Slide 1: Second Quarter 2024 Earnings Call
August 1, 2024 APTIV Second Quarter 2024 Earnings Call *Updated as of August 2, 2024 to make certain immaterial clarifying edits to industry mega trends
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: Second Quarter Overview
Second Quarter Overview RECORD EARNINGS DRIVEN BY STRONG OPERATING RESULTS REVENUE $5.1B $10.0B Revenue declined (2%)1; significant schedule reductions with select 2Q down (2%)1 YTD flat1 OEMs, partially offset by strong growth with Chinese local OEMs EBITDA2 $788M $1,508M Record earnings up +14%2;
Slide 4: Bookings Update
Bookings Update ON TRACK TO REACH FULL YEAR BOOKINGS TARGET OF $35B BOOKINGS Lifetime gross program revenues, $ Billions TARGET FY 2024 ~$35B FY 2023 ~$34B ADVANCED SAFETY SIGNAL & POWER FY 2022 ~$32B $17.1B & USER EXPERIENCE SOLUTIONS $14.2 $13.9 BOOKINGS BOOKINGS $12.8 $7.7 $ 3.4B1H 2024 $ 13.7B 1
Slide 5: Advanced Safety & User Experience
Advanced Safety & User Experience 2Q 2024 HIGHLIGHTS CUSTOMER AWARDS NEW BUSINESS AWARDS • ADAS awards with a Japanese Global and a Chinese Local OEM • Wind River awards across multiple markets, including auto in China CONQUEST AWARD WITH MAJOR JAPANESE OEM FOR LATEST GENERATION OF CORNER/SIDE RADAR
Slide 6: Wind River Update
Wind River Update STRONG COMMERCIAL MOMENTUM AND CONTINUED INNOVATION Customer awards and partnerships across multiple end markets New product innovation AEROSPACE & DEFENSE TELECOM Continued commercial traction with Wind River Studio Developer across end markets Certification Leading NA Services Te
Slide 7: Signal & Power Solutions
Signal & Power Solutions 2Q 2024 HIGHLIGHTS NEW BUSINESS AWARDS CUSTOMER AWARDS • Electrical architecture award with Chinese Local OEM for export vehicles and with a Global European CV OEM AWARD FOR MULTI-VOLTAGE ELECTRICAL ARCHITECTURE FOR HYDROGEN MOBILITY SOLUTIONS • Engineered Components conques
Slide 8: Engineered Components Update
Engineered Components Update STRENGTH ACROSS MULTIPLE END MARKETS ENHANCING THROUGH-CYCLE PERFORMANCE MARKET LEADER Leading provider of highly engineered, ruggedized and mission critical interconnect, AUTOMOTIVE & cable management and fastening solutions COMMERCIAL SPACE COMMERCIAL VEHICLE DIVERSIFI
Slide 9: Continued Confidence in the Megatrends
Continued Confidence in the Megatrends WORLD CONTINUES TO BECOME MORE ELECTRIFIED, CONNECTED AND SOFTWARE DEFINED GLOBAL TRENDS AUTOMOTIVE TRENDS ELECTRIFIED Democratization of ADAS continues Over 100 countries – representing 80% of SAFE global greenhouse gas emissions – have Adoption of advanced AD
Slide 10: Significantly Increasing Return of Capital to Shareholders
Significantly Increasing Return of Capital to Shareholders DRIVEN BY CONVICTION IN UNDERLYING TRENDS, CONFIDENCE IN EARNINGS AND CASH FLOW GROWTH New $5B share repurchase authorization ─ Represents over 25% of current market equity value1 $3B accelerated share repurchase program to be initiated imme
Slide 11: 2Q 2024 vs. 2Q 2023
2Q 2024 vs. 2Q 2023 RECORD QUARTERLY EARNINGS ($ Millions, except per share amounts) 2Q 2024 Fav / (Unfav) COMMENTS REPORTED REVENUE ($149) • Lower vehicle production at select customers $5,051 Adj. Growth %1 | Growth Over Market (2%) | (1%) • Strong Active Safety growth offset by High Voltage & UX
Slide 12: 2Q 2024 Revenue
2Q 2024 Revenue LOWER PRODUCTION VOLUMES AT SELECT CUSTOMERS REVENUE REGIONAL GROWTH $ Millions (2%) Adj 1 Adjusted Growth1 | Growth Over Market (GoM) (1%) GoM N. AMERICA EUROPE CHINA2 ($161) $54 ($42) (3%) Adj (2%) Adj 1% Adj (4%) GoM 4% GoM (3%) GoM $5,200 $5,051 2Q 2023 Sales Net Price & Foreign
Slide 13: 2Q 2024 AS&UX Recap
2Q 2024 AS&UX Recap QUARTERLY RECORD REVENUE AND EARNINGS REVENUE OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • Record quarterly revenues; Growth over Market of 3% 2%1 23% • 2Q Active Safety growth of 15%; expecting FY growth of ~20% 10.9% • User experience down 10%, Chin
Slide 14: 2Q 2024 S&PS Recap
2Q 2024 S&PS Recap STRONG MARGIN PERFORMANCE DESPITE REVENUE HEADWINDS REVENUE OPERATING INCOME2 RELEVANT COMMENTARY $ Millions $ Millions, % of sales • Electrical Distribution and HV product lines impacted by select customers 11% (3%)1 • Engineered Components growth driven by 12.4% strength in Comm
Slide 15: 2024 Macro Overview
2024 Macro Overview LOWERING VEHICLE PRODUCTION ESTIMATES ACROSS ALL REGIONS 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 ~1% ~5% 5% 9% ~Flat 2% (4%) 6% Aptiv1 Apt
Slide 16: 2024 Full Year Outlook
2024 Full Year Outlook LOWER GLOBAL VEHICLE PRODUCTION, INCREASED EARNINGS PER SHARE Fav / (Unfav) ($ Millions, except per share amounts) FY 2024 vs Prior Year FY 2024 COMMENTS REPORTED REVENUE $199 • Lower vehicle production at select customers $20,100 – 20,400 Adj. Growth %1 | Growth Over Market1
Slide 17: Disciplined Capital Deployment
Disciplined Capital Deployment CONFIDENCE IN LONG-TERM OUTLOOK DRIVING ACCELERATED RETURN OF CAPITAL TO SHAREHOLDERS SHARE REPURCHASE PROGRAM New $5B share repurchase authorization, representing over 25% of current market equity value1 $3B accelerated share repurchase program proceeding immediately
Slide 18: Strong Financial Condition
Strong Financial Condition ABILITY TO ACCELERATE RETURN TO SHAREHOLDERS FINANCIAL PERFORMANCE FINANCIAL POLICY TRACK RECORD OF BALANCED CAPITAL DEPLOYMENT • Increased manufacturing and engineering • Total liquidity1 $4.6B, cash and efficiency investments1 $2B+ CASH RETURNED MERGERS & TO SHAREHOLDERS
Slide 19: Conclusion
Conclusion STRONG Q2 FINANCIAL RESULTS Record earnings reflecting strong operating performance PRUDENT 2024 OUTLOOK Reflecting customers’ reduction in production schedules with incremental overlay of conservatism STRONG CONVICTION IN TRENDS TOWARDS ELECTRIFICATION, CONNECTIVITY AND DIGITIZATION Port
Slide 20: Appendix
» APPENDIX
Slide 21: YoY Revenue Growth Metrics
YoY Revenue Growth Metrics 2Q 2024 YTD 2024 Reported net sales % change (3%) (1%) Less: foreign currency exchange and commodities (1%) (1%) Adjusted revenue growth (2%) - 2Q 2024 YTD 2024 Reported Revenue Growth (3%) (1%) Signal And Power Solutions Reported Revenue Growth (5%) (2%) Advanced Safety A
Slide 22: Non-US GAAP Financial Metrics: Adjusted OI
Non-US GAAP Financial Metrics: Adjusted OI ($ millions) 2Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income attributable to Aptiv 938 242 1,156 404 Interest expense 64 72 129 139 Other income, net (10) (11) (25) (10) Gain on Motional transactions (641) - (641) - Income tax expense 51 30 127 64 Equity loss,
Slide 23: Non-US GAAP Financial Metrics: Adjusted EBITDA
Non-US GAAP Financial Metrics: Adjusted EBITDA ($ millions) 2Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income attributable to Aptiv 938 242 1,156 404 Interest expense 64 72 129 139 Income tax expense 51 30 127 64 Net income attributable to noncontrolling interest 5 4 11 7 Net loss attributable to redeema
Slide 24: Non-US GAAP Financial Metrics: Adj. NI Per Share
Non-US GAAP Financial Metrics: Adj. NI Per Share ($ millions, except per share amounts) 2Q 2024 2Q 2023 YTD 2024 YTD 2023 Net income attributable to ordinary shareholders 938 229 1,156 375 Mandatory convertible preferred share dividends - 13 - 29 Net income attributable to Aptiv 938 242 1,156 404 Ad
Slide 25: Shares Outstanding
Shares Outstanding (millions) 2Q 2024 2Q 2023 YTD 2024 YTD 2023 Weighted average ordinary shares outstanding, basic 270.19 272.69 272.69 271.86 Dilutive shares related to RSUs 0.24 0.08 0.18 0.11 Weighted average ordinary shares outstanding, including dilutive shares 270.43 272.77 272.87 271.97 Weig
Slide 26: 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 1,840 Interest expense 360 Other income, net (60) Gain on Motional transactions (640) Income tax expense 260 Equity loss, net of tax 130 Net income attributable to noncontrolling int
Slide 27: Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA
Non-US GAAP Financial Guidance Metrics: Adjusted EBITDA ($ millions) 20241 Net income attributable to Aptiv 1,840 Interest expense 360 Income tax expense 260 Net income attributable to noncontrolling interest (a) 20 Depreciation and amortization 960 EBITDA 3,440 Other income, net (60) Gain on Motion
Slide 28: 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 1,840 Adjusting items: Amortization 215 Restructuring 195 Other acquisition and portfolio project costs 65 Asset impairments 15 Compensation expense related to
Slide 29: “APTIV:
“APTIV: