j.p. morgan auto conference...aug 12, 2015 · europe 52% americas 25% electrical/ datacom 50%...

J.P. Morgan Auto Conference Kevin Clark President and Chief Executive Officer

August 12, 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.

2

Strategic imperatives remain unchanged

• 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

3

Safe, Green and Connected technologies driving growth

Demand for

active safety features Creating a

cleaner planet Demand for increased

connectivity

Automated driving

Regulations for

increased fuel economy Seamless smartphone

integration

4

Providing solutions to our customers’ challenges

Actively managing our product portfolio

Electrical Architecture

47%

Powertrain 27%

Electronics and Safety

17%

Thermal 9%

Investing in technologies that maximize profitable growth

2017 revenue distribution 2014 revenue distribution

Electrical Architecture

51%

Powertrain 29%

Electronics and Safety

20%

5 Note: 2017 includes the impact of HellermannTyton

Strengthening our technology portfolio

6

Acquisitions that increase shareholder value

Q2 2012: MVL Strengthens and

broadens leading

position in connectors

Q3 2014: Unwired Expands connectivity

products portfolio

Q3 2014: Antaya Strengthens and

broadens leading


Acquisition

Strong performance post acquisition Acquisition

date

2015 revenue

growth

2015 EBITDA

margins Explanation

Q4 2012 ~6% +20% EBITDA margins significantly over plan

Synergies in excess of plan

Q4 2014 ~40% +20%

Bookings ahead of plan

Revenue growth well over plan


Q4 2014 ~6% +20% Bookings ahead of plan


Delivering incremental value through seamless integration

Note: FCI includes Connection Systems product line results 7


8

Increasing focus on high-growth, high-margin products


broadens leading



products portfolio

Q1 2015:

Thermal divestiture Refocused core portfolio

Q2 2015:

Reception Systems

divestiture Refocused E&S portfolio


broadens leading


Acquisition

Divestiture

Realigning product portfolio

9

Areas of acquisition focus Portfolio actions

Strategic

Operating

Financial

• Strengthen product portfolio

• 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

• Divested Thermal business

– 2010 – 2014 revenue growth1 of 1%

– Transaction value of $727M (9.5x EBITDA)

• Divested Reception Systems product line

– 2010 – 2014 revenue growth1 of (6%)

– Transaction value of $70M (6.5x EBITDA)

Proceeds reinvested into high-growth, high-margin acquisitions

1 Adjusted for FX and commodities


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

10

Investments and acquisitions that increase shareholder value


broadens leading



products portfolio

Q1 2015:

Thermal divestiture Refocused core portfolio

Q2 2015: Tula Software for dynamic

cylinder deactivation Q2 2015:

Reception Systems

divestiture Refocused E&S portfolio


broadens leading


70

90

110

130

150

170

190

210

230

250

270

2000 2005 2010 2015 2020 2025

20

25

30

35

40

45

50

55

60

65

2000 2005 2010 2015 2020 2025

Government regulations becoming more stringent

China

116

U.S.

107

EU

95

China

50.1 U.S.

54.5

EU

64.8

11

Technology solutions will solve these challenges

Grams of CO2 per kilometer Miles per gallon

Tula minority investment

Enhances performance of Valvetrain portfolio

Next generation cylinder deactivation software

Technology improves fuel efficiency and reduces emissions

Helps achieve government regulations

High value, low cost technology

12

Strategic benefits Dynamic skip fire improves fuel economy

Broad applicability across engine sizes and types

Vehicles are becoming more complex

Source: Roland Berger and Delphi internal estimates

Increasing vehicle software creates content opportunity

13

15

20

25

30

35

40

45

2006 2018

(millions)

-

50,000

100,000

150,000

200,000

250,000

2011 2015 2019

Lines of code Delphi ships per day Average number of computers in a vehicle

Quanergy minority investment

Enhancing active safety capabilities

Leader in 3D sensing

Provides high precision data in real world conditions

Developing affordable LiDAR sensors

State-of-the art solid state chipset

Enables advanced autonomous driving functionality

14

Developing smart sensing solutions Strategic benefits

Ottomatika acquisition

Strengthening competitive position in autonomous driving

Industry-leading vehicle decision making software

First mover in technology development

Spin-out of Carnegie Mellon University

Modular and scalable solutions

Sensor fusion for current and next-gen hardware

15

Partnership on coast-to-coast automated drive Strategic benefits

Increasing electrical architecture content

Cable/Wiring Connectors Digital Data

2.5 miles

1.5 miles

Electrification

+67%

increase +25%

connectors

350

280

+2,200%

increase

Up to 1.5

gigabit/sec

65 megabit/sec

+50x

voltage

Up to 600 V

12 V

2015

2020

Enables

content growth

Requires architecture

content

Cable Management Systems

16

Electrical architecture is the foundation for vehicle content growth

HellermannTyton business overview

2014 segment revenue mix

2014 regional revenue mix

Asia 23%

Europe 52%

Americas 25%

Electrical/Datacom

50%

Automotive 50%

2015 consensus sales €679

% growth ~14%

Historical EBITDA margins ~20%

Run-rate synergies $50+ million

Employees ~4,000

Manufacturing facilities 12

Financial profile

Track record of growth

3.7% 3.0% 3.9%

6.9% 6.4%

9.6%

17.0%

FY 2003 - FY 2014 FY 2007 - FY 2014 FY 2010 - FY 2014

Auto production index

HellermannTyton revenue

HellermannTyton automotive revenue

Auto production source: July 2015 IHS Automotive; includes medium/heavy duty trucks 17

Sustainable growth and margin profile

(€ millions)

Delphi purchases as a % of revenues ~5%

Delphi purchases as a % of revenues ~5%

Strengthens our existing cable management portfolio

Highly engineered product with a high cost of failure

Protection & fixings

Network connectivity

Identification

Installer solutions

• Application tools to assist with cable management systems

• Test instruments and tools

• Structured communication cabling systems

• Printing systems and software

18

HellermannTyton’s products in action

Case study 2:

Aerospace OEM

weight reduction

Case study 3: Vehicle platforms increasing content

• Worked with airplane OEM to redesign harness brackets resulting

in a 60% weight reduction per piece and better performance

• Advanced material technology to contribute to light-weight design

19

Products are engineered-in to OEM designs

Case study 1: Off-highway vehicles

in North America

• Worked with North American OEM to reduce vehicle weight and

increase fuel economy

• 86% weight reduction per piece by using HellermannTyton products

• Worked with European OEM to design improved harness routing for

new global platform

• Parts content increased ~200% on new platform with European

production followed by global roll out

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

20

j.p. morgan auto conference...aug 12, 2015 · europe 52% americas 25% electrical/ datacom 50%...

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