EFTA01457534.pdf

I May 2015 Autos & Auto Parts Delphi Automotive Model updaled:30 April 2015 Focal yaw end 31-Dec 2011 2012 2013 2014 2015E 2015E burin am the numboo. 1 7inarunit! Sumi tore North America DB EPS IISDI 2.78 384 4.40 509 532 6.30 Rimmed EPS (USD/ 2.78 384 4.40 509 532 630 United States OPS 6/SDI 0.00 000 0.68 100 120 1.20 8VPS MSDI 4.01 725 9.36 837 690 781 Autos & Auto Parts 1.1 POO Mistricc Delphi Automotive Prce/Seke lx1 06 0.6 1.0 12 1.5 1.4 PIE (0811.1 76 79 114 13 2 158 13 2 Reuters: DLPH.N Bloomberg: DLPH US P/E (Reported/ Cx) 76 7.9 11.4 132 15.6 13.2 P/BV 14/ 54 53 64 87 120 105 Buy FCF yield Oil 84 81 68 63 47 57 Price 130 AM IS) USD 83.00 Dividend weld ISM 00 0.0 1.4 15 1.4 1.4 Target Price USD 94.00 EV/Salm 06 07 10 13 17 1.5 52 Week range USD 58.30 - 84.71 EV/03170A 46 5.3 7.1 84 10.2 9.2 EWEBIT 5.9 6.8 9.2 10 9 129 116 Markel Cap (ml USDm 23673 _ _ ......_ _ ....._ Ince°, Statimmint iCJSDnI EURm 21.136 Silas 16.041 15.519 16.463 17.023 15.293 16.947 Cee irony Prof:lo EBITDA 2.150 2,142 2,384 2.605 2,534 2.839 EBIT 1.675 1,671 1.844 2.018 2,000 2.251 Delphi Is one of the largest global auto suppler.. with Pre-tax proM 1.537 1.553 1,722 1.916 1,882 2.151 strong geograplw / customer diversity. miming a 1.371 Net income 1.189 1.240 1.530 1.522 1.702 PereCulallY Strong oositon n Care lapprox 15% or eases) It does busmina through 4 core business segments Caidi How 11.1511M11 (Powwow. Decimal A:chromes. Electronith/Setely. & Thermal), and its focus on key automotive megaihemes Cash flow from operations 1,377 1,478 1350 2,135 1.927 2,133 Sege. Green. and Connected. positrons the company Net Cep*. 630 -008 482 -856 -810 .850 favorably for sustained serciAry growth Oetni also fe4ture Free cash flow 747 790 1503 1,290 1,117 1.293 we of the pxkiwys leanest cost structures. 'oath 92% of Equity ratied/(boughl beckl -4,747 -403 -457 -1524 -1,340 -1.150 the how& workforce loaned in low-cost townies end Dividends paid -29 0 -211 -301 429 489 Pr K.0 Pnr lurnmnre Net inc9decl n 1:0•101W192 1,689 345 -85 8 73 -286 Other imostingthnenoing cash flows 484 490 -31 -448 521 0 90 Net cash flow -1.856 -258 284 -406 42 -543 75 Chong*In 9sorkIngagitil -7.27 -37 -ess 48 -74 -n ao i Balance SII(N1I (US(kr) 45 Gahm.] cash lletWeleftell 1.372 1,113 1,393 905 904 361 30 Property. Plant & equipment 2.315 2.060 3.216 3.343 3.095 3.357 15 Goodwill 0 0 0 0 0 0 Ma 12 Nov 12 May 13 Nov. '3 May 14 Nov 14 Other ease% 5.441 6.203 6.438 6.433 6.768 7,118 Total assets 9.128 10,176 11547 10.748 10768 10538 — Debnomonetto sae tOO incaution.. Debt 2.103 2.464 2.412 2.451 2,573 2.287 Tiercli Other Imbilmes 4.854 4.882 5.201 5.282 5.719 5.911 Total Imbibes 6.957 7.346 7.613 7.733 8,292 8.197 •8 Tom SherellSkterd iltaltt2 2.171 2.830 3.434 3.013 2.476 2.639 Nee debt 731 TX! 1,019 1.546 1,669 1,925 Kov Cc•repany Metrics Silas growth 061 la I .3 3 61 34 .102 10.8 DB EPS growth 061 198 4 38.1 14.6 15 9 4.4 18.4 15E Payout ratio(%) 00 0.0 15.4 195 22.5 19.0 10E IlIftEr 'I, Melt Mote EBITDA Margin Mil 134 138 145 153 166 16 8 EBIT Margin 014 10 4 10.8 11.2 119 13.1 13.3 ROE I%) 31 9 61.5 52.2 567 680 830 20 100 Nat debt/rOuity MAI 33.7 477 297 51 3 67 4 73 0 15 4 90 Net interest cover 1x) 136 12.3 12.9 149 186 18.7 to 54. DrtPet AtIAIVI3 0 40 EBIT rear 1%1 to 4 10.8 11.2 "9 13.1 13.3 -10 • 20 x Assn turnover (s) 16 16 16 16 14 16 -t5 0 X Financial cost ratio (SI 09 0.9 00 09 0.9 09 11 12 13 14 15E ME x Tax and other effects (xl 08 0.8 08 08 0.8 08 Solve 30YehU431 ROE MS a ROA (poet tax) (%) 116 12.8 129 14 1 14 158 FinanciallevOtep(x) 28 48 40 40 46 53 SiSvnney a ROE 154 31 9 81.5 52 2 587 680 830 ennuie growth (191 185 2 928 -152 88 198 221 x NTSVsho• thvg11.) 8.7 6.2 84 90 7.8 76 . Reported EPS 2.78 384 4.40 509 532 630 "Mel growth (40 198 4 381 746 759 0.4 184 Spaces' Company d• a Numb* Bank mammies II 12 13 14 15E 'Sc rarer litteetaMtemAy MHZ Net mime. 1•••MAMS) WA Lac ho .1 212 250-5551 rod lache@db corn Page 2 Deutsche Bank Securities Inc. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0117115 CONFIDENTIAL SDNY_GM_00263299 EFTA01457534