Sensata Technologies Holding Plc · NYSE:ST

Sensata Technologies — Investor Day (December 2017)

13 slides from Sensata Technologies's investor day presentation, Dec 12, 2017

  1. Slide 1: 2017 Investor Day

    2017 InvestorDay & New York City | December 12, 2017 ¢ “eses' °s?° Sensata Technologies

  2. Slide 2: Driving World-Class Operational Performance to Sustain Industry-Leading Margins

    DRIVING WORLD-CLASS OPERATIONAL PERFORMANCE TO SUSTAIN INDUSTRY–LEADING MARGINS Charles Kirol SVP Global Operations

  3. Slide 3: Operational leverage – Sensata's formula

    Operational leverage – Sensata’s formula  Highly Variable Cost Structure And Nimble Manufacturing Operations  Continuous Cost and Quality Improvements through Sourcing & Design-Driven Actions  “Clean Sheet” Approach to Optimize Supply Chain Network Annually  Relentless Focus on Throughput and Ap

  4. Slide 4: We have significant scale and flexibility

    We have significant scale and flexibility 17,000+ 17,000+ employees unique products in 15 countries 2+ million 1.3+ billion square feet of units shipped facilities capacity annually 12 >550 major manufacturing manufacturing sites around the globe lines SENSATA 2017 INVESTOR DAY 4

  5. Slide 5: Operational initiatives are key drivers of our gross margin expansion

    Operational initiatives are key drivers of our gross margin expansion ADJUSTED GROSS MARGIN EXPANSION 120 bps 36.1% • Gross margin improvement despite step-up in cost of engineering and FX headwinds 35.5% • Operational savings expected to drive meaningful gross margin expansion in FY-18 34.9% Headwi

  6. Slide 6: Sensata's Productivity Pipeline

    Productivity planning and resource optimization across businesses, operations and engineering allows for better execution annually Sensata’s Productivity Pipeline SENSATA 2017 INVESTOR DAY 6

  7. Slide 7: Operating in low-cost countries with low fixed costs creates a structural advantage

    Operating in low-cost countries with low fixed costs creates a structural advantage and allows us to adapt quickly to demand FIXED COSTS AS A % OF COGS OPERATIONAL LEVERS 100% VARIABLE LOW OVERHEAD COST STRUCTURE 90% of overhead in low-cost countries  LOW-COST COUNTRIES  HIGH-COST COUNTRIES Sensat

  8. Slide 8: Driving lower material and product costs is a key part of our culture

    Driving lower material and product costs is a key part of our culture and operating discipline BEST COST SOURCING SAVINGS ($M) DESIGN-DRIVEN COST REDUCTION SAVINGS ($M) 2015 2016 2017 2015 2016 2017 Core Acquisitions Core Acquisitions OPERATIONAL LEVERS OPERATIONAL LEVERS • Global Project Productivi

  9. Slide 9: Design-driven cost savings case study: auto pressure transducer

    Design-driven cost savings case study: auto pressure transducer AP4 – 4th Gen APT ORIGINAL REDESIGN TARGET: > 10% Cost Savings 18 sec (Exclusive of Capex Investment) 14 sec CYCLE TIME CYCLE TIME  Downsize sense element 1.0  Higher performing ASIC 0.9 INDEX COST INDEX COST  Improved fault detectio

  10. Slide 10: Supply chain footprint optimization is an ongoing process

    Supply chain footprint optimization is an ongoing process that produces better cost and delivery for our customers BEST COST PRODUCTION (BCP) BEST DELIVERED COST (BDC) SITE CONSOLIDATIONS Relocation of MFG lines from a Addition of new capacity lines or Consolidation of MFG sites high cost country (H

  11. Slide 11: Low capital investment profile and stringent customer requirements

    Low capital investment profile and stringent customer requirements demand a process that delivers significant annual throughput improvements Despite significant demands, operational levers allow Sensata to maintain CAPEX investments in the target range of 4% – 5% of revenue OPERATIONAL LEVERS TO MAI

  12. Slide 12: Acquisition case study: TPMS value creation through multiple operational levers

    Acquisition case study: TPMS value creation through multiple operational levers OPERATIONAL LEVERS VALUE GENERATED A 2016: China new line start-up serving Asia 1 BEST COST PRODUCTION B A demand B 2017: Springfield to Mexico move serving Americas demand 2 KAIZEN: YIELD & 2017: 21% increase in through

  13. Slide 13: Key Messages

    Key Messages  Our integrated approach to global operations differentiates Sensata from competitors and peers  We have a continuous improvement focus on driving operational efficiency and improving core product margins  Our operational model enables us to significantly improve the margins of acqui

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