contribu
Slide 20: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2015 Cash flows from operating activities: Income from continuing operations 852 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 344 Restructuring expense, net of cash paid (16) Working capital