Slide 1: Second Quarter 2019 Earnings Call
July 31, 2019 APTIV Second 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: Second Quarter Highlights
nd Quarter Highlights STRONG SECOND QUARTER EARNINGS AS OPERATIONAL INITIATIVES OFFSET WEAK MACRO ENVIRONMENT 93 > ——; REVENUE a —— $3.6B $7.2B Ss — 2Q.up 4% — YTD up 4% \Ay @: CONTINUED FOCUS ON 24 +9 al r—* be” ORERATIONAL EFFICIENCIES EBITDA %GoM-all 1 AND EXECUTION 2 ‘ed $583M $1.1B «=| GROWTH A
Slide 4: Maintaining 2019 Outlook
Maintaining 2019 Outlook STRONGER THAN EXPECTED SECOND QUARTER PERFORMANCE DERISKS WEAK MACROS IN 2H LEVERAGING FLEXIBLE BUSINESS MODEL OVERHEAD OPTIMIZATION • Structural cost actions translating into savings • Engineering investments to support future growth KEY INITIATIVES GAINING TRACTION • Mater
Slide 5: New Customer Awards
New Customer Awards WINNING ACROSS THE PORTFOLIO: STRONG YEAR-TO-DATE BOOKINGS BOOKINGS Lifetime gross program revenues, $ Billions $7.0 $6.5 $6.1 ADVANCED $5.5 SAFETY & USER $5.1 $5.1 EXPERIENCE $4.4 $4.3 $3.8 $3.4 SIGNAL & POWER SOLUTIONS 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 5 2Q 2019
Slide 6: Advanced Safety & User Experience
Advanced Safety & User Experience DELIVERING 13% GROWTH OVER MARKET; APPLYING EXPERTISE IN SENSING, SOFTWARE AND CENTRALIZED COMPUTE TO ENABLE NEXT GENERATION FEATURES AND FUNCTIONALITY 2Q 2019 HIGHLIGHTS • Continued Growth Over Market: Up 13% YoY, including China Up ~30% • Strong Active Safety win
Slide 7: Continued Commercial Validation of SVA
Continued Commercial Validation of SVA™ ZONE CONTROLLER A KEY BUILDING BLOCK TO FULL SMART VEHICLE ARCHITECTURE Architecture (ix) Orientation e. (([ets) FUNCTION DOMAIN ZONE FULL SVA™ = 2 50 - 100 Domain t Zone Advanced Distributed | 4 Controller 4 Ss Controller a Development ECUs / Vehicle Programs
Slide 8: Signal & Power Solutions
Signal & Power Solutions GROWTH OVER MARKET OF 7%; BENEFITTING FROM NEW PROGRAM LAUNCHES AND END MARKET DIVERSIFICATION 2Q 2019 HIGHLIGHTS • Ramp up of new launches and acquisition contributions accelerate growth • Strong cable management and fastening solutions growth driven by industrial end marke
Slide 9: Electrification Demand Accelerating
Electrification Demand Accelerating =~ SIGNIFICANT NEW LAUNCHES DRIVING FUTURE GROWTH 8 ie, Re Se CHALLENGING EMISSIONS TARGETS DEMAND NEW APTIV PERFECTLY POSITIONED TO BENEFIT FROM APPROACHES TO VEHICLE PROPULSION RAPID ACCELERATION IN ELECTRIFICATION ao ley > oT EU Avg CO, Emissions vs. pater; Tar
Slide 10: Executing Our Diversification Strategy
- Executing Our Diversification Strategy ACCRETIVE BOLT-ON M&A DRIVING END MARKET REVENUES NOT TIED TO LIGHT VEHICLE PRODUCTION WINCHESTERA PLATFORM FOR END MARKET EXPANSION END MARKET REVENUE Revenue ($ Billions), %f Total’ Sales ~ Platform for future industrial interconnect M&A © @ Winchester Inte
Slide 11: Investor Day Recap
Investor Day Recap STRATEGY, PORTFOLIO AND RIGOROUS FOCUS ON EXECUTION MAKE APTIV A MORE SUSTAINABLE BUSINESS, AND CREATES EXCEPTIONAL VALUE FOR INVESTORS __ @ STRATEGY of accelerating growth in currentand future platforms, while optimizing global execution capabilities drives increasing value for s
Slide 12: 2Q 2019 Revenue Growth
2Q 2019 Revenue Growth GROWTH OVER MARKET IN ALL MAJOR REGIONS DESPITE WEAK CHINA PRODUCTION REVENUE REGIONAL GROWTH $ Millions Adjusted1 | Growth Over Market (GoM) 4% Adj 1 9% GoM N. AMERICA EUROPE CHINA $143 ($59) ($141) 1% Adj 7% Adj (6%) Adj 3% GoM 13% GoM 10% GoM $3,684 $3,627 2 2Q 2018 Vol Pri
Slide 13: 2Q 2019 Earnings
2Q 2019 Earnings EBITDA, OPERATING INCOME AND EPS ALL AHEAD OF EXPECTATIONS EBITDA1 OPERATING INCOME1 EPS1 $ Millions, % of Sales $ Millions, % of Sales Earnings per share $ • +$23M versus midpoint of guidance • +$20M versus midpoint of guidance • +$0.19 versus midpoint of guidance, includes +$0.08
Slide 14: Advanced Safety & User Experience
Advanced Safety & User Experience CONSISTENT DOUBLE DIGIT GROWTH OVER MARKET AND CONTINUED INVESTMENTS TO SUPPORT FUTURE GROWTH REVENUE EBITDA2 OPERATING INCOME2 $ Millions $ Millions, % of Sales $ Millions, % of Sales • 13% Growth Over Market • EBITDA Margins 14.7% ex Mobility • Op Margins 11.0% ex
Slide 15: 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 • 7% Growth Over Market • Up +3% excluding FX/Comm and Tariffs • Down (2%) excluding FX/Comm and Tariffs
Slide 16: 2019 Macro Overview
2019 Macro Overview CONTINUED WEAK MACRO ENVIRONMENT GLOBAL NORTH AMERICA EUROPE CHINA 39% of Revenue2 32% of Revenue2 19% of Revenue2 Adjusted Adjusted Adjusted Adjusted Production Production Production Production Growth1 Growth1 Growth1 Growth1 1H19 4% (5%) 1H19 4% (2%) 1H19 6% (6%) 1H19 (9%) (14%
Slide 17: 2019 Guidance
2019 Guidance BALANCED OUTLOOK GIVEN MACRO HEADWINDS $ millions, except per share amounts 3Q 20193 FY 20193 COMMENTS REPORTED REVENUE $3,600 – 3,700 $14,525 – 14,725 • 3Q: AS&UX up ~10%, S&PS up Mid SD Adj Growth %1 | Growth Over Market ~8% | ~10% 5-6% | 9-10% • FY: AS&UX up 7-8%, S&PS up Mid SD Pre
Slide 18: 1H vs 2H 2019 Walk
1H vs 2H 2019 Walk STRONG 1H PERFORMANCE DERISKS WEAK MACROS IN 2H REVENUE1 OPERATING INCOME2 $ Millions $ Millions, % of Sales ~6% +220 bps Adj Growth1 ~4% +70 bps Adj Growth1 (30) bps ~12.4% (40) bps (20) bps $7,323 10.4% - $900 $7,523 - $7,202 $750 $940 1H19 Volume Production FX / Comm 2H19E 1H19
Slide 19: Summary
Summary PORTFOLIO DRIVING CONTINUED STRONG ABOVE MARKET GROWTH * Right strategy, rigorously executed driving outperformance today and in the future * Competitive moat expanding, generating outsized customer awards BALANCED 2019 OUTLOOK * Structural cost actions translating into savings, offsetting w
Slide 20: “APTIV:
“APTIV:
Slide 21: 2Q 2019 vs. 2Q 2018
2Q 2019 vs. 2Q 2018 ($ millions, except per share amounts) COMMENTS 2Q 2019 Fav / (Unfav) REPORTED REVENUE ($57) • Vehicle production down (5%) $3,627 • AS&UX 13% GoM, S&PS 7% GoM Adjusted Growth %1 | Growth Over Market 4% | 9% EBITDA2 $583 (7%) • Up 2% ex FX/Commodities and Tariffs EBITDA Margin 16
Slide 22: Adj. Revenue and YoY Growth Metrics
Adj. Revenue and YoY Growth Metrics 2Q 2019 YTD 2019 Reported net sales % change (2%) (2%) Less: foreign currency exchange and commodities (4%) (4%) Less: divestitures and other, net (2%) (2%) Adjusted revenue growth 4% 4% Reflective of management estimates due to integration of businesses 2Q 2019 Y
Slide 23: YoY Revenue and OI Adj. By Segment Walks
YoY Revenue and OI Adj. By Segment Walks ($ millions) Revenue OI Adj. 2Q 2018: Signal And Power Solutions 2,650 386 Volume, net of contractual price reductions 47 (42) FX and commodities (112) (36) Operational performance - 23 Other - 6 2Q 2019: Signal And Power Solutions 2,585 337 2Q 2018: Advanced
Slide 24: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 274 291 514 598 Interest expense 43 36 81 70 Other (income) expense, net (6) 7 (22) (23) Income tax expense 31 83 64 142 Equity income, net of tax (4) (8) (7) (13) Net (loss) income attribut
Slide 25: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 274 291 514 598 Interest expense 43 36 81 70 Other (income) expense, net (6) 7 (22) (23) Income tax expense 31 83 64 142 Equity income, net of tax (4) (8) (7) (13) Net (loss) income attribut
Slide 26: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions, except per share amounts) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Net income attributable to Aptiv 274 291 514 598 Adjusting items: Restructuring 31 15 57 35 Other acquisition and portfolio project costs 17 22 28 41 Asset impairments 10 1 10 1 Deferred compensati
Slide 27: Shares Outstanding
Shares Outstanding (millions) 2Q 2019 2Q 2018 YTD 2019 YTD 2018 Weighted average ordinary shares outstanding, basic 257.02 264.81 258.04 265.25 Dilutive shares related to RSUs 0.24 0.67 0.36 0.71 Weighted average ordinary shares outstanding, including dilutive shares 257.26 265.48 258.40 265.96 27 2
Slide 28: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 3Q 20191 20191 Net income attributable to Aptiv 294 1,121 Interest expense 44 172 Other income, net (9) (32) Income tax expense 50 163 Equity income, net of tax (9) (13) Net income attributable to noncontrolling interest 7 28 Operating income 377 1
Slide 29: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions) 3Q 20191 20191 Net income attributable to Aptiv 294 1,121 Interest expense 44 172 Other income, net (9) (32) Income tax expense 50 163 Equity income, net of tax (9) (13) Net income attributable to noncontrolling interest 7 28 Operating income 377 1
Slide 30: Non-US GAAP Financial Guidance Metrics
Non-US GAAP Financial Guidance Metrics ($ millions, except per share amounts) 3Q 20191 20191 Net income attributable to Aptiv 294 1,121 Restructuring 26 133 Other acquisition and portfolio project costs 11 45 Asset impairments - 10 Deferred compensation related to nuTonomy acquisition 11 43 Debt ext