![]() Delivering Value Deutsche Bank Global Auto Industry Conference January 15, 2013 Exhibit 99.1 Halla Visteon Climate Control Yanfeng Visteon Electronics Interiors Our Family of Businesses |
![]() Page 2 This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various factors, risks and uncertainties that could cause our actual results to differ materially from those expressed in these forward- looking statements, including, but not limited to, Caution should be taken not to place undue reliance on our forward-looking statements, which represent our view only as of the date of this presentation, and which we assume no obligation to update. our ability to satisfy future capital and liquidity requirements; including our ability to access the credit and capital markets at the times and in the amounts needed and on terms acceptable to us; our ability to comply with financial and other covenants in our credit agreements; and the continuation of acceptable supplier payment terms; our ability to satisfy pension and other post-employment benefit obligations; our ability to access funds generated by foreign subsidiaries and joint ventures on a timely and cost-effective basis; our ability to execute on our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated; conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, (ii) the financial condition of our customers or suppliers and the effects of any restructuring or reorganization plans that may be undertaken by our customers or suppliers or work stoppages at our customers or suppliers, and (iii) possible disruptions in the supply of commodities to us or our customers due to financial distress, work stoppages, natural disasters or civil unrest; new business wins and re-wins do not represent firm orders or firm commitments from customers, but are based on various assumptions, including the timing and duration of product launches, vehicle production levels, customer price reductions and currency exchange rates; general economic conditions, including changes in interest rates and fuel prices; the timing and expenses related to internal restructurings, employee reductions, acquisitions or dispositions and the effect of pension and other post- employment benefit obligations; increases in raw material and energy costs and our ability to offset or recover these costs, increases in our warranty, product liability and recall costs or the outcome of legal or regulatory proceedings to which we are or may become a party; and those factors identified in our filings with the SEC (including our Annual Report on Form 10-K for the fiscal year ended December 31, 2011). Forward-Looking Information |
![]() Page 3 Because not all companies use identical calculations, Adjusted EBITDA, Adjusted EPS and Free Cash Flow used throughout this presentation may not be comparable to other similarly titled measures of other companies. In order to provide the forward-looking non-GAAP financial measures for full-year 2012 and 2013, the Company is providing reconciliations to the most directly comparable GAAP financial measures in the Appendix of this presentation. The provision of these comparable GAAP financial measures is not intended to indicate that the Company is explicitly or implicitly providing projections on those GAAP financial measures, and actual results for such measures are likely to vary from those presented. The reconciliations include all information reasonably available to the Company at the date of this presentation and the adjustments that management can reasonably predict. Use of Non-GAAP Financial Information |
![]() Page 4 Today We Will … Present Visteon at a glance Review 2012 key accomplishments Provide update on Halla Visteon Climate Control (HVCC) transaction progress Offer additional Yanfeng Visteon insight Discuss 2012 performance Announce 2013 full-year guidance |
![]() Overview Key Businesses Global auto supplier of climate, electronics and interiors products Worldwide manufacturing / engineering footprint with emphasis on low-cost regions 172 facilities in 28 countries including non-consolidated joint ventures (1) Strategically positioned to capitalize on emerging- market growth 2012 estimated sales: $6.8 billion consolidated $15.4 billion including JVs (1) $4.3 Billion Climate HVAC Systems Powertrain Cooling EV & Hybrid Battery Cooling Compressors Fluid Transport Interiors Cockpit Modules Instrument Panels Consoles Door Trim Electronics Audio and Infotainment Information and Controls Vehicle Electronics Visteon in Summary $1.2 Billion $1.4 Billion 2012E Sales Page 5 Yanfeng Visteon Interiors Electronics Seating Exteriors Safety $7.1 Billion Non-Consolidated (1) Includes all non-consolidated joint ventures. For Yanfeng Visteon sales, includes full year of Yanfeng seating sales as well as full year of Yanfeng Exterior and Safety sales. |
![]() 2012 Achievements Announced and implemented strategic plan to create value for stakeholders Initiated $100 million restructuring program to further reduce fixed-cost structure, right-size operations and address underperforming assets Completed several value-creating strategic and financial actions Closed Cadiz plant in Spain Sold Grace Lake Corporate Center Divested Lighting operations Sold R-TEK Interiors joint venture Announced transaction to combine Visteon Climate w/ Halla Concluded lump-sum pension buyout offer, used $301 million in pension assets to reduce PBO by $411 million Redeemed $50 million of bonds Repurchased $50 million of stock Visteon Continues to Lay the Groundwork for Shareholder Value Enhancement Page 6 February April August August September December December November |
![]() Page 7 2012 New Business Wins (Dollars in Millions) $450 2012 ($210) 2012 $750 2012 During 2012, Visteon was Awarded Approximately $1 Billion of Net New Business, Which Will Launch During the Next Five Years Incremental New Business Wins Re-Wins Lost Business Climate 60% Interiors 5% Electronics 35% Climate 67% Electronics 13% Interiors 20% Electronics 48% Interiors 15% Climate 37% |
![]() Backlog Fuels Visteon Future Growth Visteon’s $800 Million Net Backlog Will Launch During the Next Three Years and is Forecasted to Drive Sales Growth to $8.2 Billion by 2015 Page 8 $6.8B $7.4B $8.2B Base Including Volume, Currency, Pricing Net Backlog Visteon Sales and Net Backlog Addt’l Net Backlog Net backlog: incremental new business net of lost business that will launch during the next three years Base Including Volume, Currency, Pricing $0.8B Total Net Backlog 2015E Sales 2012E Sales 2013E Sales 0.4 0.4 Incremental new business includes 2012 wins as well as wins recognized in previous years |
![]() Fixed-Cost and SG&A Actions – An Update Initiative Underway to Reduce 2013 Fixed Costs and SG&A Expense to $410 Million Page 9 Visteon announced during its third quarter 2012 earnings call a focused plan to further reduce SG&A and other fixed costs – “Other fixed costs” include information technology costs and other costs of goods sold supporting engineering staff Achieved savings in 2012 and expect an additional $20 million in efficiencies, net of unfavorable currency in 2013 Savings will drive year-over-year SG&A improvement in 2013 and 2014 $485 $430 $410 2011 2012E 2013E Goal (Dollars in Millions) Fixed-Cost and SG&A Reduction Plan Fixed-Costs and SG&A Spend (1) $340-$380 (1) Adjusted to exclude Lighting. |
![]() Page 10 Visteon’s Strategic Plan – The Value of Optionality Visteon Climate Yanfeng Visteon 70% 100% 50% 100% 100% Visteon Interiors Visteon Electronics Contribute Visteon Climate to HCC for cash Establishes “Halla Visteon Climate Control” (HVCC) as single consolidated climate entity with leadership of all global climate operations Consolidation of these two operations into one has been a major customer request Headquartered in Korea with global customer presence and Korean leadership supported by international management team Visteon remains equity holder (70%) in HVCC Transfer limited SG&A and operating resources to make business globally self-capable Target transaction completion during Q1 2013 Remains non-core Continue to pursue options Interiors will be exited at a time when value objectives are met #5 global market position Significant integration and technology synergies with YFVE Focused on optimizing global scale and ownership YFV Electronics 60% 40% YFV and affiliated Yanfeng Visteon Electronics represent a dynamic marriage of global presence with Asian-centric power, low-cost operations and technological prowess Core YFV business is Interiors, which is non- core to Visteon Uncover value for Visteon shareholders Comprehensive Plan to Create Value for Customers and Shareholders Corporate Right-sizing Minimal footprint Staff businesses with lean and only “necessary” support |
![]() Halla Visteon Climate Control Yanfeng Visteon Electronics Interiors Our Family of Businesses Halla Visteon Climate Control (HVCC) A Value-Creating Joint Venture Deutsche Bank Global Auto Industry Conference January 15, 2013 |
![]() Page 12 HVCC Transaction Update Pro forma entity name changed to “Halla Visteon Climate Control” Visteon to contribute majority of Visteon Climate business to Halla for cash (small portion of business retained by Visteon) Definitive agreement signed on January 11, 2013 $410 million gross proceeds to Visteon, financed by conservative mix of cash and debt at Halla Estimated $353 million proceeds after purchase price adjustments (i.e. pension, debt, cash), taxes and fees Accretive to Halla shareholders on EPS and EBITDA multiple basis Diligence, negotiations and signing completed in less than 100 days after announcement Closing on track to be completed during first quarter 2013 Transition / integration work progressing Proceeding as Expected |
![]() A Valuable Organization Expected HVCC Financial Profile Page 13 Overview 2012E Climate Global Market Share (2) Hyundai / Kia 51% Chrysler 1% Suzuki 1% Mazda1% 2012E Sales (1) $4.1 Billion 2012E EBITDA Margin (1) 9.0% Headcount 13,350 Mfg Facilities Consolidated 26 Unconsolidated 6 By Customer By Region 2012E Sales Breakdown Key Products and Market Positions (2) HVCC 13% Denso 23% Valeo 12% Delphi 7% Behr 10% Calsonic 5% Other 24% Modine 2% Sanden 4% Powertrain and EV / Hybrid Cooling (#4) AP 56% EU 25% NA 17% SA 2% Other 21% Ford 24% (1) HVCC represents total Climate segment estimated results minus those Climate operations that will be retained. EBITDA margin excludes equity income and non-controlling interests. (2) IHS unconsolidated unit share. |
![]() Page 14 The HVCC Manufacturing Footprint Visteon in HVCC Perimeter Halla Visteon Transition Facilities Low-Cost, Global Manufacturing Footprint Focused in Asia – 32 Manufacturing Sites Globally, Including Affiliates Juarez (3 Plants) MEXICO São Paulo BRAZIL Quilmes ARGENTINA Belleville CANADA Shorter, AL USA Port Elizabeth SOUTH AFRICA Palmela (2) PORTUGAL Charleville FRANCE Nový Ji in, Hluk, Rychvald CZECH REP Szekesfehervar HUNGARY Ilava SLOVAKIA Gebze TURKEY Chennai Bhiwadi INDIA Pune Hiroshima, Hofu JAPAN Rayong THAILAND Daejeon, Pyeongtaek, Ulsan S. KOREA Dalian CHINA Chongqing Beijing Wuhu Changchun Nanjing Jinan Chengdu Nanchang Rio Grande Camaçari |
![]() Offer Full Range of Climate Products Compressors Powertrain Cooling EV & Hybrid Battery Cooling Fluid Transport HVAC Page 15 |
![]() Key Technologies Drive Strong Order Book and Awards Page 16 Strong Backlog Drives Sales Recognized by Our Customers and Industry Experts HVCC 3-year backlog of $700 million – Represents new business, net of lost business Strong backlog, higher volumes and currency impacts drive 7% forecasted sales CAGR through 2015 2013E 2014E 2015E 3-Year Backlog $700 Million |
![]() Page 17 HVCC Positioned to Fuel Growth Clear #2 global Climate player, with 13% market share Customer-focused solutions provider with worldwide presence Leading product and technology portfolio One of only two “full-line” suppliers Low-cost, Asian-centric manufacturing footprint Strong balance sheet and cash flow profile $700 million three-year backlog Gaining share in growing markets A World-Class Climate Organization |
![]() Halla Visteon Climate Control Yanfeng Visteon Electronics Interiors Our Family of Businesses Growth in China and Abroad Deutsche Bank Global Auto Industry Conference January 15, 2013 |
![]() Page 19 Yanfeng Visteon (YFV) Today 50% / 50% joint venture between Visteon / HASCO (SAIC) in China, established in 1994 One of the largest auto suppliers in China with five primary businesses – Interiors, electronics, seating, exteriors and safety SVW, SGM and SAIC represent about 65% of sales; export 11% 96 facilities and 29,000 employees 2012E total revenues of $7.1 billion By Customer SVW 34% SGM 28% SAIC 4% Export 11% Other 13% CAFM 4% JAC 2% DF Nissan 2% DPCA 2% By Product Overview 2011 Sales Breakdown Interiors 43% Seating 38% Electronics 8% Exterior 6% Safety 4% Tooling 1% |
![]() Page 20 YFV Structure • 50% / 50% JV between Visteon and HASCO (SAIC) YFV Beijing 2002 YFV Tooling 2006 Dongfeng Visteon 2003 YFV Jinqiao 2004 60% YFV Electronics 2002 50% 2004 YF Key Safety 50% YFPO Exterior 2007 YFV Hefei 2007 YFV Jiqiang 2008 YFV Nanjing 2010 YFV NJ FEM 2010 YFV Zhejiang 2011 50% YFJCI Seating 1997 • Technology JVs with international partners YFV Chongqing 2001 • Interior subsidiaries and JVs with OEMs to expand outside of Shanghai YFV India 2011 DETC 75% 50% 40% 75% 80% 51% 80% 80% 60% 99% 50% 20% 12.5% 25% 50% 50% 50% Interiors Operations |
![]() Page 21 Five YFV Businesses: Strong Technical Capabilities Cockpit Instrument panels Door panels Console Interior System Driver information Entertainment Controls Seats Trim covers Mechanisms Foam pads Seating System Bumpers Body trim Rear closures Fenders Exterior System Steering wheels Air bags Seat belts Safety System Full-service supplier (from styling to production) System integration World-class testing facilities Globally integrated technical centers Safety testing Acoustic and NVH testing Full design / engin. capability Advanced application software World-class testing facilities Structure design CAE verification New tech center under construction R&D / product engineering Crash simulation Lifecycle testing 850 Engineers 555 Engineers 500 Engineers 330 Engineers 220 Engineers Electronic System |
![]() Page 22 YFV’s Global Footprint Extensive Footprint with 96 Facilities and 29,000 Employees Note: As of October 2012. Symbol Business System Facilities Seating 39 Interiors 33 Exteriors 14 Electronics 7 Safety 2 Tooling 1 Total 96 Michigan, USA Ruesselsheim, Germany Kalol, India Beijing Changchun Xuzhou Shaoxing Wuhan Shi‘yan Guangzhou Yancheng Liuzhou Shanghai Shenyang Yantai Yizheng Wuhu Hefei Nanjing Taizhou Nantong Fuzhou Chongqing Chengdu Baotou Baoding Dalian Zhuzhou Changsha Zhengzhou Cixi Hangzhou Dongguan |
![]() Page 23 YFV’s Robust Historical Growth (1) Non-U.S. GAAP figure. Represents People’s Republic of China GAAP sales. 4.1 6.9 6.9 7.8 10.2 13.7 15.0 22.2 35.5 40.4 44.8 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E (RMB in Billions) YFV Group Total Sales (1) 27% Sales CAGR Since 2002 |
![]() Page 24 YFV: Well-Positioned in World’s Largest Auto Market China Passenger Car Sales Yanfeng Visteon Market Positions in China (Units in Millions) 11% China Market CAGR Yanfeng Visteon #1 China Auto Supplier in Important Segments Leading Market Positions Will Enable Yanfeng Visteon to Capitalize on Strong China Market Growth #1 Seats Instrument panels Door panels Audio Steering wheels #2 Bumpers #3 Clusters Consoles Source: IHS Automotive. 13.2 20.1 2012E 2016E |
![]() Page 25 A Solid Outlook YFV’s 2013 Outlook Total Sales Double-Digit Growth Sales expected to increase by $1 billion, driven by: Double-digit, year-over-year growth in Interiors, Seating, Exterior and Safety, as well as solid growth for Electronics Strong domestic sales, partially offset by weakness in exports Growing SVW, SGM and SAIC sales EBITDA Double-Digit Growth EBITDA increase reflects: Higher volumes and launch of significant new business, offset by: • Higher engineering costs to support new programs • Business mix changes and competitive market pressures • Costs related to new plant launches across all businesses Net Income Solid Growth Net income reflects strong EBITDA growth, offset by: Increase in D&A related to spending at several facilities, including 26 new or expanded production facilities, that will generate strong sales and earnings growth in future years Increase in interest related to cash needs to fund investments Higher taxes driven by higher tax rates for certain entities 2013 Outlook |
![]() Page 26 Strategic Initiatives at YFV Expand domestic footprint to support growth of core customers Grow customer base with local China OEMs; continued diversification with select Chinese and Japanese OEMs Support OEMs’ growth plans in China and abroad via cooperation with Visteon and other partners Strengthen technical capability in all business segments; enhance tooling and equipment as a competitive advantage Continue focus on development of new employees and YFV culture Transition to Global Supplier While Strengthening Base Market |
![]() Halla Visteon Climate Control Yanfeng Visteon Electronics Interiors Our Family of Businesses Financially Speaking Deutsche Bank Global Auto Industry Conference January 15, 2013 |
![]() Page 28 A Strong Capital Structure 9/30/12 6.75% Senior Notes due 2019 $495 Affiliate Debt / Other 100 Total Debt $595 Cash 920 Net Debt ($325) Visteon Leverage Adjusted EBITDA (2012E Guidance Midpoint) $600 Debt / Adjusted EBITDA < 1.0x Net Debt / Adjusted EBITDA N/M Visteon Debt and Cash Visteon Debt Maturity Schedule No Significant Near-Term Debt Maturities and Strong Cash Balances and Liquidity $72 $76 $1 $1 $445 2012 2013 2014 2015 2016+ (Dollars in Millions) (2) (1) (1) Includes Halla debt of $75 million. (2) Includes Halla cash of $351 million. Annual Working Capital Facility Renewals Includes $50M Bond Redemption in Dec 2012 |
![]() Page 29 2012 Guidance Update 2012 Guidance Current Outlook Commentary Sales $6.8 billion Expect full-year sales to be in line with guidance Adjusted EBITDA $590 - $610 million Expect to be at high-end of guidance or slightly above Q4 benefitted from the timing of several commercial claims and engineering recoveries, as well as SG&A savings Adjusted EPS $2.77 - $3.14 Expect to be at high-end of guidance Driven by strong Adjusted EBITDA Free Cash Flow +$25 million Expect free cash flow to be positive and in line with guidance Reflects higher Adjusted EBITDA offset by trade working capital On Track to Achieve High-end (or Above) of 2012 Profit Guidance |
![]() Page 30 2012 Adjusted EBITDA Recast 2012E 2012 Adjusted EBITDA Guidance Midpoint ($590-$610) $600 Exclude: Lighting and R-TEK (30) Exclude: Non-Cash Equity-Based Compensation Expense +25 Add: Non-Controlling Interest from Climate Transaction (10) 2012 Adjusted EBITDA Recast Midpoint ($575-$595) $585 Visteon’s 2012 Recasted Adjusted EBITDA is on the Same Basis as 2013 (Dollars in Millions) Visteon has recasted 2012 estimated Adjusted EBITDA to be on the same basis as 2013 Adjusted EBITDA. Three key adjustments: Lighting and R-TEK: entities sold in 2012 and will not be included in 2013 Non-Cash Equity-Based Compensation Expense: in 2013, this item will be excluded from Visteon’s Adjusted EBITDA Non-Controlling Interest from Climate Transaction: Visteon will incur additional non-controlling interest in 2013 related to Climate entities sold to Halla Y/Y Change in Methodology |
![]() (Units in Millions) 2012E 2013E % Growth North America Ford 2.8 3.0 6.2% Hyundai / Kia 0.7 0.7 5.8 All Other 11.7 11.7 (0.1) Subtotal 15.2 15.4 1.4% Europe Ford 1.4 1.3 (7.3%) PSA 2.0 2.0 (0.2) Renault / Nissan 2.3 2.2 (4.7) Hyundai / Kia 0.9 0.9 (1.9) All Other 12.3 12.3 (0.4) Subtotal 19.0 18.7 (1.5%) Asia Hyundai / Kia 5.4 5.5 1.0% All Other 35.2 36.3 3.1 Subtotal 40.6 41.8 2.8% South America Ford 0.4 0.4 0.3% All Other 4.0 4.1 3.4 Subtotal 4.3 4.5 4.2% Other 1.7 2.0 15.1 Total 80.9 82.4 1.9% Page 31 2013 Volume and Currency Outlook Source: IHS Automotive, October 2012 forecast. Used in conjunction with customer data to develop Visteon’s internal volume forecast. (1) Hedges impact transaction risk; do not impact translation risk. 2013 Production Volumes 2013 Exchange Rates Visteon Assumptions 2012E 2013E Exchange Rates $ / Euro $1.28 $1.30 Korean Won / $ 1,131 1,055 Effective Rates w/ Hedges (1) $ / Euro $1.34 $1.30 Korean Won / $ 1,122 1,094 Impact to Visteon (Dollars in Millions) Sales EBITDA Euro: $0.05 Decrease ($140) ($25) KRW: 25 Decrease $30 ($12) 2013 Currency Sensitivity Analysis |
![]() $2.96 - $4.19 Page 32 2013 Guidance $6.8B $7.3B - $7.5B $2.77 - $3.14 $575M - $595M $100M - $150M $105M - $125M $620M - $660M Excl. Restructuring and Transaction-Related Cash (1) (1) Represents 2012 Adjusted EBITDA Recast. Please see page 42 of presentation for calculation. Y/Y FX Impact of Positive $125M Y/Y FX Impact of Negative ($15M) Strong Year-Over-Year Improvement for All Key Financial Metrics Sales Adjusted EBITDA Adjusted EPS Adjusted Free Cash Flow 2012E 2013E 2012E Recast 2013E 2012E 2013E 2012E 2013E |
![]() Page 33 Value-Creating Uses of Cash Visteon Will Use Cash Balances to Drive Value for Shareholders Through Share Repurchases, Restructuring and Operational Improvements $920M Visteon Cash $353M (1) (1) Includes Halla cash of $351 million. 2013 Actions to Drive Shareholder Value Visteon Cash (9/30/2012) HVCC Net Proceeds Upsized total repurchase authorization to $300 million, to be executed during the next two years (includes $50 million of repurchases in 2012) $100 million to further reduce fixed-cost structure, right- size operations and address underperforming assets Strict focus on Y/Y operating improvements Increasing 2013 guidance for all key financial metrics Moving toward Q1 2013 closing of HVCC transaction Progressing plans to divest Interiors business and optimize Electronics business Focus on Value Enhancing Transactions Drive Fundamental Improvements Across Our Operations Focus Restructuring to Address Cash / Value Draining Areas Upsize Share Repurchase Program to $300M |
![]() Page 34 Strategic Imperatives Reduce Overhead Focused on achieving lean corporate overhead structure Plans being finalized and implemented Divest Interiors Non-core business Sale or alternative strategic placement of consolidated business Optimize Electronics Address Electronics’ strategy and global position Position business to unlock value of non-consolidated operations Address Legacy Issues Address historically underperforming assets Negotiate with customers for future sourcing commitments Committed to Provide Improved Value for Our Customers and Shareholders Unlock Value of Yanfeng Valuable asset with robust growth profile Improve transparency and grow YFV value to Visteon shareholders |
![]() Questions and Discussion |
![]() Halla Visteon Climate Control Yanfeng Visteon Electronics Interiors Our Family of Businesses Appendix Deutsche Bank Global Auto Industry Conference January 15, 2013 |
![]() Page 37 Interiors Product Line By Customer By Region EU 58% SA 21% AP 21% Other 14% GM 3% VW 5% PSA 24% Ford 24% Nissan / Renault 30% Note: 2012E Consolidated EBITDA excludes equity in affiliates and non-controlling interests. Business Focus New leadership in place to drive change Maintain investment to drive continued long-term technological offerings for customers Capitalize on strong positions in Asia Strategic Focus Sale or alternative strategic placement of consolidated business Currently Evaluating All Strategic Opportunities for Interiors Business Product Line Overview Key Products and Market Positions Go Forward Plan 2012E Consolidated Sales Breakdown Note: Includes consolidated and non-consolidated entities. Consolidated Non-Consolidated 2012E Sales $1.4 billion $7.4 billion 2012E EBITDA ~$32 million N/A Mkt Position #2 (12% Share) Headcount 6,750 24,925 Mfg Facilities 27 90 Equity Income – ~$140 million |
![]() Page 38 Electronics Product Line Product Line Overview Key Products and Market Positions Go Forward Plan Note: Includes consolidated and non-consolidated entities. (a) Instrument Clusters (b) OEM Audio Head Units (c) Electronic Climate Controls 2012E Consolidated Sales Breakdown By Customer By Region Tier 1 - Ford 14% Nissan / Renault 8% Mazda 6% JLR 5% Mitsubishi 3% Note: EBITDA margin based on Adjusted EBITDA (excluding equity in affiliates and non-controlling interests). (1) Assumes consolidation of all YFVE 50%-plus-owned joint ventures. Business Focus Continue to provide innovative solutions and technologies for customers Maintain disciplined investments in business Strategic Focus Optimize global scale and ownership to create the most value for Visteon customers and shareholders Address Electronics’ Strategy and Global Position Consolidated Consolidated + YFVE Consolidation 2012E Sales EBITDA Margin $1.2 billion (~6.0% Margin) $1.8 billion (~7.6% Margin) Global Mkt Position #8 (4% Share) #5 (6% Share) Headcount 5,900 10,700 Mfg Facilities 9 16 (1) Ford 44% Other 20% EU 38% AP 19% SA 5% NA 38% |
![]() Note: Discount rate for plan to be fully funded on PBO basis is 6.25%. Page 39 Lump Sum Program Reduced Net PBO Liability by $110 Million and Significantly Reduced Future Pension Plan Volatility (Dollars in Millions) U.S. Pension Funding Status as of December 31, 2012 Preliminary Amounts (Estimated) PBO Asset Value Unfunded Actual 12/31/2011 Funded Level (4.87% Discount Rate) $1,480 $1,151 $329 Interest on PBO 70 Stock Contribution (1/9/2012) 73 Cash Contribution 4 Asset Appreciation and Interest Income 114 Benefit Payments and Admin Expenses (76) (76) 12/31/2012 Funded Level (Before Discount Rate Change) $1,474 $1,266 $208 Discount Rate Change to 3.89% 183 12/31/2012 Funded Level (After Discount Rate Change) $1,657 $1,266 $391 Lump Sum Program (411) (301) 12/31/2012 Funded Level (After Lump Sum Program) $1,246 $965 $281 |
![]() Page 40 2013 Guidance 2013 Guidance Product Sales $7.3 B - $7.5 B Adjusted EBITDA $620 M - $660 M Free Cash Flow Free Cash Flow (1) ($75) M - $25 M Adjusted Free Cash Flow (ex. Restructuring and Transaction-Related Cash) $100 M - $150 M Adjusted EPS $2.96 - $4.19 Other Selected Items: 2013 Guidance Depreciation and Amortization $275 M Interest Payments $55 M Cash Taxes Operating $120 M - $140 M Climate Transaction $20 M - $40 M Restructuring Payments $75 M - $125 M Capital Spending $250 M (1) Free cash flow equal to cash from operating activities, less capital expenditures. Includes $75-$125 million of restructuring and $50 million in taxes and fees, primarily related to Halla Visteon Climate Control transaction. |
![]() Page 41 2013 Adjusted EBITDA Drivers Adjusted EBITDA Improvement Driven by Higher Volumes and Administrative Staff Cost Reductions Adjusted EBITDA $600M $640M 2012 Midpoint 2013 Midpoint $585M ($30M) Lighting Disc Ops / R-TEK $25M Equity- Based Comp Expense Volume ($10M) NCI Impact of HVCC Transaction Currency Net Cost Performance Y/Y Change in Methodology 2012 Re-cast Other NCI |
![]() Page 42 Reconciliation of Non-GAAP Financial Information Adjusted EBITDA Free Cash Flow + + (1) (1) Could be impacted by timing of Fixed-Cost Restructuring Plan charges. (2) 2011 and 2012 reconciliation not yet recast for equity-based compensation expense. (2) 2012 FY Guidance Provided 2011 2012 During Q3 2012 Earnings 2013 FY Guidance (Dollars in Millions) Full Year 1st Qtr 2nd Qtr 3rd Qtr Low-end High-end Low-end High-end Adjusted EBITDA $685 $150 $151 $131 $590 $610 $620 $660 Interest expense, net 27 9 6 13 41 41 50 50 Loss on debt extinguishment 24 - - 4 4 4 - - Provision for income taxes 127 27 42 33 140 140 160 120 Depreciation and amortization 295 64 67 64 260 260 275 275 Restructuring and other (income), expense net 11 63 11 (11) 80 80 150 100 Equity investment gain - - (63) - (63) (63) - - Other non-operating costs, net 30 5 2 5 13 13 10 10 Non-cash equity-based compensation expense - - - - - - 20 20 Discontinued operations 91 11 11 8 30 30 - - Net Income (loss) attributable to Visteon $80 ($29) $75 $15 $85 $105 ($45) $85 Reconciliations to 2012 Adjusted EBITDA Recast (2012 on Same Basis as 2013) 2012 FY Guidance Recast Low-end High-end Adjusted EBITDA $590 $610 Exclude: Lighting and R-TEK operations (30) (30) Exclude: Non-cash equity-based compensation expense 25 25 Add: Non-controlling interest from Climate transaction (10) (10) Adjusted EBITDA Recast $575 $595 2012 FY Guidance 2011 2012 Provided During 2013 FY Guidance (Dollars in Millions) Full Year 1st Qtr 2nd Qtr 3rd Qtr Q3 2012 Earnings Low-end High-end Cash from (used by) operating activities $175 $19 ($12) $156 $255 $175 $275 Less: Capital expenditures 258 53 49 44 230 250 250 Free cash flow ($83) ($34) ($61) $112 $25 ($75) $25 Reconciliations to Adjusted Free Cash Flow (ex. Restructuring and Transaction-Related Cash) Low-end High-end Free cash flow $25 $25 ($75) $25 Exclude: Restructuring cash payments 60 80 125 75 Exclude: Transaction-related cash 20 20 50 50 Adjusted free cash flow (ex. restructuring and transaction-related cash) $105 $125 $100 $150 |
![]() Page 43 Earnings per Share Adjusted EPS 2012 FY Guidance Provided 2011 2012 During Q3 2012 Earnings 2013 FY Guidance (Dollars and Shares in Millions) Full Year 1st Qtr 2nd Qtr 3rd Qtr Low-end High-end Low-end High-end Net income (loss) attributable to Visteon $80 ($29) $75 $15 $85 $105 ($45) $85 Average shares outstanding, diluted 52.0 51.9 53.7 53.8 53.5 53.5 52.3 51.3 Earnings per share $1.54 ($0.56) $1.40 $0.28 $1.59 $1.96 ($0.86) $1.66 Memo: Items Included in Net income (loss) attributable to Visteon Restructuring and other income, (expense) net (11) (63) (11) 11 (80) (80) (150) (100) Equity investment gain - - 63 - 63 63 - - Taxes related to equity investment gain - - (6) - (6) (6) - - Taxes related to HVCC transaction - - - - - - (40) (20) Other non-operating costs, net (30) (5) (2) (5) (13) (13) (10) (10) Loss on debt extinguishments (24) - - (4) (4) (4) - - Asset impairments and cost related to disc. ops. (68) (4) (12) (7) (23) (23) - - Total ($133) ($72) $32 ($5) ($63) ($63) ($200) ($130) Memo: Adjusted EPS Net income (loss) attributable to Visteon $80 ($29) $75 $15 $85 $105 ($45) $85 Items in net income (loss) attributable to Visteon (133) (72) 32 (5) (63) (63) (200) (130) Adjusted net income (loss) $213 $43 $43 $20 $148 $168 $155 $215 Average shares outstanding, diluted 52.0 51.9 53.7 53.8 53.5 53.5 52.3 51.3 Adjusted earnings per share $4.10 $0.83 $0.80 $0.37 $2.77 $3.14 $2.96 $4.19 |
![]() Page 44 Adjusted EBITDA Reconciliation by Product Group Disc Ops/ Total (Dollars in Millions) Total Retained HVCC Electronics Interiors Elims Visteon Product Sales $4,263 $152 $4,111 $1,243 $1,379 ($105) $6,780 Gross Margin $380 $4 $376 $115 $73 - $568 Employee Charges / Corp Severance (1) - (1) (4) (1) - (6) Adjusted Gross Margin $381 $4 $377 $119 $74 - $574 % of Product Sales 8.9% 2.6% 9.2% 9.6% 5.4% 8.5% SG&A Product Line Specific and Allocated SG&A (192) (8) (184) (81) (74) (16) (363) Employee Charges / Corp Severance 2 - 2 1 1 - 4 Adjusted SG&A ($190) ($8) ($182) ($80) ($73) ($16) ($359) Adjusted EBITDA Adjusted Gross Margin $381 $4 $377 $119 $74 - $574 Adjusted SG&A (190) (8) (182) (80) (73) (16) (359) Exclude D&A 177 3 174 36 31 16 260 Adjusted EBITDA (excl. Equity in Affil., NCI) $368 ($1) $369 $75 $32 - $475 % of Product Sales 8.6% (0.7%) 9.0% 6.0% 2.3% 0.0% 7.0% Equity in Affiliates 5 - 5 17 141 - 163 Noncontrolling Interests (62) - (62) (1) (2) - (65) Discontinued operations - - - - - 27 27 Adjusted EBITDA $311 ($1) $312 $91 $171 $27 $600 Climate 2012 FY PG Guidance Underlying Corporate Guidance Given During Q3 Earnings Call |
![]() Combined Electronics (Dollars in Millions) Electronics YFVE & YFVE Product Sales $1,243 $700 $1,783 Gross Margin $115 $65 $180 Employee Charges / Corp Severance (4) - (4) Adjusted Gross Margin $119 $65 $184 % of Product Sales 9.6% 9.3% 10.3% SG&A Product Line Specific and Allocated SG&A (81) (15) (96) Employee Charges / Corp Severance 1 - 1 Adjusted SG&A ($80) ($15) ($95) Adjusted EBITDA Adjusted Gross Margin $119 $65 $184 Adjusted SG&A (80) (15) (95) Exclude D&A 36 10 46 Adjusted EBITDA (excl. Equity in Affil., NCI) $75 $60 $135 % of Adjusted Sales 6.0% 8.6% 7.6% Page 45 Electronics – Consolidated + YFVE Reconciliation (1) Includes Visteon / YFVE eliminations. Note: YFVE estimates only, not purported to be U.S. GAAP. (1) 2012 FY Electronics Guidance Underlying Corporate Guidance Given During Q3 Earnings Call |
![]() www.visteon.com |