APTV - Earnings call transcript Q4 2021

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Operator

Good day and welcome to the Aptiv Fourth Quarter 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Chris Tillett, Director of Investor Relations. Please go ahead.

Christopher Tillett

Thank you, Kevin. morning. Good for and you Conference XXXX Aptiv's Call. joining thank full-year fourth-quarter Earnings And and with of tables can press related The release along aptiv.com. on Investor at be the the Relations website portion our found presentation slide Today's review and items, Aptiv. will and of excludes the operations other continuing special address our of financials restructuring slide well earnings - in full-year our XXXX release. are included and Reconciliations for QX for between non GAAP the and as our back presentation of the the measures press GAAP full-year and financials, as outlook

During difficulty future providing reflects XX-K filings, course other reasons SEC future Form today's supply from certain forward-looking by and including after its for we impact will site call, our be and on different the information, current and and financial predicting and materially in performance we global economy. the its which view posed maybe in the chain uncertainties actual COVID-XX of our that pandemic performance,

and will Kevin Kevin and us will Joining Operations. the 's strategic open Joe Q&A. call financial and will Joe provide to Business over Massaro, business, President that, outlook and and a the Kevin CEO With turn update be like Vice of CFO call the I'd to to before detail on today Clark. cover Senior President Clark, in more XXXX the we Aptiv results

Kevin Clark

Slide Beginning Thank you, Chris and this for X. on joining thank morning. you everyone us

driven by as keeping green, portfolio our success we resiliency the position customers of growth Despite safe, well of record industry-leading During chain business validate over our our the record business our experienced keep competitive bookings advanced through and connected, as to XXXX, model. our megatrends, the our the results customers running supply to technologies efforts market strength disruptions. ongoing of connected our and and financial the aligned new increased

and operating revenues earnings vehicle billion growth, Focusing to on detail income reached business reflecting $X.X totaled which and billion production. chain expenses over and related XX per points underlying XXX the minutes. billion, and disruptions in highlights benefit full for XX% new growth, $XX.X respectively, Operating totaled greater $XX revenue year, of cover bookings inflation, few the share representing a strong increased supply in cost by the Joe will offset partially material

enabled increasing provide shareholders. Aptiv future, Turn Lastly, initiatives. software as invest announced well. Continuing the more while aside, Wind a business enhancing an know, new challenges program in the to will X, in team throughout positioned one organic be faced the value growth two and we position business this -- remain the software Setting intelligent for software-defined executing as our bookings stronger mentioned, laser-focused the to accelerating new industry-leading the to over efficiency deployed we by we've increased record cost past strategy already seamlessly, as solutions, years to executing of further of new headwinds model, River, capabilities. Aptiv, the execution have transition you representing is to that of the the which and Slide macro revenue continue record [indiscernible] and the over high-margin to competitive resiliency and And technologies our leading growth our and validated the advanced enable market. our developed model, business Aptiv our launches, agreement provider The the more underlying of future. well of showcased lead high-growth, structure our resiliency increased that company step life solutions to us recently uniquely -- positioning as the on for transformation transaction a chain of intelligent in acquire faster, comprehensive position supply optimized to vehicle cycle. proactively exceptionally and This investing

even better on and in be the the megatrends Safe, accelerating. to as ahead, positioned will software-defined Connected the vehicles Looking Green, to path just capitalize Aptiv

while the system ADAS increased sensing lowering cost solutions, enabling in-cabin democratization advanced features. of scalable Our performance Aptiv safety

Our allows and element and develop to vehicle fleet low-voltage for vehicle vehicle significantly a proof vehicle Collectively, enhancements solution. production. vehicle weight lower extensive XX points that minimize vehicle a us which OEMs provide revenue vehicle that and with each architectures the our And technologies and to cost. the to mass, data high-voltage downtime. growth our architecture through for portfolio as XXXX our a us connectivity for reduced and for to optimized electrification customers overall of industry-leading And our these solutions insights both foundational portfolio point vehicle solutions analytics continuous the increase the vehicle allow data smart is of offerings advanced relevancy of health gives confidence eight over of key was framework our market our to lifecycle

amount new X, billion. a $X bookings COVID XXXX record As billion, XXXX business totaled previous billion and over the billion shown $X of the a on Slide increase impacted record increase over $XX $XX a

few of our advanced our billion amount new in of $XX growth The the bookings above-market of of confidence Our our both a across choice segment Aptiv Power the our our and of unique billion, to gives user across Signal for record business bookings $X ability year, further totaled for portfolio technologies billion and segments including high-voltage connected last Safety Aptiv awards. segment to Bookings as partner sustain $X.X execution, position over safe, electrification us customers. strong portfolio cumulative in years our technologies our of with continues business Solutions resiliency including experience a validating reached and $X.X operating billion combined for business green awards. model. of our safety the flawless Advanced

and points for reduction the X. segment the Advanced production. on to fourth XX declined the from vehicle User highlights Turning quarter global X%, in Slide than Revenues Experience Safety our better

our over full Safety increased over benefit launches lines, launch strong the of user and connectivity security strong in in infotainment and line, product by Europe America the Active rates in programs reflecting both year, in in XX points programs our in-cabin growth sensing new continued market For penetration program Europe. and and production revenues and resulted of the driven vehicle XX%, product increased which growth experience in North

additional earlier ADAS android of platforms. commercial the our safety our increases demand the and software Satellite business Awards with from the a the control our vehicle Baidu infotainment the up for vehicle This venture vehicle presents in And and platform powered on central Safety architecture active advanced advanced Google XXXX our lastly, from validation Wagoneer. first on Architecture with Ram ADAS automotive services vehicles. business produced smart solution building its award functions of in scalable Cherokee data compute Solution capabilities solution with across the vehicle central business new satellite controller. of and flow of architecture for Jidu performance by a launch integration, launching similar of Volvo the development development, market truck, a a pickup a OTA Jeep for for will share new extension is User our vehicle out high Ford body Active on kind and by the will the Grand As industry-leading of the solution additional features, for in and need new real-time as of award Several integrate of by us required. for computer off And from onto China Geely-Baidu further more capabilities awards and Stellantis Experience new success native from new the evidenced extension opportunities, more platforms. additional joint solutions

the XX vehicle than high-voltage voltage We're our new our automotive business models, for strong deliver that Solutions a not components, better And leading electric declined to XXXX. next-generations, the has leadership from a demand IT lastly, increase declining for for Stellantis production vehicle launch from OEMS. globally, high-voltage emerging electrified And cable high-voltage the European these award platforms vehicles. Moving from a content award connection, solutions, and in for position translated production customers. awards low architecture North of architecture for XXXX an Signal X%, vehicles. over industry vehicle solutions, XX support several solution points and an vehicle an for on covering These is for reflecting new X, MEB fourth-quarter An power electric important vehicles. for high-voltage engineered validate points portfolio new perfectly optimizing migrate increased full double both and production, in additional Power and increased for platform, of award Slide for with XX%, awards significant to wireless RXT off the applications. segment Rivian high-voltage several award of on business high-voltage distribution, American positioned distribution platforms. our and and their major vehicles their awards into vehicle VW revenues resulting for charging which automotive on OEM including RXS vehicle the in platform MEB extension demand full-battery low-voltage revenues our architectures customers building high-voltage several on continued global our architecture High-voltage management models our in increased more an An solutions, both electrified in bookings to win on year, value with traditional

confident of consumer have acceleration of see stringent we will that the than battery few very to and increasing continue of The experience high-voltage we for product the years, electrification COX vehicles our over the both fact regulations content electrification growth continue powertrain We strong we're that line. by driven next from more an XX% more acceptance. to electric launching revenue momentum

River, This Turning software commitment to acquisition we'll spanning announced mentioned we intelligence Aptiv's to software Slide able Together, acquire strategy. Wind accelerating connected be leader full global a reflects lifecycle to multiple edge the edge-to-cloud system industries. January, early comprehensive provide I intelligent the in in our systems. across X, solutions to as agreement a

offerings Aptiv that vehicle the customers software platform development, creation cloud-native of software growth across full new and the enables opportunities create complementary Our through for and and operation life-cycle. value a deployment, will our

architecture in key lower penetration are consumers of X opportunities an As at vehicle. applications in software strategy. point tipping enables role in industry of convenience. architecture to demanding more overview advanced deliver creating and evolution vehicle of are vehicle mission-critical the will defined automotive feature vehicles or a the enabling vehicle, for comfort, play the Wind solutions for electrification. the and adoption River the our accelerating the cloud XG When connectivity smart software-defined to features domains, costs battery and high-voltage proven across 's leverage the transition vehicle Slide provides safety, advanced software

in has enabled smart increase which XXXX. to the through from by holistic more they're in tactically new growing billion software to employing from how today the to their transition hardware, $XX programs. engineering OEMs of hardware, electrified in this beginning $XX development amount full as to the significant All are accelerate that After and approach software underlying to and both the content separate of and a the transition vehicle, vehicle architectures billion a the stack. software-defined software, OEMs system vehicle vehicle sourcing the optimize solution enabling spans to by

Our globe cycle own flexibility And and hardware to OEMs across technologies deterministic of further And capabilities multiple software applications and for hardware, In millions Aptiv strategy open safety in industry-leading position, high-performance, and software our easily and software A business software-defined by unique that complementary expertise well that cost-optimized, feature development automotive-grade and active development, platform development open, the to augmented is enabling and solution necessary us integrate critical position. the cloud-native the on sources, enable from of deployed providing The vehicle deep software-defined After developed to providing that across network the vehicle management. development River cycles, and while their be capabilities, allows competitive infrastructure well and framework operation, shortening attractive transition OEMs new resiliency. software active And OEMs with with vehicle continues software. and to complete providing enhances a performance Aptiv's connectivity OEM safety development. an development vehicles that can TTTech's stack, our allows life of the and development as other applications. for experience safety are of the full as efficiently be adoption architecture as focused software, services. the redundancy to of assist upgradeable, uniquely gives and scalable confidence time accelerating software combined architecture smart and future high vehicle cloud deployment lifecycle positioned River including the market and offering value-added they cost-effectively accelerating enables user the servicing and speeding Wind the Studio deployment, development from full optimizes Wind for continuously management models. the environment multiple to that as certified, short, containerized, stack vehicle.

on vehicle CES event customers, advanced system to safety virtually, of architecture number vehicle smart display the event XXX to we validate provided with Moving continuous discussed vehicles Las at future to both significant functioning over with and pavilion, Outside CES delivery Vegas. portfolio, generating in-person We architecture, opportunity XX of year's deliver Inside XX Aptiv's from companies, to were pavilion, the the content we platform. future-defining Aptiv's in onboard. user fully in technologies we the a the hosted year, this some rich over OEMs. that customers full This including experience OEMs. showed our continue interest featured and we've products develop and already XX, Aptiv's and up Slide

wanted to on Moving to I turn outlook before XXXX. call the I Slide Joe, for comment our to XX, over

continue and we related inflation. to headwinds cost discussed, already chain we've material face to disruptions supply As

these executing the and driven which accelerating our laser-focused to software-defined a we we gains, business as to deliver creation, share technologies increased manage However, electrified, of development build that on market are vehicles. into through and the sustainable lasting accelerated has remain value translated day-to-day advanced underlying by profitability revenue strategy growth, more transition challenges,

expect margin a new earlier, on over in In and and Safe translate advanced Megatrends we've share rising have inflationary further material disruptions to Unfortunately, in And of supply improving we revenue to program of market are expect we but and continue, growth growth growth. back gains, eight by earnings technologies likely as enabling effects confidence half are footprint costs chain cost tight chains we As our -- which for for position, this supply awards. remain validated and begin the in pricing, and the to time. will Connected to outlook points, be various into to through product Green year. competitive we're sourcing, content including focused material of XX our I structure to managing the result strategies. and increase costs around some working expansion mentioned strong recent market our our increased redesign, recover [Indiscernible]

and headwinds, with of focus will that current guidance expansion which full-year well as execution, are a shortly in strategic Our the competitive Joe our the you XXXX operating review reflected anticipates as continued moat I'll margins the numbers. over which increased With talk will now turn leverage increased bookings, the call cash business accelerated revenue Joe growth, generation. to into that, in new through to and flow

Joseph Massaro

Starting Slide everyone. XX. a morning, on the good financial recap And Kevin. of Thanks, with fourth-quarter

with the related tax $X.XX by over billion in As for levels net per with quarter customers supporting and Kevin EBITDA earlier, partially production. QX growth highlighted supply negative foreign impact being drove and business income underlying at Aptiv's chain. Adjusted million strong to over The of increase growth of XX impact. approximately million, the market and while our million disruption $XX down X% despite $X.X $XX costs. and had the we the supply in material points high-voltage, including favorable and ongoing were respectively. offset volume $X.XX disruption safety, Revenues new Earnings were income and exchange. XXXX, by chain inflation tax $XX of income half million [indiscernible] operating lower were above disruptions second recovery $XXX lines experience. the of user the share in equity product in the costs flow-through expense, loss key million partially benefits motional growth XXXX, strong Reflecting operating $XXX supply a negative COVID of lower chain as our the on in launches offset rapid program with

for expenditures program the with flow level. positive of reflecting ahead $XXX offsetting quarter lower from investments cash the Capital to contribution million, million a timing including $XX increased partially a million year-over-year major of launches. the earnings XXXX operating $XXX capital, Lastly, working

regional production commodity chain largely lower to over vehicle model points America continued price by escalations. From the representing disruptions. Driven mix market. prior in truck down a and continued outperform to saw supply all favorable Looking revenues X%, due active XX as the growth we more in as we our FX double-digit SUV a fourth movements despite cars, at strong double-digit segments, growth on quarter strength safety passenger a of and disruptions were both and also perspective, across Europe, the from In as a reflecting lines revenues and revenue and as net region. experience XX% outgrowth compared high-voltage user well launches detail were North Slide product steep continued favorable copper strong chain offset market XX, to as of market regions decline saw supply of in in the a continued quarter the to period, over production

of new strong growth continues points and Aptiv for Kevin experience high-voltage, from the in above bookings safety, The China, and in revenue closed a continued to launches revenues as relevance businesses. reflecting out year of core XX Aptiv fourth outperformance record our over highlighted resulted the in market growth Lastly quarter technologies. market program our user demonstrate strong record by

was higher in X% Moving experience components industrial and growth well product costs. our performance full despite launches, Advanced Solutions strong disruption down Inflation, on in that ramps chain User growth by of driven timing in vehicle, quarter and quarter, including X% accounted supply those in semiconductor for costs. the lines. material includes Safety, in roughly the X%, quarter but down roughly due Together, over Safety the program due high-voltage the in of and sales for $XX a lower million Experience was million and vehicle commercial up Commercial North for for Power was market and This accounted which flat Active inputs the revenue and production. revenues engineered market. program The growth higher X% to product of was and Europe. XX% strength in a points the up despite the to in vehicle the fell revenues quarter, $XX the by down XX and year. on other million strength of America market. semiconductors underlying next over to were segment $XXX as User Segment Signal the decrease. as EBITDA down line, representing volume in slide, X% input EBITDA $XX growth to decrease. continued growth shortages million drivers two driven revenues outperformance supply translates where of the the were segments

in -- bookings our approximately on revenues billion, fronts. our For $X billion of X.X records of both lines for achieved product reported XXXX, high-voltage

In segment addition, the high-voltage year. margins exceeded for the average

Turning Slide now XXXX in our XX environment. to macro

For XXXX, to increase production vehicle XX approximately production basis. we are to expecting weighted global units X% on an million active

we chain roughly We supply expect the we through flat chain the supply being half as COVID as vehicle year. XXXX second We vehicle the first the constraints see start production to year production impact continue of and industry. as increase in XX% to half. Accordingly, expect we constraints and slowly to see the move easing in

Looking year. you'll North overall at transaction excludes a at the current relatively On is to down expected regions Aptiv. growth year quarter be Slide until disruption of the mix. stronger and close greater the XX, units. our SUV approximately outlook XXXX outlook growth, truck X% continued the find for given for In expect anticipate China favorable as River of third Europe, the recovery the last to year. in expected not Wind million XX This X% production overall XX% production America, we with we is European production

will in customers. production case results chain be XXXX, disruptions our XXXX as guidance the only volatility full-year in at we providing was As scheduled continued supply

chain up range. and our over disruption $XXX million core Experience XXXX expansion product high-voltage our America over of and to of is grow COVID XXXX. this in and to growth XX% the inflation. expected be this supply and related in by we to Safety with expect a growth multiyear year, growth vehicle growth market and market $X.X points at meaningful for We in with range of XXXX. and Consistent components costs midpoint are a to midpoint to to is of in driven expected full and ASUX by $X.X estimated X% material ramp be line global with North of programs income the chain continued protocols, billion, profitable to profitability X% further User over operating with and disruptions and our Consistent X% XX% while prior compared XXXX, will the XX.XX driven revenue our market Europe with $XX.XX With billion COVID translates segments. aligned although above XX% of in is margin $XXX nine $ the updated forecast, line million, costs engineered EBITDA expectations, market an Active businesses. continues SPS of range production the XXXX. safety covers approximately improvement penetration supply billion incur are over is of

expect the XXXX. We quarter year the of [indiscernible] chain disruptions improvement the half and the in as we third lessen second supply of heavily to come disrupted

inflation expect XXXX. We materials million to in increase approximately $XXX

And While costs, in to in will XXX. FX quarters. we these continue versus have mitigating copper have our XXXX by at commodities rate $X.XX make we impact Euro expect pricing $XX prior negative we as and take these a of driven million and of XXXX, efforts to until noted progress

to our presentation including in appendix a we exclude discussed includes River change, beginning XXXX $XXX January of amortization highlighting prior million. the call, the year. a is EPS this estimated amortization. will in change in we As adjusted reconciliation Annual XX to acquisition definition to XXXX, be Wind The our

of XX% over the comparable share For be XXXX, totals. XXXX $X.XX, We to adjusted increase an adjusted estimate per earnings

We in expect driven million. flow by capital favorable over the cash operating increase working roughly XXXX of $X just billion of earnings $XXX

as guidance to CapEx estimate the sales. revenue X% be to on XX Starting of and compared takes we Slide the with revenue includes and approximately our total puts for XXXX XXXX Lastly, of our of for And approximately growth already our recovery X% billion year. framework industry X% XX% market new over to left, of we've expected approximately $X.XX full discussed the revenues. additional has EBITDA

and FX price commodities of X%. and slight We from expect a assume headwind downs

strong see side structure by the flow-through right-hand scalable offset of on flexible to benefit of cost and expect For the of volume revenues, slide, driving partially the our we downs. EBITDA impact price on higher adjusted the

a supply a FX As million. of XXXX, inflation the we of noted, FX our remain improvement million semiconductor year-over-year material in midpoint. chain XXXX. COVID costs disruption net costs, $XXX of prices, while increase and rising and are And by XX% expecting for and $XXX and $X.X rates the EBITDA approximately approximately An year-over-year. year, resin totaled over at driven billion unfavorable headwind

to close wanted Turning guide. provide expect few Wind again are details that later included XX, to River. year and the in we a more this transaction Slide not XXXX to we around Noting the Wind River financials the

to over of as XX% driven will is revenues X as continue XX% revenue, River dollars XXXX. billion XX% about quickly River the the frame. studio growth January, for help that The deployment, management automotive, as top-line Wind the Wind further of to and revenue requiring software Aerospace performance. incorporates the with In approximately by well we River automotive, well by defense, Targeted in in represented accelerate, middleware growth tools to subscription products, Telecom, has intelligent the cloud-enabled core full talked edge lifecycle to systems software been Studio, time XXXX,XXXX offering that River their of leader industries, intelligent multiple studio development, solutions. early will key of industries a as by and introduced in XXXX. of and including edge product of penetration $ long the robust As revenues In XX% including studio has expected operating in XXXX, Wind in a achieve Wind established grown XX%. company compute portfolio reference devices, and and XXXX,

during Year ASUX to an noted reduced for also the spending these Kevin benefits will January million rate call Wind incremental$XXX Aptiv, brings the financial River for acquisition software. I'd transaction, equal like revenues X his earnings remarks. hand and on the that, As closing benefits acceleration third-party our to to With of run By call, back including of following Aptiv.

Kevin Clark

Slide Joe. before we up Thanks, questions. I'll for on XX wrap open up it now

flawless has and which on better business out focus we and into we've competitive customers revenue clear our on reflect constant and a innovation over XXXX As is positioned that new execution XXXX, converted to and bookings growth for stronger us in market. position, record resulting our it's support are

XXXX. to green XXXX near-term the part persist of but proud to challenging team of we better the While connected through aligned we safe, and we all even our what purpose-driven as deliver significant line open more to during excited for to well-positioned company I'm Operator, portfolio expect up a a our continue customers, strategy our operating questions. product record the value We're for we'll in accomplished confident Aptiv and about to employees, in remain during headwinds execution, let's with track shareholders. outperform deliver the our megatrends. and our and I'm a XXXX,

Operator

question in you. your you we to [Operator Instructions]. And interest switched our has to and ensure Instructions]. reach mute the Please Thank been follow-up. that button of allow one equipment. your [Operator one off to signal time, ask that limit yourselves

comes today of Morgan Stanley. Adam from question The Jonas first

Adam Jonas

us you great details able on no Of ask book, I'll that cars few -- your I how you order transition. And a And the have let's got again. versus, combustion but from I are is order weeks this the have making really much Customers Kevin, everybody. that book, your it say, Thanks, ago, coming record of never internal sold presentation. my legacy give sense asked customers? follow-up. a you of that's that to that's EV the first pureplay question. group

Kevin Clark

Yeah.

forward the mix our good some on say and and traditional we mix includes and with newer at electric or between look the look while, battery vehicles, net-net third battery you have is when been those and electric legacy high-voltage OEMs battery around companies of think a electrification I'd -- I at for say a mix the you companies about the two-thirds at some Adam, vehicle bring of I relates slightly the And probably legacy, better would OEMs same, traditional it's OEMs. as it they electric and with growth, as electric improved look roughly stays their the as to the models. we and you on [indiscernible] maybe as move traditional that vehicle

Adam Jonas

on getting So if making maybe consistent just some like would you more naming you're of a the of a really, wondering and there seeing EVs "premium." color them, little few the China. Kevin, becoming Would low-end, domestic see I capable what play that good Thanks, competency like on the that seeing. higher see there. what It pretty terms Do to players what cars, that's And real Do you're next extent, Great. every follow-up really in are the the trends versus are that foreign end on a be EV time? domestics seems China domestic quality, good Kevin. and quote love on the -- in years? Chinese with changing in kind more more side, the And in then way. little incumbency the lot the the competitive a of players? and Are any over evidence seeing you a you damn I'm

Kevin Clark

I OEM certainly on years. the improved strengthened and domestic X over see the competency last is side, plus would

I think we'd say, that talked about you Adam electrification. into areas

and we the China, seen we're you acceleration related Today's second China when current revenues certainly there is bookings serving. mix market an So battery is largest Europe, largest our vehicles, of our look -- certainly but electric at accelerating. related to

received side. building a remarks that on launch in will architecture doing that with related the side seeing joint to is CVC hardware area in that venture partner my and a XXXX. prepared what we around And tremendous the software-defined and for they're both we're to acceleration software The in software our award it I relates and second in mentioned smart vehicle as vehicles. demand Baidu from a vehicle We're on

a Motors We with CEC as well. also CVC Great year last -- a Wall awarded were

the overall market about So we're you you seeing in consider China what think technology. tremendous when acceleration

Adam Jonas

Appreciate it, Kevin. Thanks.

Operator

Okay.

of McNally I Now, Chris Evercore. go to

Chris Mcnally

guide ask could and Thanks so within much, good guys. of secular ADAS just the high-voltage, GOM I EV the maybe specifically specifically. drivers around If

sometimes Could and EV talk [indiscernible] what is given XX you about broad for some growth you're range You've expecting. ADAS?

Joseph Massaro

big they at not product getting see lines about starting high we larger get voltage will years Obviously Yeah, a continue [Indiscernible] Again, it's a just get Chris, as of as XX% [indiscernible] We've been, are -- continue growth historically to rather numbers couple -- see Active talked to to growth it's high given continue down bit and Safety starting it's of there. well. see but rate. coming to to over in necessarily the next that. high as strong CAGR that to

Chris Mcnally

on some with expected. guidance Is we've the would be the if because of better seen XX% it as given So [indiscernible] is better, market And broad it's better. we -- is market specifically, growth growth growth? is that market that that be the then use growth fair in-line Joe, EV EV than of proxy we've can a

Joseph Massaro

got EV think Kevin initial some that -- well, XX% number rate as I is strong take built stronger that -- launches. if on -- We've right? assumptions should there we're on estimate. be mentioned, the of growth on built obviously number should in stronger, Whereas

So we've at that seen bookings -- in the billion, and I think than X.X some obviously well. thinking. Bookings came you in initially stronger to number as we see extent were

to think think a So way about fair that's it. I

Chris Mcnally

Wind growth a is because that have And the lot of then old The next get the River, years. looking four more numbers been last to a it the to market, the acquisition actually and expected. better If that the Is could hear to get above start, coming that, from it multiyear than one, point three we'll the we X% just your growth better pre right? including XX% to great over is than all the - have that's high-level ADAS growth we multi-year that -- over outlook. maybe outlooks. at in of The up to orders a Wind sort fair related EV? but expected, River, It's eight. six But

Joseph Massaro

right? is this separate there yet. completely yeah, closed -- point, Just guide deal the haven't The at we Yeah. given

numbers So the Wind separate. are River

about that incremental subscriptions obviously coming driver there. really from studio would to talked product. what January That and to River. talked that the include about that continuing the And being does good XXth growth new growth not Wind We call, we've As be see we in there's X% on XX%.

Chris Mcnally

so Okay, much, thanks great, guys.

Operator

Our from Research. question comes Lache Rod Wolfe of next

Rod Lache

everybody. Hi,

Kevin Clark

Good Hey morning Rod. Rod?

Rod Lache

and and prepared improvement. inefficiencies and have an get obviously guidance remarks, the you I of doing XX.X% and But here you're and you even 'XX years, talk maybe drag points side, there XXXX on mentioned pricing XX% the Kevin, 'XX. with you difference during your at that little near-term of about in how next the because targeting bit freight you of underlying XXX 'XX, basis premium and strong midpoint looking couple profitability least see were at between been of XX%, the I and could much your between don't a over what in routinely, pretty EBITDA margins think your I'm get input margin I XXXX forecast. costs

Kevin Clark

the work doing engineering we we to in something level recently progress Yeah. What well standpoint, operate at and when you more significant with S protocols, volatility productivity or that's And at at continue in standpoint, two look the through. doing Underneath the [indiscernible] about safety said. think standpoint separating inefficiencies, as to outbound. last I cost supply what environment what in that relates as from we're you manufacturing an mentioned, in as make to to the inflation, at been periods we're you how where are look from When you significant a away. resulted inbound you where during look performance at G&A it standpoint, we're over Rod, operating when [indiscernible] as chain dealing you on COVID years make we're working progress. supply XXXX. in chain, from massive. both those footprint a productivity more you progress XXXX, that when production. think Listen, continue increased on of think question. disruption we're to that's continue you that look made -- But that -- material we'll manufacturing we've great a just we're you continue inefficiency just numbers look operating the when freight as we've has They're as When

And all significant And higher software, places much non-automotive ramp, electrification, it as and protocols automotive to that they then hopefully, margin as are product we as as both supply of So is portfolio the relates have our we continue it of reality in to we chain, to place, overlay space, the drops there's relates that reduced pressure that, product progress. and safety high-voltage as it components on areas. to engineered to of line. continue -- bottom COVID to operate the some top then those mix in the and the as the within make as the where relates we normalize to it ADAS, relates

look that and us position last architecture, as tremendous software. programs competitive both over both future, into years, significant vehicle the the to into Now, a couple made That's having opportunity and decision we've in as in said which principally the advanced around also software. of gives translated well hardware invest hardware development out we incremental dollars smart as

last from a months or the programs. we CVCs from been advanced We've commercially awarded programs Over before, XX and we've as think four standpoint. to to I PDCs it relates as XX a months, development said XX done SVA five

We have hardware, relate XX additional over and to to of programs transition a of sight SVA line software business. amount that SVA, that significant to win and we're to the well-positioned

it So smart was investment.

we So look for we've of the in future investments over given market increased our out we've as terms made. into the growth, outlook obviously, growth

sit, the enhancement we a of see in COVID, supply up ultimately much business cash-generative where chain As think you our margin those more obviously we to we worked portfolio in related and as result product And out you'll margin, of higher end much then nature significant reduction with through the challenges future. the costs. a

Rod Lache

are of any cognizant something be [indiscernible], different nature remind Our should what of to in we you my taking on of just maybe even that question your That bookings. you changes years? down you what can you're us and look nice compare couple any versus I different responsibility margin to way? partner, was targets Is responsibilities. $X.X the the hoping automakers And the of billion mid-decade in seeing on past how like? And just you or Safety. they're the bookings, taking winning? second Active is Can that does see that drill it

Kevin Clark

Sure.

So it's this our year. booking not billion, bookings year from the highest active an year, safety overall $X.XXX

rolling it during year record safety are whole those wins XXXX, architecture OEMs reflecting continue platform $X billion satellite next-generation of on our and the that our pursuing our a enhance think we OEMS. ADAS XXXX to as I to our five competitive was position. solutions relates currently programs There's to active we'll across advanced across that be close initial as out

The in be you and where actually Our our competency that that strongly growth perspective important so is safety, leaves which will growth given capabilities. is safety being fastest on Aptiv know, safety have platform OEM put plus, vehicles it's areas LX the systems, XX% the standpoint, for our The next is a around Aptiv Aptiv penetration LX over opportunity. years, several today, a and of market significant road an significant overall the customers. opportunity from actually positioned and our and adopting market most as today feature strengthening. portion

it it's OEMS, As to relates all map. -- would Rod, the say I it's over

development, where OEMS platform the the the we're We sensor the full for all fusion, have doing hardware, OEMs, the future software, the the integration.

OEM we that. We to have integrating OEMs with our want provide our And to platform. flexibility customers we're solution where other the their do into

where number the players to And your to Any it attracts there year, players a of listen, market, it huge, market per it's fast-growing enter are As who north right? relates are market. attention. a like other trying XX% competitors, ourselves of growing

a it's long a think challenge period of time. if it in been I you haven't

the over across globe. have XX with OEMS We business

focused go down that, position would go have their competitive and more we path strong anyone solutions, a So our OEMs that, to profitable revenue big they -- down I like is area on. than out opportunity, including own. down out we're ability and to obviously anyone we're this said would that But there, revenue else the while argue on But the deliver they we in enabling want growth. path may that do -- to develop, who about decide go do generate else's cost-effective certainly to better having to that OEMs

Joseph Massaro

Rod, it's Joe.

Kevin we Just the out in costs. on very the disruption out, focused inflation as much mid-decade and the laid with laid on targets challenges targets, we're margin still There's obviously, the XXXX. obviously,

we long half question work in year to those of this the to how the of and second a a be then. Capital long-term day it's back will and view we'll updating have Markets So

Rod Lache

Thank you. Okay.

Joseph Massaro

Yeah.

Operator

We Capital can go Markets. to RBC Joe Spak of

Joseph Spak

The outlook. the just 'XX some about, seeing. puts Joe, performance $XXX and to to the in offset that takes the mostly price-downs you're million Thanks. back you're X% of morning. seems go Good talking maybe to

all inefficiencies higher about throughout from think and these schedules choppy talked I and the 'XX, plan you logistics.

bit not into guess disruption the that you Maybe that or that surprised I'm bucket? supply bit little assuming chain is little you million with help costs shutting that a that number could was down $XXX Joe Are that in just bit Yeah, some a is of performance volatility I of that [indiscernible] some of the higher. little that's scheduled remains So a maybe a cost bulk that. plant. that

year. of obviously the we've So schedules the of first in that I'd stays. some say half assumed

or to Nobody the XXXX two just a wanted coming. You start We plans right? bit the plans, supply of January of line-of-sight was happening chain at And that schedules, price nobody give in you're month inflationary disruption little to actually of disruption end and of knew pricing, We lumpiness. them. COVID to the with inflation had for with supply smooth But sort we that that We is that the of performance, having the performance to the in the improvement those with out chain those the the buckets. ability really the able million. to keep sort of and you what automakers people and -- buckets $XXX headwinds? bucket, was can took into just with we've maintain some outlined, to then that about conversations just talk on be included on recover

Kevin Clark

that good several Yeah. actually We're we're say I work in continue would progress but making through. something very conversations OEMs. it's we with to

what challenges could I the say of Joe, in and about to effectively that supported we we cars. been keeping we've or think, And have most and us customers would negotiating done resulted were of with sharing recognizes community our that the this the resolution that, have reached by and OEMs building that's a I -- the and we incurred incremental decision, that costs in have large, sure we've appreciated that the we've cost. of supply some satisfactory made do have them are all OEM to terms everything connected. in supported the We talked suppliers and OEM make chain in going costs

Joseph Spak

they're the the in makes Maybe you. I I Thank as noticed getting think there? capitalization on Because billion. up. $X.X -- and put or -- the I closer launch. in quick Hyundai Okay. you one. commercialization That just sense getting think Can [indiscernible] us guidance closer funding update just you're one when to or loss picks

rate, could this thinking. seems on on update capital requirements, us based you there run maybe So there XX around be XX it but your maybe could like an or give just

Joseph Massaro

deal, we it we thinking hasn't from changed. When -- a the were through Yeah, Joe. we'll really call still had through perspective, It we full-year have XXXX, did a XXXX. cash cash They

Kevin Clark

about of pull that is them talked quarters, Obviously, but couple a up still multiyear March in we that level XXXX. may this of of of funding

they're the So next commercialize and couple we'll They starting years you're right. steps for progress. fully there. Motional coming They're funded, ready of over really or on obviously quarters, to be But making are commercialization. are team -- we'll with next working the and good Hyundai

So activity the ticking is up.

Joseph Spak

you. Thank

Operator

Our Bank next of comes John of question Murphy America. from

John Murphy

getting jammed level, at everything you retail and and not at just helping question advance of Good on And you're else. here. inflation, they're bringing but follow-up around is pass helping they're reality on lot But to cost The price to stuff a automakers through labor, I your raws on table time, those through same they technology the guys the and it pricing morning, the to are you able for. offset this really their guys. out and products, can pricing. that guys the wanted

or like stuck But need the forward, in curious more here on loss, industry and relationship you just Because from at share. is outside So now, of just sandwich move these or dynamic ever. anything pricing they as discussions in on what's moment chain getting facing, through. pretty collaboration? the there I'm the supply changing pressure of passing is the they're making But out the even than seems just it pricing and at well the right going extreme the you're

Kevin Clark

customers in question automotive it's pricing. are industry it price. Listen, to is Yes. relates and standard And as the looking John, answer, asked periodically think for environment pricing it's true OEM about industry, our our good we've today been I the it's a question. challenging a always

ensuring they incur. little and need case, would customer side, cost through pricing large, the as supply in think benefit. say that. there it this from doing have costs working of a However, to of mentioned. bit element There and create by on lot that say it medium of the side that But it's as do actually and the well we're that, to get environment compensated supply time various consciously. changed say standpoint. on will We're between we're we various fair and of these We're a is to is as the supporting OEMs and to an normally in There I above hasn't would And levers And that launched terms and the costs just we base. and of work incremental recognition, bit as a collaboration incurring some costs there OEMs to overextended challenging I the levers, most long -- term, a a are that cooperation, and of we as the both programs. I'll I'd more relates the through. key I of would we take the offset we period over time, that some, particular amount are are beyond,

this to relates listen, dependency, there's increase I on point your it know narrative. As

I that But is development the are to Wind level the in launching respect Wind developing as what the and back of it this there's as what sit meetings more in we software, them OEMs great calls the we originally that that was to out, I we you, wrestle after things River those about about announced they where to, us we is high OEMs several the actually application schedule help one -- areas with can acquisition, to an from in asking we increase us where bring have announced programs can no have have got to virtually that to and question, because they growth areas activity River And than as it's -- and they I of are narrative do coming reality, we doing program. about the of well great in software are challenges with talk through the delivering think struggling software interest the a vehicle, other the content suppliers as associated a the more. software software OEMs solution. tell those there OEM the can

and a there's narrative especially like understand about software. areas again, lot vertically integrating, So in-sourcing in of

of I by Coast-based driven company. our impression West think to the But a automotive development. business software OEMs OEM a the I would would related with that of that doing lot are is battery that electric automotive struggling say with -- OEM, all with we're vehicle exception virtually say but I

John Murphy

of Yeah. That lot a makes sense.

$XXX Just that? How bookings volume assumptions We're volume real or XX about Joe? going number. bookings are think backdrop The be two million that that you quick. could billion, do what $XX on of housekeeping into think [indiscernible] kind They how you about of of million. time the

Joseph Massaro

schedules and use our bookings, customer obviously for we when IHS struck. forecast, are revenue But our for [indiscernible] we John, stuff. use Yeah. the always bookings

reference there's no go always a to -- back have So we point to.

start been So those outlooks the have we production IHS for into use we stuff, bookings. always out. IHS Once years bookings would get going for QX based on

John Murphy

the some long-term anything, statement? those Is a if fair be by So near-term of value the that might undercut of pressures.

Joseph Massaro

gotten to over We close of subjectivity vehicle for They where time gets we IHS. never use -- revenue, well will bookings. it's out we're from it Yeah. but a point to introduce mean, I with have we've always momentary I'll say bookings comfortable washes as perspective enough, production. I time flex wanted think a into quantification

John Murphy

XX And lot they run you supplier you at automakers XX? partner It who else then TTTech I'm the fruits CSD, Companies. came other here looking companies Companies. XX to the follow-up Kevin, just sorry. are acquisitions wanted the in are there's Big OEMs, and booth. just who make of A through mentioned had Where through other XX I'm we're Fish curious

Kevin Clark

partners. [Indiscernible]

through OEMs, physically, of So booth, them would of say some I the some XX them virtually. XX came parties

them then on and as that. a our lot business, of supplier potential our User partners so people around imagine, can across interest a well clear sure well lot as and of SPS as Safety virtually. our So as you OEM or But And in of ASUX vehicle I make Advanced Actually, a as want number supplier to Experience. architectures I'm both partners.

John Murphy

very you Okay, Thank guys. much, great.

Joseph Massaro

John. Thanks,

Operator

Johnson Brian to [indiscernible] go please. can We of

Brian Johnson

Thank you.

software and follow to it your questions. want Wind opportunities in I that the two River the up stack opens. on Just on comments guess

intel, [indiscernible] but to River TPG to sold it in it eventually Wind under First, doubled value, for. compared amount you what

lackluster. from feedback Wind the the of of semi-community Some River was that was kind

management. in the second getting down Some to into point Intel stack Intel, then get brought question fingers at you but doesn't management, so at of application definitely I of in is, applications, needed is that TPG some around a ADAS the first RTOS new you coming point discussions questions been question fans their finger give know software. acquisition? it is, momentum in that people the And can really we've but much the of sense some us the terms far

can So you talk that? about

Kevin Clark

Yeah.

a question. great Now, it's

of deciding that had management a of the it And you I ownership could And and today. should time of strategic of well advance, where in part came test Brian, relationship. that delivered River, Wind the defense roadmap capabilities. in had that the TPG contemporary we relates developing the Wind challenges effectively the take they've significantly there amount we River, were relates an same very a aerospace, a brought ability had We they CEO I'd sleepy with But commercial at tremendous in a to fact it we're with, developed to tech as more the some our point strong designing, in element that industries work telecommunications, from they listen, very, we we refreshed strong that success. automotive team think software company opportunity, evaluate negotiations. very and by of to in chance say, As drive team and River highlighted under have and experiencing present was in a who's had the one a was where and had or Wind as like it put history to a solutions talent

very amount of team a management with a time with So management spent team. very, tremendous strong accompany the

just As as middleware, automotive to about you Linux Lx our broad the have as experience look look and it it's architecture familiar both at The a with it's benefit, automotive company listen, and that's as at well hypervisors. with not costs. you vehicle portfolio, with relates in-device VxWorks they software,

of that done. they familiar provides developed you right? in ability. or the the but and the of industries. service or about we aerospace, platform vehicle, the with benefit the with this, you're vehicle will really having contemporary development at versus provide customers over more overall Again, model operate the it, look the life off-device where layer from the in operating about current the it users from the Middleware your deploy, you with It's in certainly not approaches and software when system, a once vehicle and approaches legacy software what know really they just were, look and come So in-device telco, at defense And it's

not chain. much about also development about costs, that just about and software software, the just optimized platform not more it's more it's it's effective. makes So our much the tool efficient, in-device And software the

Joseph Massaro

Brian, it's -- just I'll Joe.

Brian Johnson

Okay. Sure.

Joseph Massaro

think to Sorry, under languished about But went revenues. the some that's down obviously. the million and information I know mean, the wasn't numbers. but why just we -- it of in on I I I Intel. Listen, provided I there, I clearly, the in deck. $XXX think, business, don't why.

in contracted can over QX middleware to I level of product grown referring represents and and Studio was the this of for think RTOS over which as XX% Kevin's you launched and business. The a growing is it at years now. accelerating. that years see, XXXX which what that the It's actually of containerized it couple was number is last growth and of it's already [indiscernible] is

the So River only are that's the at solutions is out is there you management is I really really can about talking What several containerized that full Wind There middleware right? RTOS this growth where is as statement technically typing. containerized point. put today, your a into of we're and lifecycle think true RTOS the vehicle.

automotive none. an used others The are

where there's we of where about when the capabilities. so, is bit a puck is today versus little And going their it talk

Brian Johnson

getting. that as just the And Okay. this -- you are a mentioned follow-up, calls you is

of groups. from Doug the Are into are automotive a those say software the kind earlier, getting Field management I'm to someone Ford mentioned up of leading like OEMs you lot building As you don't recruiting thinking big level at software to leaders over You often person of those. levels? organizations, run outside senior have but names, a

Kevin Clark

Yeah.

Our engagements are the very at senior levels very, OEMs. within

Brian Johnson

Look the weeks forward Thanks. to [indiscernible] for Okay. that in few conference. continuing in

Kevin Clark

Brian. Thanks,

Operator

to go can we Jefferies. Kelley Now, David of

David Kelley

consolidate you you bias the well? DMS curious there's noted. per a opportunity is just OEM Are Hey, The driver attached vehicle And there way correlation some for Thanks you? about platforms good in We're monitoring active in. guys. platform to DMS winning next-gen think if as to finding that me content to launches morning, you're there. squeezing for safety

Kevin Clark

Yes. was Listen, Active But in Active traditionally you've when historically programs market. the introduced in versus Safety. advanced it's fallen around as more Safety DMS, to category you think seen Experience that User a the about

driver for think sensing referred LX, you and plus really of monitoring. to monitoring, a in-cabin just LX need we've broader when much application the So is about driver it

especially plus it and DMS, sensing, more the now think, increasingly is Active as or demand given around us position great or Safety seen system ADAS, and experience platform, with Safety Active which space, a well opportunity. uptick in an You've given LX integration puts our we in the in in more discussion of our in-cabin

As or certainly to it I the per relates market, fastest-growing in. Joe. numbers, content it's is size know if you decent of size vehicle, don't operate we one meaningful. that the have numbers the have but I market market's today markets don't

Joseph Massaro

going lot, interesting for of vehicle Yeah. depends it the incremental. varies it's and content really replacing. Kevin No. But They it's are stuff type said, in thing, a of lot this on as is per interesting it's where a what what's

a now, you're vehicle, part referring so what's incremental of software either on what It's the content DSM going systems about if gesture if within recognition, you're it's but the perception safety. -- talking going or experience of you to, really per you're some are in augmenting types So $XX really systems, depends of things, used being tend of $XX it like for in incremental. what existing see there user that's top the cockpit, active lot or into on to of those still that it

David Kelley

Can it. as Got only you'll then give follow-up, it on conquest you there? is charging providing and you. And one a What there be role vehicles Thank level us win. an your sense just Okay. of wireless well? is that high to maybe the infrastructure aspect or

Kevin Clark

That particular as program as well vehicle. It's hardware software. is both on

this couplers for but are not you that in and we do off As I other know, obviously charge provide think particular vehicle case. OEMs things

David Kelley

Got Okay. it. you. Thank

Operator

go can And of Ittai to we Citibank. Miceli

Ittai Miceli

Good Thanks. Great. morning.

the Just two me ten new points eight quick to GOM for follow-ups target. on

can annual ten points? eight you to points to maybe what of the target you. what achieve Thank First, you articulate ten to eight would is number bookings from And portion then coming the maybe non-auto?

Kevin Clark

sure. Ittai, I am not

you As be bookings can know, lumpy.

our between guess give it's I $XX So and an it to would be consistent. mentioned, bookings, something you one think at a did from this ratio direct number. year. as I annual where we current Last standpoint, look tough an or you exact when billion we revenue year

do or baseline more our to of on billion revenues. $XX expect We

somewhere basis I annual non-automotive. in don't an on code. know say would that I about Joe, So zip

Joseph Massaro

adds point. over Yeah, call the and market, growth it vehicle generally that about industrial. it I'd a Ittai, commercial to

Ittai Miceli

all you. Great, it. that's Got Thank I have.

Operator

comes Our Dan Levy of from Credit next question Suisse.

Dan Levy

me Thank morning. in. for Good Hi. squeezing you

First, go end-market guidance. I want to to the

six below is You're XX% heard GM recently that's sizable a the to you. globally, then assuming customer for production And about forecasts. volume up third-party more growth, talked which we XX%

else? maybe than help in versus So views your more some or other assumption just just the it anything of the market you could conservatism is reconcile

Joseph Massaro

this it's At schedules, Dan. point,

are there forecast. at fairly or months, four and Obviously, the layered for detailed have five looking longer-term So in. production we those schedules customer obviously, first then And schedules. there

-- tell I'd no just getting of inventory I obviously the ready the to near-term ordering point, plants have I'd difference, be produce. think, particularly overlay I there's at because the we So, sort to biggest say in this and

Kevin Clark

tell of you I is party when the probably eight. some biggest the the is look we in the at third year. difference ramp

schedules, prepared - supply half a the are start just and of where customer first And -- think I I flat, we flat the half's that the and We year. As ramping slow flattish, ability year. in to it's back the ramp we to to think then at in that's my look ish referenced up. remarks. constraints relative chain

do we biggest we off to difference the and tended schedules obviously, what our that are That look saying. calibrate as saw. others be So

Dan Levy

Okay. And then Got it. Thank you. my follow-up.

ask a approach is, large more of maybe you components also a from want on the design how to on proactive we all the and another proactive would for the design. the the taking that past back sourcing inputting -- just whereas only they're talking in but or supplier maybe chip electronics the design in-sourcing different way. of the of they're more automaker quarter and specifically buy to saw a is control JV not you go In I box those and of they on question. in to I companies it a about chips a name Sorry, things with the sourcing -- from side the just components want one one

want they take proactive a to Now, more approach.

a approach how much from on OEMs of affect you, dictating they're them? the trend?And what design that what proactive providing is a you're how more of from that So getting there does if is

Kevin Clark

than I involved bringing on in there years. space, depends with volumes user semiconductor interacting a being to OEMs to are or what ADAS considering the it And relates think as of OEM OEMs more as or to specific often preferences whether players. to particular and OEM the within certain that's design it question Yeah. relates going as that versus for it space, your or software actually the to not, applications, Listen, it certain or relates be More think technology, the on gone table experience what is the chip or OEM relates economics I chip, infotainment players, activity technology as on application. through and semiconductor number the it

next in of again, that. the So I would say initial point, I to more a would years. eight back lot my software need specifics vehicle is over tripling on the -- going

going a lot of there's into the software So vehicle.

big a in past. obviously, like want have involved OEMs in the of part a opportunity, they just be that So to

that's say would I too. So

last that for thinks heightened the I'd closer just are relates to bag. it bit who OEMs more certainly chain probably as standpoint, you'd It the of on has it's years. is what the more we've a bit think really mixed given chain. get but with through of all model to see say transparency, want OEMs year a There to visibility, semiconductor semiconductor interactions a or players. so. There supply And trying the a some I more going that, from the business other are players, understanding supply changed, that's gone not

Dan Levy

always And you is? is need such that chips are that you to just that some on, more you use which that's chips will the such have from you customer is use? have company customers you going seeing to Or your trend been to dictating sometimes and

Kevin Clark

Yeah. say I in or any less more than we're wouldn't at this historically. point seeing have we what time

announcements. think seen more I we've

Dan Levy

you. Got it. Thank

Operator

Steven Fox Our Fox Advisors. final today from comes of question

Steven Fox

one improvements. reasons, back-half to you the me. sitting for guidance talking morning. Hi, about squeezing from year here improvements ago We I and me happening of thanks Good look a various for your the necessarily fall. just full-year back-half been have were in. question not When

start supply forward. chain the kind gauging you're risk some I'm to confidence improvements could Thanks. So gauge trying going here inflation any and we see you to that in a just period level reached where and of

Kevin Clark

There back guide. disruptive getting half going very -- we're constraints. the very, the at obviously look guide lapping put we and schedules. it's still particularly this, Listen, chain But out in a or some Supply was be it just production you what better. Yes. We're for in year. are the confident of disruptions full if are to is

at that's really of -- look as The going do is product flow freight, -- see on. again, we so line September things still improving line we we be October, chips into for the in still to see are sight those on disruption sight flow chip There's need premium some year you the guys. better. the more. August, from and to It's We've better Things of things expensive getting If reflected supply tight. of getting flow the do operate. got costing to But costs. are year goes the it balance

Steven Fox

issues? And on inflation forecast the all chain risks to the the supply

Joseph Massaro

it's it, the The about Steven. within thought range, way really we've

the end lower range, bring obviously So at the costs. be would would in our view -- that more of got we've

full-year range risk So it within we've by that of that obviously reflective end -- is really some the in things call it's one quarter at -- from which The of material to that's to perspective, think range. really point. reasons, to but if again a manage hard tried to range better the this within to the the and get flow extent of of were the higher faster the downside I'd the

Steven Fox

Great, that's really helpful. Thank you.

Kevin Clark

you. Thank

Operator

for Ladies gentlemen, today's [indiscernible] participation. we and earnings fourth that We'll for all is your be time have the Aptiv quarter XXXX call.

disconnect. now may You

Aptiv (APTV) 3 Feb 222021 Q4 Earnings call transcript