APTIV Kevin Clark President and Chief Executive Officer Joseph Massaro Senior Vice President and Chief Financial Officer
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 forward-looking statements are subject to many risks, uncertainties and factors relating to the Company’s operations and business environment, which may cause the actual results of the Company to be materially different from any future results. All statements that address future operating, financial or business performance or the Company’s strategies or expectations are forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect the Company. It should be remembered that the price of the ordinary shares and any income from them can go down as well as up. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events and/or otherwise, except as may be required by law. 2 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Aptiv Overview POSITIONED TO WIN 2019E FINANCIAL PERFORMANCE 1 GLOBAL FOOTPRINT AND CAPABILITIES 2 $ billions, except per share amounts 160,000+ EMPLOYEES IN 44 COUNTRIES $14.3 REVENUE 22,000 SALARIED EMPLOYEES $1.5 OPERATING INCOME $4.65 EARNINGS PER SHARE 18,600 ENGINEERS 126 MANUFACTURING $1.5 OPERATING SITES CASH FLOW 6,500 15 MAJOR TECHNICAL FOCUSED ON $20+ BOOKINGS SOFTWARE CENTERS 1. Reflects 2019 guidance communicated on October 30, 2019 2. Reflects 2018 actuals communicated on February 4, 2019 3 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Industry’s Toughest Challenges VEHICLE FATALITIES COMING DOWN EMISSIONS REGULATIONS BECOMING URBANIZATION AND CONSUMER GLOBALLY, BUT PASSIVE SAFETY AT ITS INCREASINGLY STRINGENT GLOBALLY TO EXPECTATIONS DRIVING DEMAND FOR LIMIT; ADVANCED SAFETY SOLUTIONS HELP IMPROVE AIR QUALITY AND REDUCE MORE INTELLIGENT, INTEGRATED AND CRITICAL IN REDUCING VEHICLE FATALITIES TRANSPORTATIONS ENVIRONMENTAL IMPACT PRODUCTIVE SOLUTIONS 6 B 94 % #1 OF ALL ACCIDENTS AIR POLLUTION IS THE NUMBER SMARTPHONES GLOBALLY BY 2025, ARE CAUSED BY ONE ENVIRONMENTAL CAUSE OF REPLACING THE PC AS CONSUMERS HUMAN ERROR DEATH IN THE EUROPEAN UNION KEY CONNECTED DEVICE 1.35 M 25 B 4.6 METRIC TONS OF CO2 ROAD TRAFFIC IoT CONNECTED EMITTED FROM A TYPICAL DEVICES GLOBALLY DEATHS ANNUALLY PASSENGER VEHICLE 4 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Proactively Addressing the Changing Environment SMART EXECUTION OF OUR BUSINESS MODEL AND TIMELY CAPITAL DEPLOYMENT HAS ENABLED APTIV TO ADAPT AND THRIVE IN A DYNAMIC MARKET INVESTED IN AUTOMATED DRIVING & DATA ACCRETIVE CONNECTOR BOLT-ONs increasing our CAPABILITIES prior to peers / OEMs, at attractive scale and leverage electrical architecture pull-through valuations, while helping accelerate Active Safety opportunities, while expanding in adjacent markets and central compute businesses Dec 2017 2014 Jul 2015 2019 nuTonomy ottomatika Dec 2015 Jun 2018 Oct 2018 HellermannTyton KUM Winchester Nov 2015 Jun 2015 Control-Tec Thermal Jul 2015 Dec 2017 Reception Systems Powertrain Spin-off Dec 2016 Mechatronics EXITED HARD-PARTS businesses, POWERTRAIN SPIN-OFF created two where limited opportunity for differentiation independent public companies, better positioned was increasingly driving price pressure to pursue independent strategic priorities 5 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Aptiv / Hyundai Joint Venture JOINT VENTURE TO ADVANCE THE DESIGN, DEVELOPMENT AND COMMERCIALIZATION OF L4/5 AV TECHNOLOGY RIGHT PARTNER VEHICLES IN DEVELOPMENT WITH THE FUNCTIONAL SAFETY ARCHITECTURE IN PLACE, TO ADVANCE THE DEVELOPMENT OF L4-L5 TECHNOLOGY AT SCALE SHARED VISION SHARED TIMELINE AND DEPLOYMENT, WITH COMPLEMENTARY CAPABILITIES TO ADVANCE PATH OF AUTONOMOUS TECHNOLOGY INTO PRODUCTION-READY SYSTEMS JOINT VENTURE RIGHT STRUCTURE $4B ACCESS TO JOINT VENTURE TECHNOLOGY AND INSIGHTS FURTHER ENHANCE OUR COMPETITIVE POSITIONS IN ACTIVE SAFETY, VEHICLE CONNECTIVITY AND SVA™ 6 6 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Competitive Moat is Expanding PROVIDING END-TO-END SOLUTIONS THAT ADDRESS INDUSTRY CHALLENGES AND ENABLE THE COMMERCIALIZATION OF NEW MOBILITY VEHICLE IS BECOMING A FULL SYSTEM SOLUTION CAPABILITIES MAKE APTIV UNIQUELY QUALIFIED SOFTWARE DEFINED PLATFORM TO CONCEIVE, SPECIFY AND DELIVER NEW MOBILITY APPLICATIONS 01100011 ADVANCED CORE STRENGTHS 10001100 < / > CLOUD 01011101 SOFTWARE Complementary, interdependent skill-sets 01101010 Increasing differentiation and SOFTWARE value from software drives APPLICATION LAYER accretive revenue growth MIDDLEWARE COMPUTE OPERATING SYSTEM HARDWARE ABSTRACTION New safe, green and connected features POWER increasingly enabled through advanced COMPUTE ADVANCED software which requires more advanced ARCHITECTURES DATA & POWER architectures to run it DISTRIBUTION DATA More integrated, optimized SENSORS, architectures will drive greater PERIPHERALS addressable content for Aptiv & ACTUATORS 7 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Fast Growing Business Gaining Scale LEVERAGING FULL APTIV CAPABILITIES TO INCREASE SCALE AND RELEVANCE IN FAST-GROWING PRODUCT AREAS ACTIVE SAFETY HIGH VOLTAGE ELECTRIFICATION REVENUE BOOKINGS 2022 BOOKINGS REVENUE $2.5B+ Lifetime gross program revenues, $ Billions Lifetime gross program revenues, $ Billions 2022 $1B+ 2018 $0.9B 2018 $0.3B $3.9 $3.7 $2.0 2014 $0.2B $1.0 $1.4 $0.7 $1.2 $1.2 2014 $0.4 $0.1 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 8 Baird Global Industrials Conference | November 6, 2019 | Aptiv
Strategy Has Delivered Strong Results EXECUTION TOWARDS LONG TERM FINANCIAL FRAMEWORK CREATING VALUE FOR SHAREHOLDERS GROWTH INCOME TSR Revenue, IHS Production Operating Income 1 2015 – November 1 st , 2019 Aptiv | 133 Aptiv | 140 61% 49% Peers 2 | 116 Peers 2 | 114 Production | 107 16% 13% 2015 2016 2017 2018 Peers 2 APTV APTV Peers 2015 2016 2017 2018 1. Adjusted for restructuring, stranded and other costs related to accounting treatment for Discontinued Operations (DO) and other special items; see appendix for detail and reconciliation to US GAAP 2. Peer group includes: CON, DENSO, LEA, MGA, VALEO, VC 9 Baird Global Industrials Conference | November 6, 2019 | Aptiv
YoY Revenue Growth Metrics 3Q 2019 YTD 2019 Reported net sales % change 2% - % Less: foreign currency exchange and commodities (3%) (3%) Less: divestitures and other, net (1%) (1%) Adjusted revenue growth 6% 4% 3Q 2019 YTD 2019 Reflective of management estimates due to integration of businesses Reported Revenue Growth 2% -% Signal And Power Solutions Reported Revenue Growth 2% (1%) Advanced Safety And User Experience Reported Revenue Growth 3% 1% Adjusted Revenue Growth 1 6% 4% Signal And Power Solutions Adjusted Revenue Growth 1 4% 3% Advanced Safety And User Experience Adjusted Revenue Growth 1 9% 8% Organic Revenue Growth 2 4% 2% Signal And Power Solutions Organic Revenue Growth 2 2% (1%) Advanced Safety And User Experience Organic Revenue Growth 2 9% 8% 1 Adjusted revenue growth excludes impact of foreign exchange, commodities, and divestitures. 2 Organic revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures. 11 Baird Global Industrials Conference | November 6, 2019 | Aptiv
YoY Revenue and OI Adj. By Segment Walks 3Q 2019 Revenue OI Adj. ($ millions) 3Q 2018: Signal And Power Solutions 2,535 346 Volume, net of contractual price reductions 113 (13) FX and commodities (64) (1) Operational performance - 30 Other - (12) 3Q 2019: Signal And Power Solutions 2,584 350 3Q 2018: Advanced Safety And User Experience 956 74 Volume, net of contractual price reductions 45 2 FX and commodities (16) (2) Operational performance - 6 Other - (20) 3Q 2019: Advanced Safety And User Experience 985 60 3Q 2018: Eliminations And Other (6) - Volume, net of contractual price reductions (4) - FX and commodities - - 3Q 2019: Eliminations And Other (10) - 3Q 2018: Total 3,485 420 Volume, net of contractual price reductions 154 (11) FX and commodities (80) (3) Operational performance - 36 Other - (32) 3Q 2019: Total 3,559 410 12 Baird Global Industrials Conference | November 6, 2019 | Aptiv
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