Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — J.P. Morgan Auto Conference 2016
30 slides from Aptiv's conference presentation, Aug 10, 2016
Slide 1: J.P. Morgan Auto Conference
August 10, 2016 J.P. Morgan Auto Conference Kevin Clark President and Chief Executive Officer
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: Macro trends create challenges for our customers…
Macro trends create challenges for our customers… Regulated Active Safety growing Best-value electrification required to IoT driving connected car to new with increased consumer awareness meet step function change in regulation levels & creating new challenges More safe More green More connected CO2
Slide 4: Strategic priorities
Strategic priorities • Enhance portfolio of market relevant products Disciplined • Balanced regional growth revenue growth • Further diversify customer base and platform mix • Continue footprint rotation to best cost countries Cost structure • Further integrate EOS across the enterprise optimization
Slide 5: Safe, green and connected technology trends
Safe, green and connected technology trends China Emissions: 117 CO2 g/km – 2020 EU Emissions: 95 CO2 g/km – 2021 US Fuel economy: 54.5 mpg – 2025 2010 2015 2020 2025 Assisted ADAS Semi Fully automation expansion automated automated Increasing levels of electrification Electrical architecture is an
Slide 6: Electrical architecture is the nervous system of the vehicle
Electrical architecture is the nervous system of the vehicle Key auto growth trends Vehicle nervous system Automated • Sensors: radar, vision, LiDAR Vehicle brain driving • Driving algorithms • Infotainment / display, automated driving • Safety hardware & software • Control hardware & software Safe
Slide 7: Vehicle complexity increasing
Vehicle complexity increasing 2015 2020+ 280 connections 25% to manage power, increase in diagnostics connections and signal – up to 350 communication Primarily 12V 1.5 miles of Increase in 67% increase powering the cabling per Electrification in cabling – up vehicle vehicle – up to 600V to 2.5 mile
Slide 8: Active safety evolving to include more automation
Active safety evolving to include more automation 100% 10x Safety benefit Cost Safety benefit Cost 1x Level 0 Level 1 Level 2 Level 3 Level 4 No automation Function-specific automation Combined function automation Limited self-driving automation Full self-driving automation Driver able to cede full
Slide 9: Automated Mobility on Demand (AMoD)
Automated Mobility on Demand (AMoD) Key accelerators driving early adoption of commercial Automated Mobility solutions Level 4 Market driver • Motivated by economics rather than safety or Level 3 convenience Level 2 Governance Level 1 • Simplified regulatory and legal environment at the local level
Slide 10: Singapore Automated Mobility Pilot
Singapore Automated Mobility Pilot Delphi integrates active safety and automated features Rear camera Driver State Sensing RACam Front camera Front radar Sensor Technology Multi-Domain Delphi Cloud Controller provides key data and service Automated connections to MoD Driving Software ecosystem Side
Slide 11: Regulations becoming increasingly stringent
Regulations becoming increasingly stringent NOx emissions regulations Innovative solutions to reduce CO2 0.6 Improvement ‘05 to ‘21 Baseline: 4-cyl. turbo GDi with dual cam phasing 84% 0.4 g / km 72% 0.2 84% 0 64% 2000 2010 2020 2030 CO2 regulations ~27% ~39% ~28% reduction reduction reduction ‘15 t
Slide 12: Electrification expected to grow…
Electrification expected to grow… Hybrids increase in the next 10 years: ~22M by 2025 120 Electric vehicles 48V mild hybrids Full hybrids Alternative fuels 8M 100 22M 14M 80 Diesel 60 GDi gasoline 40 20 PFI gasoline 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 ... Adding power to interna
Slide 13: Select electrification customer awards
Select electrification customer awards Delivering improved functionality, better performance, greater efficiency Electrical architecture wins on all current production models Gen-4 global platform ... Battery pack wiring system Volt & Bolt … A broad portfolio of electrical architecture Leading Europ
Slide 14: Creating intelligent electrification with Delphi's 48V solution
Creating intelligent electrification with Delphi’s 48V solution 48V electrification Enabling intelligent electrification Optimized electrical architecture is the foundation Improved functionality, better performance, greater efficiency Builds on electrical solution competency Software, software, sof
Slide 15: Electrification increases Delphi content per vehicle (CPV)
Electrification increases Delphi content per vehicle (CPV) Powertrain Management Electrical System Battery Management • Supervisory controller • 48V fusing & distribution • Charging inlets and cables • Supervisory software • High power & voltage connectors • Internal battery connections • Inverter •
Slide 16: More safe, more green, more connected…
More safe, more green, more connected… Influence of Silicon Valley Delphi’s technology acceleration 2010 2015 2020 Lines of code 200M 20B 200B shipped daily Software <$50M $500M $1.5B revenue Software 2,000 5,000 8,000 engineers Key 15+ 30+ 60+ partnerships Software 150+ 300+ 400+ launches … Require
Slide 17: Strengthening technology portfolio
Strengthening technology portfolio Areas of focus • Enhance competitive position Strategic • Strengthen product portfolio • Diversify customer and regional mix • Solid operating systems Operating • Strong management team and cultural fit • High confidence integration plan • Enhance growth and return
Slide 18: J.P. Morgan Auto Conference
J.P. Morgan Auto Conference Joe Massaro Chief Financial Officer and Senior Vice President
Slide 19: Financial strategy remains unchanged
Financial strategy remains unchanged • Enhance portfolio of market relevant products Disciplined • Continue rotation to high growth regions revenue growth • Further diversify customer base and platform mix • Continue footprint rotation to best cost countries Cost structure • Maintain flexibility of
Slide 20: Performance highlights 2010-2016
Performance highlights 2010-2016 Revenue Operating income2 EPS3 ($ billions) ($ billions) $16.4 $6.00 $2.2 $12.3 13.3% $1.1 8.8% $0.84 2010 2016E 2010 2016E 2010 2016E Track record of strong financial performance 1. Adjusted for FX, commodities, the E&S divestiture and significant historical acquisi
Slide 21: Capital allocation
Capital allocation 2011-2015 capital allocation Capital deployment ($ millions) Capital • Supporting customer launches ~$4,000 ~$4.6B Expenditures • Technology tools for increasing business efficiency cash 35-40% • Further optimizing global footprint returned to shareholders 2011 – 2016YTD ~$2,500 ~
Slide 22: Value enhancing portfolio modifications
Value enhancing portfolio modifications Acquisition Divestiture Investment 2016 2015 2015 Multi-layer 3D display technology 2015 Software-as-a-service for data management 2014 Enhanced position in electrical architecture 2014 Unwired Software for dynamic cylinder deactivation Expanded connectivity p
Slide 23: Portfolio realignment
Portfolio realignment Acquisition/ 2015-2018 2015-2018 Synergy Explanation divestiture date revenue CAGR EBITDA Margins achievement EBITDA margins over plan MVL Q4 2012 ~5% ~30% 1.5x Synergies in excess of plan Bookings ahead of plan Q4 2014 ~30% ~20% 1.5x Revenue growth well over plan Synergies in
Slide 24: HellermannTyton
HellermannTyton Highlights Future opportunities • Worldwide leader in cable management solutions • Broad portfolio of highly engineered solutions Rationale • Strengthens leadership in electrical architecture • Market leader with worldwide brand • End-market expansion opportunity • Diversified region
Slide 25: Control-Tec
Control-Tec Highlights Future opportunities • Broadens our “Big Data” capabilities • Expanding usage with global OEMs Rationale • Leverages real-time data and the cloud • One system servicing multi-domains simultaneously • Accelerating Powertrain development cycle Today Tomorrow • Penetrating new cu
Slide 26: Delphi investment thesis
Delphi investment thesis Portfolio Organic growth Margin Capital management acceleration expansion allocation • Portfolio aligned to • Targeted market • Optimized cost structure • Balanced, predictable megatrends penetration cash deployment • Enterprise operating • Increasing exposure to • Well posi
Slide 27: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 28: Appendix
Appendix DELPHI
Slide 29: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) 2010 Net income attributable to Delphi $631 Income tax expense $226 Interest expense $30 Other (income) expense, net ($35) Noncontrolling interest $72 Equity income, net of tax ($6) Income from discontinued operations, net of tax ($64) Operating income $854
Slide 30: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) 2015 Net income attributable to Delphi $1,450 Income from discontinued operations attributable to Delphi, net of tax ($262) Income from continuing operations attributable to Delphi $1,188 Adjusting items: Restructuring $177 Other acquisition and portfolio p