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REFINITIV STREETEVENTS
       EDITED TRANSCRIPT
       ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

       EVENT DATE/TIME: APRIL 27, 2021 / 12:00PM GMT

       OVERVIEW:
       ST reported 1Q21 results with revenues of $942.5m, adjusted net income of $137.6m
       and adjusted EPS of $0.86. Co. expects full year 2021 revenues to be $3.675-3.825b,
       adjusted net income to be $509-557m and adjusted EPS to be $3.20-3.50. For
       2Q21, Co. guides for revenue of $960-990m, adjusted net income of $134-144m
       and adjusted EPS of $0.84-0.90.

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©2021 Refinitiv. All rights reserved. Republication or redistribution of Refinitiv content, including by framing or similar means, is prohibited without the prior written
consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

CORPORATE PARTICIPANTS
Jacob A. Sayer Sensata Technologies Holding plc - VP of Finance & CFO of Performance Sensing Gbu
Jeffrey J. Cote Sensata Technologies Holding plc - President, CEO & Director
Paul S. Vasington Sensata Technologies Holding plc - Executive VP & CFO

CONFERENCE CALL PARTICIPANTS
Amit Jawaharlaz Daryanani Evercore ISI Institutional Equities, Research Division - Senior MD & Fundamental Research Analyst
Craig Matthew Hettenbach Morgan Stanley, Research Division - VP
David Neil Williams Loop Capital Markets LLC, Research Division - VP
James Dickey Suva Citigroup Inc. Exchange Research - Research Analyst
Luke L. Junk Robert W. Baird & Co. Incorporated, Research Division - Senior Research Analyst
Mark Trevor Delaney Goldman Sachs Group, Inc., Research Division - Equity Analyst
Matthew John Sheerin Stifel, Nicolaus & Company, Incorporated, Research Division - MD
Michael R. Filatov Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
Robert G. Jamieson Cowen and Company, LLC, Research Division - Associate
Wamsi Mohan BofA Securities, Research Division - Director

PRESENTATION
Operator
Good morning, and welcome to the Sensata Technologies First Quarter 2021 Earnings Conference Call. (Operator Instructions) Please note, this
event is being recorded.

I would now like to turn the conference over to Jacob Sayer, Vice President, Finance. Please go ahead.

Jacob A. Sayer - Sensata Technologies Holding plc - VP of Finance & CFO of Performance Sensing Gbu
Thank you, Andrew, and good morning, everyone. I'd like to welcome you to Sensata's First Quarter 2021 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. We'll post a replay of today's webcast shortly after the
conclusion of today's call.

As we begin, I'd like to reference Sensata's safe harbor statement on Slide 2. During this conference call, we'll make forward-looking statements
regarding future events or the financial performance of the company that involve certain risks and uncertainties. The company's actual results may
differ materially from the projections described in such statements. Factors that might cause 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.

On Slide 3, we show GAAP -- Sensata's GAAP results for the first quarter 2021. We encourage you to review our GAAP financial statements in addition
to today's presentation. Most of the subsequent information that we will discuss during today's call will relate to non-GAAP financial measures.
Reconciliations of our GAAP to non-GAAP financial measures are included in our earnings release and in our presentation materials. The company

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

provides details of its segment operating income on Slides 12 and 13 of the presentation, which are the primary measures management uses to
evaluate the business.

Jeff will begin today's call with highlights of our business during the first quarter of 2021. He will then provide an update on our recent progress
in our key Electrification and Smart & Connected megatrend growth areas. Paul will cover our detailed financials for the first quarter of 2021,
including organic and market outgrowth by business unit, our segment reporting and provide financial guidance for the second quarter and
updated guidance for the full year 2021. 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.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Thank you, Jacob, and welcome, everyone. I'd like to start with some summary thoughts on our performance during the first quarter of 2021 as
outlined on Slide 4.

The business recovery we experienced during the second half of 2020 gained steam during the first quarter. Our agile response to increased demand
drove 22% revenue growth from the prior year period, a record $942.5 million. We delivered $198 million in operating income during the quarter,
an increase of $61.4 million and a 330 basis point expansion in margin from the prior year period. This growth is a testament to our leading market
positions and the strength and flexibility of our manufacturing and commercial model. We continue to capitalize on improving markets and
supported our customers as they return to higher levels of production during the quarter. The combination of more robust demand, our strong
market outgrowth and the acquisition of Xirgo has enabled us to raise our financial guidance for the full year. I'd like to recognize the innovation
and hard work of our entire team in achieving these strong results.

Looking at our performance year-over-year. We once again delivered strong market outgrowth. For the first quarter of 2021, we produced 1,070
basis points of outgrowth in our heavy vehicle off-road business, and 910 basis points of outgrowth in our automotive business. Sensata is in a
strong financial position. We generated $77 million in free cash flow in the first quarter, and we took additional steps to further enhance our financial
position and flexibility.

During the first quarter, we redeemed our 6.25% notes that were due in 2026 and issued new notes due in 2029 at a historically low interest rate
of 4%. These transactions extended the average maturity and lowered our total cost of fixed debt by 80 basis points to 4.5%. We are confident that
our new business wins in 2021 will exceed last year's level of $465 million. This solidifies our ability to continue to deliver strong outgrowth in the
coming years.

In Smart & Connected, we closed the previously announced acquisition of Xirgo Technologies on April 1, greatly expanding our ability to provide
data insights to transportation and logistics customers, and adding a new customer base as well for these solutions.

We continue to invest in our megatrend growth initiatives and increased our organic investment to $12 million in the first quarter from $6 million
in the first quarter of last year. These investments will allow us to pursue significant market opportunities. We also achieved a meaningful milestone
in electrification through a joint venture with Churod Electronics, which I'll talk more about on the next slide.

Moving to Slide 5. Sensata takes a holistic view of electrification and its growing impact on the markets we serve. Electrification is not just about
electric light vehicles to us, but it includes heavy vehicles and charging infrastructure necessary to support this ecosystem. We see additional
opportunities in industrial and grid applications, some of which are more nascent today. Sensata is already a leader -- a leading provider in
high-voltage protection on EVs and charging infrastructure, and we intend to participate in areas of the evolving market that enable electrification
to become more widespread.

Our joint venture with Churod Electronics extends our electrical protection capabilities to mass market EVs and other electrified equipment
worldwide. Churod will contribute access to its ceramic high-limitation contactor intellectual property. These contactors are optimized for
medium-voltage applications in the 150 to 400 amp range common in mass market vehicles. They will also dedicate engineering resources and

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

contribute manufacturing equipment to the JV. Sensata will contribute $9.5 million and dedicate application engineers and salespeople, and we
plan to consolidate the financials of the JV in our P&L.

The JV will provide medium-voltage contactors to transportation OEMs in China, and Sensata will sell the product line to customers elsewhere in
the world. This JV expands our contactor capabilities in the automotive market to vehicles that have shorter ranges and longer charging times,
which are more common in Asia. This enables Sensata to offer a broader electrification solution set for electric vehicle manufacturers globally, and
increases our total addressable market by more than $500 million by 2030. We are enthusiastic about this new partnership and the opportunities
it provides.

As I mentioned, Electrification is -- to us, is more than EVs, and Sensata seeks to be a partner of choice for heavy vehicle and industrial OEMs
transitioning to electrified solutions as well. Sensata is a leading provider of electrification solutions for charging station OEMS, including those
shown on Slide 6. In addition, we recently an signed exciting business win with new commercial EV powertrain supplier, Hyliion and EV commercial
truck manufacturer, Workhorse, extending our electrification efforts.

During the first quarter, as previously announced, we completed the acquisition of Lithium Balance to add battery management systems to our
product capabilities. We are expanding our capabilities in the e-mobility space beyond components by developing hardware and software solutions,
including battery management solutions for heavy vehicle and industrial applications. This also represents an incremental $500 million in addressable
market for Sensata by 2030.

Moving to Slide 7. We are expanding the electrification solutions we provide for critical applications across all the end markets we serve, but
especially in automotive. The rapid introduction of new electric vehicles provides a healthy tailwind for Sensata's revenue growth. Our content in
EVs represents a 20% uplift in content value as compared to the internal combustion vehicles of similar class. This content uplift is derived from a
broad array of Sensata sensors and other components that we designed into battery electric vehicles, in many cases, using the same underlying
technology product families that we use in internal combustion vehicles.

Additionally, certain sensors carry over directly from internal combustion vehicles, such as brake pressure or tire pressure sensors. We also designed
additional sensors or devices unique to EVs, such as contactors and electric motor position sensors. We are broadening and deepening our portfolio
-- our product portfolio to support this expanding market.

Our automotive addressable market is large today and growing rapidly. Applications in internal combustion vehicles make up most of our automotive
addressable market today, and this space is expected to continue to grow over the next 10 years, even with the shift in type of vehicles produced.
In addition, while the electrification applications that we serve represent a smaller market today, they are expected to grow very rapidly until they
become an even larger opportunity than internal combustion engines for Sensata by 2030. As a result, we are expecting a doubling of our automotive
addressable market by 2030.

On Slide 8, I want to provide an update on another meaningful milestone we achieved in our Smart & Connected initiative. We closed the acquisition
of Xirgo Technologies on April 1, and welcome the Xirgo team, its capabilities and its customers to Sensata. Xirgo is a leading telematics and data
insight provider for fleet management across the transportation and logistics segments. They bring a comprehensive suite of telematics asset
tracking devices, cloud-based data insight solutions as well as emerging sensing applications and data services. Xirgo is complementary to and
meaningfully extend Sensata's organic Smart & Connected solution for commercial fleet managers. And is consistent with Sensata's strategy to
move beyond serving vehicle OEMs and engaging with the broader transportation and logistics ecosystem.

Xirgo expands our Smart & Connected addressable markets to $15 billion by 2030 by adding cargo, container and light vehicle fleet management
to our heavy vehicle OEM and fleet owners. Xirgo is a fast-growing business. It is expected to generate more than $100 million in annualized revenue
in 2021 and grow in excess of 20% per year over the next several years. We already have committed orders for more than 80% of the revenue we
expect Xirgo to generate for the balance of 2021. Xirgo was also very profitable with approximately 50% gross margins and 25% EBITDA margins
and requires little capital expenditure.

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Also during the quarter, we were pleased to sign up another top 25 North American fleet customer and began installation of our solution set,
demonstrating our ability to move from selling hardware to providing data insight solutions on a monthly recurring subscription model. Later in
the quarter, we'll webcast a teach-in for investors, covering our transportation and logistics data insight initiative, so listeners can better understand
this offering, the evolving market and our go-to-market strategies.

I'm pleased with our progress against our megatrend initiatives, which supports our increased investment to pursue these large, fast-growing
markets, driven by secular trends. We intend to continue our efforts to expand Sensata solutions for these areas organically through third-party
collaboration and through acquisitions. As I've said before, we see numerous opportunities to utilize our strong financial position, our engineering
capabilities, supply chain and customer relationships to meaningfully enlarge our addressable markets through organic efforts as well as bolt-on
acquisitions and partnerships within these megatrends.

I'd now like to turn the call over to Paul. Paul?

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
Thank you, Jeff. Key highlights for the first quarter, as shown on Slide 10, include record revenue of $942.5 million, an increase of 21.7% from the
first quarter of 2020.

Organic revenue increased 18.8% and changes in foreign currency increased revenue by 2.9%. Adjusted operating income was $198.1 million, an
increase of 44.9% compared to the first quarter of 2020, primarily due to higher revenues, savings from cost reduction programs and favorable
foreign currency, partially offset by elevated costs related to the industry-wide semiconductor chip shortage, higher spend to support megatrend
growth initiatives and higher incentive compensation aligned to improve financial performance.

Adjusted net income was $137.6 million, an increase of 65.4% compared to the first quarter of 2020, largely due to higher revenues and improved
operating performance in the quarter. Adjusted EPS was $0.86 in the first quarter, an increase of 62.3% compared to the prior year quarter.

Now we'll discuss our performance by end markets in the first quarter of 2021, as outlined on Slide 11. As I mentioned a moment ago, we reported
organic revenue increase of 18.8% year-on-year. This compares with overall end market growth of approximately 10.9%, representing market
outgrowth of 790 basis points for Sensata.

Our heavy vehicle off-road business posted an organic revenue increase of 32.8%, representing end market growth of 22.1% and 1,070 basis points
of market outgrowth. Our China on-road truck business continued to post better-than-expected growth on the adoption of NS VI emissions
regulations. And we are also benefiting from a wave of electromechanical operator controls pre-installed in new offered equipment. For the past
3 years, HVOR has delivered an average 780 basis points of market outgrowth.

Our automotive business posted an organic revenue increase of 19.3%. Automotive production rebounded from the year ago period, growing
10.2%. Our automotive business product market outgrowth of 910 basis points in the first quarter, led by continued new product launches in
powertrain emissions, safety and electrification-related applications and systems. For the past 3 years, automotive has delivered an average 560
basis points of market outgrowth.

Our industrial business increased 16.8% organically as global industrial end markets continue to recover in the quarter. Strong growth in heating,
ventilation and air conditioning, new electrification launches and supply chain restocking benefited our industrial business.

Our aerospace business decreased 22.4% organically, reflecting reduced OEM production and much lower air traffic, which continue to negatively
impact our aerospace aftermarket business. New product launches, primarily in defense, partially offset the significant aerospace market decline
this quarter.

Now I'd like to comment on the performance of our 2 business segments in the first quarter of 2021, starting with Performance Sensing on Slide
12. Our Performance Sensing business reported record revenues of $714.5 million, an increase of 25.6% compared to the same quarter last year.

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

Excluding the positive impact from foreign currency of 3.2%, Performance Sensing organic revenue increased 22.4%. Performance Sensing operating
income was $195.8 million, an increase of 45% as compared to the same quarter last year with operating margin of 27.4%. The increase in segment
operating income was primarily due to higher revenues, savings from cost reduction actions and favorable foreign currency, somewhat offset by
elevated costs related to the industry-wide semiconductor chip shortage. Performance Sensing generated incremental margin of 42% in the first
quarter on higher revenue as compared to the prior year period.

As shown on Slide 13, Sensing Solutions reported revenues of $228 million in the first quarter of 2021, an increase of 10.9% compared to the same
quarter last year. Excluding the positive impact from foreign currency of 2.1%, Sensing Solutions organic revenue increased 8.8%.

Sensing Solutions operating income was $66.9 million, an increase of 18.4% for the same quarter last year, with operating margin of 29.3%. Like
Performance Sensing, the increase in segment operating income was primarily due to higher revenues and savings from cost reduction actions,
somewhat offset by elevated costs from the industry-wide semiconductor chip shortage. Sensing Solutions generated incremental margin of 46%
in the first quarter and higher revenue as compared to the prior year period.

On Slide 14. Corporate and other costs not included in segment operating income were $68.6 million in the first quarter of 2021. Excluding charges
added back to our non-GAAP results, corporate and other costs were $61.8 million, an increase of $8.6 million from the prior year quarter, primarily
due to higher research and development and business development spend to support our megatrend growth initiatives and higher global incentive
compensation costs aligned to our improving financial performance.

We currently expect approximately $50 million to $55 million in megatrend-related spend in 2021 to design and develop differentiated sensor-rich
and data insight solutions for the fast-growing and transformational mega transactors of Electrification and Smart & Connected.

Slide 15 shows Sensata's first quarter 2021 non-GAAP results. Adjusted operating income was up 44.9% compared to the same quarter last year,
and adjusted operating margin increased 330 basis points to 21%. The increase in both adjusted gross margin and adjusted operating margin
largely reflects the rapid increase in revenue from depressed levels experienced last year due to the impact of COVID-19 pandemic. We acted early
to reduce our cost structure while continuing to invest in megatrends especially in end market that we believe will enable us to deliver long-term
sustainable growth.

We've included an operating income margin walk for the first quarter of 2020 to the first quarter of 2021, showing a margin benefit from increased
volume and productivity as well as the impact of certain cost increases, including costs associated with the global shortage of semiconductors,
COVID-related costs, higher incentive compensation costs and increased investments in our megatrend initiatives.

As shown on Slide 16, we generated $77 million of free cash flow during the first quarter, representing a 56% conversion rate of adjusted net
income, which was tempered by rising accounts receivable from higher revenues and the timing of 2020 cash balances paid to employees during
the first quarter of this year. For the full year, we expect free cash flow conversion to be approximately 85% of adjusted net income.

For the full year 2021, we expect capital expenditures to be in the range of $160 million to $170 million. Sensata's net debt-to-EBITDA ratio was
2.9x at the end of March. Through increasing earnings and free cash flow generation, we expect our net leverage ratio to be near the bottom of
our target operating range of 2.5 to 3.5x by the end of the year, absent further acquisitions.

We have provided financial guidance for the second quarter of 2021, as shown on Slide 17. As a result of improving economic conditions, stronger
outgrowth and the acquisition of Xirgo, we expect to generate revenues between $960 million and $990 million for the second quarter of 2021,
representing a reported revenue increase between 67% and 72% compared to the second quarter of 2020.

At the midpoint of guidance, we expect that foreign currency will increase revenues year-over-year by approximately $23 million. Excluding the
impact of foreign currency, we expect an organic revenue increase of 58% to 63% in the second quarter. Our current fill rate is approximately 96%
of the revenue guidance midpoint for the second quarter. Our fill rate appears stronger as compared to previous quarters as some customers have
extended their order lead times in order to better ensure supply.

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We expect to report adjusted operating income between $195 million and $205 million. At the midpoint, operating income margin is expected to
be 20.5%, which includes a 150 basis point increase in our operating costs from the global semiconductor chip shortage facing the entire auto
supply chain as well as other sectors.

On the bottom line, we expect to report adjusted net income between $134 million and $144 million and adjusted EPS between $0.84 and $0.90,
which includes a $0.01 increase from foreign currency at the guidance midpoint.

At the bottom of the slide, we have provided an operating income margin walk from the second quarter of 2020 to the second quarter 2021. This
includes expected benefits from volume and productivity as well as higher costs associated with the semiconductor shortage, increased incentive
compensation for our employees, increased megatrend investments and unfavorable foreign exchange. As a reminder, the second quarter of 2020
included onetime savings of approximately $22 million from furloughs and temporary salary pay cuts.

We are increasing financial guidance for the full year 2021, as shown on Slide 18. For the full year 2021, while a degree of market uncertainty remains
and, in particular, the impact of the industry-wide semiconductor shortage, we are anticipating a continuation of improved and stable economic
and business conditions. We are also anticipating a return of normal seasonality, which includes sequentially lower revenue in the third quarter as
compared to the second quarter and slightly higher fourth quarter revenue as compared to the third quarter.

In addition, our financial guide now includes the financial contribution of Xirgo. Accordingly, we now expect to generate revenues between $3.675
billion to $3.825 billion for the full year 2021, representing a reported revenue increase between 21% and 26% year-on-year. At the midpoint of
guidance, we expect that foreign currency will increase revenues year-over-year by approximately $58 million. Excluding the impact of foreign
currency, we expect an organic revenue increase of 16% to 21% in 2021.

We expect to report adjusted operating income between $755 million and $805 million, which includes the expected impact of a global semiconductor
chip shortage, now anticipated to continue throughout the year. At the midpoint, operating income margin is expected to be 20.8%. On the bottom
line, we expect to report adjusted net income between $509 million to $557 million. We expect to report adjusted EPS between $3.20 and $3.50,
which includes a $0.03 increase from foreign currency at the midpoint of guidance.

At the bottom of the slide, we provide an operating income margin walk from 2020 to 2021 to show the moving pieces impacting margins. From
improving revenue and associated productivity have the greatest impact on our operating income margins. Costs related to the semiconductor
shortage, COVID-related costs, incentive compensation for our employees, the megatrend investments also have a meaningful impact on our
operating income margin.

On Slide 19, we provide our revised estimates for OEM production growth for 2021 as compared to our initial guide in early February. Automotive
production is expected to rebound sharply this year from last year, but at a pace slightly lower than expected in February, given further production
slowdowns caused by the global semiconductor shortage.

Global automotive production is now expected to grow 12%. However, our heavy vehicle off-road and industrial end markets are now expected
to grow faster in 2021 than we had communicated in February. These market assumptions underpin our current outlook for higher revenue and
earnings this year.

In sum, Sensata delivered an excellent first quarter despite broad supply chain disruptions. We expect this strong performance to continue through
2021, as demonstrated by the financial guidance we're providing today. Driving its performance is our continued ability to achieve our growth
targets, including the secular long-term market outgrowth targets of 400 to 600 basis points for our automotive business and 600 to 800 basis
points for heavy vehicle off-road business.

Now let me turn the call back to Jeff for closing comments.

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Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Thank you, Paul. And let me wrap up with a few key messages, which are outlined on Slide 20.

Sensata has responded very well to the rapid improvements in many of our markets, demonstrating the strength, flexibility and reliability of our
business and organizational model, which enabled us to capitalize on the recovery in end market demand. Our ability to respond quickly to shifting
demand positions us well as a trusted resource for our customers.

We are delivering attractive end market outgrowth. We remain confident in our ability to sustain this attractive end market outgrowth into the
future based upon our strong levels of new business wins. We continue to invest in megatrends and other growth initiatives that are opening large
and rapidly growing opportunities for Sensata across all our end markets. We are making excellent progress in electrification, as evidenced by our
new business wins as well as the acquisition of Lithium Balance and our joint venture with Churod Electronics, which extends our electrification
offerings.

In Smart & Connected, we are very pleased to have completed the acquisition of Xirgo Technologies, and to welcome that team and that customer
base to Sensata.

We continue to believe that the overall market environment may provide interesting opportunities to further strengthen our portfolio through
strategically important value-creating acquisitions and/or joint ventures. In addition, we are pursuing new technology collaborations and partnerships
with third parties to expand our capabilities and accelerate our megatrend growth. We expect to continue to deliver industry-leading margins for
our shareholders, while also investing in our growth and our people.

And finally, I'm excited about Sensata's long-standing mission to help create a cleaner, safer and more connected world, not just for our customers'
products but also through our own operations. We believe we are having a meaningful contribution to a better world. We are incorporating ESG
considerations into our strategy to help ensure the long-term sustainability and success of the company for all stakeholders. We look forward to
report more on this topic in the future.

Now I'd like to turn the call back to Jacob.

Jacob A. Sayer - Sensata Technologies Holding plc - VP of Finance & CFO of Performance Sensing Gbu
Thank you, Jeff. Given the large number of listeners on the call, let's try to limit ourselves to 1 question each, please. Andrew, please assemble the
Q&A roster.

QUESTIONS AND ANSWERS
Operator
(Operator Instructions) The first question comes from Craig Hettenbach of Morgan Stanley.

Craig Matthew Hettenbach - Morgan Stanley, Research Division - VP
Jeff, can you just talk about the design activity, how it's trending in EVs compared to last year? And then also on the charging front, I don't think
that gets as much attention, but you mentioned a couple of wins in activity there. If you can just expand on that.

                                                                                                                                                                             8

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Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. I'd be glad to. So all of our customers are investing heavily in the electrification trends that are occurring. And the governments around the
world, as they put together plans for investment in these areas, it just builds on the momentum that we're seeing. So there are a lot of conversations
going on with customers across all of our end markets on this front. It's a really exciting time as we build our capabilities, and we have more to talk
with our customers about. And so we see that trend continuing to accelerate. It is important to note, Craig, as we talked about it in our comments
that there are roadmaps, product roadmaps associated with core products that our customers already have that will continue to provide opportunity
for us that we're investing in.

And what I'm referring to is internal combustion engines as well. But we're really trying to do the best we can to balance the investments in the
things we're serving for our customers that are already on the books that will propel growth with the things that will generate growth in the future,
and we think we're doing a good job balancing that.

Operator
The next question comes from Samik Chatterjee of JPMorgan.

Unidentified Analyst
This is Vignesh on for Samik Chatterjee. As per the update -- can you hear me?

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
We can, yes.

Unidentified Analyst
Yes. So if you could give me some color on the Churod Electronics joint venture. Would this be an incremental market you would be looking to
address to Churod? Or is this a step towards solidifying market share for GIGAVAC?

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. So let me touch on the Churod joint venture. First, it's bringing to us a new aspect of high-voltage contactors, which have a high levitation
feature that many of our customers are requesting as part of their RFQs as we work with them. So it's a key product capability that they bring. And
as I've mentioned, it adds this mid-voltage amperage at 150 to 400, which is something we've talked about is not having addressed with the
acquisition of GIGAVAC. We were focused on the higher voltage applications, which we continue to believe will be the future for electric vehicles,
but there's going to be a point in time here where the transition from internal combustion engines to electrified vehicles, there'll be a big market
associated with this mid-voltage range.

And this allows us to go after a broader segment of the market. The JV will focus on China, and we have the right to use this technology outside
of China in North America and Europe. And as we mentioned, we will consolidate the results of this in our financials, and then we'll show a minority
interest in the financial statements to transfer the portion of the profits associated with this. It's going to start building over time. We're already
engaging with customers on selling this product portfolio, but it will build over time, and we're excited about the future in terms of what this JV
can bring to us as a combined company for both us and for Churod.

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Operator
The next question comes from Wamsi Mohan with Bank of America.

Wamsi Mohan - BofA Securities, Research Division - Director
Congrats on the strong execution. I was wondering if you could comment on the semi shortages. You clearly are baking in some cost headwind
here that you're seeing from that. Are you baking in any revenue headwinds as well? And related to that, when I look at your guidance, you obviously
have very strong performance, both in 1Q and guiding very strongly for 2Q. When I think about the full year, the organic revenue beat seems to
be about -- upside seems to be about $80 million for the second half, but earnings seem to be somewhat down on an organic basis for the second
half, the incremental earnings associated with that. So I was just wondering if you could help us think through what are the incremental costs that
you're baking in, in the second half of the year.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. Great, Wamsi. So why don't I address the semi shortage and then Paul can address the guidance and profitability related questions. So on the
semi side, obviously, our videos, at this point, it is an industry challenge, not a Sensata specific one. I would say that I think there were many that
were hoping that this would dissipate a little bit in terms of concern, mid part of this year. I think my view would be that this is going to be something
that's going to be around until at least mid next year rather than going away.

We've taken many steps as we've talked about in terms of extending our orders with our suppliers to make sure that we have surety of supply. And
one other thing I would mention is that there's a bigger impact associated with standard ASICs. And given the -- it's -- we're not immune to this,
right? We're impacted by the shortage. But because of a large portion of our products are specific designs, we have customized ASICs. And so when
there's customized ASICs, there's very specific manufacturing capacity that's set up for this. And so I think that because of that high level of design
and customization, we may be feeling a little bit less of this than some maybe associated with the those that pull on more standard ASICs. It's part
of the business model, it's not something we plan to do, but it's a fortunate benefit associated with the very design and nature of our product
categories. Paul, do want to hit on that?

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
Yes. Wamsi, just trying to keep a sense what we laid out what the impact of the chip shortage would be for the year. It was about 1%. And it's mostly
around logistics costs, expediting. It's a supply chain, it's compressed. So we expedite inbound and outbound to serve our customers. If you look
at the margin profile for the year, it's first half and second half are pretty flat. And if you look at year-over-year, when you start to unpeel the item
there and you look at the conversion of profit and incremental revenue year-on-year and you adjust for the acquisitions, currency and the chip
shortage, we're running in the incremental margins in the mid-40s. So I think it's very strong performance. I think it's good productivity, good
operating leverage, good cost management in the midst of a very disruptive semiconductor supply chain shortfall.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Thank you, Wamsi. Good questions.

Operator
The next question comes from Mark Delaney with Goldman Sachs.

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

Mark Trevor Delaney - Goldman Sachs Group, Inc., Research Division - Equity Analyst
Does the company have details you can provide on whether the higher outgrowth that Sensata reported in the auto segment is being sold through
rather than sitting in inventory? And I think investors are asking about the potential for inventory being built up of electronic components because
perhaps auto OEMs or stuck, we need for semi chips to arrive, but they're still buying products like sensors and contactors. Or maybe they just want
to be building a buffer of electronic products more broadly, given some of the uncertainties related to the global supply chain?

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Mark, great question. We're spending a fair amount of time understanding whether or not ultimately, the demand that we're seeing from our
customers is raw demand. I think that's the crust of your question. We're looking at third-party indications regarding overall demand. You look at
things like IHS estimates of vehicles, production and sold. We look at PMI indicators, which are at record high in Europe, 62; US at 59. China is still
in the positive territory. So there are a lot of indications associated with what would drive raw demand for our customers' products. And so those
are all quite strong.

We're seeing no indication that there's any meaningful supply chain, even replenishment or build-up other than maybe in the industrial segment,
we see a tiny bit. But an indication I would give you is if you look at North American automotive vehicle days, we're at 39 days at the end of the
first quarter. We were at 48 at the end of the year. This is extraordinarily low. And I think we're all seeing the impact of this as consumers in terms
of lead times to get products, not just vehicles, but other electronics and so forth.

We're watching this very closely because we obviously don't want to be whipsawed by this. We're having extensive conversations with our customers
to make sure that we understand raw demand as we prioritize where the manufacturing needs to be emphasized to make sure we serve our
customers. And we'll continue to report on that. But the short end -- short story is we're not seeing any meaningful build up in the supply chain at
this point.

Operator
The next question comes from Luke Junk with Baird.

Luke L. Junk - Robert W. Baird & Co. Incorporated, Research Division - Senior Research Analyst
Jeff, hoping you could talk about the Xirgo deal, especially in the initial feedback that you've gotten with fleet customers. I know it's still early, but
wondering about the thesis around channels to market playing out thus far as you start to engage with those customers.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. So we just closed on April 1. But obviously, we had some engagement with them, but we were very careful during that period where we were
waiting for regulatory clearance, but you know that we've worked with them for the past 1.5 years. So we know the management team, we know
-- we're working on some joint customers. It's been received very well. This is an acquisition that is very tightly aligned to our strategy. We've been
talking about our initiative associated with Smart & Connected for the last 18 months to 2 years. And this is squarely in that point. There's a lot of
complementary aspects of what this brings to us. It opens up a much bigger market in terms of not only the offering but the market segments that
we'll be able to go after.

And as we've talked about, it's a very attractive business in terms of the growth trajectory. And the data points that we see now that we have a
couple, 3 weeks in, and we're able to look more closely at how that -- the rest of the year is panning out. I mentioned that more than 80% of the
2021 revenue is already in orders from customers. So we're seeing very positive feedback. We're having a lot of engagement with customers, who
are their customers or our customers or joint customers. And excited about doing this teach-in in the next couple of months, so that we can have
that management team spend some more time with our investor base to explain in more detail what we're seeing.

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

Operator
The next question comes from Matt Sheerin with Stifel.

Matthew John Sheerin - Stifel, Nicolaus & Company, Incorporated, Research Division - MD
Jeff, I wanted to ask another question regarding the strength you're seeing in the heavy truck and HVOR market. You talked about some catalysts
and drivers in China. But could you talk about what you're seeing in other markets? And I know that '19 and into '20 was in a down cycle, and there
were just talk about an up cycle and investment cycle. Is that what you're seeing? Or is it just a rebound off of the bottom here?

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. I think it's a combination of all of the above, to be honest with you. So let me touch on Q1 first. And let me first touch on the market for heavy
vehicle. Across our segments within heavy vehicle, we saw first quarter to first quarter expansion, pretty meaningful expansion in all markets other
than European on-road, which was still down about 14% versus first quarter of last year. But broadly, 22% market recovery across the HVOR market.
And then coupled with what is just really, really strong outgrowth, over 1,000 basis points of outgrowth, given acceleration and continued investment
and rollout on a variety of programs that our customers have.

NS VI in China is obviously an impact, but Paul mentioned in the prepared comments also the continued migration from mechanical controls to
electronic controls. So all the investments that we've made over the past 3, 4, 5 years in trends that were occurring in HVOR are benefiting us in
addition to the market recovery that we're seeing, ultimately driving what is a 35%, 36% growth year-over-year. And obviously, Q2 was even greater,
110% growth with about 56% market growth.

As we go into Q2, the only market segment within HVOR that we see declining quarter-over-quarter is China, and it's down a tiny bit, maybe 1%
versus Q2 of last year. And similarly, on the full year, we see growth across -- market growth across all the segments with the exception of China,
which is not new. We had forecasted that ultimately that would be down a little bit for 2021 versus '20.

Operator
The next question comes from Jim Suva with Citi.

James Dickey Suva - Citigroup Inc. Exchange Research - Research Analyst
Great results and outlook. When you mentioned your fill rate, I believe it was like in the 90% is quite high. Does that impact pricing for your company
products and margins? What I mean by that is, do customers actually pay the same amount or pay a little bit more or a little bit less if they have
more visibility and secured supply in a time of uncertainty? And can you actually get above 100%, like by running an extra overtime shift? Or does
it just simply not work that way?

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
It's Paul. I'll take it, Jim. It does not affect pricing specifically. We're not charging to let people get in the front of the line. We're operating under our
purchase orders or contracts that we have with our customers. The fill is stronger, and we're seeing on the industrial side a faster fill rate. And the
learning there is that our customers are ordering sooner in the process to ensure that they get the security supply they're looking for. So the matter
really is ordering behavior more than pricing or any other economic behavior.

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

We serve all the demand that we can for our customers. So to the extent they order, we're going to serve it. And so it would -- it could get to 100%
if everything was ordered by the time we have this earnings release, but typically, that's not the case. And we're normally in the -- have been running
in the low 90s. So this is a little bit hotter, but it's been identified as to why based on our interactions with our customers.

Operator
The next question comes from Michael Filatov with Berenberg Capital.

Michael R. Filatov - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst
Just a quick one on Churod. I understand that your content per vehicle for EVs in China is obviously a lot lower than it is in North America and
Europe. And that's mainly due to the sort of lower voltage EVs you have in that market. So I'm wondering how does this Churod acquisition change
that content outlook for you guys in China and what that will look like going forward.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
Yes. You're hitting on one of the major thesis of why we did this joint venture. It's about expanding the product capabilities, and it's a capability
set that candidly is just in higher demand in China right now. And I would expect it would be for the next 10 or 15 years as that market continues
to evolve. And so -- and that's why the JV is focused on that end market, right? So I had mentioned that the JV itself is going to focus on the China
end market, but we were able to negotiate the ability to bring that capability into the other market that we serve. And clearly, we're having those
conversations as well. But it's just -- listen, when every auto maker out there has a different product strategy in terms of how they're going to go
about this and the more capability we can bring both in the form of products and engineering capability is going to make it a better environment
for us to be able to participate. This definitely has the potential to drive the content per vehicle in China in the very positive direction. So that's
where we are on that one. Thanks.

Operator
The next question comes from Joe Giordano with Cowen.

Robert G. Jamieson - Cowen and Company, LLC, Research Division - Associate
It's Rob on for Joe. Just 2 quick ones for me. First, given the strong 1Q and full year guidance, I just wanted to see given that production accidents
were a little bit handicapped. Just curious if there's anything incremental that we should be aware of that gives you a little bit more caution for the
rest of the year than you had coming into Q1.

And then just on backlog, how much backlog do you have from orders received in the last few quarters that you've been unable to ship? I believe
you all have been under shipping relative to production the last few quarters.

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
Well, this quarter, we actually don't see much inventory dislocation. It was pretty balanced. So when we look at our revenue and we try to unpack
it particularly in automotive, which I think is what you're speaking specifically to. We look at production, we look at our outgrowth, which is our
content growth, which we track by partner by launching to a new platform. And again, pricing headwinds. And so the math worked out quite well,
where we were serving the market, and we're also outgrowing the market based on our new business wins and the launch of those new business
wins in the quarter. So it was a pretty balanced quarter. In the past, we've seen some inventory impact that affected our revenue, but it was muted
in Q2.

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APRIL 27, 2021 / 12:00PM, ST.N - Q1 2021 Sensata Technologies Holding PLC Earnings Call

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
In terms of serving demand, we're serving -- I think the team has done an unbelievable job in the current conditions to serve the demand that's
out there. And our fill rate is the best indicator we can provide in terms of what the demand is and our ability to serve that demand as of a point
in time.

Operator
The next question comes from Amit Daryanani with Evercore ISI.

Amit Jawaharlaz Daryanani - Evercore ISI Institutional Equities, Research Division - Senior MD & Fundamental Research Analyst
I guess I want to go back to the calendar '21 EPS guide. And I guess if I think about it versus 90 days ago, you're taking up the guide by $0.11 or so,
but the Q1 beat alone was $0.14. And then I think FX and Xirgo, my math will add about $0.10 or $0.11 versus 90 days ago. So I guess, in my head,
I would have thought, Jeff, you would raise the EPS guide about $0.25, not $0.11. Maybe just touch on what are some of the offsets here that are
not enabling that expansion?

And then on the semiconductor shortages, and I've heard you talk a fair a bit about this. I feel like if I walk into an auto dealership, prices are going
up. So I'm curious what is your ability to pass price increases to your customers to offset some of these challenges over here.

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
So Amit, I mean, the biggest one is the chip shortage. I mean that's over $30 million. I mean Xirgo adds -- certainly adds somewhere in that $75
million of revenue, low 20% op income. I think currency is a little bit favorable, but -- and you called those out. But the biggest issue is the chip
shortage, right? So that's impacting our costs. We called it out. We had about $8 million to $10 million or so in the first quarter. We're going to have
another $30 million in the rest of the 9 months. And it's also impacting our ability to hit some of the productivity goals that we are looking for
because we're dealing with a very compressed supply chain, hand to mouth in many cases. And so we're not having able to get at some of the
things we wanted to work on, that we saw a clear line of sight to high savings. So those things will get deferred into 2022.

But again, I go back and look at the year-over-year. If you look at the incremental revenue, the incremental profit, it's very strong. If you adjust for
acquisitions and the chip shortage, and investment in megatrends and FX, we're in the, like I said, we're in the mid-40s conversion of revenue --
profit on revenue. But I think it's really strong performance. And we've tried to lay it out in the bunch of walks to give you as much information as
we possibly can to help you understand how the margin is progressing for '20 to '21.

Jeffrey J. Cote - Sensata Technologies Holding plc - President, CEO & Director
And I think that's the new information from the last time we provided the guide. I think the general view was that the chip shortage was going to
dissipate by mid this year. That's clear that it's not happening, given a lot of things, including high levels of demand that those companies are
seeing right now. And so now we're factoring in that longer-term impact associated with it.

Paul S. Vasington - Sensata Technologies Holding plc - Executive VP & CFO
It only had 20 to 50 basis points in the first quarter and so in the second quarter, and obviously, it's much higher than that in the percent and the
dollars.

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