Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q4 2011 Earnings Presentation
36 slides from Aptiv's earnings presentation, Jan 26, 2012
Slide 1: Fourth Quarter 2011 Earnings Call
CONNECTED DELPHI Innovation for the Real World Fourth Quarter 2011 Earnings Call January 26%, 2012
Slide 2: Forward-Looking Statements
Forward‐Looking Statements This presentation, as well as other statements made by Delphi Automotive (“Delphi” or 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 stat
Slide 3: Agenda
AGENDA Business Overview 2011 in Review 2012 Priorities Financial Results Q4 and 2011 Results 2012 Guidance Conclusion Q&A Session Rodney O’Neal Chief Executive Officer Kevin Clark Chief Financial Officer Rodney O’Neal Chief Executive Officer
Slide 4: Business Overview
CONNECTED DELPHI Innovation for the Real World Rodney O’Neal Business Overview
Slide 5: 2011 Financial Highlights
2011 Financial Highlights Revenue $16,041 16% EBITDA $2,119 56% EBITDA Margin 13.2% 330 bps Operating Income $1,644 75% Operating Margin 10.2% 340 bps Net Income $1,145 82%
Slide 6: 2011 Operational Highlights
2011 Operational Highlights Quality – Near perfection Delivery – over 99% on-time Cost position – industry leading Percent low-cost labor – 91% All-in average hourly wage and benefit costs - below $7/hour Percent flexible workforce - 32% Customer launches - 767 programs
Slide 7: 2011 Major Launches
2011 Major Launches Ford Explorer John Deere R6 Volvo XC60 Ferrari 458 Spider Mercedes M-Class Hyundai Elantra
Slide 8: 2011 Technology Introductions
2011 Technology Introductions MyFi Charge Air Coolers Wireless Charging RACam GDi System Aluminum Wire
Slide 9: Favorable Customer Mix
Favorable Customer Mix 10% 31% 8% 3% 27% 9% 27% 20% 10% 8% 2011 Customer Mix Revenue Growth with Top 10 Delphi Customer Growth1 Production2 9 N. America International 10% 15% 7% 3% 6% (1%) 16% 16% (4%) (11%) 1 Reported revenue growth rate unadjusted for FX, commodities de/escalation or divestitures
Slide 10: Continued Geographic and Market Diversity
Continued Geographic and Market Diversity 2011 Regional Revenue Mix Revenue: $16.0 Billion 10 Other Light Vehicle 38% VW 12% Luxury 25% Aftermarket/ Commercial Vehicle 25% 2011 European Revenue Mix Revenue: $7.3 Billion North America 32% Europe 45% Asia Pacific 16% South America 7%
Slide 11: $23.5 Billion of New Business Bookings
$23.5 Billion of New Business Bookings $25 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec CY 2011 $23.5B CY 2010 $19.9B $23.5 Billion of New Business Bookings Europe 36% North America 33% Asia 22% South America 9% 11 Note: Bookings = lifetime gross program revenues awarded, based upon expected volu
Slide 12: Innovation for the Real World
Innovation for the Real World Innovation for the Real World 2LPH. Innovation for the Real World im | NYSE
Slide 13: 2012 Priorities
2012 Priorities Introduce new technologies to accelerate revenue growth Continue focus on cost structure to expand margins Increase conversion of earnings to cash flow Continue customer and geographic rotation Build upon culture of “Execution Excellence”
Slide 14: Financial Results
CONNECTED DELPHI Innovation for the Real World Kevin Clark Financial Results
Slide 15: Q4 2011 vs. Q4 2010
Q4 2011 vs. Q4 2010 ($ millions, except per share amounts) Q4 2011 Q4 2010 B/(W) Revenue $3,900 $3,652 $248 Growth % - - 6.8% EBITDA $530 $223 $307 EBITDA % 13.6% 6.1% 750 bps Net Income $290 $75 $215 Net Income Growth% - - 286.7% Earnings per share $0.88 $0.11 $0.77 Wtd. avg. quarterly share count
Slide 16: Revenue Growth
Revenue Growth 3,652 (62) (16) 30 296 3,900 3,000 4,000 Q4 2010 Price FX Commodity Sales Growth Q4 2011 Q4 ‘11 vs. Q4 ‘10 ($ millions) 16 (1.7%) Reported Revenue Growth of 6.8%
Slide 17: Regional Revenue Growth
Regional Revenue Growth 1,628 1,167 566 291 1,768 1,212 663 257 Europe N. America Asia S. America Q4 2010 Q4 2011 Q4 ‘11 vs. Q4 ‘10 ($ millions) Continued Strong Growth in Europe and Asia
Slide 18: Q4 EBITDA Bridge
($ Millions) - 50 100 150 200 250 300 350 400 450 500 550 223 (62) (5) 2 89 283 530 - 50 100 150 200 250 300 350 400 450 500 550 Q4 '10 Price Variable Accounting LTI Foreign Exchange Restructuring Sales Growth / Performance Q4 '11 EBITDA EBITDA Margin 6.1% 13.6%
Slide 19: Segment Financials
Segment Financials 19 10.0% 10.6% 0.7% 148 46 57 (22) 178 223 90 39 E/EA Powertrain E&S Thermal 20.3% 384.8% 57.9% n/a Q4 ‘11 vs. Q4 ‘10 ($ millions) (4.3%) Margin 10.0% 10.9% 4.1% 18.0% 8.4% 13.1% (5.2%) 9.7% Significant Margin Expansion Across All Segments Revenue E/EA Powertrain E&S Thermal
Slide 20: FY 2011 vs. FY 2010
FY 2011 vs. FY 2010 20 1 Cash flow before financing adjusted to exclude the accounting impact of $550M financing investment related to short term time deposits in 2010 and 2011 and $42M in IPO related fees in 2011 ($ millions, except per share amounts) Revenue Growth Leveraged into Margin Expansion
Slide 21: Revenue Growth
Revenue Growth 13,817 (186) 229 419 1,762 16,041 12,000 13,000 14,000 15,000 16,000 17,000 2010 Price Commodity FX Sales Growth 2011 2011 vs. 2010 ($ millions) 21 (1.4%) Reported Revenue Growth of 16.1%
Slide 22: Regional Revenue Growth
Regional Revenue Growth 5,892 4,605 2,177 1,143 7,264 5,111 2,464 1,202 Europe N. America Asia S. America 2010 2011 2011 vs. 2010 ($ millions) 22 23.3% 11.0% 13.2% 5.2% Solid Growth Across All Regions
Slide 23: EBITDA Growth
EBITDA Growth EBITDA = Operating Income + Depreciation/Amortization 23 2011 vs. 2010 ($ millions) 1,361 (186) (7) 49 193 709 2,119 400 450 500 550 600 650 700 750 800 850 900 950 1,000 1,050 1,100 1,150 1,200 1,250 1,300 1,350 1,400 1,450 1,500 1,550 1,600 1,650 1,700 1,750 1,800 1,850 1,900 1,950 2
Slide 24: Segment Financials
Segment Financials 2011 vs. 2010 ($ millions) 24 18.2% 21.6% 7.7% 9.5% 650 361 247 109 868 710 369 172 E/EA Powertrain E&S Thermal 33.5% 96.7% 49.4% 57.8% Margin 11.6% 13.1% 8.8% 14.3% 9.1% 12.6% 6.8% 9.8% Revenue EBITDA Significant Margin Expansion Across All Segments E/EA Powertrain E&S Thermal
Slide 25: Cash Flow Before Financing
EBITDA 2,119 Working Capital (115) Capital Expenditures (630) Cash Interest & Taxes (373) Restructuring, net of expense (74) Pension contributions/other (68) Cash Flow before Financing1 859 2011 ($ millions) 221 274 325 Q1 1 Q2 Q3 Q4 1 CFBF by Quarter 1 Cash flow before financing adjusted to exclude
Slide 26: Solid Balance Sheet
Solid Balance Sheet 26 12/31/11 Cash1 $1,372 Debt $2,103 Net Debt $731 Debt to EBITDA 1.0x Net Debt to EBITDA 0.3x Pension liability $674 1 Includes restricted cash of $9M 2 Post GM/PBGC share redemption 2011 Uses of cash4 Term loan pay down Share redemption Distribution – Tax related Discretionary
Slide 27: Key 2012 Assumptions
Key 2012 Assumptions Production Volume in 000's 2011 Actual 2012 Fcst Variance GMNA 3,085 3,035 -2% Japanese N.A. 3,687 4,395 19% Euro 1.30 Copper $4.00/lb Other NA 6,659 6,898 4% North America 13,431 14,328 7% Mexico 13.7 Aluminum $1.10/lb Asia 39,159 42,722 9% China 18,612 19,810 6% Brazil 1.88 Oi
Slide 28: 2012 Guidance
DELPHI 2012 Guidance Fee wore {§ millions, except per share amounts) Q1 2012 2012 Qutlook Qutlook Revenue 4,000 - 4,100 16,200 — 16,500 Growth rate adjusted for FX/commodities 3% - 5% 3% - 5% EBITDA 525 - 575 2,150 — 2,250 EBITDA % 13.1% - 14.0% 13.3% - 13.6% Earnings per share* $0.83 - $0.96 $3.44
Slide 29: $3.3B of Cumulative Net New Business
$3.3B of Cumulative Net New Business Each column represents projected cumulative annual revenue increase versus 2009 split between macro economic drivers (volume, FX, commodity de/escalation & price) and net new business (booked and high confidence new business wins less incumbent losses and cancell
Slide 30: Other: Share Repurchase Program and Lock-up Expiry
Board of Directors authorized a $300M share repurchase program The lock-up for 30% of restricted shares from the November IPO will cease for shareholders (other than directors) on February 14th with the remaining 70% to cease on May 15th Expect to file an S-1 shelf registration within the next week
Slide 31: Conclusion
CONNECTED DELPHI Innovation for the Real World Rodney O’Neal Conclusion
Slide 32: Appendix
Appendix
Slide 33: Non-US GAAP Financial Metrics
Non‐US GAAP Financial Metrics 33 $ Millions Q1 Q2 Q3 Q4 12/31/11 Cash flow from operating activities: Net income 310 316 285 312 1,223 Depreciation/Amortization 117 116 123 119 475 Working Capital (316) (17) 28 190 (115) Other operating activities 45 (72) (26) (153) (206) Net cash provided by operat
Slide 34: Non-US GAAP Financial Metrics
Non‐US GAAP Financial Metrics FY 2011 Q4 2011 FY 2010 Q4 2010 Net Income attributable to Delphi $1,145 $290 $631 $75 Income Tax $305 $29 $258 $49 Interest Expense $123 $39 $30 $8 Other Expense/(Income), net $15 $28 ($34) ($27) Non-controlling Interest $78 $22 $72 $16 Equity (Income)/Loss, net of tax
Slide 35: Shares Outstanding
Shares Outstanding 35 Year-ended Year-ended 12/31/11 12/31/10 Weighted average ordinary shares outstanding as result of the initial public offering: 328 328 Redemption of Class A & C membership interests 86 349 Repurchase of Class B membership interests 7 10 Issuance of Class E-1 membership interest
Slide 36: Delphi: Innovation for the Real World
DELPHI DeELPFI Innovation for the Real World