Bank of America Merrill Lynch Auto Summit Conference April 16, 2014
Bank of America Merrill Lynch Auto Summit Conference
April 16, 2014
Jessica Holscott Vice President, Investor Relations
Forward-looking statements
3
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 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.
2013 highlights
4
Increased shareholder value
• Further rotated Western European footprint
• MVL integration running ahead of schedule
• Expanded margins and increased earnings
• Returned significant cash to shareholders
• Upgraded to investment grade by S&P and Fitch
2013 highlights New business bookings
5
Further increase shareholder value Continued strong bookings momentum
2013 bookings by region
North America
34% Europe
33%
Asia 29%
South America
4%
$13.6
$19.9
$23.5
$26.3 $26.6
2009 2010 2011 2012 2013
Note: Bookings = lifetime gross program revenues awarded, based upon expected volumes and pricing
$ billions
6
Operating income1 Revenue
$15.5 $16.5
2012 2013
EPS1 Operating income margin1
Delivering solid financial results
$3.84
$4.40
2012 2013
$ billions
1. Adjusted for restructuring and acquisition-related integration costs
10.8% 11.2%
2012 2013
2013 highlights Financial results
$ billions
$1.7
$1.8
2012 2013
EBIT margin EBITDA margin
1.8%
7.8%
11.2%
Peer range Peer average Delphi
16.4%
Industry-leading financial metrics
7
2013 highlights Financial metrics comparison
ROIC
12%
18%
34%
22%
Peer range Peer average Delphi
FCF % to EBIT
Note: Range and averages are for a peer group consisting of: ALV, BWA, HAR, JCI, LEA, TEN and TRW with outliers
removed (excludes Delphi); data represents Capital IQ actuals / J.P. Morgan North America Equity Research
7%
35%
58%
Peer range Peer average Delphi
78%
6.8%
9.9%
14.5%
Peer range Peer average Delphi
16.5%
Jeff Owens Executive Vice President and Chief Technology Officer
2014 priorities
9
Further increase shareholder value
• Disciplined above market revenue growth
• Further optimize operating footprint
• Accelerate introduction of advanced technologies
• Further expand margins and increase earnings
• Disciplined capital allocation
10
Introduction of advanced technologies driving revenue growth
Accelerate introduction of advanced technologies
ErgoMate™ Connection System
Aluminum Cable
Airbag Squib AK2
Connection System
Ammonia
(NH3) Sensor
Heated Tip
Cold Start System
Heavy Duty Diesel
Common Rail Systems
RACam
Wireless Consumer Device
Charging System
Significant investment in
technology development with
more than…
• $1.7B gross invested annually
in research, development &
engineering
• 19,000 scientists, engineers
and technicians worldwide
• 15 major technical centers
• 8,000 patents
• 60 major awards
Friction Stir Weld
Gasoline Direct injection
(GDi)
Drives additional shareholder value
Disciplined capital allocation
11
• Increase annual dividend payout from $0.68 to $1.00 per share Increase of approximately 50%
Total spend of ~$300M
• Board authorized a new $1.0 billion share repurchase program
~$200M remaining on current $750M program
Continue to opportunistically repurchase stock
Well-positioned to benefit from secular growth trends
Success factors – Active Safety and Infotainment
• Active presence/partnerships in Silicon Valley
• Scalable, powerful computing platforms leveraging leading SoC suppliers
• Experience executing high end, complex systems development and 3rd party software integration
• Complete portfolio: Infotainment, Driver Interface, Cloud, ADAS/Active Safety
• Cloud connectivity/security solutions to complement on-board content/services
12
Future Key Success Factors Delphi is well-positioned
• Strong development partner network
• Adaptable in-vehicle infotainment computing platform
• Ability to manage high complexity global development, integration, validation (i.e., automotive electronics)
• Multi-domain capability
• Capability to provide full range of on-board and off-board services
Safe
• European NCAP rewards Active Safety technologies
• Car-to-car/infrastructure
• Evolving China, Korea and US legislation
• Computing platforms integrated with satellite sensors
• Software defined features/value proposition
• Multiple sensors for higher-level automated features
• Major players: Autoliv, Bosch, Continental, Delphi
• Multiple niche competitors with single offerings
• Expect consolidation as market matures
• Consumers demanding increased content from OEMs
• Premium OEMs currently develop feature algorithms;
Volume OEMs to develop automated features
Active Safety market drivers/trends
Customers
Competitors
Technology
Regulatory
14
Active Safety has become strategic for OEMs and their brands
0
2
4
6
8
10
12
14
2013 2014 2015 2016 2017 2018 2019 2020
Global safety electronics market ($ billions)
Active Safety past the tipping point
Global safety electronics market ($ billions)
15
Active Safety segment driving growth
Active Safety
Global safety electronics market ($ billions)
Active
Safety
Active Safety past the tipping point
Global safety electronics market ($ billions)
Passive Safety
Active Safety
Regulated &
Incentivized
16
Active Safety segment growing at 35% CAGR to ~$14B
0
2
4
6
8
10
12
14
2013 2014 2015 2016 2017 2018 2019 2020
Active Safety
Regulated &
Incentivized
Leverages transition from passive to Active Safety
RACam
Asia
Europe
N. America
For 16 customers
Cumulative launches
5
16
74
2012 2013 … 2016
Mid Range Radar
Short Range Radar
Camera Systems
17
$0.2B incremental revenue
Connected
• Additional distraction regulations may emerge
• e-Call driver assistance to be in place in EU by 2015
• Car-to-car/infrastructure – Intelligent Transportation
• Powerful and scalable computing platforms
• Updatable, cloud-connected platforms
• Infotainment and Active Safety convergence
• Integration and software execution are differentiators
• New entrants competing for pieces of infotainment
• Fragmented market fosters industry consolidation
• Innovating close to consumers and trend-makers
• Promoting infotainment for brand differentiation
• Expanding “brought-in” and “embedded” functionality
Infotainment market drivers/trends
Customers
Competitors
Technology
Regulatory
19
Infotainment has become strategic for OEMs and their brands
0
2
4
6
8
10
12
14
16
2012 2013 2014 2015 2016 2017 2018 2019 2020
Connected Infotainment
Connectivity and computing drives Infotainment
Next Gen Connected
Computing Platform
In-vehicle
Wireless Network
Reconfigurable
Cluster & Displays
1st Gen Connected
Navigation
Annual revenue ($billions)
20
$14B market growing at ~25% CAGR
Leverages transition from entertainment to Connected Infotainment
Connected Infotainment Head Unit
Asia
Europe
N. America
S. America
For 10 customers
Cumulative launches
1 3
22
2012 2013 … 2016
21
$0.4B incremental revenue
Infotainment and active safety are converging
• Infotainment and safety feature sets are merging
Providing ADAS data from navigation to active safety components
360 camera integration (ADAS functionality) into infotainment computing platform
Similar base technologies for vision-based algorithms and video handling
‒ Object/pedestrian/sign detection
‒ Driver monitoring, eye tracking, gesture recognition
V2X functionality relevant in safety and infotainment worlds
Increasingly common computing platforms and operating systems
• Only a few have the combined infotainment and active safety expertise
Delphi, Conti, Bosch and Denso
22
Substantial market opportunity
In the future, we expect higher levels of integration
23
Multi Domain
Controller
V2X Module
Cluster Integrated
Center Panel
SW Domain Modules
+
Cloud
V2X
ADAS Module
Solutions that leverage synergies to improve cost and performance
OEM Multi Domain Controller – illustrative example
HW
S
W
Bu
ilt H
W &
Fla
sh
Im
age
File
Blockdiagramm
Schematics
Framework/Services Development
RTE generation
Application SW design
SW
Inte
gra
tion&
Valid
ation
OEM
S/W Integrator
SoC Supplier
Delphi
3rd party/OEM SW Technical Safety Concept
Fun
ctio
nal S
afe
ty R
equ
ire
men
ts
Design Verification
Application SW verification
Desig
n V
alid
ation
Syste
m In
tegra
tio
n: H
igh
Le
ve
l E
CU
Fu
nctio
na
l/V
ehic
le
Program Management
Requ
ire
men
ts M
an
age
ment
Cha
nge
Ma
na
ge
ment
Mechanical Design/PCB Layout
Thermal Design
Aurix FPGA SoC TBD
OS integration/BSP
Aurix FPGA SoC TBD
Ve
hic
le B
en
ch
Fun
ctio
na
l Test
DF
ME
A/
Pro
duct D
esig
n S
imula
tion
24
Delphi manages the overall system integration and program execution
Convergence provides opportunities
Increasing power, data, and computing architectures
2015 2020 2025 2010
Full cloud connectivity
Safety eco-system
Smartphone integration
Assisted automation
Conditional automation
Fully autonomous
Internet of things
Increasing personalization
25
Increasing vehicle content
2014 priorities
26
Further increase shareholder value
• Disciplined above market revenue growth
• Further optimize operating footprint
• Accelerate introduction of advanced technologies
• Further expand margins and increase earnings
• Disciplined capital allocation
Appendix
28
2012 2013
Net income attributable to Delphi $1,077 $1,212
Income tax expense $212 $256
Interest expense $136 $143
Other income, net ($5) $18
Noncontrolling interest $83 $89
Equity income, net of tax ($27) ($34)
Restructuring $171 $1,684
Asset impairments $15 $145
Other acquisition-related costs $9 $15
Adjusted operating income $1,671 $1,844
Revenue $15,519 $16,463
Adjusted operating income margin 10.8% 11.2%
Non-US GAAP financial metrics ($ millions)
29
2012 2013
Net income attributable to Delphi $1,077 $1,212
Adjusting items
Restructuring charges $171 $145
Acquisition-related integration costs $9 $15
Acquisition-related advisory and transaction costs $13 -
Asset impairments $15 -
Debt extinguishment costs $1 $39
Tax impact of adjusting items (a) ($45) ($40)
Adjusted net income attributable to Delphi $1,241 $1,371
Weighted average number of diluted shares outstanding 323.29 311.80
Diluted net income per share attributable to Delphi $3.33 $3.89
Adjusted net income per share $3.84 $4.40
(a) Represents the income tax impacts of the adjustments made for restructuring charges, acquisition-related integration costs, acquisition-related advisory and transaction costs, asset impairments and debt extinguishment costs, by calculating the income tax impact of these items using the appropriate tax rate for the jurisdiction where the charges were incurred
Non-US GAAP financial metrics ($ millions, except per share amounts)