Slide 1: Third Quarter 2017 Earnings Call
November 2, 2017 Third Quarter 2017 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 Operational and strategic overview • Strategic update Kevin Clark Chief Executive Officer Financial overview • Q3 2017 results Joe Massaro Chief Financial Officer • Q4 and 2017 guidance Q&A Kevin Clark / Joe Massaro 3
Slide 4: Strategic Overview
Strategic Overview Kevin Clark President and Chief Executive Officer
Slide 5: Third Quarter Highlights
Third Quarter Highlights Revenue Operating income Earnings per share $4.3B $12.9B $0.6B $1.7B $1.66 $4.95 Q3 Up 4.4% YTD Up 6.0% Q3 Margins Up 30bps YTD Margins Up 20bps Q3 Up 15.3% YTD Up 16.5% • Record Q3 Sales, operating income, margins and EPS; ahead of expectations • Raising 2017 outlook – volu
Slide 6: 2017 Investor Conference Recap
2017 Investor Conference Recap Aptiv Delphi Technologies ENABLING SMART MOBILITY SOLUTIONS ENABLING ADVANCED VEHICLE PROPULSION ELECTRIFICATION MILD HYBRID TO FULL EV FLEXIBLE TECHNOLOGY LEADER SOFTWARE & CONTROLS OPTIMIZED ELECTRONIC CONTROL Portfolio to meet today and tomorrow’s market DATA & CENT
Slide 7: Winning On New Platforms
Winning On New Platforms Aptiv Delphi Technologies Cumulative Bookings Since 20111 Cumulative Bookings Since 20111 INFOTAINMENT & ACTIVE HIGH VOLTAGE POWER GDI & VARIABLE MEDIUM / HEAVY USER EXPERIENCE SAFETY ELECTRIFICATION ELECTRONICS VALVETRAIN DUTY CV ~$14B $7B+ $4B+ ~$4B $9B+ ~$6B Example Q3 Wi
Slide 8: Infotainment And User Experience Leadership
Infotainment And User Experience Leadership INFOTAINMENT CONNECTED VEHICLE PLATFORM Today: Integration of software and Tomorrow: Software defined features and OTA unlock hardware solutions seamless, integrated experiences and connected services Revenue Growth Revenue By 2020 11% 15%+ Smart Vehicle A
Slide 9: Active Safety / Automated Driving Leadership
Active Safety / Automated Driving Leadership ACTIVE SAFETY AUTOMATED DRIVING Today: Software & systems integration Tomorrow: Accelerating with OEMs and enabling leadership position in active safety New Mobility to deliver level 4/5 solutions Revenue Growth Revenue By 2025 72% 50%+ Smart Vehicle Arch
Slide 10: nuTonomy Adding To Unmatched AD Capabilities
nuTonomy Adding To Unmatched AD Capabilities nuTonomy Acquisition Delivering Unmatched Capabilities Advanced automated driving (AD) technology Highly complementary to Delphi core competencies Fleet Management ACCELERATING AUTOMATED DRIVING • nuTonomy a leader in automated driving software SENSING &
Slide 11: Adding Strategic Partnerships
Adding Strategic Partnerships Innoviz Leddartech Blackberry QNX Long Range Solid State LiDAR Solid State, Low Cost Corner LiDAR OS For Automated Driving Solution Strategic investment and Strategic investment and Commercial partnership facilitates commercial partnership in solid-state commercial part
Slide 12: Financial overview
Financial overview Joe Massaro Chief Financial Officer and Senior Vice President
Slide 13: Q3 2017 vs. Q3 2016
Q3 2017 vs. Q3 2016 ($ millions, except per share amounts) Q3 2016 Q3 2016 PF3 Q3 2017 B/(W) Reported revenue $311 $4,091 $4,022 $4,333 Adjusted Growth %1 4.4% EBITDA2 $707 $687 $748 $61 EBITDA margin % 17.3% 17.1% 17.3% 20 bps Operating income2 $534 $515 $566 $51 Operating margin % 13.1% 12.8% 13.1
Slide 14: Revenue Growth
Revenue Growth Q3 2017 vs. Q3 2016 Year-over-year growth by region ($ millions) Reported Adjusted1 $291 $4,333 Q3 2017 Q3 2017 $4,091 $4,022 $94 $5 ($69) ($79) Europe 9% 6% N. America (7%) (8%) Asia 20% 19% S. America 26% 25% Total 6% 4% Q3 2016 Mechatronics Q3 20162 Price FX/ Acq/ Sales Q3 2017 Pro
Slide 15: Operating Income Growth
Operating Income Growth Q3 2017 vs. Q3 2016 Highlights ($ millions) • Strong volume flow through $77 $566 $534 $515 $35 13.1% • 2% price downs, in line with ($19) $28 13.1% 12.8% expectations ($79) ($10) • Continued performance benefits Q3 20161 Mechatronics Q3 2016 Price New Mobility FX/ Performanc
Slide 16: Q3 2017 Segment financials
Q3 2017 Segment financials E/EA E&S Powertrain (Revenue, $ millions) Mechatronics revenue $845 $1,205 $2,317 $763 $2,287 $694 $1,077 14% Adjusted 11% (1%) growth1 Adjusted Adjusted growth1 growth1 Q3 2016 Q3 2017 Q3 2016 Q3 2017 Q3 2016 Q3 2017 ($ millions) Q3 2016 Q3 2017 Q3 20163 Q3 2017 Q3 2016 Q
Slide 17: Earnings per share
Earnings per share Q3 2017 vs. Q3 2016 Highlights $0.01 $1.66 • Strong operating income $0.10 $0.03 $1.50 $0.12 growth $1.44 ($0.06) ($0.04) • FX tailwind driven by strengthening Euro • Favorable interest expense from prior year refinancing New Mobility Share Q3 2017 • Lower share count as expected
Slide 18: 2017 guidance
2017 guidance ($ millions, except per share amounts) Q4 2016 pro forma1 Q4 20174 20174 Reported revenue $4,250 $4,400 - $4,500 $17,350 - $17,450 Adjusted growth2 10% ~1% ~5% Operating income3 $596 $610 - $640 $2,300 - $2,330 Operating margin 14.0% ~14.0% ~13.3% EPS3 $1.76 $1.75 - $1.85 $6.70 - $6.80
Slide 19: Wrap Up
Wrap Up • Mid-single digit growth above market despite NA passenger car weakness Delivering • Strong earnings growth while investing in future mobility growth opportunities Strong 2017 • Flexible business model enables continued operational execution • Raising 2017 outlook: increasing sales, operati
Slide 20: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 21: Appendix
Appendix DELPHI
Slide 22: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2017 Q3 2016 Net income attributable to Delphi $395 $293 Interest expense 36 41 Other (income) expense, net 9 69 Income tax expense 60 57 Equity income, net of tax (7) (10) Net income attributable to noncontrolling interest 18 13 Operating income $511 $4
Slide 23: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q3 2017 Q3 2016 Net income attributable to Delphi $395 $293 Interest expense 36 41 Other (income) expense, net 9 69 Income tax expense 60 57 Equity income, net of tax (7) (10) Net income attributable to noncontrolling interest 18 13 Operating income $511 $4
Slide 24: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions, except per share amounts) Q3 2017 Q3 2016 Net income attributable to Delphi $395 $293 Income from discontinued operations attributable to Delphi, net of tax — — Income from continuing operations attributable to Delphi $395 $293 Adjusting items: Restructurin
Slide 25: Shares outstanding
Shares outstanding (millions) Q3 2017 Q3 2016 Weighted average ordinary shares outstanding, basic 266.24 272.19 Dilutive shares related to RSUs 0.92 0.58 Weighted average ordinary shares outstanding, including dilutive shares 267.16 272.77 25
Slide 26: Financial guidance metrics
Financial guidance metrics ($ millions) Q4 20171 20171 Net income attributable to Delphi $394 $1,493 Interest expense $44 $149 Other expense, net $4 $33 Income tax expense $73 $256 Equity income, net of tax ($6) ($31) Net income attributable to noncontrolling interest $21 $73 Operating income $530 $
Slide 27: Financial guidance metrics
Financial guidance metrics ($ millions, except per share amounts) Q4 20171 20171 Net income attributable to Delphi $394 $1,493 Restructuring $62 $242 Separation costs $28 $74 Other acquisition and portfolio project costs $5 $16 Asset impairments - $10 Reserve for Unsecured Creditors litigation - $10
Slide 28: Pension expense reclassification detail
Pension expense reclassification detail ($ millions) Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Adjusted net income attributable to Delphi $377 $435 $409 $498 $1,719 Pension expense reclassification impact on operating income $3 $3 $3 $10 $19 Pension expense reclassification impact on other income ($3) ($
Slide 29: Mechatronics financial detail
Mechatronics financial detail ($ millions, except per share amounts) Delphi – Reported Q1 2016 Q2 2016 Q3 2016 Q4 2016 2016 Revenue $4,051 $4,206 $4,091 $4,313 $16,661 Adjusted EBITDA1 $674 $748 $707 $787 $2,916 Adjusted operating income1,2 $512 $580 $534 $616 $2,242 Adjusted operating margin1,2 12.
Slide 30: Delphi - Innovation for the Real World
DELPHI Innovation for the Real World