Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q4 2015 Earnings Presentation
27 slides from Aptiv's earnings presentation, Feb 4, 2016
Slide 1: Fourth quarter 2015 earnings call
February 4, 2016 Fourth 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 • 2015 in review Kevin Clark Chief Executive Officer • Summary Financial overview • 2015 results Mark Murphy Chief Financial Officer • 2016 guidance Q&A Kevin Clark/ Mark Murphy 3
Slide 4: Operations overview
Operations overview Kevin Clark President and Chief Executive Officer
Slide 5: Q4 and 2015 highlights
Q4 and 2015 highlights • Q4 revenue $3.9 billion; adjusted growth of 11% • 2015 revenue $15.2 billion; adjusted growth of 6% • Record Q4 operating income of $503 million; operating margins of 13.0% • 2015 operating income of $1,971 million; operating margin expansion of 60 bps Increase revenue • Rec
Slide 6: Strong bookings growth
Strong bookings growth Continued bookings growth 2015 bookings by region ($ billions) $26 Asia 31% $24 $24 $22 $20 $18 Europe 33% Americas 36% 2010 2011 2012 2013 2014 2015 Record bookings year; balanced across all segments and regions 1 At constant foreign exchange rates Note: Bookings = lifetime g
Slide 7: Current macro outlook
Current macro outlook Positive trends Neutral Challenges Consumer & South American Commodities/pricing regulatory demands production High-growth verticals: Exchange rates Eastern European ADAS, GDi, vehicle connectivity and electrical architecture (Euro, GBP, BRL and CNY) production China Commercial
Slide 8: Solid revenue growth
Solid revenue growth Major launch growth Revenue growth1 Customers Electrical Architecture # of major 2x 13% launches 8x 7% 2x 5% Q4'15 CY'15 Q1'16 Q4'15 CY'15 Q1'16 Powertrain 1x 5% 5% 4% 2x 1x Q4'15 CY'15 Q1'16 Q4'15 CY'15 Q1'16 Electronics & Safety 10x 13% 16x 11% 5x 5% Q4'15 CY'15 Q1'16 Q4'15 CY
Slide 9: 2016 Consumer Electronics Show
2016 Consumer Electronics Show Showcased advanced technology portfolio 9
Slide 10: Capital allocation strategy remains unchanged
Capital allocation strategy remains unchanged Capital deployment Strategic rationale M&A and • Portfolio modifications that strengthen our competitive position M&A and share • Continue to pursue strategic transactions that enhance value share repurchases repurchases • Return excess cash to sharehold
Slide 11: Positioned for 2016
Positioned for 2016 Optimizing cost structure Investing for growth Continuing Technologies footprint 7 sites exited in 2015 aligning to Safe, Green, Connected rotation megatrends Maintaining flexible Accelerating cost structure ~25% contract labor revenue growth 8% - 10% organic growth Further Evolv
Slide 12: Financial overview
Financial overview Mark Murphy Chief Financial Officer and Executive Vice President
Slide 13: Q4 2015 vs. Q4 2014
Q4 2015 vs. Q4 2014 ($ millions, except per share amounts) Q4 2015 Q4 2014 B/(W) Reported revenue $3,879 $3,778 $101 Growth % 3%/11%1 Operating income2 $503 $497 $6 Operating margin % 13.0% 13.2% (20) bps Net income3 $391 $386 $5 Earnings per share3 $1.39 $1.30 $0.09 Growth % 7% Record revenue and e
Slide 14: Revenue growth
Revenue growth Q4 2015 vs. Q4 2014 ($ millions) Year-over-year growth by region Reported Adjusted1 Q4 2015 Q4 2015 Europe (2%) 13% N. America 6% 7% Asia 13% 18% S. America (55%) (26%) Total 3% 11% $463 ($78) $3,879 $3,778 ($284) Q4 2014 Sales Price FX/ Q4 2015 growth commodities Strong revenue growt
Slide 15: Operating income growth
Operating income growth Q4 2015 vs. Q4 2014 ($ millions) $170 ($33) $497 ($53) $503 China volumes/ new launches/ ($78) 13.2% 13.0% investment for growth Q4 2014 Sales Net FX/ Price Q4 2015 growth performance commodities Solid flow through funding growth 15 Note: Operating income adjusted for restruc
Slide 16: Segment financials
Segment financials Q4 2015 vs. Q4 2014 ($ millions) Q4 2015 growth Operating income margin2 Reported Adjusted1 Q4 2014 Q4 2015 E/EA 6% 13% E/EA 12.4% 13.0% Powertrain (3%) 4% Powertrain 13.5% 14.1% E&S 3% 13% E&S 14.0% 10.4% $2,272 Revenue1 Operating income2 $2,005 Q4 2014 $276 Q4 2014 $248 Q4 2015
Slide 17: Earnings per share
Earnings per share Q4 2015 vs. Q4 2014 $0.07 $0.20 $1.39 $1.30 ($0.18) Q4 20141 Operating2 Share FX/ Q4 20151 income repurchases commodities Continued solid earnings growth 1 Adjusted for restructuring and other special items; see Appendix for detail and reconciliation to US GAAP 17 2 Adjusted for r
Slide 18: 2015 vs. 2014
2015 vs. 2014 ($ millions, except per share amounts) 2015 2014 B/(W) Reported revenue $15,165 $15,499 ($334) Growth % (2%)/6%1 Operating income2 $1,971 $1,925 $46 Operating margin % 13.0% 12.4% 60 bps Net income3 $1,495 $1,492 $3 Earnings per share3 $5.22 $4.94 $0.28 Growth % 6% Delivered on our com
Slide 19: Segment financials
Segment financials 2015 vs. 2014 ($ millions) 2015 growth Operating income margin2 Reported Adjusted1 2014 2015 E/EA (1%) 7% E/EA 12.8% 13.4% Powertrain (3%) 5% Powertrain 11.4% 12.6% E&S (4%) 5% E&S 12.0% 11.6% $8,867 Revenue1 Operating income2 $8,274 2014 $1,060 $1,095 2014 2015 2015 $4,535 $4,782
Slide 20: 2016 guidance assumptions
2016 guidance assumptions Europe North America 2% 3% China 21.8 21.5 mil 4% 18.5 mil units 18.1 mil units mil units 25.4 units 24.5 mil mil units 2015 2016 units 2015 2016 Global Markets 2015 2016 2% South America -10% 93.6 91.7 mil 3.1 mil units 2.8 mil units mil units units 2015 2016 2015 2016 Con
Slide 21: 2016 guidance
2016 guidance FY 2016 outlook Q1 2016 outlook (millions, except per share amounts) Reported sales $16,600 - $17,000 Reported sales $4,000 - $4,100 Adjusted growth1 8% - 10% Adjusted growth1 5% - 8% Operating income2 $2,200 - $2,300 Operating income2 $490 - $520 Operating margin 13.3% - 13.6% Operati
Slide 22: Summary
Summary • Delivered continued outperformance in 2015 – Strong growth well in excess of market and 60 bps of margin expansion yielding 16% EPS growth – Traction on portfolio rotation; well positioned for 2016 and beyond – Relentless focus on structural cost initiatives, funding incremental growth inv
Slide 23: The future. Now.
sthe future. Now. DELPHI Innovation for the Real World
Slide 24: Appendix
Appendix DELPHI
Slide 25: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q4 2015 Q4 2014 2015 2014 Net income attributable to Delphi $192 $344 $1,450 $1,351 Interest expense $35 $34 $127 $135 Other expense (income), net $21 ($1) $88 $8 Income tax expense $61 $74 $263 $255 Equity income, net of tax ($6) ($5) ($16) ($20) Loss (inc
Slide 26: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q4 2015 Q4 2014 2015 2014 Net income attributable to Delphi $192 $344 $1,450 $1,351 Loss (income) from discontinued operations attributable to Delphi, net of tax $7 ($4) ($262) ($42) Income from continuing operations attributable to Delphi $199 $340 $1,188
Slide 27: Shares outstanding
Shares outstanding (millions) Three months ended Year ended December 31, December 31, 2015 2014 2015 2014 Weighted average ordinary shares 279.29 294.11 285.20 300.27 outstanding, basic Dilutive shares related to RSUs 2.35 2.82 1.44 1.62 Weighted average ordinary shares 281.64 296.93 286.64 301.89 o