Delphi General
Delphi General
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Strategic priorities
Disciplined revenue growth
• Enhance portfolio of market relevant products
• Balanced regional growth
• Further diversify customer base and platform mix
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Safe, green and connected technology trends
China Emissions: 117 CO2 g/km – 2020 EU Emissions: 95 CO2 g/km – 2021 US Fuel economy: 54.5 mpg – 2025
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CES highlights
Automated driving Electrification Connected car/Infotainment
• Demonstrated Delphi and • 48V mild hybrids deliver ~70% • Connected car and V2X
Mobileye’s CSLP automated CO2 emissions reductions of full functionality penetration presents
driving platform hybrids at ~30% cost growth opportunity
• Production ready in 2019, fastest • Two programs launching with • Immersive and seamless user
automated system to market in European OEMs in late 2017 experience delivered instantly
the industry through rich, smooth graphics
5 Video Link
Active safety evolving to include more automation
100% 10x
80%
Safety benefit
Cost
20% Safety benefit
Cost
1x
Level 2 automation delivers 80% of the benefit for 20% of the cost of full automation
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Select Active Safety launches
Volvo XC90 Porsche Cayenne Audi A8
RACam Multi-Domain Controller Multi-Domain Controller
Radio
Integrated Controller
Cockpit
Controller
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Electrification expected to grow
Electrification increases in the next 10 years: ~27M by 2025
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Battery Electric
BEVs 25
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Vehicles (millions)
Plugin Hybrids
PHEVs 15
10
Full Hybrids
HEVs
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48 Volt -
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Mild Hybrids
48V Mild Full PHEV BEV
12 Note: Content per vehicle multiples calculated off ~$300 content on a base gasoline GDi, 2-step variable valvetrain internal combustion engine in 2023 and beyond
Portfolio evolution continues
Acquisition Divestiture Investment 2017
2016
2015 Over-The-Air update
technology
2015
Multi-layer 3D
2015 display technology
Software-as-a-service for
2015 data management
Reception Enhanced position in
2014 electrical architecture
Systems Software for dynamic
divestiture cylinder deactivation
Refocused 2016
E&S portfolio 2016
Expanded connectivity Mechatronics
products portfolio 2015
Thermal divestiture divestiture
2015
2015 China JV
Refocused
2014 Thermal divestitures Refocused E&S portfolio
2012 Wholly owned and Software for core portfolio
Un Korean JV automated driving
(MVL) Solid state
Refocused LiDAR startup
Expanded connectivity core portfolio
Strengthened leading products portfolio
position in connectors
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Broadening business model
Recent announcements Future opportunities
• Broadens our “Big Data” capabilities • Scalable vehicle software, programming and OTA
updates enhances Services business revenues
• Leverages real-time data and the cloud to • Expanding usage with global OEMs via integration
identify and solve issues across product portfolio
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Returning value to shareholders
Share repurchase history TSR since IPO
($ billions) (Total shareholder return)
$1.2 235%
~$5.0B
cash $1.0
returned to
shareholders 180%
2011 – 2016
~$0.6
$0.5
$0.4
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Deutsche Bank Global Auto Industry Conference
Joe Massaro
Chief Financial Officer and Senior Vice President
Performance highlights 2010-2016
Revenue Operating income2 EPS3
($ billions) ($ billions)
$12.3
13.2%
$1.1
8.8%
$0.84
$1.0 ~$16.5
~$16.2
($0.3)
$0.7
$15.2
($0.4)
~35% ~15%
CAGR2 CAGR2
2011 2012 2013 2014 2015 2016
1
~$5B ~$7B
Reported bookings Adjusted bookings
17.6% ~$1.3
~17.3%
<17% ~$1.2
$1.2
49.1%
~48.0% <48%
2015 2016E 2017E
% advanced
engineering ~18% ~20%
2015 2016E 2017E
21 1 Represents gross engineering expenditures less rebills to customers and government agencies; 2015 gross engineering was $1.5B
Breakeven analysis
2017E cash flow breakeven summary Management priorities
Actual
Breakeven
• Manufacturing footprint rotation
22 1 Adjusted for restructuring and other special items, see appendix for details
Capital structure
WeightedDec
($ millions) average
31, 2015 maturity
Dec 31, 2016E Weighted average maturity Free cash flow4
(years) ($ millions)
Cash1 $536 ~$800 ~3 year
9.4
increase
6.6
Debt $4,008 ~$4,000
~$1,100
~$1.7
• Increased dividend payout to ~15% of operating cash flow
Dividends
~$1.0 • Increased annual dividend to $1.16
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Portfolio realignment
Acquisition/ 2015-2018 2015-2018 Synergy
Explanation
divestiture date revenue CAGR EBITDA Margins achievement
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Exchange rate sensitivity
Key exchange rate index Absolute rate changes Revenue 1% ∆ sensitivity
105 1.40
1.30
100 1.20 ~$50mn
1.10
95 1.00
Jan-14 Jan-15 Jan-16 Jan-17
90
1.80
85 1.60
~$5mn
1.40
80
1.20
75 Jan-14 Jan-15 Jan-16 Jan-17
7.00
70 6.75
6.50 ~$30mn
6.25
6.00
EUR GBP CNY Jan-14 Jan-15 Jan-16 Jan-17
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Delphi investment thesis
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Making it possible.
Appendix
Non-US GAAP financial metrics
($ millions) 2015 2010
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Non-US GAAP financial metrics
($ millions) 2015
Net income attributable to Delphi $1,450
Income from discontinued operations attributable to Delphi, net of tax ($262)
Income from continuing operations attributable to Delphi $1,188
Adjusting items:
Restructuring $177
Other acquisition and portfolio project costs $47
Asset impairments $16
(Gain) loss on business divestitures, net $8
Debt extinguishment costs $58
Transaction and related costs associated with acquisitions $43
Contingent consideration liability fair value adjustment ($7)
Tax impact of adjusting items (a) ($35)
Adjusted net income attributable to Delphi $1,495
Weighted average number of diluted shares outstanding 286.64
Diluted net income per share from continuing operations attributable to Delphi $4.14
Adjusted net income per share $5.22
(a) Represents the income tax impacts of the adjustments made for restructuring and other special items, as well as the elimination of the net impact of deferred tax
asset valuation allowance changes in estimates of $12 million in 2015.
The company’s guidance was determined using a consistent manner and methodology
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Non-US GAAP financial metrics
(millions) 2015
Net cash provided by operating activities from continuing operations $1,667
Capital expenditures ($704)
Free cash flow $963
The company’s guidance was determined using a consistent manner and methodology
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