Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q3 2012 Earnings Presentation
32 slides from Aptiv's earnings presentation, Nov 1, 2012
Slide 1: Third Quarter 2012 Earnings Call
Third Quarter 2012 Earnings Call November 1st, 2012 Exhibit 99.2
Slide 2: 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 are subject to many risks, u
Slide 3: Agenda
Agenda 3 Business Overview Q3 2012 in Review Financial Results Q3 2012 Results Updated 2012 Guidance Wrap-Up Q&A Session Rodney O’Neal Chief Executive Officer Kevin Clark Chief Financial Officer Rodney O’Neal Chief Executive Officer
Slide 4: Business Overview
Rodney O’Neal Business Overview
Slide 5: Overview
Overview 5 Strong Financial Results in an Increasingly Challenging Environment – Revenue Growth Flat – EBITDA Margin Increased to 13.7%1 – EPS Increased by 12.7%1 Positioned for Continued Organic Revenue Growth and Margin Expansion in 2013 – Implementing Restructuring Initiatives – Continued Foc
Slide 6: Investment in China Market
Chongqing, China Delphi Opens New Electrical Architecture Facility Yantai, China Groundbreaking for Delphi Powertrain Facility Investment in China Market 6
Slide 7: Investment in New Technologies
Investment in New Technologies Connected Vehicle Safety Pilot Program 7
Slide 8: Investment in Product Portfolio – MVL Acquisition
Investment in Product Portfolio – MVL Acquisition 8 Broadens Leading Position in the High Growth and High Margin Global Automotive Connectors Market Enhances Position with High Growth Customers Expands Footprint and Capabilities in Fast Growing Asia Market Significant Operating and Revenue S
Slide 9: Automotive News PACE Award Finalists
Automotive News PACE Award Finalists 9 F2e Distributed Pump Common Rail System MyFi® Connected Navigation Radio HEV/EV Vehicle Proximity Alert Gen 4 Manifold Air Pressure Sensor – Manufacturing Process Delphi Had More 2013 PACE Award Finalists Than Any Other Company
Slide 10: Customer Awards
Customer Awards Dongfeng Nissan Regional Quality Award Ford Q1 Quality Certification Fiat Lean Academy Program Honors Porsche A-Rating Supplier Award Jaguar Land Rover Quality Award 10
Slide 11: New Business Bookings Growth
Europe 29% North America 32% Asia 34% South America 5% YTD 2012 $20.5B 2012 YTD New Business Bookings by Region CY 2010 $19.9B New Business Bookings Growth 11 Note: Bookings = lifetime gross program revenues awarded, based upon expected volumes and pricing CY 2011 $23.5B $0 $5 $10 $15 $20 $25 Jan Fe
Slide 12: Continue to Focus on Operating Execution
Continue to Focus on Operating Execution 12 Enterprise Operating System – Disciplined, Structured Process – Driving Margin Expansion Implementing Restructuring Programs to Optimize Cost Structure – Manufacturing Footprint Rotation – Engineering Rotation – Administrative Reductions – MVL Integrat
Slide 13: Financial Results
Kevin Clark Financial Results
Slide 14: Q3 2012 vs. Q3 2011 Solid Results in a Challenging Environment
Q3 2012 Q3 2011 B/(W) Revenue $3,663 $3,931 ($268) Growth % (0.3%)1 EBITDA2 $480 $516 ($36) EBITDA % 13.1% 13.1% - Net Income2 $269 $266 $3 Growth% 1.1% Earnings per Share2 $0.84 $0.79 $0.05 Growth % 6.3% Cash Flow Before Financing $254 $274 ($20) Q3 2012 vs. Q3 2011 14 Solid Results in a Challengin
Slide 15: Solid Revenue Despite Macro Headwinds
Revenue $3,931 ($212) ($72) ($39) ($7) $62 $3,663 2,000.00 3,000.00 4,000.00 Q3 '11 Foreign Exchange Price Commodity Acquisitions/ Divestitures Sales Growth Q3 '12 Q3 ‘12 vs. Q3 ‘11 ($ millions) 15 (1.8%) Solid Revenue Despite Macro Headwinds Year-over-Year Growth by Region Reported Adjusted1 Q3 201
Slide 16: Strong EBITDA Margins in a Low Growth Environment
Strong EBITDA Margins in a Low Growth Environment EBITDA 16 Q3 ‘12 vs. Q3 ‘11 ($ millions) $516 ($72) ($45) ($21) $17 $85 $480 - 100.00 200.00 300.00 400.00 500.00 600.00 Q3 '11 Price Foreign Exchange Variable Accounting LTI Sales Growth Performance/ Other Q3 '12 13.1% EBITDA Margin 13.1% (1.8%)
Slide 17: Segment Financials
Adjusted Revenue1 $233 $167 $81 $35 $219 $175 $82 $25 E/EA Powertrain E&S Thermal Q3 2011 Q3 2012 $1,658 $1,183 $719 $431 $1,7191 $1,1581 $6851 $4151 E/EA Powertrain E&S Thermal Segment Financials Adjusted EBITDA2 Q3 ‘12 vs. Q3 ‘11 ($ millions) 1 Revenue growth rates adjusted for acquisitions and di
Slide 18: Continued Earnings Per Share Growth
$0.79 ($0.18) $(0.11) ($0.05) $0.04 $0.04 $0.10 $0.21 $0.84 - 0.20 0.40 0.60 0.80 1.00 Foreign Exchange Share Repurchase Taxes/ Interest Q3 '12 Earnings Per Share Q3 ‘12 vs. Q3 ‘11 18 Continued Earnings Per Share Growth Price Variable Accounting LTI Sales Growth Performance/ Other Q3 '11 Note: Chang
Slide 19: Continued Strong Cash Flow Conversion
$534 $642 YTD '11 YTD '12 EBITDA $1,639 Working Capital ($178) Capital Expenditures ($563) Net Cash Interest ($60) Cash Taxes ($228) Restructuring, net of cash paid ($45) Other $77 Cash Flow Before Financing $642 2012 YTD Cash Flow 19 ($ millions) Cash Flow Before Financing ($ millions) +20% Continu
Slide 20: Balance Sheet
12/31/11 9/30/12 Cash1 $1,372 $1,645 Debt $2,103 $2,090 Net Debt $731 $445 Debt to LTM EBITDA 1.0x 1.0x Net Debt to LTM EBITDA 0.3x 0.2x Total Liquidity2 $2,665 $2,938 30% 38% LTM '11 LTM '12 Balance Sheet 20 ($ millions) Return on Net Assets3 1 Includes restricted cash of $9M and $11M for 12/31/11
Slide 21: Restructuring Initiatives
North America 20% South America 5% Europe 75% Regional Spend Total: $250 Million Restructuring Initiatives Targeted Initiatives to Further Optimize Cost Structure and Expand Margins – Rotate Manufacturing Footprint – Rotate Engineering Activities – Reduce Administrative Costs – Fully Integrate MVL
Slide 22: Production Volume and Macro Assumptions
in 000's Q4 July IHS Q4 Oct. IHS Variance 2011 Actual IHS 2012 Oct. IHS Variance GMNA 764 746 -2% 3,084 3,181 3% Japanese N.A. 1,045 1,066 2% 3,727 4,794 29% Euro 1.28 Copper $3.65/lb Other NA 1,854 1,870 1% 6,710 7,576 13% Mexico 13.23 Aluminum $0.93/lb North America 3,662 3,683 1% 13,522 15,552 15
Slide 23: Q4 2012 Guidance
Q4 2012 Q4 2012 Q4 2012 MVL3 Incl. MVL Revenue $3,600-$3,700 ~$125 $3,725-$3,825 EBITDA1 $440-$480 ~$22 $460-$500 EBITDA % 12.2%-13.0% ~18.0% 12.3%-13.1% EPS1 $0.79-$0.892 $0.012 $0.80-$0.902 CFBF $130 Capital Exp. ~$175 Restructuring Exp. ~($155) ~($20) ~($175) Q4 2012 Guidance ($ millions, except
Slide 24: CY 2012 Guidance
Prior 2012 Current 2012 2012 Current 2012 Outlook Outlook MVL4 Incl. MVL Revenue $15,600-$15,900 $15,350-$15,450 ~$125 $15,475-$15,575 EBITDA1 $2,175-$2,250 $2,080-$2,120 ~$22 $2,100-$2,140 EBITDA % 13.9%-14.1% 13.6%-13.7% ~18.0% 13.6%-13.7% EPS1 $3.68-$3.912 $3.67-$3.773 $0.013 $3.68-$3.783 CFBF $1
Slide 25: Wrap-Up
DELPHI Innovation for the Real World Rodney O’Neal Wrap-Up
Slide 26: Summary
Summary 26 Strong 2012 Performance in an Increasingly Challenging Environment – Solid Operating Performance Driving Margin Expansion Continue to Focus on Operating Execution – Maintaining Discipline While Investing in Future Growth – Implementing Additional Restructuring Program to Further Optim
Slide 27: Appendix
CONNECTED — —_ : DELPHI 3% > Innovation for the Real World Appendix
Slide 28: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics 28 ($ Millions) Q3 2012 Q3 2011 YTD 2012 YTD 2011 Cash flow from operating activities: Net income $292 $285 $1,005 $911 Depreciation/Amortization $113 $123 $340 $356 Working Capital ($14) $28 ($178) ($305) Other operating activities $23 ($26)3 $1 ($53) Net cash provided
Slide 29: Non-US GAAP Financial Metrics
29 Non-US GAAP Financial Metrics Q3 2012 Q3 2011 Net Income attributable to Delphi $269 $266 Income Tax $52 $87 Interest Expense $32 $37 Other (Income)/Expense, net ($3) ($14) Non-controlling Interest $23 $19 Equity (Income)/Loss, net of tax ($6) ($2) Depreciation & Amortization $113 $123 EBITDA $48
Slide 30: Non-US GAAP Financial Metrics
Q4 2012 Guidance CY 2012 Guidance GAAP Earnings Per Share $0.30-$0.40 $3.18-$3.28 Earnings Per Share Impact of Restructuring $0.50 $0.50 Adjusted Earnings Per Share $0.80-$0.90 $3.68-$3.78 30 Non-US GAAP Financial Metrics
Slide 31: Shares Outstanding
Quarter-ended Quarter-ended 9/30/12 9/30/11 Weighted average ordinary shares outstanding as result of the initial public offering: 328.24 328.24 Repurchase of Class B membership interests (Weighted average) - 8.59 Executed share repurchases (Weighted average) (7.31) - Shares related to RSU grant ves
Slide 32: Delphi – Innovation for the Real World
DeELPFI Innovation for the Real World