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...
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Bank of America Merrill Lynch Auto Summit Conference April 16, 2014

Jessica Holscott Vice President, Investor Relations

Forward-looking statements This presentation, as well as other statements made by Delphi Automotive PLC (the “Company”), contain forwardlooking 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.

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2013 highlights • 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 Increased shareholder value 4

2013 highlights New business bookings $ billions

2013 bookings by region

$26.3

$26.6

$23.5

North America 34%

$19.9

Europe 33%

$13.6

South America 4%

2009

2010

2011

2012

Asia 29%

2013

Continued Further increase strong bookings shareholder momentum value 5

Note: Bookings = lifetime gross program revenues awarded, based upon expected volumes and pricing

2013 highlights Financial results $ billions

Revenue $15.5

2012

Operating income1

$ billions

$16.5

2013

$1.8 $1.7

2012

Operating income margin1

EPS1 $4.40

11.2% 10.8%

2012

$3.84

2013

2012

Delivering solid financial results 6

2013

1. Adjusted for restructuring and acquisition-related integration costs

2013

2013 highlights Financial metrics comparison EBITDA margin 16.5%

EBIT margin 14.5%

16.4% 11.2%

9.9%

7.8%

6.8% 1.8% Peer range

Peer average

Delphi

Peer range

Peer average

Delphi

ROIC

34%

FCF % to EBIT 78%

22%

18%

58% 35% 12%

7% Peer range

Peer average

Delphi

Peer range

Peer average

Industry-leading financial metrics 7

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

Delphi

Jeff Owens Executive Vice President and Chief Technology Officer

2014 priorities • Disciplined above market revenue growth • Further optimize operating footprint

• Accelerate introduction of advanced technologies • Further expand margins and increase earnings • Disciplined capital allocation Further increase shareholder value 9

Accelerate introduction of advanced technologies Significant investment in technology development with more than…

Heated Tip Cold Start System

Ammonia (NH3) Sensor

Aluminum Cable

Friction Stir Weld

• $1.7B gross invested annually in research, development & engineering

• 19,000 scientists, engineers and technicians worldwide

RACam Airbag Squib AK2 Connection System

• 15 major technical centers • 8,000 patents

Wireless Consumer Device Charging System

• 60 major awards ErgoMate™ Connection System

Heavy Duty Diesel Common Rail Systems

Gasoline Direct injection (GDi)

Introduction of advanced technologies driving revenue growth 10

Disciplined capital allocation • 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

Drives additional shareholder value 11

Success factors – Active Safety and Infotainment Future Key Success Factors

Delphi is well-positioned



Strong development partner network



Active presence/partnerships in Silicon Valley



Adaptable in-vehicle infotainment computing platform



Scalable, powerful computing platforms leveraging leading SoC suppliers



Ability to manage high complexity global development, integration, validation (i.e., automotive electronics)



Experience executing high end, complex systems development and 3rd party software integration



Multi-domain capability





Capability to provide full range of onboard and off-board services

Complete portfolio: Infotainment, Driver Interface, Cloud, ADAS/Active Safety



Cloud connectivity/security solutions to complement on-board content/services

Well-positioned to benefit from secular growth trends 12

Safe

Active Safety market drivers/trends Customers

• Consumers demanding increased content from OEMs • Premium OEMs currently develop feature algorithms; Volume OEMs to develop automated features

Competitors

• Major players: Autoliv, Bosch, Continental, Delphi • Multiple niche competitors with single offerings • Expect consolidation as market matures

Technology

• Computing platforms integrated with satellite sensors • Software defined features/value proposition • Multiple sensors for higher-level automated features

Regulatory

• European NCAP rewards Active Safety technologies • Car-to-car/infrastructure • Evolving China, Korea and US legislation

Active Safety has become strategic for OEMs and their brands 14

Active Safety past the tipping point Global safety electronics market ($ billions)

14 12 10 8 6 4

Active Safety 2 0 2013

2014

2015

2016

2017

2018

Active Safety segment driving growth 15

2019

2020

Active Safety past the tipping point Global safety electronics market ($ billions)

14 12 10

Regulated & Regulated & Incentivized Incentivized

8

Active Safety

6 4

Active Safety Active Safety

2 0 2013

Passive Safety 2014

2015

2016

2017

2018

2019

Active Safety segment growing at 35% CAGR to ~$14B 16

2020

Leverages transition from passive to Active Safety Cumulative launches 74

For 16 customers

Asia Europe N. America

2016

RACam

Short Range Radar

Mid Range Radar

Camera Systems

16 5 2012

2013



$0.2B incremental revenue 17

Connected

Infotainment market drivers/trends • Innovating close to consumers and trend-makers

Customers

• Promoting infotainment for brand differentiation • Expanding “brought-in” and “embedded” functionality

Competitors

• Integration and software execution are differentiators • New entrants competing for pieces of infotainment • Fragmented market fosters industry consolidation

Technology

• Powerful and scalable computing platforms • Updatable, cloud-connected platforms • Infotainment and Active Safety convergence

Regulatory

• Additional distraction regulations may emerge • e-Call driver assistance to be in place in EU by 2015 • Car-to-car/infrastructure – Intelligent Transportation

Infotainment has become strategic for OEMs and their brands 19

Connectivity and computing drives Infotainment

Annual revenue ($billions)

16 14 12 Next Gen Connected Computing Platform

10 In-vehicle Wireless Network

8 6

Reconfigurable Cluster & Displays

4 2 0 2012

Connected Infotainment

1st Gen Connected Navigation

2013

2014

2015

2016

2017

2018

$14B market growing at ~25% CAGR 20

2019

2020

Leverages transition from entertainment to Connected Infotainment Cumulative launches 22

For 10 customers

Asia Europe N. America S. America

3 1 2012

2013



2016

Connected Infotainment Head Unit

$0.4B incremental revenue 21

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

Substantial market opportunity 22

In the future, we expect higher levels of integration Cluster

Integrated Center Panel

Cloud

Multi Domain Controller V2X V2X Module ADAS Module

+ SW Domain Modules

Solutions that leverage synergies to improve cost and performance 23

OEM Multi Domain Controller – illustrative example

SoC

TBD

OS integration/BSP Aurix

FPGA

SoC

TBD

Thermal Design Schematics Blockdiagramm Technical Safety Concept

HW

Mechanical Design/PCB Layout

Design Validation

Design Verification

Vehicle Bench Functional Test

FPGA

System Integration: High Level ECU Functional/Vehicle

Aurix

Built HW & Flash Image File

Framework/Services Development

DFMEA/ Product Design Simulation

Change Management

RTE generation

Requirements Management

Functional Safety Requirements

Application SW design

SW

Application SW verification

SW Integration&Validation

Program Management

OEM S/W Integrator SoC Supplier Delphi 3rd party/OEM SW

Delphi manages the overall system integration and program execution 24

Convergence provides opportunities 2010 Assisted automation

2015

2020

Conditional automation

Safety eco-system

2025 Fully autonomous

Increasing power, data, and computing architectures

Increasing personalization

Smartphone integration

Full cloud connectivity

Increasing vehicle content 25

Internet of things

2014 priorities • Disciplined above market revenue growth • Further optimize operating footprint

• Accelerate introduction of advanced technologies • Further expand margins and increase earnings • Disciplined capital allocation Further increase shareholder value 26

Appendix

Non-US GAAP financial metrics ($ millions)

2012

2013

$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

10.8%

11.2%

Net income attributable to Delphi

Adjusted operating income margin

28

Non-US GAAP financial metrics ($ millions, except per share amounts)

2012

2013

$1,077

$1,212

$171

$145

Acquisition-related integration costs

$9

$15

Acquisition-related advisory and transaction costs

$13

-

Asset impairments

$15

-

Debt extinguishment costs

$1

$39

($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

Net income attributable to Delphi Adjusting items Restructuring charges

Tax impact of adjusting items (a)

(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

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