Aptiv Plc · NYSE:APTV
Aptiv — Barclays Global Automotive Conference 2017
16 slides from Aptiv's conference presentation, Nov 15, 2017
Slide 1: Barclays Global Automotive Conference
November 15, 2017 Barclays Global Automotive Conference Joe Massaro Chief Financial Officer and Senior Vice President
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: Today's Discussion
Today’s Discussion APTIV Powertrain Spin Initial Debt Financing Investor Conference Declaration Record Distribution Date / Announcement Form 10 Filing Complete Naming & Frameworks Date Date Regular Way Trading May Jun Sep Sep Nov Nov Dec 3 9 15 27 13 22 4/5 WELL POSITIONED TO • Leading portfolio ali
Slide 4: Business Model
Business Model LEADING PORTFOLIO ALIGNED TO GLOBAL MEGATRENDS SAFE GREEN CONNECTED A FUTURE WITH ZERO ACCIDENTS A FUTURE WITH ZERO EMISSIONS A FUTURE WITH SEAMLESS CONNECTIVITY BUILT ON A FOUNDATION OF: WITH A CONSISTENT MANAGEMENT PHILOSOPHY INNOVATION DISCIPLINED REVENUE GROWTH • 15,000 scientists
Slide 5: Aptiv Vision: Enabling Smart Mobility Solutions
Aptiv Vision: Enabling Smart Mobility Solutions CONNECTED SERVICES BRAIN NERVOUS SYSTEM SYSTEMS INTEGRATION Software Enabled Vehicle Features FEATURES AND High Speed Sensing and Networking CONTENT Active Safety and Infotainment and Data and Power OTA and Vehicle Data and Services PLATFORMS Sensing A
Slide 6: Business Overview
Business Overview Sales ($ billions), LONG TERM TARGETS Pro forma Op Margin • Core competencies positioning Aptiv to enable 5-7% $17+ GROWING future mobility solutions $15+ GoM1 ADVANCED 4-6% • Expanding resources and footprint in global GoM1 CAPABILITIES ~$12.5 technology hubs to capitalize on oppo
Slide 7: Segment Overview
Segment Overview EEA: Electrical / Electronic Architecture E&S: Electronics & Safety Sales, ($ billions) Sales, ($ billions) 3-4% Connected Services | $20B Market GoM1 Cable Management | $1.5B Market 10%+ 1 Data acquisition, edge processing and analytics GoM $9.2B Cable ties, mounts and routing Acti
Slide 8: Pace Of Change Is Accelerating
Pace Of Change Is Accelerating IPO Today 2010 2015 2020 2025 ACTIVE AUTONOMOUS SAFE SAFETY DRIVING ELECTRIFIED ELECTRIFIED GREEN VEHICES VEHICES SOFTWARE SMARTPHONE CLOUD CONNECTED DEFINED INTEGRATION CONNECTIVITY PLATFORM TRADITIONAL AND NEW OEMs TRADITIONAL AND NEW OEMs END MARKETS TRADITIONAL OEM
Slide 9: Smart Mobility Solutions Portfolio
Smart Mobility Solutions Portfolio SOLUTION SOFTWARE HARDWARE DATA & POWER CENTRAL CONNECTED DISTRIBUTION COMPUTE SERVICES Value of today’s DATA SENSOR INFOTAINMENT ACTIVE ARTIFICIAL MONITORING solutions increasingly PROCESSING FUSION SAFETY INTELLIGENCE AND CONTROL software driven Heritage in elect
Slide 10: Key Growth Businesses Gaining Scale
Key Growth Businesses Gaining Scale Active Safety High Voltage Electrification Infotainment & User Experience • ADAS and autonomous systems • Smart vehicle architecture • Advanced software and user experience • Scalable software and compute platforms • Electrical centers and routing channels • Diffe
Slide 11: New Addressable Markets
New Addressable Markets Automated Driving Connected Services Adjacent Markets • Active safety leading to autonomous driving • Greater connectivity enabling new value creation • Expanding Engineered Components Portfolio • Accelerating speed to market, data monetization • OEM, Fleet Services and end u
Slide 12: Unlocking Next Generation Features
Unlocking Next Generation Features AUDI A8: FIRST LEVEL 3 PARTNER OF CHOICE ACROSS MULTIPLE AUTOMATED DRIVING SYSTEM AUTOMATED DRIVING PARTNERSHIPS VOLVO 2020 INTEGRATED COCKPIT CONTROLLER SMART CITY PILOTS AND CONNECTED ENABLING ADVANCED USER EXPERIENCE SERVICES LEADING TO DATA MONITIZATION Deliver
Slide 13: Investing For Growth And Margin Expansion
Investing For Growth And Margin Expansion Engineering Spend Capital Expenditures 2017 Breakeven Summary Advanced Engineering Supports Growth Efficient Deployment Flexible Operating Model ($ billions) Production volume decline vs. today’s levels 1.1 Cost Savings / Advanced Other 25% Actual Breakeven
Slide 14: Capital Allocation Upside
Capital Allocation Upside Operating Cash Flow1 Priorities ($ billions) Maintain investment grade ratings Organic re-investment to drive growth and increase returns ~12% 2 Accelerating M&A to capitalize on new mobility opportunities CAGR Pay a competitive dividend, while returning excess cash
Slide 15: Aptiv Investment Thesis
Aptiv Investment Thesis Today APTIV 2017 2022 GROWTH • Stable underlying market growth ABOVE • Relevant portfolio aligned to safe, green and connected provides tailwind for growth MARKET MARGIN • Relentless focus on cost management, productivity and continuous improvement EXPANSION • Key growth busi
Slide 16: Delphi
DELPHI Innovation for the Real World