Sensata Technologies Holding plc (NYSE:ST) Q2 2020 Earnings Conference Call July 28, 2020 8:00 AM ET Company Participants Jacob Sayer - Vice President, Finance Jeff Cote - President and Chief Executive Officer Paul Vasington - Chief Financial Officer Conference Call Participants Mark Delaney - Goldman Sachs Deepa Raghavan - Wells Fargo Bharat Daryani - JPMorgan Matt Sheerin - Stifel Wamsi Mohan - Bank of America Brian Johnson - Barclays Joseph Spak - RBC Capital Markets Craig Hettenbach - Morgan Stanley Tim ...

: ' SENSATA SECOND QUARTER 2020 EARNINGS PRESENTATION July 28, 2020 Forward-Looking Statements and Non-GAAP Measures Safe Harbor Statement This earnings release contains "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995, which relate to future events and are subject to risks and uncertainties. The forward-looking statements, which address the Company's expected business and financial performance and financial condition, among other matters, may contain words or ...

Financial Performance - In Q2 2020, the company's net revenue declined by 33.9% organically, with a sequential improvement expected in Q3 and Q4 unless further COVID-19 impacts occur [91]. - The company reported a net loss of $42.5 million for Q2 2020, compared to a net income of $73.4 million in Q2 2019 [100]. - For the three months ended June 30, 2020, industrial and other net revenue decreased by 15.5% year-over-year, with an organic decline of 14.6% after excluding foreign exchange impacts [114]. - Aerospace net revenue declined by 39.4% for the three months ended June 30, 2020, and by 21.1% for the six months ended June 30, 2020, on both reported and organic bases [116]. - Operating loss for the three months ended June 30, 2020, was $1.9 million, a decrease of $149.3 million or 101.3% compared to the prior year, primarily due to lower revenues and increased operating costs [132]. - The company reported a net loss/income adjusted for non-cash items of $160.7 million for the six months ended June 30, 2020, compared to $331.9 million in 2019 [144]. Cost Management and Restructuring - The company generated $170.3 million in operating cash flow for the six months ended June 30, 2020, while implementing cost reduction measures that saved approximately $21.8 million [94]. - The Q2 2020 Global Restructure Program is expected to impact approximately 980 positions and incur restructuring charges between $35.0 million and $39.0 million [95][96]. - Annualized savings from the Global Restructure Program are projected to be around $49 million by 2021, with expected savings of approximately $7 million in Q3 2020 [98]. - Restructuring charges related to the Q2 2020 Global Restructure Program are expected to be between $35.0 million and $39.0 million for reductions-in-force and between $8.0 million and $10.0 million for site closures [128]. - Total operating costs and expenses for the three months ended June 30, 2020, were $578.4 million, representing 100.3% of net revenue, compared to $736.3 million or 83.3% of net revenue in the same period of 2019 [119]. - Cost of revenue as a percentage of net revenue increased to 71.5% for the three months ended June 30, 2020, compared to 65.1% in the prior year [119]. Market Outlook - The automotive market in North America and Europe is expected to grow sequentially in the latter half of 2020, with China showing a 4.3% increase in the automotive end market in Q2 [107]. - The company expects HVOR end markets to improve sequentially in Q3 and Q4 2020, following better-than-expected growth in the China on-road truck market [109]. - The company expects industrial markets to continue to decline for the remainder of the year, but at a lesser rate than in the second quarter [115]. - The company anticipates that the aerospace aftermarket will return to growth as air traffic resumes, while defense production is expected to remain steady [117]. Cash and Liquidity - As of June 30, 2020, the company held cash and cash equivalents totaling $1,242.9 million, an increase from $774.1 million as of December 31, 2019 [142]. - Net cash provided by operating activities for the six months ended June 30, 2020 was $170.3 million, down from $252.2 million in the same period of 2019, primarily due to lower operating profitability [144]. - Net cash provided by financing activities included $400.0 million from the drawdown on the Revolving Credit Facility, with share repurchase payments decreasing from $168.2 million in 2019 to $35.2 million in 2020 [147]. - As of June 30, 2020, the company had $3,689.1 million in gross indebtedness, which includes finance lease and other financing obligations [148]. - The company believes its current liquidity sources will be sufficient to fund operations and capital expenditures for at least the next twelve months [152]. Impact of COVID-19 - The COVID-19 pandemic caused significant disruptions, including full or partial shutdowns of facilities, impacting operations globally [168]. - The company is experiencing supply chain interruptions and logistics challenges due to the pandemic, affecting overall business operations [169]. - The pandemic has increased the likelihood of financial downturns, potentially leading to increased bankruptcies and decreased sales in served industries [170]. - Transitioning employees to remote work has heightened cybersecurity risks, including increased phishing attacks and unauthorized information dissemination [170]. - The company may face challenges in obtaining a consistent supply of raw materials at stable pricing levels due to pandemic-related disruptions [170]. - There is uncertainty regarding the pandemic's long-term impact on financial performance, with potential material adverse effects on results [171]. Internal Controls and Compliance - As of June 30, 2020, the company's disclosure controls and procedures were deemed effective at the reasonable assurance level [162]. - No changes in internal control over financial reporting occurred during the three months ended June 30, 2020, that materially affected internal control [163]. - The inherent limitations of internal controls mean that even effective systems can only provide reasonable assurance regarding financial statement preparation [164]. - The company does not expect ongoing legal proceedings to materially affect its financial position or cash flows [165]. Research and Development - R&D expenses decreased due to temporary salary and furlough cost savings, as well as repositioning actions taken in 2019 [123]. - Anticipated capital expenditures for fiscal year 2020 are approximately $120.0 million to $130.0 million, expected to be funded from cash on hand [146].

Sensata Technologies Holding plc (NYSE:ST) Q1 2020 Earnings Conference Call April 29, 2020 8:00 AM ET Company Participants Jacob Sayer - Vice President of Finance Jeff Cote - CEO and President Paul Vasington - CFO Paul Chawla - EVP, Automotive Business Vineet Nargolwala - EVP, Industrial, HVR & Aerospace businesses Conference Call Participants Wamsi Mohan - Bank of America Merrill Lynch Samik Chatterjee - JPMorgan Craig Hettenbach - Morgan Stanley Amit Daryanani - Evercore Mark Delaney - Goldman Sachs Shawn ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ FORM 10-Q _________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2020 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the t ...

: " | --- | --- | |-------|----------------------------| | | | | | | | | SENSATA FIRST QUARTER 2020 | | | | | | PRESENTATION | APRIL 29, 2020 Forward-Looking Statements and Non-GAAP Measures Safe Harbor Statement This earnings release contains "forward-looking statements" within the meaning of the Private Securities Litigation Act of 1995, which relate to future events and are subject to risks and uncertainties. The forward-looking statements, which address the Company's expected business and financial perf ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 __________________________________________ FORM 10-K __________________________________________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 001-34652 __________________________________________ SENSATA TECHNOLOGIES HOLD ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ FORM 10-Q _________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For t ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _________________________________________________________________________________ FORM 10-Q _________________________________________________________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the tr ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _____________________________________ FORM 10-Q _____________________________________ (Mark One) ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-34652 ______________________________ ...