Morgan Stanley Industrials & Autos Conference. September 16, 2014

Transcription

1 Morgan Stanley Industrials & Autos Conference September 16, 2014

2 Rodney O'Neal Chief Executive Officer and President

3 Jeff Owens Executive Vice President and Chief Technology Officer

4 Forward-looking statements This presentation, as well as other statements made by Delphi Automotive PLC (the Company ), contain forwardlooking statements that reflect, when made, the Company s current views with respect to current events 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. 4

5 Delphi at a glance Q LTM revenue: $16.9 billion Q LTM adj. OI 1 : $1.9 billion Q2 LTM 2014 adj. OI margin 1 : 11.4% Q2 LTM 2014 operating cash flow: $1.8 billion Engineers, scientists and technicians: 19,000 Annual investment in engineering: $1.7 billion Booked business since 2009: $122 billion Quality metrics of: % 5 1. Adjusted for restructuring charges, acquisition-related integration costs and asset impairment costs

6 Technology on a global scale Scans the road 3.5 million times per day Reduces 660 pounds of CO 2 emissions Reduces accidents by 30% 2.25 billion injection events Delphi ESR Delphi Brushless Fuel Pump Delphi vision and radar systems Delphi Diesel Fuel Injector Can operate in 1,600 F temps Open and close 1/2 billion times Up to 2 billion lines of code 1 billion instructions per second Delphi Exhaust Sensor Delphi GDi Fuel Injector Delphi Processors Delphi Engine Controllers 6

7 Key mega-trends Safe Green Connected Leading positions in growing markets 7

8 Why Safe matters 5X increase in Active Safety market by 2020 Delphi s Safe revenue Active Safety CAGR = ~30% Driving distracted is the equivalent of driving with a blood alcohol level of.08 1 Text messaging makes a crash up to 23x more likely 2 A text message takes a driver's eyes from the road for an average of 4.6 seconds, the equivalent of driving the length of an entire football field, blind An extra ½ second of warning can mitigate 60% of crashes Investing in tomorrow s technologies to reduce accidents

9 Active Safety past the tipping point $18 Global safety electronics market ($ billions) $16 $14 $12 $10 $8 Active Safety $6 $4 $2 Passive Safety Passive Safety $ Active Safety market grows to $14B at ~35% CAGR 9

10 Why Green matters 50% more vehicles on the planet in 10 years Delphi s Green revenue Delphi s products are 25x better at reducing emissions than technologies of the 1990s A GDi Fuel System can complete an injection 300x faster than the blink of an eye Delphi Brushless Fuel Pumps can save 660 pounds of CO 2 from being emitted over the vehicle s lifetime Exhaust from today s gas engines is cleaner than the ambient air in some parts of the world Investing in tomorrow s technologies to double fuel economy 10

11 Passenger car market rotates to Gas Direct injection Worldwide passenger car vehicles (millions) 120 Alternative fuels Fuel cell & electric Diesel GDi gasoline Diesel hybrid GDi hybrid 20 PFI gasoline PFI hybrid GDi market grows to $5B at ~17% CAGR 11 Source: IHS Jan 2014 and McKinsey estimates

12 Why Connected matters In a lifetime, the average person spends over 37,000 hours in a car 1 Delphi s Connected revenue in 5 of Delphi s engineers are software focused ~ $ ½ billion of software revenue today growing 3x over the next 7-8 years 1 in 4 vehicles built today contain Delphi Wiring or Connectors Today s typical vehicle has over 50 computers and 1 mile of Wiring Cable Investing in tomorrow s technologies for seamless connectivity Harvard Health Watch: 2. Excludes Mechatronics and Reception Systems

13 Connectivity and computing drives Infotainment growth Global Connectivity and Infotainment market ($ billions) $16 $14 $12 $10 $8 $6 $4 $2 1st Gen Connected Navigation Reconfigurable Cluster & Displays In-vehicle Wireless Network Next Gen Connected Computing Platform Connected Infotainment $ Connectivity market grows to $14B at ~25% CAGR 13

14 Convergence provides opportunities Assisted automation Conditional automation Safety eco-system Fully autonomous Increasing electrification, power and data drive architectures Increasing personalization Smartphone integration Full cloud connectivity Internet of things Increasing vehicle content 14

15 Financial metrics comparison 76.9% 2013 FCF% to EBITDA EPS CAGR % (26.5%) 46.0% 45.1% Tech peer range Tech peer average Delphi 26.2% 15.1% 2.4% Tech peer range Tech peer average Delphi 2013 ROIC % 36.8x P/E Ratio LTM 27.3x 17.9% 9.6% 1.6% Tech peer range Tech peer average Delphi 16.1x 17.1x Tech peer range Tech peer average Delphi Industry-leading financial metrics 15 Note: Range and averages are for a peer group consisting of: Sensata; Vishay; Amphenol; TE Connectivity; Texas Instruments; Osram; Freescale; STMicroelectronics; Infineon; Omron; Murata; Rohm; Hirose Electric; Alps Electric; TDK; Mabuchi Motor; GS Yuasa (excludes outliers; Data represents Capital IQ estimates) 1. Adjusted for restructuring and integration costs 2. Adjusted for restructuring, integration, asset impairment and debt extinguishment costs 3. Adjusted for restructuring, integration and asset impairment costs

16 Why invest in Delphi Well positioned in a transformed and growing industry Significant global scale Industry-leading cost structure Significant margin expansion and cash flow generation Balanced and disciplined capital allocation Industry-leading shareholder returns 16

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18 Non-US GAAP financial metrics ($ millions) Q Q Q Q Q LTM Net income attributable to Delphi $271 $298 $320 $382 $1,271 Income tax expense $72 $74 $75 $62 $283 Interest expense $34 $37 $35 $33 $139 Other (income) expense, net ($4) ($7) $16 ($3) $2 Noncontrolling interest $22 $23 $21 $24 $90 Equity income, net of tax ($8) ($8) ($8) ($10) ($34) Operating income $387 $417 $459 $488 $1,751 Restructuring $37 $50 $22 $55 $164 Other acquisition-related costs $4 $5 $2 $1 $12 Asset Impairments $3 $3 Adjusted operating income $428 $472 $483 $547 $1,930 18