Slide 1: Fourth Quarter 2018 Earnings Call
January 31, 2019 APTIV Fourth Quarter 2018 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: Fourth Quarter And Full Year Highlights
Fourth Quarter And Full Year Highlights STRONG FINISH TO 2018; BALANCED 2019 OUTLOOK REVENUE $3.6B 4Q Up 8% $14.4B "| Full Year Up 10% OPERATING INCOME $430M 4Q Down (4%) $1.8B Full Year Up 10% EARNINGS PER SHARE $1.34 4Q Up 5% Note: Revenue growth excludes impact of foreign exchange, commodities an
Slide 4: 2018 Milestones
2018 Milestones SUSTAINABLE BUSINESS MODEL DELIVERING ON COMMITMENTS 1. Revenue growth excludes impact of foreign exchange, commodities and divestitures. 2. Bookings represent lifetime gross program revenues awarded, based upon expected volumes and pricing 3. Free Cash Flow Conversion = (Operating C
Slide 5: Winning Across the Portfolio
Winning Across the Portfolio RECORD $22B NEW BUSINESS AWARDS IN 2018 VERSUS $19B IN PRIOR YEAR BOOKINGS Lifetime gross program revenues, $ billions ADVANCED SAFETY $7.0 & USER EXPERIENCE $6.5 $ 8.0B $6.1 $5.1 $5.1 IN 2018 $4.4 $19B SINCE 20161 $3.8 $3.4 SIGNAL & POWER HIGH VOLTAGE ELECTRIFICATION SO
Slide 6: Advanced Safety & User Experience Highlights
Advanced Safety & User Experience Highlights DELIVERED 17% GROWTH OVER MARKET IN 2018 DRIVEN BY CONTINUED STRONG CONSUMER DEMAND FOR ACTIVE SAFETY AND INFOTAINMENT SOLUTIONS 2018 HIGHLIGHTS • 12% Revenue Growth in 4Q18; 17% FY CAGR Since 2015 • 6 new Central Compute programs awarded, reinforcing lea
Slide 7: Signal & Power Solutions Highlights
Signal & Power Solutions Highlights DELIVERED 7% GROWTH OVER MARKET IN 2018 DRIVEN BY NEW PROGRAM LAUNCHES AND FAVORABLE CONTRIBUTIONS FROM KUM AND WINCHESTER 2018 HIGHLIGHTS • 6% Revenue Growth in 4Q18; 5% FY CAGR Since 2015 • Strength in N. America offsetting Europe/China production declines • Str
Slide 8: 2019 Macro Overview
2019 Macro Overview EXPECTING GLOBAL PRODUCTION DOWN (2.5%) IN 2019 — FIRST HALF DOWN (4%) EUROPE | 32% of Revenue Adjusted Growth At The Midpoint of Guidance’ 1a FY * Growth in Eastern Europe T% | 9% offset by declines in W. Europe NORTHAMERICA — 39% of Revenue Aptiv | os Ae eee ae ‘9, 9 isruptions
Slide 9: Aptiv At CES 2019
1 Aptiv At CES 2019 HIGHLIGHTED ADVANCED TECHNOLOGIES WHICH HELP ADDRESS THE SAFE, GREEN AND CONNECTED MEGATRENDS, AND)MAKE THE FUTURE OF MOBILITY REAL ADVANCED ARCHITECTURES ENABLING NEW MOBILITY SOLUTIONS: El a | ADVANCED CLOUD ~£400\, DATA a Le 00110) SERVICES. | z IN-CABIN ADVANCED | © ADVANCED
Slide 10: 4Q18 vs. 4Q17
4Q18 vs. 4Q17 $ millions, except per share amounts COMMENTS 4Q 2018 Fav / (Unfav) REPORTED REVENUE $196 • (3%) vehicle production $3,636 • AS&UX 14% GoM, S&PS 9% GoM Adjusted Growth %1 | Growth Over Market 8% | 11% EBITDA2 $600 1% • Funding $42M Mobility investments EBITDA Margin | Ex F/X and Commod
Slide 11: 4Q 2018 Revenue Growth
4Q 2018 Revenue Growth STRONG GROWTH OVER MARKET IN EVERY REGION REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 8% Adj 1 11% GoM N. AMERICA EUROPE ($59) CHINA ($75) 18% Adj 4% Adj 16% GoM 8% GoM $330 (7%) Adj S. AMERICA 9% GoM $3,636 Flat Adj $3,440 9% GoM 4Q 2017 Vol Price
Slide 12: 4Q 2018 Operating Income
4Q 2018 Operating Income ACTUALS IN LINE WITH EXPECTATIONS OPERATING INCOME1 4Q PERFORMANCE HIGHLIGHTS $ Millions, % of Sales (4%) Adj 1 • 12.5% margin ex FX/Comm while 3% Ex FX / Comm funding Mobility Investments • Conversion on strong sales $55 ($59) • (1.7%) price downs ($13) 13.1% 30 bps (140) b
Slide 13: 4Q 2018 EPS Growth
4Q 2018 EPS Growth OPERATING INCOME TRANSLATES INTO ROBUST EPS GROWTH EPS1 4Q PERFORMANCE HIGHLIGHTS Earnings Per Share 5% Adj 1 • EPS Up 14% ex FX/Comm 14%Ex FX / Comm • 11.0% tax rate; 300 bps fav YoY $0.07 • $277M Share Repurchases 4Q $0.02 ($0.12) $0.05 $1.34 $0.04 $1.28 4Q 2017 FX/Comm Op Inc G
Slide 14: Advanced Safety & User Experience
Advanced Safety & User Experience CONTINUED DOUBLE DIGIT GROWTH; SUPPORTING MOBILITY INVESTMENTS REVENUE OPERATING INCOME2 2018 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales 4Q FY 4Q FY • FY Revenue growth Up 17% 170 • Active Safety Up 57% 17%1 10 bps 12%1 bps • Infotainment & UX Up 13% E
Slide 15: Signal & Power Solutions
Signal & Power Solutions STRONG GROWTH OVER MARKET DRIVEN BY NEW LAUNCHES REVENUE OPERATING INCOME2 2018 PERFORMANCE HIGHLIGHTS $ Millions $ Millions, % of Sales 4Q FY 4Q FY • FY 2018 Growth Over Market Up 7% 7%1 • High Voltage Electrification Up 62% 6%1 Flat (140) bps • Major new launches up 2x YoY
Slide 16: 2018 vs. 2017
2018 vs. 2017 $ millions, except per share amounts COMMENTS FY 2018 Fav / (Unfav) REPORTED REVENUE $1,551 • Vehicle production down (1%) $14,435 • AS&UX 17% GoM, S&PS 7% GoM Adjusted Growth %1 | Growth Over Market 9.6% | 10.3% EBITDA2 $2,393 12% • Continued EBITDA margin expansion EBITDA Margin | Ex
Slide 17: 2019 Business Drivers
2019 Business Drivers APTIV FINANCIAL STRATEGY REMAINS UNCHANGED <q COMMITMENT TO LONG-TERM FINANCIAL FRAMEWORK RELEVANT PORTFOLIO ALIGNED TO 6 KEY SECULAR GROWTH DRIVERS. FLEXIBLE AND EFFICIENT WORKFORCE é l& = INVESTMENTS TO SUPPORT ry, FUTURE GROWTH 2019 OP INCOME OUTLOOK Operating Income: $ Mill
Slide 18: 2019 Guidance
2019 Guidance PRUDENT OUTLOOK GIVEN MACRO HEADWINDS $ millions, except per share amounts 1Q 20193 FY 20193 COMMENTS REPORTED REVENUE $3,400 – 3,500 $14,600 – 15,000 • 1Q: AS&UX Up Low SD, S&PS Flat Adj Growth %1 | Growth Over Market ~1% | ~5% ~6% | ~8% • FY: AS&UX Up ~10%, S&PS Up Mid SD Pre Tariffs
Slide 19: Balanced Capital Deployment
Balanced Capital Deployment FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES 2018 Capital Deployment 19 4Q 2018 Eafnings | January 31, 2019 | Aptiv Long Term Capital Allocation Priorities M&A AND SHARE REPURCHASES rt ‘ DRIVING GROWTH 45%-55% Kf DIVIDENDS on 7 » Organic reinv
Slide 20: Summary
Summary DELIVERED STRONG 2018 RESULTS * Double-digit growth over market with strength from both AS&UX and S&PS » Flexible business model delivering robust EPS growth despite macro headwinds BALANCED 2019 OUTLOOK * Operational execution on new launches, M&A contributions / capital deployment * Pruden
Slide 21: “APTIV:
“APTIV:
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2018 4Q 2017 2018 2017 Net income attributable to Aptiv 247 256 1,067 1,355 Interest expense 37 37 141 140 Other expense (income), net 25 (1) (2) 21 Income tax expense 42 135 250 223 Equity income, net of tax (6) (7) (23) (31) Income from discontinued op
Slide 23: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 4Q 2018 4Q 2017 2018 2017 Net income attributable to Aptiv 247 256 1,067 1,355 Interest expense 37 37 141 140 Other expense (income), net 25 (1) (2) 21 Income tax expense 42 135 250 223 Equity income, net of tax (6) (7) (23) (31) Income from discontinued op
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 4Q 2018 4Q 2017 2018 2017 Net income attributable to Aptiv 247 256 1,067 1,355 Income from discontinued operations attributable to Aptiv, net of tax - (49) - (334) Income from continuing operations attributable to Aptiv 247 207 1,0
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics (millions) 4Q 2018 4Q 2017 2018 2017 Weighted average ordinary shares outstanding, basic 262.61 265.84 264.41 267.16 Dilutive shares related to RSUs 1.04 1.60 0.81 0.87 Weighted average ordinary shares outstanding, including dilutive shares 263.65 267.44 265.22 268.03 2
Slide 26: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 1Q 20191 20191 Net income attributable to Aptiv 213 1,246 Interest expense 36 145 Other income, net (5) (30) Income tax expense 36 215 Equity income, net of tax (5) (22) Net income attributable to noncontrolling interest 4 42 Operating income 279 1,596 Restruc
Slide 27: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 1Q 20191 20191 Net income attributable to Aptiv 213 1,246 Interest expense 36 145 Other income, net (5) (30) Income tax expense 36 215 Equity income, net of tax (5) (22) Net income attributable to noncontrolling interest 4 42 Operating income 279 1,596 Depreci
Slide 28: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 1Q 20191 20191 Net income attributable to Aptiv 213 1,246 Restructuring 35 87 Other acquisition and portfolio project costs 10 34 Deferred compensation related to nuTonomy acquisition 11 43 Tax impact of adjusting items (a) (8) (24) A