APTIV SUPPLEMENTAL HISTORICAL FINANCIAL RESULTS

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Transcription:

APTIV SUPPLEMENTAL HISTORICAL FINANCIAL RESULTS

Overview Basis of Presentation The historical amounts within this presentation are presented on a pro forma Aptiv continuing operations basis, which gives effect to the spin-off of Delphi Technologies PLC ( Delphi Technologies ) and reflects Delphi Technologies historical financial results as discontinued operations for all periods presented. Amounts within this presentation were derived from the Company s unaudited consolidated pro forma financial information filed on Form 8-K with the Securities and Exchange Commission ( SEC ) on December 7, 2017, and should be read together with that filing, as well as with Aptiv s Form 10-K for the year ended December 31, 2016 and Form 10-Q for the period ended September 30, 2017. Use of Non-GAAP Financial Information This presentation contains information about Aptiv s financial results which are not presented in accordance with GAAP. Specifically, Pro Forma Adjusted Operating Income, Pro Forma Adjusted Operating Income Margin, Pro Forma Adjusted Net Income and Pro Forma Adjusted Net Income per Share are non-gaap financial measures. Pro Forma Adjusted Operating Income represents net income before interest expense, other income (expense), net, income tax expense, equity income (loss), net of tax, income (loss) from discontinued operations, net of tax, restructuring, other acquisition and portfolio project costs, asset impairments and gains (losses) on business divestitures, and presented within this presentation on a pro forma basis to give effect to the spin-off of Delphi Technologies. Pro Forma Adjusted Operating Income margin is defined as Pro Forma Adjusted Operating Income as a percentage of Net sales. Pro Forma Adjusted Net Income from continuing operations represents net income attributable to Aptiv before restructuring and other special items, including the tax impact thereon, within this presentation on a pro forma basis to give effect to the spin-off of Delphi Technologies. Pro Forma Adjusted Net Income Per Share attributable to Aptiv represents Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the period. Management believes that these non-gaap measures are useful to investors in assessing the Company s historical performance on a basis that excludes the results of operations of Delphi Technologies, and better explain the Company's results of operations in a manner that allows for a more complete understanding of the underlying trends in the Company's business. Such non-gaap financial measures are reconciled to the most directly comparable GAAP financial measures within this presentation. Non-GAAP measures should not be considered in isolation or as a substitute for our reported results prepared in accordance with GAAP and, as calculated, may not be comparable to other similarly titled measures of other companies. 2

Non-US GAAP financial metrics Pro Forma Adjusted OI ($ millions) YTD Q3 2017 2016 2015 2014 Net income from continuing operations attributable to Delphi Automotive PLC $1,099 $1,152 $1,188 $1,309 Less: Spin-off of Delphi Technologies ($285) ($318) ($375) ($417) Pro Forma Income from continuing operations attributable to Aptiv $814 $834 $813 $892 Interest expense $103 $155 $124 $131 Other expense, net $22 $384 $114 $42 Income tax expense $88 $167 $161 $146 Equity income, net of tax ($24) ($35) ($16) ($21) Income from continuing operations attributable to noncontrolling interest $27 $34 $39 $35 Pro Forma Operating income from continuing operations $1,030 $1,539 $1,235 $1,225 Restructuring $101 $167 $65 $88 Other acquisition and portfolio project costs $11 $57 $45 $20 Asset impairments $2 $1 $7 $7 (Gain) loss on divestiture - ($141) $8 - Pro Forma Adjusted operating income from continuing operations $1,144 $1,623 $1,360 $1,340 3 Memo: Net sales from Aptiv continuing operations $9,444 $12,274 $10,864 $11,083 Pro Forma adjusted operating income margin from continuing operations 12.1% 13.2% 12.5% 12.1% Note: Prior period amounts include Mechatronics.

Non-US GAAP financial metrics Pro Forma Adjusted EPS ($ millions, except per share amounts) YTD Q3 2017 2016 2015 2014 Net income from continuing operations attributable to Delphi Automotive PLC $1,099 $1,152 $1,188 $1,309 Less: Spin-off of Delphi Technologies ($285) ($318) ($375) ($417) Pro Forma Income from continuing operations attributable to Aptiv $814 $834 $813 $892 Adjusting items: Restructuring $101 $167 $65 $88 Other acquisition and portfolio project costs $11 $57 $45 $20 Asset impairments $2 $1 $7 $7 (Gain) loss on divestiture - ($141) $8 - Debt extinguishment costs - $73 $58 $34 Reserve for Unsecured Creditors litigation $10 $300 - - Transaction and related costs associated with acquisitions - - $42 $6 Contingent consideration liability fair value adjustments - $3 ($7) - Tax impact of adjusting items (a) ($11) ($70) ($21) ($17) Pro Forma Adjusted net income attributable to Aptiv continuing operations $927 $1,224 $1,010 $1,030 Weighted average number of diluted shares outstanding 268.23 273.70 286.64 301.89 Pro Forma Diluted net income per share from continuing operations attributable to Aptiv $3.03 $3.05 $2.84 $2.95 Pro Forma adjusted net income per share $3.46 $4.47 $3.52 $3.41 Pro Forma adjusted net income per share at 15% normalized tax rate (b) $3.25 (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 charges were incurred. (b) Represents pro forma adjusted net income attributable to Aptiv continuing operations presented with a normalized effective tax rate of 15% for the nine months ended September 30, 2017, which management believes is a useful measure for investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. 4 Note: Prior period amounts include Mechatronics.

Non-US GAAP financial metrics Ex-Mechatronics financial results ($ millions, except per share amounts) Pro-Forma Aptiv Continuing Ops. 1 2016 2015 Net sales from Aptiv continuing operations $12,274 $10,864 Pro Forma Adjusted operating income from continuing operations $1,623 $1,360 Pro Forma Adjusted operating income margin 13.2% 12.5% Pro Forma adjusted net income per share $4.47 $3.52 Less Mechatronics divestiture 2016 2015 Net sales $285 $295 Adjusted operating income 2 $87 $93 Net income per share 2 $0.27 $0.27 Pro forma Aptiv Continuing Ops. Ex-Mechatronics 3 2016 2015 Net sales from Aptiv continuing operations Ex-Mechatronics $11,989 $10,569 Pro Forma Adjusted operating income Ex-Mechatronics $1,536 $1,267 Pro Forma Adjusted operating income margin Ex-Mechatronics 12.8% 12.0% Pro Forma adjusted net income per share Ex-Mechatronics $4.20 $3.25 (1) As calculated and reconciled to US GAAP on previous slides. (2) Adjusted for restructuring and other special items. (3) Represents pro forma financial results for Aptiv continuing operations, presented on a pro forma basis for the spin-off of Delphi Technologies as well as the divestiture of the Mechatronics business in 2016. Management believes such measures are useful for investors and management in understanding our ongoing operations and in analysis of ongoing operating trends. 5