President and Chief Executive Officers22.q4cdn.com/336558720/files/doc_presentations/2020/02/...President and Chief Executive Officer This presentation, as well as other statements

CECP CEO INVESTOR FORUM

February 24, 2020

Kevin ClarkPresident and Chief Executive Officer

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.

Forward Looking Statements

CECP CEO Investor Forum | February 24, 2020 | Aptiv2

OPERATING

CASH FLOW$1.6

Aptiv Overview

$14.4 REVENUE

$4.80 EARNINGS

PER SHARE

2019 FINANCIAL PERFORMANCE1

$ billions, except per share amounts

$1.5 OPERATING

INCOME

POSITIONED TO WIN

3

1. Reflects 2019 actuals communicated on January 30, 2020

EG

We are a global technology

company that develops safer,

greener and more connected

solutions, which enable the

future of mobility.

CECP CEO Investor Forum | February 24, 2020 | Aptiv

Compelling Mission

4

CLEAR AND COMPELLING MISSION AT THE HEART OF EVERYTHING WE DO

A society that sees zero fatalities,

zero injuries and zero accidents

Zero emissions: minimize the vehicle’s

total lifecycle environmental impact

Seamless integration between the car,

its passengers, and the world around it

STRATEGY EXECUTION SUSTAINABLE BY DESIGNMISSION


Advanced safety technologies

can eliminate virtually all driver

errors, saving over 1 million lives

and 40 million injuries annually

Electrification can potentially

reduce transportation CO2 by

more than 50%; these emissions

currently account for ~15% of

global totals

OTA can quickly and efficiently

update vehicle software, saving

the industry $35 billion annually

by 2022

SAFE

Portfolio Aligned To Safe, Green And Connected

GREEN CONNECTED

5

APTIV TECHNOLOGIES HELPING ADDRESS 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+


Right Strategy, Rigorously Executed

6

DRIVING OUTPERFORMANCE TODAY, AND IN THE FUTURE

Connected

Services

Automated

Driving

Smart

Vehicle

Architecture

Adjacent

Markets

Active

Safety

High Voltage

Electrification

Quality &

Delivery

Human

Capital

Customer &

Regional Mix

Footprint &

Efficiency

BUSINESS FOUNDATION

Optimizing global execution capabilities,

which give Aptiv the right to play across

current and future platforms

CURRENT PLATFORMS

Leveraging pan-Aptiv capabilities to increase scale

and relevance in fast-growing product areas

FUTURE PLATFORMS

Seeding the next wave of growth, while

diversifying business models and end markets

• Built top-tier automated mobility technology capabilities

• Established data monetization platform

• Expanded into non-auto markets

• $5.6B High Voltage bookings since 2016

• $13.2B Active Safety bookings since 2016

• Divested businesses that did not fit our strategy

• Drove $250M in overhead cost savings 2014 - 2019

• No single customer more than 10% of sales

• Balanced Regional Mix1: North America (38%),

Europe (33%), APAC (27%)



1. Regional revenue calculated as a percent of 2019 total revenue as communicated on January 30, 2020

Proactively Addressing the Changing Environment

7

SMART EXECUTION OF OUR BUSINESS MODEL AND TIMELY CAPITAL DEPLOYMENT

HAS ENABLED APTIV TO ADAPT AND THRIVE IN A DYNAMIC MARKET

2014

2020

Jun 2015

Thermal

Jul 2015

Reception Systems

Dec 2016

Mechatronics

EXITED HARD-PARTS businesses,

where limited opportunity for differentiation

was increasingly driving price pressure

INVESTED IN AUTOMATED DRIVING & DATA

CAPABILITIES at attractive valuations, while

helping accelerate Active Safety and central

compute product lines

Dec 2017

Powertrain Spin-off

POWERTRAIN SPIN-OFF created two

independent public companies, better positioned

to pursue independent strategic priorities

Jul 2015

ottomatika

Dec 2017

nuTonomy

ACQUISITIONS increasing our scale and leverage in

electrical architecture, while expanding in adjacent

markets

Jun 2018

KUMOct 2018

Winchester

Dec 2015

HellermannTyton

Nov 2015

Control-TecNov 2019

gabocom

Q1 2020

50/50 automated

driving JV expected

to close with Hyundai


Aptiv Perfectly Positioned Today

8

PROVIDING END-TO-END SOLUTIONS THAT ENABLE THE COMMERCIALIZATION OF NEW MOBILITY

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

+

ACTIVE SAFETY

Increasing levels of safety automation

on the path to automated driving

CONNECTIVITY

Improved in cabin experiences for

greater comfort and productivity

HIGH VOLTAGE ELECTRIFICATION

Greater vehicle electrification for

propulsion and performance

Aptiv’s advanced technologies and deep

systems knowledge across the brain and

nervous system of the vehicle…

…allows us to conceive, specify

and deliver solutions for our

customers’ toughest challenges

Foundational

elements for every

vehicle solution


AS&UX S&PS

Funding Investments for Growth

9

IMPROVEMENTS IN BUSINESS FOUNDATION ALLOWING US TO REINVEST FOR

ACCELERATED GROWTH AND MARGIN EXPANSION THROUGH THE CYCLE

Performance InvestmentsFor Growth*

$2.7B

PERFORMANCE AND INVESTMENTS2015 - 2020E

Engineering

Manufacturing

Mobility

EXPANDING EARNINGS

Performance more than offsetting price and

incremental investments for growth

FUNDING MOBILITY

Mobility funding decreases in 2020 due

to Aptiv-Hyundai JV closing in Q1

ACCELERATING GROWTH

Supporting record customer awards in products

such as Active Safety and Electrification

Material

OPTIMIZING COST STRUCTURE

Relentless focus on driving operational

efficiencies and improving flexibility

Price

* Incremental Investments: 2020E vs. 2015

$2.2B

D&A


People

Sustainable

Growth

Portfolio

COMPETITIVE MOAT EXPANDING

Reinvestment in the business improving competitive

positioning on current and future platforms

Best talent, organized the right

way, with the right tools

Improving portfolio of

differentiated solutions

focused on customers’

toughest challengesOutsized customer awards

in next generation solutions

Mobility


Fast Growing Business Gaining Scale

HIGH VOLTAGE

ELECTRIFICATION$ Billions, % Adj Growth1

10

LEVERAGING FULL APTIV CAPABILITIES TO INCREASE SCALE AND

RELEVANCE IN FAST-GROWING PRODUCT AREAS


1. Revenue growth excludes impact of foreign exchange, commodities and divestures.

ACTIVE SAFETY$ Billions, % Adj Growth1

$0.9

$1.3

2018 2019 2020E 2022T

30%

$2.5+

~$1.7

$0.26$0.34

2018 2019 2020E 2022T

$1.0+

50%

~$0.5

ENGINEERED COMPONENTS$ Billions, % Adj Growth1

$4.7

$4.8

2018 2019 2020E 2022T

$5.5+

6%

~$5.0

Balanced Capital Deployment

11

CAPITAL

EXPENDITURES

35%-40%DIVIDENDS

10%-15%

M&A AND SHARE REPURCHASES

45%-55% DRIVING GROWTH

• Organic reinvestment to support active safety,

infotainment and engineered components growth

• Adding accretive acquisitions and technology

enablers; M&A pipeline remains full

RETURNING CASH TO SHAREHOLDERS

• Opportunistic share buybacks take advantage of

market dislocations

• Maintaining a competitive dividend

FOCUSED ON VALUE ENHANCING ORGANIC AND INORGANIC INVESTMENT OPPORTUNITIES

Long Term Capital Allocation Priorities4

1. FCF Conversion: (Operating Cash Flow – CAPEX + Spin Related Cash Payments) / Net Income; Spin Related Cash Payments of $38M in 2017 and $167M in 2018

2. CAGR represents growth of operational cash flow only

3. 2017 excludes the $310M payment for unsecured creditors settlement in 2017

4. Net of cash required to support business operations

OPERATING CASH FLOW$ Billions, Free Cash Flow Conversion1

2017 2018 2019 2022T

$1.4

$2.2-2.4

~10%CAGR2

85 - 90%90%

$1.6 $1.6

73%

3

85%


Strategy Has Delivered Strong Results

GROWTHRevenue, IHS Production

INCOMEOperating Income1

12

EXECUTION TOWARDS LONG TERM FINANCIAL FRAMEWORK CREATING VALUE FOR SHAREHOLDERS

1. Adjusted for restructuring, stranded and other costs related to accounting treatment for Discontinued Operations (DO) and other special items

2. Peer group includes: CON, DENSO, LEA, MGA, VALEO, VC

3. Growth, Income, and Total Shareholder Return data sourced from Capital IQ

2015 2016 2017 2018 2019

Aptiv | 132

Peers2 | 115

Production | 101

2015 2016 2017 2018 2019

Aptiv | 124

Peers2 | 86

TSR2015 – 20193

56%

12%

29%

APTV

Peers

S&P 500

2

75%

10%

44%

APTV

Peers

S&P 500

2

67%

15%

57%

APTV

Peers

S&P 500

2

1-Year

(2019)

3-Year

(2017-19)

5-Year

(2015-19)


13

Sustainable by DesignFINANCIAL FRAMEWORK ALIGNED WITH STRATEGY AND VISION

MORE SUSTAINABLE BUSINESS

REVENUE DIVERSIFICATION

Disciplined revenue growth with balanced customer,

region and end market mix

IMPROVED COST STRUCTURE

Relentless focus on reducing cost and improving our

flexible business model

BALANCED CAPITAL DEPLOYMENT

Balanced capital deployment drives upside

ABILITY TO OUTPERFORM

IN ANY ENVIRONMENT

INVESTMENTS FOR GROWTH

Investment in the business to improve competitive

positioning

INDUSTRY LEADING PORTFOLIO OF TECHNOLOGIES

Continued validation of our relevant portfolio of advanced

technologies



PROCESSES

We’re improving the resiliency and efficiency of our

supply chain, while enhancing our ability to

commercialize new solutions

PEOPLE

Our people play the key role in executing our

vision and strategy - in good times and bad - so

our culture of execution helps ensure we have the

right people organized the right way

More Sustainable through “The How”

14

CULTURE OF CONTINUOUS IMPROVEMENT AROUND OUR PEOPLE, PROCESSES AND

PORTFOLIO MAKES APTIV A MORE SUSTAINABLE BUSINESS

PORTFOLIO

Our innovative portfolio of technologies and

robust global engineering and development

capabilities have positioned us to meet the

increasingly stringent manufacturing demands

and consumer preferences for high technology

content


Winning CultureSUSTAINABLE CULTURES DELIVER BEST-IN-CLASS PERFORMANCE FOR ALL STAKEHOLDERS

RESULTS COMPOUND WELL ABOVE PEERS

CORE VALUES AT THE HEART OF APTIV

Principles for how we work

15

ALWAYS DO THE RIGHT THING, THE RIGHT WAYCreated by Davidfrom the Noun Pro ect

PLAY TO

WIN

ONE

TEAM

THINK & ACT

LIKE OWNERS

ACT WITH

URGENCY

PASSION

FOR RESULTS

OPERATE WITH

RESPECT

ESG TAKING HOLD


World’s Most Ethical Companies for the

eighth year in a row

Ranked #4 in Autos & Parts industry

category and included in JUST U.S.

Large Cap Equity ETF

Sustainability Journey

CELEBRATING INTERNATIONAL

WOMEN’S DAY

CECP CEO Investor Forum | February 24, 2020 | Aptiv16

OPERATIONALLY FOCUSED ON MAKING APTIV A MORE DIVERSE COMPANY

RIGHT STRUCTURE

Beyond the right culture and portfolio of products, we believe it

is essential to have the right people, in the right frame of mind,

organized in the right way

47%

WomenManagement Positions 27%

Revenue-Generating Functions 21%

PERCENTAGE OF FEMALE REPRESENTATION

IN APTIV’S WORKFORCE

Events to strengthen the link between women and technology

leadership

Industry and educational forums to engage and inspire women

Heavily involved in campus activities targeted at developing

female technical leaders

EMPLOYEE ENGAGEMENT

Aptiv is constantly interacting with our workforce to ensure that

they are heard and provide the feedback and support they

need to develop their careers

DIVERSITY EQUALS INNOVATION

Diversity of thought and experiences are critical

to delivering on our mission

In addition to talent and skill, we believe race,

culture, ethnicity, gender, and age diversity are

vital to our success

PERFORMANCE BASEDNamed Executive Officer Pay Mix

LONG-TERM VALUE FOCUSED ACHIEVED THE RIGHT WAYStrategic Results Modifier (SRM) Component of AIP

17

1. Segment performance metrics based on Operating Income and Simplified Operating Cash Flow

2. TSR performance relative to Russel 3000 Auto Index peers

3. For Executive Officers

79%Aptiv Performance

Based

BASE PAY | 21%

Incentives Aligned To Creating

SHAREHOLDER VALUE10% SRMSTRATEGIC RESULTS MODIFIER

+ -

2020 SRM GOALS

TALENT & DIVERSITY

Attract and retain the best

CULTURE

Reinforce values and behaviors of a

winning team

QUALITY

Drive flawless launch and delivery

AIP

• 50% | NET INC1

• 10% | BOOKINGS

• 40% | CASH (CFBF) 1

ANNUAL

INCENTIVE

PLAN

(AIP) | 19%

LTIP

• 25% | NET INC

• 25% | TSR2

• 50% | RONA

75% Performance3

25% Time Based3

SRM Goals drive

strategic factors

52%Russell 3000

Average

LONG-TERM

INCENTIVE

PLAN

(LTIP) | 60%

Performance Based LTIP linked to

business plan; strongly incentivizing

commitment to outperformance

Incentives Aligned to Long-Term ValuePAY-FOR-PERFORMANCE CULTURE WITH METRICS TIGHTLY LINKED TO LONG-TERM VALUE CREATION


Stock Ownership Guidelines:

CEO = 6x of base salary

Executive Officers = 3x of base salary

SUSTAINABILITY

Board Of Directors EngagementSTRONG PARTNERSHIP BETWEEN BOARD OF DIRECTORS AND MANAGEMENT

ON STRATEGY AND RISK MANAGEMENT

GOVERNANCE ETHICS & COMPLIANCE

STRATEGY FINANCE INVESTOR SENTIMENT

• Product portfolio review

• Operational planning

• Long-term enterprise risks and opportunities

• Strategic investments

• Financial performance and disclosures

• Annual budget and long-term business plan

• Capital deployment

• Market and industry insight and assessment

• Investor and analyst feedback / perception

• Communication strategy

• ESG priorities

• Long-term environmental goals and commitments

• Safety and compliance

• Community involvement

• Selection and evaluation of Board members

• Corporate governance guidelines

• Compensation planning

• Enterprise risk

• Company culture

• DRIVE Line cases

• Diversity and inclusion

• Human capital management

18 CECP CEO Investor Forum | February 24, 2020 | Aptiv

Aptiv 2025 Vision

19

…LOGICAL EXTENSION OF OUR STRATEGY

2025 REVENUE

~$22BCAPITAL DEPLOYMENT

UPSIDE

IMPROVED GROWTH PROFILE

Less cyclical, more predictable and more

diversified revenue growth

IMPROVED PROFITABILITY

Continuous improvement mindset

increases leverage in operating model

WINNING CULTURE

Winning teams deliver best-in-class

customer and shareholder value

SIGNAL & POWER

SOLUTIONS

ADVANCED SAFETY &

USER EXPERIENCE

FUTURE PLATFORMS EMERGE

Investments result in accretive solutions

CURRENT PLATFORMS SCALE

Driving scale in fast growing product lines

FOUNDATION OF EXECUTION

Continued focus on flexible and efficient cost structure

Active

Safety

High

Voltage


Summary

20

STRATEGY, PORTFOLIO AND RIGOROUS FOCUS ON EXECUTION MAKE APTIV A MORE SUSTAINABLE BUSINESS

Accelerating growth in

current and future platforms,

while optimizing global

execution capabilities drives

increasing value for

stakeholders

Full system solutions

aligned to the safe, green

and connected

megatrends, provide a

tailwind for content growth

Deliver safe, green and

connected technologies

that enable the future of

mobility

Success emanates from a

strong, sustainable business

that makes the world a

better place, a business that

is Sustainable by Design

APTV



Documents

President and Chief Executive Officers22.q4cdn.com/336558720/files/doc_presentations/2020/02/...President and Chief Executive Officer This presentation, as well as other statements