Aptiv Plc · NYSE:APTV
Aptiv — CECP CEO Investor Forum 2017
25 slides from Aptiv's conference presentation, Sep 19, 2017
Slide 1: CECP CEO Investor Forum
CECP CEO Investor Forum Kevin Clark President and Chief Executive Officer
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: Delphi Overview
Delphi Overview 15 Major Technical Centers 46 126 20,000 166,000 Countries Manufacturing Sites Engineers, Scientists Employees and Technicians $1.5 billion $16.7 billion $25.6 billion Annual Engineering 2016 Revenue 2016 Bookings Investment Figures from Delphi 2016 Annual Report 3
Slide 4: Challenges Increasing
Challenges Increasing 2050 +70%population +40% freight 5x emissions 4x cost 3x travel time Megatrends create new challenges for urban mobility Source: “Autonomous Vehicles and Cities: Document for Discussion” by The Boston Consulting Group 4 Statistics are based on urban area environments
Slide 5: Delphi's Strong, Consistent Vision And Strategy
Delphi’s Strong, Consistent Vision And Strategy Identity Vision Strategy Technology company focused on mobility solutions Be the partner of choice by providing our Develop advanced technologies that make the world customers with intelligent mobility solutions more safe, green, and connected, and tha
Slide 6: Aligned To Safe, Green And Connected Megatrends
Aligned To Safe, Green And Connected Megatrends 2010 2015 2020 2025 Assisted Conditional Safety Fully automation automation eco-system autonomous Increasing levels of Green Technologies Increasing Smartphone Full cloud Internet personalization integration connectivity of things Portfolio aligns to k
Slide 7: Safety Vision
Safety Vision Employ state-of-the-art technologies to enable the Mission safest and most accessible mobility experience possible Utilizing advanced technology and software and systems integration capabilities, Delphi develops Technology innovative Active Safety and Autonomous Driving systems A socie
Slide 8: Green Vision
Green Vision Ensure the world of tomorrow is even better than Mission today; blue skies, clean air and water, healthy cities and green forests Employ advanced combustion and electrification Technology technologies and systems optimization knowledge to enable advanced propulsion systems ZERO emission
Slide 9: Connected Vision
Connected Vision Build on Delphi’s heritage of telematics, navigation, Mission infotainment and user experience to enable safe, productive and enjoyable journeys Apply ubiquitous connectivity, software and data management solutions to effortlessly connect Technology passengers to the vehicle and the
Slide 10: Business Segments
Business Segments Electrical/Electronic Electronics Powertrain Architecture & Safety Gasoline Cable Active Safety, Engine Management Electronic Aftermarket Management Electrical Controls Distribution $9.3B1 Systems $2.7B1 $4.5B1 Power Connection Electronics Systems Software Diesel Engine Infotainmen
Slide 11: Performance Based Executive Compensation
Performance Based Executive Compensation Commitment to Pay-For-Performance Measurement Criteria Aligning with shareholder interests • 90% of CEO target comp performance based 2016 CEO Targets 2016 NEO Targets Annual • 78% of NEO target comp performance based Net Income = 50% RONA = 50% Compensation
Slide 12: Corporate Social Responsibility
Corporate Social Responsibility People People Product Planet Strategic suppliers certified Global water consumption by ISO 14001 Kiloliters per person Goal: 100% certified required for all new suppliers 95% 20.8 19.7 16.9 15.4 of Delphi employees 95% 95% completed online 93% ethics training in 2015
Slide 13: Strong Execution Track Record
Strong Execution Track Record Revenue Operating margins Cash flow RONA $ billions % of sales2 Operating cash flow, $ billions 5% CAGR1 ~500bps 2x increase ~11% $17B increase above peers 13.4% $1.9B 38.2% $11.8B 27.0% 8.5% $0.9B 2010 2017E 2010 2017E 2010 2017E Peer Average DLPH 2016 2016 RONA RONA S
Slide 14: Execution Track Record: Capital Deployment
Execution Track Record: Capital Deployment IPO Today 2010 2017 37% | CAPITAL EXPENDITURES • Supporting continued organic growth, new programs • Consistent spend at ~5% of sales 30% | Mergers & Acquisitions • Disciplined reinvestment in business to drive growth and increase returns Delphi • Strategic
Slide 15: Shareholder Return Outperformance
Shareholder Return Outperformance YTD 3 Year Since IPO Total Shareholder Return 403% 50% 52% 38% 34% 231% 18% 132% 13% S&P 500 Peers DLPH S&P 500 Peers DLPH S&P 500 Peers DLPH Delphi outperforms market and peers Peer Group includes – Adient, BorgWarner, Tenneco, Autoliv, Lear, Continental, Magna, Va
Slide 16: Pace Of Change Accelerating
Pace Of Change 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 & NEW OEMs TRADITIONAL & NEW OEMs END MARKETS TRADITIONAL OEMs MOBIL
Slide 17: Powertrain Spin: Adapting To Changing Environment
Powertrain Spin: Adapting To Changing Environment Well-positioned to serve customers’ evolving needs Distinct growth drivers and investment rationale Increased alignment to evolving industry trends Cockpit Controllers, Electronics & Displays & Connectivity Electrification Focused capital allocation
Slide 18: Two Well-balanced Portfolios…
Two Well-balanced Portfolios… (FY16 sales1) PRODUCTS CUSTOMERS REGIONS Cockpit Controllers, Ford N. America FCA Displays & Connectivity VW Electrical SGM Asia E/EA Architecture GM PSA and Software, Security $12.0B Geely E&S & Services Daimler $100B+ Hyundai Addressable Europe Engineered Other Market
Slide 19: RemainCo Vision: Enabling Smart Vehicle Architectures
RemainCo Vision: Enabling Smart Vehicle Architectures INTERNET OF THINGS BRAIN NERVOUS SYSTEM SYSTEMS INTEGRATION Software Enabled Vehicle Features FEATURES AND High Speed Sensing and Networking CONTENT Active Safety & Infotainment & Power and Signal OTA and Vehicle Autonomous Systems Data and Servi
Slide 20: Powertrain Vision: Enabling Advanced Vehicle Propulsion
Powertrain Vision: Enabling Advanced Vehicle Propulsion INTERNET OF THINGS PROPULSION MANAGEMENT SOFTWARE & CONTROL SYSTEMS INTEGRATION Optimum Vehicle Efficiency and Driving Experience FEATURES AND Intelligent Propulsion Systems CONTENT Advanced Combustion Fuel Injection Sensors & Actuators Power E
Slide 21: Results Delphi Is Working Towards
Results Delphi Is Working Towards -30% -45% -30% -65% -90% vehicles parking space travel time emissions accidents Smart mobility critical to addressing safe, green and connected megatrends Source: “Autonomous vehicles and cities: Document for discussion” by The Boston Consulting Group 21 Statistics
Slide 22: Delphi 2017 Investor Day
Delphi 2017 Investor Day September 27 Wednesday We look forward to Boston sharing more about Delphi at our upcoming 10AM 2017 Investor Day 3PM 22
Slide 23: DELPHI: Innovation for the Real World
DELPHI Innovation for the Real World
Slide 24: Senior Leadership
Senior Leadership Kevin P. Clark Jerome Dorlack David Paja President and Chief Executive Officer Senior Vice President, President of Delphi Electrical Senior Vice President and President Electronics Electronic Distribution Systems and President, & Safety South America Majdi B. Abulaban Michael Gasse
Slide 25: Board Of Directors
Board Of Directors Rajiv L. Gupta Sean O. Mahoney Chairman of the Board • Former Partner and head of Financial Sponsors Group at Goldman Sachs & Co • Former Chairman and CEO of Rohm and Haas Company • Other directorships: Arconic, Post-bankruptcy Board of Lehman Brothers • Other Directorships: Arcon