Sensata Technologies Holding PLC (ST) 2022 Q4 法說會逐字稿

Good day, and welcome to the Sensata Technologies Fourth Quarter 2022 Earnings Call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Mr. Jacob Sayer, Vice President of Finance. Please go ahead.

美好的一天，歡迎來到森薩塔科技 2022 年第四季度財報電話會議。 （操作員說明）請注意正在記錄此事件。我現在想將會議轉交給財務副總裁 Jacob Sayer 先生。請繼續。

Thank you, Jason, and good morning, everyone. I'd like to welcome you to Sensata's Fourth Quarter 2022 Earnings Conference Call. Joining me on today's call are Jeff Cote, Sensata's CEO and President; and Paul Vasington, Sensata's Chief Financial Officer. In addition to the financial results press release we issued earlier today, we will be referencing a slide presentation during today's conference call. The PDF of this presentation can be downloaded from Sensata's Investor Relations website.

謝謝你，傑森，大家早上好。歡迎大家參加森薩塔 2022 年第四季度收益電話會議。和我一起參加今天電話會議的還有 Sensata 的首席執行官兼總裁 Jeff Cote；以及 Sensata 的首席財務官 Paul Vasington。除了我們今天早些時候發布的財務業績新聞稿外，我們還將在今天的電話會議上引用幻燈片演示。本演示文稿的 PDF 可從森薩塔的投資者關係網站下載。

This conference call is being recorded and will post a replay webcast on the Investor Relations website shortly after the conclusion of today's call. As we begin, I would like to reference Sensata's safe harbor statement on Slide 2. During this conference call, we will make forward-looking statements regarding future events or the financial performance of the company that involve risks and uncertainties.

此電話會議正在錄製中，並將在今天的電話會議結束後不久在投資者關係網站上發布重播網絡廣播。在我們開始之前，我想參考幻燈片 2 上森薩塔的安全港聲明。在本次電話會議期間，我們將就涉及風險和不確定性的未來事件或公司財務業績做出前瞻性聲明。

The company's actual results may differ materially from the projections described in such statements. Factors that might cause such differences include, but are not limited to, those discussed in our Forms 10-Q and 10-K as well as other subsequent filings with the SEC. We encourage you to review our GAAP financial statements in addition to today's presentation. Most of the information that we will discuss during today's call will relate to non-GAAP financial measures.

公司的實際結果可能與此類聲明中描述的預測存在重大差異。可能導致此類差異的因素包括但不限於我們在 10-Q 和 10-K 表格以及隨後向美國證券交易委員會提交的其他文件中討論的因素。除了今天的演示文稿之外，我們鼓勵您查看我們的 GAAP 財務報表。我們將在今天的電話會議上討論的大部分信息都與非 GAAP 財務措施有關。

Our GAAP to non-GAAP financials, including reconciliations, are included in our earnings release and in the appendices of our presentation materials. The company provides details of its segment operating income on Slides 9 and 10 of the presentation, which are the primary measures management uses to evaluate the performance of the company. Jeff will begin today with highlights of our business results during the fourth quarter and full year 2022. He will then provide updates on our new business wins and key growth initiatives. Paul will cover our detailed financials for the fourth quarter, and he will also provide financial guidance for the first quarter of 2023. We'll then take your questions after our prepared remarks. Now I'd like to turn the call over to Sensata's CEO and President, Jeff Cote.

我們的 GAAP 與非 GAAP 財務數據（包括對賬）包含在我們的收益發布和我們的演示材料的附錄中。公司在演示文稿的幻燈片 9 和 10 中提供了其分部營業收入的詳細信息，這是管理層用來評估公司業績的主要措施。 Jeff 將在今天開始重點介紹我們在第四季度和 2022 年全年的業務成果。然後他將提供有關我們新業務勝利和關鍵增長計劃的最新信息。保羅將介紹我們第四季度的詳細財務信息，他還將提供 2023 年第一季度的財務指導。然後，我們將在準備好的評論後回答您的問題。現在我想把電話轉給 Sensata 的首席執行官兼總裁 Jeff Cote。

Thank you, Jacob, and welcome, everyone. I'd like to start with some summary thoughts on our performance during the fourth quarter and full year, as outlined on Slide 3. During the fourth quarter, we produced $1.015 billion in revenue, up 8.6% from the prior year period, despite a 360 basis point headwind from foreign currency. Adjusted operating margins moved higher by 70 basis points sequentially to 20.1% as we continue to focus on improving our margins to our target level of 21%.

謝謝你，Jacob，歡迎大家。我想首先對我們在第四季度和全年的表現進行一些總結，如幻燈片 3 所示。在第四季度，我們實現了 10.15 億美元的收入，比去年同期增長 8.6%，儘管來自外幣的 360 個基點逆風。調整後的營業利潤率連續上升 70 個基點，達到 20.1%，因為我們繼續專注於將利潤率提高到 21% 的目標水平。

For the full year 2022, we produced a record $4.029 billion revenue, which is up 5.5% from the prior year. Our underlying markets were pressured last year by continued supply chain disruptions, and we experienced a 240 basis point headwind associated with foreign currency. Nevertheless, for the full year, we produced 820 basis points of market outgrowth, continuing our above-target performance for the third consecutive year. We appreciate the dedication and expertise of our Sensata team members who contributed to these results.

2022 年全年，我們創造了創紀錄的 40.29 億美元收入，比上年增長 5.5%。去年，我們的基礎市場因持續的供應鏈中斷而受到壓力，我們經歷了與外匯相關的 240 個基點的逆風。儘管如此，我們全年實現了 820 個基點的市場增長，連續第三年保持高於目標的業績。我們感謝為這些結果做出貢獻的森薩塔團隊成員的奉獻精神和專業知識。

Quoting activity for new business awards was extremely active during the year. As a result, we achieved a second consecutive year of record wins. In 2021, we achieved record new business wins of more than $640 million. And in 2022, they exceeded $1 billion. Even more notable is that approximately 70% of these wins are in our Electrification growth vector, which will drive Sensata's future revenue outgrowth and are directly due to the incremental investments we have made over the past several years.

年內，新業務獎項的報價活動異常活躍。結果，我們連續第二年取得了創紀錄的勝利。 2021 年，我們創下了超過 6.4 億美元的新業務收入記錄。到 2022 年，他們的收入超過了 10 億美元。更值得注意的是，這些勝利中約有 70% 屬於我們的電氣化增長向量，這將推動森薩塔未來的收入增長，這直接歸功於我們在過去幾年中所做的增量投資。

During 2022, we also made substantial progress toward our environmental, social and governance goals. We reduced our greenhouse gas emissions intensity by more than 10% last year, reaching our 2026 target 4 years earlier than anticipated. In addition, Newsweek named Sensata as one of America's most responsible companies for 2023. 23, overall, ninth in the technology hardware sector and first in Massachusetts.

2022 年，我們在實現環境、社會和治理目標方面也取得了實質性進展。去年，我們將溫室氣體排放強度降低了 10% 以上，比預期提前 4 年實現了 2026 年的目標。此外，《新聞周刊》將 Sensata 評為 2023 年美國最負責任的公司之一。23，總體而言，在技術硬件領域排名第九，在馬薩諸塞州排名第一。

All of us anticipate more change in the end markets Sensata serves over the next 10 years than we have seen in the past 50, and as our customers transform their businesses and product portfolios to adjust to decarbonization trends, many equipment categories are electrifying and significant investment is being made in global infrastructure to support this trend. It is a strategic imperative for Sensata to enable this transformation for our customers, and we are very pleased with our accomplishments thus far as we execute on this strategy.

我們所有人都預計，森薩塔在未來 10 年服務的終端市場將發生比過去 50 年更多的變化，並且隨著我們的客戶轉變他們的業務和產品組合以適應脫碳趨勢，許多設備類別正在電氣化和重大投資正在全球基礎設施中製造以支持這一趨勢。為我們的客戶實現這一轉型是森薩塔的戰略要務，我們對迄今為止執行這一戰略所取得的成就感到非常滿意。

As shown on Slide 4, over the past several years, we have made significant investments, including both acquisitions and internal development efforts, to develop the products, technologies and capabilities our customers need as they transform their businesses. The commercial success resulting from these investments is clear. Last year's awards included the single largest business win in the company's history and represented a substantial shift in our business toward electrification-related areas.

如幻燈片 4 所示，在過去幾年中，我們進行了大量投資，包括收購和內部開發工作，以開發客戶在業務轉型時所需的產品、技術和功能。這些投資帶來的商業成功是顯而易見的。去年的獎項包括公司歷史上最大的單筆業務勝利，代表著我們業務向電氣化相關領域的重大轉變。

Sensata largely serves long-cycle end markets, which underscores the benefit of pivoting to where the market is going, and we appreciate our investors' patience through this investment cycle to secure our bright future.

森薩塔主要服務於長周期終端市場，這凸顯了轉向市場走向的好處，我們感謝投資者在這個投資週期中保持耐心，以確保我們光明的未來。

The success that we have achieved to date from our organic and inorganic investments in the growth vectors demonstrates that we have built a strong foundation for future growth.

迄今為止，我們在增長載體的有機和無機投資中取得的成功表明，我們已經為未來的增長奠定了堅實的基礎。

Now we are focused on leveraging the benefits of these investments. This includes completing the integration of the businesses we've acquired to maximize growth and focusing organic P&L investments in areas where we are having the greatest success. Consequently, as we look to 2023 and beyond, we are focusing on organic growth, improving adjusted operating margins and increasing conversion of earnings to cash flow. While we will continue to return capital to shareholders through our dividend and opportunistic share repurchases, improving free cash flow will naturally allow leverage to decline and returns on invested capital to improve over time.

現在我們專注於利用這些投資的好處。這包括完成對我們收購的業務的整合，以實現增長最大化，並將有機損益投資集中在我們取得最大成功的領域。因此，展望 2023 年及以後，我們將專注於有機增長、提高調整後的營業利潤率以及增加收益向現金流的轉化。雖然我們將繼續通過股息和機會性股票回購向股東返還資本，但隨著時間的推移，自由現金流的改善自然會降低杠桿率，提高投資資本回報率。

Paul will speak to the specific capital allocation targets later.

保羅稍後會談到具體的資本配置目標。

During 2022, we posted approximately $460 million of revenue in automotive and industrial electrification areas, up 77% from 2021. Insights posted $175 million of revenue last year, up 133% from 2021.

2022 年，我們在汽車和工業電氣化領域的收入約為 4.6 億美元，比 2021 年增長 77%。Insights 去年的收入為 1.75 億美元，比 2021 年增長 133%。

During our Electrification teach-in last February, we forecasted that Sensata would produce more than $2 billion in Electrification revenue and that Sensata content in battery electric light vehicles would grow to double current content in a comparable internal combustion light vehicle by 2026. We are well on our way to bringing this vision to life.

在我們去年 2 月的電氣化教學中，我們預測森薩塔將產生超過 20 億美元的電氣化收入，並且到 2026 年，森薩塔在電池電動輕型汽車中的含量將增長到同類內燃輕型汽車中電流含量的兩倍。我們很好在我們實現這一願景的路上。

While we still need to deliver on the product designs, underlying business wins in hand, these awards, coupled with our existing business and expected market growth over the coming 3 years, is now sufficient to deliver on our Electrification revenue target. The demonstrated commercial success from our investments establishes Sensata very well to assist our customers in their transformational journeys and to realize our own exciting potential. Now I'd like to turn the call over to Paul.

雖然我們仍然需要交付產品設計、手頭的基礎業務勝利，但這些獎項，加上我們現有的業務和未來 3 年的預期市場增長，現在足以實現我們的電氣化收入目標。我們的投資所取得的商業成功奠定了森薩塔的基礎，可以幫助我們的客戶進行轉型之旅，並發揮我們自身令人興奮的潛力。現在我想把電話轉給保羅。

Thank you, Jeff. Key highlights for the fourth quarter. As shown on Slide 7 include revenue of $1.015 billion, an increase of 8.6% from the fourth quarter of 2021. Revenue growth reflected strong outgrowth across the company of 1,180 basis points in quarter as well as acquisitions, partially offset by foreign currency headwinds and overall market contraction. Adjusted operating income was $204.3 million, an increase of 3.4% compared to the fourth quarter of 2021. This increase is primarily due to higher volumes, pricing and productivity improvements, somewhat offset by unfavorable movements in foreign currency, impact from investments in the growth vectors of Electrification and Insights and divestiture of our Qinex semiconductor test and thermal business last year.

謝謝你，傑夫。第四季度的主要亮點。如幻燈片 7 所示，收入為 10.15 億美元，比 2021 年第四季度增長 8.6%。收入增長反映了整個公司本季度 1,180 個基點的強勁增長以及收購，部分被外匯逆風和整體市場收縮。調整後營業收入為 2.043 億美元，與 2021 年第四季度相比增長 3.4%。這一增長主要是由於銷量增加、定價和生產率提高，但在一定程度上被外彙的不利變動、增長向量投資的影響所抵消電氣化和洞察以及我們 Qinex 半導體測試和熱業務的剝離。

Adjusted operating margins improved 70 basis points sequentially to 20.1%. Adjusted earnings per share in the fourth quarter grew 10.3% from the prior year quarter and faster than revenue. We saw approximately the same $5 million decline in channel inventory this quarter as we did a year ago. So channel inventory movements had no impact on our outgrowth in the fourth quarter on a year-over-year basis.

調整後的營業利潤率環比提高 70 個基點至 20.1%。第四季度調整後的每股收益比上年同期增長 10.3%，快於收入。我們發現本季度的渠道庫存下降與一年前大致相同，下降了 500 萬美元。因此，渠道庫存變動對我們第四季度的同比增長沒有影響。

Turning to Slide 8. As we entered 2022, inflation significantly impacted our component and logistics costs at a time when we were also increasing investments in our growth vectors. This impacted adjusted operating margin significantly, leading them to decrease from the 21% margin level that we delivered during 2021. Substantial improvements in pricing to offset increased costs, better material availability and supply chains slowly improved. Productivity improvements and cost control have driven a steady increase in the adjusted operating margin through the year.

轉向幻燈片 8。當我們進入 2022 年時，通貨膨脹顯著影響了我們的組件和物流成本，同時我們也在增加對增長向量的投資。這顯著影響了調整後的營業利潤率，導致他們從我們在 2021 年交付的 21% 的利潤率水平下降。定價的顯著改善以抵消成本增加，更好的材料可用性和供應鏈緩慢改善。生產力的提高和成本控制推動了全年調整後營業利潤率的穩步增長。

While our financial guidance for the first quarter includes a sequential decline to 19.5% on lower volumes, we intend to continue these efforts and return to our target margin rate of 21% as quickly as possible. Now I'd like to comment on the performance of our 2 business segments in the fourth quarter of 2022, starting with Performance Sensing on Slide 9. Our Performance Sensing business reported revenues of $757.7 million, an increase of 10.6% compared to the same quarter last year.

雖然我們對第一季度的財務指引包括因銷量下降而連續下降至 19.5%，但我們打算繼續這些努力，並儘快回到我們 21% 的目標利潤率。現在，我想評論一下 2022 年第四季度我們兩個業務部門的表現，從幻燈片 9 上的性能傳感開始。我們的性能傳感業務報告的收入為 7.577 億美元，與同一季度相比增長 10.6%去年。

Automotive revenue increased from strong content growth, higher pricing and market growth, partially offset by unfavorable foreign currency. Growth in heavy vehicle off-road revenue reflects strong outgrowth and the impact of acquisition in Insights, partially offsetting -- offset by declining markets and unfavorable foreign currency. Performance Sensing operating income was $196.9 million, with operating margins of 26%.

汽車收入的增長得益於強勁的內容增長、更高的定價和市場增長，部分被不利的外匯所抵消。重型車輛越野收入的增長反映了強勁的增長和 Insights 收購的影響，部分抵消了——被市場下滑和不利的外匯所抵消。 Performance Sensing 營業收入為 1.969 億美元，營業利潤率為 26%。

Segment operating margins declined year-over-year due to the dilutive impact of unfavorable foreign currency, acquisitions and product mix. As shown on Slide 10, Sensing Solutions reported revenues of $257 million in the fourth quarter, an increase of 3% as compared to the same quarter last year. Industrial revenue decreased from weaker markets, especially in HVAC and appliance, and unfavorable foreign currency. Aerospace revenue increased strongly in the quarter due to strong content growth, market and pricing.

由於不利的外匯、收購和產品組合的稀釋影響，該部門的營業利潤率同比下降。如幻燈片 10 所示，Sensing Solutions 報告第四季度的收入為 2.57 億美元，與去年同期相比增長 3%。工業收入因市場疲軟而下降，尤其是暖通空調和家電以及不利的外匯。由於強勁的內容增長、市場和定價，本季度航空航天收入增長強勁。

Sensing Solutions operating income was $74.4 million, with operating margins of 28.9%. The decrease in segment operating margin was primarily due to the impact of acquisitions and clean energy. On Slide 11, corporate and other operating expenses not included in segment operating income were $65.5 million in the fourth quarter of 2022. Adjusted for charges excluded from our non-GAAP results, corporate and other costs were $65.5 million, an increase from the prior year quarter, primarily reflecting higher research and development -- and business development spends to support our Megatrend growth initiatives, partially offset by lower compensation -- incentive compensation and favorable foreign exchange.

傳感解決方案營業收入為 7440 萬美元，營業利潤率為 28.9%。分部營業利潤率的下降主要是由於收購和清潔能源的影響。在幻燈片 11 中，2022 年第四季度不包括在部門營業收入中的公司和其他運營費用為 6550 萬美元。根據我們的非 GAAP 業績排除的費用進行調整後，公司和其他費用為 6550 萬美元，比上年有所增加季度，主要反映了更高的研發支出——以及支持我們的大趨勢增長計劃的業務發展支出，部分被較低的薪酬——激勵薪酬和有利的外匯所抵消。

We invested $70 million in Megatrend-related engineering spend in 2022 to design and develop differentiated solutions for the fast-growing trends impacting our customers, and we expect to spend about the same level in 2023. The record new business wins of more than $640 million in 2021 and more than $1 billion in 2022, along with our rapid revenue growth in these areas, clearly demonstrates how Sensata's expanded capabilities are appealing to our customers and driving market outgrowth.

我們在 2022 年投資了 7000 萬美元用於與大趨勢相關的工程支出，為影響客戶的快速增長趨勢設計和開發差異化解決方案，我們預計 2023 年的支出水平大致相同。創紀錄的新業務收入超過 6.4 億美元2021 年和 2022 年超過 10 億美元，以及我們在這些領域的收入快速增長，清楚地表明森薩塔擴展的能力如何吸引我們的客戶並推動市場增長。

Moving to Slide 12. We generated $184 million of free cash flow during the fourth quarter and $311 million in free cash flow during the year. Free cash flow this year was negatively impacted by increases in receivables as our business and revenues grew. Our decision to carry higher inventory levels to ensure continuity of supply in uncertain markets and from acquisition-related compensation payments.

轉到幻燈片 12。我們在第四季度產生了 1.84 億美元的自由現金流，在這一年產生了 3.11 億美元的自由現金流。隨著我們的業務和收入的增長，今年的自由現金流受到應收賬款增加的負面影響。我們決定提高庫存水平，以確保在不確定的市場和與收購相關的補償支付中的供應連續性。

For the full year 2023, we expect free cash flow conversion to be approximately 75% of adjusted net income, reflecting Sensata's long-term average. Capital expenditures are to be in the range of $170 million to $180 million for 2023. As Jeff mentioned previously, acquisitions and organic investments have provided us with the needed assets and capabilities to achieve strong leadership positions and growth in the areas of Electrification and Insights. Consequently, we expect operating margins to improve and free cash flow to grow, which will naturally lead to lower net leverage over time.

對於 2023 年全年，我們預計自由現金流轉換約為調整後淨收入的 75%，反映了森薩塔的長期平均水平。 2023 年的資本支出將在 1.7 億美元至 1.8 億美元之間。正如 Jeff 之前提到的，收購和有機投資為我們提供了在電氣化和洞察力領域取得強大領導地位和增長所需的資產和能力。因此，我們預計營業利潤率將提高，自由現金流將增長，這自然會隨著時間的推移降低淨槓桿率。

As a result, we are updating our target net debt-to-EBITDA range to 1.5 to 2.5x, which will likely take 2 to 3 years to attain. Our net leverage ratio was 3.4x at the end of December 2022. We returned capital to shareholders during the fourth quarter, repurchasing $50 million of our shares under our existing stock repurchase authorization, a reduction from the third quarter, and we recently announced a quarterly dividend of $0.11 per share that is expected to be paid on February 22 to shareholders of record on February 8.

因此，我們將淨債務與 EBITDA 的目標範圍更新為 1.5 至 2.5 倍，這可能需要 2 至 3 年才能實現。截至 2022 年 12 月末，我們的淨槓桿率為 3.4 倍。我們在第四季度向股東返還了資本，根據我們現有的股票回購授權回購了 5000 萬美元的股票，比第三季度有所減少，我們最近宣布了季度預計將於 2 月 22 日向 2 月 8 日登記在冊的股東支付每股 0.11 美元的股息。

In addition, we intend to pay down $250 million of our outstanding variable rate term loan during the first quarter, which is currently the most expensive piece of debt in our capital structure. Moreover, we will continue to evaluate the company's liquidity needs and manage the capital structure according to our new net leverage target range. We are providing financial guidance for the first quarter of 2023, as shown on Slide 13.

此外，我們打算在第一季度償還我們未償還的可變利率定期貸款中的 2.5 億美元，這是目前我們資本結構中最昂貴的債務。此外，我們將繼續根據新的淨槓桿目標範圍評估公司的流動性需求並管理資本結構。我們正在提供 2023 年第一季度的財務指導，如幻燈片 13 所示。

Our expectations are based upon the end market growth outlook shown on the right side of the page. We remain more conservative than IHS on automotive production estimates for the fourth quarter because of broad macroeconomic and China COVID-related risks. Foreign exchange represents an expected $27 million headwind to revenue in the first quarter. Our current fill rate is approximately 92% of the revenue guidance midpoint for the first quarter. At the midpoint, adjusted operating income margin is expected to be 19.5%, a sequential decline from the fourth quarter, largely reflecting lower volumes.

我們的預期基於頁面右側顯示的終端市場增長前景。由於廣泛的宏觀經濟和與中國 COVID 相關的風險，我們對第四季度汽車產量的估計仍然比 IHS 更為保守。外匯對第一季度收入的預期不利影響為 2700 萬美元。我們目前的填充率約為第一季度收入指導中點的 92%。在中點，調整後的營業收入利潤率預計為 19.5%，比第四季度連續下降，主要反映了銷量下降。

This also represents 80 basis point year-over-year increase from the first quarter of 2021 on flat revenue, primarily due to improved productivity and pricing. Our first quarter guide anticipates that our operating income at the midpoint grows at 4% and earnings per share increases at 10% from the prior year quarter, faster than the rate of anticipated revenue growth.

與 2021 年第一季度收入持平相比，這也意味著同比增長 80 個基點，這主要是由於生產力和定價的提高。我們的第一季度指南預計，我們的中點營業收入將比去年同期增長 4%，每股收益將增長 10%，快於預期的收入增長率。

Looking to the balance of 2023, we expect foreign exchange to be a 1.1% headwind to revenue and an $0.08 headwind to earnings per share, given current exchange rates. Given market and macroeconomic uncertainties facing Sensata and other companies in our sector, we are discontinuing our practice of providing full year guidance, choosing instead to only guide for the upcoming quarter. We believe data from third-party market forecasters and our customers is reasonably accurate such that we can forecast the next few months, while visibility into future quarters is currently less clear, given broader economic concerns. Now let me turn the call back to Jeff for closing comments.

展望 2023 年，考慮到當前匯率，我們預計外匯將對收入造成 1.1% 的不利影響，對每股收益造成 0.08 美元的不利影響。鑑於森薩塔和我們行業中的其他公司面臨的市場和宏觀經濟不確定性，我們將停止提供全年指導的做法，而是選擇僅提供下一季度的指導。我們相信來自第三方市場預測機構和我們客戶的數據相當準確，因此我們可以預測未來幾個月，而考慮到更廣泛的經濟問題，目前對未來幾個季度的可見性還不太清楚。現在讓我把電話轉回 Jeff 以徵求結束意見。

Thanks, Paul. Let me wrap up with a few key messages as we outlined on Slide 14. Sensata's business organizational model and growth strategy are strong, resilient and reliable as we deliver mission-critical, highly engineered solutions required by our customers. While we expect end markets to continue to be volatile in the near term due to inflation, rising interest rates, the risk of recession in various geographies and geopolitical events, we have a strong management team with proven experience in navigating choppy markets.

謝謝，保羅。讓我總結一下我們在幻燈片 14 中概述的一些關鍵信息。森薩塔的業務組織模型和增長戰略強大、有彈性且可靠，因為我們提供客戶所需的關鍵任務、高度工程化的解決方案。雖然我們預計由於通貨膨脹、利率上升、各個地區的衰退風險和地緣政治事件，終端市場在短期內將繼續波動，但我們擁有一支強大的管理團隊，在駕馭波濤洶湧的市場方面擁有豐富的經驗。

We also expect 2023 to be another year of above target market outgrowth for Sensata. We continue to invest in our growth initiatives as we transform the business to focus on these rapid growth opportunities across all the end markets we serve. We are making excellent progress as demonstrated by strong new business wins and significant revenue growth. This success allows us to focus on strengthening our financial returns through organic growth, improved margins, stronger free cash flow and return -- increase in returns on capital.

我們還預計 2023 年將是森薩塔實現高於目標市場增長的又一年。隨著我們將業務轉型為專注於我們服務的所有終端市場的這些快速增長機會，我們將繼續投資於我們的增長計劃。強勁的新業務勝利和顯著的收入增長證明了我們正在取得出色的進展。這一成功使我們能夠專注於通過有機增長、提高利潤率、更強勁的自由現金流和回報——增加資本回報率——來加強我們的財務回報。

Part of this is targeting a new net leverage range of 1.5 to 2.5x over the next 2 to 3 years. We continue to innovate on behalf of our customers, solving their hard to do engineering challenges and providing differentiated solutions to an ever broader array of customers, while leveraging our expanded product set and capabilities. Solving mission-critical challenges enable Sensata to enhance long-term customer retention and deliver industry-leading margins for shareholders.

其中一部分目標是在未來 2 至 3 年內將新的淨槓桿率範圍設定為 1.5 至 2.5 倍。我們繼續代表我們的客戶進行創新，解決他們難以完成的工程挑戰，並為越來越廣泛的客戶提供差異化的解決方案，同時利用我們擴展的產品集和功能。解決關鍵任務挑戰使 Sensata 能夠提高長期客戶保留率並為股東提供行業領先的利潤。

And finally, I'm pleased about our results in delivering on Sensata's long-standing vision to help create a cleaner, safer, more electrified and connected world, not just for our customers' products but also through our own operations. We believe we are meaningfully contributing to a better world. We are making good progress on achieving our ESG targets, and we'll look to update them in our upcoming sustainability report, bolstering the long-term sustainability and success of the company for all of its stakeholders. Now I'd like to turn the call back to Jacob.

最後，我很高興我們實現了森薩塔的長期願景，即幫助創造一個更清潔、更安全、更電氣化和互聯的世界，這不僅是為了我們客戶的產品，也是通過我們自己的運營。我們相信我們正在為一個更美好的世界做出有意義的貢獻。我們在實現 ESG 目標方面取得了良好進展，我們將在即將發布的可持續發展報告中更新這些目標，以促進公司所有利益相關者的長期可持續發展和成功。現在我想把電話轉回 Jacob。

Thank you, Jeff. We'll now move to Q&A. Given the large number of listeners on the call, please limit yourself to 1 question each. Jason, go ahead and introduce the first question.

謝謝你，傑夫。我們現在轉到問答環節。鑑於通話中有大量聽眾，請限制自己每人 1 個問題。 Jason，請繼續介紹第一個問題。

Our first question comes from Wamsi Mohan from Bank of America.

我們的第一個問題來自美國銀行的 Wamsi Mohan。

I appreciate the $460 million you just had in Electrification and your $2 billion target here. How are you viewing the opportunity for Sensata in the face of the price cuts that have been announced by EV makers? And I guess, it's a twofold. Firstly, does it change the trajectory in your mind of either adoption or how you get to your $2 billion? And secondarily, do you anticipate price pressure on your own pricing? Or do you still see that as a net positive lever in '23?

我很感激你剛剛在電氣化方面投入的 4.6 億美元和你在這裡的 20 億美元目標。面對電動汽車製造商宣布的降價，您如何看待森薩塔的機會？我想，這是雙重的。首先，它是否改變了你心目中的採用或你如何獲得 20 億美元的軌跡？其次，您是否預計自己的定價會面臨價格壓力？或者你仍然認為這是 23 年的淨積極槓桿嗎？

Thanks, Wamsi. A lot to unpack there, but let me start with a view of a trend of electrification given what we've experienced, but also the more recent OEM price cuts to be more competitive on OEMs. Listen, the last 3 to 5 years, as we've looked at forecasts associated with EV penetration, every year, it's gone up. And that's why we've been investing heavily in this space because we do believe that, that is the future and that trend is accelerating.

謝謝，瓦姆西。那裡有很多東西要拆開，但讓我從我們所經歷的電氣化趨勢開始，還有最近的 OEM 降價以提高 OEM 的競爭力。聽著，在過去的 3 到 5 年裡，當我們查看與電動汽車普及率相關的預測時，它每年都在上升。這就是為什麼我們一直在這個領域進行大量投資，因為我們相信，這就是未來，而且這種趨勢正在加速。

So I would say that, that trend would likely continue as we go forward. And so the investments that we made were the right ones. Now we've had great success in winning opportunities. There has been a lot of quoting activity as our customers gear up for this trend. The quotes around our new business win and the focus on electrification support that that's where we're aiming and that's the success we're achieving, that's where our M&A targets have been, that's where our organic investment has been disproportionately in these areas to prepare for this transition.

所以我想說，隨著我們的前進，這種趨勢可能會繼續下去。因此，我們所做的投資是正確的。現在我們在贏得機會方面取得了巨大成功。隨著我們的客戶為這一趨勢做好準備，出現了大量的報價活動。圍繞我們贏得新業務的報價以及對電氣化支持的關注是我們的目標，這是我們正在取得的成功，這就是我們的併購目標所在，這就是我們在這些領域的有機投資不成比例的地方，以準備對於這個過渡。

On the last point around your question of the pricing, pricing is always difficult with our customers. And I think everyone knows that we lagged a little bit in the early part of 2022 because we were trading off the dialogue with customers to make sure that we were winning the new business associated with that. But there -- our customers expect us to be a long-term partner. They understand the need for us to address this point.

關於定價問題的最後一點，我們的客戶總是很難定價。而且我想每個人都知道我們在 2022 年初有點落後，因為我們在與客戶的對話中進行權衡，以確保我們贏得與之相關的新業務。但是在那裡 - 我們的客戶希望我們成為長期合作夥伴。他們理解我們需要解決這一問題。

And I would expect that not in '23, but as we go forward, we'll get back into more of a mode where we can deliver productivity year-over-year as inflation eases and will be able to continue the more normal business model associated with helping our customers succeed in the marketplace.

而且我預計不是在 23 年，而是隨著我們的前進，我們將回到更多的模式，隨著通貨膨脹的緩解，我們可以逐年提高生產力，並將能夠繼續更正常的商業模式與幫助我們的客戶在市場上取得成功相關聯。

Our next question comes from Scott Davis from Melius Research.

我們的下一個問題來自 Melius Research 的 Scott Davis。

Can we talk about the new leverage rates and just how that really impacts -- how you think about M&A as part of the growth algorithm?

我們能否談談新的槓桿率以及它的真正影響——你如何看待併購作為增長算法的一部分？

Yes. I guess I would start with the fact that from a strategic standpoint, over the last 2.5 years, we've been investing in the capabilities to be able to bring solutions to the marketplace based upon what we've been hearing from our customers and what we believe will be the trend in the future. And we've made an enormous amount of progress. And so from our [stand and the NBO] wins that we've achieved, I think, demonstrate that. $700 million alone in 2022 of wins associated with electrification. And so I wouldn't start with the conclusion that we wanted to delever as being the strategy.

是的。我想我會從這樣一個事實開始，即從戰略的角度來看，在過去的 2.5 年裡，我們一直在投資能力，以便能夠根據我們從客戶那裡聽到的信息以及我們的意見將解決方案推向市場我們相信這將是未來的趨勢。我們已經取得了巨大的進步。因此，我認為，從我們的 [看台和 NBO] 勝利中，我們已經取得了勝利，證明了這一點。僅 2022 年就有 7 億美元與電氣化相關的勝利。因此，我不會從我們希望將去槓桿化作為戰略的結論開始。

The conclusion was we have all the pieces that we need, and now we need to reap the benefits associated with all of those investments that we've made. And that will naturally result in us spend more of our time on the organic growth associated with the acquisitions and the current customer relationships, improving margins and delevering will happen as a result of that. So there is a focus here on making sure we realize those benefits associated with the work that we've done. And we've set a new -- we set a new leverage target associated with that.

結論是我們擁有所有需要的部分，現在我們需要收穫與我們所做的所有這些投資相關的收益。這自然會導致我們將更多時間花在與收購和當前客戶關係相關的有機增長上，從而提高利潤率和去槓桿化。因此，這裡的重點是確保我們意識到與我們所做的工作相關的那些好處。我們設定了一個新的——我們設定了一個與之相關的新槓桿目標。

The next question comes from Samik Chatterjee from JPMorgan.

下一個問題來自摩根大通的 Samik Chatterjee。

I guess if we can spend a bit of time talking about the margin guidance that you have for the 21% for FY '23. And one of the questions we're getting this morning is if you have visibility into reaching that margin number that has to be predicated with some level of visibility on the revenue trajectory through the year. So just wondering sort of how to think about what revenues that's been predicated on as well as what's -- I know you called out the macro environment, but what sort of impact you're seeing on autos or fill rates from macro environment and what's driving that sort of higher uncertainty in your business?

我想我們是否可以花點時間談談你對 23 財年 21% 的保證金指導。我們今天早上收到的一個問題是，您是否能夠看到必須以對全年收入軌蹟的一定程度可見性為前提的保證金數字。所以只是想知道如何考慮所預測的收入以及什麼 - 我知道你提到了宏觀環境，但是你看到宏觀環境對汽車或填充率有什麼樣的影響以及驅動因素您的業務中存在那種更高的不確定性？

I mean I couldn't quite hear that.

我的意思是我聽不太清楚。

Yes. So if they -- I think the question was around our comfort to get to the 21% margin given the market dynamic. Clearly, volume will help us achieve our 21% margin target. So we're not giving full year guidance, but we have management intent associated with marching towards that target over time. Volume will help either in the form of outgrow to market or market growth, FX tailwind versus headwind will help. And as we go into 2023, at least into the first quarter, we have a market decline, and we have foreign exchange headwinds. So it's a little bit harder to get to that incremental margin profile and so we will get there over time.

是的。因此，如果他們——我認為問題在於我們能否在市場動態下達到 21% 的利潤率。顯然，交易量將幫助我們實現 21% 的利潤率目標。因此，我們不會提供全年指導，但我們有與隨著時間的推移朝著該目標邁進相關的管理意圖。交易量將以市場增長或市場增長的形式提供幫助，外匯順風與逆風將有所幫助。隨著我們進入 2023 年，至少進入第一季度，我們的市場出現下滑，並且我們面臨外匯逆風。因此，要達到那個增量利潤率配置文件有點困難，所以我們會隨著時間的推移到達那裡。

The question is, at what point in time, and I think that will depend on market forces and other things that are helping associated with the tailwinds to get to that margin profile.

問題是，在什麼時間點，我認為這將取決於市場力量和其他有助於與順風相關的因素以達到該利潤率。

The next question comes from Matt Sheerin from Stifel.

下一個問題來自 Stifel 的 Matt Sheerin。

I wanted to ask a question on your -- within Sensing Solutions, the appliance and HVAC market, it looks like you're going to be down year-over-year for the fifth quarter in a row here. I know post-pandemic, there's been weakness there in inventory. But could you talk about visibility there? And when do you see that market bottoming?

我想問一個關於你的問題——在傳感解決方案、家電和暖通空調市場，看起來你將連續第五個季度同比下降。我知道大流行後，庫存一直很疲軟。但是你能談談那裡的能見度嗎？你什麼時候看到市場觸底？

Well -- Yes. For the first quarter, we are anticipating the -- our industrial market, which is where our HVAC market lives to continue to go down as destocking occurs and other impacts associated with the real estate market and so forth, take hold. But we've seen a couple of quarters now of decline. And so the question will be, when does that return to a more normal level and start to recover. It's hard to predict because it's the one end market where there is more channel inventory rather than our OEM focused markets.

嗯，是。對於第一季度，我們預計 - 我們的工業市場，即我們的 HVAC 市場所在的地方，隨著去庫存的發生以及與房地產市場等相關的其他影響，將繼續走低。但我們現在已經看到幾個季度的下降。所以問題是，什麼時候會恢復到更正常的水平並開始恢復。很難預測，因為它是一個擁有更多渠道庫存的終端市場，而不是我們以 OEM 為中心的市場。

But I really feel as though the transition that's happening associated with the -- excuse me, the HVAC market associated with [Puron] levels associated with the need for other sensing content and equipment given the change in the refrigerant there's lots of long-term opportunity there that we're excited about that we're seeing success. In the near term, we're just going to have to manage through it, but the last couple of quarters for our industrial business have been down pretty dramatically.

但我真的覺得正在發生的轉變與 - 對不起，HVAC 市場與 [Puron] 水平相關，與對其他傳感內容和設備的需求相關，因為製冷劑的變化有很多長期機會在那裡，我們很高興我們看到了成功。在短期內，我們將不得不通過它進行管理，但我們工業業務的最後幾個季度已經大幅下滑。

The next question comes from Luke Junk from Baird.

下一個問題來自 Baird 的 Luke Junk。

Jeff, you stated in your prepared remarks and has followed up with that in Q&A, this strong foundation you've built for future growth. Now you're focused on leveraging the benefits of those investments. Want to put a finer point on the M&A piece of that. You go at this time, you laid out a vision of annual M&A growth of 400 to 600 basis points, are you pulling that back today? Just how should we think about squaring what you're seeing today versus the vision you laid out a year ago and what has changed specifically?

傑夫，你在準備好的發言中陳述了這一點，並在問答中跟進了這一點，這是你為未來發展奠定的堅實基礎。現在您專注於利用這些投資的好處。想對其中的併購部分提出一個更好的觀點。你在這個時候走了，你制定了每年併購增長 400 到 600 個基點的願景，你今天要收回嗎？我們應該如何考慮將您今天所看到的與您一年前製定的願景相比較，以及具體發生了什麼變化？

Yes. So yes, we are. So we've been very clear that in the past, our capital allocation was to ensure we pay the dividend and then to do M&A to make sure that we were prepared for the future with our customers. And we feel as though we are well prepared now, the NBO opportunity to support that, that we've won and the engagement with the customer supports that. And we believe now is the time to really continue to invest organically.

是的。所以是的，我們是。所以我們非常清楚，過去我們的資本配置是為了確保我們支付股息，然後進行併購以確保我們為客戶的未來做好準備。我們覺得我們現在已經做好了充分的準備，NBO 有機會支持這一點，我們已經贏了，與客戶的接觸也支持了這一點。我們相信現在是真正繼續有機投資的時候了。

And we've also said that we'll stay in that $65 million to $70 million organic investment level to bring those products to market to realize the potential associated with this. So the M&A focus is going to go away at this point. We're going to digest the M&A-related activity that we've done and continue to drive organic growth in the business to a level that is commensurate with the opportunities that we see in the market. Thanks for the question.

我們還表示，我們將保持 6500 萬至 7000 萬美元的有機投資水平，將這些產品推向市場，以實現與此相關的潛力。因此，此時併購焦點將消失。我們將消化我們已經完成的與併購相關的活動，並繼續推動業務的有機增長，使其達到與我們在市場上看到的機會相稱的水平。謝謝你的問題。

The next question comes from Mark Delaney from Goldman Sachs.

下一個問題來自高盛的馬克德萊尼。

Nice to see the EBIT margin expansion. When you think about the plan to expand margins over the course of 2023, how secure is the pricing needed to achieve that? And do you need several OEMs to still accept higher pricing? Or is the pricing mostly or entirely set at this point?

很高興看到息稅前利潤率擴大。當您考慮在 2023 年期間擴大利潤率的計劃時，實現這一目標所需的定價有多安全？您是否需要多個原始設備製造商才能接受更高的定價？還是定價大部分或全部在此時確定？

I can take it. So we do expect elevated pricing in '23 over '22. And it comes in many different forms, depending on the end markets. They have all different behaviors around pricing. But much of the pricing that was secured last year continues into 2023. Now we're going to have to continue to secure new pricing as inflation or other costs drive up, and so we'll continue to work with customers. But we have a very good track record now in a process with our customers to have those conversations to engage with them around the cost that we're seeing and the cost that we want to pass on to them.

我可以接受。因此，我們確實預計 23 年的定價會高於 22 年。它有許多不同的形式，具體取決於終端市場。他們在定價方面有各種不同的行為。但去年確定的大部分定價將持續到 2023 年。現在，隨著通貨膨脹或其他成本的上升，我們將不得不繼續確定新的定價，因此我們將繼續與客戶合作。但是我們現在在與客戶的過程中擁有非常好的記錄，可以圍繞我們看到的成本和我們希望轉嫁給他們的成本與他們進行對話。

Our next question comes from Christopher Glynn from Oppenheimer.

我們的下一個問題來自奧本海默的克里斯托弗格林。

So curious on the pretty notable new business wins. In 2023, do you think you can replicate that level you put up for '22? Or should we think of '22 as naturally interim peak on design and cycles?

對非常顯著的新業務勝利非常好奇。在 2023 年，您認為您可以復制您為 22 年設定的水平嗎？還是我們應該將 22 年視為設計和周期的自然過渡高峰期？

Yes. Great question, Chris. The opportunities are based upon what in '22 was a very robust pipeline of sourcing opportunities at our customers. As we look into 2023, it's still quite robust, but it's not at the level that it was when we entered 2022. So it's a great point, $1.046 billion is what we wanted new business opportunities in '22. We'll keep charging toward that. But when you look at the pipeline of opportunities that are out there right now, getting to another $1 billion is going to be challenging, but we'll keep driving toward it.

是的。好問題，克里斯。這些機會基於 22 年我們客戶的一個非常強大的採購機會管道。當我們展望 2023 年時，它仍然非常強勁，但它沒有達到我們進入 2022 年時的水平。所以這是一個很好的觀點，10.46 億美元是我們在 22 年想要的新商機。我們將繼續為此努力。但是當你看看現在存在的機會管道時，再增加 10 億美元將是一項挑戰，但我們會繼續朝著這個目標努力。

And candidly, there will be sourcing opportunities that come out during the year that we don't know about yet. So I think the key point here is based upon the business wins that we have in hand and expectations that third parties have on our market growth in our current business, we feel very comfortable that we have all we need to get to that $2 billion. But clearly, I know that following question is, okay, when are you going to increase it beyond the $2 billion? And we're going to keep driving at it to make sure that we realize the full potential associated with the future revenue base for the business. I appreciate the question, Chris.

坦率地說，這一年將會出現我們還不知道的採購機會。所以我認為這裡的關鍵點是基於我們手頭的業務勝利以及第三方對我們當前業務市場增長的期望，我們感到非常自在我們擁有達到 20 億美元所需的一切。但很明顯，我知道接下來的問題是，好吧，你打算什麼時候將其增加到 20 億美元以上？我們將繼續努力，以確保我們實現與業務未來收入基礎相關的全部潛力。我很欣賞這個問題，克里斯。

The next question comes from Amit Daryanani from Evercore.

下一個問題來自 Evercore 的 Amit Daryanani。

I guess I understand the hesitation to not provide a full year guide, but maybe just touch on your expectations for outgrowth in '23. I think last quarter, you first talked about outgrowth to be the high end of the 400 to 600 basis points range in calendar '23. Would love to sort of get an update on that, if you could. And maybe you can talk about how much of that do you think is content versus pricing as well?

我想我理解不提供全年指南的猶豫，但也許只是觸及你對 23 年增長的期望。我認為上個季度，你首先談到了 23 年日曆中 400 到 600 個基點範圍的高端。如果可以的話，我很想知道這方面的最新情況。也許你可以談談你認為內容與定價有多少？

So we have developed our delivered outgrowth much greater than the targets that we set over the last 3 years, which has been a great outcome. For next year, based on what we have visibility to, which is pretty high, we would expect our outgrowth to be in the high end of our target range for '23 or slightly or a bit above.

因此，我們已經實現了比過去 3 年設定的目標更大的成果，這是一個很好的結果。對於明年，根據我們所了解的情況，這是相當高的，我們預計我們的增長將處於我們 23 年目標範圍的高端或略高於或略高於。

I guess Paul, would there be a split between pricing versus content on that number? Or is it all content?

我想 Paul，該號碼的定價與內容之間會有分歧嗎？還是全部內容？

It is going to be more content than pricing in '23.

在 23 年，內容將比定價更多。

But pricing is part of that...

但定價是其中的一部分......

Pricing is going to be part of that. Like I said earlier, it's elevated year-over-year, but the content is certainly is the biggest driver of that outgrowth.

定價將是其中的一部分。就像我之前說的，它逐年上升，但內容無疑是這種增長的最大驅動力。

The next question comes from Shreyas Patil from Wolfe Research.

下一個問題來自 Wolfe Research 的 Shreyas Patil。

Just wanted to circle back to the comment on channel inventory. I believe last quarter you mentioned a $20 million headwind associated with that. It looked like it was -- sounded like it was flat in Q4. So just how to think about channel inventory destocking as we get into 2023?

只是想回到對渠道庫存的評論。我相信上個季度你提到了與此相關的 2000 萬美元逆風。看起來它是 - 聽起來它在第四季度持平。那麼，隨著我們進入 2023 年，如何考慮渠道庫存去庫存化呢？

I guess the first comment would be that we saw a $20 million contraction in Q3. We thought there'd be contraction in Q4. There was about $5 million. So year-over-year, it's no impact on growth because we had $5 million contraction last year. So it wasn't as bad as low or as high as we thought it might have been. But we saw a very good performance in the auto business, delivered significant growth in the quarter, both from market growth and outgrowth. So executed really well, delivered a really good outcome.

我想第一個評論是我們在第三季度看到了 2000 萬美元的收縮。我們認為第四季度會出現收縮。大約有500萬美元。所以與去年同期相比，這對增長沒有影響，因為我們去年收縮了 500 萬美元。所以它沒有我們想像的那麼低或那麼高。但我們看到汽車業務的表現非常好，在本季度實現了顯著增長，無論是市場增長還是增長。所以執行得非常好，交付了非常好的結果。

As we look forward, we've looked back to 2021, we know that there was a depletion in inventory. It was a build in inventory in '22, and it was about, I guess, about $70 million or so we thought we would have to unwind. We've seen some of that unwind this year. There could be some more unwind next year. But we are seeing inventory levels increase in the channel in terms of wholesale in the market.

展望未來，我們回顧了 2021 年，我們知道庫存已經耗盡。這是 22 年的庫存構建，我猜它大約是 7000 萬美元左右，我們認為我們必須放鬆。今年我們已經看到了其中的一些放鬆。明年可能會有更多的放鬆。但我們看到，就市場批發而言，渠道中的庫存水平有所上升。

So maybe that has come to an end, but we're still going to need to watch it carefully because it appears based on the math that there should be more of an unwind to occur. It's difficult to know the timing of that.

所以也許這已經結束，但我們仍然需要仔細觀察它，因為根據數學看來，應該會有更多的放鬆發生。很難知道那是什麼時候。

Our next question comes from Chris Snyder from UBS.

我們的下一個問題來自瑞銀集團的 Chris Snyder。

I wanted to ask on margins. When the company says operating margin will improve through 2023 towards the 21% target, does this mean that the 21% can be hit in the back half of the year? Or just that margins will grow off the 19.5% pace in Q1? And I ask because, historically, Q1 is always the seasonal trough for margins. So is that just kind of typical seasonality? Or should we expect a more substantial build than that?

我想問邊緣。當公司表示到 2023 年營業利潤率將提高至 21% 的目標時，這是否意味著下半年可以達到 21%？或者僅僅是利潤率將從第一季度的 19.5% 的速度增長？我問是因為從歷史上看，第一季度始終是利潤率的季節性低谷。那麼這只是一種典型的季節性嗎？或者我們應該期待比這更堅固的構建？

Yes, the expectation is for margins to grow sequentially from the 19.5% upward. The 21% is an annual target level that we're striving for. So I would expect us to have margins that continue to move up and very likely to be 21% in a quarter. But we're really talking about can we deliver 21% for the year? We're going to work to get to that as quickly as possible. But as Jeff said, volume is a big contributor to the margin expansion. So with better volumes, we obviously have a better chance to get into that number more quickly.

是的，預期利潤率將從 19.5% 開始連續增長。 21% 是我們正在爭取的年度目標水平。所以我預計我們的利潤率會繼續上升，很可能在一個季度達到 21%。但我們真正在談論的是我們能否實現今年 21% 的目標？我們將努力盡快實現這一目標。但正如傑夫所說，銷量是利潤率擴張的重要貢獻者。因此，有了更好的銷量，我們顯然有更好的機會更快地進入這個數字。

And it's worth noting that during 2022 from Q1 to Q4, we saw 140 basis point improvement in margins, given that focus. And as Paul said, we'll continue to work toward it. Thank you.

值得注意的是，在 2022 年第一季度至第四季度期間，我們看到利潤率提高了 140 個基點，鑑於這一重點。正如保羅所說，我們將繼續朝著這個方向努力。謝謝。

Our next question comes from Jim Suva from Citigroup.

我們的下一個問題來自花旗集團的 Jim Suva。

Jeff, in your prepared comments, you mentioned a lot about new business wins and going to be starting to gain traction. Can you give us a little more color where are those new business wins? Are they more like exterior of the car, battery management, charge stations for the car, interior, heating and controls for car? I'm just trying to picture and visualize where you're seeing the great success with this.

傑夫，在你準備好的評論中，你提到了很多關於新業務的勝利，並將開始獲得牽引力。你能給我們更多的顏色嗎？那些新的業務勝利在哪裡？它們更像是汽車的外觀、電池管理、汽車充電站、汽車內飾、加熱和控制嗎？我只是想描繪和想像你在哪裡看到了巨大的成功。

Yes, absolutely. So obviously, it's based -- it's distributed across the end markets that we serve. So this isn't all about automotive new business wins, but it's the biggest end market that we have. It's the biggest portion of our revenue and it's the biggest portion of the $1 billion. There are really 2 big areas that we're winning. There's a bunch of sockets that we had long-term positions in, so tire pressure, [rate] management, environmental control that continue and grow going forward.

是的，一點沒錯。很明顯，它基於 - 它分佈在我們服務的終端市場。所以這不僅僅是關於汽車新業務的勝利，而是我們擁有的最大的終端市場。這是我們收入的最大部分，也是 10 億美元中最大的部分。我們確實在兩大領域取得了勝利。我們有很多長期持有的插座，所以輪胎壓力、[速率] 管理、環境控制將繼續並在未來發展。

Because in a battery electric environment, those systems need to be more finely tuned and more efficient. So we see more opportunity for outgrowth in those areas. The new areas are around that -- what will be the powertrain. It's the battery management process, so it's contactors, fuses, isolation monitoring, battery disconnects. We've been talking about a lot of these capabilities that we both acquired and developed and we're seeing incredible progress.

因為在電池電力環境中，這些系統需要更精細地調整和更高效。因此，我們在這些領域看到了更多的發展機會。新的領域圍繞著這個——什麼是動力總成。這是電池管理過程，所以它是接觸器、保險絲、隔離監控、電池斷開。我們一直在談論我們獲得和開發的許多這些功能，並且我們看到了令人難以置信的進步。

And it's not just in light vehicle, it's in HVOR, it's in stationary or battery charging systems; it's in industrial applications. So all of these products and solution sets that we've built play across those markets. And last year, $700 million of our $1 billion of NBOs were in the area of Electrification, so those areas that we've talked about there.

不僅在輕型車輛中，在 HVOR 中，在固定式或電池充電系統中也是如此；它在工業應用中。因此，我們構建的所有這些產品和解決方案集都在這些市場上發揮作用。去年，我們 10 億美元的 NBO 中有 7 億美元在電氣化領域，所以我們在那裡討論過的那些領域。

Our next question comes from David Kelley from Jefferies.

我們的下一個問題來自 Jefferies 的 David Kelley。

Maybe one more follow-up on the margin discussion from my end. I was hoping you could give us a view into your own supply chain and maybe you can give us a sense of how you're thinking about material electronics and maybe even logistics cost inflation and some of the component availability embedded in that targeted margin ramp in '23?

也許從我這邊再跟進一次邊際討論。我希望您可以讓我們了解您自己的供應鏈，也許您可以讓我們了解您是如何考慮材料電子產品的，甚至可能是物流成本通脹以及目標利潤率上升中嵌入的一些組件可用性'23？

So Jeff and I, we guess we can both take it. In terms of the supply chain, I mean, it has slowly been improving. We're seeing more improvement on the automotive side. Still strongly a little bit on the industrial side in terms of the supply chain and availability of electronics. And we do see inflation -- material inflation next year continuing and at a rate similar to what we probably -- what we experienced this year. So it's still going to be a challenge. But again, the pricing is there to mitigate that.

所以傑夫和我，我們想我們都可以接受。在供應鏈方面，我的意思是，它一直在慢慢改善。我們在汽車方面看到了更多改進。就供應鍊和電子產品的可用性而言，在工業方面仍然有一點點。我們確實看到了通貨膨脹——明年的物質通貨膨脹將繼續存在，而且其速度可能與我們今年所經歷的相似。所以這仍然是一個挑戰。但同樣，定價可以緩解這種情況。

Logistics was a headwind in 2022 in terms of both rate and because of the disruption of the supply chain, the need to expedite material. We see the logistics cost turning the other way becoming favorable as rates start to come down and continue to come down in a more stable supply chain that allow us to manage the movement of the material in and out of the factories much more efficiently. So it should be -- should not be the headwind that was -- that what it was in 2022. In fact, it could be a tailwind for us.

物流在 2022 年的速度和供應鏈中斷方面都是逆風，需要加快材料。隨著費率開始下降並在更穩定的供應鏈中繼續下降，我們看到物流成本轉向另一種方式變得有利，這使我們能夠更有效地管理進出工廠的材料流動。因此，2022 年的情況應該是——不應該是逆風。事實上，這對我們來說可能是順風。

Our next question comes from Joe Giordano from Cowen.

我們的下一個問題來自 Cowen 的 Joe Giordano。

Can you just clarify the 2x battery target versus ICE? Where are you exiting 2022? And how linear is that journey to the 2x in 2026? And just to clarify, is all of that content on the car itself? Or are you considering like peripheral stuff on like charging equipment as well in that calculation?

您能否澄清 2 倍電池目標與 ICE？ 2022 年你要去哪裡？ 2026 年的 2x 之旅有多線性？澄清一下，所有這些內容都在汽車本身上嗎？還是您在計算中也考慮了充電設備等外圍設備？

Yes. Joe, thanks. So the $2 billion target is broader than light vehicle. It's across the company, the target to get to electrification revenue in all of the end markets that we serve. The 2x battery electric is very specific to the light vehicle market. And similar to our confidence in being able to get to the $2 billion revenue in Electrification as a company with opportunities in hand, we are making great progress and feel very good about the double content on battery electric.

是的。喬，謝謝。因此，20 億美元的目標比輕型汽車更廣泛。這是整個公司的目標，目標是在我們服務的所有終端市場獲得電氣化收入。 2x 電池電動車非常適合輕型汽車市場。與我們有信心作為一家手頭有機會的公司能夠在電氣化領域獲得 20 億美元的收入一樣，我們正在取得巨大進步，並且對電池電力的雙重內容感到非常滿意。

In a lot of the areas that I've talked about, the question that Jim Suva asked around where that content is coming from, we're seeing increasing opportunities to get really important sockets with our customers, not only in the legacy areas that we've gone after in internal combustion platforms but also on electrification, in light vehicles. So we feel great about the 2x content by the same time frame. Thanks for the question.

在我談到的很多領域，Jim Suva 就內容的來源提出的問題，我們看到越來越多的機會與我們的客戶建立真正重要的接口，而不僅僅是在我們的遺留領域在內燃機平台以及輕型車輛的電氣化方面都有所追求。因此，我們對同一時間段內的 2 倍內容感到滿意。謝謝你的問題。

Our next question comes from Travis Bucknall from Truist Securities.

我們的下一個問題來自 Truist Securities 的 Travis Bucknall。

I'm calling on behalf of Will Stein this morning. We're wondering if you could update us on what you're observing in the supply chain by each end market. More specifically, we're also wondering if you can give an update based on China and the impact that they've had from recent lockdowns having ended?

今天早上我代表 Will Stein 打電話來。我們想知道您是否可以向我們更新您在每個終端市場的供應鏈中觀察到的情況。更具體地說，我們還想知道您是否可以提供基於中國的最新情況以及最近封鎖結束對他們產生的影響？

Yes. So I think two parts of the question around the supply chain, which I'll elaborate a little bit more. Paul will provide a perspective as to what we're seeing in terms of the impact on supply chain. And the second part, I think, was around what we're seeing in China. So on the supply chain question, I would echo what Paul said, right? We're seeing some of that abate, but it's not gone away. We still do see inflation across some of our raw material categories.

是的。所以我認為圍繞供應鏈的問題有兩個部分，我會詳細說明一下。保羅將就我們在對供應鏈的影響方面所看到的情況提供一個觀點。我認為，第二部分是關於我們在中國看到的情況。所以關於供應鏈問題，我會回應保羅所說的，對吧？我們看到了一些減弱，但它並沒有消失。我們仍然看到一些原材料類別出現通貨膨脹。

We still do see pockets of challenge associated with shortage of parts, but it's clearly abating from where it was at its peak. But it's still upside down from what is a normal business model where we would be able to operate in a normal environment, and we'll keep working away at that. Obviously, we're getting a lot better at managing through that. The team has done an outstanding job, but we're not completely out of the woods in terms of the supply chain challenges that we've been experiencing.

我們仍然確實看到了與零件短缺相關的一些挑戰，但它顯然已經從高峰期開始減弱。但它仍然與我們能夠在正常環境中運營的正常商業模式背道而馳，我們將繼續努力。顯然，我們在管理方面做得更好。該團隊做得非常出色，但就我們一直面臨的供應鏈挑戰而言，我們並沒有完全擺脫困境。

On the China question, candidly, I think the rebound in China in the fourth quarter was a bit of a disappointment. I would have expected there to be more of a recovery in China in the fourth quarter because I just inherently believe that the Chinese government would put incentives in place to stimulate the economy. Clearly, the move away from a Zero COVID policy is at least getting things moving again, unfortunately, having negative impact in terms of infections and death in the country.

關於中國問題，坦率地說，我認為中國在第四季度的反彈有點令人失望。我原本預計第四季度中國會有更多複蘇，因為我只是天生相信中國政府會採取激勵措施來刺激經濟。顯然，取消零 COVID 政策至少讓事情再次發生變化，不幸的是，在該國的感染和死亡方面產生了負面影響。

But the expectation would be that going into first quarter, it's going to continue to be a little bit choppy in terms of the overall market environment in China. But hopefully, as we progress throughout the year, we'll see some improvement there as things get back to a more normal steady state. It's an important market for us. But again, we serve a global market, and things balance out in terms of puts and takes across markets and geographic markets and end markets that we serve.

但預計進入第一季度，就中國的整體市場環境而言，它將繼續有點波動。但希望隨著我們全年的進步，隨著事情恢復到更正常的穩定狀態，我們會看到一些改善。這對我們來說是一個重要的市場。但同樣，我們服務於全球市場，並且在我們服務的市場和地理市場以及終端市場之間的看跌期權和收購方面取得平衡。

There are no more questions in the queue. This concludes our question-and-answer session. I would like to turn the conference back over to Jacob Sayer for any closing remarks.

隊列中沒有更多問題。我們的問答環節到此結束。我想將會議轉回給 Jacob Sayer 作閉幕詞。

Thank you, Jason. I'd like to thank everyone for joining us this morning. Sensata will be participating in the Morgan Stanley Technology Investor Conference in San Francisco in early March. We look forward to seeing you at that event or on our first quarter earnings call at the end of April. Thank you for joining us this morning and for your interest in Sensata. Jason, you can now end the call.

謝謝你，傑森。我要感謝大家今天早上加入我們。森薩塔科技將於 3 月初參加在舊金山舉行的摩根士丹利科技投資者大會。我們期待在該活動或 4 月底的第一季度財報電話會議上見到您。感謝您今天早上加入我們並對森薩塔感興趣。傑森，你現在可以掛斷電話了。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。