Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q3 2015 Earnings Presentation
29 slides from Aptiv's earnings presentation, Oct 29, 2015
Slide 1: Third quarter 2015 earnings call
October 29, 2015 Third 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, certain investments and acquisitions and financial performa
Slide 3: Agenda
Agenda Operations overview • Q3 2015 in review Kevin Clark Chief Executive Officer • Summary Financial overview • Q3 2015 results Mark Murphy Chief Financial Officer • 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 – Exchange rates (Euro, GBP, BRL and CNY) Challenging macro environment 5
Slide 6: Q3 highlights
Q3 highlights • Delivered record financial results – Revenue growth of 6%, 4 pts above market – Strong operating income of $470 million; operating margin expansion of 110 bps – Returned $477 million of cash to shareholders • Launched 207 new product programs in Q3, ~30% increase over last year • Add
Slide 7: Calendar year highlights
Calendar year highlights • Outlook for 2015 – Revenue growth of 6%, ~6 pts above market – Operating margin expansion to 13 percent – Cash flow before financing generation of ~$1.1 billion • Launching ~1,100 new product programs in 2015 • New business bookings to exceed 2014 levels • Realigning portf
Slide 8: Automotive News PACE award finalists
Automotive News PACE award finalists Delphi 59 Three technologies named finalists for 2016 Peers Delphi tops the list of all companies with 59 PACE finalists and awards Stable macro Winner environment of 17 PACE awards 8 Source: Automotive News
Slide 9: 2015 IAA Frankfurt motor show
2015 IAA Frankfurt motor show Showcasing innovative technologies 9
Slide 10: Moving at the speed of software
Moving at the speed of software Influence of Silicon Valley Delphi’s technology acceleration 2011 2015 2019 2005 Lines of code shipped daily 200M 20B 200B Software revenue <$50M $500M $1.3B+ Software engineers 2,000 4,000 8,000+ 2015 Key partnerships <5 20+ 50+ Product launches 50 75+ 100+ Creating
Slide 11: Active Safety portfolio
Active Safety portfolio • Active Safety organic revenue growth – Q3 organic revenue grew 60% year-over-year – Q3 bookings of over $300 million, bringing year-to-date bookings to over $700 million – On track to reach over $1 billion of new business bookings for the third straight year • Key customer
Slide 12: Bookings growth
Bookings growth Continued bookings growth Q3 2015 YTD bookings by region ($ billions) Asia 28% $24 $24 $22 $22 $20 $18 Europe 32% Americas 40% 2010 2011 2012 2013 2014 Q3 2015 YTD On track to exceed prior year 1 At constant foreign exchange rates 12 Note: Bookings = lifetime gross program revenues a
Slide 13: Value enhancing portfolio modifications
Value enhancing portfolio modifications Acquisition Q4 2015: Q3 2015: Control-Tec Investment HellermannTyton Software-as-a-service Q2 2015: Tula Enhances position in Divestiture for data management Software for dynamic electrical architecture Q2 2015: cylinder deactivation Reception Systems divestit
Slide 14: Delphi to acquire Control-Tec
Delphi to acquire Control-Tec • Offer summary – Purchase 100% of Control-Tec – Acquisition funded with cash – Expected to close Q4 2015 • Control-Tec overview – Provider of telematics-based data acquisition, management and analysis services with best-in-class software tools – Real-time cloud based d
Slide 15: Summary
Summary • Record third quarter financial results – Revenue growth in excess of market – Solid operating performance – Continued margin expansion • Positioned to deliver outperformance in 2015 – Revenue growth ~6 pts above market – Operating margin expansion of 60 bps – Free cash flow generation of $
Slide 16: Financial overview
Financial overview Mark Murphy Chief Financial Officer and Executive Vice President
Slide 17: Q3 2015 vs. Q3 2014
Q3 2015 vs. Q3 2014 ($ millions, except per share amounts) Q3 2015 Q3 2014 B/(W) Reported revenue $3,631 $3,762 ($131) Growth % (3.5%)/5.6%1 Operating income2 $470 $445 $25 Operating margin % 12.9% 11.8% 110 bps Net income3 $365 $340 $25 Earnings per share3 $1.28 $1.13 $0.15 Growth % 13.3%/19.5%1 Re
Slide 18: Revenue growth
Revenue growth Q3 2015 vs. Q3 2014 ($ millions) Year-over-year growth by region Reported Adjusted1 Q3 2015 Q3 2015 Europe (11.3%) 6.0% N. America 7.8% 8.9% Asia 0.4% 4.7% S. America (47.2%) (19.8%) Total (3.5%) 5.6% $3,762 $260 $3,631 ($317) ($74) Q3 2014 Foreign Price Sales Q3 2015 exchange/ (2.0%)
Slide 19: Operating income growth
Operating income growth Q3 2015 vs. Q3 2014 ($ millions) $92 $470 $445 $35 11.8% ($74) 12.9% ($24) ($4) Q3 2014 Price Foreign D&A Net performance/ Sales Q3 2015 (2.0%) exchange/ other growth commodities 110 bps of margin expansion 19 Note: Operating income adjusted for restructuring and other specia
Slide 20: Segment financials
Segment financials Q3 2015 vs. Q3 2014 ($ millions) Q3 2015 growth Operating income margin2 Reported Adjusted1 Q3 2014 Q3 2015 E/EA (2.6%) 5.9% E/EA 12.5% 13.5% Powertrain (5.4%) 3.9% Powertrain 10.2% 11.7% E&S (4.1%) 5.7% E&S 11.6% 12.3% $2,111 Revenue1 Operating income2 $1,993 Q3 2014 Q3 2014 $263
Slide 21: Earnings per share
Earnings per share Q3 2015 vs. Q3 2014 $0.14 $1.28 $1.13 $0.01 $0.07 ($0.07) Q3 20141 Foreign Taxes/other Share Operating2 Q3 20151 exchange/ repurchases income commodities 13 percent earnings per share growth 1 Adjusted for restructuring and other special items; see Appendix for detail and reconcil
Slide 22: 2015 guidance assumptions
2015 guidance assumptions • Global market growth Flat to ~1% – North America ~3% – Europe ~3% – China Flat to (~1%) – South America (~20%) • Euro 1.10 Challenging market Source: October 2015 IHS Automotive and Delphi internal estimates 22 Note: Includes medium/heavy duty trucks
Slide 23: 2015 guidance
2015 guidance (millions, except per share amounts) 2015 Outlook Reported revenue $14,935 - $15,135 Growth % 5% - 6%1 Operating income2 $1,940 - $1,970 Operating margin 13.0% EPS2 $5.15 - $5.25 Cash flow before financing ~$1,100 Tax rate2 ~16% 1 Average actual 2014 exchange rates; revenue growth is a
Slide 24: Appendix
Appendix DELPHI
Slide 25: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2015 Q3 2014 Net income attributable to Delphi $404 $305 Interest expense $30 $33 Other expense (income), net $11 ($5) Income tax expense $61 $56 Equity income, net of tax ($5) ($5) Income from discontinued operations, net of tax ($54) ($12) Net income a
Slide 26: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2015 Q3 2014 Net income attributable to Delphi $404 $305 Income from discontinued operations attributable to Delphi, net of tax ($53) ($6) Income from continuing operations attributable to Delphi $351 $299 Adjusting items: Restructuring $36 $46 Other acq
Slide 27: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2015 Q3 2014 Cash flows from operating activities: Income from continuing operations $364 $313 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization $131 $137 Working capital ($9) $92 Pension cont
Slide 28: Shares outstanding
Shares outstanding (millions) Three months ended September 30, 2015 2014 Weighted average ordinary shares outstanding, basic 282.97 298.59 Dilutive shares related to RSUs 1.43 1.55 Weighted average ordinary shares 284.40 300.14 outstanding, including dilutive shares 28
Slide 29: Delphi - Innovation for the Real World
sthe future. Now. DELPHI Innovation for the Real World