Sensata Technologies Holding Plc · NYSE:ST
Sensata Technologies — Q1 2016 Earnings Presentation
17 slides from Sensata Technologies's earnings presentation, Apr 26, 2016
Slide 1: Sensata First Quarter 2016 Earnings Summary
APRIL 26, 2016 SENSATA FIRST QUARTER 2016 EARNINGS SUMMARY
Slide 2: Forward-looking Statements
Forward–looking Statements In addition to historical facts, this earnings release, including any documents incorporated by reference herein, includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward– looking statements relate to a
Slide 3: Q1 2016 Highlights
Q1 2016 Highlights ON TRACK TO DELIVER IN 2016 Net Revenue of $796.5M, above the midpoint of guidance (increase of 6% y/y) and Adj. EPS of $0.66. On track for full year guide On track for planned margin expansion Regulatory journey a driver of content growth Early design wins with CST Auto
Slide 4: Sensata Has Significant EPS Growth Potential
Sensata Has Significant EPS Growth Potential 10% ADJ. EPS CAGR SINCE 2013 - ACQUISITIONS INTEGRATION DELIVERS MARGIN GROWTH Adjusted EPS and ANI Margin Adjusted EPS Reported ANI Margin Core ANI margin (exc. Acq during integration, constant currency) Target ANI Margin: 20% 20 - 23% $2.75 $2.87 15% $2
Slide 5: Regulatory Journey a Driver of Content Growth
Regulatory Journey a Driver of Content Growth On–board Diagnostics, US 2018–2019 Euro VII CAFÉ 2019–2020 TPMS, China 2018–2025 2019–2020 Beijing VI 2017 Real Driving China National Stage V Emissions, EU 2016–2018 HVOR Tier IV 2015–2018 2025 SEER 14 – HVAC 2015 Euro VI 2014–2018 Q1 DESIGN WINS: High
Slide 6: CST Expands Sensor Growth Beyond Auto
CST Expands Sensor Growth Beyond Auto EARLY NEW DESIGN WINS EARLY WINS NA Auto PRESSURE SENSOR WIN Other EU Auto with major N. American systems 20% Defense & 3% integrator 4% Aero 2% Industrial chillers and rooftop HVAC App & HVAC 6% 26% $3.21B in 2016E 4% Revenue LINEAR VARIABLE DIFFERENTIAL In
Slide 7: Partnership Brings Sensata Substantial Sensor Growth as ADAS is Adopted
Partnership Brings Sensata Substantial Sensor Growth as ADAS is Adopted • Potential LiDAR market SENSATA BRINGS SIGNIFICANT VALUE: opportunity of ~$1B by 2020* New product launch experience • Well positioned to win in one Manufacturing expertise of the largest ADAS sensing Deep customer relations
Slide 8: Q1 2016 Financial Summary
Q1 2016 Financial Summary ADJUSTED NET INCOME GROWTH OF 8% ON A CONSTANT CURRENCY BASIS Reported • 8.9% acquired growth Q1 2015 Q1 2016 Growth including exited businesses; Net Revenue $750.7M $796.5M +6.1% net revenue declined (0.9)% organically, as expected Adj. EBITDA $173.3M $187.7M +8.3% • Core
Slide 9: Q1 2016 Review: Performance Sensing
Q1 2016 Review: Performance Sensing NET REVENUE PROFIT FROM OPERATIONS HELD MARGIN DESPITE CURRENCY HEADWINDS $591.3M $597.2M $143.9M $145.8M 24.3% 24.4% Q1 2015 Q1 2016 Q1 2015 Q1 2016 % of ST Net Q1 Growth y/y Reported Organic • Automotive organic growth driven by Revenue increasing content in Eur
Slide 10: Q1 2016 Review: Sensing Solutions
Q1 2016 Review: Sensing Solutions NET REVENUE PROFIT FROM OPERATIONS SUSTAINED HIGH MARGIN PERFORMANCE $199.4M $63.2M $159.4M $49.2M 31.7% 30.9% Q1 2015 Q1 2016 Q1 2015 Q1 2016 % of ST Net Q1 Growth y/y Revenue Reported Organic • Continued weakness in certain end-markets Sensing Solutions 25% 25% (7
Slide 11: Q2 2016 Financial Guidance
Q2 2016 Financial Guidance Q2 2015 Q2 2016 Guide Reported Organic Excludes FX, CST, Exited business Net Revenue $770.4M $800 – $840M 4% – 9% (2)% – 1% Adj. Net Income $124.6M $117 – $127M (6)% – 2% 3% – 8% Adj. EPS $0.73 $0.68 – $0.74 (7)% – 1% 3% – 7% Diluted Shares Outstanding 171.7M 171.6M CST ac
Slide 12: 2016 Financial Guidance
2016 Financial Guidance ON TRACK FOR YEAR FY 2015 FY 2016 Guide Reported Organic Excludes FX, CST, Exited business Net Revenue $2,975M $3,140 – $3,280M 6% – 10% 0% – 3% Adj. Net Income $472.0M $470 – $515M 0% – 9% 4% – 11% Adj. EPS $2.75 $2.74 – $3.00 0% – 9% 4% – 11% Diluted Shares Outstanding 171.
Slide 13: Sensata Remains Committed to Shareholder Value Creation
Sensata Remains Committed to Shareholder Value Creation Sensata Wins In Sensing, outperforming markets with leading margins Acquisitions diversify end–market exposure and provide earnings leverage Double–digit long–term revenue and earnings CAGRs Strong cash generation and disciplined capita
Slide 14: Appendix
APPENDIX SENSATA FIRST QUARTER 2016 EARNINGS SUMMARY
Slide 15: GAAP to Non-GAAP Reconciliation
GAAP to Non–GAAP Reconciliation Sensata Technologies Holding N.V. Reconciliation of GAAP Net Income to Adjusted EBITDA and Adjusted EBIT ($ in 000s) Quarter Ended Quarter Ended Quarter Ended Quarter Ended Year Ended Quarter Ended Mar 31, 2015 Jun 30, 2015 Sep 30, 2015 Dec 31, 2015 Dec 31, 2015 Mar 3
Slide 16: Sensata Financial Metrics Dashboard
Sensata Financial Metrics Dashboard TSR from IPO 2015 TSR 2015 ROIC 14% (12)% 13.0% CAGR (S&P: 10%) 2016 YTD: (16)% Cash Returned Acquired Revenue 2012–2015 (DeltaTech, Schrader, CST) $0.40 - $0.45 $500M 7.5% OF SHARES REPURCHASED $1.05B ACCRETION IN 2016E Q1 2016 EARNINGS SUMMARY 16
Slide 17: Non-GAAP Measures
Non–GAAP Measures This presentation includes references to Adjusted net income, Adjusted EBITDA, Net debt, Net leverage ratio and free cash flow. Adjusted net income and Adjusted EBITDA are non–GAAP financial measures. The Company defines Adjusted net income as follows: Net income before certain res