Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q1 2015 Earnings Presentation
25 slides from Aptiv's earnings presentation, Apr 30, 2015
Slide 1: First quarter 2015 earnings call
April 30, 2015 First quarter 2015 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 and financial performance. Such forward-looking statements a
Slide 3: Agenda
Agenda Operations overview Kevin Clark Chief Executive Officer • Q1 2015 in review • Bookings growth • Summary Financial overview Mark Murphy Chief Financial Officer • Q1 2015 results • Update on 2015 guidance Q&A Kevin Clark/ Mark Murphy 3
Slide 4: Operations overview
Operations overview Kevin Clark President and Chief Executive Officer
Slide 5: Macro trends
Macro trends • Vehicle production – North America – Europe – China – South America • Other macro trends – Commodity prices and other currency effects – Exchange rates (Euro, GBP, BRL) Macro environment improving 5
Slide 6: Overview
Overview • Delivered on our Q1 commitments – Revenue growth of 6%, 4 pts above market – Record operating income of $472 million – Operating margin expansion of 50 bps – Returned $313 million of cash to shareholders • Confident in 2015 outlook – Revenue growth of 8%, 6 pts above market – Operating ma
Slide 7: Platforms driving revenue growth
Platforms driving revenue growth Cadillac Escalade Ford Edge VW Golf Audi Q7 Volvo XC90 Jeep Renegade Fiat 500X Land Rover Discovery Sport Leading to 4 pts above market growth in Q1 2015 7
Slide 8: Coast-to-coast automated drive
Coast-to-coast automated drive Automated drive highlights What we learned • Further develop cameras to detect ~3,400 miles traveled diverse lane markings ~99% of trip fully automated • Improve camera performance in bright sunlight and harsh weather conditions 9 days, 15 states • Driving behavior opt
Slide 9: Auto Shanghai 2015
Auto Shanghai 2015 Fostering customer relationships in fastest growing region 9
Slide 10: Bookings growth
Bookings growth Continued bookings growth Q1 2015 bookings by region ($ billions) Asia $24 $24 27% $22 $20 $18 Americas 58% $10 Europe 15% 2010 2011 2012 2013 2014 Q1 2015 Strong start to year with record bookings quarter 10 Note: Bookings exclude Thermal
Slide 11: Capital allocation strategy
Capital allocation strategy Strategy remains unchanged Thermal divestiture • Maintain investment grade ratings • Thermal divestiture expected to close in Q3 2015 • Disciplined re-investment in business to • Segment reported in discontinued drive growth and increase returns operations • Pursue strate
Slide 12: Summary
Summary • Another quarter of strong performance – Solid revenue growth – Continued margin expansion – Momentum ahead of second half inflection point • Expect continued outperformance in 2015 – Revenue growth ~6 pts above market – Operating margin expansion of 70 bps • Continue disciplined capital al
Slide 13: Financial overview
Financial overview Mark Murphy Chief Financial Officer and Executive Vice President
Slide 14: Q1 2015 vs. Q1 2014
Q1 2015 vs. Q1 2014 ($ millions, except per share amounts) Q1 2015 Q1 2014 B/(W) Reported revenue $3,797 $3,897 ($100) Growth % (2.6%) / 5.5%1 Operating income2 $472 $463 $9 Operating margin % 12.4% 11.9% 50 bps Net income3 $353 $357 ($4) Growth % (1.1%) Earnings per share3 $1.21 $1.16 $0.05 Growth
Slide 15: Revenue growth
Revenue growth Q1 2015 vs. Q1 2014 ($ millions) Year-over-year growth by region Reported Adjusted1 Q1 2015 Q1 2015 Europe (15.1%) 1.6% N. America 5.7% 6.5% Asia 12.9% 15.2% S. America (29.0%) (15.9%) Total (2.6%) 5.5% $3,897 $271 $3,797 ($314) ($57) Q1 2014 Foreign Price Sales Q1 2015 exchange/ (1.5
Slide 16: Operating income growth
Operating income growth Q1 2015 vs. Q1 2014 ($ millions) $463 $98 $472 $15 ($57) 12.4% 11.9% ($46) ($1) Q1 2014 Price Foreign D&A Net performance/ Sales Q1 2015 (1.5%) exchange/ other growth commodities Strong margin expansion 16Operating income adjusted for restructuring and other special items; se
Slide 17: Segment financials
Segment financials Q1 2015 vs. Q1 2014 ($ millions) Q1 2015 Growth Operating income margin2 Reported Adjusted1 Q1 2014 Q1 2015 E/EA (1.6%) 6.2% E/EA 12.7% 12.7% Powertrain (1.5%) 7.4% Powertrain 10.3% 11.9% E&S (7.5%) 0.3% E&S 11.0% 11.6% $2,111 $2,241 Revenue1 Operating income2 Q1 2014 $269 Q1 2014
Slide 18: Earnings per share
Earnings per share Q1 2015 vs. Q1 2014 $0.06 $1.21 $1.16 $0.03 ($0.04) Q1 20141 Taxes/other Operating1 Share Q1 20151 income repurchases Continued earnings per share growth 18 1 18 Adjusted for restructuring and other special items; see Appendix for detail and reconciliation to US GAAP
Slide 19: 2015 guidance assumptions
2015 guidance assumptions • Global market growth ~1% - 2% – North America ~3% – Europe ~1% – China ~7% – South America (~10%) • Euro 1.10 Continued industry volume growth Source: March 2015 IHS Automotive and Delphi internal estimates 19 Note: Includes medium/heavy duty trucks
Slide 20: 2015 guidance
2015 guidance (millions, except per share amounts) 2015 Outlook Q2 2015 Outlook Reported revenue $15,300 - $15,700 $3,825 - $3,925 Growth % (1%) - 1% / 7% - 9%1 (6%) - (3%) / 4% - 7%1 Operating income2 $1,980 - $2,080 $500 - $520 Operating margin 12.9% - 13.2% 13.1% - 13.2% EPS2 $5.35 - $5.50 $1.27
Slide 21: Appendix
Appendix DELPHI
Slide 22: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q1 2015 Q1 2014 Net income attributable to Delphi $209 $320 Interest expense $32 $35 Other (income) expense, net $54 $17 Income tax expense $61 $69 Equity income, net of tax ($5) ($7) Loss (income) from discontinued operations, net of tax $75 ($15) Net inco
Slide 23: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q1 2015 Q1 2014 Net income attributable to Delphi $209 $320 Loss (income) from discontinued operations attributable to Delphi, net of tax $79 ($10) Income from continuing operations attributable to Delphi $288 $310 Adjusting items: Restructuring $16 $21 Oth
Slide 24: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q1 2015 Q1 2014 Cash flows from operating activities: Income from continuing operations $304 $326 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $128 $134 Working capital ($240) ($310) Pension
Slide 25: Shares outstanding
Shares outstanding (millions) Three months ended March 31, 2015 2014 Weighted average ordinary shares outstanding, basic 290.90 305.85 Dilutive shares related to RSUs 0.91 1.04 Weighted average ordinary shares 291.81 306.89 outstanding, including dilutive shares 25