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Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015

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Page 1: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer

November 18, 2015

Page 2: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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.

2

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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

Page 4: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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

4

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Strengthening technology portfolio

Track record of seamless integration

5

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

Page 6: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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

6

Transactions that increase shareholder value

Page 7: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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

7

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

Page 8: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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

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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

Page 10: Barclays Global Automotive Conference · 11/18/2015  · Barclays Global Automotive Conference Kevin Clark President and Chief Executive Officer November 18, 2015 . ... position in

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

10

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