Visteon Corporation Creating and Delivering Value May 30, 2013 Exhibit 99.1 Our Family of Businesses Electronics Interiors Yanfeng Visteon |
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. 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 productions levels, customer price reductions and currency exchange rates. conditions within the automotive industry, including (i) the automotive vehicle production volumes and schedules of our customers, and in particular Ford's and Hyundai-Kia’s vehicle production volumes, (ii) the financial condition of our customers and the effects of any restructuring or reorganization plans that may be undertaken by our customers, including work stoppages at our customers, 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; 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 execute on our transformational plans and cost-reduction initiatives in the amounts and on the timing contemplated; 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; 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, 2012). Forward-Looking Information |
Page 3 Because not all companies use identical calculations, Adjusted Gross Margin, Adjusted SG&A, Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, Free Cash Flow and Adjusted 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 2013, the Company is providing reconciliations to the most directly comparable GAAP financial measures on the subsequent slides. 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 and 2013 YTD key accomplishments Provide overview of Halla Visteon Climate Control (HVCC) Offer insight on Yanfeng Visteon Highlight Visteon Electronics Review 2013 full-year guidance |
Overview Key Businesses Visteon in Summary Page 5 (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. Global auto supplier of climate, electronics and interiors products Worldwide manufacturing / engineering footprint with emphasis on low-cost regions Strategically positioned to capitalize on emerging- market growth 2012 sales: $6.9 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 $1.3 Billion $1.4 Billion 2012 Sales Yanfeng Visteon Interiors Electronics Seating Exteriors Safety $7.0 Billion Non-Consolidated |
Visteon’s Progression to an Asia-Centric Business Page 6 Asia Sales as Percentage of Visteon Total Sales Bold Transformation from U.S.-Centric Company with One Major Customer To Predominantly Asia-Based, Multi-Customer Global Enterprise 17% 29% 33% 39% 48% 56% 61% 71% 12% 22% 26% 30% 34% 40% 42% 44% 2005 2006 2007 2008 2009 2010 2011 2012 Including Non-Consolidated Operations Consolidated |
Page 7 Visteon’s Strategic Plan – Leveraging 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 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 Visteon Stakeholders Corporate Right-sizing Minimal footprint Staff businesses with lean and only “necessary” support |
Achievements in 2012 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 8 February April August August September November December December |
Page 9 2012 New Business Wins (Dollars in Millions) During 2012, Visteon was Awarded Approximately $1 Billion of Net New Business, Which Will Launch During the Next Five Years Climate 60% Interiors 5% Electronics 35% Climate 67% Electronics 13% Interiors 20% Electronics 48% Interiors 15% Climate 37% Incremental New Business Wins Re-Wins Lost Business $750 2012 2012 2012 $450 ($210) |
Healthy Backlog Fuels 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 10 Visteon Sales and Net Backlog Net backlog: incremental new business net of lost business that will launch during the next three years $6.9B $7.4B Base Including Volume, Currency, Pricing Net Backlog Addt’l Net Backlog Base Including Volume, Currency, Pricing $0.8B Total Net Backlog Incremental new business includes 2012 wins as well as wins recognized in previous years |
Sharpening Focus on Fixed-Cost Reduction Actions Initiative Under Way to Reduce Visteon Fixed Costs Page 11 Visteon announced during its third quarter 2012 earnings call a focused plan to further reduce fixed costs – “Fixed costs” include SG&A costs excluding incentive compensation expense and certain Cost of Goods Sold including information technology costs and other costs supporting engineering staff On track to achieve 2013 fixed costs reduction of 5% – Targeting significant savings related to Information Technology costs, North American headcount (down 6% since 2012 year-end), and reduced global executive leadership (reduced 30% since 2012 year-end) Savings will drive additional year-over-year improvement in 2014, our goal for savings beyond 2013 is an additional $30-$70 million Note: SG&A costs in total may fluctuate year-to-year related to incentive compensation expense, currency, and costs related to the HVCC transition. SG&A costs as a percent of sales will show year-over-year improvement. Fixed-Cost Reduction Plan |
Page 12 Actions Taken in 2013 Strong market / customer acceptance HVCC stock trading at record highs – Visteon 70% stake increased by approximately $10 per Visteon share since January 1, 2013 to approximately $42 per Visteon share Targeting year-over-year improvement in 2013 – Launching $800 million three-year net order book (2013-2015) – Q1 2013 sales up 8% Y/Y; Adjusted EBITDA up 19% Y/Y – On track to achieve 2013 announced 5% fixed costs (1) reduction N. America admin staff headcount down 6% since year end Global executive leadership reduced by 30% since year end Cash residing at U.S. parent improved – 3/31/13: $384 million – 12/31/12: $278 million Implemented HVCC Consolidation of Climate Ops into 70%-Owned Halla JV Announced 2013 Full-Year Guidance Adjusted EBITDA Up $42M vs. 2012 on Comparable Basis Incremental Cash at Parent Approved Additional $250M Share Buyback Over Two-Year Period Acquired 50% of commitment ($125 million) since January 1, 2013 2.2 million reduction to shares (~ 4% of shares outstanding) Visteon Has Undertaken Significant Value-Creation Steps in 2013 as We Continue to Deliver on Our Strategic Plan (1) Include SG&A costs (ex. incentive compensation expenses) as well as certain fixed costs included in COGS, primarily IT-related. |
May 30, 2013 Halla Visteon Climate Control (HVCC) Yanfeng Visteon Electronics Interiors Our Family of Businesses |
A Valuable Organization HVCC Overview Page 14 Overview By Customer By Region 2012 Sales Breakdown 2012 Climate Global Market Share (2) (1) Represents new business, net of lost business. (2) IHS unconsolidated unit share. 3-Year Backlog (1) #2 climate player globally World-class product and technology portfolio One of only two “full-line” suppliers Strong growth profile with $700 million backlog Experienced leadership team with strong track record – YH Park (CEO) with Halla since formation in 1986 Extensive M&A experience and integration success HVCC 13% Denso 23% Valeo 12% Delphi 7% Behr 10% Calsonic 5% Other 24% Modine 2% Sanden 4% #2 Global Climate Player, with 13% Market Share 2013E 2014E 2015E 3-Year Backlog $700 Million AP 59% EU 23% NA 18% Other 17% Ford 23% Hyundai / Kia 54% Chrysler 1% Suzuki 2% VW 2% Mazda 2% |
HVCC Order Book 15% Historical Sales CAGR – Strong Backlog, Higher Volumes and Currency Drive 7% Forecasted Sales CAGR Post Transaction (Dollars in Millions) Note: 2006-2009 financials are based on Korean GAAP. 2010-2012 financials are based on Korean IFRS. HVCC Sales $1,406 $2,028 $1,994 $1,788 $2,511 $2,981 $3,275 2006 2007 2008 2009 2010 2011 2012 2012 2015E Page 15 |
Page 16 Page 16 HVCC Transaction/Integration Success HVCC’s Stock Price Has Increased to Over KRW 33,000 / Share – Up 227% Since 2005 Revenue increased by 16% annually Operating profits improved by ~$120 million over the period Leveraged HVCC fixed costs SGA decreased from 2.0% of sales in 2006 to 1.7% in 2012 Engineering decreased from 3.0% of sales in 2006 to 1.7% in 2012 Increased customer diversification Non-HMG sales increased by $383 million since 2006 Quality (PPM) improved by 37% Safety (LTCR) improved by 60% Key Benefits of 2006-2012 Transactions Transaction / Integration Experience and Success Halla Stock Price Performance HVCC has considerable acquisition / integration experience From 2006-2012, acquired or increased ownership in 11 operations (9 from Visteon) Added $1.1 billion in revenue and 4,700 employees (at time of acquisitions) HVCC transaction completed in compressed time Day 1 activities: no customer interruptions Integration proceeding on track |
Page 17 Page 17 HVCC 2013 YTD Stock Price Performance HVCC Share Price Up 40% Since Beginning of 2013 HVCC Stock Price Performance HVCC +39.8% S&P 500 +13.5% Visteon +18.5% Auto Supplier Index (1) +26.6% Note: Stock price performance from January 2, 2013 through May 28, 2013; ThomsonONE. (1) Includes BorgWarner, Continental, Delphi, Denso, Faurecia, Federal-Mogul, Johnson Controls, Lear, Meritor, Tenneco, TRW and Valeo. 85% 95% 105% 115% 125% 135% Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 HVCC Visteon S&P 500 Auto Supplier Index |
May 30, 2013 Yanfeng Visteon (YFV) Yanfeng Visteon Electronics Interiors Our Family of Businesses |
Page 19 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 66% of sales; export 7% 102 facilities and 30,800 employees 2012 total revenues of $7.2 billion By Customer SVW 33% SGM/GM 29% SAIC 4% Export 7% Other 5% CAFM 6% COEM 5% JP/KR 8% Other Biz 3% By Product Overview 2012 Sales Breakdown Interiors 43% Seating 39% Electronics 8% Exterior 6% Safety 4% Tooling 1% |
Page 20 Five YFV Businesses: Strong Technical Capabilities Cockpit Instrument panels Door panels Console Interior System Driver information Entertainment Controls Electronic System 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 759 Engineers 501 Engineers 473 Engineers 285 Engineers 230 Engineers |
21 YFV Global Footprint Extensive Footprint: 102 Facilities with 30,800 Employees Changchun Xuzhou Shaoxing Wuhan Guangzhou Yancheng Liuzhou Shanghai Beijing Shenyang Yantai Yizheng Wuhu Hefei Nanjing Taizhou Nantong Fuzhou Chongqing Chengdu Ningbo Michigan, USA Ruesselsheim, Germany Kalol, India Dalian Zhuzhou Zhengzhou Cixi Dongguan Changsha Shi‘yan Hangzhou Baotou Baoding Langfang |
Page 22 YFV’s Robust Historical Growth (1) Non-U.S. GAAP figure. Represents People’s Republic of China GAAP sales. YFV Group Total Sales (1) 29% Sales CAGR Since 2002 4.1 7.0 7.0 7.9 11.4 14.7 15.6 22.2 35.8 40.3 45.2 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 (RMB in Billions) |
Page 23 A Solid Outlook YFV’s 2013 Outlook Total Sales Double-Digit Growth Sales expected to increase by $1.2 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 35 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 |
May 30, 2013 Visteon Electronics Yanfeng Visteon Electronics Interiors Our Family of Businesses |
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Visteon Combined Electronics Evolution Page 26 Cockpit Electronics Has Been a Significant Growth Business Since 2009 $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Vehicle Electronics Cockpit Non -Consol Cockpit Consol Combined Product Revenues Consolidated + Non-Consolidated |
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May 30, 2013 2013 Full-Year Guidance Yanfeng Visteon Electronics Interiors Our Family of Businesses |
Page 29 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 $4.04 - $5.52 Other Selected Items: 2013 Guidance Depreciation and Amortization $270 M Interest Payments $50 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 30 Summary Significant value creation since 2012 Completed sale of Visteon Climate to Halla Repurchased $175 million of Visteon shares since beginning of Q4 2012 Closed / divested several underperforming and non-core assets Solid financial profile and balance sheet Sales grow from $6.9 billion in 2012 to $8.2 billion in 2015 $218 million in net cash and $101 million of U.S. ABL availability 1.2x Debt / EBITDA and no significant debt maturities until 2019 2013 EBITDA forecasted to improve by ~$40 million versus 2012 on comparable basis Strong portfolio of businesses #2 climate player globally and one of only two “full-line” suppliers Electronics is a growing business in an industry positioned for consolidation Well-positioned in growing China markets through Yanfeng Visteon China market leader with #1 position in seven key segments Yanfeng sales have surpassed Visteon Visteon Has Undertaken Significant Value-Creation Steps as We Continue to Deliver on Our Strategic Plan |
Q&A |
May 30, 2013 Appendix |
Reconciliation of Non-GAAP Financial Information Sales The Company defines Adjusted Gross Margin as gross margin, adjusted to eliminate the impacts of employee severance, pension settlements, other non-operating costs and stock-based compensation expense. . Adjusted Gross Margin The Company defines Adjusted SG&A as SG&A, adjusted to eliminate the impacts of employee severance, pension settlements, other non- operating costs and stock- based compensation expense. Adjusted SG&A 2012 2013 (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Net sales, products (incl. discontinued operations) $1,856 $1,819 $1,656 $1,823 $7,154 $1,856 Less: Discontinued operations 139 126 32 - 297 - Net sales, products $1,717 $1,693 $1,624 $1,823 $6,857 $1,856 2012 2013 (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Gross margin (incl. discontinued operations) $150 $141 $133 $198 $622 $154 Less: Discontinued operations 16 13 4 - 33 - Gross margin $134 $128 $129 $198 $589 $154 Less: Employee severance, pension settlements and other (4) (2) - (11) (17) - Subtotal ($4) ($2) $0 ($11) ($17) $0 Adjusted gross margin $138 $130 $129 $209 $606 $154 2012 2013 (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr SG&A (incl. discontinued operations) $94 $90 $90 $102 $376 $56 Less: Discontinued operations 3 3 1 0 7 (30) SG&A $91 $87 $89 $102 $369 $86 Less: Employee severance, pension settlements and other 1 - 4 5 10 - Stock-based compensation expense 7 6 6 5 24 6 Subtotal $8 $6 $10 $10 $34 $6 Adjusted SG&A $83 $81 $79 $92 $335 $80 Page 33 |
Page 34 Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted EBITDA Free Cash Flow and Adjusted Free Cash Flow 2012 2013 2013 FY Guidance (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Low-end High-end Adjusted EBITDA $143 $147 $134 $202 $626 $170 $620 $660 Interest expense, net 9 6 13 7 35 10 40 40 Provision for income taxes 27 42 33 19 121 (18) 85 50 Depreciation and amortization 64 67 64 63 258 67 270 270 Restructuring expense 41 1 2 35 79 20 125 75 Equity investment gain - (63) - - (63) - - - Other income and expense 22 10 (9) 18 41 16 30 30 Other non-operating costs, net 5 2 5 15 27 - 15 15 Stock-based compensation expense 7 6 6 6 25 6 20 20 Discontinued operations net loss/(income) (3) 1 5 - 3 - - - Net Income (loss) attributable to Visteon ($29) $75 $15 $39 $100 $69 $35 $160 2012 2013 2013 FY Guidance (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Low-end High-end Cash from (used by) operating activities $19 ($12) $156 $76 $239 $122 $175 $275 Less: Capital expenditures 53 49 44 83 229 63 250 250 Free cash flow ($34) ($61) $112 ($7) $10 $59 ($75) $25 Reconciliations to Adjusted Free Cash Flow (ex. Restructuring and Transaction-Related Cash) Free cash flow ($34) ($61) $112 ($7) $10 $59 ($75) $25 Exclude: Restructuring cash payments 38 3 2 3 46 15 125 75 Exclude: Transaction-related cash 22 7 6 11 46 21 50 50 Adjusted free cash flow $26 ($51) $120 $7 $102 $95 $100 $150 |
Page 35 Reconciliations of Adjusted Net Income, Earnings per Share and Adjusted Earnings per Share 2012 2013 2013 FY Guidance (Dollars and Shares in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Low-end High-end Net income (loss) attributable to Visteon ($29) $75 $15 $39 $100 $69 $35 $160 Average shares outstanding, diluted 51.9 53.7 53.8 53.0 53.3 51.9 50.7 50.7 Earnings per share ($0.56) $1.40 $0.28 $0.74 $1.88 $1.33 $0.69 $3.16 Memo: Items Included in Net income (loss) attributable to Visteon Restructuring expense (41) (1) (2) (35) (79) (20) (125) (75) Equity investment gain - 63 - - 63 - - - Other income and expense (22) (10) 9 (18) (41) (16) (30) (30) Other non-operating costs, net (5) (2) (5) (15) (27) - (15) (15) Taxes related to equity investment gain - (6) - - (6) - - - Lighting net income / (loss) 3 (1) (5) - (3) - - - Total ($65) $43 ($3) ($68) ($93) ($36) ($170) ($120) Memo: Adjusted EPS Net income (loss) attributable to Visteon ($29) $75 $15 $39 $100 $69 $35 $160 Items in net income (loss) attributable to Visteon (65) 43 (3) (68) (93) (36) (170) (120) Adjusted net income (loss) $36 $32 $18 $107 $193 $105 $205 $280 Average shares outstanding, diluted 51.9 53.7 53.8 53.0 53.3 51.9 50.7 50.7 Adjusted earnings per share $0.69 $0.60 $0.33 $2.02 $3.62 $2.02 $4.04 $5.52 |
Page 36 Comparing 2013 and 2012 Adjusted EBITDA A Number of Items Should Be Considered to Properly Compare 2012 and 2013 Adjusted EBITDA Visteon’s 2012 recast Adjusted EBITDA totaled $626 million Three additional items are noted in the chart below to allow for year-over-year comparisons: R-TEK (sold in 2012): $3 million included in 2012 Adjusted EBITDA HVCC non-controlling interest: In 2013, Visteon expects to incur additional NCI of approximately $10 million related to the Climate entities that were sold to Halla Currency: $15 million unfavorable currency impact in 2013 $628M 2012 Actual 2013 Guidance $598M ($3M) R-TEK $25M Equity- Based Comp Expense ($10M) NCI Impact of HVCC Transaction Y/Y Change in Methodology 2012 Comparable $626M 2012 Recast ($27M) Lighting Disc Ops $620M - $660M ($15M) Currency |
Page 37 Adjusted EBITDA Build-up by Product Group 2012 and Q1 2013 Product Group Adjusted EBITDA 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Adjusted EBITDA (excl. Equity in Affil., NCI) Climate $99 $94 $100 $147 $440 $125 Electronics 25 26 16 42 109 26 Interiors 5 4 10 21 40 (4) Central (10) (8) (12) (30) (60) (6) Total $119 $116 $114 $180 $529 $141 Equity in Affiliates Climate $1 $1 - $3 $5 $2 Electronics 3 4 5 6 18 4 Interiors 38 35 34 34 141 38 Central - - - - - - Total $42 $40 $39 $43 $164 $44 Non-Controlling Interests Climate ($16) ($9) ($18) ($20) ($63) ($14) Electronics - - (1) - (1) - Interiors (2) - - (1) (3) (1) Central - - - - - - Total ($18) ($9) ($19) ($21) ($67) ($15) Adjusted EBITDA Climate $84 $86 $82 $130 $382 $113 Electronics 28 30 20 48 126 30 Interiors 41 39 44 54 178 33 Central (10) (8) (12) (30) (60) (6) Total $143 $147 $134 $202 $626 $170 (Dollars in Millions) |
Page 38 Reconciliation of Climate Financial Information Climate 2012 2013 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Product Sales $1,023 $1,065 $1,024 $1,174 $4,286 $1,228 Gross Margin $89 $81 $89 $119 $378 $112 Employee Charges / Corp Severance - (1) - (8) (9) - Adjusted Gross Margin $89 $82 $89 $127 $387 $112 % of Sales 8.7% 7.7% 8.7% 10.8% 9.0% 9.1% SG&A Product Line Specific and Allocated SG&A (35) (37) (35) (26) (133) (36) Employee Charges / Corp Severance - - - - - - Adjusted SG&A ($35) ($37) ($35) ($26) ($133) ($36) Adjusted EBITDA Adjusted Gross Margin $89 $82 $89 $127 $387 $112 Adjusted SG&A (35) (37) (35) (26) (133) (36) Exclude D&A 45 49 46 46 186 49 Adjusted EBITDA (excl. Equity in Affil., NCI) $99 $94 $100 $147 $440 $125 % of Sales 9.7% 8.8% 9.8% 12.5% 10.3% 10.2% Equity in Affiliates 1 1 - 3 5 2 Noncontrolling Interests (16) (9) (18) (20) (63) (14) Adjusted EBITDA $84 $86 $82 $130 $382 $113 (Dollars in Millions) |
Page 39 Climate Product Group – Additional Q1 2013 Detail Climate Product Group (1) (2) (3) Halla Reclasses/ Remove Halla Climate Halla Climate Climate Total (Dollars in Millions) KIFRS Adjustments Elect. / Inter. Product Group Product Group Non-Halla Eliminations Climate Product Sales $1,145 ($3) ($32) $1,110 $1,110 $179 ($61) $1,228 COGS (968) (74) 29 (1,013) (1,013) (164) 61 (1,116) Adjusted Gross Margin $177 ($77) ($3) $97 $97 $15 - $112 Adjusted SG&A (105) 76 - (29) (29) (7) - (36) Operating Income $72 ($1) ($3) $68 $68 $8 - $76 Other Income 18 (18) - - - - - - D&A 33 12 (1) 44 44 5 - 49 EBITDA $123 ($7) ($4) $112 $112 $13 - $125 Equity in Affiliates - - - - - 2 - 2 Non-Controlling Interest (3) (10) - (13) (13) (1) - (14) Adjusted EBITDA $120 ($17) ($4) $99 $99 $14 - $113 Percent of Sales Adjusted EBITDA Ex. Eq. Aff. And NCI 10.7% 10.1% 10.1% 7.3% 10.2% Incl. Eq. Aff. And NCI 10.5% 8.9% 8.9% 7.8% 9.2% (2) - Halla K-IFRS reporting includes electronics and interiors plants that are excluded from Visteon's climate segment and included in Visteon's respective segments. (3) - Q1 2013 Climate non-Halla includes: a. Entities within HVCC transaction scope represent approximately $11M in Adjusted EBITDA, expected to transact in Q2. b. Entities excluded from HVCC transaction scope represent approximately $3M in Adjusted EBITDA. (1) - Reclasses/adjustments include reclassifications for engineering, freight, and hedging impact presentation variances, differences in depreciation/amortization in connection with asset values established in fresh-start accounting under US GAAP, and other US GAAP/policy and timing differences. |
Page 40 Reconciliation of Electronics Financial Information Electronics 2012 2013 (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Product Sales $329 $304 $304 $337 $1,274 $365 Gross Margin $29 $33 $23 $53 $138 $37 Employee Charges / Corp Severance - - - (2) (2) - Cadiz Non-Operating Costs (4) - - 3 (1) - Adjusted Gross Margin $33 $33 $23 $52 $141 $37 % of Sales 10.0% 10.9% 7.6% 15.4% 11.1% 10.1% SG&A Product Line Specific and Allocated SG&A (16) (15) (15) (17) (63) (18) Employee Charges / Corp Severance - - - - - - Adjusted SG&A ($16) ($15) ($15) ($17) ($63) ($18) Adjusted EBITDA Adjusted Gross Margin $33 $33 $23 $52 $141 $37 Adjusted SG&A (16) (15) (15) (17) (63) (18) Exclude D&A 8 8 8 7 31 7 Adjusted EBITDA (excl. Equity in Affil., NCI) $25 $26 $16 $42 $109 $26 % of Sales 7.6% 8.6% 5.3% 12.5% 8.6% 7.1% Equity in Affiliates 3 4 5 6 18 4 Noncontrolling Interests - - (1) - (1) - Adjusted EBITDA $28 $30 $20 $48 $126 $30 |
Page 41 Combined Electronics (Consolidated + Non-Consolidated) Q1 2013 Electronics Financial Detail Note: Includes all Electronics non-consolidated joint ventures. Estimates only, not purported to be U.S. GAAP. (1) Includes eliminations. (1) Combined Electronics Including Non-Consolidated Non-Consol. (Dollars in Millions) Electronics Affiliates Affiliates Product Sales $365 $212 $530 Gross Margin $37 $19 $56 Employee Charges / Corp Severance - - - Cadiz Non-Operating Costs - - - Adjusted Gross Margin $37 $19 $56 % of Product Sales 10.1% 9.1% 10.6% SG&A Product Line Specific and Allocated SG&A ($18) ($5) ($23) Employee Charges / Corp Severance - - - Adjusted SG&A ($18) ($5) ($23) Adjusted EBITDA Adjusted Gross Margin $37 $19 $56 Adjusted SG&A (18) (5) (23) Exclude D&A 7 4 11 Adjusted EBITDA (excl. Equity in Affil., NCI) $26 $18 $44 % of Adjusted Sales 7.1% 8.4% 8.3% |
Reconciliation of Interiors Financial Information Interiors 2012 2013 (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr Product Sales $393 $352 $307 $336 $1,388 $317 Gross Margin $16 $14 $17 $27 $74 $5 Employee Charges / Corp Severance - (1) - (3) (4) - Adjusted Gross Margin $16 $15 $17 $30 $78 $5 % of Sales 4.1% 4.3% 5.5% 8.9% 5.6% 1.6% SG&A Product Line Specific and Allocated SG&A (19) (18) (15) (17) (69) (17) Employee Charges / Corp Severance - - - - - - Adjusted SG&A ($19) ($18) ($15) ($17) ($69) ($17) D&A 8 7 8 8 31 8 Adjusted D&A $8 $7 $8 $8 $31 $8 Adjusted EBITDA Adjusted Gross Margin $16 $15 $17 $30 $78 $5 Adjusted SG&A (19) (18) (15) (17) (69) (17) Adjusted D&A 8 7 8 8 31 8 Adjusted EBITDA (excl. Equity in Affil., NCI) $5 $4 $10 $21 $40 ($4) % of Sales 1.3% 1.1% 3.3% 6.3% 2.9% (1.3%) Equity in Affiliates, excluding YFJC gain 38 35 34 34 141 38 Noncontrolling Interests (2) - - (1) (3) (1) Adjusted EBITDA $41 $39 $44 $54 $178 $33 Page 42 |
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