APTV - Earnings call transcript Q2 2018

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Operator

Good morning. My name is Crystal, and I will be your conference facilitator today. At this time, I would like to welcome everyone to the Aptiv Q2 2018 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. And after the speakers’ remarks, there will be a question-and-answer session. now Aptiv’s turn Relations. Vice would to call I Rosman, Elena President Instructions] like the to over [Operator of Investor you conference. your may Elena, begin

Elena Rosman

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

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

Kevin Clark

then of quarter, new financial through proving in you I’m detailed as quarter overview results developments second you, customer to outlook Thank of morning, for year. well good by key our Joe our for the Thanks the balance business. recent highlighting us Elena, the and an awards the the will across and going joining as take everyone. be in for today. the

margins free that’s basis and strategy. of free XX% cash increased recording of revenue to over and Earnings income strong XX.X%. second and EPS the XX resulting was expanded market. million Revenue total up operating well XXX growth cash nine points as as million. points reflects share up record our quarter the Operating performance flow quarter momentum increased $X.XX, delivered that’s income, XX%, We execution XXX continued to from Our XX% flow. second XX% to per

New across billion, bringing year-to-date the business over totaled awards revenue the for to X growth total record our billion, portfolio. a outlook supporting XX

delivering acquisitions. In financial two results we the our addition strong during quarter, strengthened product portfolio to with

detail quarter are for cover business On summary, second reached safe shortly. strong to validates more components customer platforms market harsh stuck our we of technologies our slide we'll the which which can First, and closed on of in KUM, interconnected performance translating to a for in you acquire further market expansion, custom to the Winchester, leading advanced our and aligned portfolio enhances and a robustness our model. see into of Asia diversification four, of both in. end are an We business, our transactions Both range engineered increased provide interconnect our competitive broad agreement position mega on our applications. solid trends awards. adjacent solutions engineered In environment strategy provider

X The X As position billion several growth X traditional more substantial customer very plus this Level in with nicely dovetails X ADAS select of of serving and are in principally which Translating advanced the the over driving, the automated mobility This since Level X detail of of over XX% uptick Active revenues leadership activity to in our awards from includes but bookings the are technologies. in with X commercial OEMs. in year double-digit bringing several first just billion our XXXX, into the some of billion market, plus awards discussions record acceleration Beginning totaled We’ve result shortly. XXXX. I'll half XX revenue also quarter, X and the I years. a second reflecting over mentioned, strong which next total our customers, growth largely billion. over players OEM Safety bookings Level with experienced with discuss Level regarding

XXXX, infotainment and continue of line to totaled in X billion user bookings have the Moving experience, the the growth this us product end strong confidence with decade. since will giving revenue beyond

XXXX, Turning including engineered voltage the last bringing for has voltage booked high of of high two customer awards components to our business XX power connectors, customer X billion to solutions, years. signal awards billion new over billion electrification X.X since

pace on XXXX above outlook with XX path to our us half in billion. for continued confidence record us finish first growth. revenue bookings new gives a to a year clear strong puts business Our the And

Turning highlights user and advanced strong experience on five. quarters We’ve starting slide XX to segment and experienced safety double-digit with of growth. consecutive

and in that’s than first increased XX% the Second on Safety XX%, driven XX points and Based revenue growth the to XXXX. we more respectively. lines user in XX% our now quarter infotainment in approximately revenues product Active above growth, XX% growth strong segment half market by expect

Active will overt experience and infotainment over X will As up user revenues over in Safety revenues total already X XX%. reach XX% mentioned, increase billion billion and

new enables have us both of development wins. Active uniquely experience user our advanced driven Safety infotainment often including which several safety solutions, in recent expertise democratization of The compute is and Our business to vehicle software accelerating. and central architecture optimized platforms

awards in new commercial ADAS X same GAC. number right Wall the We’re awarded Level our side the three of from Level of and are increasing. X slide At Great QX Level time, X+ SGM, The the through opportunities with Motors. recent SCA business Systems highlights

next-generation a network generation award to This ensuring and single of Cockpit stack. on the a today’s user win controller required heads-up and Controllers Integrated represents solution, panel, digital the will multiple safety Haval experience. for team SUVs the which and power instrument the China Controllers, cockpit center dashboards, Integrated the both including on conquest WEY display dynamic our operating security functional Cockpit deliver Our secured latest

center to Safety The demanding level and six. the significantly to Value ability that cost scale to Turning programs are willingness the penetration provide functionality. also the down reliable ADAS lower full controller, match to total Premium of up can Active the systems preference advanced optimizing configurations across multi-domain highly and Active or increased into system consumer Consumers centralizing computer scale success are support line-ups the Safety responding, pay. to and can platforms, And features. mass of OEMs feature to our cost. vehicles set lower more Center democratization effectively By and systems requirements Active to can scalable, slide ADAS specified the across been that of we OEMs a Safety primary booking by has with cost safer their driving function from are factors segments. we required vehicle driving the our

a As quickly systems our customers competitive deploy OEM and at levels. price can result, these

Safety above As us X short, our viable in multi-domain ADAS and more very design configuration increase OEMs billion OEMs strong look a in development billion the over expect to with positioning us of approach advanced supports more systems, side to features in XXXX, including sensors of growth while and the for controllers the to winning the be competitive four and our left from Active a way. marketplace, our to fail-safe XXXX $X ADAS even In industry is $X continued in double-digit revenues on in helping slide, representing the leverage the the We to the rate. unique solutions Level economically major future. of their solutions investment optimized operational now well is

the automated through systems We’ve Las over XX X,XXX by on ADAS X our per rides for application of this hours to slide span Lyft rating pick-up customers in locations given doing X. and X near increasing Lyft Level Vegas. OEM XXX The solutions. Level we’re day X.XX and to year-end. XX of of are the X a vehicles rides leveraged Level utilizing over network of running commercial today on are today, and driving XX Turning serving our X earning out X drop-off seven. A Level technology work day, a is perfect is automated per being Roughly rider The Level the network. advanced in traditional deployment current in

services dramatically and driving our potential As Las data substantial flows opportunities leveraging time. interest Further, traffic the platform fleet providing monitor, we’re and be our proving is to to cycles about mobility drop-off our automated frequency and pick-up monetization. additional data development update collecting to Vegas improve of software we’re customers, scales, data diagnose to for

for seeing path services and meet commercialize how Vegas we’re mobility and technology. In of management important improve autonomous partnerships operators regulatory as manner in also Lyft with Tuning in are with Hertz Vegas. Las commercialize with we’re across thoughtful, best targets. stringent significant to slide deployments our XX commercial to how to to mobility provide partnering partners We Consistent eight. more addition, a driving opportunities Las Hertz The vehicle as utilization traditional to step first fleet roughly the that our safe view multiple to an our prudent in and services and work on from learn on-demand develop, our globe. they objectives with fleet operationalize in fleet automated automated increase to connected vehicles

advanced Power mobility. architecture, optimize enable need to to that from Solutions will and more is the vehicle advanced and The segment & which data the continues scalable the future requiring and focused architecture business on vehicle features customer next-generation enable reflected of to is distribution high-power Our awards. shape electrical Signal vehicle technologies benefit high-speed functionality in for

offset weakness result in pace high revenue leading in of growth from passenger and Underscoring growth, American what the in components markets. volumes. high-volume and this quarter, XX% revenues next revenues North win. America, which over launches segment, strong on this revenue continued program, in automotive this second conquest bookings a growth awarded we which the driven Architecture segment growth the Electrical new several a recently car benefited five Revenue industrial translates in in more the points a years position increase business segment truck SUV in is and in our over Our platform industry market end X% the by XX% new are in we new the the engineered than experienced growth North both mid-single-digit in voltage current solid

high provides positions Turning applications. data accelerate around industrial demanding across diversified end boxes. It and market to strategy, Consistent cost ability to the Aptiv’s transferrable articulated Winchester revenues of infrastructure is expertise. specifications interconnect temperature, challenging products Interconnect and markets which the as other harsh slide well need applications most and ways product in failure our XXXX. Joe the solutions nine. accelerate The confident their current vibration acquisition to these enhance the as integration are beat billion are will design of for for products Winchester management discuss environment us and takes the to shortly, many of revenues. a perfectly $X.X end plan the to of all we wants we’re of industrial but market advanced diversification aerospace markets team The in each of Winchester adjacent for serving the some the medical. company’s growth for talented to our right

and through continue brings providing to our XXXX, improving quarter I’ll our a to through of diversification results our business reach. to from execute closer portfolio revenues XXXX. call target non-owned the second goals us and with hand the over for strategy our As by performance, the us our operating we Winchester which overall XX% review cycle to platform product expand increased Joe guidance that, to take With geographic

Joe Massaro

tax the on morning, May continued of revenue up $X.X and production, slide financials a good a vehicle by operational per sales our in driven was nine $X.XX program we of Kevin, higher despite billion, everyone. with provided guidance margins year-over-year XX.X%, and recap Starting XX% basis. income back operating Thanks, XX operating ramp new exceeded and were in performance, on up points expected both EBITDA points. over higher with the quarter the Earnings of segments. up XX% XX. of volume increased launches a basis or Results and Great. share reflecting XX% second rate

income in while growth. earnings investing future continue operating double-digits to grow Importantly,

was earnings favorable million capital. $XXX driven XX% cash operating flow working higher by up Lastly and

despite were in number and a were higher segments volumes while Operating some growth launches X were billion a operating for declines. market XX expect and production programs to than we up $X.X over XX% solutions, positive. in modest in and advanced to power basis were the $XXX perspective up also new quarter. From and downs, continue launches better XX.X%. XX expected, strong were a year-over-year. which year. benefit operating XX, largely commodities to quarter $XXX margins points in both slide sales Turning more the below performance passenger FX than sale stronger of by the a ramp up slower regional up from Conversion safety in was the performance Slide and to customer on in driven North of driven expected slightly offsetting slightly see and income benefited investments. by and continued car program than million XX also approximately volume were and higher the revenue XX% more experience expanded sales were mobility and XX% signal X%, America for quarter. user schedules points grow commodities schedules X% as to price variations Europe our up new of China despite strong offset the income FX production of walks million than sales growth

dilutive headwind. operating from FX the earnings shown income share per in translated $X.XX rates. operating past, in slide other items in margin and $X.XX XX. of the higher are to the on yielded per $X.XX, performance commodities a discussed Earnings share as quarter were all earnings. up were Although, growth revenue walk as And as XX% net we've operating Stronger stronger into

XX% grew mobility points which take next the quarter income on investments XX% and Infotainment revenues performance. XX% higher growth slide. driven by new Safety Operating and grew rates Active impact experience and and segments the revenue by expanded improved to volumes User the Safety Experience strong Moving user basis XX% XX launch in in globally Advanced and for driven respectively. grew and the and of margins

roughly totaled outlook. revenue quarter acceleration prior of our now $XXX the to is we spending million, expect $XX expected full the commercial growth now full million XX% be for as in $XX approximately year investments and the activity, million result mobility year. a mobility Segment increase to a Our versus be in roughly

components driven Power new Solutions were launches Signal XX. product X% by increasing electrification engineered in volumes. to up quarter, high and voltage slide and Turning Revenues on the and

is points X% revenue strong through we growth all were variations year, basis by across the and the to the Operating XX% product North Primarily higher volumes. quarter. in expect by margins for we've operational America impacted in will year. income which flow and schedules being For lines. Operating of X% driven growth and balance in margin XXX Europe, launch somewhat with customer assumed grew inefficiencies up the continue

of to to are up adjusted raising for billion an in our $XX.XX to of be XXXX. billion previously. to XX, slide are Turning we growth outlook range with Revenues from X% now X% expected range the $XX.XX X%, X% to

production within can you targeting variations see, up global schedules. and regions As vehicle X%, customer despite movement the we are some still and

prior Our down expected the euro for up for the Adjusted operating our XX%. $X.XXX respectively, prior midpoint midpoint. $X.XX $X.XX billion to are $X.XX reflecting rate assumes EBITDA range flow income cash remainder billion $XXX mid-teens with XX% and XXXX outlook and up $X.XX at year-on-year per our the the from increase $X.XXX XX% Earnings And $X.XX are a unchanged from $X.XX year, expected of is in operating outlook at RMB of and a $X.X from a range of million. to be billion at the expected approximately and of be $X.XX, the at to over now $X.XX. share also roughly CapEx Chinese to

the $X.XX a $X.XX, operating Adjusted up be roughly For XXXX. versus production prior up the are higher year basis the the partially XX% FX accounting midpoint, XX% by previously and and and of million QX volume sequentially expected at and to is the $XXX XX% to versus income year-over-year, X.X%. tax midpoint X% EPS XX% a operating points quarter, growth to expected both be revert mentioned offset as assumes of in to revenues investments and growth third approximately X% is up rate. to range to for headwind commodities mobility of XX and inefficiencies at

with benefit Looking increase and walk in remaining operational XX. initiatives growth modest And million including price an highlights our at slide fund mobility $XXX income investments pass both year-over-year growth for a from FX XXXX downs on commodity sales the segments, year-over-year. line cost and across in reduction favorable through. operating continued investments performance Performance include, expectations,

slide Turning to XX.

us Our strategy growth sheet shareholders. and balance execute for allows to our for strong value create

the with result the dividend from net of You debt recall, large as relatively and Technologies year Delphi into a cash came a profile. a conservative we balance low spin-off the leverage

end we our and in consistent We’re investment debt to shareholders. cash committed our returning the two organically expect be both deployment of at a to year. of which less result to and maintaining strategy, the of grade executing roughly and inorganically to our rating focused where EBITDA on This target is investing businesses opportunistically was capital the ratio than times it

Winchester balanced Our they customers, KUM and be a and recent benefit in mix and bolt-on Power Signal from as drive EBITDA margins will of acquisitions and end businesses growth Solutions of accretive our to more regions markets.

line our for shareholders CapEx support return funding dividends. expect to bookings to also high and approximately to the electrification we through fast-growing We’re $XXX and such and year active safety, and strong voltage infotainment, repurchases as product share million

revenues distribution, with annually connectors fastening Moving to region. Signal to slide handing growth cable on call Winchester want our the enhance the strengthen align Power will a electrical spend and approximately $XXX and facility management systems. Kevin footprint moment our Both to our our an and attractive are automotive in Solutions connectors, back and I expands before of recent KUM we global acquisitions where automotive Pacific business to in our million leader KUM Asia strategy. range XX reflecting of has

Moving Winchester. to

million $XXX Winchester our revenues. portfolio a with for further $X.X revenue in Engineered call environmental adjacent XXXX of non-automotive In harshest expand achieve Kevin of in our Upon in Solutions conditions target record and over summary to adding achieve cycle to platform markets that the to billion mentioned, improving we of creates of the non-auto XX% increased segment are remarks. to performance closing and business adjacent to Kevin our current through by requirements design closing, an the leveraging Interconnect As track growth do brand to Solution independent end his Precision KUM Signal the both markets expand and name an diversification. under into we their to significantly similar Winchester by like market continue By expertise as will hand in go to HellermannTyton. operate same. existing Power expect our with the to unit revenues for to we acquisitions With back can earnings and I’d accretive confident exceptional will with have on

Kevin Clark

Joe. Thanks

Let revenue me record delivered XX share and flow. wrap on strong before slide up up we earnings growth as cash open record another we for as well it free income with operating quarter per Q&A.

growth. As a raising said, and year earnings per with we’re the adjusted share our time operating Joe second XX% result, income guidance for as revenue growth XX% this growth, XX%

to choice improving Continuously performance. make margins content as our in faster continue our leveraging our We connected open revenues grow for the $X through executing the future, With of business capturing sheet XXXX increasing mix and cost shareholders for operating safe, cash combined, the look let’s through technologies diversifying and cash increasing to less vehicle production, business both expand significant than our while cycle. XXXX the and dividends to that business green bookings portfolio Aptiv creation, and over further and optimizing and volatile to strengthening growth performance opportunities markets structure widen in for balance our of our reinvest their our roughly competitive advanced and including customers reflected increasingly in returning Aptiv our to to operating Q&A. progress billion Positioning market earnings as strategy modes, line-up and and partner in flow, billion and share acquisitions value gains in ensure repurchases. investing to underlying as $X.X efficiencies new model, our through

Elena Rosman

Thank you. question. first We’ll now take our

Operator

with the Our comes Johnson [Operator line of Instructions] Barclays. question first from Brian

Kevin Clark

Brian. morning, Good

Joe Massaro

Good morning, Brian.

Brian Johnson

out couple of more morning. and vehicles reflect a delays the delivery XQ, it for then as compliance. questions housekeeping guide push A like housekeeping need to of couple to terms increasing to so brand in in IHS production delays through called around strategic WLTP Good one, due the the looks things of

when So, but guide? of just not does your the IHS numbers your you emerging emerge of schedules third some quarter the productions customers from to or take likely that put outlook out kind

Kevin Clark

have point, we're the has get and to best Obviously them schedules a months this best final out point. the this QX you have, as at schedules. Yeah, got to we Brian customer get as IHS from but year, as we of tied more couple as of at

Brian Johnson

Okay.

Second more sort of which from transition one. strategic will housekeeping

quarter implies an third is of to may many operating expenses. you guide mention, XX.X, of mobility, margin much lower third operating other kind Could had cars quarter than of how The XX be modeled. us a guide implies, launched of bit or that

Joe Massaro

probably focused starts, biggest if and The to going it commodities. the margin Yeah, particularly change effects be is rate. on are you

my prepared XX about So, that as remarks, basis I in the midpoint. that’s mentioned off XX.X point after

to So, commodities if we up taken about RMB, revised including the QX, the Euro been the have We've the XXs. Europe FX of you in - had down you're for in XX.X. used macros XXX ended would it RMB for for and adjusted

below So, we’ve a straightening above XXX got now. or

of XX. XX and and where adjust we’ve we we the of ended catch changed a bit So, little comings up to from the core on sort the got reval as

balance our OI XX, year, So, on and and so plays the of that's it reval with the operating XX spread that margin a mentioned the bit bit They on much the us the additional in a the I Mobility pretty impacted perspective zero that rate of call efficiencies So, revenue QX. coming evenly effectively million little through rate. the that’s havoc investment, them. of lines, through then

the QX. in higher mentioned, got as But things like also, I volumes we’ve is SPS. that in Meridian to in We’re launch that forecasting them continue part particularly happened

three-week car it’s from schedules harder necessary change. longer-term of for lumpy volume type structure and running react it but it's period, or more That react much you’re of a other and obviously harder to call any are they some making perspective. a if got which to slower two are, obviously, downs You've within quarter a changes given

call XX. the another So, XX that XX well, so or to as quarter in

Brian Johnson

give ... which Okay,

Joe Massaro

the and Johnson. delta other going Q input. first rate is FX and the the The challenge in quarter. rate The we - way really Brian have of challenge this commodities

I Investor you. cash gets was in of characteristics as are question The taking different than they this their described call, scale Active expenses couple recognizing so years cash your the Day. course for Safety know sort reimbursed business, Okay, of course flow the described on some a of into application of of towards [indiscernible] on management of gets launches. tail end and But, it engineering, of the project then of

your with as and the infotainment, we to So, strong good How you this go Safety may of in pace period? the with activity. strong sort booking about a Active less way margins thinking headwind be so the through and launch or be in growth should

Kevin Clark

Brian. start I'll Maybe,

do you booked well in $X as track year last and over to the $X So, business. billion. on under $X.X know, billion today just billion about we’ve This Active Safety year,

on, then investment you’re the a X in billion technology our positive program typically standpoint. sized about in business Safety a revenue today the in when operating effectively the zero Active you’re the when $X ASUX new rate talked mobility. our launch revenues in you in add XXX, we’ve to or range and margin As new you run range, that past, and investing from product margin from at operating is from XXX actually And an technology,

business. profitable very us, it's for strong, So,

Brian Johnson

Okay.

from the are margin lead expense. you don’t development to bookings if scaled, a then increased So, headwind

Kevin Clark

some and we’re margin offsets creates five headwind, but XX. years of mean the to that's more customers pretty development than gone incremental back closed Safety describe. how expense creates I couple it Active a to would I from heading probably Listen, we’ve volume that, Well,

activity those. affiliated the of $X at of So, a there revenues, run and But both standpoint. in solidly from we’re is rate billion activity development launch with black margin

Joe Massaro

Yeah.

thing that obviously ramping have you the business, previous all number is margins points my business, mobility prepared in obviously that Those AMoD, its on the year-over-year. And I only remarks, if XX think mobility on AMoD the We the investment, includes expanded own The back the core Brian. mentioned I ASUX truly of about out, in that’s investment. focused development that’s launches. basis which volume

that seeing we So, we’re business expected. have perform would as

Brian Johnson

thanks. Okay,

Operator

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

Kevin Clark

Good Chris. morning,

Joe Massaro

Good Chris. morning,

Chris McNally

XXXX, lot Good points as think activity. operating about remarks of of morning, the the XX% prepared a XX just autonomous, more margins But that start of back big sort discussed we obviously leverage in operating the everything get guidance think launch a we’ve to half. jump kind your XX you to about about you’ve a we and QX start had Yeah, had or think such Could guys. longer-term your of to typically I in to for basis of question, and to improvement? wanted incremental second Brian’s leverage, to XXXX in normalized basis points think margin

Joe Massaro

disproportionally rates estimates look while But a us investing volatile, framework I the and points basis points the of has somewhat investment for and itself. Yeah, bit expansion even got watch margin of stay to north little rate give we’re FX year in probably affects XX-basis out, beginning that’s we Chris. margin We basis right a XX basis commodity a very Again, on over now us with increased of and this FX the which part point best business. as and of on mobility would year, would we been rate maintaining. would our the XX focused on framework expansion put headwind points that focused think of you margin margin the provided to at the it -- Day, Investor commodity, XX and

Kevin Clark

It’s add Chris. point. would I just Kevin. one Yeah, additional

could from standpoint in Joe that’s were programs. mentioned, be about a activity. quite operational year-over-year an lot QX increase year, we’ll that And better roughly in I a this that So, at in launch have couple in consider And of programs when a the performed and we SPS of business bit And major that of look QX. X,XXX which Joe about to basis, areas think a and earlier. activity as launch on critical about we’d XXX XX% little there you QX is frankly talked

XXXX, into head we incremental you as slows, the activity launch should that as benefit. So, get

Chris McNally

renminbi, the short-term sort had the perfect. for And that of just X% trade so everything sort because thumb post second that every per, months? million I still for with you rule going have holds the roughly remain focus $XX for is that That’s the over the such obviously last of half, FX Okay. move to Does Does three we’ve or of think for a then $X.XX? it’s this big every performance.

Joe Massaro

sheet just over there. Yeah. flows than -- flows currencies higher the renminbi it balance bit little Generally, because other It the translations holds. of a the of some

close FX flow -- XX%. little, XX% somewhere a flows we say usually and at we that between may XX, it flow So, say may usually

Chris McNally

to XX%. said basis XX% $XX which QX And then could on points roughly EBIT of overall an million XX year-over-year? specifically you be Okay. for

Joe Massaro

Total the XX. part that commodity just renminbi has XX is of and big moved the between here really end the and since And a FX of quarter.

take we that, line full that full obviously of something of of and to and really XXX, just at to XXX FX revenue the associated driving not quarter-end So, XXX what’s assuming commodity sort a with the really was XXX the the lot the we’re which end is QX, re-val.

Chris McNally

guys. much, so Thanks great. Okay,

Operator

Capital Markets. the line question with of Your Joe from next RBC comes Spak

Joseph Spak

Good everyone. morning,

Kevin Clark

Good morning, Joe.

Joe Massaro

Hey, Joe.

Joseph Spak

X companies we a wondering minute we in that stand with just Kevin, of so where want we prior [ph] if spend indicated have well up, the it Audi product with product. seems that the you’ve then eliminating just Level more as because interest X, you from talking But understand really conversations in think to like as see I ramping I I Level stuff heard was in guess X? like could sort quarters Level U.S. customers about are I

Kevin Clark

no X question. and X focused OEs developing Level X into X. who That’s Level are there a great dependent, very very customer Level and It's Level leveraging are

at seeing other kind lot in cost a now X the X of dialogues. a Level benefit value OEs, at There are or Level X say plus plus as are Level cost of more we’re those Level of solution and a the So, X let's standpoint. in solution Joe who per looking least of versus incremental on

that driving autonomous it development Level who as let’s to So, have X it's focused from coming quite X. working X and to to to it separate a to that customers bifurcated Level to moving Those X seem frankly. are on a a skipping Level being to X on step. a X and a Level plus X and sequential at on X bit and different directions, be Those X call that advancing considering tend who to X group group Level are ADAS two a works strategy - relates a Level

Joseph Spak

Okay.

X or So, a you Level set give plus. Active between can $X you of XXXX, X that more the that target like us out of then the breakdown guess I Safety Level sense in billion

Joe Massaro

$XXX automated us, roughly a last that X year million plus, and X, billion plus Level of X. well – would over million most is we’ll be of Level $X say so at billion being the of so. revenues XXXX have the X a Level about business I’d do in is we and Yes, that lot X driving Level plus we’re ADAS The be $X X, ADAS or guidance Level for as Level what – what given Level the X business X, growth of $XXX

Joseph Spak

Okay.

Joe Massaro

sells. Safety Active So,

as X I seeing seeing Level Level in opportunity the and we’re prepared remarks, X for asking said a we’re So, it for it, my OEs around plus really of area. lot consumers are pull

that will the of drive most growth. So

Joseph Spak

you some to seen separately, do? of guess similar what approach direct players Okay. autonomous efforts And some we've then your if or in your industry other investment just I would the consider in

Joe Massaro

autonomous you When direct or in would others see invest in investment efforts. of we If … some

Joseph Spak

into efforts? of directly some capital No, just taking your new

Kevin Clark

heard Joe and with shareholder about I starts driving we’re so Well, you’ve values, that. as say, it

we Having need and that, like obviously should we that it use for. said to do delivered have drive how that capital what good presented it what was understanding we’d that something would do. effectively certainly much an shareholder opportunity itself do, capital – shareholder value, a So, we value how of if the best –

a as to for working gap customers don’t the there people do at if spending both funding. to technology, to do think right AMoD need customers feel to automated our you’d developing view to ask time, in or as we’re of Joe OEM I in money and driving everything myself point on it what well we develop or resources, this like the we we’re as and amount for really relates

about situation. shareholder to I But driving again always really we’re understand So value. we as said, we need – have the

Joseph Spak

Okay, thanks a lot, guys.

Kevin Clark

Thanks.

Operator

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

Kevin Clark

David. morning, Good

David Leiker

talk doing. good if investment is obviously million that morning the about wanted mobility I correct? everyone. Joe that that increase you’re to $XX I That’s right reading Hi, year-over-year, am

Elena Rosman

Correct. $XX million increase $XX of quarter, mobility spend of in the million year-over-year.

Joe Massaro

In the quarter, you’re talking about, yes.

Elena Rosman

XQ. In

David Leiker

items the Yes. cost to line flow in that that’s what goods through, And sold?

Joe Massaro

flow obviously and such – costs the up of flows up SG&A lot of goods engineer through, it our through sold. Yes, there but some that’s primarily, engineering a oversight is

David Leiker

what look as that then for or year year number following we spend? the total does that you, been And that has next like growing look,

Joe Massaro

Yes.

step couple So, days times. level change we to the a I up. obviously it and say won't of early see mean, roll you that's

come the honestly this to we've the say would what to of still XXXX that. Could opportunities step this really that getting always saw some major depend some at XXX. all with level won't mobility the wind to and I'd Possibly, with pursuits out change and opportunities, almost of through you we're that quite providers. demand related close increase at completely maybe XXXX working point on quarter up obviously close call the or to the and you XXXX. commercial really in It on You the XXX,

repeat of So, increase to expect significant sort the level not certainly step spend that we change XXXX but see known saw event. would opportunities extent from the the you XXXX. without a to would We commercial to greater

David Leiker

profitability think efforts? And reach that last you those for what here, then item looks timeline like on the to do

Joe Massaro

talked a AMR. coming billion that, from of We've Half in about that that having of billion revenue of sort dollars XXXX.

service we we product sort really of of mirror There growth bit and, a a we a our traditional million faster XXXX. opportunities this revenue sales, break just there. through extent perspective software may even some of from we're $XXX evolving sort come little a that obviously. to product is XXXX, our of grow be I XXXX think some other lines, recurring would some trajectory, But business from the where data sort fees at of it'll to profitability climb this than lines, where on some from of expect revenue revenue, XXXX and through from sort nature given still at look

Kevin Clark

at this I programs, one way, something way. careful other we've not thing, think, technologies we around AD, those as would -- we're think in we related when for year market percentages that you -- two and the we've level or develop a to overall bookings And don't systems the continue been is count David, to imagine. reason the result and to reasons so, expect to of but able in that's I active around as for of big the been to look making. this our winning is can The principally that But safety you so growth, principally and two, we be we're addition level ADAS, to it to as plus. last perception count investments clearly successful, transfer

separately, Now, it a that on profitability separate. revenue again, there. it that and but drive we AD do there we we're business count is sure We keep in don't, way. We focused benefit make how the

David Leiker

other are skillsets of investment an parts revenues those business. Yeah, driving Definitely and the there.

Kevin Clark

Right.

David Leiker

Okay. Great. Thank you.

Kevin Clark

Thanks.

Joe Massaro

Thanks.

Operator

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

John Murphy

guys. morning, Good

turn that where think you long And corporate sudden, of or ultimately morphs mean went over on the a in kind mobility they through run, this supports sort and all follow-up think think then go? other the these you higher one do average. corner about when about When the invested investments. mobility, of I and parts into is sort of on the we business. other just than much the capital of in return here we XXXX returns have in of do you mobility, Just

think Just will ultimately curious where you how land? this

Kevin Clark

in not Yeah, we're manage right? this average year that's return to We're not our think on return fleet business listen, I looking or in. XXXX business, well the before above at on capital

going significantly So, those the return. software will technology provide as the goes invest by others we're will to that those perception know be the provide in solutions related the fleet, you will building and to higher provide will cars fleets not software, owned more into the systems

it's I John. well before So, think XXXX

John Murphy

helpful. mean with side. slide five. Okay. just Active sort Safety you're think second talking we the of return on I then about Kevin on That's And staying as about

market, if you of lot scale a may the there's technology, this returns have expand. and of democratize concern the the to in sort you technology the come initial margins down, actually leverage the, the investment, ability As returns but and may

work? how about curious democratization Just that think will the

Kevin Clark

and chain X into and X willing are up consumers the in that low from it's in we Yes. real that going and standpoint technologies benefits. operate their you software this do which margin see once, business it's in those think Level definitely can costs systems, quite you'll right? advanced Listen, And Level of increased from I partners. so continue frankly very with there will nature of products all pay and plus pressure, X on. deal see our customers, job Having demand our and frankly our quite very of something across And develop it’s you’ll is that, Level I'm with products integrate to technology do can be to to for vehicles to and confident Level that people a of X a what few we with good managing said we the

John Murphy

those getting average were higher corp think also the then a there, right non-automotive into stand than and on target, And also about as margins as Okay. as mean just be diversification XX% we business, returns I now? they similarly

Kevin Clark

forward. is in take Yeah, had much is in focus, those is are pursue strategy the are is straight opportunities market, but the technology, existing that where commercial take where that concerted engineered further effort we in components and but it - product - to focus is manufactured had And second There - pursue that markets places to pretty often that like a similar. very, so products around and products not existing focus, space, as portfolio opportunities in much the we we our We haven’t sell vehicle that historically on. we today. is very

to strong different for you few sales real that’s Now, a year be very great bought the very business can a HellermannTyton is approach from extremely and us, sales ago, be it’s different. as a per standpoint And force a know well. years or very can we go-to-market over XX% It’s with operated well a that has as to markets. grown been are products different, to case extent we the study great things in a the our them the it’s like can and mentioned provide other we team, portfolio that their maybe industrial a have that great leveraging we into footprint sourcing capabilities they with add management can sell think Joe great Maybe respect a today with and Winchester, in there that. portfolio and asset

way, Now, think if returning and enhancing. it’s we less our diversify a risk low multiple very revenues cyclical be can enhancing we in it’s

John Murphy

one odd right good me. lastly, of the just separation just sort question now Sounds And maybe you to spin. just that given executed

technology stuff we I going with [indiscernible], voltage, would Active in look particularly great much average maybe what’s leave have some at higher Safety growth and you high than is mean that auto As at ever another you of sort have this gross out valuations gross of the positive cash this some high of been fanatic spin just flow? on the in put even high of consider super stuff given some

Kevin Clark

and sure One, business I cash flow, is positive want so has think every growth to make our high I different.

business good positive we and high flow has have capabilities. software go But cash creates and that’s very the Again, most and Joe don’t for a to they’re as [indiscernible] the whatever their So, shareholders. great is where have a to we business back growth we entertain I all significant technology investing. portfolio I with business product it relates the specifics great value

and on we of to smart an able from we’ve incremental and as booking future to benefit of it very think an an having the to leverage standpoint, for the being together. that’s the the we’ve standpoint or is think user we that, relates solutions architecture two win of have there reasons more ADAS experience is said talk think had software rates, had architecture the And the so infotainment having car, both capabilities standpoint unique. think to we’ll you - a Now from we we hardware one vehicle about the so from

John Murphy

plans something there’s an if run long now entertain right the no of over So, to it’s value to the creature that fair be opportunity correct? to would but say is

Kevin Clark

value. no now on driving always, and focused right always plans Yeah, now shareholder right no plans, yup

John Murphy

you much. very Great. Thank

Operator

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

Kevin Clark

Hey David.

Joe Massaro

David. Hey

David Tamberrino

you’re of little in dig tech are How business subset safety morning. seeing out business. I experience the to integrated I UEX? the what further a advanced and Good - you competitive wanted how Hi. are within advanced controller landscape OEMs within RFPs guys? much that user and for you bit Wondering from there wins. a growth mentioned is your think doing cockpit couple How more in much

Kevin Clark

SUX, Yeah, from of user we’ve rate years, a had last bookings I infotainment couple mean growth strong business CAGR experience of the is standpoint. over sort the of the growing kind mid-teens

for has about to continue talked for Controller integrated that will be controllers be to and of do our mass down times We the rolling significant end based looking We've consolidate on and up and or CFP to programs or compute the our it cost. safety to ways XX Controller power and product. Cockpit increase saw CES on which OE expect the power. demand integrated Cockpit you Always through movement the of off. There less some decade. There continues at are

or focus a power, So, how software of the increase how to compute to and an standpoint hardware. how kind there software from a on operations to OE the get of the lot centralize is enhance leverageable it

David Tamberrino

some mean you how at little target landscape. maybe that competitive to looking many are I you're you're folks out target there from against looking order you're Okay. seeing or maybe competing better margins achieving a better that And potential maybe within in margin at segment bit.

Kevin Clark

Yeah.

feel and who players in have think uniquely capabilities software recent integration run I base. our software given play side. ran transaction typically the our had on Samsung to our hardware positioned And We most with infotainment think more we I this like and systems again, we're with strong systems yeah, their and like hardware into integration more -- our some capabilities, capabilities. into, traditionally we who So the

Joe Massaro

the before. we've Level To get plus I safety, we Active and that modes on think systems, it X Dave to X feel Yeah, when expanding. an talked Level about and the you particularly us

the on this in seeing the those on that you'd initial fewer the could -- the pretty I big us compete we good And can some of against really the is of least of us expect what And that a least bids. and ones for again, to that us folks room spot at with on Bosch there the we're well technology sort deliver given a players widening a do at market. So, that. And from they’re are complexity fewer global think think going that's certainly We be. global for as that's in technology some structured modes just we guys, who platform. really on this a those to

David Tamberrino

services rides. about maybe Understood. And plus just your in thinking XXXX switching mobility gears then update and

rides last autonomous was autonomous I I seeing. think being of What's was updated you're and just Vegas the with life time kind mileage in in learning this too show. Vegas? our bit a maybe of seeing or percentage like to it from now And fully driven talk the that think XXX there post-Detroit system maybe right type or many disengagements today plus XX% that's when date towards about of How of the we are in you're little what disengagements out July? it

Kevin Clark

system So, stronger CES. had what at obviously the than we we is today have

further to be through development to that's frankly, go riding that's for the regular we So, the Vegas location at Las a updating quite technology. underlying The enhancing continue roughly why process tend we validation XX% and of and vehicles have autonomous. and of

We today. vehicles have network roughly XX on Lyft the

the fall to total, by be We XX year-end. growing in We before year-end now XX locations or list were XX have will XX as well. XX network roughly served

seems that in to of data don't make I takeover but have we continue to relates the it As like system. me, improvements front that underlying in

Joe Massaro

strong. Yeah, it's certainly

I are this Lyft from about talked at side as point learnings commercial really of things. the think on learnings the before, David, we've the

valuable deploy these and to cars are the for incorporate data an in mentioned his prepared to best data learnings to as mobility-on-demand deploy to consistently existing network. into hour have for longer Kevin them run said, day. them these these Kevin ability vehicles As Where when the and who's cars to remarks incorporate, how best and how us the coming both Lyft, that off to,

to really So, assets use to this focused on were these how revenue. they an best perspective, continue automated go certainly the turn January, in at from point, but from and where drive is takeover to this numbers up

David Tamberrino

up front. of you close up Yeah, with signing interest, to purchase that signing or on data? you and anyone Have are kind someone seen that

Kevin Clark

Yeah.

We other in have the several location and dialogues folks with in interested around number be and data who'd Las Vegas. of

David Tamberrino

Thank gentlemen. you, Okay.

Operator

Guggenheim. Emmanuel Rosner next of Our question from with the line comes

Emmanuel Rosner

Hi, good morning.

Kevin Clark

Emmanuel. Good morning,

Joe Massaro

Emmanuel. Hey,

Emmanuel Rosner

looks your that So, like highway the meaningfully integration on Active win but are that also strong -- competitive auto-pilot? that it request noticed include quotes Have for any rates a advantage. capability Safety, now OEs business ADAS, you is just not improved

Kevin Clark

if know ADAS. as of I right don’t I rates Yeah. have me, have in front relates I don’t it to data on win

on architecture out hardware Active Safety versus year that Our amount Emmanuel. up limited of gone would would rates sort very given side, But point can software then And Joe’s trend, vehicle and the that capabilities on and prior have the I years. do that a show players activity, similar our assume of win ADAS of to that. both group is think of overall given I there overlaying top there this

systems of resulted wins has OEs. you and us be a differentiated be large we significant plus complex some programs when multi-national get with able pretty showed to integrator. X are a Level in that I need our you it’s strong think ADAS presentations. I mean systems, to into the in those And

Emmanuel Rosner

to ambitious Understood. at sort And spoke your stream, you about XX%, guys that’s then guess I target. in the of diversify obviously so an terms efforts of non-autos revenue

And diversification. there? on get then still to required is the separately what So,

a some or had think sort a of from Can out of I those from or software sources. recurring directional that? having like you portion revenue timeline targets laid on for quantify you put your

Joe Massaro

Yeah.

driving from lot it’s billion around talked service providers. think focused that a that I we’ve XXXX have -- we half conversation and about AMoD automated -- really being $X Emmanuel of mobility where revenue, on-demand of

the expect a obviously software that to services is of be data large So, which percentage stack. and sales of there mobility we

not vehicle So, that’s obviously light part of non-auto -- revenue, of it’s when think tied we to production.

it. part certainly of that’s So,

we quarter key business to on on also as and acquisitions. markets, organic growth we sense non-automotive goes think we’re come businesses progress in to to started non-auto, focus part expect across And serve those that segments, and be we a that growth acquire, markets transactions. We’d think reasonable thought within Winchester making platform we SPS, for didn’t we continue we XXXX really solid will industrial we’ve to the and of vehicle will connector those for will, other and we liked, We of things really the I solid into strategy. company. market, across were to a them the then it adjacent but relates like it place smaller both as in growth it often hard bolt-on could focus inorganic that but continuing great to HellermannTyton that where think will include execute non-auto we growth ECG already, The obviously large without bolt-on had makes a commercial it’s a you to non-industrial to it have into plug CV. those organic growth And that do need platform a if is into multiple, businesses

into and America ramp help the in that challenging We’ll Winchester company Kevin as We North XX% experienced at Pacific, the We Winchester M&A. and parts material for going has think meaningful identify They’re quickly benefit management solid them And into have going given to the those ways. also lot we’ll infrastructure. obviously synergies capabilities into Europe those way to is smaller help saving of long-term Europe more Asia-Pac. have more there. mentioned XX% couple a team, to So, markets of a really some world them just very them. gives in go this in in us ability Asia in a point. of opportunities

but in SPS, next step non-automotive we certainly meaningful components speaking that particularly broadly see a revenue. the So, engineered is group

Emmanuel Rosner

That’s you. Thank great color.

Operator

from Fargo Kwas Our Rich next Securities. Wells the line of question with comes

Rich Kwas

Hi, good morning, all.

Kevin Clark

good morning. Hey,

Joe Massaro

Rich. Hey,

Rich Kwas

two me. Just for

this point, didn’t XXX. on tariff, I I hear assume immaterial So, on at anything is that so

Joe Massaro

ship. it's half and the that. localize components perspective reason is group. of look along started what is, about particularly not moment deployment the more on direct a only would that’s capital Yes, obviously engineered really about and localize localize The now straightforward the expensive putting the capital you of it so we’d at between I’ll focused this it sourcing, Yes, quite produce switch From to right one at place operating have that we’ve potential as of to countries – ways good to if we’re able call capital direct localize our than very there material became in production, $XXX from we that, flows two trade-off only extent and look million We we model, be efficient To question. and the benefit pretty honestly locally the to impact. more found now, localize.

just point million $XXX $XX $X it’s So, to about a this at from million impact tariff. million at you’re talking maybe

material. not just it’s So,

we what Given moves significantly manufacture. we the have buying, what business, portfolio our to to need we to the buy, changed buy

are global buy this as just problematic and point. registering than annually, that’s so steel at Our $XX not less aluminum million

Rich Kwas

half on to year $XX million is that Joe that million, number. annualize And $X or an number

Joe Massaro

annualized. No,

Rich Kwas

could M&A there and additional Okay. any Kevin And where just scale other how gets are further so portion opportunities the a then out it scale? you – as question, Winchester much give – there, into is do does this you,

Kevin Clark

definitely. Yes,

strong spaces to been great team, them in M&A EBIT said So, And from experience control utility to. do strong provide areas doing these alluded operating our they standpoint support business be have go teams, and with we’ll Winchester in standpoint. out what and [ph] and as will I the Joe small continuing have that to them systems certain

Rich Kwas

that so is Okay, market fragmented? fairly

Kevin Clark

connector fragmented. you when component very Yes, look engineered space, at it's the

place, there connector the businesses smaller where we to As would there. from of MVL there and the there in time players a say is and that that drops were down I where took of last relatively bought it consolidation out XXXX. players medium Joe was then back larger period out said, the size

of them very and – strong. are So number the

diversification integrate with more big piece businesses of the But a those again, we what acquire doing into about business to really continue we’ll already So, have. model. strategy them is Winchester

Joe the about again vehicle the business non it’s purchased XX% through that not in selling OE AMoD market We -- Control So, data in growing under the as vehicle. that business Tech tied component product with that’s commercial market the its talked existing production, market, vehicle data engineered connector year, that’s to focused into to as that’s space. well the and space to continue in per in focus data, and portfolio commercial grow more just value business business, tied and through

Rich Kwas

you. Great. Thank

Kevin Clark

Rich. Thanks,

Operator

question next the from comes Cross with Our line of Steven Research. Fox

Kevin Clark

Steven. Hi,

Steven Fox

morning. good Hi,

it I has increasing, last follow-up. curious your just, line the if all to question First and and look back lot ups between how of is different there a landscape, had activity companies, days capital been getting I in along to landscape XX given a. back at position. the investments structure, mobility your just just for is with tie types what of changing relative step that maybe the then had we a quick And say

Kevin Clark

opportunities think, and I are question the Joe it I depends depends right. perspective you in to Yes, which – on market, should this well. at pursuing think Listen, answer the as through comment

that know, important it’s systems architecture with into or with focused be are perception mobility vehicle systems be automated that autonomous think I to whether on we selling and OEMs, the providers. driving and market, driving

all Joe generate to. revenues, profitable incremental opportunities sometimes alludes we’re pursuing the to So,

players army; And, architecture the that’s to the talk software. the like looking looking to not it's from best We we know, arms to are be. all the be. to that on automated the product to space it think other really dealer. that vehicles. to And their space And about, be we’re be we systems perception ranges you the you sell We’re that to used

management part right? primarily sell more provide fleet decide to of or and full others But that’s own, Joe? our OEs a whatever that happy it they do folks, focused to they is than their the we’re a systems with providers, Now, need. portion is who of on this to to business strategy wanted them

Joe Massaro

the now. the WeMo [ph], in the enabler Cruise accelerate level we’re we from folks we’ve interested commercial thinking have one a that. leading their in want in technology of or this of discussions No, of Vegas spend think to on of and I a [ph] cars of development demonstration sort being Lyft from tend to you of the When road and space a seeing are other what as increased this viewed clear we’re big reasons CM accommodate see, announcement the

so, bit see of see announcements we coming actually when up a to Softbank. others, a meaningful or like pick activity a WeMo discussions all the the out you from And GM our big in tend of

Steven Fox

Winchester really on to be that’s then, clarification, deal. just And Great, a the just helpful. clear painfully

connectivity you How there broad the TE own get it setting your line the technology, own is I it position but, your own players you sort like that [ph] to some major entity exempt with out a You’re its under and diversify to maker against leverage as its connector to business? that umbrella. part, brand name and a of do of up your Eveline

Joe Massaro

very Winchester, over - industries. Yeah, has we will provide relates global it few did things like like XXXX, very that’s they much to or and last team to very as into provide competitive management with years horsepower capital, listen, we a HellermannTyton well. for I Milero that of position We’ll whether think but the job other done of interconnect great themselves the some environment provide positioning material synergies footprint, complex be some a themselves [ph] harsh systems, since

much business broader continue did with that as HellermannTyton not a use XXX% way mentioned our a system book Again, on the us really So, to was a into auto play that is incorporate well-run teacher to Kevin Winchester. HellermannTyton. like with we how for very and we’ll good

on we it's Whatever, the distinguish to as will customers content a Winchester Winchester, team we time are efforts, know-how could to AXXX, And here marketing other really support on their of Airbus. from we now product sit or today, through force, the platforms auto really the Aptiv that into that really like to have HellermannTyton Airbus the then honestly, industries. business, that’s through going able quite the have into behind. So, great Aptiv management going And hard FXX. bringing and an through But the sales part development Boeing or from going is XXXs, been even brand. efforts, the their port technology if had

Winchester, our but of product the but perspective we base, commercial activity. to we buy channels, to do them, when market that lot do go like really and team we HellermannTyton management smart that broaden we’re activity understand support So, understand leveraging their and starting really is that really management to we’re their teams businesses strategies a

Kevin Clark

about important Yeah, quite to line in control it's to like numbers HellermannTyton, think Joe's know high margins about I with speak reinforce are and a and EBITDA connector. this - comment single-digit is - our a that business, growth our great revenue themselves, really the asset acquiring it’s frankly for

Joe Massaro

north Yes, XX%. of

Kevin Clark

very a value synergies team bring and additional resources. or business that to incremental of and it’s great well-run for assets, sourcing whether how So, great set from the them do be we a

Joe Massaro

each bulk be to way million sides. arrow not business XX it'd as there think, without very We time a I right earlier, and I we buy auto businesses both a business. the other. them had that ourselves really connection distractions a Yeah, mentioned really into revenue, into would XX smaller have thought side to plug sides, hard would complimented system just we the where and on run, no and be Winchester buying or they a was platform it connector hard both it It

a would accordingly. honestly and needed global they being them we part platform So, benefit can of player large a quite from support that

Steven Fox

Great. helpful. on Congrats the That’s results.

Kevin Clark

Thanks.

Operator

Our UBS. of comes Langan final Colin from line with the question

Kevin Clark

morning, Colin. Good

Colin Langan

Thanks questions. taking my for

Just one clarification.

like China But is in there a XX% that official assuming there a the there? a I number rates [Indiscernible] million guess $X what be that I $XX the to they’ve missing million would the yet. headwind, of quoted that math tariff [Indiscernible] am is million million is tariff on mentioned You transit. $XX be Will $XXX

Elena Rosman

tariffs math. the On

Joe Massaro

Yeah.

sort schedules somewhat from not on mitigating instantly, out look to we if on what in those think then again, that it’s and where pay seen, we go of the I have individual proactively. stuff, we’d And we’d products. start

Colin Langan

say the… than XX% just it less be Let’s on would

Joe Massaro

Yeah.

Colin Langan

it helps to And so, guidance? clarify updated Is And us? Okay. KUM for guidance. just that included if much the the how of in

Joe Massaro

the accounting Yeah. we to It thought you was of call the and full it EBIT synergies amortization the is year, to year. deals guidance the start one QX, purchasing KUM the $XX the for of closed. it’s going going it obviously close earlier. in of little This little was a the in close effectively is since before we’ve was, you all pick in up to about later stuff. bit now where a it sort range million I’d you in balance hit

EPS. course I’d year, back the will ramp but call probably in OI of over XXXX, the million of of it half it So, of the $XX $X.XX

Colin Langan

I just is involved today strategically, about some think a that products. up how the concerned launching is I infotainment -- market stage know actually that the their they’re people there you about getting it And infotainment Got from talking market, own or more it. because shaping Android different [Indiscernible]? are in Are

Kevin Clark

Yeah.

listen, it’s automotive didn’t we any space from bring helpful. into electronics So, is consumer if especially content the

one integrator, programs. of are actually launching we a Android As systems those

So, we’re software systems given quite one that provides something capabilities of frankly additional think We capabilities our their integration and partners. opportunity. it’s

Colin Langan

remind and quickly just is Thanks. you controller, software, Can first have the name X be AX is vehicle on any Audi mostly lastly. you the just the as And helpful? it. Level us what hardware Got content dimension multi-domain there would it

Kevin Clark

the technology. multi-domain it’s it’s radar and a some then It’s Yeah. systems software, integration it’s controller,

Colin Langan

you very much. it. Got Thank

Kevin Clark

Thanks.

Joe Massaro

Thanks, Great. Colin.

Kevin Clark

time. appreciate everybody All greatly for listen, Well you right. your thank We it.

Joe Massaro

all. you, Thank

Operator

QX for earnings Thank call. XXXX joining. conference concludes Aptiv That you the

You may disconnect. now

Aptiv (APTV) 31 Jul 182018 Q2 Earnings call transcript