Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Debt Investor Presentation (September 2017)
29 slides from Aptiv's debt investor presentation, Sep 8, 2017
Slide 1: Delphi Powertrain Presentation Senior Notes Offering September 2017
Delphi Powertrain Presentation Senior Notes Offering September 2017
Slide 2: Disclosure
Disclosure This presentation, as well as other statements made by Delphi Jersey Holdings plc (the “Company”), contain forward-looking statements that reflect, when made, the Company’s current views with respect to current events. Such forward-looking statements are subject to many risks, uncertainti
Slide 3: Evolution of Delphi & Key Powertrain Highlights
2. Evolution of Delphi & Key Powertrain Highlights
Slide 4: Evolution of Delphi
Evolution of Delphi DLPH evolution Highlights 2010 - 2016 2010 - Private company; aligning cost footprint and product portfolio Booked nearly $160B of business 2011 - Initial public offering; value creation opportunity for Developed and launched shareholders advanced technologies 2012 - Strengthenin
Slide 5: Two strong independent companies following the spin
Two strong independent companies following the spin Electrical / Electronic Architecture, Powertrain Electronics & Safety Global technology leader with unparalleled strengths in signal and power Global technology leader focused on optimizing engine propulsion systems distribution, centralized comput
Slide 6: Powertrain highlights
Powertrain highlights Portfolio of Advanced Highly engineered product portfolio that includes powertrain technologies for gas and diesel engines, as well as hybrid and electric vehicles Technologies Aligned 21% of revenue derived from aftermarket products that are non-discretionary – provides recurr
Slide 7: Powertrain Overview
3. Powertrain Overview
Slide 8: Powertrain business overview
Powertrain business overview OVERVIEW CREDIT HIGHLIGHTS • Global technology leader focused on integrated powertrain technologies • Fuel economy and emissions regulations Fuel injection systems, powertrain products, and electronics & Regulatory & electrification Consumer • Vehicle performance and rel
Slide 9: Balanced business model
Balanced business model Product Mix End Market Mix Products & Service Fuel Injection Solutions Segment Systems (Aftermarket) 32% Commercial 21% Vehicle1 Powertrain Systems 16% Light Vehicle Segment 63% 79% Electronics & Powertrain Aftermarket Electrification Products 21% 21% 26% Regional Mix Custome
Slide 10: Market trends provide tailwind for growth
Market trends provide tailwind for growth Vehicle Production (Millions) CAGR (2017 – 2025) • Electrified vehicles expected to increase to ~25% Electric of global production by 2025 vs. ~4% today 22% Vehicles Electrified • Powertrain well-positioned to benefit leveraging 4.1 30% proprietary power ele
Slide 11: Increasingly stringent regulations provide tailwinds
Increasingly stringent regulations provide tailwinds NOX emissions regulations Innovative solutions to reduce CO2 g / km CO2 reduction (%) Improvement Baseline: 4-cyl. Turbo GDi 0.6 40 with dual cam phasing ‘05 to ‘21 Full hybrid + eu 84% turbo GDi + VVA 0.4 (Initial entry) us 72% 30 Full hybrid + s
Slide 12: Powertrain addressable market growth to accelerate with electrification megatrend
Powertrain addressable market growth to accelerate with electrification megatrend Powertrain total addressable market Powertrain electrification CPV opportunities2 Market CAGR CPV Multiple & $ CPV ($B) $81 6.0x $74 5.0x 5.0x $68 Power $24 Elect.1 +22% $17 $60 $12 4.0x $55 4.0x $7 $4 $1,500 $1,500 IC
Slide 13: Powertrain Systems segment overview
Powertrain Systems segment overview Fuel Injection Systems Powertrain Products Electronics & Electrification Revenue: $1.5B (32%) Revenue: $1.2B (26%) Revenue: $0.9B (21%) Gas Fuel Air Control Valvetrain Injection Management Electronics CV Diesel Power Ignition Sensors Fuel Injection Electronics Nea
Slide 14: Products & Service Solutions segment overview
Products & Service Solutions segment overview Sales channel mix1 Aftermarket strengths and benefits for broader business Revenue: $0.9B (21%) 2016, % of total Aftermarket Global Presence Efficient global operations and distribution network Original Equipment Service 36% Remanufacturing Tier 1 knowle
Slide 15: Leading innovation platform
Leading innovation platform • Large portfolio of ~2,400 active patents and patent applications with strong track record of developing technologies focused on customer demands and industry trends • Continue to collaborate with customers to develop innovative powertrain solutions • Leverage existing O
Slide 16: Established global presence with lean cost structure
Established global presence with lean cost structure Global Hourly Workforce High Cost Countries 20% 80% Best Cost Manufacturing Location Countries Engineering Center Established Global Presence Lean and Flexible Cost Structure • Serve global customer demand through network of 20 major manufacturing
Slide 17: Long-standing relationships with global customers
Long-standing relationships with global customers Customer % of FY16 Sales Customer % of FY16 Sales 1 9% 6 4% 2 7 4% 3 8 4% 4 9 2% 5 10 2% Well diversified among top OEMs 22
Slide 18: Financial Summary
4. Financial Summary 23
Slide 19: Financial overview
Financial overview Financial Profile Key Metrics • Portfolio to meet current and future market needs Revenue1 ~$4.5B • Lean cost structure and flexible business model Pro Forma • Consistent cash flow generation Adj. EBITDA 15.4% Margin1,2 Operating Capital Structure $350M+ Cash Flow1 • Conservative
Slide 20: Historical financial performance
Historical financial performance Revenue Adj. EBITDA3 ($M) ($M) $756 $4,540 $4,407 $4,486 $4,578 $706 16.5% $688 $693 $4,487 Pro $729 Pro Forma1 Forma 6% 16.2% 5% 16.0% 2% 15.2% 15.4% 2014A 2015A 2016A LTM 2014A 2015A 2016A LTM 6/30/2017 6/30/2017 Revenue Adj. Growth² Adj. EBITDA % margin Capital Ex
Slide 21: Q2 and 1H 2017 financial performance
Q2 and 1H 2017 financial performance Q2 2017 1H 2017 1H 2017 Commentary Revenue ($M) • 7% adjusted growth YoY $2,355 $2,263 • Strong double-digit growth: $1,187 $1,146 Power Electronics Gas Direct Injection Commercial Vehicles Q2 2016 Q2 2017 1H 2016 1H 2017 Adjusted EBITDA1 ($M) $209 $415 $352 • Ad
Slide 22: Solid momentum in bookings growth
Solid momentum in bookings growth Booked Program Lifetime Value Bookings Update 2011 – 1H 2017 Cumulative Bookings1: ~$40B • Key growth technologies have grown 20%+ $8B per year since 2011 GDi: $5.5B Variable Valvetrain: $3.7B Power Electronics: $3.6B • New business bookings have benefited from $14B
Slide 23: Financial policies
Financial policies • Target operating cash balance of ~$150M1 Liquidity • Maintain a committed Revolving Credit Facility of $500M • Conservative leverage profile targeting 2.0x debt / Adj. EBITDA2 through cycle Leverage • Term loan provides flexibility to de-lever • Strong cash flow profile will sup
Slide 24: Spin-off update
Spin-off update Transaction Update Estimated Separation & Standalone Costs • Filed initial Form 10 in June • ~$100-110M of public company costs expected to run standalone Powertrain business Amendment #2 filed on Sept 7th includes pro forma financials Represents ~$20-30M in incremental costs vs. Pro
Slide 25: Key takeaways
Key takeaways Balanced product portfolio aligned with key industry trends Diversified across end markets, customers and regions Robust bookings across all products Global presence with lean cost structure Strong free cash flow conversion 30
Slide 26: Appendix
Appendix 31
Slide 27: Non-US GAAP financial metrics
Non-US GAAP financial metrics Three Months Ended Six Months Ended Year Ended December 31, Twelve Months Ended ($M) June 30, 2017 June 30, 2017 June 30, 2016 June 30, 2017 June 30, 2016 2016 2015 2014 Net income (loss) attributable to DPS $306 $48 ($12) $151 $81 $236 $272 $306 Net income attributable
Slide 28: Full year 2016 E/EA and E&S pro-forma financials
Full year 2016 E/EA and E&S pro-forma financials ($M) 2016 Reported E/EA 2016 revenue $9,316 Reported E&S 2016 revenue $3,014 Less: Mechatronics divestiture ($285) Pro-forma E/EA and E&S revenue $12,045 ($M) 2016 Reported E/EA 2016 adjusted operating income $1,344 Reported E&S 2016 adjusted operatin
Slide 29: Delphi Innovation for the Real World
DELPHI Innovation for the Real World
Delphi Automotive — Debt Investor Presentation (September 2017) on 6ix