APTV - Earnings call transcript Q1 2018

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Operator

Ladies and gentlemen, thank you for standing by. And welcome to the Aptiv Q1 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. And after the speaker's remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. the to turn President, Rosman, now Relations. Investor will conference Elena over Vice I

Elena Rosman

of reconciliation morning, the thank today's restructuring To items Crystal. joining release. Good from consistent financials is can future performance you. for filings. Thank of And other of exclude we reflects between ir.aptive.com. our at our continuing actual disclosure included in cite quarter the presentation today's our will Aptiv. which and And earnings non-GAAP XX-K and actual be with forecasted different and view found GAAP measures slide financial a the Aptiv's prior The performance, you special and Please XXXX for statements, that conference Form of along and call. current calls, back SEC operations other follow with today's reasons presentation, our address slides two review first which forward-looking for press everyone and may on Aptiv's in materially see be

will and today Kevin XXXX that, on Massaro, Clark. Kevin the more Clark, Joe and to and Vice CEO; Senior would then and I results for to detail. CFO Kevin provide be us and Joe business, call like a financial over strategic will will the our Aptiv's update the outlook President Joining With cover in President. turn

Kevin Clark

as to for begin our developments for will quarter business highlights the outlook Joe, Elena. everyone. new financial across you us. providing Thank am Thanks as by first morning, take full quarter, through portfolio. Good second going the joining then the you, recent well the including results first our for from and and the awards year. key detailed quarter, I

and of Aptiv a over the all share operating end in billion X%, milestones. expanded Our agreement capabilities We our nine great KUM, points an continuation some business Earnings components record intelligence functionality. accretive companies high XXXXs want business, in was XX% across continued operating will in income position supporting per Aptiv. market. year per generation fields, And awards to the magazine of We're portfolio. at artificial recognizes $X engineered to Revenue our increased I share, by new Pacific first competitive bolt-on above Award strengthen positive position of margins which up to driving earnings acquire dedicated most to Operating a to was our features and XX.X%. Aptiv important vehicle revenue and our highlight the next enabling addition innovative the autonomous trends, market. underscoring an reached Asia Fast new of also had and Fast quarter guidance to XX growth start QX technology the transportation as solutions top that leadership both range. the the one our and to the developing lastly, totaled achievement commercializing Company with recognized reflect and results in new Company

Turning four. to slide

which we're a had in in $X segments. see And on side our billion. while customer can the growth and further safe, mega of I left As track from awards of green we is alignment start which chart, highlight robust with trends, driving both and our Safety strong the Solutions User over Advanced Experience bookings last connected awards billion. customer totaled the new Power to significant lumpy you exceed bookings levels segments, and can mentioned the year's portfolio These of and $XX.X be to the year quarter-to-quarter, both Signal to on

a than including strong part at to ADAS XX% in have technology, up and leadership more we're Aptiv fast with growing in of result continues one of positions the awards large Level Our two seeing foundation grow multi-year areas we as the success a advance customer ramp upon, rate. that to market compounded significant Safety, the in where is build

growth customers, As next the Level years. commercial and nicely on on over development user two a $X XXXX, result, a few uptick automated, our request totaled is bookings in also with We're experience the three program opportunities OEM market. our principally active billion Level experiencing since Level substantial and safety proposals strong supported Level $X cumulatively which Infotainment in billion which dovetail bookings XXXX. four for mobility, from five focused plus totaled since and for continued demand

line per growth strong Our continue revenue gives for awards XX% this at next the product will of pace years. the in year backlog of roughly that us confidence few

& Signal Power to Solutions. Turning

X engineered includes are $X over several That digit high awards into connectors, customer over revenue will the awards voltage business of customer XXXX. growth booked for mid decade. summary, billion has $XX billion for experts now over that end business of new to high two growth since single In billion electrification next voltage XXXX, by translates in years. components industry positive these to vehicles Our years. the and high be trends robust revenue million give nearly the which last electrified which beyond translated confidence us the new into continue And new has XX of bookings of accelerate estimating

the growth over five. connected consecutive and and and software and the deliver We're Advanced which Advanced driven has XX% more in each nine to User expertise over we're central growth Advanced in in the user highlights gesture and competency and building forward. of Leveraging mobility segment are going by Experience strong enabling in user to segment advanced enhance Safety continue the by two The integrated are monitoring necessary develop the infotainment their years, Safety our last for driving safety selected today's development of provide technologies XX% our and strategic portfolio future on functionality technologies, content an of in and driver for annual consumer's in blocks BMW industry with will confident overall growth automated extension growth, existing revenue starting Aptiv focusing control in solutions. fact that platforms series had compute deep double-digit driving our user vehicle. to systems, experience systems experience. annual The Experience quarters active leading segment strong in-cabin to slide Safety, three of Turning is User with partnership five and this and the required experience vehicles, of experience BMW to was

and we're we're one that driving. systems point, let's ADAS to on for customers As Level Underscoring become software traditional power safer, for automated serves for the more building necessary navigate our providers vehicles architectures leveraged enable computing blocks four vehicle two and vice the connected, is work functionality in versa. solutions being that five new advanced mobility increased a demand need the Level OEM The Level as today automated turn to on six. for three driving and our slide customers and doing helping the

thoughtful, Lyft's on center our Together, will just the steps will Aptiv opened automated as announced the next XXX center. the app equipped and newly go riders Level Lyft tech platform across American lab to these important four today. Level five and well in XX our Las Vegas delivering these manner, Las as a to North are basis these These driving while via be driving for Today, mobility We for customer automated as our in safe vehicles to of will available on invaluable function Aptiv's and vehicles operations commercialization and self-driving technologies. view our with deployments an in revenue pay fleet public like traditional autonomous and the a gathering development as center, we of data accelerate prudent to for deployment opt-in ride-hailing Our in automated importantly the ride, market, driving on innovation as global AMod insights command vehicles learn autonomous demand an vehicles Vegas. also and showcase driving commercialize operationalize to path rides the for and how approximately of streams. to first opportunities addition test solutions best we

seven. slide to Turning

speed in was robust Leveraging translates to in segment backlog electrical and XX% over $X architectures, next notable significance Our technologies the and leading the geographic in Signal the growth distribution This revenue for data of business, points since the & continued programs from mobility. engineered bookings business our a Revenue the revenue car business both necessary the growth enable power several on high to in revenues volumes. Power the of single mix, by Solutions this and voltage of next-gen growth mid requiring more our the in focused increasing new the than XXXX. in in portfolio bringing of which cumulative awarded future of years, high billion high seven automotive offset bookings platform QX. solutions, end high experienced growth we market, our which voltage industrial is X% strong architectural growth American QX, digit over driven segment new North markets. balanced revenue growth, very launches passenger and components weakness also benefited result in X% what five is

in And of accretive Antaya, the slide our including and and HellermannTyton, nuTonomy engineered Unwired as more active strengthened bolt-on We've MVL, has events technologies number Ottomatika further few including to acquisition, eight. and safety of Turning technology have several position components business. portfolio complementing which our driving. our for such positioned and enhancing acquisitions, automated years better growth, completed a profitable past over transactions that Aptiv faster

In Control-Tec Movimento of and our services connected to addition foundation the are which platform.

Antaya the our provided markets. components a our significant in and our end diversification. strategy the bolt-on region. the high The adjacent of our of expanded regional and and remains the presence voltage portfolio and providing Asia MVL in A proprietary acquisition customer, market allocation further significant position the engineered acquisitions As acquisitions connector industrial on market in Unwired further focused addition growth in technologies reminder, end enhanced of space, part strengthens capital of Pacific also HellermanTyton opportunities

of another acquisition a slide a confident enhances our that acquisition. for cable is We're nine. the management of to KUM bolt-on Pacific leading market. overall great a is of automotive solutions example The competitive Asia applications. company and connectors range in manufacturer The position Turning

close transaction of the consistent with the the expect in track second are year record to our the space. half synergies that with We in

better and acquisition to In XXXX. And continue EBITDA for growth. the As profitable for earnings we and to a the to XXXX. per that, results summary, and faster, take over our strategy company our increased result, be share with in we modestly Joe? the execute to through first expect stable us quarter the to margins position I'll to call Joe more hand guidance accretive

Joe Massaro

quarter. XX.X% we quarter Thanks, ahead related end Kevin. the to of into million in the due flow support high of on of first you vehicle And XX. nine financials requirements previous up but revenue FX income of margins Operating the some of down accelerated and over billion, up or the back Starting consistent flow-through of take was was lower guidance everyone. morning, revenue commodity in Earnings the ramp guidance. guidance production, was points growth increased expectations, XX%, with payments line slide with acceleration of X% with $XXX $X.XX the year February quarter. working year And $X.XX when share $X.X recap above million of launches. and provided per the account Results program capital our $XXX reflecting cash good spin-related new were in over on of with operating with operating mid-point the the to in

and points related Volume revenue From regional Slide passenger world, in market XX XX due a the year-over-year. walks lagging XX. to higher to And million down and FX and strong our quarter. technologies. in quarter, commodity loss, to settlement than lapping launch growth lapping prior year EPS XX. in over was higher on XX%. saw China the quarter in conversion including improving we perspective car our Half major note, slide price new Advanced in North in X% the we tax commercial million rates as positive we the you'll segments, underlying spending saw of FX hedge prior over approximately by commodities expected. approximately stronger while XX% the of favorable price to despite a remainder XX% a $XXX double-digit XX% market Safety yielded Turning growth and FX stronger $X.XX the $XXX rate a in year and were past walk operating American to discussed expanded both up Stronger accelerated higher to on we've normalized of of higher investment production, Experience and improvement which per the although related earnings $X.X expected the income regions XX% from was of volume share operating the and operating offset dilutive the more to and pass-throughs. modest production range of the are and the in in mobility Sales of shown billion was income revenue commodities than margins. as repurchased of sales income above quarter, was shares take slide quarter. within year. driven XX.X% midpoint saw Margins robust up to performance on and all upside share were the our in count on X.X XX%, back our our the also $X.XX for million basis downs User growth volume operating guidance,

and expanded excluding of or the a by conversion volumes settlement investments, reported next on quarter driven year's quarter of higher item. and Operating infotainment, and last Advanced strong rates a of segments the XXX by on User impact basis on volume the growth which globally safety the commercial XX% the new active and XX% lapping basis warranty points grew in margins XXX respectively. mobility the points in revenue slide. take strong revenues Safety and launch Moving driven in Experience to XX% grew

operating the Our and million Advanced $XXX to the beyond. totaled and quarter In outlook. track consistent in total planned approximately the Safety is positioned in year growth roughly we well previous for summary, on segment XXXX in Experience in remain continued mobility increase for investments million $XX User our with spend leverage and and

Operating Power and slide. quarter in launch an next adjacent new in engineered volume overcoming the by and platform markets were the Signal strong Turning Revenues robust on X% Solutions were up growth changeovers components to driven the with America. and basis headwinds. passenger dilutive performance as than unfavorable offset commodity of more points favorability the volume North XX in impact and car in price margins initiatives up weakness and quarter,

XXXX operating revenue year, margins. market trends, of higher improved our - we In quarter upside stronger to reflected light the single-digit year you FX yielding and continue our performance addition by in raising with driven income left, sales walk expect on are For revenue revenue the can for to we outlook pass-throughs. and stronger mid-single-digit XX. the see performance, and launches as operating in growth Starting slide new the volume commodity first strong and

range billion to year, our increasing to be billion As in the a from up of to result, to we expected now [ph] X% range the X% X%. X% sales and to are $XX,XXX are $XX,XXX for adjusted growth

Moving to the right.

which Our XX% outlook margin updated billion operating the the $X.XX Diving the chart deeper the outlook for income volumes of year. sales commodities, modest a higher for from at again next driven growth to reflects dilutive well benefit slide. and by $X.XX midpoint, see as is can revised overall year as FX billion the the our you rate to as on into from

We are X%. production targeting global vehicle up

XX% assumptions for of rate assumes tax to share year, range no rate earnings $X.XX our are midpoint to Our the now the there's $X.XX for $X.XX. the the CapEx over at and XXX. euro in remainder from $X.XX prior change the approximately billion, range $X.XX of unchanged Therefore, from $X.X in per expected roughly up up is outlook now Operating to per cash of XXXX year. at $X mid-teens up be up and expected guidance with flow share,

on midpoint roughly production expected For at to X%. X% growth are up the the revenues second be quarter of

basis and $X.XX including operating expect up XX margins to XX% tax We XX% XX the XX%, range expand points to $X.XX, to rate. approximately to of a in EPS

XX. slide Moving now to

expand of achieved planned new or us portfolio record new confident cases, strengthen continue bolt-on have synergies allow it and and growth, record. page we're on each this acquisitions and relates our of like as been has In to and have flow, accretive to of exceeded we integrating our the acquisitions penetrate into a We listed markets. all customers track that acquiring we earnings build execution upon to cash KUM, track ones will and and strong the to

investments Turning to levels, our strong enable we earnings record I'm digit and cost about incremental breakeven say margin you've expansion structure, repeatedly, growth. me lower us to of are and the double our maniacal heard our next fund growth track slide. allowing sure

for and the as costs vibrant evaluated U.K. and strong we to months, location, eliminating effectively will plan the our by the while technology going Ireland Aptiv operations Dublin towards of operations few to our spin-off working single we're to hand that Our into the continue the for non-engineering consolidate to the announce options corporate track, consolidate goal XXXX. relocating fit European talent of the strong into I'd these reducing being removed back to number to powertrain corporate a we his our The for past stranded costs of leverage in call footprint global from and us a company's remain Dublin, remarks. consideration, allow functions Also and Kevin these to on the end base headquarters non-manufacturing after a relocation forward. thorough our hub pleased With local for And location. to like single decision of streamlining move closing a over

Kevin Clark

Thanks Joe.

bookings on momentum as of the Let before it XX their Customers strong us years. expectations for slide our performance to the me are increasingly strong last quarter turning quarter reflected partner over choice and portfolio. by earnings few looking Q&A. summarize revenue delivered our with over both as Aptiv by across driven above in new another business and

And relentlessly future invest as competitive deliver in and basis and cash finish organic further flow capture to growth X% XXXX to cost guidance by and and XX% that share our we markets. With Q&A. including our opportunities and let's to line outside to the expansion in inorganically XXXX growth. earnings to margin structure great margins, the X% strong to up We on business to XX points increased of and improving remain to grow and focused organically the per year said, efficiencies to to reinvest expand Joe our driving start and remain XX% us open returns. confidence leveraging operational strengthen foundation, Our committed our new for gives for continuing both in XX modes business earnings expand shareholder growth

Operator

of from with Markets. Our RBC first comes Joseph line Instructions] the Capital question [Operator Spak

Joseph Spak

Thanks.

sort city revenue First with that you like? on So the earlier? Is look in about that you sharing question any the details and Lyft more would mentioned deployment could agreement. be provide the how just agreement separate I guess, is would from conjunction of

Kevin Clark

Sure, Joe. start Joe and in. I'll can chime

you in pilot CES road of Lyft we As know, Las on in on we'll cars a going Lyft the roughly it had from more network. a the to during we where where vehicles with had guess and that of January XXXX XX an This as Vegas is permanent structure road. the XX on to expand I forward relates extension cars

network their connectivity So fleet manage apps an an technologies. us for it's use it into continue relates to enhance XX to us consumer continue customers. to Lyft or for as us to to vehicles with their for for It's to opportunity to apps a plug underlying commercial of opportunity our

driving As actually the revenue it is for It relates don't to opportunity of quite automated however generate to into revenue first sharing, ride. frankly. to get that our want I details

step big to it So Joe, a we you view want add? as forward.

Joe Massaro

covers that think I all.

Joseph Spak

for from higher of back And million the That's $XXX a cash the capital cash the And Joe of dividend balances the below on Delphi. are XX% just free guidance Okay. spent allocation, cash maybe ops or bit flow then sort from year. you KUM. million about with so little already on the $XXX

good what a just a bit about do of sort the the or cash? of you you want talk So M&A it have pipeline like to and firepower. more plans seems you with little Can the amount still

Kevin Clark

Yes.

business, in good We'll the remains it's the of place, opportunities Capital Joe, good. dividends KUM So will the second the philosophy quarter. allocation invest unchanged. we believe funnel - looks in half competitive. close M&A question. in are

buyback gave the about $XXX shares cash. $XXX some You're opportunity to us also million in million right about worth in QX. And

even opportunities to some deal multiple Really balanced us continue the on over going in is the in We'd of synergies perspective. is year be our in That that's sixes to to connector from as there, big it's I and for think stay close. We'll a six I It we're And we HellermanTyton. It's portfolio. coming take very get But integration some the that side. think we spot. as going still a we're able the month and very able attractive into a quarters sort KUM some do be leverage really that to some well expect next M&A business see synergies. fits timeframe with There's past. that overlap integrate one as post to really is to a So our have us sweet quickly. from very well.

kind kind like deal more of the of. of to like certainly, would the So do deal we'd and

Joseph Spak

Thanks.

Operator

the Our next Brian Barclays. comes from of question with Johnson line

Brian Johnson

bookings, of numbers active just of quarter? is there active rates that? globally Safety Is favor trend, your on Take the business seeing more other B In the a driving us give infotainment, infotainment, what take is improved rates mix? and Advanced User And in A what on in and impact advanced which kind take little kind help B? to plus were mid-to-high A there of was it during a that safety in product a And infotainment detail growth new you in you that Could rates organic more Experience. safety that's trend it then features features specifically. or is just

Kevin Clark

Yes.

Brian. start I'll So

and I it infotainment, to relates you're take seeing ramp active safety think overall both as in up a rates.

levels consistently growth so growth growth. areas infotainment times growth, the top look revenue relates the in two seeing the and strong our of to in mid-level historical at of continued end strong revenues, pretty stream strong have levels, product XX% so revenue our in our have product between a very high, the very to bookings been it in systems. systems, don't I growth rates, Take for line the my growth quite XX% off head, actually like but been consistent the when As several in And mid-level you slower low bookings that is frankly last biggest in within systems you're we've where years.

well mix active the On two. as safety extent, decipher surgically to And some as side, to penetration. new of it's wins difficult it's a the

we have an ago XX. five years few example, customers as we with. had I safety So active believe had business we a Today, that

across some a new of are of So is number programs, customers, penetration who significant that further that customers some programs. existing expansion introducing of on is

So but active area less north of markets one rates sorts of you XXX% from to again, tends that. want the those When one growth in other to safety, to growth rapid a Europe to advance look years. next regions and XX% be to have we Joe Level Level it's where some an transition where level continue the expect we two. - in active safety it at of systems. see certainly over level America to? you of and And growth very couple sophisticated There North China high support plus and more are the activity in of customers Level one bookings is to sort around

Joe Massaro

No, covers that I it Brian. think

multiple they we as particularly Kevin active seeing they're as exactly platforms are figure versus growth get volume a across rate safety hard move out. But said. As take moving in both little to does

about incredibly and $XXX level QX. I for bookings in XXXX. other thing safety We full XXXX million That's be bookings active to of year strong. The mentioned continue the booked

wins. is we over bookings again the term. number is and is booking that again - marketplace, strong longer the very with we to very expect this trajectory are that business expect a big customer strong just the positioned very So lumpy for a but that in quarter continue And well and grow that always continue to to is

Brian Johnson

mean a does what for So book-to-bill? that

Kevin Clark

of active quarter in the revenues reference million. we had just quarter just in yes almost $XXX million just alone, safety booked we under first of almost on book-to-bill point and Well lastly did $XXX the we

Joe Massaro

$XXX million yes.

Brian Johnson

organic of what growth for for midterm imply rate rate is X? ASU and launch just does growth this just And kind the take

Kevin Clark

growth double-digit segment solid growth rate. You're -

Joe Massaro

growth yes. Segment rate,

continue. As we plus this to XX% active Kevin plus mentioned safety, expect XX%, for

Brian Johnson

kind power some signal any on programs around architecture And senior solutions, just the final of and level in question become actually progress when those next and executive of over might bookings? gen kind discussions of

Kevin Clark

is to it a as relates lot Yes there discussions.

So a stages. don't roughly OEs in take half today of dozen we're them European, that I know place rare in transitional workshops most

more like First to a Controllers of the particular then to consolidation it architecture. sheet consolidation stage it area as that relates cleaner be and going approach vehicle relates I area controllers, in guess a safety second Integrated it'll within as Cockpit like kind to

see so. the a we discussion first at of - growth or XXXX a from and standpoint of the or But kind be out for topic rolled we look over really, So XXXX the kind is vehicle of a lot next were broader then stage architecture. happening side, will out customers more integrated year significant have really and on three rolling

There of domains adds to a I domains Integrated both Cockpit fact to multi versus typical standpoint, two. and a and and domains a number does cost a CES the reviewed and with you savings think number we functional connect mass Controller safety We from is in XXXX. that that you the can lot eight today Brian and number in a platform which it what crosses our did controller of around interest at investors it of standpoint, customers capability. does saving our of that CSP

at strategic great a seat is at standpoint really deal discussion deal there So a interest, importantly of forefront quite I BMW of one are automotive much frankly success our with so and frankly customers all of from customers. table who us us think the across a And reasons a the of the gets for technology. have it it's like seen great dialogue, great you've quite

Brian Johnson

Okay. Thank you.

Kevin Clark

Thanks.

Operator

Chris ISI. with from McNally line Our Evercore the next question of comes

Kevin Clark

Chris. Hi,

Chris McNally

guys. Great morning, results. Good

Kevin Clark

Thanks.

Joe Massaro

Thanks.

Chris McNally

across the the single My growth the SBS cadence question's on digit GM the you've change of and the over. given -

guide? at the changeover fair as of Is QX confirming low will that's mind like that fair looks It strong just be then X%. again? get sort broadly stronger. sort interpretation a I clearly though You for high of digits. a So QX a is single something result the QX of and of think to it was if wouldn't year QX point the

Joe Massaro

during think sort X%. Chris year We from a this call But we it's the through I little for around but growth little up steady growth a We for it's the bit X% march. year Yes, right the tick at the a an maybe see year. it of perspective. be a we'll it bit it round march adjusted numbers business so about of the year. five segment a X%, see QX fairly think steady higher, ending a the fairly of is you're

Chris McNally

then a fantastic. longer question. term That's just And Okay.

some to if XG a seeing take clearly we're plan can there through this we as it if mean of chance as EEG, you potentially both? pickup would standard. look we So ECG the is business I at see XXXX? the And we Is in so connectivity see that upside plans. Ford's your businesses pace of approach electrical a the some or XXXX flow in

Joe Massaro

about enables relates what XXXX. it So yes, been connectivity it's I would - as Chris for XXXX, it, think is when you architecture to the plans say right. have XXXX, years most really of vehicle laid connectivity

that that's term given for segment. we've reflected guidance I So the think medium in

systems that would business affect management so bias business. Now and you see having It would business, that, would wire and an our see if you business, there connector our rapid be affect rates Electrical distribution our affect higher electrical three. our take more cable it in if said Architecture upward all adoption harness would

Chris McNally

Thanks guys. much so Great. Okay.

Operator

Deutsche Rod Our Lache comes with Bank. the from next line question of

Rod Lache

morning, Good everybody.

Kevin Clark

morning, Rod. Good

Joe Massaro

Rod. morning, Good

Rod Lache

a couple had questions. I of

this in kind you've about a that's revenue going sounds like it and since applicable Investor won of midterm beat XXXX-XXXX And billion of XXXX it to $XX you seems your talked year. no longer at like target Day you're billion. it First $XX

to might the looks there booking comment you how share the market term in So What's your And on high that your at in market voltage. I hoping can on any related what you targets. what's provide point? this you're like about color longer thinking and active safety was opportunity share

Joe Massaro

fundamental mean Yes, Signal about and safety Active to guidance from business those are, redo and going Rod. high here. of very a Day businesses Power doing some where is the We're we're well. voltage. long-term obviously not perspective Investor broader very The good infotainment obviously feeling key I

the in half see prepared electrical adjacent my HellermannTyton. of market business side to As really remarks, things the growth continue industrial the I mentioned business good like of in within that,

not taken feel to confidence continue. give to that for And and we're numbers. XXXX. have numbers certainly up continue expect very So out obviously confident But the to the going would

comment Kevin make a active attractive high comment then space. voltage safety. continues to High be voltage can to, and it the I relates As on will on a very

business Solutions XXXX play, although to You've feel off heard us base in voltage, we in and bookings worth grow talk of strong to presence about well we $X expect Power given over it growing right a our in since billion have XXXX. XX% that a small very high Signal

That's and side. business. Solutions reasonable us Power the goal to just feels play certainly to and given hold signal low-voltage internally us the in you've over the for in to that's a low people our expectation segment voltage got for where set that's voltage in or do we add and position have effectively $XXX business million out believe, stake we so market So ability XX%, to ultimately on a that and margins we the growing high

Kevin Clark

Yes.

based So I to we're connectivity stronger the I ago. on we're it of vehicle augment guess safety what what areas year one bias electrification I'd would our seeing right way is I view comment on Joe's than maybe say in in active seeing like based vehicle think the

we confidence confident know, say gave those foreign that that numbers there in us what feel I that, like projections underlying So multiple affect mix. more like that prices, like exchange items numbers obviously people. But said is Having gives rates, decisions the in on as that commodity guess OE would those even I more we we communicated. you

to the the NuTonomy. area our software the Ottomatika controller And we that that like around in as vehicle look automated bring ADAS tell on bookings in you from based relates to I or end that significantly incremental on we'll where two well feel think radar, number and space capabilities and as from it like we ADAS, we're getting the it's like driving at And we're safety We to and number in top roughly architecture systems well we wins put close experience as XXXX one, five benefit radar four at that capabilities space. ourselves in perception the number when an our we principally the players doing based as vision, at today. As XXXX. expertise benefits having you in and

little $X than than bookings, we'd in line less So expect or to a booked we which significantly active of the we a in booked year is same the what this book less years. previous is we've billion safety bit more little booked what all and roughly which year, last than higher what

Rod Lache

this bookings have you voltage for Do year? target for a high

Kevin Clark

bookings fact first and a voltage activity we a but booked around and million. $XXX necessarily bookings, for expect in We close to We target is lot voltage high there really of that quarter high year. would don't in a bookings to strong the have the have

we billion. As close point $X last booked of year reference to a

in that we more XXXX. expect range or So be in to

Rod Lache

And about your up growth the average? below high market ups. something quick but like X%, X% China at Is to two you for or X% And you're your over voltage share did talking just above from segment year, in follow QX secondly, X%.

reason in So slow market quarters? the the over is growth coming there any specific why would

Joe Massaro

Yes.

reason. there Rod, QX. think volume in came our is rates in launch the I and I no take That the specific Listen, was quicker up guide. think

we original had of year. to our a for relative QX quicker a there the always So little strong. bit we sort got outlook

given little some call over growth markets to in overall production out think to quarter in and comps just the I a extent quarter year-over-year. changes tricky

that be we quarter. full-year. very still to specific it's where the outs it's the would the - I we more the but sort the be of moment in of segment ins nothing think there, say strong the growth be a So minus. and with or in probably it's the again, say for ins beyond points to and outs probably moment, our of China X electrification We're think of I We of would at at line market market some sort matter going should and a plus and above confident quarterly X will comps. just than

Rod Lache

Great. you. Okay. Thank

Joe Massaro

Thanks.

Operator

from of Baird. David Our Leiker next question with line the comes

David Leiker

everyone. morning, Good Hey.

Kevin Clark

morning, David. Good

Joe Massaro

morning. Good

David Leiker

Pacific you mix of Asia non-automotive? I called KUM out business that the know between automotive acquisition, the On customers high and voltage customers. What's

Kevin Clark

automotive. All

automotive an that's all one, So David.

David Leiker

All?

Kevin Clark

Yes.

it's about So go another that's manufacturers. to China. round number XX% XX%, There's Korean in XX% plus, XX going -

some OE. we've a We've known business. us known run run well gives local individuals, And while. presence maintaining in It relationships. Simon PAC for nice Asia some the very team a gives connector by business done led had the So China a those individuals us our there, it family of job

to so again, we came be business know sale the it's the effectively, we're - business. able capacity. in be the good basis a as going almost And to It's from to that up So we opportunity exclusively deal material it business integration. actually our but need power buy past we helpful on on an with for a will from of for of perspective which there's a we've the a synergies where that size will savings majority of help like come the perspective And placing is lot done think from. going in

David Leiker

Great. in are They when do successive newest how think a Okay. ready and like you over automakers the a to pervasive order. the be just And the and seems the top car years how of is? six a coming the the and But control there. of next, technology go item, some line next of you happening Class. BMW filter the and market technology historically on whatever just the that the that X do you is Series then down seem the A it's the car second of interior seen is the much in on think things mentioned Mercedes on going it X would we've And other

Kevin Clark

think a I give number. it's Listen, to precise tough Yes.

think those were I with technology certainly It's command brand a oriented happening can price. and more. OEs that happening have it's

or seeing pervasive say seven or It's XX German I'd now the with it the is Audi. across our start premium more And So most vehicles, right. David broader brands. I that of you're series right. luxury to where of We're used you're Class we're the that's with with lineup think the S

David Leiker

Thank you. Okay.

Kevin Clark

Thank you

Operator

question line next America with from comes of John Our Bank of Lynch. the Murphy Merrill

John Murphy

morning, guys. Good

Kevin Clark

are how you? John, Hey,

John Murphy

you? Good. are How

Kevin Clark

Good.

John Murphy

purchase Just rates acquisitions, because over you about understand a trying to bolt-on really are when core I business and that first question coming mean, much you what consistently here. to this on your it's means and it's for are at talk which then very of correct? R&D time, organic that growth of kind growth, growth a just when but it additive funded market these organically. sort M&A and think And of I are look that, it's guys

thing we're somewhere kind organic between of a and it's So twitchy acquired?

Joe Massaro

Yeah.

time We in is want be point. with close. closed. just we It's not close of that your I the deals - until at issues in part to don't going any KUM world. think the guide in organic close. this expect it the growth put We to takes the HX It to

one connective it's it's the of more integrated quickly will deal think probably I So, It's the it's too. that business. business. XXXX And to particularly an impact relative numbers, of a large but that not be to connector important

yes, larger rate what growth at of event are we year businesses deals as that extent again X% rate given will certainly acquisition. that's size first And to done number effectively. significantly So, from HellermannTyton, size growth doing. organic like in the a the the this move out of deal did growth to we after its that point past just market the That's called our we've in the that the for organic above KUM that our X% we're

John Murphy

future just when mean, some into that's some of was and degree could very trying in I that like pipeline organically, is to funded these are being it upside just strong, seems when getting coming you about being what your funded a of your conservative numbers? seems real I it I guess, fairly get understanding talk at be it's acquisitions future to growth you're mean M&A organically fair about you your was I semantics. it I at, talk there kind kind you question rate projections statement. like if are being is the

Joe Massaro

I right can is buy at that R&D Yes, you purchased acquisition a if of make and you're that like guess way. kind an effectively that presuming look it's it

on. and acquisitions, guidance any include given we've here acquisitions given think include we've historically does not doesn't we've not that the closed I

KUM numbers. is the in So not

John Murphy

Okay. That's second very just helpful. a question. And then

As about may American of from which passenger away the we North shift in think be sort globally. followed cars market the

a a being that there's have hastily canceled business? risk of higher programs as lower in to or are that some vehicles to these platforms? of investment sort more more opportunity means content exited of And of or level you your that's a and and real means potentially curious if Just what and what

Joe Massaro

is Listen, this while. working Yes. through something for and a we've been preparing

content the what that is particularly right. to watching million us little long-term over revenue and means work how higher end a on the you're you on model passenger about quickly as a SUV think I Ford talking closely. for We'll XXX we're is better through announcement obviously year. car profile get The for them Ford a truck us we're SUVs.

- we number certainly a feel when million it. that them. than they managed We sort was bigger work through we like could and period. FCA with quickly a of So FCA it's fairly to was and three-year $XXX plug work over that and through pulled over

their over truck folks we and think some is as like to with others the opportunities - more we've well and of SUV particularly and So there for upside Ford several got on also do some time. platforms

Kevin Clark

it couple years as and trend addition Kevin. trend we frankly to a Starting quite trend. this And in of Yes. SUV really versus we North American John ago, the car global watch passenger is truck. a our closely on to started view

So look SUV we globally. look focus bookings, at as team or refocus pursuits, we the really team as at trucks the increase we the of on

relates is position a certainly announcement as manage in going lengthy a over Ford recent we're like feel time. to transition we it period through said Joe fairly to of the as So to which

decision Joe of As near-term position term last bit FCA real should mentioned, car feel and But a year quickly was more good a we longer out manage in exit it. little from like a we're That through to was to production. challenging. benefit passenger

John Murphy

logistics owns they being should last or I the vehicles? the out Lyft say Who sort Fleet And there? Aptiv managed physically question those on service Okay. out Great. how just Fleet and of then one Lyft are Vegas. in And just and

Kevin Clark

Yes.

have fleet we globally. that road sites the the today the of with have on vehicles today, So we XXX

of north Las network, part Vegas. in those. have We be the managing owning those, Lyft a we're full XX will of we're XX But

more to about in or that And day quite we fleet something business That's it we'll with party a our there the frankly fleet whether a on are experienced be do are behalf. we'd evaluate customer. the than where manage to we actually a our manage day something or parties that's fleet As gets third that third third behalf party larger they that on part are having standpoint. who from of discussions management a as their

Joe Massaro

I of are And the to Kevin's an extension think point the test - XX fleet. John these cars,

We we'll the the systems. software and So own through and operate obviously of them. updating still the go perception

would that finance those like were something as assets. those cars. expect those to its our is before there are about folks keep we'll talked to sheet. moment, given more perspective nature from own a we've there put We But that and As in wouldn't grow this to balance we at out scale, its think certainly size the

John Murphy

drivers there now, correct? I is for are right that for those vehicles, safety assume And

Joe Massaro

use configuration be Yes. will see. Yes They'll drivers. you a normal at be safety to there

obviously So will in for yes so cars working to of these But those engineers two be with XX ride, we're commencement our beyond two there and that. the car move car. operations performing folks on the

John Murphy

very you Thank much. stuff. Great,

Operator

the comes question line David next You Goldman Tamberrino with Sachs. of from

David Tamberrino

Vegas, vehicles XX how Great. setup. wondering I'm morning. because good there Lyft? be cities? in going you like a additional this want Could good I seems you to just follow Hi, up see progressing to with

Kevin Clark

additional entering we're so We cities - focus demand with be providers. Lyft. multiple our discussions in Listen, cities on mobility and could with

for you with out City XXXX announced well. the entering David, be Las vehicles in in or know, will with as others of Vegas. will as We partnership in They the XXXX think I other we partnership be cities. rolling

globally, opportunities and operating really really on in U.S. in pursuing in with well so doing Europe Asia. parties the as we're cities and it multiple focused So as

expand have we'll pretty that in we and think today upon. that's footprint LTA, partnering Singapore with we the operate I - to something a big Singapore, continue

different So we're looking partner we're saying, within a answer of looking in - number winded long providers. to

David Tamberrino

looking vehicles forward? to both customer on of that mean, is pretty you've going concept hailing the monetize from proof the side, seems development from more going are to well how standing these the side. as It solution. still as you harvesting on I this be for like autonomous data you're facing up ride just What's decent the got a that and Right. sensor suite

Kevin Clark

Obviously, Las vehicle. Well, well facing today customer and today, outstanding that's they doing it's is they have and the the architecture. us That's job. expertise vehicle for do what Lift. and the we're the Vegas experience software is where It's as in as the an where -

do and of We our continue because to get it to target driver quickly the is out we as can. as to do the this car

to some that and this an vehicle or point, then really cost opportunity related development So as commercially dollars view we or to today of to fund help collect the to development, activity software development a Joe's development. offset

Joe Massaro

in say it on if way went be nuance, of the road we the the or Vegas, technological not commercial that you of is were back but David, testing Yes. would frame would this overly cars applications testing to had a rides time all the year Lift two, technology application, a I I I the the cars to mobility so, setting, could think, right. we're this, and start pilot, what's right. first more automotive do it makes a it's on than These to you. you pilot them, And run of but where if test, or call demand a you that best an practice sense get commercial how to ? adoption pilot a on in consumer the

David Tamberrino

and on quote interwoven. trying active different flat million, you really take validated into luxury, their for to of next straight helpful, out does. how just to about looks adoption come the... OEM Are how out, because more awards, you're products year-over-year. safety all annualizing just the what's My are think different question, that long on that that put in premium to then about understand that Okay. It's the to and a have just partners you pace seeing to it product mass seeing $XXX No, it it from like it's announcements does it probably road market just you you the OEMs, once

Joe Massaro

the depends on OEs. Well, product, it it safety across with on penetration the board depends is OE, active the

David Tamberrino

Yes.

Joe Massaro

is of on I So their cars. every every solutions. one, But luxury, safety's as level OE putting solutions well we'll active differentiate as as ADAS guess, mass to market, the

with, in it those it's their advanced penetration vehicle the three year a vehicle, perception averaging reason, award I - putting business customers it's we existing two have safety two the years maybe space that to going with validation. three. validation with years And and - As would there system from system on say have that its and and But we relates OEs are perception The business of that rather new maybe or are and then don't a testing either active or you're through safety we fleet. more active do.

David Tamberrino

very it. helpful. Got Thank you

Joe Massaro

Thank you.

Kevin Clark

Dave. Thanks,

Operator

Lim David next line Our the Fargo with comes Wells from question Securities. of

David Lim

morning Good everyone.

Kevin Clark

Good Dave. morning,

David Lim

I that, you XXXX I is or acceleration is quarter And what for your to I rates? quarters so million electrification Relative XXXX maybe on call. thought a one see electrified the do So said RFQs on maybe two maybe massive a like the in know $XX or or take earlier you mentioned having think little in question maybe have Kevin, ago electrification. vehicles.

Kevin Clark

of quarters. over a couple acceleration an seen we've think don't I Yes,

I all a or in up across so we've our year really ramp think relative high-voltage a ago customers to of regions. RFQs out seen

there on a So a broad I'd vehicles. have is say effort side more to concerted high-voltage much OE portfolio of the

at we year revenues. revenues And revenue Joe XX% foreseeable bookings, mentioned last and you two future bookings from for been year us outlook over strong. see the our increased to as is three our I for been XX% have times this extremely high-voltage think standpoint. ratio quite that high-voltage look book-to-bill over and has a on And as frankly

in as we real. we're America. something that into So a but in about translate seeing there's seeing it's significant it's is that believe something growth Europe And we're that we to it We although also revenue. talk believe going lot well North China it's think as of growth,

Joe Massaro

up we've production year. point share the from use good proxy. to a I of about Kevin's that's happening and good XX% north for X.X it's moved think X% a period. good we about what from time past just the in the of XXXX there penetration production a data perspective support XX% - It's that to they've market of IHS call keyed Yes I'll powertrain what's from a David been year BEB think David, And over XX%. electrified of that past We over to

So in guidepost. reflected. what support I that would outlook they've XXXX tends And would we're to in an today say be seeing our that increase which

David Lim

And two Thanks. Great. just more.

the beginning. autonomous how with startups least And on sort manner in it to you. And lot radar safety where vehicles of trying displace sort design a at is On later. see technology the that that up are how designed of be LiDAR very radar to Thank in would companies technology and you last could moment a at Can about that's question the standpoint. volume the autonoumous from safety guys what and in a a they your we're functional from And together functional of a thinking a you we retroactive easy capabilities just are safety my can will retrofit actually time basis? to standpoint, where follow technologies? about talk hearing put vehicle in where functional

Kevin Clark

So it's Kevin.

questions, a last. Let There David. are of number me start with the

David Lim

it sneak quickly. yes. Sir, wanted just Sorry, as to in

Kevin Clark

to it business longer continue long as there we're you are And vehicle, dependent about aggressively and know it medium so not you as But than replaces less to long-term Listen answers optimize autonomous it Leddar. Leddar. that think So very been and some a really radar listen short necessarily, you on enhance maybe time. as working to radar we've the in for others. radar relates

talk But perception Glenn reiterate are I cost systems have an Leddar. the ways redundancy. you So the our perception have systems. multiple guys that to and upon we high automated here, less have we there that vehicle to if those cat fact, But skin the so relates to it's in radar are an initiative think need to we if [ph] tech dependent driving the very enhance you that that focused think as you today is we important three it

David Lim

you. Got

Kevin Clark

where ADAS it the the experience, think is part as experience overall a controller and we and tied between of it players algorithm and positioned those to who of think the As the the obviously only we're and the and been software than automotive anyone question industry software who that's relates auto ourselves our but stack period the right. Who have architecture not. I we There else. the to those in the out safety of us And that's more have come a experience. experience, industry believes who listen difference have uniquely have autonomous solving in who've relates long of solution part like for equation the to time it driving have the functional think a of

with frankly the competition things of We And OE our years off challenges concurrently vehicle. the together have of smart all the as experience ability the that enhancing effort safety hardware and really together develop the relates we really it quite architecture your sorts level the architecture to two approach the heavy the to customers. perception systems was kicked to systems do driving And ultimately that's those for It and the software of how and business problems ago bring systems. these software concerted solution. the solutions vehicle vehicle autonomous these for optimize in we between now active why then smart effort

you have say we We that would challenge. experience would working hard and don't it say those we're is really, better really than across a all So big if positioned at others it. we're

an don't think as at couple to more know if well. there So least that's your answer I a in of there's two questions. I

David Lim

apparent And and it. mode you. it's No deeper. Thank just you answered deeper becomes Aptiv's that

Kevin Clark

Thank you, David.

Joe Massaro

we time have question. one for more Kevin,

Operator

comes line Michaeli Itay of question Citi. final with Our from the

Itay Michaeli

you. Thank Great.

Kevin Clark

Good morning Itay.

Itay Michaeli

Thanks Good morning. and congrats.

in to have the and label too in mentioned remarks going first this back Power so Slide Solutions, think question past in back Signal XX drove the the on the upside Just despite a what in wondering kind and January North expectations stronger to a kind you America relative I quarter I'm volatility. of growth internally? of you your North on and America just

Joe Massaro

QX the about forecast In we and getting we a the Itay that launches rhythm. it's December until curve had one America over into hard a or some launches starts revenue product first little launches months three talked North everybody is specifically to that just two you is launch Don.

do some that some got we've truck that year. and so will So some delivering on continue right, quarter of the to TX launches the for beyond some the hits even new we're platforms in SX revenue

as I I'll what started So a in the those hit timing when mentioned, would that I the call it to we was just maybe expected for what of of short say more some had guidance. original

Itay Michaeli

helpful going at the remove plan in the then fixed a the on of the update experienced what of one, lift similar root operating to any and be vehicles And is we kind to a the to CES? XXXX? by driver still back That's end with commercialization

Kevin Clark

is Kevin. this Well,

we end XXXX. to initiative driver the or the CES similar frankly. the broader remove lift by so locations, at That may continue So yes, plan broader, point point and part not a definitely system. to is will more although to is of quite multiple It to locations, what of may get had It be vehicles. more

Itay Michaeli

Great. very helpful. That's

Kevin Clark

All right.

Itay Michaeli

Thank you.

Kevin Clark

right. Bye, Itay. All

Joe Massaro

everyone's Thank We time. much. operator. you right, All appreciate very

Operator

concludes today's You're conference welcome. This call.

a may have disconnect, and day. You wonderful now

Aptiv (APTV) 2 May 182018 Q1 Earnings call transcript