UniCredit Automotive Credit Conference 2020€¦ · APTIV UniCredit Automotive Credit Conference...

APTIV

UniCredit Automotive Credit Conference 2020

June 25, 2020

Jane Wu

Vice President, Corporate Development

Treasurer

Elena Rosman

Vice President, Investor Relations

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 include, but are not

limited to, the following: global and regional economic conditions, including conditions affecting the credit market; uncertainties posed by the novel coronavirus

(COVID-19) pandemic and the difficulty in predicting its future course and its impact on the global economy and the Company’s future operations; fluctuations in

interest rates and foreign currency exchange rates; the cyclical nature of global automotive sales and production; the potential disruptions in the supply of and

changes in the competitive environment for raw material integral to the Company’s products; the Company’s ability to maintain contracts that are critical to its

operations; potential changes to beneficial free trade laws and regulations such as the United States-Mexico-Canada Agreement and its predecessor agreement,

the North American Free Trade Agreement; the ability of the Company to integrate and realize the expected benefits of recent transactions; the ability of the

Company to attract, motivate and/or retain key executives; the ability of the Company to avoid or continue to operate during a strike, or partial work stoppage or

slow down by any of its unionized employees or those of its principal customers; and the ability of the Company to attract and retain customers. Additional factors

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.

Forward Looking Statements

UniCredit Automotive Credit Conference | June 25, 2020 | Aptiv2

Manufacturing Sites

Technical Centers

FCF

CONVERSION 485%

Aptiv Today

$22.1 BOOKINGS

$14.4

$1.8 OPERATING

CASH FLOW 3

2019 FINANCIAL PERFORMANCE($B)

$2.4 EBITDA 2, 3

17% EBITDA Margin

GLOBAL FOOTPRINT AND CAPABILITIES

Note: See appendix for detail and reconciliation to US GAAP.1 Adjusted revenue growth over Aptiv weighted market.2 EBITDA adjusted for $261M in restructuring and other non-recurring items.3 Excludes automated driving investments, which were transferred into Aptiv /

Hyundai Autonomous Driving Joint Venture on March 26, 2020.4 Defined as (Operating Cash Flow - Capital Expenditures) / GAAP Net Income.

3

REVENUE9% Growth Over Market 1

SAFE CONNECTEDGREENA FUTURE WITH

ZERO ACCIDENTS

A FUTURE WITH

ZERO EMISSIONS

A FUTURE WITH

SEAMLESS CONNECTIVITY

Aptiv is a global technology company, with more than 160,000 employees across

126 manufacturing facilities and 12 major technical centers worldwide. With a presence in

44 countries, we address mobility’s toughest challenges through our deep software and

systems integration expertise, delivering market relevant solutions for our customers.

UniCredit Automotive Credit Conference | June 25, 2020 | Aptiv

Proactive Portfolio Actions


SMART PORTFOLIO ENHANCEMENTS HAVE POSITIONED APTIV TO THRIVE

IPO

2011

Jun 2015

Thermal

Jul 2015

Reception

Systems

Dec 2016

Mechatronics

EXITED low growth commodity businesses,

where limited opportunity for differentiation

was increasingly driving price pressure

AQUISITIONS enhancing automated

driving & data management capabilities

at attractive valuations

Dec 2017

Powertrain

Segment

Spin-off

POWERTRAIN SEGMENT SPIN-OFF

positioned Aptiv to better leverage brain and

nervous system capabilities

Jul 2015

ottomatika

Nov 2017

nuTonomy

Dec 2015

HellermannTyton

Nov 2015

Control-Tec

ACQUISITIONS increasing our scale

and leverage in engineered components

and presence in adjacent markets

Oct 2012

FCI

Oct 2014

Unwired

Oct 2014

Antaya

Jun 2018

KUM

Oct 2018

Winchester

Nov 2019

gabocom

Mar 2020

Automated Driving

50/50 Joint Venture

with Hyundai

Aptiv Business Segments

5

INDUSTRY LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND

CONNECTED MEGATRENDS


ENCOMPASSES OUR DEEP EXPERTISE IN CENTRALIZED

COMPUTING PLATFORMS, ADVANCED SAFETY SYSTEMS AND

THE IN-VEHICLE EXPERIENCE.

INFO & USER

EXPERIENCE

CONNECTIVITY

& SECURITY

ACTIVE

SAFETY

OTHER

Note: EBITDA margin adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP.

1. Adjusted revenue growth over Aptiv weighted market

2. Excludes automated driving investments, which were transferred into Aptiv / Hyundai Autonomous Driving Joint Venture on March 26, 2020; see appendix for detail

REVENUE

$4.1B+12% GoM1

14.5%

EBITDA MARGIN2

REVENUE BY PRODUCT LINE2

2019 Actuals

ADVANCED SAFETY & USER EXPERIENCE

ELECTRICAL

DISTRIBUTION

SYSTEMS

(EDS)

REVENUE

$10.3B+8% GoM1

17.6%

EBITDA MARGIN

REVENUE BY PRODUCT LINE

2019 Actuals

SIGNAL & POWER SOLUTIONS

COMMERCIAL

VEHICLE &

INDUSTRIAL

END MARKETSENGINEERED

COMPONENTS

GROUP (ECG)

LEVERAGES OUR HERITAGE AS A GLOBAL ARCHITECTURE &

COMPONENTS PROVIDER AND SYSTEMS INTEGRATOR TO DELIVER

THE HIGH-SPEED DATA AND HIGH-POWER ELECTRICAL SYSTEMS

REQUIRED FOR FEATURE-RICH, HIGHLY-AUTOMATED VEHICLES.

Robust Business Model


LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ENABLING THE FUTURE OF MOBILITY

GREENA FUTURE WITH ZERO EMISSIONS

SAFEA FUTURE WITH ZERO ACCIDENTS

CONNECTEDA FUTURE WITH SEAMLESS CONNECTIVITY

PROVIDING END-TO-END SOLUTIONS WITH A CONSISTENT MANAGEMENT PHILOSOPHY

DISCIPLINED REVENUE GROWTH

• Focused on Safe, Green and Connected

• Balanced customer, platform and regional growth

COST STRUCTURE OPTIMIZATION

• Increase leverage in operating model, footprint optimization

• Continuous improvement culture

DISCIPLINED CAPITAL ALLOCATION

• Maintain investment grade ratings

• Driving organic growth and acquisitions; return excess cash to shareholders

THE BRAIN AND THE NERVOUS SYSTEM, TOGETHER, ALLOW

US TO SOLVE CUSTOMERS’ TOUGHEST CHALLENGES WITH

VALUABLE, LOWER COST ARCHITECTURAL SOLUTIONS

AS&UX | THE BRAIN

POWER

Energize sensors

and components

DATA

Transmission and

processing throughout

the vehicle

COMPUTE

Collect and process

the information

SOFTWARE

Act on the information

to enable functionality

S&PS | THE NERVOUS SYSTEM

+

Addressing Challenging Problems


VEHICLE FATALITIES COMING DOWN

GLOBALLY, BUT PASSIVE SAFETY AT ITS

LIMIT; ADVANCED SAFETY SOLUTIONS

CRITICAL IN REDUCING VEHICLE FATALITIES

1.35MROAD TRAFFIC

DEATHS ANNUALLY

EMISSIONS REGULATIONS BECOMING

INCREASINGLY STRINGENT GLOBALLY TO

HELP IMPROVE AIR QUALITY AND REDUCE

TRANSPORTATIONS ENVIRONMENTAL IMPACT

URBANIZATION AND CONSUMER

EXPECTATIONS DRIVING DEMAND FOR

MORE INTELLIGENT, INTEGRATED AND

PRODUCTIVE SOLUTIONS

AIR POLLUTION IS THE NUMBER

ONE ENVIRONMENTAL CAUSE OF

DEATH IN THE EUROPEAN UNION#1

• EU and China NCAP continue to toughen

safety protocols, with several features

mandated in 2022+

• >30% L2/2+/L3 ADAS penetration by

20301

• High customer satisfaction, ~ 90% of

consumers intend to repurchase2

ADDRESSING THE PROBLEM

• EU and China regulations / incentives to

drive EV adoption

• Nearly 50% of new vehicle sales in 2030

expected to be xEV

• Lower battery costs expected to drive total

cost of owning BEV equal to or better than

ICE by ~2023

• 85% of all vehicles expected to be

connected by 2025, up from approximately

67% today

• Data / analytics plus OTA could reduce up

to 50% of OEM warranty costs

ADDRESSING THE PROBLEM ADDRESSING THE PROBLEM

1.BCG Consulting estimates

2. McKinsey Survey

125B CONNECTED IoT DEVICES

WORLDWIDE BY 2030

SAFE

Acceleration of Safe, Green & Connected Megatrends

GREEN CONNECTED

8

ADVANCED TECHNOLOGIES ADDRESSING CUSTOMERS TOUGHEST CHALLENGES

APTIV MISSION

A SOCIETY THAT SEES ZERO FATALITIES,

ZERO INJURIES AND ZERO ACCIDENTS

APTIV TECHNOLOGIES

• Perception systems and sensor fusion

• Active Safety software and multidomain controllers

• High fidelity / reliability interconnects and signal distribution

• Gesture and voice recognition for hands free control

• ASIL-D engineering, design and test competencies

ADDRESSABLE CPV

$5,000+

APTIV MISSION

ZERO EMISSIONS: MINIMIZE THE VEHICLE’S

TOTAL LIFECYCLE ENVIRONMENTAL IMPACT

APTIV TECHNOLOGIES

• High Voltage wiring and electrical centers

• High Voltage connectors, plug-in chargers and cord sets

• Aluminum wire harnesses for light-weighting

• Architecture optimization for mass and weight reduction

• Driver assistance systems with V2I

ADDRESSABLE CPV

$2,000+

APTIV MISSION

SEAMLESS INTEGRATION BETWEEN THE CAR,

ITS PASSENGERS, AND THE WORLD AROUND IT

APTIV TECHNOLOGIES

• Secure connected gateways (Cellular, Satellite, DSRC, GPS)

• V2X Modules: Vehicle To Vehicle / Infrastructure

• Wireless (Wifi, BT), Media Modules and Consumer Ports

• Over-The-Air (OTA) for Software and Firmware

• Edge Processing, cloud analytics and cybersecurity

ADDRESSABLE CPV

$3,000+


EVOLVING OUR LEADING PORTFOLIO OF ELECTRICAL ARCHITECTURE AND ELECTRONIC COMPONENT

SOLUTIONS (~85% AUTO VS. ~15% CV / INDUSTRIAL)

SAME MEGA TRENDS SAME DESIGN COMPETENCIES DIFFERENT PATHS TO MARKET

MISSION CRITICALRequired solutions with high cost of failure

HARSH ENVIRONMENTS“Automotive grade” performance competencies

AUTOMATIONDemand for productivity and data analytics

SAFETYIncreasing demand for safety

ELECTRIFICATIONHigher levels of electrical content

CONNECTIVITYIncreasingly interconnected

systems

!

Total Addressable Connectors Market ($ billions)

$4AEROSPACE

$5COMMERCIAL

VEHICLES

$10INDUSTRIALS

$6TELCOM / DATACOM

Source: Aptiv Internal Estimates; Bishop and Associates,

RBC Capital Markets estimates

Expanding Presence in Industrial Markets


TOTAL ADDRESSABLE MARKET ($ Billions)

Rapidly Growing Addressable Markets

10

LEVERAGING OUR STRENGTHS TO UNLOCK INCREMENTAL ADDRESSABLE MARKET OPPORTUNITIES BY 2025

$26$38

$13

$20$13

$20

$9

$17

$5

$14

$11

$20

$10

$13

$20

$80

$170

~2.0x

$120

~1.5x

STRONG UNDERLYING MARKET

GROWTH DRIVEN BY SAFE, GREEN

AND CONNECTED MEGATRENDS

NEW & ADJACENT

MARKETS

ELECTRIAL DISTRIBUTION

SYSTEMS

ENGINEERED COMPONENTS

INFO & USER EXPERIENCE

CONNECTIVITY & SECURITY

ACTIVE SAFETY

HIGH VOLTAGE

2020 2025

$50

CV & DIVERSIFIED MARKETS

AUTOMATED DRIVING

CONNECTED SERVICES & DATA

Source: Management estimatesUniCredit Automotive Credit Conference | June 25, 2020 | Aptiv

Aptiv Performance Track Record

11

GROWTH OVER MARKET2

Reported Revenue

(1%)$15.5B

2012 2015

EBITDA MARGIN3

EBITDA3

13.8%$2.1B

OPERATING CASH FLOW $1.5B

DEBTAverage Tenor

$2.5B5.3 yrs

NET DEBT / EBITDA3

Debt / EBITDA3

0.6x1.2x

S&PS 43%

AS&UX 17%

POWERTRAIN 30%

THERMAL 10%

SYSTEMS

NA 35%

EMEA 41%

APAC 18%

ROW 6%

S&PS 53%

AS&UX 18%

POWERTRAIN 29%

NA 38%

EMEA 35%

APAC 25%

ROW 2%

S&PS 72%

AS&UX 28%

NA 38%

EMEA 33%

APAC 27%

ROW 2%

PRODUCT PORTFOLIO

REVENUE BY REGION

20191

DISCIPLINED PORTFOLIO MANAGEMENT TRANSLATING INTO STRONGER FINANCIAL RETURNS

+5%$15.2B

16.5%$2.5B

$1.7B

$4.0B7.5 yrs

1.4x1.6x

+9%$14.4B

16.8%$2.4B

$1.8B

$4.4B9.4 yrs

1.6x1.8x

1. 2019 pro forma to exclude automated driving investments, which were transferred into Aptiv / Hyundai Autonomous Driving Joint Venture; see appendix for detail and reconciliation to US GAAP

2. Adjusted revenue growth over Aptiv weighted market

3. Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP

12

END MARKETS

10 LARGEST PLATFORMS ARE WITH 8 DIFFERENT OEMs

CUSTOMERS

GMVW

FCA

Ford

PSA

Geely

SAIC-GM

Daimler

Tata

Other

Toyota

Americas

Truck/SUV

Americas

Pass Car

Europe

Truck/SUV

Europe

Pass Car

Asia

Pass Car

Asia

Truck/SUV

Non-Auto

Balanced Across Platforms, Customers and Region

Note: Based on 2019 revenue.


GLOBAL

9% 9%

13%11%

9% 9%8%

9%

13%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019

NORTH AMERICA

38% of Revenue 2

EUROPE33% of Revenue 2

CHINA18% of Revenue 2

12%

3%

7%9%

3%

10%

13%12%

17%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019

8%

4%

9% 8%

11%13%

15%14%

22%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019

8%

17%18%

16%

9%

3%1% -

3%

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

2018 2019

Consistent Outperformance vs. the Market

13

TRACK RECORD OF DELIVERING SIGNIFICANT GROWTH IN EXCESS OF VEHICLE PRODUCTION

1. Adjusted revenue growth excluding impact of FX, commodities and divestitures vs. Aptiv weighted market growth.

2. Regional revenue % based on 2019.

3. Aptiv’s weighted market growth.

Note: South America 2% of Revenue 2

APTIV GROWTH OVER MARKET 1

Market

Growth3 (1)% (5)% 0% (4)% (1)% (4)% (4)% (9)%

Note: Total Asia Pacific 27% of Revenue 2


WELL POSITIONED TO SEIZE OPPORTUNITIES WHILE MANAGING RISK

Global and Flexible Operating Model

($ billions)

FLEXIBLE

BUSINESS MODEL

HOURLY WORKFORCE

BEST COST

96%

HIGH COST

4%

• Flexible business model funds growth

investments while delivering earnings and cash

flow growth

• Footprint rationalization; significantly lowered

fixed cost base

PERMANENT

85%

TEMPORARY

15%

IMPROVED COST

STRUCTURE

• Continued rollout of standardized processes

on a common technology platform reduces

inefficiencies while leveraging scale

• Reduced overhead expenses by $350M in

the last 5 yearsSG&A % of Sales

7.2%

6.8%

2015 2019

SG&A AS % OF REVENUE 1

ADJUSTED EBITDA

BREAKEVEN

$14.4B

$8.2B

2019 Revenue 2019 Breakeven

Revenue Level

~45%Sales

Reduction

1. Excludes D&A. 2019 pro forma to exclude automated driving investments, which were transferred into Aptiv / Hyundai Autonomous Driving Joint Venture; see appendix for detail and reconciliation to US GAAP

PRODUCTION VOLUME DECLINE

VS. TODAY’S LEVELS

• Relentless focus on driving operational

efficiencies and reducing risk

• Improved EBITDA breakeven levels of 45%

below today’s volumes


Increasing Cash Flow GenerationHIGHLY DISCIPLINED CAPITAL DEPLOYMENT RESULTS IN STRONG CASH FLOW CONVERSION EVEN IN MORE

CHALLENGING MACRO ENVIRONMENT

STRATEGIC FRAMEWORK OPERATING CASH FLOW

($M)

• Quality, not quantity, growth with the right

customers and platforms

• Compete where we have competitive

advantages

• Leveraging industry-leading operating model to

drive efficiencies and expand margins

• Increasing and enhancing return on capital

across the portfolio

• Selective investments in back office

improvement that deliver significant savings

opportunities in 3 – 5 years (operational,

sourcing, reporting, etc.)

15

Note: 2015 figures exclude Mechatronics and Powertrain businesses. 2019 figures as reported, does not exclude Mobility business.

1. Cash Flow before Financing, which is a non-GAAP measure and excludes costs of business acquisition.

2. Defined as (Operating Cash Flow - Capital Expenditures) / GAAP Net Income.

CFBF1 & CASH CONVERSION2

($M)

$559

$847

69%

85%

2015 2019

$1,062

$1,624

2015 2019


Navigating Through Unprecedented Times

16

1. Adjusted revenue growth excluding impact of FX, commodities and divestitures vs. Aptiv weighted market growth.

2. EBITDA, Operating Income adjusted for restructuring and other special items.

1Q 2020 PRODUCTION

(20%)APTIV WEIGHTED

GLOBAL VEHICLE

PRODUCTION

(48%) CHINA VEHICLE

PRODUCTION

(11%) NA VEHICLE

PRODUCTION

(20%) EUROPE VEHICLE

PRODUCTION

1Q 2020 FINANCIALS

$3.2BDOWN (7%)

13% GROWTH OVER MARKET 1

REVENUE

$231MOPERATING

INCOME 27.2% MARGIN

$411MEBITDA 2

12.7% MARGIN

$161MOPERATING

CASH FLOW

STRONG FIRST QUARTER EXECUTION DESPITE CHALLENGING ENVIRONMENT


CURRENT ENVIRONMENT

GLOBAL VEHICLE PRODUCTION

• >(50%) 2Q production decline

NORTH AMERICA & EUROPE

• OEMs halted vehicle production operations

• Restarts slow and phased

• Lack of visibility around timing and pace

CHINA

• OEMs are back up and running, albeit

lower levels

Decisive Actions to Enhance Financial Flexibility

Cash Conservation Actions ($M) Annualized

Suspension of Dividend $225

Reduction in Capital Spending $150

Employee Furloughs / Temporary Layoffs $90

Workforce Cost Actions $55

Extension of Global Travel Ban $30

Other $50

Total Cash Savings $600

RELENTLESS FOCUS TO ADDRESS MARKET CONDITIONS; $600M OF TARGETED ANNUAL CASH SAVINGS

17

Employee Health & Safety

Employee Cost Savings Initiatives

Commercial Actions

Capital Deployment Reductions

Disciplined and structured approach to

right-sizing our cost structure:

1

2

3

4

5 Safe Re-Start Planning


DEBT MATURITY PROFILE

$52

$298

$697

$776

$647

$554

$297 $295

$345

2021 2022 2023 2024 2025 2026 2027 2028 2029 2046 2049

1.50% Euro Sr Notes

1.60% Euro Sr Notes

4.25% Sr Notes

4.40% Sr Notes

Term

Loan A

Pre-

payable

L + 125

bps 4.35% Sr Notes

5.40% Sr Notes

Term Loan A

Extension

Pre-payable

L + 175 bps

4.15% Sr Notes

CREDIT UPDATE

Well-Laddered Debt Maturity Profile

18

NO NEAR-TERM MATURITIES UNTIL 20241 AND INCREASED FLEXIBILITY FROM CREDIT AGREEMENT AMENDMENT

Note: Debt outstanding as of March 31, 2020, net of unamortized issuance costs and discounts. Excludes $28M of finance leases and other debt and pro forma for extension of a portion of the Term Loan A

1. Excludes the $2.0B Revolving Credit Facility and Term Loan A

2. Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP


OUTSTANDING DEBT

• ~9 years weighted average debt maturity

• 3.4% weighted average rate

• 1.9x Net Debt / EBITDA (2.9x Debt / EBITDA)2

EXTENDED & AMENDED CREDIT

AGREEMENT

• Amended on May 1, 2020 and covers the

Revolving Credit Facility and Term Loan A

• 1 year extension to August 2022

• Leverage covenant increased from 3.5x to 4.5x

Debt / EBITDA through Q2 2021 (Covenant

Relief Period)

Actions to Further Enhance Financial Flexibility


RAISED NEW EQUITY CAPITAL TO ENHANCE FLEXIBILITY AND STRENGTHEN LONG-TERM FINANCIAL POSITION

PRO FORMA LIQUIDITYEQUITY ISSUANCE RATING AGENCY FEEDBACK

$2.3B IN GROSS PROCEEDS FROM

DUAL-TRANCHE EQUITY OFFERING

$1.15B COMMON STOCK1

• Offer Price: $75.91

$1.15B MANDATORY CONVERTIBLE

PREFERRED STOCK1

• Maturity: 3 year (June 2023)

• Preferred Dividend: 5.5%

• Conversion Premium: 22.5%

$2.2

$4.4

Q1 2020 Pro Forma

($B)

~$2.2B NET

PROCEEDS

FROM EQUITY

ISSUANCE2

1. Inclusive of $150M of underwriter greenshoe

2. Proceeds received by Aptiv net of underwriting discount

Baa2 BBB

Review for

Downgrade

CreditWatch

Negative

Baa2

reaffirmed

BBB

reaffirmed

Stable

Outlook

Negative

Outlook

Pre-

Offering

Post-

Offering

CASH RETURNED

TO SHAREHOLDERS

~40%

Capital Deployment Track Record


FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES

M&A TRACK RECORD

$526M

PURCHASE

PRICE

$250M 1.4x

SYNERGY

ACHIEVED

$680M $300M

REVENUE

1.4x

$311M $100M 1.0x$11.8B

2015-2019 CAPITAL DEPLOYMENT

DISCIPLINED CAPITAL DEPLOYMENT TRACK RECORD

MERGERS &

ACQUISITIONS

~30%

CAPITAL

EXPENDITURES

~30%

$1.8B $750M 1.5x

$4B AUTONOMOUS DRIVING JOINT VENTURE

• L4/5 assets and IP

• ~700 employees

dedicated to AD

deployment

• $1.6B cash at closing

• $0.4B in vehicle

engineering services,

R&D resources, and

access to IP

Materially

accretive to Aptiv’s

cash flow

(~$180M /year)

Summary

21

CONSISTENT EXECUTION OF STRATEGY

• Alignment to safe, green and connected megatrends provides a tailwind for above-market growth

• Relentless focus on continuous improvement and cost structure optimization

• Proactively enhanced financial flexibility to navigate through unprecedented times

UNIQUELY POSITIONED TO UNLOCK VALUE

• Demand for our scalable platform solutions increasing in current environment

• Capabilities in vehicle architecture enables more cost-effective platform solutions customers need

• Continue investment in key growth initiatives to further expand competitive moat

CONTINUING TO DELIVER SUSTAINABLE VALUE CREATION

• Leveraging leading technology portfolio, robust business model and optimized cost structure

• Track record of active portfolio management to enhance through-cycle performance

• Consistently improving credit profile and disciplined capital deployment


ROBUST BUSINESS MODEL AND EXECUTION MINDSET IMPROVING

THROUGH-CYCLE RESILIENCY

Aptiv Overview

APPENDIX

24

Automated Driving

Non-US GAAP Financial Metrics

($ millions)

Total Aptiv - Reported 2019

Revenue 14,357

Adjusted EBITDA 2,254

Operating Cash Flow 1,624

Less Mobility JV

Revenue 1

Adjusted EBITDA (151)

Operating Cash Flow (152)

Total Aptiv - Pro Forma

Revenue 14,356

Adjusted EBITDA 2,405

Operating Cash Flow 1,776



25

($ millions) 1Q 2020 1Q 2019 2019

Net income attributable to Aptiv 1,572 240 990

Interest expense 43 38 164

Other expense (income), net 1 (16) (14)

Income tax expense 10 33 132

Equity income, net of tax (2) (3) (15)

Net (loss) income attributable to noncontrolling interest (5) 5 19

Operating income 1,619 297 1,276

Restructuring 28 26 148

Other acquisition and portfolio project costs 14 11 71

Asset impairments - - 11

Deferred compensation related to nuTonomy acquisition 4 11 42

Gain on business divestitures and other transactions (1,434) - -

Adjusted operating income 231 345 1,548



26

($ millions, except per share amounts) 1Q 2020 1Q 2019 2019

Net income attributable to Aptiv 1,572 240 990

Adjusting items:

Restructuring 28 26 148

Other acquisition and portfolio project costs 14 11 71

Asset impairments - - 11

Deferred compensation related to nuTonomy acquisition 4 11 42

Gain on business divestitures and other transactions (1,434) - -

Debt extinguishment costs - 6 6

Transaction and related costs associated with acquisitions - - 5

Gain on changes in fair value of equity investments - (19) (19)

Tax impact of adjusting items (a) (11) (2) (18)

Adjusted net income attributable to Aptiv 173 273 1,236

Weighted average number of diluted shares outstanding 255.83 259.55 257.39

Diluted net income per share attributable to Aptiv 6.14 0.92 3.85

Adjusted net income per share 0.68 1.05 4.80

(a) Represents the income tax impacts of the adjustments made for restructuring and other special items by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the

charges were incurred.



27

($ millions) 1Q 2020 1Q 2019 2019 2015 2012

Net income attributable to Aptiv 1,572 240 990 1,450 1,077

Interest expense 43 38 164 127 136

Other expense (income), net 1 (16) (14) 88 (5)

Income tax expense 10 33 132 263 212

Equity income, net of tax (2) (3) (15) (16) (27)

Income from discontinued operations, net of tax - - - (274) -

Net (loss) income attributable to noncontrolling interest (5) 5 19 85 83

Operating income 1,619 297 1,276 1,723 1,476

Depreciation and amortization 180 173 717 540 486

EBITDA 1,799 470 1,993 2,263 1,962

Restructuring 28 26 148 177 171

Other acquisition and portfolio project costs 14 11 71 47 9

Deferred compensation related to nuTonomy acquisition 4 11 42 - -

Gain (loss) on business divestitures and other transactions (1,434) - - 8 -

Adjusted EBITDA 411 518 2,254 2,495 2,142



28

1Q 2020

Reported net sales % change (10%)

Less: foreign currency exchange and commodities (2%)

Less: divestitures and other, net (1%)

Adjusted revenue growth (7%)


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