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2017%Q4%and%Full%Year%ResultsFebruary%21,%2018
Driven'to'make'a'difference
1
Forward'looking-statements
This%presentation,%as%well%as%other%statements%made%by%Delphi%Technologies%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
2017:&A&milestone&year
Revenue
$4.85&b(up$8.5%)
Operating&income1
$641&m(13.2%$up$180$bps$$)
Operating&cash&flow
$389&m
Delivered&on&commitments&to&stakeholders
Strengthened&business&while&establishing&new&company
Booked&record&$7.1&b&(up$10%$YOY)
Improved&cash&balance&&&liquidity&profile
Executed&spin&ahead&of&schedule
Accelerated&path&to&electrification
Enhanced&leading&cost&structure
1 Adjusted)for)restructuring)and)other)special)items;)see)appendix)for)detail)and)reconciliation)to)US)GAAP2 Results)reflect)spin>related)adjustments)for)calendar)year)2017;)see)appendix)for)detail3
2
2
Spin%update
Operational! Seamless'separation! Closely'managing'roll1off'of'TSAs! Investing'in'standalone'functions
Team! Leadership'team'driving'performance! Fully'established'Board'of'Directors
Fully%operational%and%focused%on%meeting%our%commitments
4
Record'bookings
$4.7
$6.1$6.7 $7.1
2014 2015 2016 2017
Adjusted(bookings1 ($(billions)
Disciplined'commercial'strategy'driving'long?term'value
Booked'program'lifetime'value Key'technologies
1 Bookings(represent(lifetime(gross(program(revenues(awarded,(based(upon(expected(volumes(and(pricing(adjusted(for(FX(and(commodities2 Bookings(for(Powertrain(Segment((OEM)(only
Power'Electronics
Commercial'Vehicle'Diesel
Gasoline'Direct'Injection
Electronics'&'Software
15%CAGR 2
5
Our$vision
Driven'to'make'a'differenceOur$technologists$are$pioneers$in$propulsion$systems,$working$with$
customers$all$over$the$world$to$make$combustion,$hybrid$and$electric$
vehicles$more$efficient$and$better$to$drive.
A$sustainable$future$starts$today
6
Strategy(overview
7
Portfolio
Software(&(Controls(
Value(creation
Balanced(growthCash(flow(generationCapital(allocation
Portfolio(leadership(in(vehicle(propulsion(systems(
Disciplined(execution
Launch(performanceFootprint(optimizationOperational(excellence
Technology(&(Innovation
Power(electronicsFuel(injectionSystem(solutions
Internal(combustion(engine Electrification
Technology*and*innovation
Commercial*vehicleUltra&high*pressure&common&rail&diesel
Solving*our*customers’*propulsion*challenges
Gasoline*direct*injectionFirst*to*market&350*bar&GDi&solutionPower*electronics
Combined&Inverter&DC/DC&converter&(CIDD)&
8
Disciplined*execution
Operational*Excellence! Leverage'Enterprise'Operating'System'(EOS)'
! Focus'on'cost'optimization
Launch! ~90'new'programs'launched'in'2017! 120+'launches'planned'for'2018
Footprint*optimization! LightFduty'diesel'rotation! CV'diesel'capacity'transfer'to'China! Electrification'capacity'China'expansion
Strong*foundation*of*operational*excellence
9
Value&creation
Disciplined&approach&driving&long4term&shareholder&value
Capital&allocation! Investing)in)high+growth,)differentiated)technologies
! Value+enhancing)M&A
! Announced)first)dividend)payable)in)Q1
Balanced&growth! Growth)aligned)to)markets
! Balanced)customer)mix
! Flexible)product)portfolio
Cash&flow&generation! Strong)operating)performance
! Rolling)off)spin+off+related)inefficiencies
! Normalizing)capex)and)restructuring
10
Summary
Successful,spin,ahead,of,schedule
Record,revenue,and,bookings
Regulatory,and,consumer,tailwinds
Well,positioned,for,long;term,value,creation
Driven'to'make'a'difference
11
FinancialReview
12
2017%vs%2016
13
Operating%income2Operating%margin%%2
$4,8498.5%
$4,8548.5%
$63713.1%
$64113.2%
$389 #
RevenueAdjusted%growth%%1
Operating%cash%flow
$4,486G
$51211.4%
$372
$4,7738.5%
$56911.9%
#
2017%(reported) 2016
$%millions
2017%(pro%forma3)
Full%year%comments
Strong%yearGonGyear%growth%over%market%Market*growth*of*~2%
180%bps%of*operating*margin*expansion! Strong*volume*flow#through! Benefits*of*prior*restructuring
Pro#forma*impact*on*FY*2017*adjusted:! Revenue:*$81*million
! Operating*income:*$72*million
Operating*cash*flow*in*line*with*expectationsYear*end*total*cash%balance%of%$338%m
1.*At*constant*foreign*exchange*rates,*and*excludes*impact*of*certain*aftermarket*revenue*retained*by*Former*Parent2.*Adjusted*for*restructuring*and*other*special*itemsP*see*appendix*for*detail*and*reconciliation*to*US*GAAP3.*See*appendix*for*reconciliation*
2017%(adjusted3)
Strong*finish*while*executing*spin*ahead*of*schedule
S. America
N. AmericaEurope
China
Q4#2017#revenue#growth
14
1.$At$constant$foreign$exchange$rates,$and$excludes$impact$of$certain$aftermarket$revenue$retained$by$Former$Parent
3% Adj
6%$GoM5% Adj
(2)%$GoM 22% Adj
22%$GoM
16% Adj
1%$GoM
9%1
Revenue$$millions
Regional#growthAdjusted1 yearHonHyear$growth
Q4#2016
$1,146
Price
($4)
Volume
$96
FX
$51
Q4#2017#(reported)
SpinFrelatedimpact
$5
Q4#2017#(adjusted)
$1,294
$1,289
Growth$across$the$portfolio$and$in$all$regions,$with$strong$performance$in$China
Q4#2017#operating#income#growth
15
Operating#Income1
1.$Adjusted$for$restructuring$and$other$special$items8$see$appendix$for$detail$and$reconciliation$to$US$GAAP
$$millions
Q4#2017Operating#Income#
(adjusted)
Q4#2017###Operating#Income#
(reported)
$164
$4
Spin@related#impact
D&A
($5)
FX/CommPerformance/GrowthPrice
($4)
Q4#2016#Operating#Income
$133
11.6%
$27
$13
12.7%
$168
13.0%
140bps
26%$yearHonHyear$growth$driven$by$strong$operating$performance
Reportable*segmentsPowertrain*Systems
Helping(OEMs(solve(vehicle(propulsion(challenges
Aftermarket
Ensuring(the(driving(experience(is(maintained(throughout(the(life(of(the(vehicle
Portfolio! Fueling,)electronics,)engine)management)&)select)
maintenance)products)and)services! Diagnostics)&)test)equipment! OEM)service)and)independent)aftermarket)channels
Portfolio! Internal)Combustion)Engine)(ICE))systems)&)components! Software)and)control)electronics! Power)electronics)for)path)to)electrification! Passenger)car)and)commercial)vehicle)applications
16
Powertrain*segment*highlights
17
Revenue
1.$At$constant$foreign$exchange$rates,$and$excludes$impact$of$certain$aftermarket$revenue$retained$by$Former$Parent2.$Adjusted$for$restructuring$and$other$special$itemsA$see$appendix$for$detail$and$reconciliation$to$US$GAAP3.$Includes$30$basis$points$of$operating$margin$benefit$from$intercompany$transfer$pricing$change$with$the$Aftermarket$segment$for$Q4$2017$and$FY$2017$$
$$millions
Q4*2016
$975
FY*2016
$3,837
FY*2017*
(adjusted)
$4,222
Q4$2016
11.0%
$107
Operating*Income2
$$millions
Q4*2017*
(adjusted)
13.1%3
$146
FY*2016
10.9%
$418
FY*2017**
(adjusted)
13.4%3
$565
Q4*2017*
(adjusted)
$1,115
10%1
250***bps
210**bps
10%1
Strong$revenue$growth$in$key$areas$of$the$portfolio$with$record$bookings
Performance*highlights
Q4*2017:*
Strong$yearRonRyear$revenue$growth$in$key$areas$of$the$portfolio
! ~40%*growth*for*GDi*and*CV
! ~20%*growth*for*Power*
Electronics
FY*2017:*
Margin$expansion$driven$by:$
! strong$material$and$manufacturing$performance
! benefits$of$prior$restructuring
Positioned$for$longOterm*growth
! Strong$bookings$performance
! Innovation$&$operational$excellence
! Leverage$cost$structure
Aftermarket)segment)results
18
Revenue$$millions
Q4)2016
$238
FY)2016
$924
FY)2017)(adjusted))
$952
Operating)income2$$millions
Q4)2017)(adjusted)
$255
(120))bps
4%1
6%1
1.$At$constant$foreign$exchange$rates,$and$excludes$impact$of$certain$aftermarket$revenue$retained$by$Former$Parent2.$Adjusted$for$restructuring$and$other$special$itemsF$see$appendix$for$detail$and$reconciliation$to$US$GAAP3.$Adjusted$to$remove$impact$of$intercompany$transfer$pricing$change$with$Powertrain$segment$for$Q4$2017$and$FY$2017$
Strong$growth$in$2017,$focus$on$driving$margin$improvement$in$2018
Performance)highlights
Q4)2017:)
Revenue$growth$driven$by$OES)sales,$and$to$a$lesser$extent,$growth$in$IAM$sales.
FY)2017:)
6%$revenue$growth,$margin$impacted$by$change$in$transfer$pricing,$and$to$a$lesser$extent,$product$mix
Focus$in$2018$on$higher)margin)revenue$opportunities11.0%
$268.6%
$22
$3
Q4)2016 Q4)2017(adjusted)
10.2%
$948.0%
$76
$13
FY)2016 FY)2017(adjusted)
(90))bps
11.0% 9.8%3
10.2%9.3%3
impact$of$transfer$price$change
2018%outlook
Revenue
Adjusted%growth1
Operating%income2
Operating%income%margin%
Earnings%per%share3
Cash%flow%from%operations
Capital%expenditures%(incl.%separation%Capex)
Adjusted%effective%tax%rate
2017%Pro%forma4 2018%Guidance
$4,773
8.5%
11.9%
$4,900%N $5,100
12.2%%N 12.4%
$4.50%N $4.80
$440%N $480
$280%N $300
16%%N 17%
Comments
Revenue%growth%assumes:! Market'up'~1%
! ~200'bps'headwind'from'LDD'decline
! Expected'lower'y/y'growth'in'
Aftermarket
! Robust'growth'in'CV'and'GDi
! 50%+'growth'in'Power'Electronics
Other%guidance%metrics! OneKtime'separation'costs'$75N$80M! Restructuring'charges'$95N$100M! Diluted'share'count'~89M! $/EUR'exchange'rate'1.15
1.'At'constant'foreign'exchange'rates,'and'excludes'impact'of'certain'aftermarket'revenue'retained'by'Former'Parent
2.'Adjusted'for'restructuring'and'other'special'itemsS'see'appendix'for'detail'and'reconciliation'to'US'GAAP
3.'Adjusted'for'restructuring'and'other'special'items
4.'See'appendix'for'reconciliation'
$"millions,"except"per"share"amounts
2%%N 6%
19
$569
Returning)to)pre,spin)operating)margin)by)2020
20
Operating)Income)Margin1
1.%Adjusted%for%restructuring%and%other%special%items9%see%appendix%for%detail%and%reconciliation%to%US%GAAP2.%See%appendix%for%reconciliation
$%millions
2017)Actual))))))))))))))(pro)forma)2
11.9%
2018E)Outlook
12.2%), 12.4%
2020E
~13.3%
@ Roll%off%spin@related%inefficiencies@ Higher%penetration%of%advanced%technologies@ Improved%volume%flow@through
@ Continued%benefits%of%prior%restructuring@ Material%and%manufacturing%improvements@ Incremental%R&D%to%drive%long@term%growth
@ Completed%spin%in%December%@ Strong%revenue%growth%and%operating%performance
20182020
2017
30@50bps
~$700M)OCF
140)bps
Q&A
Appendix
Q4#2017#vs#Q4#2016
23
1.%At%constant%foreign%exchange%rates,%and%excludes%impact%of%certain%aftermarket%revenue%retained%by%Former%Parent2.%Adjusted%for%restructuring%and%other%special%itemsA%see%appendix%for%detail%and%reconciliation%to%US%GAAP3.%See%appendix%for%reconciliation%
RevenueAdjusted#growth1
$1,1466.6%
Q4#2017#reported
Q4#2017#adjusted3 Q4#2016
CommentsMarket%growth%~1%Growth in%all#regions,%especially%ChinaStrong%growth%in%CV,#GDi#and#PE
Strong%operational#performance
Cash%flow%in%line%with%expectations$95 LOperating#cash#flow $68
Operating#Income2Operating#margin#%2
$13311.6%
$1,2898.7%
$16412.7%
$1,2948.7%
$16813.0%
$#millions#
Pro$forma$financial$schedules
Delphi$Technologies$5 Revenue Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Revenue&Reported1 $1,168& $1,187& $1,205& $1,289& $4,849&Spin9Related&Adjustments2 N/A N/A N/A $5 $5Historical&Comparable3 $1,168& $1,187& $1,205& $1,294& $4,854&Pro9forma&Adjustments4 ($20) ($21) ($20) ($20) ($81)Revenue$Pro5forma $1,148$ $1,166$ $1,185$ $1,274$ $4,773$
Delphi$Technologies$5 Adjusted Operating$Income$ Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Adjusted Operating&Income1 $162& $164& $147& $164& $637&%"to"sales 13.9% 13.8% 12.2% 12.7% 13.1%
Spin9Related&Adjustments2 N/A N/A N/A $4 $4&Historical&Comparable3 $162& $164& $147& $168 $641&%"to"sales 13.9% 13.8% 12.2% 13.0% 13.2%
Pro9forma&Adjustments4 N/A& N/A& N/A& N/A& ($72)Adjusted$Operating$Income$Pro5forma N/A$ N/A$ N/A$ N/A$ $569$%"to"sales N/A N/A N/A N/A 11.9%
($&millions)
¹ Results for periods prior to December 4, 2017 prepared on a stand9alone combined basis derived from the Former Parent’s accounting records and results for periods subsequent to December 4, 2017 are presented on a consolidated basis.² Adjustments to present results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017. Adjustments include: (1) impact of the original equipment services business that remained with the FormerParent, (2) incremental costs and inefficiencies associated with being a stand9alone publicly9traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement enteredwith our Former Parent in connection with the separation.³ Represents results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017.⁴ Adjustments to present results for the year ended December 31, 2017 on a comparable basis to expected future period results. Financial information for periods prior to December 4, 2017 was prepared on a stand9alone combined basis derived from the Former Parent’saccounting records and is not necessarily indicative of results that will be achieved as a stand9alone publicly9traded company. Adjustments include: (1) impact of the original equipment services business that remained with the Former Parent, (2) incremental costs andinefficiencies associated with being a stand9alone publicly9traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement entered with our Former Parent inconnection with the separation.
24
Pro$forma$financial$schedules
Powertrain$Segment$5 Revenue Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Revenue&Reported1 $1,023& $1,035& $1,049& $1,115& $4,222&Spin7Related&Adjustments2 N/A N/A N/A N/A N/AHistorical&Comparable3 $1,023& $1,035& $1,049& $1,115& $4,222&Pro7forma&Adjustments4 N/A N/A N/A N/A N/ARevenue$Pro5forma $1,023$ $1,035$ $1,049$ $1,115$ $4,222$
Powertrain$Segment$– Adjusted Operating$Income Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Adjusted&Operating&Income1 $150& $141& $128& $143& $562&%"to"sales 14.7% 13.6% 12.2% 12.8% 13.3%
Historical&Comparable3 N/A N/A N/A $3 $3&Powertrain&Segment&Comparable3 $150& $141& $128& $146 $565&%"to"sales 14.7% 13.6% 12.2% 13.1% 13.4%
Pro7forma&Adjustments4 N/A& N/A& N/A& N/A& ($53)Adjusted$Operating$Income$Pro5forma N/A$ N/A$ N/A$ N/A$ $512$%"to"sales N/A N/A N/A N/A 12.1%
($&millions)
¹ Results for periods prior to December 4, 2017 prepared on a stand7alone combined basis derived from the Former Parent’s accounting records and results for periods subsequent to December 4, 2017 are presented on a consolidated basis.² Adjustments to present results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017. Adjustments include: (1) impact of the original equipment services business that remained with the FormerParent, (2) incremental costs and inefficiencies associated with being a stand7alone publicly7traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement enteredwith our Former Parent in connection with the separation.³ Represents results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017.⁴ Adjustments to present results for the year ended December 31, 2017 on a comparable basis to expected future period results. Financial information for periods prior to December 4, 2017 was prepared on a stand7alone combined basis derived from the Former Parent’saccounting records and is not necessarily indicative of results that will be achieved as a stand7alone publicly7traded company. Adjustments include: (1) impact of the original equipment services business that remained with the Former Parent, (2) incremental costs andinefficiencies associated with being a stand7alone publicly7traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement entered with our Former Parent inconnection with the separation.
25
Pro$forma$financial$schedules
Aftermarket$Segment$6 Revenue Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Revenue&Reported1 $222& $232 $243& $250& $947&
Spin7Related&Adjustments2 N/A N/A N/A $5 $5
Historical&Comparable3 $222& $232& $243& $255& $952&
Pro7forma&Adjustments4 ($20) ($21) ($20) ($20) ($81)
Revenue$Pro6forma $202 $212$ $224$ $235$ $871$
Aftermarket$Segment$– Adjusted$Operating$Income Q1$2017 Q2$2017 Q3$2017 Q4$2017 2017Adjusted&Operating&Income1 $12& $23& $19& $21& $75&
%"to"sales 5.4% 9.9% 7.8% 8.4% 7.9%
Spin7Related&Adjustments2 N/A N/A N/A $1 $1&
Historical&Comparable3 $12& $23& $19& $22& $76&
%"to"sales 5.4% 9.9% 7.8% 8.6% 8.0%
Pro7forma&Adjustments4 N/A& N/A& N/A& N/A& ($19)
Adjusted$Operating$Income$Pro6forma N/A$ N/A$ N/A$ N/A$ $57$%"to"sales N/A N/A N/A N/A 6.5%
($&millions)
¹ Results for periods prior to December 4, 2017 prepared on a stand7alone combined basis derived from the Former Parent’s accounting records and results for periods subsequent to December 4, 2017 are presented on a consolidated basis.
² Adjustments to present results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017. Adjustments include: (1) impact of the original equipment services business that remained with the FormerParent, (2) incremental costs and inefficiencies associated with being a stand7alone publicly7traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement enteredwith our Former Parent in connection with the separation.
³ Represents results for the year ended December 31, 2017 on a comparable basis to historical periods, as though the separation did not occur during 2017.⁴ Adjustments to present results for the year ended December 31, 2017 on a comparable basis to expected future period results. Financial information for periods prior to December 4, 2017 was prepared on a stand7alone combined basis derived from the Former Parent’s
accounting records and is not necessarily indicative of results that will be achieved as a stand7alone publicly7traded company. Adjustments include: (1) impact of the original equipment services business that remained with the Former Parent, (2) incremental costs andinefficiencies associated with being a stand7alone publicly7traded company for periods subsequent to December 4, 2017, and (3) costs associated with the Transition Services Agreement and Contract Manufacturing Services Agreement entered with our Former Parent inconnection with the separation.
26
Non$GAAP(Reconciliation:(Adj(Operating(Income($#millions)
Adjusted Operating Income is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciledto the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which mayobscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecastingpurposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes thismeasure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income before interest expense, other income (expense), net, income tax expense, equity income (loss),net of tax, restructuring, separation costs, asset impairments and other acquisition and portfolio project costs. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable toother similarly titled measures of other companies. The Company's 2018 guidance was determined using a consistent manner and methodology.
27
Delphi(Technologies( Q1(2017 Q2(2017 Q3(2017 Q4(2017 Q4(2016 2017 2016Net#income#attributable to#Delphi#Technologies $103 $48 $78 $56 $78 $285 $236
Net#income#attributable#to#noncontrolling interest 8 8 9 9 10 34 32
Net income $111 $56( $87( $65( $88 $319 $268Equity#(income),#net#of#tax (1) 1 (2) (3) Z (5) Z
Income tax#expense 31 22 26 27 23 106 50
Other expense,#net 6 Z 1 4 1 11 1
Interest expense 1# Z 1 13 Z 15 1
Operating(income $148 $79( $113( $106( $112( $446 $320Restructuring 10 66 3 19 14 98 161
Separation#costs Z 15 31 35 Z 81 Z
Asset#impairments 4# 4# Z 4 7# 12 29
Other#acquisition and#portfolio#project#costs $ $ $ $ $ $ 2
Adjusted(operating(income $162 $164( $147( $164( $133( $637 $512
Non$GAAP(Reconciliation:(Adj(Operating(Income($#millions)
28
Aftermarket Segment Q1(2017 Q2(2017 Q3(2017 Q4(2017 Q4(2016 2017 2016Operating#income $6 $18 $16 $14# $22 $54 $81
Restructuring 6 2 (3) 1 3 6 10
Separation#costs > 3 6 6 > 15# >
Asset#impairments > > > > 1 > 1
Other#acquisition#and#portfolio#project#costs > > > > > > 2
Adjusted operating(income $12 $23( $19( $21( $26 $75( $94(
Powertrain(Segment( Q1(2017 Q2(2017 Q3(2017 Q4(2017 Q4(2016 2017 2016Operating#income $142# $61 $97 $92# $90 $392 $239
Restructuring 4 64 6 18 11 92 151
Separation#costs > 12 25 29 > 66# >
Asset#impairments 4# 4# > 4 6 12# 28#
Adjusted(operating(income $150 $141( $128( $143( $107 $562( $418(
Adjusted Operating Income is presented as a supplemental measure of the Company's financial performance which management believes is useful to investors in assessing the Company’s ongoing financial performance that, when reconciledto the corresponding U.S. GAAP measure, provides improved comparability between periods through the exclusion of certain items that management believes are not indicative of the Company’s core operating performance and which mayobscure underlying business results and trends. Our management utilizes Adjusted Operating Income in its financial decision making process, to evaluate performance of the Company and for internal reporting, planning and forecastingpurposes. Management also utilizes Adjusted Operating Income as the key performance measure of segment income or loss and for planning and forecasting purposes to allocate resources to our segments, as management also believes thismeasure is most reflective of the operational profitability or loss of our operating segments. Adjusted Operating Income is defined as net income before interest expense, other income (expense), net, income tax expense, equity income (loss),net of tax, restructuring, separation costs, asset impairments and other acquisition and portfolio project costs. Not all companies use identical calculations of Adjusted Operating Income, therefore this presentation may not be comparable toother similarly titled measures of other companies. The Company's 2018 guidance was determined using a consistent manner and methodology.
Non$GAAP(Reconciliation:(Adj(Net(Income($#millions,#except#per#share#amounts)
1. 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 the charges were incurred.
Adjusted Net Income and Adjusted Net Income Per Share, which are nonDGAAP measures, are presented as supplemental measures of the Company's financial performance which management believes are useful to investors in assessing theCompany’s ongoing financial performance that, when reconciled to the corresponding U.S. GAAP measure, provide improved comparability between periods through the exclusion of certain items that management believes are not indicative ofthe Company’s core operating performance and which may obscure underlying business results and trends. Management utilizes Adjusted Net Income and Adjusted Net Income Per Share in its financial decision making process, to evaluateperformance of the Company and for internal reporting, planning and forecasting purposes. Adjusted Net Income is defined as net income attributable to Delphi Technologies, restructuring and other special items, including the tax impactthereon. Adjusted Net Income Per Share is defined as Adjusted Net Income divided by the weighted average number of diluted shares outstanding for the period. Not all companies use identical calculations of Adjusted Net Income andAdjusted Net Income Per Share, therefore this presentation may not be comparable to other similarly titled measures of other companies. The Company's 2018 guidance was determined using a consistent manner and methodology.
29
Delphi(Technologies( Q1(2017 Q2(2017 Q3(2017 Q4(2017 Q4(2016 2017 2016Net#income#attributable to#Delphi#Technologies $103 $48 $78 $56 $78 $285 $236
Adjusting(items:Restructuring 10 66 3 19 14 98 161
Separation#costs D 15 31 35 D 81 D
Asset#impairments 4 4 D 4 7 12 29
Other#acquisition and#portfolio#project#costs D D D D D D 2
Tax#impact#of#adjusting#items1 (1) (13) (1) (4) (2) (19) (7)
Adjusted(net(income(attributable(to(Delphi(Technologies $116 $120 $111 $110( $97 $457 $421Weighted#average#number#of#diluted#shares#outstanding 88.61 88.61 88.61 88.79 88.61 88.66 88.61Diluted net#income#per#share#attributable#to#Delphi#Technologies $1.16 $0.54 $0.88 $0.63 $0.88 $3.21 $2.66
Adjusted(net(income(per(share $1.31 $1.35 $1.25 $1.24 $1.09 $5.15 $4.75