Delphi Q4 2016 Earnings Overview
Delphi Q4 2016 Earnings Overview
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Agenda
Operations overview
• Q4 2016 summary Kevin Clark
Chief Executive Officer
• Strategic update
Financial overview
• Q4 2016 results Joe Massaro
Chief Financial Officer
• 2017 guidance
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Operations overview
Kevin Clark
President and Chief Executive Officer
Q4 and 2016 highlights
Revenue growth Operating income Earnings per share
• New business bookings of $26B for the year driven by large conquest wins
• Confident in 2017 outlook – strong growth in sales, earnings and cash flow
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Power of data analytics
Real world application
• Leverages real-time data and the cloud • Scalable vehicle software enhances • Provider of telematics, analytics and
to identify and solve issues Services business revenues via OTA update technologies
expanding usage with global OEMs
• Continued organic and inorganic
• Broadens our “Big Data” capabilities investment in software and service • Opportunity to drive market adoption
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Bookings growth
Continued bookings growth 2011 - 2016 cumulative bookings
($ billions)
Infotainment &
Active Safety User Experience
$26 $26
$25
$24 $24 $1.4B $2.9B
$22 2016 2016
$21 $21 bookings bookings
$20 $20
$17
~$5B ~$13B
$2.1B $1.9B
2016 2016
bookings bookings
North American
OEM
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Delivering technology innovation
Centralized computing Autonomous capabilities Intelligent electrification
Leader in centralized computing platforms Industry-leading autonomous capabilities Intelligent electrification 48V solutions
• Scalable domain integration • CSLP platform partnership with MBLY • Builds on HV E/EA competency
• More efficient architectures • Commercialization on track for 2019 • Integration with full Delphi product suite
• Automated driving and cockpit • Unprecedented interest following CES • Better functionality, performance, efficiency
• First to market • First to market • Uniquely positioned
Investing for
Strategic acquisitions
growth and divestitures Increasing to ~20% of CSLP collaboration 25% increase in
align with industry total engineering with Mobileye and Intel software engineers
megatrends
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Financial overview
Joe Massaro
Chief Financial Officer and Senior Vice President
Q4 2016 vs. Q4 2015
($ millions, except per share amounts)
N. America 10% 9%
S. America 34% 7%
14 1 Growth rates at constant foreign exchange and commodity rates; excludes impact of the E&S divestitures and HellermannTyton acquisition
Operating income growth
Q4 2016 vs. Q4 2015 Highlights
($ millions)
• Improved performance
15 Note: Operating income adjusted for restructuring and other special items; see Appendix for detail and reconciliation to US GAAP
Earnings per share
Q4 2016 vs. Q4 2015
$1.39
$613
7% 6% 23%
Q4 2016 Q4 2016 Q4 2016
adjusted adjusted adjusted
growth1 growth1 growth1
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Making it possible.
Appendix
Non-US GAAP financial metrics
($ millions) Q4 2016 Q4 2015 2016 2015
Net income attributable to Delphi $281 $192 $1,257 $1,450
Interest expense $33 $35 $156 $127
Other expense, net $302 $21 $366 $88
Income tax expense $26 $61 $242 $263
Equity income, net of tax ($12) ($6) ($35) ($16)
Loss (income) from discontinued operations, net of tax - $3 ($108) ($274)
Net income attributable to noncontrolling interest $25 $29 $69 $85
Operating income $655 $335 $1,947 $1,723
Restructuring $76 $108 $328 $177
Other acquisition and portfolio project costs $9 $17 $59 $47
Asset impairments $7 $10 $30 $16
(Gain) loss on business divestitures, net ($141) $33 ($141) $8
Adjusted operating income $606 $503 $2,223 $1,971
The company’s guidance was determined using a consistent manner and methodology
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Non-US GAAP financial metrics
($ millions) Q4 2016 Q4 2015 2016 2015
Net income attributable to Delphi $281 $192 $1,257 $1,450
Interest expense $33 $35 $156 $127
Other expense, net $302 $21 $366 $88
Income tax expense $26 $61 $242 $263
Equity income, net of tax ($12) ($6) ($35) ($16)
Loss (income) from discontinued operations, net of tax - $3 ($108) ($274)
Net income attributable to noncontrolling interest $25 $29 $69 $85
Operating income $655 $335 $1,947 $1,723
Depreciation and amortization $178 $146 $704 $540
EBITDA $833 $481 $2,651 $2,263
Restructuring $76 $108 $328 $177
Other acquisition and portfolio project costs $9 $17 $59 $47
(Gain) loss on business divestitures, net ($141) $33 ($141) $8
Adjusted EBITDA $777 $639 $2,897 $2,495
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Non-US GAAP financial metrics
($ millions, except per share amounts) Q4 2016 Q4 2015 2016 2015
Net income attributable to Delphi $281 $192 $1,257 $1,450
Loss (income) from discontinued operations attributable to Delphi, net of tax - $7 ($105) ($262)
Income from continuing operations attributable to Delphi $281 $199 $1,152 $1,188
Adjusting items:
Restructuring $76 $108 $328 $177
Other acquisition and portfolio project costs $9 $17 $59 $47
Asset impairments $7 $10 $30 $16
(Gain) loss on business divestitures, net ($141) $33 ($141) $8
Debt extinguishment costs - $6 $73 $58
Reserve for unsecured creditors litigation $300 - $300 -
Transaction and related costs associated with acquisitions - $30 - $43
Contingent consideration liability fair value adjustments $3 ($7) $3 ($7)
Tax impact of adjusting items (a) ($37) ($5) ($85) ($35)
Adjusted net income attributable to Delphi $498 $391 $1,719 $1,495
Weighted average number of diluted shares outstanding 271.64 281.64 273.70 286.64
Diluted net income per share from continuing operations attributable to Delphi $1.03 $0.70 $4.21 $4.14
Adjusted net income per share $1.83 $1.39 $6.28 $5.22
(a) Represents the income tax impacts of the adjustments made for restructuring and other special items by calculating the income
tax impact of these items using the appropriate tax rate for the jurisdiction where charges were incurred.
26 The company’s guidance was determined using a consistent manner and methodology
Shares outstanding
(millions) Q4 2016 Q4 2015 2016 2015
Weighted average ordinary shares outstanding, basic 270.38 279.29 273.02 285.20
Dilutive shares related to RSUs 1.26 2.35 0.68 1.44
Weighted average ordinary shares outstanding, including dilutive shares 271.64 281.64 273.70 286.64
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Mechatronics financial detail
($ millions, except per share amounts)
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Power Electronics change in segment reporting
($ millions)
Electronics & Safety segment excluding Power Electronics Q1 2016 Q2 2016 Q3 2016 Q4 2016 2015 2016
Revenue $697 $748 $763 $806 $2,744 $3,014
Adjusted operating income1 $80 $100 $95 $93 $352 $368
Powertrain segment including Power Electronics Q1 2016 Q2 2016 Q3 2016 Q4 2016 2015 2016
Revenue $1,117 $1,146 $1,077 $1,146 $4,407 $4,486
Adjusted operating income1 $124 $134 $120 $133 $524 $511
1 Adjusted for restructuring and other special items
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