DELPHI 2013 Annual Report Download - page 52

30
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following management’s discussion and analysis of financial condition and results of operations (“MD&A”) is
intended to help you understand the business operations and financial condition of the Company for the three year period ended
December 31, 2013. This discussion should be read in conjunction with Item 8. Financial Statements and Supplementary Data.
Our MD&A is presented in seven sections:
• Executive Overview
• Consolidated Results of Operations
• Results of Operations by Segment
• Liquidity and Capital Resources
• Off-Balance Sheet Arrangements and Other Matters
• Significant Accounting Policies and Critical Accounting Estimates
• Recently Issued Accounting Pronouncements
Within the MD&A, “Delphi,” the “Company,” “we,” “us” and “our” refer to Delphi Automotive PLC, a public limited
company which was formed under the laws of Jersey on May 19, 2011, together with its subsidiaries, including Delphi
Automotive LLP, a limited liability partnership incorporated under the laws of England and Wales which was formed on
August 19, 2009 for the purpose of acquiring certain assets and subsidiaries of the former Delphi Corporation, and became a
subsidiary of Delphi Automotive PLC in connection with the completion of the Company’s initial public offering on
November 22, 2011. The former Delphi Corporation and, as the context may require, its subsidiaries and affiliates, are referred
to herein as the “Predecessor”.
Executive Overview
Our Business
We are a leading global vehicle components manufacturer and provide electrical and electronic, powertrain, safety and
thermal technology solutions to the global automotive and commercial vehicle markets. We are one of the largest vehicle
component manufacturers and our customers include all 25 of the largest automotive original equipment manufacturers
(“OEMs”) in the world.
Business Strategy
We believe the Company is well-positioned for growth from increasing global vehicle production volumes, increased
demand for our Safe, Green and Connected products which are being added to vehicle content, and new business wins with
existing and new customers. We have successfully created a competitive cost structure, aligned our product offerings with the
faster-growing industry mega-trends and re-aligned our manufacturing footprint into an efficient regional service model,
allowing us to increase our profit margins.
Our achievements in 2013 included the following:
• Successfully integrating the FCI Group's Motorized Vehicles Division (“MVL”), acquired in late 2012, with our
existing connector business, resulting in substantial operating and financial synergies;
• Generating gross business bookings of $26.6 billion, based upon expected volumes and pricing;
• Continuing our focus on diversifying our geographic, product and customer mix, resulting in 33% of our 2013 net
sales generated in the North American market, 27% of our 2013 net sales generated in emerging markets, and 17%
generated from our largest customer;
• Maximizing our operational flexibility and profitability at all points in the normal automotive business cycle, by
having approximately 94% of our hourly workforce based in low cost countries and approximately 32% of our hourly
workforce composed of temporary employees;
• Completing the majority of our previously approved $375 million of restructuring activities initiated at the end of
2012, with the primary focus on Europe, allowing us to maintain our industry-leading cost structure;
• Generating $1.8 billion of cash from operations;
• Initiating regular quarterly cash dividends of $0.17 per ordinary share which was subsequently increased;
• Executing $457 million of share repurchases; and
• Achieving investment-grade credit rating metrics from Standard & Poor's Ratings Services