Slide 1: Visteon Q4 and Full-Year 2023 Earnings
Visteon Q4 and Full-Year 2023 Earnings February 20, 2024
Slide 2: 2023 in Review
2023 in Review Net Sales Adjusted EBITDA Adjusted FCF $3,954 Million $434 Million $150 Million 12% Y/Y Base Sales Growth(1) 11.0% Margin 35% Conversion DELIVERING ON EXPANDING EXECUTING ON STRONG NEW RETURNING CONTINUED OUR PRODUCT BUSINESS WIN CAPITAL TO GROWTH PROFITABILITY LAUNCHES ACTIVITY SHARE
Slide 3: Executing on our Strategic Objectives
Executing on our Strategic Objectives Added ~$1 billion in base sales over two years (Dollars in millions) 2023 Achievements Recoveries ~$1.0B Gaining Share in Digital Clusters Extended our market leadership position with ~30% Y/Y Base Sales $3,954 $3,756 growth in digital cluster sales $3,662 Enabl
Slide 4: 2023 New Product Launches
2023 New Product Launches Successful launches of new products driving growth ~45% Digital Cluster FY 2023 New Product Launches Summary 129 ~35% SmartCore™, Infotainment, 24 ~15% New Product & Displays OEMs with New New Product Launches Launches Product Launches on Electric Vehicles ~20% BMS & Other
Slide 5: 2023 New Business Wins
2023 New Business Wins Strong demand for Visteon products drove $7.2B in NBWs, significantly above initial target FY New Business Wins Key Q4 New Business Wins $7.2B Infotainment System and Display Other 11% Displays Infotainment system and 10” display for $6.0B SUV platform with Global OEM 22% Clus
Slide 6: 2024 Sales Outlook
2024 Sales Outlook Anticipating robust growth-over-market driven by new product launches Industry Factors 2024 Growth-over-Market Global Light Vehicle Production High number of launches in 2023 and 2024 Assumptions roughly in line with industry production supports higher market outgrowth forecasts o
Slide 7: Delivering Multi-Year Growth
Delivering Multi-Year Growth Targeting significant market outgrowth through 2026 2026 Sales Outlook Attractive Growth Profile Strong GoM Trajectory $5B Significant market outgrowth supported by wins in recent years Visteon sales target Diversifying Product Mix Substantial growth in SmartCore™, Displ
Slide 8: Summary
Summary Delivering on Growth Increased base sales 12% Y/Y driven by growth-over-market and higher customer production Strong Commercial Performance and Continued Operational Excellence Drove adjusted EBITDA margin to 11.0%, an expansion of 170bps Y/Y Successfully Delivering Product Launches Delivere
Slide 9: Q4 and Full-Year 2023 Financial Results
Q4 and Full-Year 2023 Financial Results February 20, 2024
Slide 10: Q4 2023 Financial Review
Q4 2023 Financial Review Solid quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $990 Million $117 Million $57 Million 1% Y/Y Base Sales Growth(1) 11.8% Margin $182 Million Net Cash Continued strong customer demand for digital Higher margins driv
Slide 11: 2023 Financial Performance
2023 Financial Performance Delivering sales growth and margin expansion (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA +$402 +$86 Growth-Over-Market +170 bps Base sales growth of 12% and market outgrowth supported by ramp-up of product launches $3,954 $3,756 $434 Supply Chain Re
Slide 12: 2023 Balance Sheet and Adjusted Free Cash Flow
2023 Balance Sheet and Adjusted Free Cash Flow Net cash position and substantial cash generation allowed balanced capital allocation (Dollars in millions) FY FY Adjusted Free Cash Flow (Dollars in Millions) 2022 2023 $150 Adjusted EBITDA $348 $434 Trade Working Capital (115) (65) $101 $96 Cash Taxes
Slide 13: 2024 Full-Year Guidance
2024 Full-Year Guidance Continuing sales growth and margin expansion with outgrowth and ongoing cost performance (Dollars in millions unless otherwise noted) Key Assumptions ▪ Customer production declines ~1% $4.0B – $4.2B ▪ 10% to 12% growth-over-market driven by product launches Base Sales +8% Y/Y
Slide 14: 2026 Targets
2026 Targets Attractive growth profile with substantial margin improvement (Dollars in millions, 2024 figures at midpoint of guidance) Sales(1) Adjusted EBITDA Adjusted Free Cash Flow Recoveries CAGR CAGR CAGR(2) +8% +16% +24% ~$5,000 ~$675 $3,954 ~$4,100 ~$485 ~$170 $2,945 $434 $150 $2,773 $234 $22
Slide 15: Investment Thesis
Investment Thesis Visteon continues to be a compelling long-term investment opportunity Digital Cockpit Innovative Product Competitive Cost Strong Electronics Leader Portfolio Structure Balance Sheet Digital cockpit leader for cars, Leading analog-to-digital Leveraging industry-leading Stron
Slide 16: Appendix
Visteon’ Appendix February 20, 2024
Slide 17: Forward-Looking Statements
Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The words "will," "may," "designed to," "outlook," "believes," "should," "anticipates," "plans," "expects," "intends," "estimates," "forecast
Slide 18: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information • 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 similarl
Slide 19: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information Adjusted Gross Margin The Company defines Adjusted Gross Margin as gross margin, adjusted to eliminate the impacts of stock-based compensation expense, intangibles amortization and other non-operating costs. 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4
Slide 20: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted Net Income and Adjusted EPS • The Company defines Adjusted Net Income as net income / (loss) attributable to Visteon adjusted to eliminate the impact of restructuring and impairment expense, and related tax effects and other gains an
Slide 21: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted EBITDA The Company defines Adjusted EBITDA as net income / (loss) attributable to the Company adjusted to eliminate the impact of depreciation and amortization, restructuring and impairment expense, net interest expense, equity in ne
Slide 22: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Free Cash Flow and Adjusted Free Cash Flow • The Company defines Free Cash Flow as cash flow from (for) operating activities less capital expenditures. • The Company defines Adjusted Free Cash Flow as cash flow from (for) operating activities
Slide 23: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted EBITDA Build-up (Dollars in millions) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,014 $990 $3,954 Gross margin $76 $74 $104 $114 $368 $110 $104 $143 $130 $487 Intangibles am
Slide 24: Net Engineering
Net Engineering 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Engineering costs, gross ($81) ($81) ($83) ($96) ($341) ($83) ($91) ($79) ($77) ($330) Recoveries 33 40 25 47 145 27 29 25 39 120 Engineering costs, net ($48) ($41) ($58) ($49) ($196) ($56) ($62) ($54) ($38)
Slide 25: Financial Results – U.S. GAAP
Financial Results – U.S. GAAP 2022 2023 (Dollars in millions, except per share data) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Income Statement Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,014 $990 $3,954 Gross margin 76 74 104 114 368 110 104 143 130 487 SG&A 44 43 47 54 188 52 52 52 51 207
Slide 26: Visteon
Visteon