Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Morgan Stanley China Summit 2016
17 slides from Aptiv's conference presentation, May 26, 2016
Slide 1: Morgan Stanley China Summit 2016
Morgan Stanley China Summit 2016 Majdi Abulaban Senior Vice President and President, Delphi Electrical/Electronic Architecture and President, Delphi Asia Pacific
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 company overview
Delphi company overview 1 01110119 19002 1100061-61331619 91101001 91101111 91101112 6110200! * 2 ~ =, DELPHI Innovation for the Real World
Slide 4: Delphi at a glance
Delphi at a glance Portfolio focused on relevant megatrends 2016 revenue 1 $16.8B 2016 operating margin1 ~13.5% Safe 2016 YTD cash returned ~$450M Green Engineers and scientists 20,000 IPO through Q1 ‘16 TSR2 ~270% Connected Global growth business focused on innovation 1 2016 guidance data from DLPH
Slide 5: Convergence: The catalyst for growth
Convergence: The catalyst for growth China Emissions: 117 CO2 g/km – 2020 EU Emissions: 95 CO2 g/km – 2021 US Fuel economy: 54.5 mpg – 2025 2010 2015 2020 2025 Assisted ADAS Semi Fully automation expansion automated automated Increasing levels of electrification Electrical architecture is an enabler
Slide 6: Complexity and content drive growth
Complexity and content drive growth 2015 2020+ 280 connections 25% to manage power, increase in diagnostics connections and signal – up to 350 communication Primarily 12V 1.5 miles of Increase in 67% increase powering the cabling per Electrification in cabling – up vehicle vehicle – up to 600V to 2.
Slide 7: Delphi growth drivers: next 5 years
Delphi growth drivers: next 5 years Incremental Segment opportunity Key growth drivers Electrical Architecture • Optimized vehicle architectures enabling high-speed connectivity ~$3B • Faster digital data demands advanced cabling solutions • Accelerating demand for electrification and diagnostics Po
Slide 8: China overview
Delphi China overview J 01110119 19020 °110003-6123161 o1101001 91101111 1101110 0110102! DELPHI Innovation for the Real World
Slide 9: Delphi has built significant presence in China
Delphi has built significant presence in China China presence Footprint 2010 2015 2018 Baicheng Revenue $1.7B $2.9B ~$4.4B Changchun Nantong Suzhou Shenyang Localized product lines 73% 90% 100% Beijing Wuhu Tianjin Yantai Tech centers 2 3 4 Shanghai Wuhan Chengdu Engineers 1,050 2,900 3,500 Chongqin
Slide 10: China economy is shifting to 'New Normal'
China economy is shifting to ‘New Normal’ GDP growth Service sector contribution Private consumption (Quarterly YoY growth, %) (%) ($ trillions) 12 60 3.5 Tertiary 10 50 (Service) 3.0 2.5 8 40 Secondary (Industrial) 2.0 6 30 1.5 4 Forecast: 20 5%-7% 1.0 2 10 Primary 0.5 (Agriculture) 2012 2013 2014
Slide 11: China still represents largest global growth opportunity
China still represents largest global growth opportunity Economic performance1 Vehicle production growth2 CO2 regulatory environment CO2 g/km S. America 250 Country GDP Growth S. America N. America 200 N. America USA $17.3T 2.4% 150 Europe CH 117 Europe 100 US 90 China $10.3T 7.3% EU 95 50 2005 2010
Slide 12: Delphi is growing faster than China market
Delphi is growing faster than China market China vehicle production Delphi China revenue (Millions of units) ($ billions) $5.5 31 28 25 $4.4 $2.9 2015 2018 2020 2015 2018 2020 Positioned to continue outperforming the market Source: March 2016 IHS Automotive 12
Slide 13: Driven by urbanization, growing middle-class
Driven by urbanization, growing middle-class Urbanization increasing Middle class growing China cities with >1.5M people Higher income households >$20k1 disposable income 107 49% 82 24% USA 2015 40 cities >1.5M 2015 2025 2015 2025 3x per capita consumption urban vs. rural Shifting to consumption-dri
Slide 14: Favorable demand trends to drive content growth
Favorable demand trends to drive content growth Premium/mid class production Vehicle segment growth Electric vehicles (Millions of units) (2015 YoY production growth) (Millions of units) 46% 8.8 7.9 34% 6.6 1.7 0.9 -6% -10% 0.2 -24% 2015 2018 2020 SUV MPV Sedan Other CV 2015 2018 2020 % of China: 27
Slide 15: Broad exposure to global, local OEMs
Broad exposure to global, local OEMs Global OEMs – 2016E revenue $2.3B (Millions of vehicles produced) 4.0 10 out of 10 are Delphi customers 2.0 0.0 GM VW Hyundai-Kia Renault/Nissan Ford Honda Toyota PSA BMW Daimler Local OEMs – 2016E revenue $1.0B (Millions of vehicles produced) 1.5 10 out of 10 1.
Slide 16: Right portfolio, flexible operations further drives growth
Right portfolio, flexible operations further drives growth Local competencies cover Flexible cost structure and local operations all Delphi portfolios • Most flexible cost structure ‒ 80% variable cost in China • Local design and development capabilities ‒ 3 tech centers growing to 4 by 2018 • Local
Slide 17: Key takeaways
Key takeaways Leveraging strong presence in China for next wave of growth “New normal” remains significant growth opportunity Well positioned in higher growth segments Flexible operating model to quickly adapt to market dynamics Disciplined cost focus translates into more margin expansion Right foot