delphi - kevin clark - keynote

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Kevin P. Clark Senior Vice President and Chief Financial Officer

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Page 1: Delphi - Kevin Clark - Keynote

Kevin P. Clark Senior Vice President and

Chief Financial Officer

Page 2: Delphi - Kevin Clark - Keynote

Background

P

1993-1994 Automotive

1995-2006 Healthcare

2007-2009 Private Equity

2010-Present Automotive

Years Industry

2

1987-1993 Automotive

Page 3: Delphi - Kevin Clark - Keynote

S&P 500: 1987-Present

P

3

200

400

600

800

1,000

1,200

1,400

1,600

Source: Capital IQ

Recession +

Persian Gulf War

Recession +

Tech Bubble Burst

“Great” Recession +

Financial Crisis

September 11 +

War on Terror, Afghanistan

S&P 500 Index

Points

Page 4: Delphi - Kevin Clark - Keynote

Fisher Scientific Overview

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4

Background

– 1981-1991: Subsidiary of AlliedSignal Corporation and Successors

– 1991: IPO

– 1998: Leveraged Recapitalization

– 2001: Re-Entered Public Markets

– 2006: Merged with Thermo Electron

Originally a North American Distributor of Scientific Research Products

– Systematically Transformed the Company into a Global Provider of Products, Services and

Technology through 65 Transactions

Page 5: Delphi - Kevin Clark - Keynote

Fisher Stock Price Appreciation: 1991-2006

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1 Represents Fisher Scientific and S&P 500 performance from December 1991 IPO to November 2006 merger with Thermo Electron. 2 Financial data excludes non-recurring items, acquisition and integration costs and 123r expenses. 3 Twelve months ended September 30, 2006. 4 Includes Lab Workstations. Lab Workstation’s 2006 revenue assumed to be $50.5 million per quarter (Q4 2005 run rate) and 2006 operating income assumed to be breakeven. 5 Free cash flow is defined as operating cash flow less capital expenditures.

26% Annualized Return vs. S&P 500 Return of 9%1

($ mm) 19912 20062,3,4

Sales $758 $5,962

OI 37 821

OI% 5% 14%

FCF5 $42 $497

Market Cap $218 $11,888

Page 6: Delphi - Kevin Clark - Keynote

Liberty Lane Partners Overview

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6

Background

– Founded in 2007

– Target Middle Market Companies

– Concentrated Portfolio Approach

– Significant Partner Capital Commitment

Investment Strategy Focused on Long-Term Value Creation

– Profit and Cash Flow Growth Opportunities

– Capital Structure and Tax Planning Initiatives

10 Portfolio Investments Creating 5 Business Platforms

– Industrial Distribution

– Healthcare Distribution

– Pharmaceutical Services

– Specialty Materials

– Business Services

Page 7: Delphi - Kevin Clark - Keynote

Delphi Highlights

Successful Transformation into a Premier Global Automotive Supplier

Positioned to Benefit from Volume and Vehicle Content Growth

Advanced Technologies Delivering Safe, Green and Connected Products

Flexible and Lean Cost Structure with a Low-Cost Footprint

Ability to Invest for Growth Across all Points of the Industry Cycle

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Page 8: Delphi - Kevin Clark - Keynote

1 Since 2005 2 Excludes one non-qualified, unfunded, closed and frozen pension plan with a liability of $83M as of 12/31/10 3 As of 12/31/11

Delphi’s Transformation

Business Portfolio Restructuring

Right-Size Cost Structure

Address Legacy Costs

Right Products, Customers & Geographies

• Selectively reduced business units from 27 to 101

• Core product lines reduced from 119 to 331

• Streamlined segments from 7 to 41

• 91% of hourly workers in low cost countries

• Reduced global headcount by ~22% to 143K1

• Reduced U.S. workforce by ~88% to 5K1

• Closed over 70 sites1

• Eliminated U.S. Defined Benefit Pension Liability2

• Eliminated U.S. OPEB Liability

• No single customer over 19% of sales3

• N.A. market reduced to 32% of sales3

• Emerging markets increased to 23% of sales3

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Page 9: Delphi - Kevin Clark - Keynote

Industry Leading Cost Structure

$ Billions

EBITDA breakeven level assumes constant product mix

Reduced EBITDA Breakeven Level EBITDA Margin – Peak to Trough

H1 2012 14.3%

X

Lean Cost Structure Creates Significant Operating Leverage

$16.0

$10.3

2011 Revenue 2011 Breakeven Sales Level

$5.7B Above

Breakeven

Trough

~9%

~15%

9

Peak

Page 10: Delphi - Kevin Clark - Keynote

-50%

0%

50%

100%

150%

200%

250%

300%

350%

S&P 500 Auto Suppliers Delphi

Delphi Stock Price Performance: 2009-Present

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Peer Group includes - Denso Corp, BorgWarner, Aisin Seiki, Continental, Autoliv, Federal-Mogul, Johnson Controls, Lear Corp, Magna International, Sumitomo Electric, TRW Automotive, Valeo, Visteon, Harman International and Tenneco Returns as of 9/14/12

Since Since

IPO Emergence

Auto Suppliers +20% +59%

S&P 500 +21% +39%

Delphi +49% +318%

Page 11: Delphi - Kevin Clark - Keynote

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Need to be Actively Engaged in the Business

An Ownership Mentality

Page 12: Delphi - Kevin Clark - Keynote

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Need to be Actively Engaged in the Business

Must Understand the Markets Served

An Ownership Mentality

Page 13: Delphi - Kevin Clark - Keynote

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Need to be Actively Engaged in the Business

Must Understand the Markets Served

Need to Provide a Clear Line of Sight into the Business

An Ownership Mentality

Page 14: Delphi - Kevin Clark - Keynote

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Need to be Actively Engaged in the Business

Must Understand the Markets Served

Need to Provide a Clear Line of Sight into the Business

Understand that Management Matters

An Ownership Mentality

Page 15: Delphi - Kevin Clark - Keynote

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Need to be Actively Engaged in the Business

Must Understand the Markets Served

Need to Provide a Clear Line of Sight into the Business

Understand that Management Matters

Focus all Activities on Increasing Shareholder Value

An Ownership Mentality

Page 16: Delphi - Kevin Clark - Keynote

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