barclays global automotive conference · 11/18/2015 · barclays global automotive conference...
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Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer
November 18, 2015
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 performance. Such forward-looking statements are
subject to many risks, uncertainties and factors relating to the Company’s operations and business environment,
which may cause the actual results of the Company to be materially different from any future results. All
statements that address future operating, financial or business performance or the Company’s strategies or
expectations are forward-looking statements. Factors that could cause actual results to differ materially from
these forward-looking statements are discussed under the captions “Risk Factors” and “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s filings with the
Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible
for us to predict these events or how they may affect the Company. It should be remembered that the price of
the ordinary shares and any income from them can go down as well as up. The Company disclaims any
intention or obligation to update or revise any forward-looking statements, whether as a result of new
information, future events and/or otherwise, except as may be required by law.
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Delphi at a glance
1 2015 guidance data from DLPH 3Q 2015 earnings call
2 Total shareholder return (TSR) is defined as capital gains plus dividends
2015 revenue1
2015 operating margin1
2015 YTD cash returned
Engineers and scientists
IPO through Q3 ‘15 TSR2
$15.0B
~13%
~$1.2B
20,000
~270%
3
Portfolio focused on relevant megatrends
Safe
Connected
Green
Business model that delivers value
Strategic imperatives
• Enhance portfolio of market relevant products
• Continue rotation to high-growth products and regions
• Further diversify customer base and platform mix
• Maintain investment grade ratings
• Increase investment in organic and acquisition growth
• Continue to return cash to shareholders
Disciplined
revenue growth
• Continue footprint rotation to best cost countries
• Further integrate EOS across the enterprise
• Increase leverage in operating model
Margin expansion
Increased cash flow
Increase shareholder value
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Strengthening technology portfolio
Track record of seamless integration
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Strategic
Operating
Financial
• Enhance competitive position
• Diversify customer and regional mix
• Solid operating systems
• Strong management team and cultural fit
• High confidence integration plan
• Enhance growth and return profile
• Accretive to earnings and return profile
Q4 2012 +20% Margins significantly over plan
Synergies in excess of plan
Q4 2014 +20% Bookings ahead of plan
Synergies in excess of plan
Q4 2014 +20% Bookings ahead of plan
Synergies in excess of plan
Acquisition
date
2015 EBITDA
margins Explanation
Note: FCI includes Connection Systems product line results
Post-acquisition performance Areas of focus
Value enhancing portfolio modifications
Acquisition
Investment
Divestiture
Q2 2015: Quanergy Solid state
LiDAR startup
Q2 2015:
Ottomatika Software for
automated driving
Q3 2015:
HellermannTyton Enhances position in
electrical architecture
Q1 2015:
Thermal divestiture Refocused core
portfolio
Q2 2015: Tula Software for dynamic
cylinder deactivation Q2 2015:
Reception Systems
divestiture Refocused E&S portfolio
Q4 2015:
Thermal joint
venture divestitures Refocused core portfolio
Q3 2014:
Antaya/Unwired Expands connectivity
products portfolio
Q2 2012: MVL Strengthens and
broadens leading
position in connectors
Q4 2015:
Control-Tec Software-as-a-service
for data management
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Transactions that increase shareholder value
2015 portfolio investments and acquisitions
Quanergy
investment
Ottomatika acquisition
• Developing affordable LiDAR sensors
• State-of-the-art solid state chipset
• Enables advanced autonomous driving functionality
Tula investment
• Next generation cylinder deactivation software
• Technology improves fuel efficiency and reduces emissions
• Broad applicability across engine sizes and types
• Industry-leading vehicle decision making software
• First mover in technology development
• Sensor fusion for current and next generation hardware
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HellermannTyton acquisition
Control-Tec acquisition
Enhances portfolio performance
• Application tools to assist with cable management systems
• Highly engineered product with a high cost of failure
• High-growth, high-margin business profile
• Highly scalable software-as-a-service business model
• Further penetration opportunities with new and existing customers
• Expanding current offerings into new lines of business
Focused on advanced technologies
Electrical Architecture
47%
Powertrain 27%
Electronics and Safety
17%
Thermal 9%
Investing in high margin technologies
2017 revenue distribution 2014 revenue distribution
Electrical Architecture
51%
Powertrain 29%
Electronics and Safety
20%
Note: 2017 includes the impact of HellermannTyton 8
Performance on track with long-term outlook
9 Note: 2015 represents guidance data from DLPH 3Q 2015 earnings call
Excludes HellermannTyton acquisition
Strong growth and operating leverage drive double digit EPS growth
~6 pts
~7 pts
2015 2016
~13.0%
~13.5%
2015 2016
Expanding operating margins Accelerating growth over market
Why Delphi will outperform
Well positioned in a transformed and growing industry
Global scale
Industry-leading cost structure
Strong margin expansion and cash flow generation
Balanced and disciplined capital allocation
Industry-leading shareholder returns
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