Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Investor Day (April 2015)
18 slides from Aptiv's investor day presentation, Apr 2, 2015
Slide 1: Financial overview
Financial overview Mark Murphy Chief Financial Officer and Executive Vice President Exhibit 99.1
Slide 2: Performance highlights 2010-2014
Performance highlights 2010-2014 2 1. Adjusted for FX and commodities 2. Adjusted for restructuring and other special items; see appendix for detail $13.8 $17.0 2010 2014 Booked over $100 billion of business Developed and launched advanced technologies Expanded margins 310 basis points Increased EPS
Slide 3: Financial strategy remains unchanged
Financial strategy remains unchanged 3 Disciplined revenue growth Margin expansion Increase cash flow • Accelerate growth of market relevant products • Continued rotation to high growth regions • Diversify customer base and strengthen market position • Continue manufacturing and material cost reduct
Slide 4: Bookings growth
Bookings growth 4 Note: Bookings exclude Thermal $18 $20 $22 $24 $24 2010 2011 2012 2013 2014 ($ billions) Europe 35% Asia 30% Americas 35% 2010-2014 bookings by region Continued shift to Asia and above market revenue growth Q1 2015 bookings ~$10B
Slide 5: Accelerating net new business
2015-2017 net new business by region Accelerating net new business 5 Note: Net new business excludes Thermal 2015-2017 net new business by segment Electronics & Safety 35% Electrical Architecture 40% Powertrain 25% Asia 45% Americas 32% Europe 23% $1.1 $1.7 $1.9 2015 2016 2017 ~$4.7 billion of cumul
Slide 6: Further diversifying regional revenue mix
Europe 34% Asia 28% Americas 38% Further diversifying regional revenue mix 6 1. Adjusted for FX, commodities and Thermal divestiture 2. Excludes Thermal Source: February 2015 IHS Automotive forecast and management estimates Region ’14–’17 production CAGR ’14–’17 Delphi revenue CAGR1 Above market gro
Slide 7: Further improving cost structure
Manufacturing expense % of revenue 20.5% 20.0% ~18.2% 2010 2014 2017 Further improving cost structure 7 1. Represents gross engineering expenditures less rebills to customers and government agencies; 2014 gross engineering was $1.7B Note: 2017 excludes Thermal Material cost % of revenue 53.3% 50.1%
Slide 8: Revenue and EBITDA outlook
Revenue ($ billions) Revenue and EBITDA outlook 8 1. Adjusted for FX and commodities 2. Adjusted for FX, commodities and Thermal divestiture 3. Adjusted for restructuring and other special items; see appendix for detail Note: 2017 excludes Thermal Above market growth and operating leverage drive mar
Slide 9: Outlook by segment
Outlook by segment 9 ($billions) 2014 2017 CAGR1 2017 2017 Electrical Architecture $8.3 ~$9.5 6% ~17% ~14% Powertrain $4.6 ~$6.0 10% ~18% ~14% Electronics & Safety $2.9 ~$4.0 11% ~18% ~14% Revenue EBITDA2 Operating income2 1. Adjusted for FX and commodities 2. Adjusted for restructuring and other sp
Slide 10: Robust business model
Robust business model 10 1. Adjusted for restructuring and other special items; see appendix for detail Note: 2017 excludes Thermal $17.0 ~ $19.0 ~$17 ~$21 2014 2017 2017 Risks Opportunities + Additional volume + Operating leverage + Acquisitions EBITDA1 % 15.3% ~17.5% Upside ~19% Downside ~16% Reve
Slide 11: Capital structure
Capital structure 11 1. Includes restricted cash of $4M and $1M for 12/31/13 and 12/31/14, respectively 2. Adjusted for restructuring and other special items; see appendix for detail Note: Current credit ratings and maturity schedule are as of March 2015 ($ millions) Dec 31, 2013 Dec 31, 2014 Cash1
Slide 12: Capital allocation
Capital allocation 12 1. Adjusted for restructuring and other special items; see appendix for detail 2. Excludes Thermal 2011-2014 share repurchases and dividends ($ millions) ~$200 ~$400 ~$1,300 ~$700 2011 2012 2013 2014 Share repurchases Dividends ~$2.6B returned to shareholders since 2011 2015-20
Slide 13: Financial metrics comparison
Financial metrics comparison 13 Note: Range and averages are for a peer group consisting of: ALV, BWA, HAR, JCI, LEA, TEN, TRW and VC (excludes outliers); data represents Capital IQ consensus estimates and J.P. Morgan Equity Research 2015 EBIT margin 2015 EBITDA margin 2015 ROIC 2015 FCF% to EBITDA
Slide 14: Update on 2015 guidance
(millions, except per share amounts) 2015 Prior 2015 Continuing Ops Reported revenue Growth % $17,100 - $17,500 1% - 3% / 5% - 7%1 $15,600 - $16,000 1% - 3% / 5% - 7%1 Operating income2 Operating margin $2,100 - $2,200 12.3% - 12.6% $1,980 - $2,080 12.7% - 13.0% Update on 2015 guidance 14 1. Average
Slide 15: What you heard today
What you heard today • Strategically focused portfolio of relevant technologies • Revenue growth continues to accelerate • Driving operational excellence • Continued margin expansion and earnings growth • Balanced and disciplined capital allocation plan 15 Well positioned to drive value
Slide 16: Appendix
Appendix DELPHI
Slide 17: Non-US GAAP financial metrics: adjusted operating income
2014 2010 Net income attributable to Delphi $1,351 $631 Income tax expense $282 $258 Interest expense $135 $30 Other (income) expense, net $7 ($34) Noncontrolling interest $89 $72 Equity income, net of tax ($17) ($17) Operating income $1,847 $940 Restructuring $144 $224 Other acquisition and portfol
Slide 18: Non-US GAAP financial metrics: adjusted EBITDA
2014 2010 Net income attributable to Delphi $1,351 $631 Income tax expense $282 $258 Interest expense $135 $30 Other (income) expense, net $7 ($34) Noncontrolling interest $89 $72 Equity income, net of tax ($17) ($17) Operating income $1,847 $940 Depreciation and amortization $587 $421 EBITDA $2,434