Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Investor Day (September 2017)
156 slides from Aptiv's investor day presentation, Sep 27, 2017
Slide 1: Delphi 2017 Investor Conference
Delphi 2017 Investor Conference September 27th, 2017
Slide 2: Welcome
Delphi Automotive PLC Welcome Elena D. Rosman Vice President, Investor Relations
Slide 3: 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 4: Today's Agenda
Today’s Agenda 10:00 11:00 12:00 1:00 2:00 3:00 4:00 5:00 AM AM PM PM PM PM PM PM REMAINCO SPINCO 10:00AM – 1:00PM 1:45PM – 2:45PM LUNCH & TECHNOLOGY DISPLAYS TECHNOLOGY DISPLAYS & RECEPTION 1:00PM – 1:45PM 3:00PM LEADERSHIP Q&A 2:45PM – 3:00PM
Slide 5: Strategic Overview
Delphi Automotive PLC Strategic Overview Kevin P. Clark President and Chief Executive Officer
Slide 6: Evolution Since IPO
Evolution Since IPO IPO Today 2010 2017 GROWTH • Enhanced portfolio around safe, green and connected megatrends “Can they grow faster ABOVE than markets?” • Achieved mid-single digit organic growth MARKET MARGIN “Can they expand • Optimized cost structure; expanded margins almost 500 bps EXPANSION m
Slide 7: Robust Business Model
Robust 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 EXECUTION WITH A CONSISTENT MANAGEMENT PHILOSOPHY INNOVATION DISCIPLINED REVENUE GROWTH • 2
Slide 8: Enhanced Technology Capabilities
Enhanced Technology Capabilities IPO Today 2010 2017 BOLT-ON’S ACQUISITIONS ACCRETIVE TO SHAREHOLDER VALUE ADVANCED TECHNOLOGY STRATEGIC ACQUISITIONS ACCELERATE SPEED TO MARKET AND REVENUE GROWTH STRATEGIC INVESTMENTS COLLABORATION FOR START-UP AGILITY WHILE ACCELERATING COMMERCIALIZATION Industry l
Slide 9: Operational Excellence
Operational Excellence New Launches Material Productivity Engineering Spend More launches, increasing complexity Offsetting price, driving ~5% savings Expanding advanced engineering Gross Productivity, ($ millions) Net Engineering Spend, ($ billions) $1.2 ~15% $1.1 CAGR Advanced Advanced Engineering
Slide 10: "Delphi DNA" Delivers Results…
“Delphi DNA” Delivers Results… Revenue Operating Margins Cash Flow ($ billions) % of sales2 Operating cash flow, ($ billions) 5% CAGR1 ~500 2x bps increase increase $17 $1.9 13.4% $11.8 8.5% $0.9 2010 2017E 2010 2017E 2010 2017E Strategy delivering solid financial performance 1. At constant foreign
Slide 11: … and Rewards Shareholders
… and Rewards Shareholders YTD 3 Year Since IPO Total Shareholder Return2 $28B+ ~$9B ~$11B Shareholder Shareholder Shareholder Value Created2 Value Created2 Value Created2 52% 403% 50% 38% 34% 231% 18% 132% 13% S&P 500 Peers 1 DLPH S&P 500 Peers1 DLPH S&P 500 Peers 1 DLPH Outperforming market and pe
Slide 12: Increasing Need For Software And Systems Integration
Increasing Need For Software And Systems Integration NEW FEATURES & Advanced software enables… FUNCTIONALITY More capable, centralized New features and ACTIVE SAFETY hardware increases functionality increasingly • Automatic emergency braking affordability and delivered through software • RACam / Sen
Slide 13: 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 14: Proactively Addressing Changing Environment
Proactively Addressing Changing Environment Well-positioned to serve customer’s evolving needs Distinct growth drivers and investment rationale Increased alignment to changing industry trends Cockpit controllers, displays, and Electronics & electrification connectivity Focused capital allocation Sof
Slide 15: Powertrain Vision: Enabling Advanced Vehicle Propulsion
Powertrain Vision: Enabling Advanced Vehicle Propulsion INTERNET OF THINGS PROPULSION MANAGEMENT SOFTWARE AND CONTROL SYSTEMS INTEGRATION Optimum Vehicle Efficiency and Driving Experience FEATURES AND Intelligent Propulsion Systems CONTENT Advanced Combustion Fuel Injection Sensors and Actuators Pow
Slide 16: RemainCo Vision: Enabling Smart Mobility Solutions
RemainCo Vision: Enabling Smart Mobility Solutions INTERNET OF THINGS 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 Sensin
Slide 17: Smart Mobility Solutions
Smart Mobility Solutions SOFTWARE OPERATING DEFINED VEHICLE ENVIRONMENT + Seamless integration of the vehicle into the operating environment
Slide 18: Smart Vehicle Architecture Enables Mobility Solutions
Smart Vehicle Architecture Enables Mobility Solutions SMART MOBILITY CREATES THE SOFTWARE & … WHILE OPTIMIZING THE SOLUTIONS HARDWARE FOUNDATION FOR TOTAL SYSTEM TO ALLOW NEW FEATURES AND FUNCTIONS… OEMS TO PAY FOR IT • Functionality • System cost INCREASING MARKET • Size and weight COMPLEXITY EXPEC
Slide 19: RemainCo Smart Mobility Solutions Portfolio
RemainCo Smart Mobility Solutions Portfolio DATA & POWER CENTRAL COMPUTE CONNECTED SERVICES • High speed data networking, power distribution • Active safety and autonomous systems • System health monitoring • Low and high voltage cabling and connectors • Infotainment and user experience • Software /
Slide 20: RemainCo's Role In Smart Mobility
RemainCo’s Role In Smart Mobility TIER 2+ / TECHNOLOGY OEMs …. TECHNOLOGY PROVIDER SILICON & MOBILITY FIRMWARE RemainCo …. PROVIDERS SYSTEMS INTEGRATION APPLICATION SMART DEVELOPERS CITIES …. Technology provider with superior systems integration capabilities
Slide 21: Smart Mobility Architecture Enabling New Markets
Smart Mobility Architecture Enabling New Markets Automated Driving Connected Services $10B Addressable Market $20B+ Addressable Market $- Addressable 2025 $2B 2025 Data Consumers Addressable Market Market • Vehicle as a “sensor” OEMs and Smart Cities • Meaningful capability 2020 • Turnkey or compone
Slide 22: Aptiv
APTV NYSE A | I I V
Slide 23: Execution Priorities
Execution Priorities Today APTIV 2017 2022 GROWING • Core competencies positioning Aptiv to enable future mobility solutions ADVANCED CAPABILITIES • Expanding resources and footprint in global technology hubs to capitalize on opportunities • Increasing speed and scale: key growth businesses mature,
Slide 24: Capital Allocation Strategy
Capital Allocation Strategy Cash Priorities M&A Deployment Focus Areas • Maintain investment grade ratings FOCUS AREAS PRIOR EXAMPLES • Disciplined re-investment in business to drive growth and increase returns • Strategic acquisitions that are accretive to shareholder value TECHNOLOGY • Pay a compe
Slide 25: Summary
Summary APTIV LONG-TERM TARGETS Alignment to Safe, Green, and Connected megatrends continues Sales ($ billions), Op Margin2 5-7% 1 GoM 4-6% 1 $17+ GoM Focused on execution; well positioned for future of mobility $15+ ~$12.5 Up Up 60-100 bps ~100 bps Continuous improvement mindset and disciplined cas
Slide 26: Who You'll Hear From Today
Who You’ll Hear From Today APTIV DELPHI TECHNOLOGIES TECHNOLOGY OVERVIEW EEA SEGMENT OVERVIEW STRATEGIC OVERVIEW Glen De Vos Majdi Abulaban Liam Butterworth Senior Vice President and Senior Vice President and President, Senior Vice President and President, Chief Technology Officer Electrical/Electro
Slide 27: Aptiv PLC Technology Overview
Aptiv PLC Technology Overview Glen W. De Vos Senior Vice President and Chief Technology Officer
Slide 28: Smart Mobility Addressing Key Challenges
Smart Mobility Addressing Key Challenges URBAN SMART MOBILITY MOBILITY CHALLENGES BY 2050 +70% 5x 4x 3x +40% Of Population Emissions Cost Travel time freight BENEFITS OF MOBILITY AUTOMATION TO CITIES 28% 44% 30% 66% 87% Less Fewer Parking Shorter Lower Fewer Vehicles Spaces Travel Time Emissions Acc
Slide 29: 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 30: Industry Leading Software Capabilities
Industry Leading Software Capabilities APPROACHING OF E&S ENGINEERS 3RD PARTY ALGORITHMS SOFTWARE LINES OF CODE $1B VALUE BY 2020 40B SHIPPED DAILY 60% FOCUSED ON SOFTWARE 50+ INTEGRATED IN AN AVERAGE ACTIVE SAFETY PRODUCT Global Footprint 30+ Key Partnerships University Engagement • Mountain View,
Slide 31: Software And Computing Requirements Expanding
Software And Computing Requirements Expanding TODAY TOMORROW ENHANCED VEHICLE SOFTWARE COMPUTING SOFTWARE COMPUTING CAPABILITIES COMPLEXITY POWER COMPLEXITY POWER SAFETY AUTOMATIC EMERGENCY BRAKING LEVEL 4/5 AUTONOMOUS DRIVING Increased safety and 01100011 01100011 01100011 01100011 01100011 control
Slide 32: Architecture Capabilities Increasing Exponentially
Architecture Capabilities Increasing Exponentially Speed Decision Making Volume DATA TRANSFER SPEEDS COMPUTING HORSEPOWER DATA GENERATION High speed Ethernet replaces Automotive has outpaced Moore’s law The vehicle has become a digital antiquated 1980s technology and is entering the supercompute era
Slide 33: Legacy Approach To Data And Power, Computing
Legacy Approach To Data And Power, Computing NEW FEATURE OR NEW NEW FUNCTIONALITY SOFTWARE ARCHITECTURE ! ELECTRONIC CONTROL OF BASIC FUNCTIONS PRESENT MINIMAL CONTROL FROM SOFTWARE PAST LESS THAN 20 ECUs, MBPS DATA SPEEDS ADVANCED, CONNECTED FUNCTIONALITY 100M+ LINES OF CODE 50 – 100 ECUs, GBPS DAT
Slide 34: Smart Vehicle Architecture
Smart Vehicle Architecture OEM BENEFITS APTIV BENEFITS • Enables advanced features and functionality • Only “brain and nervous system” provider FUTURE • Vehicle becomes software defined platform • Consolidation favors Aptiv areas of strength • Reduces hardware cost and complexity • Unlocks ability f
Slide 35: Unlocking Next Generation Features
Unlocking Next Generation Features Audi A8 Level 3 Autonomous Multi domain controller: scalable software and compute platform ENABLING FIRST LEVEL 3 AUTOMATED DRIVING SYSTEM COMBINING APTIV ALGORITHMS WITH 6+ OTHER SUPPLIERS MOST POWERFUL COMPUTE PLATFORM IN PRODUCTION ENABLING 10x IMPROVED Ferrari
Slide 36: Level 4/5 Automated Driving Engagements
Level 4/5 Automated Driving Engagements BMW Partnership CSLP Turnkey Solution Systems Integrator And Policy and Planning Algorithms Vision Systems and Fusion Development Partner Radar, LiDAR and Fusion Advanced Localization • Compute platform Multi-Domain Controller Reference Learning APTIV • Sensin
Slide 37: Connected Services
Connected Services EXPANDING VEHICLE SOFTWARE LINKED THROUGH COST TO NEW APPLICATIONS & USERS AND DATA CAPABILITIES EFFECTIVE CONNECTIVITY TO CREATE VALUE Services IoT Content Software Cloud AI license Data Security Exchange Asset Software Sharing Vision Usage Edge Sharing Cost Saving Data Revenue S
Slide 38: Smart City Pilots
Smart City Pilots Singapore Paris / Normandy Boston Trial of an urban, point-to-point, low-speed, First European AMoD site testing a Commercially viable AMoD solution with fleet autonomous, mobility-on-demand (AMoD) comprehensive driverless system: dispatch, management, connectivity and data analyti
Slide 39: Well Positioned For Smart Mobility
Well Positioned For Smart Mobility URBAN MOBILITY CHALLENGES BY 2050 +70% 5x 4x 3x +40% Of Population Emissions Cost Travel time freight BENEFITS OF MOBILITY AUTOMATION DATA & CENTRAL CONNECTED TO CITIES 28% 44% 30% 66% 87% POWER COMPUTE SERVICES Less Fewer Parking Shorter Lower Fewer Vehicles Space
Slide 40: Nervous System: Data & Power
Aptiv PLC Nervous System: Data & Power Jerome Dorlack Senior Vice President and President of Electrical Electronic Distribution Systems and President, South America
Slide 41: Nervous System: Data & Power
Nervous System: Data & Power V2E vehicle 2 everything™ Multi-Gigabit Ethernet NERVOUS SYSTEM 10 Gbps HDBaseT 6 High Speed Sensing and Networking Gbps MOST25 LIN MOST50 Data and Power OTA and Vehicle 25 Mbps < 1 Mbps 50 mbps Sensing Distribution Connectivity Base T1 CAN FlexRay MOST150 < 1 Mbps 10 Mb
Slide 42: Architecture Types: Aligning To OEM Strategies
Architecture Types: Aligning To OEM Strategies Level of ECU Autonomy Architecture Type Qty1 Trade-offs + Established design, easy content add DECENTRALIZED 1-2 Legacy approach with little or no consolidation 100+ - Limited packaging, unable to effectively support advanced capabilities SELECT DOMAIN
Slide 43: Optimization Allows For Content Expansion
Optimization Allows For Content Expansion Content Walk Optimization Addressable Market CONTENT GROWTH CPV mix $ ~2% GoM1 Fueled by expansion in data requirements, electrification, and higher levels of automated driving capabilities ~$300 ~$100 OPTIMIZATION ~$700 Required to make incremental content
Slide 44: Vehicle Architecture Evolution
Vehicle Architecture Evolution Data Distribution Power Distribution Addressable Market Addressable Market CPV mix $ ~1% ~$300 CPV mix $ ~$400 GoM1 ~3% GoM1 High Power ~$230 Significant ~20% CAGR Centralization ~$270 Partial Centralization Low Power Decentralized ~1% CAGR PT Signal 2017 2022 2027 203
Slide 45: Product Lifecycle Value Drivers
Product Lifecycle Value Drivers Innovation Differentiation Commoditization Maturity volume Growth Decline Introduction Development Phase 1st Gen System 2nd Gen System 3rd Gen System 4th Gen System BEST IN CLASS PERFORMANCE COST OPTIMIZATION Key Customer • Complex architecture expertise critical • In
Slide 46: Centralization And Optimization Leading To Conquest Wins
Centralization And Optimization Leading To Conquest Wins Innovation Differentiation Commoditization Development 1st Gen System 2nd Gen System 3rd Gen System 4th Gen System OEM SMA Collaborations Major Global OEM 2018 JLR D8 Platform 2018 Chrysler RAM Smart Mobility Architecture Architecture Optimiza
Slide 47: Enablers To Success
Enablers To Success NEXT GENERATION TECHNOLOGY LEADERSHIP ARCHITECTURE High Speed Data Electrification Enablers Fail Safe Architecture Communication between Management of increased Exponential increases in CHALLENGES sensors and compute platforms content, voltage variations, variation and complexity
Slide 48: Why We Win In Data And Power
Why We Win In Data And Power Addressable Market CPV $ ~$700 LEADER IN SYSTEMS OPTIMIZATION Without ~2% optimization GoM1 High • Increasing vehicle complexity favors “system” suppliers Power • Comprehensive vehicle understanding de-risks development ~$500 Low GLOBAL SCALE Power • Managing just-in-tim
Slide 49: Brain: Software Defined Platform
Aptiv PLC Brain: Software Defined Platform Lee H. Bauer Vice President, Vehicle Architecture
Slide 50: Brain: Software Defined Platform
Brain: Software Defined Platform COMPUTING POWER DMIPS Computing power Transistors/cm2 outpacing Moore’s law 1,000,000 Self-Driving 1014 BRAIN 100,000 1012 Partially Automated 10,000 1010 Advanced Driver Assist Moore’s Software Enabled Vehicle Features Law 1,000 Electro- 108 mechanical Active Safety
Slide 51: Domain Centralization
Domain Centralization Compute platform Centralization Strategy Past Present Future Radar Module Satellite Controller ADAS/AV Incremental feature addition Domain Software ADAS immediately integrated into centralized domain unit Camera Controller Satellite Controller FAIL SAFE Infotainment and User In
Slide 52: Centralization Leading To Conquest Wins
Centralization Leading To Conquest Wins 2019 Audi Infotainment 2020 Volvo Infotainment 2021 Asian OEM Integrated Cockpit Controller Integrated Cockpit Controller Integrated Cockpit Controller Second step to domain First step towards First step towards centralization following 2017 domain centralizat
Slide 53: Level 4 Autonomous In The Supercompute Era
Level 4 Autonomous In The Supercompute Era LEVEL 4 BREAKS CURRENT ARCHITECTURES ! • Incremental functionality delivered by discrete solutions (SW & HW) won’t package or scale • Functional safety requirements hard to meet; PRESENT fully redundant approach is not affordable Incremental and evolutionar
Slide 54: Level 4 Autonomous In The Supercompute Era
Level 4 Autonomous In The Supercompute Era SMART VEHICLE ARCHITECTURE ADDRESSING LEVEL 4 CHALLENGES ! FUTURE FLEXIBILITY LIFECYCLE RESILIENCE PRESENT Software framework that Decoupling HW and SW Addresses multilayer supports dynamic feature with fully abstracted system fault tolerance; sets and comp
Slide 55: Where The Brain And Nervous System Come Together
Where The Brain And Nervous System Come Together THREE LAYER FAIL SAFE OPERATION FLEXIBILITY • SW framework supports variable compute sizing • AI driven edge computing unlocking data services • Seamless upscaling through comprehensive design CONTENT LIFECYCLE • Software abstraction supports features
Slide 56: Delivering Three Layer Fail-Safe Operation
Delivering Three Layer Fail-Safe Operation POWER DISTRIBUTION COMPUTE • Design safeguards critical vehicle PERFORMANCE sensor coverage • Complementary power management • Architecture drives functional safety systems compliance • Power supply fail safe • Redundant control systems • Compute platform f
Slide 57: Scenario: Level 4 Compute Platform Failure
Scenario: Level 4 Compute Platform Failure Normal Operation Fail Safe Operation Infotainment compute platform Full level 4 capabilities maintains critical driving capabilities Customized infotainment Mission critical information mode experience V2E, Brought-in-Device ! ADAS compute V2V maintained fo
Slide 58: Why We Win In The Software Defined Platform
Why We Win In The Software Defined Platform SOFTWARE AND COMPUTE CONTENT Addressable Market CPV $ LEADER IN SYSTEMS DEFINITION AND OPTIMIZATION ~$2,900 • Flexible software architecture enables feature growth and fault tolerant operation Without • Sensor fusion allows complex inputs create dynamic de
Slide 59: Connected Services
Aptiv PLC Connected Services David Ploucha President, Control-Tec
Slide 60: Connected Services Overview
Connected Services Overview Addressable Market, ($ billions) $30+ • Best-in-class data acquisition and edge processing capabilities 15x • Leverages real-time data and the cloud to identify and solve issues • Accelerating OEM development cycle; foundation of recurring revenue ~$2 2017 2022 2027 2032
Slide 61: Why Now?
Why Now? TECHNOLOGY BUSINESS MODELS IoT Services CONNECTIVITY Cloud Content Software AI license Security Data Exchange Asset Software Sharing Vision Usage Edge Sharing Cost Saving Data Revenue Sharing Mobile Energy Advertisement Connectivity to high value data enabling new business models
Slide 62: Monetization Opportunities Expanding
Monetization Opportunities Expanding Connect Monitor Control Optimize Automate Connectivity Hardware Vehicle Sensor Embedded Software Monitoring and Vehicle Control Control Algorithms APTIV APTIV • Product use • Product condition • Control of functions • Improve product • Autonomous operation • Aler
Slide 63: Edge Methods Process Data At The Point Of Capture
Edge Methods Process Data At The Point Of Capture Driving Data Vehicle data output Infotainment Data Engine Data 2 By only transmitting specifically 3 Desired data arrives where it is Other Data approved data, CT-Edge enables converted, sorted, organized and alignment of transmission, analysis distr
Slide 64: OEM Competitive Process Advantage Through Data
OEM Competitive Process Advantage Through Data INSIGHTS via relevant analytics and machine learning Engineering Manufacturing Production Product Development Vehicle Production Service and Use • Specification / requirements • JIT software via mOTA • Customer use profile • KPI based quality • KPI sign
Slide 65: Preproduction Process Improvement
Preproduction Process Improvement Constantly Monitoring Library Of Historical Issues Major North American OEM Truck/SUV Launch 100+ $60M+ Proprietary Savings algorithms THOUSANDS OF EVENTS TRIGGERED AND RESOLVED Issue Qty Issue 1 2 Issue 4 72 3.8M+ 170K 10 Passive SW Deployment High Speed Contextual
Slide 66: Technology Advancements Unlocking New Markets
Technology Advancements Unlocking New Markets DEVELOPMENT HARDWARE PRODUCTION HARDWARE 2012 2014 2016 2018 2020 $4,000 4,000 $2,000 4,000 $100 3.0M - 10M APTIV Cost Install Base Cost Install Base Cost Planned Cost Planned • Making OTA standard on all applicable products • Benefiting from connectivit
Slide 67: Production: Customer Data Monetization
Production: Customer Data Monetization CUSTOMER OEM / RETAIL / FLEET 3RD PARTY DATA VEHICLE APT IV PLATFORM EXCHANGE DATA CONSUMERS Fleet Transport • CT-EDGE data methods Mgmt Services • Highly configurable acquisition logic internal external • Data Strategy alignment Emergency Retail with Business
Slide 68: Connected Services Creating Customer Value
Connected Services Creating Customer Value Building a better company Reduce • Feedback loop improves development cycle time through process improvement development time and cost • Just in time software for development, production DEVELOPMENT Bug fixes and Speed enhancements to market Increased • Ful
Slide 69: Electrical / Electronic Architecture Segment Overview
Aptiv PLC Electrical / Electronic Architecture Segment Overview Majdi B. Abulaban Senior Vice President and President, Electrical/Electronic Architecture Segment, and Engineered Components Group, and President Asia Pacific
Slide 70: EEA Business Overview
EEA Business Overview FINANCIALS Sales, ($ billions) • Track record of addressing critical customer challenges Leader in 5% systems • Global scale, portfolio, and systems capability CAGR1 optimization • Content growth creating new challenges, opportunities $8.3 $8.2 $9.3 $9.2 Megatrend • Enabling co
Slide 71: EEA Portfolio: Global Leader
EEA Portfolio: Global Leader Electrical Systems Connection Systems Cable Management $35B Market $15B Market $1.5B Market • Wire harnesses and data cables • Connectors and terminals • Cable ties and mounts • High voltage distribution • Electrical centers • Application tools • Specialty harnesses • Po
Slide 72: Foundation In Electrical / Electronic Architecture
Foundation In Electrical / Electronic Architecture Enabling Fail-Safe Operational Data Network Behind Central Consumer Connectivity ADAS and Zone Computing Computing Platform to Smart Mobility Solid state electrical centers and power management Gigabit Ethernet and high speed data Wireless phone cha
Slide 73: Winning In Electrification
Winning In Electrification Delivering improved functionality, better performance, greater efficiency Electrical architecture and charging wins on all models Portable plug-in chargers 20% global market share in 2017 Almost growing above 40% in 2022 $4B Lifetime Bookings Since 2011 Traditional OEMs El
Slide 74: Operational Excellence
Operational Excellence New Launches Material Productivity Quality More launches, increasing complexity Offsetting price, driving ~5% savings Improving best in class COPQ Gross Productivity, ($ millions) Escapes (PPM) ~2X 188 178 0.5 ~1,350 ~40% Reduction 709 0.3 2014 2017E 2014 2017E 2014 2017E Cont
Slide 75: Expanding In Adjacent Markets
Expanding In Adjacent Markets • Strong in “automotive grade” harsh environments Power and signal distribution systems $1B+ • Core competencies are transferrable Non-auto • Global scale and reach to key markets revenues today Engineered • Well established relationships and channels to market via HT C
Slide 76: M&A Track Record
M&A Track Record Track Record1 Areas of Focus Strengthened leading position in connectors ENGINEERED END MARKET EBITDA Annual Synergy Achievement Rev CAGR DIVERSIFICATION COMPONENTS 30% 1.5x 5% Expanded connectivity products portfolio EBITDA Annual Synergy Achievement Rev CAGR 20% 1.5x 20% • Enginee
Slide 77: EEA Summary
EEA Summary ELECTRICAL / ELECTRONIC ARCHITECTURE Systems capability providing best value solution Sales ($ billions), Op Margin2 3-5% GoM1 Innovation enabling electrification, safety and connectivity ~$9.2B Up 200-250 bps Winning with new auto and new technology segments ~13.7% 30-50 bps/yr Expandin
Slide 78: Electronics & Safety Segment Overview
Aptiv PLC Electronics & Safety Segment Overview David Paja Senior Vice President and President, Electronics and Safety
Slide 79: E&S Business Overview
E&S Business Overview SALES Sales ($ billions) 12% Innovation • Advanced sensing and central computing CAGR1 driving future • Software-based systems with OTA capability growth • Enhanced user experience / data and smart cities $3.3 $2.5 $2.5 $2.7 • Broad adoption of active safety technology Strong m
Slide 80: Broad Foundation Supports Software Defined Platform
Broad Foundation Supports Software Defined Platform Active Safety Infotainment Body and Security • Audi zFAS - first level-3 automation vehicle • Premium infotainment platform • Progressive integration of body controllers • Active safety domain centralization • Centralized computing for infotainment
Slide 81: E&S Portfolio
E&S Portfolio Active Safety Infotainment Body and Security1 Connected Services $4B market $25B market $10B market $20B+ market by 2025 • Multi domain controllers • Cockpit compute platforms • Vehicle access and security • Data acquisition, edge processing • Sensing and perception systems • V2X, vehi
Slide 82: Operational Excellence
Operational Excellence New Launches Material Productivity Engineering Spend More launches, increasing complexity Offsetting price, driving ~8% savings Expanding advanced engineering Gross Productivity, ($ millions) Net Engineering Spend, ($ billions) $0.4 ~9% CAGR Advanced $0.3 Engineering Advanced
Slide 83: Operational Initiatives: Software Excellence
Operational Initiatives: Software Excellence Agile Methods Tools and Workflow Standards Compliance • Scaling a customized agile • Investing in an industry-best • Strengthening Delphi’s Agile culture of compliance framework based on scrum engineering toolchain Enterprise • Leveraging industry and • I
Slide 84: M&A Track Record
M&A Track Record Track Record Areas of Focus Policy and planning software for automated driving TECHNOLOGY CONNECTIVITY AND BOLT-ONs INFRASTRUCTURE Data acquisition, edge processing and OTA Multi-layer 3D display technology • Make, buy, ally; add best-in-class technology • Targeting natural adjacenc
Slide 85: E&S Summary
E&S Summary ELECTRONICS & SAFETY Broad adoption of portfolio of relevant technologies Sales ($ billions), Op Margin2 10%+ 1 GoM Differentiated core competencies in controls and software Up 250-300 ~$3.3B bps Growth and productivity funding growth investments 40-60 8.4% bps/yr Exceptional track recor
Slide 86: Aptiv PLC Financial Overview
Aptiv PLC Financial Overview Joe Massaro Senior Vice President and Chief Financial Officer
Slide 87: Execution Track Record: Financial Performance
Execution Track Record: Financial Performance IPO Today 2010 2017 GROWTH ABOVE MARKET MARGIN EXPANSION CASH DEPLOYMENT POSITIONING FOR THE FUTURE “Delphi DNA” generating strong financial returns
Slide 88: Execution Track Record: Financial Performance
Execution Track Record: Financial Performance IPO Today 2010 2017 ($ billions) GROWTH ABOVE ADJUSTED BOOKINGS1 REVENUE2 MARKET Projected To Exceed 2016 $17 $26 $24 $16 MARGIN $20 $21 $21 $15 $15 $15 EXPANSION $14 $14 $17 $15 $12 CASH ~9% ~5% DEPLOYMENT CAGR1 CAGR1 POSITIONING FOR THE 2010 2011 2012
Slide 89: Execution Track Record: Financial Performance
Execution Track Record: Financial Performance IPO Today 2010 2017 GROWTH ABOVE MARGIN EXPANSION1 EPS1 MARKET $6.65 13.4% $6.01 12.8% 13.2% 12.2% MARGIN 11.6% $4.95 11.0% 10.5% $4.62 EXPANSION $3.95 8.5% $3.42 CASH $2.37 DEPLOYMENT ~500 $1.60 ~23% bps CAGR POSITIONING 2 FOR THE 2010 2011 2012 2013 20
Slide 90: Execution Track Record: Financial Performance
Execution Track Record: Financial Performance IPO Today 2010 2017 GROWTH $5.4B | CAPITAL EXPENDITURES ABOVE • Supported continued organic growth, new programs MARKET • Consistent spend at ~5% of sales $3.4B | MERGERS & ACQUISITIONS MARGIN • Strategic technology acquisitions EXPANSION • Expanded adja
Slide 91: Positioning The Portfolio For The Future
Positioning The Portfolio For The Future IPO Today 2010 2017 GROWTH ABOVE ADVANCED MARKET BOLT ON’S TECHNOLOGIES DIVESTITURES • Averaging 1.3x Synergy Achievement • Expanding in high growth areas • Exiting slower growth / non-core spaces MARGIN • Expanding adjacent market exposure • Accelerating new
Slide 92: Financial Performance
Financial Performance ($ millions) 1 2010 2017E CAGR Drivers • Electrification Revenue $11,810 $16,850 - $17,050 5% • Active Safety Adjusted Growth % 4 - 5% • Infotainment / User Experience Operating income2 $1,009 $2,240 – 2,300 12% • Footprint optimization Operating margin % 8.5% 13.4% - 13.5% • O
Slide 93: What To Expect
What To Expect Today APTIV 2022 GROWTH • “Does revenue Convergence of core capabilities driving consistent content growth ABOVE growth accelerate?” • Growth in key technologies continues double-digit pace MARKET MARGIN “Do margins continue • Continued improvements from overhead optimization and prod
Slide 94: Financial Policy
Financial Policy • Focused on Safe, Green and Connected Disciplined • Continued technology investments to enhance product portfolio revenue growth • Balanced customer, platform and regional growth • Continuous improvement, cost management mindset continues Margin • Key growth businesses expand to sc
Slide 95: Flexible Operating Model
Flexible Operating Model 2017 Breakeven Summary Opportunities Production volume decline vs. today’s levels + Additional volume + Operating leverage 30% 40% + Acquisitions Risks - Lower industry volume - Foreign exchange headwinds 1 2 Cash Flow EBITDA Actual Breakeven - Commodity headwinds Well posit
Slide 96: Operational Excellence
Operational Excellence Material Performance Manufacturing Performance Offsetting Price, ~6% Material Savings Footprint Optimization Gross material productivity ($ millions) Gross manufacturing performance ($ millions) PRICE-TO- PRICE 350 135 310 125 LOGISTICS LOCALIZATION DESIGN 2017E 2020E UTILIZAT
Slide 97: Investments For Growth
Investments For Growth Engineering Spend Capital Expenditures Advanced Engineering Supports Growth Systems Capability Driving Customer Value ($ billions) ($ billion) 1.1 0.8 Advanced Growth 0.9 Engineering 0.7 55% Advanced Engineering 2017 Maintenance 20% ~7% ~7% Of Sales Of Sales Cost Savings / Oth
Slide 98: 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 99: 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 100: Long Term Outlook
Long Term Outlook Long Term Targets Key Considerations Sales; ($ billions) 5-7% 1 2017 - 2020 GoM 4-6% 1 GoM $17+ • Relevant portfolio aligned to safe, green and connected $15+ • Differentiated core competencies driving robust win rates ~$12.5 Up 60-100 • New product line maturity drives operating l
Slide 101: Capital Allocation Upside
Capital Allocation Upside Operating Cash Flow1 Priorities ($ 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 102: 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 103: Delphi Technologies PLC Strategic Overview
Delphi Technologies PLC Strategic Overview Liam Butterworth Senior Vice President and President, Powertrain Systems
Slide 104: Delphi Technologies Strategy
Delphi Technologies Strategy FLEXIBLE TECHNOLOGY PORTFOLIO – INDIFFERENT TO PROPULSION MARKET EVOLUTION COMBUSTION SOFTWARE & CONTROLS ELECTRIFICATION INCREASED GAS AND DIESEL EFFICIENCY OPTIMIZED ELECTRONIC CONTROL MILD HYBRID TO FULL EV BALANCED BEST-IN-CLASS EXPERIENCED REVENUE MIX COST STRUCTURE
Slide 105: Transaction Update
Transaction Update • Transition Service Agreements (TSAs) established • Readiness plans in place to hit the ground running DELPHI Readiness • PMO actively driving transition readiness planning TECHNOLOGIES • Board: Structure finalized, all directors identified Team • CEO staff: All positions filled
Slide 106: Delphi Technologies Business Overview
Delphi Technologies Business Overview Sales ($ billions), Op Margin1 FINANCIALS • Fuel economy and emissions regulations Regulatory $4.5 $4.4 $4.5 ~$4.6 5% and consumer • Vehicle performance, TCO, and up-time CAGR2 13.4% tailwinds • Power for new features and functionality 11.9% 11.4% 10.9% Portfoli
Slide 107: Market Growth
Market Growth Vehicle Production (millions) CAGR (2017 – 2025) • xEV production ~30% CAGR through 2025 Electric 5 24% Vehicles Electrification • Significant 48V adoption 11 Electrified 6 penetration • China NEV program incentivizing PHEV/BEV 6 Full 19% 32% steadily Hybrids 22 increases • Europe CO2
Slide 108: Regulations Tightening And Converging Globally
Regulations Tightening And Converging Globally CO2 Emissions NOx Emissions 250 CO2 g / km Improvement 0.6 NOx g / km Improvement 2005 to 2021 2005 to 2021 ~41% 0.5 ~68% 200 ~47% ~79% 0.4 ~88% ~44% 150 0.3 CH 117 0.2 100 0.1 EU 95 US 90 50 0 2005 2010 2015 2020 2025 2000 2005 2010 2015 2020 2025 Adva
Slide 109: Continued Penetration Of Advanced ICE Solutions
Continued Penetration Of Advanced ICE Solutions Gas Direct Injection (GDi) Advanced Valvetrain % Penetration1 % Penetration1 100% 100% 75% 75% 50% 50% TAM2 TAM2 25% $6B 25% $1B 9% 20% CAGR3 CAGR3 0% 0% 2015 2020 2025 2015 2020 2025 N. America Europe China N. America E.U. China Internal combustion so
Slide 110: Rapid Adoption Of Electrification Technology
Rapid Adoption Of Electrification Technology 48 Volt High Voltage Total Addressable Total Addressable Market ($ billions) Market ($ billions) ~$17B ~17% ON-BOARD CAGR CHARGERS ~37% CAGR BATTERY ~$4B CONTROLLERS BATTERY DC-DC CONTROLLERS ~$10B CONVERTERS DC-DC CONVERTERS INVERTERS ~$4B ~$1B INVERTERS
Slide 111: Electrification Trends By OEM
Electrification Trends By OEM Volvo/Geely: Volkswagen Group: “Volvo Cars, the premium car maker, has announced that “From 2020, we will be launching our major e-mobility every Volvo it launches from 2019 will have an electric offensive. As a volume manufacturer, we intend to play a motor, marking th
Slide 112: Business Wins Accelerated
Business Wins Accelerated Booked Program Lifetime Value Key Technologies Adjusted bookings1, ($ billions) Power Electronics 20% First half bookings CAGR roughly in line with total 2015! Gas Direct Injection $6.7 $6.1 $5.8 Electronics and software $4.7 Variable Valvetrain Commercial Vehicle Diesel 20
Slide 113: Winning In Key End Markets
Winning In Key End Markets Market Key Technologies Example Wins Power Electronics ASIA-PACIFIC GDi Power Gas Direct Valvetrain Electronics Injection Valvetrain Power Electronics EMEA Electronics Power CV Electronics Electronics Diesel CV Fuel Injection Valvetrain AMERICAS CV Fuel Injection CV Gas Di
Slide 114: Outpacing Light Duty Diesel Declines
Outpacing Light Duty Diesel Declines Combustion Revenue Continues To Grow Growing Electrification Increasing CPV ($ millions) Content per vehicle ($/vehicle) OEM COMBUSTION REVENUE ~$1800 3% CAGR ~$1500 ~$1500 CV Diesel ~$1,500 LDD ~$750 ~$1,200 Declines GDi 2-3%/Yr ~$450 ~ $300 ~ $300 ~ $300 48V Fu
Slide 115: Balanced Portfolio
Balanced Portfolio End Market Mix Regional Mix Customer Mix1 CV & AM drive end market diversity Improving alignment to global production No customer > 10% of sales % 2016 revenue % 2016 OEM revenue % 2016 revenue AFTERMARKET EUROPE, DAIMLER MIDDLE EAST & AFRICA AMERICAS GM Aftermarket OTHER HYUNDAI
Slide 116: Industry Leading Footprint
Industry Leading Footprint Established Global Presence Lean And Flexible Cost Structure • Network of 20 major manufacturing facilities, 12 tech centers • Restructuring focus on footprint optimization and flexibility • Efficient manufacturing primarily in best cost countries (BCC) • Rotation toward B
Slide 117: Fuel Injection Systems Footprint Optimization
Fuel Injection Systems Footprint Optimization 2014 2019 AMERICAS EMEA ASIA-PACIFIC AMERICAS EMEA ASIA-PACIFIC 2 6 1 2 2 1 1 1 2 2 1 1 1 1 1 1 1 1 1 1 1 Gas Diesel Shared Gas Diesel Shared Gas Diesel Shared Gas Diesel Shared Gas Diesel Shared Gas Diesel Shared • Eurocentric high cost Diesel footprint
Slide 118: Capital Structure And Deployment
Capital Structure And Deployment • Strong cash flow profile will support debt service post-spin Operating Cash Flow1 Debt Service • Maintain strong balance sheet; term loan provides flexibility ($ billions) • Conservative leverage: targeting ~2.0x debt / Adj. EBITDA through cycle • Targeting 5-6% of
Slide 119: Summary
Summary DELPHI TECHNOLOGIES REGULATORY AND CONSUMER TAILWINDS Sales ($ billions), Op Margin1 Strong regulatory, consumer, and economic market drivers 4-6% 2 GoM 2-3% 2 GoM ~$6B PORTFOLIO FOR TODAY AND TOMORROW ~$5B Portfolio to meet today and tomorrow’s market requirements ~$4.5B Up Up 70 - 90 130 –
Slide 120: Delphi Technologies PLC Technology Overview
Delphi Technologies PLC Technology Overview Mary Gustanski Senior Vice President and Chief Technology Officer, Powertrain Systems
Slide 121: Delphi Technologies Offers Best Value Propulsion
Delphi Technologies Offers Best Value Propulsion Innovative Solutions To Reduce CO2 Migration Path From Diesel To Gas Baseline: 4-cyl. turbo GDi with dual cam phasing SIMILAR Full hybrid + CO2 40 turbo GDi + VVA $2000 (Initial entry) Incremental SIMILAR OEM On Cost TORQUE 30 $1500 CO2 reduction % Fu
Slide 122: Technology Roadmap
Technology Roadmap • Best value electrification system solutions Electrification • Vehicle control strategies to optimize performance penetration steadily • Propulsion controller for computing capability increases • Thermal management for compact designs • Systems integration • Ease of vehicle packa
Slide 123: Systems Integration And Software
Systems Integration And Software Systems Integration Software Capabilities FUEL Hardware MODULAR PROPULSION SOFTWARE PACKAGES SYSTEM Provider • Gas, light duty diesel and commercial vehicles • Proprietary electrification/hybrid strategies ELECTRONICS • Compliant emission regulations and safety level
Slide 124: Diesel Engine Management Systems
Diesel Engine Management Systems FLEXIBLE DIESEL SOLUTIONS FOR APPLICATIONS UP TO 18 LITER ENGINES CV diesel injectors, pumps, and rail 10110001111011011000111101101100011110110110001111011 01100011110110110001111011011000111101101100011110110 Turbo optimization 1100011110110110001111011011000111101
Slide 125: Gasoline Engine Management Systems
Gasoline Engine Management Systems FIRST TO MARKET WITH 350 BAR GASOLINE DIRECT INJECTION (GDi) FUEL SYSTEM GDi injectors & rail 10110001111011011000111101101100011110110110001111011 Low noise, vibration 01100011110110110001111011011000111101101100011110110 and harshness 1100011110110110001111011011
Slide 126: Comprehensive Portfolio Of Electronic Controls
Comprehensive Portfolio Of Electronic Controls Broad range of ECUs and component technologies… …with increasingly centralized propulsion control Production Aftertreatment controller 2017 Launch Gasoline Diesel engine controller engine controller • Propulsion domain control for HEV, PHEV, and EV vehi
Slide 127: Dynamic Skip Fire: Silicon Valley Meets Automotive
Dynamic Skip Fire: Silicon Valley Meets Automotive • Decision to “Fire” or “Skip” is made before each cylinder event • Dependent on engine torque demand, noise and vibration considerations • Enabled by individual cylinder deactivation • The resulting “firing density” is continuously variable between
Slide 128: System Integration: 48V DSF Demonstration Vehicle
System Integration: 48V DSF Demonstration Vehicle 15+% CO2 REDUCTION INCREASED LOW-END TORQUE 20%+ IMPROVED ACCELERATION (0-30 KPH) INCREASED CHARGING DURING DECELERATION Powertrain Content • GDi engine management system (EMS) • Variable valve actuation hardware SEAMLESS START-STOP • Tula Dynamic Sk
Slide 129: Comprehensive Portfolio Enables: Path To Electrification
Comprehensive Portfolio Enables: “Path To Electrification” 48 VOLT MILD HYBRID FULL HYBRID PLUG-IN HYBRID ELECTRIC VEHICLE CO2 CO2 CO2 CO2 ~15% ~25% ~50% ~100% Reduction Reduction Reduction Reduction CPV CPV ~$1500 CPV ~$1,500 CPV ~$1,200 ~$450 • Propulsion controller and software • Propulsion contr
Slide 130: Customers Embracing Power Electronics
Customers Embracing Power Electronics CONQUEST INVERTER WIN MORE POWER • 30% smaller IN A SMALL • 40% lighter PACKAGE • 25% higher power density $4B Lifetime bookings1 IMPROVED • Eliminated wire bonds RELIABILITY AND • Enhanced thermal management INTEGRATION • On-transmission mounting • More functio
Slide 131: World Class Power Electronics: Production XC90
World Class Power Electronics: Production XC90 100%+ FUEL EFFICIENCY FROM ICE TO HYBRID SEAMLESS START-STOP PERFORMANCE SUPPORTING MULTIPLE CHARGING METHODOLOGIES UNLOCKING NEW FEATURES Delphi Solution eAWD • Small inverter package enabled by Delphi’s Viper Power Module Active safety • Eliminates ex
Slide 132: Technology On A Global Scale
Technology On A Global Scale Americas EMEA Asia Pacific Software & Controls Software & Controls Software & Controls Systems Electrification Components Systems Electrification Components Systems Electrification Components Auburn Hills, Kokomo, Juarez, Bascharage, Park Royal, UK Shanghai, Suzhou, Chin
Slide 133: Summary
Summary LEADER IN ELECTRIFICATION Strong and growing portfolio of best value electrification technologies DELPHI ADVANCED ICE PORTFOLIO Increasing efficiency and performance of combustion engines TECHNOLOGIES SOFTWARE AND CONTROL EXPERTISE DLPH Optimized performance through advanced software managem
Slide 134: Delphi Technologies PLC Financial Overview
Delphi Technologies PLC Financial Overview Joe Massaro Senior Vice President and Chief Financial Officer
Slide 135: Execution Track Record
Execution Track Record Revenue Operating Margins2 Free Cash Flow3 ($ billions) % of sales ($ billions) ~5% ~50% CAGR1 +250 bps increase 4.6 13.4% PF4 $4.5B 0.3 PF4 12.0% 4.5 PF4 $0.2B 10.9% 0.2 2014 2017E 2014 2017E 2014 2017E “Delphi DNA”- delivering solid financial performance 1. Adjusted for acqu
Slide 136: What to Expect
What to Expect • Strengthen technology investments to enhance product portfolio Disciplined • Unique IP supports continued strong wins revenue growth • Balanced customer, platform and regional growth • Continue footprint optimization and improvements in overhead Cost structure • Leverage EOS across
Slide 137: Transition Priorities
Transition Priorities Today Spin • Separation agreements established across business to ensure smooth transition SEPARATION • Readiness plans in place to ensure fast start as new business READINESS • PMO continuing to drive all transition readiness planning • Business will spin with approximately $0
Slide 138: Capital Structure
Capital Structure Amount Sources and Uses ($ millions) Pro Forma Capitalization ($ millions) LTM EBITDA $500mn revolver $0 Total cash1 $240 Term Loan A 750 Memo: Operating cash $195 Senior Unsecured Notes 800 $500mn revolver 0 Total Sources $1,550 Term Loan A 750 Dividend to RemainCo1 $1,150 Total s
Slide 139: Margin Outlook
Margin Outlook Up 14%+ 130-150 40-50 bps bps / yr 12.0% 2017PF Price / Growth Performance/ Roll-off of 2020E 2022E Economics Investments Volume Inefficiencies Expanding margins while inefficiencies roll-off 1. Note: Pro-forma amounts adjusted for OE service revenue and estimated standalone costs and
Slide 140: Cost Structure Optimization
Cost Structure Optimization Material Performance Manufacturing Performance $100M+ average annual savings (2017-2020) ~$45M/Yr average savings (2017-2020) Gross material productivity ($ millions) Gross manufacturing performance ($ millions) PRICE-TO- PRICE 20 Restructuring benefits 110 100 35 40 LOGI
Slide 141: Flexible Operating Model
Flexible Operating Model 2017 Breakeven Summary Opportunities Production Volume Decline vs. Today’s Levels + Additional volume + Operating leverage 25% 40% + Acquisitions Risks - Lower industry volume - Foreign exchange headwinds 1 Cash Flow EBITDA - Commodity headwinds Actual Breakeven Well positio
Slide 142: Investments for Growth
Investments for Growth Engineering Spend Capital Expenditures Optimization of spend towards advanced development Investments support continued strong wins ($ billions) ($ millions) $0.5 ~$250 $0.4 Advanced IMPROVING KEY TECHNOLOGIES Advanced Engineering • Powertrain electrification Engineering • GDi
Slide 143: Disciplined Revenue Growth
Disciplined Revenue Growth Commercial Vehicle GDi and Valvetrain Power Electronics Aftermarket Revenue, ($ billions) ~15% Sales ~10% CAGR1 Sales ~5% CAGR1 Sales CAGR1 $0.8 $0.8 ~35% Sales $0.8 CAGR1 $8B $9B $4B Lifetime Lifetime Lifetime Bookings3 Bookings3 Bookings3 $0.1 2 2017E 2020E 2017E 2020E 2
Slide 144: Long Term Outlook
Long Term Outlook Long Term Targets1 Key Considerations ($ billions), operating margin 2017 - 2020 4-6% GoM2 • Relevant portfolio well positioned for all propulsion technologies 2-3% ~$6B GoM2 • Key growth technologies more than offset LDD declines ~$5B • Optimization of one time separation, stand-a
Slide 145: Capital Allocation Strategy
Capital Allocation Strategy Operating Cash Flow1 Priorities ($ billions) MAINTAIN STRONG BALANCE SHEET • Higher free cash flow, driven by earnings and lower restructuring cash, will support debt service ~10% 2 • Disciplined re-investment in business to drive growth and increase returns CAGR CAPITAL
Slide 146: Delphi Technologies Investment Thesis
Delphi Technologies Investment Thesis Today DELPHI TECHNOLOGIES 2017 2022 Organic • Competitive positioning in diversified end markets Growth • Electrification driving significant Power Electronics growth Accelerating Margin • Relentless focus on cost management, productivity and continuous improvem
Slide 147: Appendix: Delphi Automotive PLC Historical Results
Appendix: Delphi Automotive PLC Historical Results
Slide 148: Non-US GAAP Financial Metrics – Adjusted OI
Non-US GAAP Financial Metrics – Adjusted OI ($ millions) 2016 2015 2014 2013 2012 2011 2010 Net income attributable to Delphi $1,257 $1,450 $1,351 $1,212 $1,077 $1,145 $631 Interest expense $156 $127 $135 $143 $136 $123 $30 Other expense (income), net $385 $116 $40 $45 $17 $42 ($9) Income tax expens
Slide 149: Non-US GAAP Financial Metrics – Adjusted EBITDA
Non-US GAAP Financial Metrics – Adjusted EBITDA ($ millions) 2016 Net income attributable to Delphi $1,257 Interest expense $156 Other expense, net $385 Income tax expense $242 Equity income, net of tax ($35) Income from discontinued operations, net of tax ($108) Net income attributable to noncontro
Slide 150: Non-US GAAP Financial Metrics – Adjusted EPS
Non-US GAAP Financial Metrics – Adjusted EPS ($ millions, except per share amounts) 2016 2015 2014 2013 2012 2011 2010 Net income attributable to Delphi $1,257 $1,450 $1,351 $1,212 $1,077 $1,145 $631 Income from discontinued operations attributable to Delphi, net of tax ($105) ($262) ($42) ($42) ($5
Slide 151: Non-US GAAP Financial Metrics – Adjusted EPS
Non-US GAAP Financial Metrics – Adjusted EPS ($ millions, except per share amounts) 2016 2015 2014 2013 2012 2011 2010 Adjusted net income per share $6.28 $5.22 $4.94 $4.24 $3.67 $2.56 $1.78 (b) Less: Mechatronics ($0.27) ($0.27) ($0.32) ($0.29) ($0.25) ($0.19) ($0.18) (b) Adjusted net income per sh
Slide 152: Appendix: Delphi Automotive PLC 2017 Guidance
Appendix: Delphi Automotive PLC 2017 Guidance
Slide 153: Financial Guidance Metrics
Financial Guidance Metrics ($ millions) 20171 Net income attributable to Delphi $1,480 Interest expense $138 Other expense, net $17 Income tax expense $267 Equity income, net of tax ($30) Net income attributable to noncontrolling interest $69 Operating income $1,941 Restructuring $242 Separation cos
Slide 154: Financial Guidance Metrics
Financial Guidance Metrics ($ millions, except per share amounts) 20171 Net income attributable to Delphi $1,480 Restructuring $242 Separation costs $61 Other acquisition and portfolio project costs $17 Asset impairments $9 Reserve for Unsecured Creditors litigation $10 Tax impact of adjusting items
Slide 155: Appendix: Delphi Technologies PLC Historical Results
Appendix: Delphi Technologies PLC Historical Results
Slide 156: Non-US GAAP Financial Metrics
Non-US GAAP Financial Metrics ($ millions) 2016 2015 2014 Net income attributable to DPS $236 $272 $306 Interest expense $1 $3 $4 Other expense (income), net $1 $2 ($2) Income tax expense $50 $92 $97 Equity loss, net of tax - - $1 Net income attributable to noncontrolling interest $32 $34 $36 Operat