CECP CEO Investor Forum Kevin Clark President and Chief Executive Officer
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
Delphi Overview 15 Major Technical Centers 46 126 20,000 166,000 Countries Manufacturing Sites Engineers, Scientists Employees and Technicians $1.5billion $16.7billion $25.6billion Annual Engineering 2016 Revenue 2016 Bookings Investment Figures from Delphi 2016 Annual Report 3
Challenges Increasing 2050 +70% +40% 5x 4x 3x emissions population freight cost travel time Megatrends create new challenges for urban mobility Source: “Autonomous Vehicles and Cities: Document for Discussion” by The Boston Consulting Group 4 Statistics are based on urban area environments
Delphi’s Strong, Consistent Vision And Strategy Identity Vision Strategy Technology company focused on mobility solutions Be the partner of choice by providing our Develop advanced technologies that make the world customers with intelligent mobility solutions more safe, green, and connected, and that drive top quartile shareholder returns Long-Term Strategic Objectives Growth Innovation Competitive position Sustainable Pursue profitable growth Develop market Increase scale and competitive advantage relevant technologies operational excellence Strategic Action Plan Strengthen the business foundation Gain scale in current platforms Pursue future platforms • • • Optimize cost structure Optimize product portfolio Grow engineered components • • • Increase operating efficiency Increase scale and relevance Penetrate adjacent markets • • • Diversify revenue mix Leverage enterprise capabilities Develop new business models • • Enhance operating capabilities Enhance software capabilities Leading and living Delphi values Ethics & Compliance – Health & Safety – Respect – Corporate Social Responsibility 5
Aligned To Safe, Green And Connected Megatrends 2010 2015 2020 2025 Assisted Conditional Safety Fully automation automation eco-system autonomous Increasing levels of Green Technologies Increasing Full cloud Internet Smartphone integration personalization connectivity of things Portfolio aligns to key megatrends 6
Safety Vision Employ state-of-the-art technologies to enable the Mission safest and most accessible mobility experience possible Utilizing advanced technology and software and systems integration capabilities, Delphi develops Technology innovative Active Safety and AutonomousDriving systems A society that sees ZERO fatalities, ZERO injuries Goal and ZERO accidents 7
Green Vision Ensure the world of tomorrow is even better than Mission today; blue skies, clean air and water, healthy cities and green forests Employ advanced combustion and electrification Technology technologies and systems optimization knowledge to enable advanced propulsion systems ZERO emissions: minimize the vehicle’s total lifecycle Goal impact on the environment 8
Connected Vision Build on Delphi’s heritage of telematics, navigation, Mission infotainment and user experience to enable safe, productive and enjoyable journeys Apply ubiquitous connectivity, software and data management solutions to effortlessly connect Technology passengers to the vehicle and the environment around them Seamless integration between the car, its Goal environment and its passengers 9
Business Segments Electronics Electrical/Electronic Powertrain & Safety Architecture Gasoline Cable Active Safety, Engine Management Aftermarket Electronic Management Controls Electrical Distribution $9.3B $4.5B Systems $3.0B Power Connection Electronics Systems Diesel Engine Software Infotainment & Management & Data Services User Experience Industry-leading portfolio of advanced technologies 10
Performance Based Executive Compensation Measurement Criteria Commitment to Pay-For-Performance Aligning with shareholder interests 2016 CEO Targets 2016 NEO Targets • 90% of CEO target comp performance based • 78% of NEO target comp performance based Annual Net Income = 50% RONA = 50% Compensation • Review pay-for-performance alignment annually Cash Flow = 40% Net Income= 25% Revenue = 10% Relative TSR = 25% • 98% voted in favor at 2016 Annual Meeting 2011 2016 • Designed to attract, retain and motivate leaders Long-Term • 100% RSU based Incentives CEO’s LTI = 60% CEO’s LTI = 75% • Targets executive comp at peer group median NEO’s LTI = 49% NEO’s LTI = 60% Incentives align to generating long term value 11
Corporate Social Responsibility People Product Planet People Strategic suppliers certified Global water consumption by ISO 14001 Kiloliters perperson Goal: 100% certified required for all new suppliers 95% 20.8 19.7 16.9 15.4 of Delphi employees 95% 95% 93% completed online ethics training in 2015 Goal: 100% completion 2013 2014 2015 2013 2014 2015 2020 Goal Global waste disposal Lost work day case rate Supplier code of conduct Kilograms per person per 100 employees Goal maintained: 100% signatories required for all new suppliers Ultimate goal: Zero 151 0.10 121 107 0.07 97 0.05 100% 100% 99.6% 2013 2014 2015 2020 Goal 2013 2014 2015 2013 2014 2015 Delphi embodies its values 12
Strong Execution Track Record Revenue Operating margins Cash flow RONA % of sales 2 $ billions Operating cash flow, $ billions 5% ~500 bps CAGR 1 2x+ ~11% increase increase $16.7B above peers $2.1B 13.5% 38.2% $12.3B 27.0% 8.8% $1.0B Peer Average DLPH 2016 2010 2017E 2010 2017E 2010 2017E 2016 RONA RONA Solid financial performance 1 At constant foreign exchange and commodity rates; excludes impact of acquisitions and divestitures 2 Adjusted for restructuring and other special items 13
Execution Track Record: Capital Deployment Today IPO 2017 2011 37% | CAPITAL EXPENDITURES • Supporting continued organic growth, new programs • Consistent spend at ~5% of sales 30% | Mergers & Acquisitions • Disciplined reinvestment in business to drive growth and increase returns Delphi • Strategic acquisitions accretive to shareholder value Capital Deployment 2010 – 2017E 10% | DIVIDENDS • Paid a competitive dividend 23% | SHARE REPURCHASES • Maintained investment grade ratings • Approximately $1B of share repurchase authorization remaining Smart allocation generates strong financial returns 14
Shareholder Return Outperformance YTD 3 Year Since IPO Total Shareholder Return 403% 52% 50% 38% 34% 231% 18% 132% 13% S&P 500 Peers DLPH S&P 500 Peers DLPH S&P 500 Peers DLPH Delphi outperforms market and peers Peer Group includes – Adient, BorgWarner, Tenneco, Autoliv, Lear, Continental, Magna, Valeo, Sumitomo, Denso Corp, Aisin Seiki, Visteon 15 Returns through September 15, 2017
Pace Of Change Accelerating Today IPO 2025 2010 2015 2020 ACTIVE AUTONOMOUS SAFE SAFETY DRIVING ELECTRIFIED ELECTRIFIED GREEN VEHICES VEHICES SOFTWARE SMARTPHONE CLOUD DEFINED CONNECTED INTEGRATION CONNECTIVITY PLATFORM TRADITIONAL & NEW OEMs TRADITIONAL & NEW OEMs MOBILITY PROVIDERS END MARKETS TRADITIONAL OEMs MOBILITY PROVIDERS DATA CONSUMERS Disruption in automotive end markets increasing exponentially 16
Powertrain Spin: Adapting To Changing Environment Well-positioned to serve customers’ evolving needs Distinct growth drivers and investment rationale Increasedalignment to evolving industry trends Electronics & CockpitControllers, Electrification Focused capital allocation Displays & Connectivity EEA/ E&S Powertrain Software,Security $12.5B $4.5B &Services Increased flexibilityto pursue strategic and tactical plans Electrical Engineered Powertrain Architecture Components Aftermarket Products Two focused companies well-positioned to win in changingenvironment 17
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