Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Deutsche Bank Global Auto Industry Conference 2015
20 slides from Aptiv's conference presentation, Jan 13, 2015
Slide 1: Deutsche Bank Global Auto Industry Conference
Deutsche Bank Global Auto Industry Conference January 13, 2015
Slide 2: Rodney O’Neal, Chief Executive Officer and President
Rodney O’Neal Chief Executive Officer and President
Slide 3: 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 and financial performance. Such forward-looking statements
Slide 4: Competitive advantages
Competitive advantages Advanced Solutions for our customers’ challenges technologies Global footprint Global scale with regional capabilities Industry-leading cost structure Operating model with significant leverage Flawless operating execution Outstanding customer satisfaction Diversified business
Slide 5: Kevin Clark, Chief Operating Officer
Kevin Clark Chief Operating Officer
Slide 6: 2014 highlights
2014 highlights • Disciplined top-line expansion • Rotated Western European footprint • Reduced South American cost structure • Accelerated the introduction of new technologies • Expanded margins and increased earnings and cash flow • Returned significant cash to shareholders Increased shareholder v
Slide 7: 2015 environment
2015 environment • Underlying trends in vehicle production remain positive • Continued strong demand for reduced CO2 emissions • Increased demand for Active Safety solutions • Continued increase in vehicle electrification • FX rates resulting in headwinds Overall market dynamics are positive 7
Slide 8: 2015 priorities remain unchanged
2015 priorities remain unchanged • Accelerate introduction of market relevant technologies Disciplined • Continue rotation to high growth regions revenue growth • Further diversify customer base and platform mix • Continue footprint rotation to best cost countries Expand • Integrate our enterprise o
Slide 9: 2015 priorities: Disciplined revenue growth
2015 priorities Disciplined revenue growth Showcased our advanced technology solutions at 2015 CES 9
Slide 10: 2015 priorities: Expand margins
2015 priorities Expand margins EBIT margin expansion1 Margin expansion drivers • Acceleration of disciplined revenue growth 12.4% • Acquisition integration 11.8% 11.2% • Launch of innovative products 10.8% • Continued footprint rotation 10.4% • Enterprise-wide EOS • Flawless execution 2011 2012 2013
Slide 11: 2015 priorities: Increased returns
2015 priorities Increased returns • Maintain investment grade ratings • Disciplined re-investment in business to drive growth • Pursue value enhancing acquisitions • Continue to return cash to shareholders – Board authorized a new $1.5 billion share repurchase program Driving additional shareholder
Slide 12: 2015 priorities: Increased returns
2015 priorities Increased returns Share repurchases and dividends Total shareholder returns* ($ millions) IPO – Q4 2014 ~$1,300 ~$2.6 billion returned to 251% shareholders since 2011 ~$700 ~$400 81% ~$200 2011 2012 2013 2014 S&P 500 DLPH Share repuchases Dividends Cash deployment contributing to str
Slide 13: Mark Murphy, Chief Financial Officer and Executive Vice President
Mark Murphy Chief Financial Officer and Executive Vice President
Slide 14: Update on 2014
Update on 2014 • Global vehicle production increased 2% • Revenue impacted by currency and select market weakness • Strong margin expansion on solid operating performance • Delivered double digit EPS growth • Continued return of cash to shareholders Another year of record performance 14
Slide 15: 2015 guidance assumptions
2015 guidance assumptions • Global market growth ~2% – North America ~3% – Europe ~2% – China ~7% – South America Flat • Euro 1.20 Continued industry volume growth Source: December 2014 IHS Automotive and Delphi internal estimates 15 Note: Includes medium/heavy duty trucks
Slide 16: 2015 guidance impacted by currency
2015 guidance impacted by currency (millions, except per share amounts) @ 2014 @ 2015 FX rates1 FX rates Reported revenue $17,900 - $18,300 $17,100 - $17,500 Reported growth % 5% - 7% 1% - 3% Operating income2 $2,200 - $2,300 $2,100 - $2,200 Operating margin 12.3% - 12.6% 12.3% - 12.6% EPS2 $5.55 -
Slide 17: Why invest in Delphi
Why invest in Delphi Well positioned with advanced technology solutions Significant global scale Industry-leading cost structure Track record of flawless operating execution Balanced and disciplined capital allocation Delivering industry-leading shareholder returns 17
Slide 18: Delphi: Innovation for the Real World
DeELPFHiI Innovation for the Real World
Slide 19: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) 2013 Net income attributable to Delphi $1,212 Income tax expense $256 Interest expense $143 Other expense, net $18 Noncontrolling interest $89 Equity income, net of tax ($34) Restructuring $145 Asset impairments - Acquisition-related integration costs $15 A
Slide 20: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions, except per share amounts) 2013 Net income attributable to Delphi $1,212 Adjusting items Restructuring charges $145 Acquisition-related integration costs $15 Acquisition-related advisory and transaction costs - Asset impairments - Debt extinguishment costs $
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