Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q4 2016 Earnings Presentation
29 slides from Aptiv's earnings presentation, Feb 2, 2017
Slide 1: Fourth quarter 2016 earnings call
February 2, 2017 Fourth quarter 2016 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 • Q4 2016 summary Kevin Clark Chief Executive Officer • Strategic update Financial overview • Q4 2016 results Joe Massaro Chief Financial Officer • 2017 guidance Q&A Kevin Clark / Joe Massaro 3
Slide 4: Operations overview
Operations overview Kevin Clark President and Chief Executive Officer
Slide 5: Q4 and 2016 highlights
Q4 and 2016 highlights Revenue growth Operating income Earnings per share $4.3B $16.7B $0.6B $2.2B $1.83 $6.28 Q4 Up 10% 2016 Up 8% Q4 Up 20% 2016 Up 13% Q4 Up 32% 2016 Up 20% • Advanced technologies drive higher growth across the portfolio • New business bookings of $26B for the year driven by larg
Slide 6: CES highlights
CES highlights 3,000 total “The best over 230 drives visitors automated drive including we’ve ever 8 experienced.” – Automotive News VIP events Over 1,800 customers from over 60 companies 8 demo “If CES gave an award vehicles: for the best in show, 4 Automated Delphi would win it.” 2 V2X – Major US
Slide 7: Power of data analytics
Power of data analytics Real world application 4x7 ~1,400 ~99% 4 vehicles over miles traveled in miles traveled in real time vehicle fuel economy 7 days at CES live Las Vegas Automated mode performance improvement conditions tracking Foundation • Leverages real-time data and the cloud • Scalable veh
Slide 8: Bookings growth
Bookings growth Continued bookings growth 2011 - 2016 cumulative bookings ($ billions) Infotainment & Active Safety User Experience $26 $26 $25 $24 $24 $1.4B $2.9B $22 2016 2016 $21 $21 bookings bookings $20 $20 $17 ~$5B ~$13B Vehicle Electrification GDi & Valve Train $2.1B $1.9B 2016 2016 bookings
Slide 9: Select fourth quarter bookings
Select fourth quarter bookings E/EA E&S Powertrain DEEDS Infotainment GDi North American OEM >$1B >$1B >$0.5B lifetime lifetime lifetime revenue revenue revenue Strong wins in every business 9
Slide 10: Delivering technology innovation
Delivering technology innovation Centralized computing Autonomous capabilities Intelligent electrification Leader in centralized computing platforms Industry-leading autonomous capabilities Intelligent electrification 48V solutions • Scalable domain integration • CSLP platform partnership with MBLY
Slide 11: Better positioned for the long-term
Better positioned for the long-term Portfolio Advanced Strategic Software and evolution engineering partnerships services Investing for Strategic acquisitions growth and divestitures Increasing to ~20% of CSLP collaboration 25% increase in align with industry total engineering with Mobileye and Inte
Slide 12: Financial overview
Financial overview Joe Massaro Chief Financial Officer and Senior Vice President
Slide 13: Q4 2016 vs. Q4 2015
Q4 2016 vs. Q4 2015 ($ millions, except per share amounts) Q4 2016 Q4 2015 B/(W) Reported revenue $434 $4,313 $3,879 Adjusted Growth %1 10% EBITDA2 $777 $639 $138 EBITDA margin % 18.0% 16.5% 150 bps Operating income2 $606 $503 $103 Operating margin % 14.1% 13.0% 110 bps Earnings per share2 $0.44 $1.
Slide 14: Revenue growth
Revenue growth Q4 2016 vs. Q4 2015 Year-over-year growth by region ($ millions) Reported Adjusted1 $190 $4,313 Q4 2016 Q4 2016 $407 $3,879 Europe 8% 5% ($106) ($57) N. America 10% 9% Asia 16% 16% S. America 34% 7% Total 11% 10% Q4 2015 FX/ Price Sales Acquisitions/ Q4 2016 commodities growth divesti
Slide 15: Operating income growth
Operating income growth Q4 2016 vs. Q4 2015 Highlights ($ millions) $33 $6 $606 • Strong volume flow through $136 14.1% $503 13.0% • 1.5% annual price downs ($57) ($15) • Accretive M&A activity • Improved performance • Ongoing restructuring benefits Q4 2015 Price Performance/ Sales Acq/div FX/ Q4 20
Slide 16: Earnings per share
Earnings per share Q4 2016 vs. Q4 2015 $0.06 $0.02 $0.01 $1.83 $0.35 $1.39 Q4 20151 Operating2 Share FX/ Taxes/ Q4 20161 income repurchases commodities other Strong EPS growth driven primarily by operational performance 1 Adjusted for restructuring and other special items; see Appendix for detail an
Slide 17: Segment financials
Segment financials E/EA Powertrain E&S Revenue Mechatronics revenue $2,400 $1,146 $806 $1,114 $2,117 $686 $743 $613 7% 6% 23% Q4 2016 Q4 2016 Q4 2016 adjusted adjusted adjusted growth1 growth1 growth1 Q4 2015 Q4 2016 Q4 2015 Q4 2016 Q4 2015 Q4 2016 ($ millions) Q4 2015 Q4 2016 Q4 2015 Q4 2016 Q4 201
Slide 18: Full year segment financials
Full year segment financials E/EA Powertrain E&S Revenue $9,316 Mechatronics revenue $4,486 $3,014 $8,180 $4,407 $2,744 $2,729 $2,449 8% 5% 16% CY 2016 CY 2016 CY 2016 adjusted adjusted adjusted growth1 growth1 growth1 2015 2016 2015 2016 2015 2016 ($ millions) 2015 2016 2015 2016 2015 2016 Operatin
Slide 19: 2016 vs. 2015
2016 vs. 2015 ($ millions, except per share amounts) 2016 2015 B/(W) Reported revenue $1,496 $16,661 $15,165 Adjusted Growth %1 8% EBITDA2 $2,897 $2,495 $402 EBITDA margin % 17.4% 16.5% 90 bps Operating income2 $2,223 $1,971 $252 Operating margin % 13.3% 13.0% 30 bps Earnings per share2 $1.06 $6.28
Slide 20: 2017 guidance
2017 guidance ($ millions, except per share amounts) 2016 pro forma1 2017 Q1 2017 Reported revenue $16,376 $16,500 - $16,900 $4,050 - $4,150 Adjusted growth2 4% - 6% 5% - 7% Operating income3 $2,136 $2,185 - $2,285 $490 - $520 Operating margin 13.0% 13.3% - 13.5% ~12.3% EPS3 $6.01 $6.40 - $6.70 $1.4
Slide 21: Wrap up
Wrap up • Delivered continued outperformance in 2016 – Strong sales growth above market and 30 bps of margin expansion yielding 20% EPS growth – Continued traction on portfolio rotation, strengthening position to leverage secular growth trends • Confident in 2017 outlook – Mid-single digit organic r
Slide 22: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 23: Appendix
Appendix DELPHI
Slide 24: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q4 2016 Q4 2015 2016 2015 Net income attributable to Delphi $281 $192 $1,257 $1,450 Interest expense $33 $35 $156 $127 Other expense, net $302 $21 $366 $88 Income tax expense $26 $61 $242 $263 Equity income, net of tax ($12) ($6) ($35) ($16) Loss (income) f
Slide 25: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q4 2016 Q4 2015 2016 2015 Net income attributable to Delphi $281 $192 $1,257 $1,450 Interest expense $33 $35 $156 $127 Other expense, net $302 $21 $366 $88 Income tax expense $26 $61 $242 $263 Equity income, net of tax ($12) ($6) ($35) ($16) Loss (income) f
Slide 26: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions, except per share amounts) Q4 2016 Q4 2015 2016 2015 Net income attributable to Delphi $281 $192 $1,257 $1,450 Loss (income) from discontinued operations attributable to Delphi, net of tax - $7 ($105) ($262) Income from continuing operations attributable to
Slide 27: Shares outstanding
Shares outstanding (millions) Q4 2016 Q4 2015 2016 2015 Weighted average ordinary shares outstanding, basic 270.38 279.29 273.02 285.20 Dilutive shares related to RSUs 1.26 2.35 0.68 1.44 Weighted average ordinary shares outstanding, including dilutive shares 271.64 281.64 273.70 286.64 27
Slide 28: Mechatronics financial detail
Mechatronics financial detail ($ millions, except per share amounts) Delphi – Reported Q1 2016 Q2 2016 Q3 2016 Q4 2016 2015 2016 Revenue $4,051 $4,206 $4,091 $4,313 $15,165 $16,661 Adjusted operating income1 $509 $577 $531 $606 $1,971 $2,223 Adjusted operating margin 12.6% 13.7% 13.0% 14.1% 13.0% 13
Slide 29: Power Electronics change in segment reporting
Power Electronics change in segment reporting ($ millions) Power Electronics Q1 2016 Q2 2016 Q3 2016 Q4 2016 2015 2016 Revenue $23 $28 $33 $35 $30 $119 Adjusted operating (loss) income1 ($6) ($4) ($7) $4 ($29) ($13) Note: Power Electronics reclassified for all prior periods from Electronics & Safety