Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q2 2016 Earnings Presentation
25 slides from Aptiv's earnings presentation, Aug 3, 2016
Slide 1: Second quarter 2016 earnings call
August 3, 2016 Second quarter 2016 earnings call
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: Agenda
Agenda Operations overview • Q2 2016 in review Kevin Clark Chief Executive Officer • Wrap up Financial overview • Q2 2016 results Joe Massaro Chief Financial Officer • 2016 guidance Q&A Kevin Clark/ Joe Massaro 3
Slide 4: Operations overview
Operations overview Kevin Clark President and Chief Executive Officer
Slide 5: Summary
Summary • Revenue growth accelerated to 7%, led by E&S and E/EA • Continued disciplined cost focus while investing in growth • EPS $1.59, up 19% YoY • Accretive cash deployment delivering shareholder value • Portfolio positioned for continued growth with $13B Q2 YTD bookings • Accelerating customer
Slide 6: Second half update
Second half update Positive trends Macro headwinds Regulatory trends and consumer demands £ 1 FX/commodities High-growth product lines: NA commercial vehicle/ ADAS, GDi, Power Electronics LD diesel market Slowing global Launch volume vehicle production Interest in automated driving solutions Outlook
Slide 7: Bookings growth
Bookings growth Continued bookings growth Select customer bookings ($ billions) $26 $24 $24 $22 $20 $18 $13 2010 2011 2012 2013 2014 2015 Q2 2016 YTD Strong first half bookings 1 At constant foreign exchange rates 7 Note: Bookings represent lifetime gross program revenues awarded, based upon expecte
Slide 8: Technology growth driver
Technology growth driver Market expanding at a rapid pace Delphi’s 48V vehicle $2,078 $2,175 Mild hybrid Q1 2015 January IHS vehicle volumes (000’s) Q1 July 2016 IHS 18,000 $1,081 $1,135 $640 $720 16,000 14,000 E/EA Powertrain E&S 12,000 10,000 8,000 6,000 4,000 • Awarded a third 48V customer progra
Slide 9: 2016 major launches
2016 major launches Q2 2016 major launches Platforms continuing to drive growth Chrysler Pacifica Daimler E-Class Volvo S90 BMW 5-Series Cadillac XT5 VW Tiguan Renault Scenic Chevy Malibu Revenue generating platforms 9
Slide 10: Safety benefit
Automated driving on the spectrum of active safety 100% 10x Safety benefit Cost Safety benefit Cost 1x Level 0 Level 1 Level 2 Level 3 Level 4 No automation Function-specific automation Combined function automation Limited self-driving automation Full self-driving automation Driver able to cede full
Slide 11: Singapore automated mobility on-demand project
Singapore automated mobility on-demand project • Developing an automated mobility on-demand pilot for the government of Singapore – First provider of the design, development, test and verification; fleet of six fully autonomous vehicles • Our end-to-end ecosystem enables a secure, cloud-based, on-de
Slide 12: Financial overview
Financial overview Joe Massaro Chief Financial Officer and Senior Vice President
Slide 13: Q2 2016 vs. Q2 2015
Q2 2016 vs. Q2 2015 ($ millions, except per share amounts) Q2 2016 Q2 2015 B/(W) Reported revenue $348 $4,206 $3,858 Growth % 9%/7%1 Operating income2 $577 $526 $51 Operating margin % 13.7% 13.6% 10 bps Earnings per share3 $0.25 $1.59 $1.34 Growth % 19% Operating cash flow $575 $514 $61 Delivering s
Slide 14: Revenue growth
Revenue growth Q2 2016 vs. Q2 2015 Year-over-year growth by region ($ millions) Reported Adjusted1 Q2 2016 Q2 2016 $327 $168 $4,206 $3,858 ($65) Europe 15% 10% ($82) N. America 8% 7% Asia 4% 5% S. America (18%) (19%) Total 9% 7% Q2 2015 Sales Acquisitions/ Price FX/ Q2 2016 growth divestitures commo
Slide 15: Operating income growth
Operating income growth Q2 2016 vs. Q2 2015 ($ millions) $20 $12 $84 $577 $526 ($65) 13.7% 13.6% Q2 2015 Sales Acquisitions/ Net Price Q2 2016 growth divestitures performance Continued margin expansion 15 Note: Operating income adjusted for restructuring and other special items; see Appendix for det
Slide 16: Segment financials
Segment financials Revenue1 Operating income2 ($ millions) $2,078 $2,175 ($ millions) Q12015 Q2 2015 Q1 2015 Q2 2015 Q12016 Q2 2016 Q2 2016 growth Q1 2016 Q2 2016 $1,135 $1,081 $1,135 Reported 15% (2%) 9% $720 $640 $720 $640 Adjusted1 8% - 14% $2,213 $343 rain E&S $2,044 E/EA Powertrain E&S $292 $1,
Slide 17: Earnings per share
Earnings per share Q2 2016 vs. Q2 2015 $0.09 $1.59 $0.17 ($0.01) $1.34 Q2 20151 Operating2 Share Taxes Q2 20161 income repurchases Delivered 19% earnings per share growth 1 Adjusted for restructuring and other special items; see Appendix for detail and reconciliation to US GAAP 17 2 Adjusted for res
Slide 18: 2016 guidance
2016 guidance (millions, except per share amounts) Prior CY 2016 Current CY 2016 Q3 2016 Reported sales $16,600 - $17,000 $16,250 - $16,450 $3,925 - $4,000 Adjusted growth1 8% - 10% 6% - 7% 7% - 9% Operating income2 $2,200 - $2,300 $2,150 - $2,200 $505 - $525 Operating margin 13.3% - 13.6% 13.2% - 1
Slide 19: Cash generation and deployment
Cash generation and deployment Operating cash flow growth Capital deployment ($ billions) Capital • Supporting customer launches Expenditures • Technology tools for increasing business efficiency 35-40% • Further optimizing global footprint $1.9 $1.7 Dividends • Increased dividend payout to ~15% of
Slide 20: Wrap up
Wrap up • Delivered solid performance in Q2 2016 – Accelerated growth and margin expansion yielding 19% EPS growth – Continued to optimize cost structure while funding growth investments • Confident in updated H2 2016 outlook – 7% organic revenue growth; continued margin expansion – Raised midpoint
Slide 21: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 22: Appendix
Appendix DELPHI
Slide 23: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q2 2016 Q2 2015 Net income attributable to Delphi $258 $645 Interest expense $41 $30 Other expense (income), net $2 $2 Income tax expense $84 $80 Equity income, net of tax ($7) - Income from discontinued operations, net of tax - ($298) Net Income attributab
Slide 24: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q2 2016 Q2 2015 Net income attributable to Delphi $258 $645 Income from discontinued operations attributable to Delphi, net of tax - ($295) Income from continuing operations attributable to Delphi $258 $350 Adjusting items: Restructuring $154 $17 Other acqu
Slide 25: Shares outstanding
Shares outstanding (millions) Q2 2016 Q2 2015 Weighted average ordinary shares outstanding, basic 272.92 287.77 Dilutive shares related to RSUs 0.45 1.08 Weighted average ordinary shares outstanding, including dilutive shares 273.37 288.85 25