Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q3 2016 Earnings Presentation
28 slides from Aptiv's earnings presentation, Nov 2, 2016
Slide 1: Third quarter 2016 earnings call
November 2, 2016 Third quarter 2016 earnings call
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: Agenda
Agenda Operations overview • Q3 2016 summary Kevin Clark Chief Executive Officer • Technology update Financial overview • Q3 2016 results Joe Massaro Chief Financial Officer • 2016 guidance Q&A Kevin Clark / Joe Massaro 3
Slide 4: Operations overview
Operations overview Kevin Clark President and Chief Executive Officer
Slide 5: Highlights
Highlights • Revenue increased 10% to $4.1B • Operating income expanded to $531M • EPS increased 17% to $1.50 • Portfolio modification and efficient capital deployment continues • New business bookings of ~$18B YTD • Further strengthened our competitive position Focused on execution Note: Revenue gr
Slide 6: IAA CV Hanover 2016: "Driven by ideas"
IAA CV Hanover 2016: “Driven by ideas” To be updated Delphi showcases next-generation commercial vehicle technologies 6
Slide 7: Paris Auto Show focus on electrification
Paris Auto Show focus on electrification “Electric cars are very important for the future – if “Plans to launch more than 30 electric you’d like to offer sustainable mobility solutions then vehicles over the next decade, forecasting you need electrified products.” – Automotive News they will account
Slide 8: Electrification increases Delphi content per vehicle
Electrification increases Delphi content per vehicle Powertrain Management Electrical System Battery Management • Supervisory controller • 48V fusing & distribution • Charging inlets and cables • Supervisory software • High power & voltage connectors • Internal battery connections • Inverter • High
Slide 9: Bookings growth
Bookings growth Continued bookings growth Cumulative bookings (2013 – 2016 YTD) ($ billions) Infotainment & User Active Safety Experience $26 $24 $24 $22 $20 $18 $18 ~$4B ~$8B 48V / EV / HEV GDi & Valve Train 2010 2011 2012 2013 2014 2015 2016 ~$3B ~$5B YTD Significant portion of bookings in high gr
Slide 10: Delphi enables industry technology trends
Delphi enables industry technology trends Advanced computing platforms Active Safety & Infotainment functionality Multi-Domain Controller (MDC) Integrated Cockpit Controller (ICC) Centralized sensor fusion and user experience control V2X Cluster Connectivity Gesture Controller Head Unit Controller C
Slide 11: Delphi and Mobileye CSLP level 4/5 platform
Delphi and Mobileye CSLP level 4/5 platform Mobileye’s best-in-class vision Delphi’s Ottomatika Automated Driving software, sensor suite, and computing platform (camera) systems and real-time mapping and vehicle location Delphi’s Sensor Suite • Radars: Radio waves sent • LiDAR: Light pulses sent • R
Slide 12: PACE award finalists
PACE award finalists 3D Gesture Recognition System 76GHz Short Range Radar for 360° Sensing 4 SSR Radars in 360 deg Configuration Superior radar performance 90 80 m enables more sophisticated 80 +/- 75 deg, 250 MHz BW features, including: 70 50 msec 60 1) Frontal cross-traffic alert 50 40 40 m 2) La
Slide 13: Financial overview
Financial overview Joe Massaro Chief Financial Officer and Senior Vice President
Slide 14: Q3 2016 vs. Q3 2015
Q3 2016 vs. Q3 2015 ($ millions, except per share amounts) Q3 2016 Q3 2015 B/(W) Reported revenue $460 $4,091 $3,631 Growth % 13%/10%1 EBITDA2 $704 $601 $103 EBITDA margin % 17.2% 16.6% 60 bps Operating income2 $531 $470 $61 Operating margin % 13.0% 12.9% 10 bps Earnings per share2 $0.22 $1.50 $1.28
Slide 15: Revenue growth
Revenue growth Q3 2016 vs. Q3 2015 Year-over-year growth by region ($ millions) Reported Adjusted1 $185 Q3 2016 Q3 2016 $436 $4,091 ($71) ($90) $3,631 Europe 11% 7% N. America 10% 9% Asia 20% 19% S. America 5% (13%) Total 13% 10% Q3 2015 Sales Acquisitions/ Price FX/ Q3 2016 growth divestitures comm
Slide 16: Operating income growth
Operating income growth Q3 2016 vs. Q3 2015 ($ millions) $22 $8 $117 ($15) $531 $470 ($71) 13.0% 12.9% Q3 2015 Sales Acquisitions/ Net FX/ Price Q3 2016 growth divestitures performance commodities Margin expansion while investing for growth 16 16 Note: Operating income adjusted for restructuring and
Slide 17: Segment financials
Segment financials Revenue1,2 Operating income1,3 ($ millions) ($ millions) Q12015 Q3 2015 Q3 2016 growth$2,078 $2,175 Q1 2015 Q3 2015 Q3 2016 Reported Q12016 18% 1% 14% Q1 2016 Q3 2016 $1,135 Adjusted2 11% 4% 17%$1,081 $1,135 $640 $720 $640 $720 $316 $2,147 Note: Power $1,941 Electronics $263 reali
Slide 18: Earnings per share
Earnings per share Q3 2016 vs. Q3 2015 $0.27 $0.06 $1.50 ($0.05) ($0.06) $1.28 Q3 20151 Operating2 Share FX/ Taxes/ Q3 20161 income repurchases commodities other Another quarter of double digit EPS growth 1 Adjusted for restructuring and other special items; see Appendix for detail and reconciliatio
Slide 19: Refinancing enables flexibility
Refinancing enables flexibility Weighted average maturity Free cash flow1 Capital deployment (years) ($ millions) ($ billions) ~3 year 9.4 increase 6.6 ~$8 ~$4 100% 100% $644 $490 Before refinancing After refinancing Interest expense ($ millions) ~$40 ~$20M annual savings ~$20 2015 YTD 2016 YTD 2014
Slide 20: 2016 guidance
2016 guidance ($ millions, except per share amounts) Q4 2016 CY 2016 Reported sales $4,050 - $4,150 $16,400 - $16,500 Adjusted growth1 ~4% 6% - 7% Operating income2 $545 - $575 $2,160 - $2,190 Operating margin ~13.7% 13.2% - 13.3% EPS2 $1.55 - $1.65 $6.00 - $6.10 Growth ~15% ~16% Tax rate2 15% - 16%
Slide 21: Wrap up
Wrap up • Delivered strong Q3 performance – Double-digit sales growth driven by new launches and higher content – Lean cost structure enables growth investment • Confident in 2016 outlook – Technology and innovation yield accelerated sales growth – Delivering incremental value through accretive capi
Slide 22: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 23: Appendix
Appendix DELPHI
Slide 24: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2016 Q3 2015 Net income attributable to Delphi $293 $404 Interest expense $41 $30 Other expense (income), net $66 $11 Income tax expense $57 $61 Equity income, net of tax ($10) ($5) Income from discontinued operations, net of tax - ($54) Net income attri
Slide 25: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2016 Q3 2015 Net income attributable to Delphi $293 $404 Interest expense $41 $30 Other (income) expense, net $66 $11 Income tax expense $57 $61 Equity income, net of tax ($10) ($5) (Income) loss from discontinued operations, net of tax - ($54) Net incom
Slide 26: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2016 Q3 2015 Net income attributable to Delphi $293 $404 Income from discontinued operations attributable to Delphi, net of tax - ($53) Income from continuing operations attributable to Delphi $293 $351 Adjusting items: Restructuring $63 $36 Other acquis
Slide 27: Non-US GAAP financial metrics
Non-US GAAP financial metrics (millions) Q3 2016 Q3 2015 Net cash provided by operating activities from continuing operations $1,258 $1,029 Capital expenditures ($614) ($539) Free cash flow $644 $490 27
Slide 28: Shares outstanding
Shares outstanding (millions) Q3 2016 Q3 2015 Weighted average ordinary shares outstanding, basic 272.19 282.97 Dilutive shares related to RSUs 0.58 1.43 Weighted average ordinary shares outstanding, including dilutive shares 272.77 284.40 28