Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ FORM 10-Q ___________________________________________________________________________________________________________________________________________________________ ...

Financial Performance - Aptiv reported net sales of $17,489 million for the year ended December 31, 2022, an increase of 12% from $15,618 million in 2021[235]. - The company's operating income for 2022 was $1,263 million, compared to $1,189 million in 2021, reflecting a growth of 6%[235]. - Net income attributable to Aptiv for 2022 was $594 million, slightly up from $590 million in 2021[235]. - Basic net income per share attributable to ordinary shareholders was $1.96 for 2022, compared to $1.95 in the previous year[235]. - The total operating expenses for 2022 were $16,226 million, an increase from $14,429 million in 2021[235]. - The company incurred interest expenses of $219 million in 2022, up from $150 million in 2021[235]. - Comprehensive income attributable to Aptiv for 2022 was $475 million, compared to $463 million in 2021[238]. - Currency translation adjustments resulted in a loss of $198 million in 2022, compared to a loss of $143 million in 2021[238]. Market and Growth Strategy - In 2022, Aptiv's net sales from the Asia Pacific region accounted for 30% of total sales, indicating a key market for long-term growth[15]. - The automotive technology industry is expected to grow, driven by increasing consumer demand for electrified and software-defined vehicles[18]. - The company aims to address the "Safe," "Green," and "Connected" mega-trends, which are shaping the future of the automotive industry[19]. - The company has identified the Asia Pacific region, particularly China, as a key market for growth, focusing on intelligent systems software, advanced driver assistance systems, and autonomous driving technologies[63]. Acquisitions and Investments - The company completed the acquisition of Wind River Systems, Inc. in December 2022 to strengthen its capabilities in software-defined mobility[20]. - Aptiv acquired 85% of Intercable Automotive Solutions in 2022, with an agreement to purchase the remaining 15% starting in 2026[252]. - The acquisition of Wind River Systems, Inc. was completed on December 23, 2022, for total consideration of approximately $3.5 billion, with technology-related and customer-based intangible assets valued at $750 million and $630 million, respectively[220]. Workforce and Talent Development - The company employed approximately 160,000 people as of December 31, 2022, with 53% in North America and 31% in Europe, Middle East, and Africa[37]. - In 2022, over 43,000 hours of leadership and management training were completed by employees, emphasizing talent development[38]. - The percentage of the global workforce represented by women was approximately 50%, with women in management at 24% as of December 31, 2022[41]. Environmental and Sustainability Goals - The company aims to reduce Scope 1 and 2 absolute CO2e emissions by 25% from the baseline year 2019 by 2025[44]. - The company is committed to becoming carbon-neutral in its global operations by 2030 and achieving net carbon neutrality by 2040[44]. - The company targets a 2% annual reduction in water consumption in high-risk (water-scarce) locations[46]. - The company has set a waste recycling target of 80% for the volume of recycled waste divided by total waste volume[46]. - The company plans to source 100% of electricity for operations from renewable sources by 2030[44]. - The company is committed to delivering only carbon-neutral products by 2039, from sourcing to disposal[44]. Supply Chain and Production Challenges - The global semiconductor supply shortage is impacting production in the automotive industry, with supply chain disruptions expected to persist in 2023[55]. - The organization has seen a substantial increase in raw material inventories due to production volatility and semiconductor shortages[33]. - Supply chain disruptions could potentially cause complete shutdowns of customer assembly lines, exposing the company to material claims for compensation[55]. - The company is actively monitoring and managing inventory levels to maximize supply continuity and efficient use of working capital[55]. Financial Position and Liabilities - As of December 31, 2022, the company's non-U.S. defined benefit pension plans were underfunded by $73 million, with total obligations related to these plans amounting to $344 million[73]. - The total liabilities increased to $12,790 million in 2022 from $9,446 million in 2021, a rise of 35%[240]. - Long-term debt increased significantly to $6,460 million in 2022 from $4,059 million in 2021, a rise of 59%[240]. - The company recorded approximately $224 million related to uncertain tax positions as of December 31, 2022[213]. Risks and Market Conditions - The automotive technology and components industry remains highly competitive, with ongoing industry consolidation affecting the number of top competitors[28]. - The automotive industry is experiencing significant volatility, which may lead to further adverse impacts on operating earnings and cash flows[57]. - The company is subject to ongoing pricing pressures from OEMs, with customer agreements typically requiring annual price reductions of 1% to 3%[67]. - A prolonged economic downturn could require the company to seek additional financing, which may not be available on acceptable terms[60]. Research and Development - Total research and development expenses were approximately $1,120 million, $1,030 million, and $1,024 million for the years ended December 31, 2022, 2021, and 2020, respectively[256]. - The company is focused on developing advanced driver assistance technologies and responding to evolving consumer preferences for mobility on demand services[61].

February 2, 2023 APTIV Fourth Quarter 2022 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 caus ...

Aptiv PLC (NYSE:APTV) Q4 2022 Earnings Conference Call February 2, 2023 8:00 AM ET Company Participants Jessica Kourakos - Vice President, Investor Relations & Environmental, Social, & Governance Kevin Clark - Chairman & Chief Executive Officer Joe Massaro - Chief Financial Officer & Senior Vice President of Business Operations Conference Call Participants Rod Lache - Wolfe Research Adam Jonas - Morgan Stanley John Murphy - Bank of America Emmanuel Rosner - Deutsche Bank Itay Michaeli - Citi Mark Delaney - ...

Aptiv PLC (NYSE:APTV) Q3 2022 Earnings Conference Call November 3, 2022 8:00 AM ET Company Participants Jessica Kourakos - Vice President, Investor Relations & ESG Kevin Clark - Chairman and Chief Executive Officer Joe Massaro - Chief Financial Officer and Senior Vice President, Business Operations Conference Call Participants Rod Lache - Wolfe Research Itay Michaeli - Citi Joe Spak - RBC Capital Markets Adam Jonas - Morgan Stanley Chris McNally - Evercore Emmanuel Rosner - Deutsche Bank David Kelley - Jeff ...

Financial Data and Key Metrics Changes - Revenues totaled $4.1 billion, up 9% from the prior year, driven by strong demand across the portfolio [11][26] - Operating income was $213 million, with earnings per share at $0.22, reflecting strong revenue growth offset by material inflation and supply chain disruptions [11][27] - Adjusted EBITDA was $365 million, with operating cash flow at $95 million [27] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience revenues rose 7%, with Active Safety revenue up 21%, while User Experience revenues decreased by 6% due to semiconductor constraints [21][30] - Signal and Power Solutions revenues increased by 10%, driven by high-voltage product line growth of 22% [23][31] - Bookings for Advanced Safety and User Experience reached a record $8.8 billion, while Signal and Power Solutions bookings totaled $5.4 billion [18][20] Market Data and Key Metrics Changes - North American revenues were up 21%, reflecting strong demand, while European production faced significant weakness due to semiconductor shortages [28][29] - Revenues in China decreased by 1.9% due to COVID-related shutdowns, but the company outperformed the market by 7 points [29] - Overall vehicle production is estimated to be 81.5 million units, reflecting a 3% increase over 2021, with European production expected to decline [32][34] Company Strategy and Development Direction - The company is focused on improving profitability and cash flow while investing in growth initiatives, particularly in high-voltage electrification and smart vehicle architecture [10][15] - The acquisition of Wind River is expected to enhance software capabilities and drive future growth [15] - The company aims to balance short-term profitability improvements with long-term growth strategies, including cost reductions and pricing adjustments [10][40] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued constraints on production and inflationary pressures for several more quarters, but remains confident in the company's competitive positioning [8][25] - The company expects to finish the year with strong growth and margin expansion, despite macroeconomic challenges [25][37] - Management highlighted the importance of customer price recoveries and cost-saving initiatives to improve profitability [14][36] Other Important Information - The company has increased its estimate for total price recovery in 2022 to approximately $500 million [34] - The impact of the Wind River acquisition is included in the financial outlook, but the acquisition itself is excluded from revenue estimates [34] Q&A Session Summary Question: Confidence in second half performance and disruption costs - Management expressed confidence in achieving a 32% incremental conversion rate, with an expected $80 million improvement in disruption costs from the first half to the second half [43][44] Question: Future margins for Advanced Safety and User Experience - Management indicated expectations for mid to high single-digit margins in the second half for the Advanced Safety and User Experience segment [47][48] Question: Commitment to Motional and its impact - Management reaffirmed commitment to Motional, highlighting ongoing advancements and commercialization efforts [55] Question: Outlook for Europe and macroeconomic factors - Management acknowledged concerns regarding European macro conditions and semiconductor availability impacting vehicle production schedules [58][59] Question: Clarification on operating income guidance - Management clarified that the lower operating income guidance is primarily driven by European market conditions, while expecting strong performance in North America and China [60][61]

Financial Data and Key Metrics Changes - Revenues totaled $4.2 billion, up 4% from the prior year, despite a 7% decline in vehicle production [7][19] - Operating income was $324 million, with earnings per share at $0.63 [7][19] - Adjusted EBITDA was $478 million, reflecting strong flow through and higher volumes [19] Business Line Data and Key Metrics Changes - Advanced Safety and User Experience (ASUX) revenues increased 7%, reflecting 14 points of growth over underlying vehicle production [15][21] - Signal and Power Solutions revenues rose 2%, reflecting 9 points of growth over market [24] - High voltage revenues increased 10%, driven by electric vehicle program launches [10] Market Data and Key Metrics Changes - North America revenue was up 7%, 8% above vehicle production [20] - European revenue growth was 13%, despite an 18% contraction in vehicle production [20] - In China, revenues increased 14% over a flat market [20] Company Strategy and Development Direction - The company is focused on expanding its portfolio of safe, green, and connected technologies, including software solutions [18] - The acquisition of Wind River is expected to enhance competitive positioning and drive new business opportunities [11][48] - The company aims to strengthen its business model's resiliency and capitalize on the trend towards electrified software-defined vehicles [18][30] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain disruptions and material inflation as significant challenges but expressed confidence in the full-year outlook [8][25] - The company expects to recover lost vehicle production in China in the second half of the year [25] - Management remains optimistic about achieving revenue growth and margin expansion despite current macroeconomic challenges [18][30] Other Important Information - New business bookings reached $6.1 billion, the highest first-quarter level in several years [12] - The company is actively pursuing multiple paths to mitigate material inflation costs, including product redesign and supplier negotiations [22][36] Q&A Session Summary Question: Material pressure in the quarter - The material pressure was around $80 million for the entire business on a year-over-year basis, with ongoing efforts to offset these costs [31][32] Question: Process for clawing back margin pressure - The company is engaged in commercial discussions with customers and suppliers to recover costs, focusing on redesign efforts and sourcing alternatives [35][36] Question: Incremental margins as the world normalizes - Management indicated that while material inflation will persist, costs related to COVID and supply chain disruptions are expected to abate, providing a positive margin outlook [41][42] Question: Business bookings and competitive set with Wind River - The company is experiencing strong commercial momentum due to its unique product portfolio and the increasing demand for software-defined vehicles [47][48] Question: Second half margin expectations - The second half is expected to see improved margins due to volume growth and price recoveries, with a significant difference from the first half [50][51] Question: Semiconductor supplier redesign efforts - The redesign efforts are well underway, with approximately 100 engineers focused on hardware redesign and software changes, expected to take six months to a year [67][68]