Aptiv Plc · NYSE:APTV
Aptiv — Delphi Automotive — Q1 2016 Earnings Presentation
27 slides from Aptiv's earnings presentation, May 4, 2016
Slide 1: First quarter 2016 earnings call
May 4, 2016 First 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 • Q1 2016 in review Kevin Clark Chief Executive Officer • Summary Financial overview • Q1 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 • Another quarter of strong performance – Solid revenue performance driving 6% adjusted growth – Operating income growth, continued margin expansion – EPS up 12%; high-end of guidance – Returned $450 million of cash to shareholders through share repurchases and dividends • Confident in 2016
Slide 6: Current macro outlook
Current macro outlook Positive trends Neutral Challenges Consumer & South American Commodities regulatory demands production High-growth verticals: Eastern European ADAS, GDi, vehicle connectivity Pricing and electrical architecture production China Exchange rates Commercial production (Euro, GBP, B
Slide 7: Beijing Auto Show 2016
Beijing Auto Show 2016 Ford PSA Innovation, Collaboration, Excellence Great Wall Motor Jaguar Land Rover Fostering customer relationships in fastest growing region 7
Slide 8: Bookings growth
Bookings growth Continued bookings growth Q1 2016 bookings by region ($ billions) $26 $24 $24 Asia Americas $22 36% 42% $20 $18 $7 Europe 22% 2010 2011 2012 2013 2014 2015 Q1 2016 Strong first quarter bookings growth 1 At constant foreign exchange rates 8 Note: Bookings represent lifetime gross prog
Slide 9: Q1 2016 major launches
Q1 2016 major launches 2016 BMW X5 2016 Kia Cadenza 2016 Dodge RAM Truck Onboard charger for plug-in HEV Short range radar Infotainment head unit 2016 BMW Active Tourer 2016 Buick Excelle 2016 Lincoln MKX Powertrain components Integrated infotainment center panel Media control module Strong launch a
Slide 10: The Delphi solution
Creating intelligent electrification with 48V solution 48V electrification Enabling intelligent electrification Optimized electrical architecture is the foundation Improved functionality, better performance, greater efficiency Builds on electrical solution competency Software, software, software… •
Slide 11: Winning with Innovation
Winning with Innovation 2016 PACE Award Winner #18 2016 PACE Finalist 2016 PACE Finalist 2015 Innovation Award Dual Role Inverter Power Device for High Voltage GM Supplier Hub Electrified Vehicles Splice Connection of the Year Dual Role Chip Technology: Game changing technology Proprietary technolog
Slide 12: Delphi investment thesis
Delphi investment thesis Portfolio Organic growth Margin Capital management acceleration expansion allocation • Portfolio aligned to mega- • Growing faster than • Optimized cost structure • Balanced, predictable trends served markets cash deployment • Enterprise operating • Increasing exposure to •
Slide 13: Financial overview
Financial overview Joe Massaro Chief Financial Officer and Senior Vice President
Slide 14: Q1 2016 vs. Q1 2015
Q1 2016 vs. Q1 2015 ($ millions, except per share amounts) Q1 2016 Q1 2015 B/(W) Reported revenue $254 $4,051 $3,797 Growth % 7%/6%1 Operating income2 $509 $472 $37 Operating margin % 12.6% 12.4% 20 bps Net income3 $377 $353 $24 Earnings per share3 $0.15 $1.36 $1.21 Growth % 12% Record performance i
Slide 15: Revenue growth
Revenue growth Q1 2016 vs. Q1 2015 Year-over-year growth by region ($ millions) Reported Adjusted1 $162 Q1 2016 Q1 2016 $314 $4,051 $3,797 ($81) ($141) Europe 11% 9% N. America 7% 5% Asia 6% 8% S. America (37%) (24%) Total 7% 6% Q1 2015 Sales Acquisitions/ Price FX/ Q1 2016 growth divestitures commo
Slide 16: Operating income growth
Operating income growth Q1 2016 vs. Q1 2015 ($ millions) $20 $6 $2 $90 $509 $472 ($81) 12.6% 12.4% Q1 2015 Sales Acquisitions/ FX/ Net Price Q1 2016 growth divestitures commodities performance Solid flow through funding growth 16 Note: Operating income adjusted for restructuring and other special it
Slide 17: Segment financials
Segment financials Revenue1 Operating income2 ($ millions) $2,078 $2,175 ($ millions) Q12015 Q1 2015 Q1 2015 Q1 2015 Q12016 Q1 2016 Q1 2016 growth Q1 2016 Q1 2016 $1,135 $1,081 $1,135 Reported 10% 1% 6% $720 $640 $720 $640 Adjusted1 5% 5% 13% $2,078 $2,175 $305 rain E&S E/EA Powertrain E&S $264 $1,0
Slide 18: Earnings per share
Earnings per share Q1 2016 vs. Q1 2015 $0.07 $0.01 $1.36 $0.11 $1.21 ($0.04) Q1 20151 Operating2 Share FX/ Taxes/ Q1 20161 income repurchases commodities other Continued solid earnings growth 1 Adjusted for restructuring and other special items; see Appendix for detail and reconciliation to US GAAP
Slide 19: 2016 guidance
2016 guidance 2016 outlook Commentary (millions, except per share amounts) CY 2016 Q2 20163 Growth outpacing underlying market in every region Reported sales $16,600 - $17,000 $4,125 - $4,225 Accelerated growth from new launches throughout the year Adjusted growth1 8% - 10% 6% - 9% Monitoring global
Slide 20: Cash generation and deployment
Cash generation and deployment Operating cash flow growth Capital deployment ($ billions) Capital • Supporting customer launches Expenditures • Technology tools for increasing business efficiency $2.0 35-40% • Further optimizing global footprint $1.7 Dividends • Increased dividend payout to 15% of o
Slide 21: Value enhancing portfolio modifications
Value enhancing portfolio modifications Acquisition Divestiture Investment 2016 2015 2015 Multi-layer 3D display technology 2015 Software-as-a-service for data management 2014 Enhanced position in electrical architecture 2014 Unwired Software for dynamic cylinder deactivation Expanded connectivity p
Slide 22: Summary
Summary • Delivered continued outperformance in Q1 2016 – Strong growth and margin expansion yielding double-digit EPS growth – Relentless focus on structural cost initiatives, funding incremental growth investments • Balanced view of 2016 – High single-digit organic revenue growth – ~50 bps operati
Slide 23: Making it possible.
Making it possible. DELPHI Innovation for the Real World
Slide 24: Appendix
Appendix DELPHI
Slide 25: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q1 2016 Q1 2015 Net income attributable to Delphi $425 $209 Interest expense $41 $32 Other (income) expense, net ($4) $54 Income tax expense $75 $61 Equity income, net of tax ($6) ($5) (Income) loss from discontinued operations, net of tax ($108) $75 Net In
Slide 26: Non-US GAAP financial metrics
Non-US GAAP financial metrics ($ millions) Q1 2016 Q1 2015 Net income attributable to Delphi $425 $209 (Income) loss from discontinued operations attributable to Delphi, net of tax ($105) $79 Income from continuing operations attributable to Delphi $320 $288 Adjusting items: Restructuring $35 $16 Ot
Slide 27: Shares outstanding
Shares outstanding (millions) Q1 2016 Q1 2015 Weighted average ordinary shares outstanding, basic 276.62 290.90 Dilutive shares related to RSUs 0.42 0.91 Weighted average ordinary shares outstanding, including dilutive shares 277.04 291.81 27