Aptiv Plc · NYSE:APTV
Aptiv — Delphi Technologies — Barclays Global Automotive Conference 2017
22 slides from Aptiv's conference presentation, Nov 15, 2017
Slide 1: Delphi Technologies PLC Barclays Global Automotive Conference 2017
Delphi Technologies PLC Barclays Global Automotive Conference 2017 Liam Butterworth Chief Executive Officer
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation, as well as other statements made by Delphi Technologies 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 perfor
Slide 3: Welcome and Introductions
Welcome and Introductions Future Chief Executive Officer and President of Delphi Technologies PLC Currently, Senior Vice President of Delphi and President, Powertrain Systems Previously, President of Delphi Connection Systems, a business unit of Delphi E/EA Joined Delphi in October 2012 when the com
Slide 4: Welcome and Introductions
Welcome and Introductions Future Chief Financial Officer of Delphi Technologies PLC; joined Delphi Powertrain Systems in October 2017 Before joining Delphi, was Chief Financial Officer at LivaNova PLC, a UK- domiciled, NASDAQ-listed global medical-device company Previously, worked for Allergan Inc.
Slide 5: Spin-Off Update
Spin-Off Update • Delphi Technologies name selected and announced Transaction • Delphi Automotive Board approved spin-off transaction DELPHI timeline • Record date set for November 22nd • Distribution date set for December 4th TECHNOLOGIES • Transition Service Agreements (TSAs) established Readiness
Slide 6: Delphi Technologies Board of Directors
Delphi Technologies Board of Directors Tim Manganello Liam Butterworth Robin Adams Joseph Cantie Nelda Connors • Future Chairman, Delphi • Future Director, CEO and • Former Vice Chairman, CFO • Former EVP and CFO of ZF • Founder, Chairwoman, and Technologies President Delphi and Chief Administrative
Slide 7: Delphi Technologies Strategy
Delphi Technologies Strategy Flexible Technology Portfolio — OEM and Aftermarket ELECTRIFICATION SOFTWARE & CONTROLS INTERNAL COMBUSTION MILD HYBRID TO FULL EV OPTIMIZED ELECTRONIC CONTROL INCREASED GAS AND DIESEL EFFICIENCY Strategy Execution Capital allocation – Invest in areas of business Lean En
Slide 8: Delphi Technologies Business Overview
Delphi Technologies Business Overview FINANCIALS • Fuel economy and emissions regulations Regulatory Sales ($ billions), Op Margin1 and consumer • Vehicle performance, TCO, and up-time tailwinds • Power for new features and functionality $4.5 $4.5 ~$4.6 ~$4.5 $4.4 Portfolio for • Today: GDi, valvetr
Slide 9: Technology Shift Due to Regulatory and Consumer Tailwinds
Technology Shift Due to Regulatory and Consumer Tailwinds Vehicle Production (millions) CAGR (2017 – 2025) • xEV production ~30% CAGR through 2025 Electric 5 24% Vehicles Electrification • Significant 48V adoption 11 Electrified 6 penetration • China NEV program incentivizing PHEV/BEV 6 Full 19% 32%
Slide 10: Portfolio: Diesel Engine Management Systems
Portfolio: Diesel Engine Management Systems FLEXIBLE DIESEL SOLUTIONS FOR APPLICATIONS UP TO 18 LITER ENGINES CV Diesel Injectors, Pumps, and Rail 10110001111011011000111101101100011110110110001111011 01100011110110110001111011011000111101101100011110110 Turbo optimization 11000111101101100011110110
Slide 11: Portfolio: Gasoline Engine Management Systems
Portfolio: Gasoline Engine Management Systems FIRST-TO-MARKET WITH 350-BAR GASOLINE DIRECT INJECTION (GDi) FUEL INECTION SYSTEM GDi Injectors & Rail 10110001111011011000111101101100011110110110001111011 Low noise, vibration 01100011110110110001111011011000111101101100011110110 and harshness 11000111
Slide 12: Portfolio: Electronics and Software
Portfolio: Electronics and Software Broad range of electronic controls and software Full suite of 48V and high-voltage power electronics Propulsion Gasoline Diesel domain controller Inverters Combined engine controller engine controller Inverter-Converter $4B Lifetime bookings1 Transmission Aftertre
Slide 13: Balanced Business
Balanced Business End Market Mix Regional Mix Customer Mix1 CV & AM drive end market diversity Improving alignment to global production No customer > 10% of sales % 2016 revenue % 2016 OEM revenue % 2016 revenue EUROPE, AFTERMARKET (AM) DAIMLER MIDDLE EAST & AFRICA AMERICAS GM Aftermarket OTHER HYUN
Slide 14: Industry-Leading Cost Structure
Industry-Leading Cost Structure Established Global Presence Lean And Flexible Cost Structure • Network of 20 major manufacturing facilities, 12 tech centers • Restructuring focus on footprint optimization and flexibility • Efficient manufacturing primarily in best-cost countries (BCC) • Rotation tow
Slide 15: Business Wins Accelerated
Business Wins Accelerated Booked Program Lifetime Value Key Technologies Adjusted bookings1 ($ billions) Power Electronics 20% First half bookings CAGR roughly in line with total 2015 Gas Direct Injection $6.7 $6.1 $5.8 Electronics and Software $4.7 Variable Valvetrain Commercial Vehicle Diesel 2014
Slide 16: Winning in Key End Markets
Winning in Key End Markets Market Key Technologies Example Wins Power Electronics ASIA-PACIFIC GDi Power Gas Direct Valvetrain Electronics Injection Valvetrain Power Electronics EMEA Electronics Power CV Electronics Electronics Diesel CV Fuel Injection Valvetrain AMERICAS CV Fuel Injection CV Gas Di
Slide 17: Long-Term Financial Outlook
Long-Term Financial Outlook Long-Term Targets1 Key Considerations Revenue, operating margin 2017 - 2020 4-6% GoM2 • Relevant portfolio well positioned for all propulsion technologies 2-3% ~$6B GoM2 • Optimization of one time separation, stand-alone costs ~$5B Up ~$4.5B 2020 & Beyond 70-90 Up bps • E
Slide 18: Operating Cash Flow Outlook
Operating Cash Flow Outlook Operating Cash Flow1 Key Considerations Spin-off inefficiencies roll-off and normalize over the next 3 years ~10% 2 CAGR Operational performance driven by: • Above-market revenue growth ~$0.7B • Margin improvement driven by material and manufacturing performance ~$0.4B •
Slide 19: Capital Structure and Deployment
Capital Structure and Deployment • Targeting 5-6% of sales Capital • Investments to support disciplined organic growth Expenditures • Continued footprint optimization, improving capacity utilization and efficiency • Maintain strong balance sheet; term loan provides flexibility Debt Service • Conserv
Slide 20: Summary
Summary COMPREHENSIVE PORTFOLIO FOR TODAY AND TOMORROW Leader in electrification, ICE, and software solutions DELPHI BALANCED BUSINESS Well balanced across end markets, regions, and customers TECHNOLOGIES INDUSTRY LEADING COST STRUCTURE DLPH Leading manufacturing footprint; engineers close to custom
Slide 21: Appendix: Delphi Technologies PLC Historical Results
Appendix: Delphi Technologies PLC Historical Results
Slide 22: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2016 2015 2014 Net income attributable to Delphi Technologies $236 $272 $306 Interest expense $1 $3 $4 Other expense (income), net $1 $2 ($2) Income tax expense $50 $92 $97 Equity loss, net of tax - - $1 Net income attributable to noncontrolling interest $3
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