Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Deutsche Bank Global Auto Industry Conference 2016
18 slides from Aptiv's conference presentation, Jan 12, 2016
Slide 1: Deutsche Bank Global Auto Industry Conference
January 12, 2016 Deutsche Bank Global Auto Industry Conference
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: 2015 in review
2015 in review 2015 highlights 2015 revenue1 $15.0B • Strong top-line expansion and growth over market 2015 operating margin1 13% • Continued robust bookings growth • Flexed cost structure given macro environment 2015 cash returned2 $1.5B • Expanded operating margins by 60 bps1 Engineers and scienti
Slide 4: Robust operating model
Robust operating model Revenue impacted by divestitures and macro environment Strong operating performance1 ($ millions) $17,023 $2,018 ~$800 $15,035 ~$200 $1,955 (~$1,500) (~$100) 11.9% (~$170) 13.0% (~$1,300) 2014 Thermal FX/ Price/ 2015E 2014 Thermal FX/ Volume/ 2015E revenue commodities volume r
Slide 5: Strategic imperatives
Strategic imperatives • Enhance portfolio of market relevant products Disciplined • Continue rotation to high-growth products and regions revenue growth • Further diversify customer base and platform mix Margin • Continue footprint rotation to best cost countries expansion • Increase leverage in ope
Slide 6: 2016 Consumer Electronics Show
2016 Consumer Electronics Show Showcased advanced technology portfolio 6
Slide 7: Strong revenue growth
Strong revenue growth Continued bookings growth Revenue growth1 ($ billions) ($ millions) Revenue at constant foreign exchange rates ~$26 $24 $24 $16,600 - $17,000 $22 $20 $14,887 $13,901 $18 $13,107 2010 2011 2012 2013 2014 2015E 2013 2014 2015E 2016E Bookings growth translating to acceleration in
Slide 8: Expanding margins and EPS
Expanding margins and EPS Operating margin expansion1 Earnings per share growth1 2016 year-over-year increase $0.55 organic growth $0.15 HellermannTyton acquisition $0.05 share repurchases $5.80 - $6.10 13.3% - 13.6% 13.0% $5.20 12.4% $4.94 11.8% $4.24 2013 2014 2015E 2016E 2013 2014 2015E 2016E Con
Slide 9: Capital allocation strategy remains unchanged
Capital allocation strategy remains unchanged Capital deployment Acquisition guidelines • Strengthen product portfolio Strategic M&A and • Diversify customer and regional mix share repurchases ~45-55% • Solid operating systems Dividends Operating • Strong management team and cultural fit ~10-15% • H
Slide 10: Dividend increase
Dividend increase • Increase annual dividend payout from $1.00 to $1.16 per share – Increase of 16% – Represents ~15% of our 2016 operating cash flow – Continue to deploy balance of cash flow to opportunistic share repurchases and value-accretive M&A Drives additional shareholder value 10
Slide 11: Capital deployment track record
Capital deployment track record • Next generation cylinder deactivation software Tula • Technology improves fuel efficiency and reduces emissions investment • Broad applicability across engine sizes and types • Developing affordable LiDAR sensors Quanergy • State-of-the-art solid state chipset inves
Slide 12: 2016 guidance assumptions
2016 guidance assumptions • Global market growth ~2% – North America ~3% – Europe ~2% – China ~4% – South America (~10%) • Euro 1.10 • Share repurchases ~$400M Source: December 2015 IHS Automotive and Delphi internal estimates 12 Note: Includes medium/heavy duty trucks
Slide 13: 2016 guidance
2016 guidance (millions, except per share amounts) 2016 outlook Reported revenue $16,600 - $17,000 Organic growth1 % 8% - 10% Operating income2 $2,200 - $2,300 Operating margin 13.3% - 13.6% EPS2 $5.80 - $6.10 Cash flow before financing $1,200 Tax rate 17% Continued revenue and earnings growth 1 Ave
Slide 14: Why Delphi will outperform
Why Delphi will outperform Well positioned in a transformed and growing industry Global scale Industry-leading cost structure Strong margin expansion and cash flow generation Balanced and disciplined capital allocation Delivering industry-leading shareholder returns 14
Slide 15: The future. Now.
sthe future. Now. DELPHI Innovation for the Real World
Slide 16: Appendix
Appendix DELPHI
Slide 17: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) 2014 2013 Net income attributable to Delphi $1,351 $1,212 Interest expense $135 $143 Other expense (income), net $8 $18 Income tax expense $255 $240 Equity income, net of tax ($20) ($15) Income from discontinued operations, net of tax ($60) ($60) Net income
Slide 18: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) 2014 2013 Net income attributable to Delphi $1,351 $1,212 Income from discontinued operations attributable to Delphi, net of tax ($42) ($42) Income from continuing operations attributable to Delphi $1,309 $1,170 Adjusting items: Restructuring $140 $137 Othe
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