February 3, 2021
APTIV
Fourth Quarter 2020 Earnings Call
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 include, but are not limited to, the following: global and regional economic conditions, including conditions affecting the credit market and resulting from the United Kingdom's exit from the European Union, commonly referred to as "Brexit"; 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; 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.
2 | 4Q 2020 Earnings | February 3, 2021 | Aptiv |
Fourth Quarter And Full Year Highlights
STRONG FINISH TO 2020 AND SUSTAINED GOM DESPITE THE ONGOING CHALLENGING ENVIRONMENT
REVENUE
$4.2B | $13.1B | |
4Q up 14% | FY down 9% | |
EBITDA | ||
$678M | $1.6B | |
4Q Margins of 16.1% | FY Margins of 12.4% | |
OPERATING INCOME
$476M | $0.9B |
4Q Margins of 11.3% | FY Margins of 6.6% |
EARNINGS PER SHARE
$1.13 | $1.94 |
4Q down 2% | FY down 60% |
+10% GoM
GROWTH ABOVE MARKET
DESPITE LOWER VEHICLE
PRODUCTION
~(19%) 2020 GLOBAL VEHICLE PRODUCTION1
COVID-RELATED MACRO
AND OPERATIONAL
CHALLENGES
Note: Revenue growth excludes impact of foreign exchange, commodities and divestitures; see appendix for organic growth rates
EBITDA, Operating Income and EPS adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP. 1. Aptiv weighted global vehicle production.
3 4Q 2020 Earnings | February 3, 2021 | Aptiv
2021 Outlook
WELL-POSITIONED FOR CONTINUED RECOVERY OUTPERFORMANCE DESPITE NEAR-TERM CHALLENGES
RECOVERY UNDERWAY
SUSTAIN ABOVE MARKET GROWTH
~6% growth over market attributed to secular growth drivers
MARGIN EXPANSION
Strong execution and operational efficiencies driving ~10.5% margin
CAPITAL DEPLOYMENT UPSIDE
Continued focus on value enhancing M&A transactions
INDUSTRY CHALLENGES REMAIN
COVID OPERATIONAL CHALLENGES
Inefficiencies associated with operating with COVID continue in 2021
SUPPLY CHAIN CONSTRAINTS
Worldwide shortage of semiconductors limiting 1H'21
visibility; driving increased manufacturing and logistics costs
MARKET DEMAND STABILIZATION
Recovery of lost production volumes expected
2H'21; global vehicle production expected up ~10%
4 4Q 2020 Earnings | February 3, 2021 | Aptiv
Executing On Our Strategy
STRENGTHENING BUSINESS FOUNDATION WHILE CAPITALIZING ON NEXT WAVE OF GROWTH
2020 VALIDATED INVESTMENT THESIS
LEADING PORTFOLIO OF
ADVANCED TECHNOLOGIES
- Consistent market outperformance despite production declines
OPTIMIZED COST STRUCTURE
- Relentless focus on costs, while reinvestment drives scale in fast growing areas
OPERATIONAL EXECUTION
- Benefits of more resilient business model drove strong 2020 outperformance
FINANCIAL STRENGTH
- Proven recession playbook
SUSTAINABLE
VALUE
CREATION
CONSISTENT MARKET OUTGROWTH
ACCELERATED EV/AV
OPPORTUNITIES ON THE
PATH TO FULL SVA™
ACCRETIVE PORTFOLIO
AND BUSINESS MODEL
OPPORTUNITIES
CULTURE OF CONTINUOUS IMPROVEMENT TRANSFORMING OPERATIONAL EXCELLENCE
CAPITAL DEPLOYMENT UPSIDE
FOCUSED ON ENHANCING
COMPETITIVE POSITION
5 4Q 2020 Earnings | February 3, 2021 | Aptiv
Winning Across the Portfolio
STRONG 2020 BOOKINGS REFLECTING RAMP UP OF AWARD ACTIVITY
BOOKINGS
Lifetime gross program revenues, $ Billions
$8.1 | |||||||||||
$7.5 | |||||||||||
$6.5 | |||||||||||
$6.1 | |||||||||||
$5.5 | |||||||||||
$5.0 | |||||||||||
$4.4 | $4.3 | $4.6 | |||||||||
$4.2 | COVID | ||||||||||
IMPACTED | |||||||||||
BOOKINGS | |||||||||||
$3.1 | |||||||||||
$2.8 | |||||||||||
1Q18 | 2Q18 | 3Q18 | 4Q18 | 1Q19 | 2Q19 | 3Q19 | 4Q19 | 1Q20 | 2Q20 | 3Q20 | 4Q20 |
6 | 4Q 2020 Earnings | February 3, 2021 | Aptiv |
ADVANCED SAFETY & USER EXPERIENCE
$4.7B
IN 2020
~$20B SINCE 20181
SIGNAL & POWER SOLUTIONS
$13.3B
IN 2020
~$42B SINCE 20181
1. Cumulative value of bookings
ACTIVE
SAFETY
$3.7B
IN 2020
~$12B SINCE 20181
HIGH VOLTAGE ELECTRIFICATION
$2.0B
IN 2020
~$6B SINCE 20181
Innovation In Motion
ENABLING THE ELECTRIFIED, SOFTWARE-DEFINED VEHICLES OF THE FUTURE
SMART VEHICLE ARCHITECTURE™ (SVA™):
ENHANCING VEHICLE ARCHITECTURE
Aptiv's approach to supporting customers' electrified, feature rich and highly automated vehicles
SIMPLIFY Vehicle System
and Function Complexity
and Interdependence
UNITE Diverse
Applications Across the
Full Vehicle Lifecycle
EMPOWER OEMs to
Control the Consumer User
Experience of Their Vehicles
LATEST INNOVATIONS
NEXT-GEN ADAS
- Open and scalable ADAS platform enables the software-defined vehicle, reduces complexity and lowers total system costs
ZONE CONTROLLERS
- Breaks apart the vehicle's physical complexity into more manageable zones and further drives up-integration of distributed ECUs
HIGH VOLTAGE
- Extensive portfolio that applies advanced innovations to maximize optimization of the vehicle's overall weight, mass and cost
USER EXPERIENCE
- Enhanced automotive applications, including lifecycle management expectations, app availability, speed to market and security
7 4Q 2020 Earnings | February 3, 2021 | Aptiv
Motional: Aptiv / Hyundai Joint Venture
MAKING DRIVERLESS VEHICLES A SAFE, RELIABLE AND ACCESSIBLE REALITY
COMMERCIAL LEADERSHIP
- Ridesharing industry's driverless tech of choice
- Powering the largest robotaxi deployment partnership for a major ridesharing network
- Launching a multimarket, fully-driverless service in 2023 on scalable AMOD platform
TECHNOLOGY LEADERSHIP
- Rigorous validation and safety assessment process
- Approved for testing fully driverless systems on public roads in Nevada
8 4Q 2020 Earnings | February 3, 2021 | Aptiv
APTIV'S | + | HYUNDAI'S |
EXPERTISE IN | LEADERSHIP | |
AUTOMOTIVE | IN VEHICLE | |
TECHNOLOGY | MANUFACTURING |
4Q 2020 vs. 4Q 2019
($ Millions, except per share amounts)
REPORTED REVENUE
Adjusted Growth %1 | Growth Over Market
EBITDA2
EBITDA Margin
OPERATING INCOME2
Operating Margin
EARNINGS PER SHARE2
OPERATING CASH FLOW
4Q 2020
$4,212
$678
16.1%
$476
11.3%
$1.13
$799
Fav / (Unfav)
$616
14% | 13%
$112
40 bps
$88
50 bps
($0.02)
$96
COMMENTS
- Vehicle production up 1%
- AS&UX Up 6% GoM, S&PS Up 16% GoM
- ~($30M) of COVID-related operating costs
- ~($40M) of supply chain inefficiencies
- Price declines of (2.1%)
- Higher depreciation & amortization
- 12.7% adjusted tax rate
- Assumes conversion of preferred shares
- Higher earnings and lower cash taxes
- Capital expenditures of $95M
- Revenue growth excludes impact of foreign exchange, commodities and divestitures; see appendix for organic growth rates
- Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP
9 4Q 2020 Earnings | February 3, 2021 | Aptiv
4Q 2020 Revenue
STRONGER THAN EXPECTED VOLUME ACROSS ALL REGIONS
REVENUE
$ Millions
14% Adj1 | ||||
13% GoM | ||||
$124 | ($74) | |||
$566 | ||||
$4,212 | ||||
$3,596 | ||||
4Q 2019 | Volume | FX / Comm | Price | 4Q 2020 |
REGIONAL GROWTH
Adjusted Growth1 | Growth Over Market (GoM)
N. AMERICA | EUROPE | CHINA2 |
11% Adj | 20%Adj | 9% Adj |
11% GoM | 19% GoM | 4% GoM |
- Revenue growth excludes impact of foreign exchange, commodities and divestitures; see appendix slide for organic growth rates
- Asia Pacific adjusted revenue growth up 10% and growth over market up 7%
10 4Q 2020 Earnings | February 3, 2021 | Aptiv
4Q 2020 Segment Recap
SEGMENT REVENUES OUTPACED UNDERLYING VEHICLE PRODUCTION
ADVANCED SAFETY & USER EXPERIENCE
$ Millions
SIGNAL & POWER SOLUTIONS
$ Millions
REVENUE
7%1
$1,034 $1,121
4Q 2019 | 4Q 2020 |
- Active Safety Up 18%
- User Experience Up 4%3
EBITDA2
(1%)
$165 | $163 |
4Q 2019 4 | 4Q 2020 |
- ~(4%) price declines
- Supply chain inefficiencies
17%1 | ||||
17% | ||||
$2,571 | $3,101 | |||
$441 | $515 | |||
4Q 2019 | 4Q 2020 | 4Q 2019 | 4Q 2020 | |
• High Voltage Up 126% | • Higher sales volume growth | |||
• CV & Industrial End Markets Up 11% | • | Higher COVID-related operating | ||
expenses and supply chain inefficiencies |
- Revenue growth excludes impact of foreign exchange, commodities and divestitures; see appendix slide for organic growth rates
- Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP
- User Experience revenue growth including Displays up 2%
- Excludes automated driving investments of $40M, which were transferred into the Motional autonomous driving joint venture in Q1 2020
11 4Q 2020 Earnings | February 3, 2021 | Aptiv
2021 Macro Overview
GLOBAL VEHICLE PRODUCTION UP 10%; SUPPLY CHAIN CHALLENGES EXPECTED TO ABATE 2H'2021
Adjusted Growth At The Midpoint of Guidance1
• | • | ||
NORTH AMERICA | 35% of Revenue; Copper: 3.20 | EUROPE | |
FY 2021 | • | Further restocking of | FY 2021 |
26% | 16% | ||
depleted inventories | |||
Aptiv | • | Favorable new truck | Aptiv |
13% | and SUV mix | 10% | |
Production | Note: South America 1% of Revenue | Production | |
34% of Revenue; EUR: 1.18
- Production recovery despite component supply issues
- Strong take rates in Active Safety and High Voltage
•
CHINA 22% of Revenue; CNY: 6.75
FY 2021
• Expecting production
2% at~25M units
Aptiv | • | Lapping strong demand |
1% | from Q2-Q4 2020 | |
Production | Note:Total Asia Pac 30% of Revenue | |
1. Revenue growth excludes impact of foreign exchange, commodities and divestitures Note: Regional revenue % based on 2020; FY21 currency and commodity estimate
12 4Q 2020 Earnings | February 3, 2021 | Aptiv
2021 Guidance
CONFIDENT IN FULL YEAR OUTLOOK
($ Millions, except per share amounts)FY 2021 GUIDANCEFY 2020
REPORTED REVENUE | $15,125 - 15,725 | $13,066 | |||
Adj. Growth %1 | Growth Over Market | ~16% | ~6% | (9%) | 10% | |||
EBITDA2 | $2,325 | - 2,475 | $1,621 | ||
EBITDA Margin | 15.4 - 15.7% | 12.4% | |||
OPERATING INCOME2 | $1,540 | - 1,690 | $867 | ||
Operating Margin | 10.2 - 10.7% | 6.6% | |||
EARNINGS PER SHARE2 | $3.35 | - 3.85 | $1.94 | ||
EPS, excluding Motional equity loss | $4.20 - 4.70 | $2.30 | |||
OPERATING CASH FLOW | ~$1,850 | $1,413 | |||
- Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures
- Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP
13 4Q 2020 Earnings | February 3, 2021 | Aptiv
FY 2021 COMMENTS
- Vehicle production up 10%
- AS&UX Up 13% GoM, S&PS Up 4% GoM
- ~($100M) COVID-related operating costs
- ~($80M) of new supply chain inefficiencies
- Higher depreciation and amortization
- Higher performance more than offsets $150M of austerity measures
- ~12% adjusted tax rate
- Motional JV equity loss ($240M)
- Restructuring cash of ~$160M
- Capex ~$750M / ~5% of sales
Aptiv Business Segments
INDUSTRY LEADING PORTFOLIO OF ADVANCED TECHNOLOGIES ALIGNED TO SAFE, GREEN AND CONNECTED MEGATRENDS
2021 GUIDANCE
ADVANCED SAFETY & USER EXPERIENCE
REVENUE | EBITDA MARGIN2 |
~$4.4B | ~13% |
+13% GoM1
SIGNAL & POWER
SOLUTIONS
REVENUE | EBITDA MARGIN2 |
~$11.0B | ~17% |
+4% GoM1
ADVANCED SAFETY &
USER EXPERIENCE
Up ~13% GoM1
2021 REVENUE
ACTIVE~$15.4B SAFETY
Up 35%
HIGH
VOLTAGE
Up 50%
SIGNAL & POWER SOLUTIONS
Up ~4% GoM1
CV & INDUSTRIAL
END MARKETS
Up 10%
- Adjusted Growth over Aptiv weighted market. Revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures
- Adjusted for restructuring and other special items; see appendix for detail and reconciliation to US GAAP
14 4Q 2020 Earnings | February 3, 2021 | Aptiv
2019 vs. 2021 Business Drivers
RECOVERING 2019 MARGIN LEVELS IN 2021 DESPITE ONGOING OPERATIONAL INEFFICIENCIES
REVENUE1
$ Millions
2% Price | ||||||||||||||
Declines | ||||||||||||||
(10%) | ||||||||||||||
Production | $15,125 | |||||||||||||
- | ||||||||||||||
$14,357 | $15,725 | |||||||||||||
$13,066 | ||||||||||||||
2019 | 2020 | Market | GOM | FX/Comm | Price | 2021 Guide |
EBITDA2
$ Millions, % of Sales
~$180 | 2% Price | |||||||||||||||||
~$300 | Declines | |||||||||||||||||
25% | Restructuring | ~($180) | ||||||||||||||||
Conversion | Savings: | FX / Comm: | ||||||||||||||||
$100M | 15.4-15.7% | |||||||||||||||||
15.7% | ($40M) | |||||||||||||||||
$2,325 | ||||||||||||||||||
$2,254 | - | |||||||||||||||||
12.4% | ||||||||||||||||||
$2,475 | ||||||||||||||||||
$1,621 | ||||||||||||||||||
2019 | 2020 | Sales | Performance Motional Joint | Price | COVID / | FX / Other 2021 Guide | ||||||||||||
Volume | Venture | Supply Chain | ||||||||||||||||
Costs |
1 Revenue growth excludes impact of foreign exchange, commodities and divestitures
2 Adjusted for restructuring and other special items; margin calculations based on reported revenue; see appendix for detail and reconciliation to US GAAP
15 4Q 2020 Earnings | February 3, 2021 | Aptiv
Cash Flow Generation
SUSTAINABLE BUSINESS MODEL CONVERTING MORE INCOME TO CASH
OPERATING CASH FLOW
$ Billions, Free Cash Flow Conversion1
100%+
86%
2021 KEY DRIVERS
RESTRUCTURING CASH OUTFLOWS
Restructuring activity reflects further footprint rationalization
DISCIPLINED CAPITAL EXPENDITURES
$1.6
~$1.85
$ | Capital spending stable at 5% of sales; supports future |
growth opportunities |
$1.4
2019 2 | 2020 | 2021E |
- Defined as (Operating Cash Flow - Capital Expenditures) / GAAP Net Income
- As reported. Does not exclude Mobility investments
ACCRETIVE CAPITAL DEPLOYMENT
Increased cash flow adds further flexibility to capital deployment plans
16 4Q 2020 Earnings | February 3, 2021 | Aptiv
Summary
INNOVATION AND EXECUTION DRIVING RECOVERY OUTPERFORMANCE
CONTINUED RECOVERY OUTPERFORMANCE
Well-positioned for continued recovery outperformance despite near-term challenges
STRONG EXECUTION ON STRATEGY Advancing our vision by strengthening our business foundation and seeding next wave of growth
DELIVERING SUSTAINABLE VALUE CREATION
Culture of continuous improvement delivers consistency of execution and results
17 4Q 2020 Earnings | February 3, 2021 | Aptiv
APPENDIX
YoY Revenue Growth Metrics
4Q 2020 | 2020 | |
Reported net sales % change | 17% | (9%) |
Less: foreign currency exchange and commodities | 3% | - % |
Less: divestitures and other, net | - % | - % |
Adjusted revenue growth | 14% | (9%) |
Reflective of management estimates due to integration of businesses | 4Q 2020 | 2020 |
Reported Revenue Growth | 17% | (9%) |
Signal And Power Solutions Reported Revenue Growth | 21% | (8%) |
Advanced Safety And User Experience Reported Revenue Growth | 8% | (13%) |
Adjusted Revenue Growth1 | 14% | (9%) |
Signal And Power Solutions Adjusted Revenue Growth1 | 17% | (7%) |
Advanced Safety And User Experience Adjusted Revenue Growth1 | 7% | (12%) |
Organic Revenue Growth2 | 13% | (9%) |
Signal And Power Solutions Organic Revenue Growth2 | 16% | (8%) |
Advanced Safety And User Experience Organic Revenue Growth2 | 7% | (12%) |
1 Adjusted revenue growth excludes impact of foreign exchange, commodities, and divestitures.
2 Organic revenue growth excludes impact of foreign exchange, commodities, acquisitions and divestitures.
19 4Q 2020 Earnings | February 3, 2021 | Aptiv
YoY Revenue And Adj. OI By Segment Walks
4Q 20202020
($ millions) | Revenue | OI Adj | Revenue | OI Adj | |
4Q | 2019: Signal And Power Solutions | 2,571 | 304 | 10,302 | 1,274 |
Volume, net of contractual price reductions | 428 | 160 | (768) | (451) | |
FX and commodities | 102 | (13) | (12) | (26) | |
Operational performance | - | (47) | - | 32 | |
Other | - | (46) | - | (67) | |
4Q | 2020: Signal And Power Solutions | 3,101 | 358 | 9,522 | 762 |
4Q | 2019: Advanced Safety And User Experience | 1,034 | 84 | 4,092 | 274 |
Volume, net of contractual price reductions | 65 | (1) | (530) | (260) | |
FX and commodities | 22 | 13 | 11 | 20 | |
Operational performance | - | 11 | - | (39) | |
Other | - | 11 | - | 110 | |
4Q | 2020: Advanced Safety And User Experience | 1,121 | 118 | 3,573 | 105 |
4Q | 2019: Eliminations And Other | (9) | - | (37) | - |
Volume, net of contractual price reductions | (1) | - | 8 | - | |
FX and commodities | - | - | - | - | |
4Q | 2020: Eliminations And Other | (10) | - | (29) | - |
4Q 2019: Total | 3,596 | 388 | 14,357 | 1,548 | |
Volume, net of contractual price reductions | 492 | 159 | (1,290) | (711) | |
FX and commodities | 124 | - | (1) | (6) | |
Operational performance | - | (36) | - | (7) | |
Other | - | (35) | - | 43 | |
4Q | 2020: Total | 4,212 | 476 | 13,066 | 867 |
20 | 4Q 2020 Earnings | February 3, 2021 | Aptiv |
Non-US GAAP Financial Metrics
($ millions) | 4Q 2020 | 4Q 2019 | 2020 | 2019 |
Net income attributable to Aptiv | 299 | 230 | 1,804 | 990 |
Interest expense | 39 | 41 | 164 | 164 |
Other (income) expense, net | (6) | 15 | - | (14) |
Income tax expense | 55 | 30 | 49 | 132 |
Equity loss (income), net of tax | 43 | (3) | 83 | (15) |
Net income attributable to noncontrolling interest | 16 | 11 | 18 | 19 |
Operating income | 446 | 324 | 2,118 | 1,276 |
Restructuring | 18 | 30 | 136 | 148 |
Other acquisition and portfolio project costs | 4 | 26 | 23 | 71 |
Asset impairments | 6 | - | 10 | 11 |
Deferred compensation related to acquisitions | 2 | 8 | 14 | 42 |
Gain on business divestitures and other transactions | - | - | (1,434) | - |
Adjusted operating income | 476 | 388 | 867 | 1,548 |
21 4Q 2020 Earnings | February 3, 2021 | Aptiv
Non-US GAAP Financial Metrics
($ millions) | 4Q 2020 | 4Q 2019 | 2020 | 2019 |
Net income attributable to Aptiv | 299 | 230 | 1,804 | 990 |
Interest expense | 39 | 41 | 164 | 164 |
Other (income) expense, net | (6) | 15 | - | (14) |
Income tax expense | 55 | 30 | 49 | 132 |
Equity loss (income), net of tax | 43 | (3) | 83 | (15) |
Net income attributable to noncontrolling interest | 16 | 11 | 18 | 19 |
Operating income | 446 | 324 | 2,118 | 1,276 |
Depreciation and amortization | 208 | 178 | 764 | 717 |
EBITDA | 654 | 502 | 2,882 | 1,993 |
Restructuring | 18 | 30 | 136 | 148 |
Other acquisition and portfolio project costs | 4 | 26 | 23 | 71 |
Deferred compensation related to acquisitions | 2 | 8 | 14 | 42 |
Gain on business divestitures and other transactions | - | - | (1,434) | - |
Adjusted EBITDA | 678 | 566 | 1,621 | 2,254 |
22 4Q 2020 Earnings | February 3, 2021 | Aptiv
Non-US GAAP Financial Metrics
($ millions, except per share amounts) | 4Q 2020 | 4Q 2019 | 2020 | 2019 |
Net income attributable to ordinary shareholders | 283 | 230 | 1,769 | 990 |
Mandatory Convertible Preferred Share dividends | 16 | - | 35 | - |
Net income attributable to Aptiv | 299 | 230 | 1,804 | 990 |
Adjusting items: | ||||
Restructuring | 18 | 30 | 136 | 148 |
Other acquisition and portfolio project costs | 4 | 26 | 23 | 71 |
Asset impairments | 6 | - | 10 | 11 |
Deferred compensation related to acquisitions | 2 | 8 | 14 | 42 |
Gain on business divestitures and other transactions | - | - | (1,434) | - |
Debt modification costs | - | - | 4 | - |
Debt extinguishment costs | - | - | - | 6 |
Transaction and related costs associated with acquisitions | - | 5 | - | 5 |
Gain on changes in fair value of equity investments | (10) | - | (10) | (19) |
Tax impact of adjusting items (a) | - | (3) | (22) | (18) |
Adjusted net income attributable to Aptiv | 319 | 296 | 525 | 1,236 |
Adjusted weighted average number of diluted shares outstanding (b) | 283.28 | 256.36 | 270.70 | 257.39 |
Diluted net income per share attributable to Aptiv | 1.04 | 0.90 | 6.66 | 3.85 |
Adjusted net income per share | 1.13 | 1.15 | 1.94 | 4.80 |
Less: Impact of Motional equity loss | 0.16 | - | 0.36 | - |
Pro forma - Adjusted net income per share | 1.29 | 1.15 | 2.30 | 4.80 |
- 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.
-
In June 2020, the Company issued $1,150 million in aggregate liquidation preference of 5.50% Mandatory Convertible Preferred Shares (the "MCPS") and received proceeds of $1,115 million, after deducting expenses and the underwriters' discount of $35 million. Dividends on the MCPS are payable on a cumulative basis at an annual rate of 5.50% on the liquidation preference of $100 per share. Unless earlier converted, each share of MCPS will automatically convert on June 15, 2023 into between 1.0754 and 1.3173 shares of Aptiv's ordinary shares, subject to further anti-dilution adjustments. For purposes of calculating Adjusted Net Income Per Share, the Company has excluded the anticipated MCPS cash dividends and assumed the "if-converted" method of share dilution (the incremental ordinary shares deemed outstanding applying the "if-converted" method of calculating share dilution are referred to as the "Weighted average MCPS Converted Shares" on the next slide). The Adjusted Weighted Average Number of Diluted Shares Outstanding assumes the conversion of all 11.5 million MCPS and issuance of the underlying ordinary shares applying the "if-converted" method
(method already applied for U.S. GAAP purposes of calculating the weighted average number of diluted shares outstanding for the year ended December 31, 2020) on a weighted average outstanding basis for all periods subsequent to issuance of the MCPS. We believe that using the "if-converted" method provides additional insight to investors on the potential impact of the MCPS once they are converted into ordinary shares no later than June 15, 2023.
23 4Q 2020 Earnings | February 3, 2021 | Aptiv
Shares Outstanding
(millions) | 4Q 2020 | 4Q 2019 | 2020 | 2019 |
Weighted average ordinary shares outstanding, basic | 270.03 | 255.31 | 263.43 | 256.81 |
Dilutive shares related to RSUs | 0.88 | 1.05 | 0.44 | 0.58 |
Weighted average MCPS Converted Shares | 12.37 | - | 6.83 | - |
Adjusted weighted average ordinary shares outstanding, including dilutive shares | 283.28 | 256.36 | 270.70 | 257.39 |
24 4Q 2020 Earnings | February 3, 2021 | Aptiv
Non-US GAAP Financial Guidance Metrics
($ millions) | 20211 |
Net income attributable to Aptiv | 917 |
Interest expense | 154 |
Other expense, net | 29 |
Income tax expense | 166 |
Equity loss, net of tax | 223 |
Net income attributable to noncontrolling interest | 15 |
Operating income | 1,504 |
Restructuring | 95 |
Other acquisition and portfolio project costs | 16 |
Adjusted operating income | 1,615 |
1. Prepared at the estimated mid-point of the Company's financial guidance range.
25 4Q 2020 Earnings | February 3, 2021 | Aptiv
Non-US GAAP Financial Guidance Metrics
($ millions) | 20211 |
Net income attributable to Aptiv | 917 |
Interest expense | 154 |
Other expense, net | 29 |
Income tax expense | 166 |
Equity loss, net of tax | 223 |
Net income attributable to noncontrolling interest | 15 |
Operating income | 1,504 |
Depreciation and amortization | 785 |
EBITDA | 2,289 |
Restructuring | 95 |
Other acquisition and portfolio project costs | 16 |
Adjusted EBITDA | 2,400 |
1. Prepared at the estimated mid-point of the Company's financial guidance range.
26 4Q 2020 Earnings | February 3, 2021 | Aptiv
Non-US GAAP Financial Guidance Metrics
($ millions, except per share amounts) | 20211 |
Net income attributable to ordinary shareholders | 854 |
Mandatory Convertible Preferred Share dividends | 63 |
Net income attributable to Aptiv | 917 |
Adjusting items: | |
Restructuring | 95 |
Other acquisition and portfolio project costs | 16 |
Tax impact of adjusting items (a) | (7) |
Adjusted net income attributable to Aptiv | 1,021 |
Adjusted weighted average number of diluted shares outstanding (b) | 283.59 |
Diluted net income per share attributable to Aptiv | 3.23 |
Adjusted net income per share | 3.60 |
Less: Impact of Motional equity loss | 0.85 |
Pro forma - Adjusted net income per share | 4.45 |
1. Prepared at the estimated mid-point of the Company's financial guidance range.
- 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 charges were incurred.
- In June 2020, the Company issued $1,150 million in aggregate liquidation preference of 5.50% MCPS and received proceeds of $1,115 million, after deducting expenses and the underwriters' discount of $35 million. Dividends on the MCPS are payable on a cumulative basis at an annual rate of 5.50% on the liquidation preference of $100 per share. Unless earlier converted, each share of MCPS will automatically convert on June 15, 2023 into between 1.0754 and 1.3173 shares of Aptiv's ordinary shares, subject to further anti-dilution adjustments. For purposes of calculating Adjusted Net Income Per Share, the Company has excluded the anticipated MCPS cash dividends and assumed the "if-converted" method of share dilution. The Adjusted weighted average number of diluted shares outstanding assumes the conversion of all 11.5 million MCPS and issuance of the underlying ordinary shares applying the "if-converted" method on a weighted average outstanding basis for all periods subsequent to issuance of the MCPS. We believe that using the "if-converted" method provides additional insight to investors on the potential impact of the MCPS once they are converted into ordinary shares no later than June 15, 2023.
27 4Q 2020 Earnings | February 3, 2021 | Aptiv
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Aptiv plc published this content on 03 February 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 February 2021 13:23:05 UTC.