Financial Overview

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	Rate of change (%)	Factors
Overall
Net Sales	16,463	15,519	6.1	1)
Operating Income	1,684	1,476	14.1	-

Factors
1) Net Sales
-Total net sales for the fiscal year that ended on December 31, 2013 increased 6.1% compared to the year that ended on December 31, 2011. The sales increase is attributable to the fourth quarter 2012 acquisition and successful integration of MVL, as well as due to increased sales in North America and Asia Pacific.

Contracts

-The Company announced that its RACam system, a suite of advanced driver assistance systems, will be introduced on the new Volvo SPA platform at the end of 2014. The system incorporates radar sensing, vision sensing and data fusion into a single module to enable a full range of active safety functionalities. (From a press release on August 27, 2013)

Awards

-In 2013, the Company won an Automotive News PACE Award for its common rail for heavy duty diesel.

-The Company received the Volkswagen Group Award in the Global Champion category for advanced diesel common rail technology. Delphi's award specifically recognized performance on Volkswagen's 1.2-liter, three-cylinder Euro 5 programs. (From a press release on July 3, 2013)

R&D Expenditure

(in billion USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Total	1.3	1.2	1.2

 
-The Company expects expenditures for engineering activities to be approximately USD 1.7 billion for the year ending December 31, 2014.

R&D Structure

-As of December 31, 2013, the Company employed over 19,000 scientists, engineers and technicians around the world.

-The Company has 15 major technical centers:

• North America: 5 facilities
• Europe, Middle East and Africa: 5 facilities
• Asia Pacific: 4 facilities
• South America: 1 facility

R&D Activities

-The Company opened its newly combined advanced diesel injection and combustion technical lab in Luxembourg. Staffed initially by 40 scientists and engineers, the diesel injection and combustion lab brings together its diesel and gasoline research in a single location. Located within Delphi's Customer Technology Center (CTC) the new lab will enhance Delphi's ability to coordinate its research with customer advanced engineering groups. The CTC Luxembourg also serves as Delphi's Europe, Middle-East and Africa regional headquarters and Powertrain Systems divisional headquarters. (From a press release on October 9, 2013)

Product Development

<Hybrid & Electric Vehicle Products>
DC to DC Converter
-The Company developed a new range of DC/DC converters for 12V-micro and 48V-mild hybrid applications. The 12V DC/DC converters, with a power range up to 1.2 kW, stabilize the supply voltage during re-crank of the engine to help avoid dimmed lighting or surges that can affect displays or infotainment systems. Vehicles from several European OEMs featuring this technology are expected to be on the road by the end of this year. Delphi's 48V DC/DC converter, a mild hybrid solution, will help vehicle manufacturers meet regulations at a lower cost than full hybrid systems. Delphi is currently working with several OEMs to develop this technology and estimates that this technology will be available in 2016. (From a press release on April 12, 2013)

<Cables and Wiring>
Wiring harness
-Delphi Automotive PLC announced that it developed a high voltage wiring harness for the Ferrari LaFerrari gasoline-electric hybrid. Delphi also worked with Ferrari to develop a complete air conditioning system for the model. The air conditioning system utilizes an electric compressor and newly developed heat exchanger (chiller). Delphi's HVAC system for the LaFerrari allows for a 3.5kW additional cooling power for the hybrid system. (From a press release on March 5, 2013)

Capital Expenditure by Segment

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
Electrical / Electronic Architecture	293	238	219
Powertrain Systems	224	304	228
Electronics and Safety	64	66	100
Thermal Systems	77	63	70
Eliminations and Other	24	34	13
Total	682	705	630

Capital Expenditure by Geographic Area

(in million USD)

	FY ended Dec. 31, 2013	FY ended Dec. 31, 2012	FY ended Dec. 31, 2011
North America	199	210	176
Europe, Middle East & Africa	281	308	278
Asia Pacific	174	155	118
South America	28	32	58
Total	682	705	630

Investment Outside USA

<China>
-The Company announced that its newly-expanded Beijing gasoline engine management systems (EMS) facility is now fully operational. With more than 30,000 square meters of floor space, the new site provides integrated manufacturing and R&D capabilities, doubling Delphi's local capacity for gasoline engine management systems. Delphi's Beijing manufacturing operation will provide local Delphi customers with China IV/V and future emissions-compliant gasoline EMS and components, including multi-charge ignition coils, sensors, electronic throttle bodies, carbon canister, solenoid valves, fuel delivery modules and fuel rail assemblies. The Beijing Technical Center will have full testing capability for components, powertrain systems and vehicle performance and emissions to support advanced research & development for MPFI and GDi systems. (From a press release on April 18, 2013)