Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — J.P. Morgan Auto Conference 2015
21 slides from Aptiv's conference presentation, Aug 12, 2015
Slide 1: J.P. Morgan Auto Conference
August 12, 2015 J.P. Morgan Auto Conference Kevin Clark President and Chief Executive Officer
Slide 2: Forward-looking statements
Forward-looking statements This presentation, as well as other statements made by Delphi Automotive PLC (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events, certain investments and acquisitions and financial performa
Slide 3: Strategic imperatives remain unchanged
Strategic imperatives remain unchanged • Enhance portfolio of market relevant products Disciplined • Continue rotation to high-growth products and regions revenue growth • Further diversify customer base and platform mix • Continue footprint rotation to best cost countries Margin • Further integrate
Slide 4: Safe, Green and Connected technologies driving growth
Safe, Green and Connected technologies driving growth Demand for Creating a Demand for increased active safety features cleaner planet connectivity Automated Regulations for Seamless smartphone driving increased fuel economy integration Providing solutions to our customers’ challenges 4
Slide 5: Actively managing our product portfolio
Actively managing our product portfolio 2014 revenue distribution 2017 revenue distribution Thermal 9% Electronics and Safety 20% Electronics and Safety 17% Electrical Architecture Electrical 47% Architecture 51% Powertrain Powertrain 29% 27% Investing in technologies that maximize profitable growth
Slide 6: Strengthening our technology portfolio
Strengthening our technology portfolio Acquisition Q3 2014: Antaya Strengthens and broadens leading position in connectors Q2 2012: MVL Strengthens and broadens leading position in connectors Q3 2014: Unwired Expands connectivity products portfolio Acquisitions that increase shareholder value 6
Slide 7: Strong performance post acquisition
Strong performance post acquisition Acquisition 2015 revenue 2015 EBITDA Explanation date growth margins EBITDA margins significantly over plan Q4 2012 ~6% +20% Synergies in excess of plan Bookings ahead of plan Q4 2014 ~40% +20% Revenue growth well over plan Synergies in excess of plan Bookings ahe
Slide 8: Strengthening our technology portfolio
Strengthening our technology portfolio Acquisition Divestiture Q2 2015: Reception Systems divestiture Q3 2014: Antaya Refocused E&S portfolio Strengthens and broadens leading position in connectors Q2 2012: MVL Strengthens and broadens leading position in connectors Q1 2015: Thermal divestiture Q3 2
Slide 9: Realigning product portfolio
Realigning product portfolio Portfolio actions Areas of acquisition focus • Divested Thermal business – 2010 – 2014 revenue growth1 of 1% – Transaction value of $727M (9.5x EBITDA) • Strengthen product portfolio Strategic • Diversify customer and regional mix • Divested Reception Systems product lin
Slide 10: Strengthening our technology portfolio
Strengthening our technology portfolio Acquisition Q3 2015: Investment HellermannTyton Q2 2015: Tula Enhances position in Divestiture Software for dynamic Q2 2015: electrical architecture cylinder deactivation Reception Systems divestiture Q3 2014: Antaya Refocused E&S portfolio Strengthens and broa
Slide 11: Government regulations becoming more stringent
Government regulations becoming more stringent Miles per gallon Grams of CO2 per kilometer 65 EU 270 60 64.8 250 55 230 China 50 50.1 U.S. 210 54.5 190 45 170 40 150 35 130 U.S. 30 110 107 25 90 EU China 95 116 20 70 2000 2005 2010 2015 2020 2025 2000 2005 2010 2015 2020 2025 Technology solutions wi
Slide 12: Tula minority investment
Tula minority investment Dynamic skip fire improves fuel economy Strategic benefits Next generation cylinder deactivation software Technology improves fuel efficiency and reduces emissions Helps achieve government regulations High value, low cost technology Broad applicability across engine sizes an
Slide 13: Vehicles are becoming more complex
Vehicles are becoming more complex Average number of computers in a vehicle Lines of code Delphi ships per day (millions) 45 250,000 40 200,000 35 150,000 30 100,000 25 50,000 20 15 - 2006 2018 2011 2015 2019 Increasing vehicle software creates content opportunity 13 Source: Roland Berger and Delphi
Slide 14: Quanergy minority investment
Quanergy minority investment Strategic benefits Developing smart sensing solutions Leader in 3D sensing Provides high precision data in real world conditions Developing affordable LiDAR sensors State-of-the art solid state chipset Enables advanced autonomous driving functionality Enhancing active sa
Slide 15: Ottomatika acquisition
Ottomatika acquisition Strategic benefits Partnership on coast-to-coast automated drive Industry-leading vehicle decision making software First mover in technology development Spin-out of Carnegie Mellon University Modular and scalable solutions Sensor fusion for current and next-gen hardware Streng
Slide 16: Increasing electrical architecture content
Increasing electrical architecture content Cable Management Systems Cable/Wiring Connectors Enables Digital Data Electrification content growth 2 2.5 miles 350 Up to 1.5 Up to 600 V 0 2 gigabit/sec 0 2 0 1 1.5 miles 280 65 megabit/sec 12 V 5 +67% +25% +2,200% +50x increase connectors Requires archit
Slide 17: HellermannTyton business overview
HellermannTyton business overview Financial profile 2014 segment revenue mix (€ millions) 2015 consensus sales €679 % growth ~14% Electrical/ Historical EBITDA margins ~20% Automotive Datacom 50% 50% Run-rate synergies $50+ million Employees ~4,000 Manufacturing facilities 12 Delphi purchases as a %
Slide 18: Strengthens our existing cable management portfolio
Strengthens our existing cable management portfolio Protection & fixings • Application tools to assist with cable management systems Network connectivity • Structured communication cabling systems Identification • Printing systems and software Installer solutions • Test instruments and tools Highly
Slide 19: HellermannTyton's products in action
HellermannTyton’s products in action Case study 1: • Worked with North American OEM to reduce vehicle weight and Off-highway vehicles increase fuel economy in North America • 86% weight reduction per piece by using HellermannTyton products Case study 2: • Worked with airplane OEM to redesign harness
Slide 20: Why Delphi will outperform
Why Delphi will outperform Well positioned in a transformed and growing industry Global scale Industry-leading cost structure Strong margin expansion and cash flow generation Balanced and disciplined capital allocation Industry-leading shareholder returns 20
Slide 21: sthe future. Now.
sthe future. Now. DELPHI Innovation for the Real World