Sensata Technologies Holding Plc · NYSE:ST
Sensata Technologies — Investor Day (December 2017)
30 slides from Sensata Technologies's investor day presentation, Dec 12, 2017
Slide 1: 2017 Investor Day
2017 InvestorDay & New York City | December 12, 2017 ¢ “eses' °s?° Sensata Technologies
Slide 2: Driving Growth in the Heavy Vehicle & Off Road, Industrial and Aerospace Markets
DRIVING GROWTH IN THE HEAVY VEHICLE & OFF ROAD, INDUSTRIAL AND AEROSPACE MARKETS Jeffrey Cote EVP Sensing Solutions and Chief Operating Officer
Slide 3: Business overview
Business overview We have increased our exposure to attractive industrial and heavy vehicle, off-road markets to strengthen Sensata’s overall business model We focus on mission-critical, hard-to-do applications where we can gain leadership positions We are leveraging our scale with existing an
Slide 4: We serve a large and growing market with a diversified portfolio
We serve a large and growing market with a diversified portfolio 2017E Revenue ($M) $800M ~$690M $600M ~$470M $400M $200M ~$150M $M Heavy Vehicle, Off-Road Industrial Aerospace Key Market • On-Road • Building solutions • Commercial Segments • Construction • Appliance & Industrial • Military • Agricu
Slide 5: We have a significant opportunity to expand in these markets
We have a significant opportunity to expand in these markets HEAVY VEHICLE, OFF-ROAD INDUSTRIAL AEROSPACE ~$2B ~$5B ~$1.3B Served Market Served Market Served Market 7% 22% 50% ~$4 Billion ~$70 Billion ~$6 Billion Total Available Market* Total Available Market* Total Available Market* *SOURCE: Sensat
Slide 6: We are leveraging our products and capabilities across multiple business units
We are leveraging our products and capabilities across multiple business units to serve our diverse customer base SENSING PARAMETER HEAVY VEHICLE, OFF-ROAD INDUSTRIAL AEROSPACE Pressure ✓ ✓ ✓ Temperature ✓ ✓ ✓ Position ✓ ✓ ✓ Wireless ✓ Electrical Protection ✓ ✓ ✓ Top 10 Customers as % of Revenue T
Slide 7: We have a broad solution set in applications for construction and agricultural equipment
We have a broad solution set in applications for… Construction and Agricultural Equipment Engine Cabin Comfort • Air Intake and Filter • Air Conditioning • Boost, Compressor and Turbine • Cabin Air Filter • Low Pressure Fuel Filter & Pump • High Pressure Fuel Rail Transmission • Cam and Crank • Pres
Slide 8: We have a broad solution set in applications for heavy and medium-duty trucks
We have a broad solution set in applications for… Heavy and Medium-Duty Trucks Engine Cabin Comfort • Air Intake and Filter • Air Conditioning • Boost, Compressor and Turbine • Cabin Air Filter • Low Pressure Fuel Filter & Pump • High Pressure Fuel Rail Transmission • Cam and Crank • Pressure • Cran
Slide 9: We have a broad solution set in applications for material handling
We have a broad solution set in applications for… Material Handling Machine Control Stability Control • Primary Controls • Tilt Control (Joysticks, Grips, Displays) • Load/Weight Controls • Buzzer & Fan Control • Tire Monitoring Systems • Steering Position • Tire Angle Position • Pedal Position • St
Slide 10: Our overall growth will come from five key drivers
Our overall growth will come from five key drivers Next 3 Years Long-Term CLEAN & CHINA ELECTRIFICATION AUTONOMY SMART & EFFICIENT Sustained Tightening efficiency Enabling autonomy CONNECTED Secular need for modernization of mandates make and operational Connected cleaner, more infrastructure electr
Slide 11: Clean & Efficient
CLEAN & EFFICIENT
Slide 12: HVOR: New Market for Tire Pressure Monitoring Systems
HVOR: New Market for Tire Pressure Monitoring Systems Tire pressure monitoring systems for on-road market is a $80M+ SAM opportunity DRIVER OPPORTUNITY • Commercial fleets are prioritizing TPMS to drive fuel efficiency • Industry leaders & premium brands are choosing our solution to drive and safety
Slide 13: Industrial: Europe 20-20-20 Regulation
INDUSTRIAL: Europe 20-20-20 Regulation European regulations are accelerating use of sensors in order to improve efficiency & meet climate targets - $40M+ SAM opportunity Boiler & Pump 25% 28% 32% 36% 41% 50% sensor adoption* 2017 2018 2019 2020 2021 2022 DRIVER OPPORTUNITY EU 20-20-20 Key customers:
Slide 14: Industrial: DeltaTech and CST Leveraged in Material Handling
INDUSTRIAL: DeltaTech and CST Leveraged in Material Handling We have developed a strong position in the Material Handling market & are driving higher accuracy & efficiency – $225M+ SAM opportunity EXISTING ACQUISITIONS in 2014 and 2015 NEW MARKET OPPORTUNITY Capability • Pressure • Joysticks • Rotar
Slide 15: Aerospace: Transformed Market Position
AEROSPACE: Transformed Market Position We have transformed our business to become a more strategic supplier to the Aerospace market ACQUISITION CONTENT MARKET POSITION RESULTING OPPORTUNITY Circuit Breakers SENSATA #2 COMPANY ALL Market SAM* ($B) OTHERS $1.3B 46% share and known for ~3x Operat
Slide 16: Aerospace: Scale Capability to New End Markets
AEROSPACE: Scale Capability to New End Markets Leveraging Sensata’s global scale and capabilities opens new market potential for Aerospace PRESSURE SENSING TEMPERATURE SENSING Enabling Capabilities • Automotive, HVOR and Industrial • Automotive, HVOR and Industrial Pressure Sensing Temperature Sensi
Slide 17: China
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Slide 18: HVOR: China Regulation & Technology Changes
HVOR: China Regulation & Technology Changes SAM opportunity of $140M+ in China as commercial truck OEMs prepare for the next phase of emissions regulations National On-Road NS III NS IV NS V NS VI Emissions* 2012 2014 2016 2018 2020 2022 DRIVER OPPORTUNITY National 6 Reg. Products serving opportunit
Slide 19: Industrial: China Coal to Electricity Transition
INDUSTRIAL: China Coal to Electricity Transition Need for higher efficiency and cleaner environment in China is driving transition from heating with coal to electricity – $10M+ SAM High Efficient Heat 8,000 12,000 180,000 240,000 320,000 400,000 Pump Shipments 2017 2018 2019 2020 2021 2022 Estimate
Slide 20: Electrification
ELECTRIFICATION
Slide 21: Industrial: New, Growing Applications
INDUSTRIAL: New, Growing Applications Our electrical protection business is capitalizing on a wave of new product opportunities Protection capabilities span multiple areas influenced by electrification: OUTDOOR POWER PROTECTION E-BIKES 5% $24.3B Gas Powered Equipment Electric/Battery Tools CAGR • Gl
Slide 22: Autonomy
AUTONOMY
Slide 23: HVOR: Steer-by-Wire in Off-Road
HVOR: Steer-by-Wire in Off-Road Steer-by-Wire represents a $100M+ market opportunity as Construction & Agriculture equipment advances toward worksite automation DRIVER OPPORTUNITY The journey towards autonomy requires converting from mechanical hydraulic to electro-hydraulic steering. Conventional S
Slide 24: Smart & Connected
SMART & CONNECTED
Slide 25: HVOR: Smart, Connected Truck & Trailers
HVOR: Smart, Connected Truck &Trailers We are developing smart, connected sensors to enable actionable insights for commercial vehicle operators DRIVER OPPORTUNITY • Enables access to new data sources that are costly and difficult to reach with traditional wire harnesses • Provides secure and wirele
Slide 26: Early innovation builds competitive advantage
Early innovation builds competitive advantage Sensata is developing technology to enable next generation innovation AEROSPACE Rugged, Extreme Environment Engine Sensing The next generation of turbofan engines for large commercial jets will be cleaner, more electrical, and operate at higher temperatu
Slide 27: Key messages
Key messages We are capitalizing on expanded market opportunities, leveraging core capabilities and those gained from acquisitions, and targeting key disruptive applications We are deploying resources against the industry megatrends of autonomy, electrification and smart, connected sensors We
Slide 28: Appendix
APPENDIX
Slide 29: We have a broad solution set in applications for buildings and households
We have a broad solution set in applications for… Buildings and Households Building Equipment Outdoor • HVAC • Lighting • Heat Pumps • Compressor • Water Pumps • Generator • Security/Access Control • Pool System • Lighting Systems • Workshop Power • Radiant Underfloor Heating Tools / Batteries • Rec
Slide 30: We have a broad solution set in applications for aerospace and defense
We have a broad solution set in applications for… Aerospace and Defense Flight Controls Waste and Water Systems • Yaw Damper • Drain Masts Landing Gear, Wheels and Brakes • Rudder • Lavatory Sensor • Brake by Wire • Elevators • Landing Gear Feedback • Leading Edge Electrical Protection • Pressure/Te