Visteon Corporation · NASDAQ:VC
Visteon — Deutsche Bank Global Auto Industry Conference 2015
35 slides from Visteon's conference presentation, Jan 13, 2015
Slide 1: Visteon Corporation – Deutsche Bank Global Auto Industry Conference
EXHIBIT 99.1 Visteon Corporation Deutsche Bank Global Auto Industry Conference January 2015 Strictly Private and Confidential
Slide 2: Forward-Looking Information
Forward-Looking Information 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 uncertai
Slide 3: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Because not all companies use identical calculations, Adjusted EBITDA, 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-looki
Slide 4: Additional Information and Where to Find It
Additional Information and Where to Find It This communication may be deemed to be solicitation material in respect of the proposed transaction. In connection with the proposed transaction, Visteon intends to file relevant materials with the SEC, including a preliminary proxy statement on Schedule 1
Slide 5: Today We Will …
Today We Will … Provide 2014 Performance Update Discuss the Halla Visteon Climate Control Divestiture Present the New Visteon Update 2015 Full-Year Guidance and Objectives Introduce Long-Term Outlook Supporting Investment Premise Page 5
Slide 6: 2014 Update
2014 Update Adjusted EBITDA (ex. Disc. Ops.) (Dollars in Millions) Visteon reaffirmed full-year 2014 Adjusted EBITDA guidance of $675 to $705 million during $675-705 our Q3 2014 earnings presentation Implied Q4 2014 midpoint Adjusted EBITDA of $212 million was a significant increase versus Q3 Adjust
Slide 7: Sale of Halla Visteon Climate Control
Sale of Halla Visteon Climate Control January 2015 Strictly Private and Confidential
Slide 8: Transaction Overview
Transaction Overview Visteon to sell its 70% stake in Halla Visteon Climate Control Corp. (HVCC) to an affiliate of Hahn & Co. and Hankook Tire Co. Ltd. Transaction – Hahn & Co.’s affiliate to purchase 50.5% – Hankook Tire Co. Ltd. will purchase the remaining 19.5% Price: 52,000 KRW Purchase Transac
Slide 9: Transaction Rationale
Transaction Rationale Results in a pure-play, world-class auto electronics / connected car company – One of the world’s top three auto electronics suppliers of connectivity, infotainment, driver information and controls – Well-capitalized with expected cash proceeds of $3.0+ billion from sale of HVC
Slide 10: Purchase Summary
Purchase Summary Transaction Value (1) (U.S. Dollars in Millions, unless otherwise noted) HVCC Purchase Price per Share (KRW) 52,000 Estimated USD Purchase Price per Share (2) $47.58 70% of HVCC Shares Outstanding (Millions) (3) 74.7 Equity Value for 70% Stake $3,555 Plus: 70% of Halla Net Debt (9/3
Slide 11: After-tax Proceeds to Visteon
After-tax Proceeds to Visteon Net Proceeds to Visteon (U.S. Dollars in Millions) Low High Est. Tax Liability Gross Proceeds $3,555 $3,555 • Tax liability could be further reduced by an additional $100+ million related to tax savings Estimated Tax Liability from unrelated actions which Gross Taxes Re
Slide 12: Potential Uses of Cash in 2015
Potential Uses of Cash in 2015 (Dollars in Millions) Estimated Cash Balance Potential Uses of Cash in 2015 Estimated cash balance of $3.525 billion Based on current market conditions and includes net HVCC proceeds as well as: assuming the transaction closes as contemplated, Visteon plans to return $
Slide 13: The New Visteon
The New Visteon January 2015 Strictly Private and Confidential
Slide 14: The #3 Global Electronics Player
The #3 Global Electronics Player Positioned for Growth #3 provider of cockpit electronics globally Conti #2 driver information supplier in the world 17% Others Balanced Asia, America and Europe 30% footprint Denso 10% Broad customer profile that includes everything from entry-level vehicles to high-
Slide 15: Balanced Global Manufacturing and R&D Footprint
Balanced Global Manufacturing and R&D Footprint Corporate Headquarters Grace Lake Corporate Center, Van Buren Township, Michigan, USA Americas Europe China Asia Pacific Japan Holland, MI, US Cergy, FR Shanghai * Chennai, IN Van Buren Township, US Chelmsford, GB * = JV Global Technical Centers Karlsr
Slide 16: Diversified Sales Footprint
Diversified Sales Footprint Visteon Electronics 2014E Sales Breakdown (Adjusted to Include Full Year of ex-JCI Electronics) By Product By Region By Customer Controls SA Vehicle 6% 3% Electronics Other 10% 27% NA EU Ford 29% 36% 34% Honda 5% Audio & GM / Infotainment SGM 27% Instrument 5% Clusters &
Slide 17: Leader in Cockpit Electronics
Leader in Cockpit Electronics Connectivity & Telematics Audio Head Up Displays Cockpit Driver Domain Information Controllers Modules Body & Security Infotainment Controls Center Information Displays Page 17
Slide 18: Innovative Products and Platforms
Innovative Products and Platforms OpenAir TM Infotainment LightScape TM Connected Infotainment Head Units Driver Information Modules Rear-Seat Head-up Body Control Entertainment Displays Displays Modules SmartCore TM Driver Information Connectivity Cockpit Domain Controllers Modules Gateways Visteon
Slide 19: Pipeline of Game-Changing Technologies
Pipeline of Game-Changing Technologies Cockpit Convergence Cognitive Freeform Operations Display Artificial Controller Intelligence Super Data Integration Analytics Plug & Play Enterprise Hardware Dual Layer Security Display Adaptive 3D GPU Learning Open Performance Source Connected World Intelligen
Slide 20: 2015: Building a Strong Foundation for Future Growth
2015: Building a Strong Foundation for Future Growth The New Visteon is a world-class Electronics organization today – More than $3 billion in annual sales – #3 provider of cockpit electronics in the world, with 10% global market share In 2015, we will invest $110 million to position Visteon for the
Slide 21: Ex-JCI Acquisition Helped Accelerate 2014 Bookings
Ex-JCI Acquisition Helped Accelerate 2014 Bookings Visteon Electronics won record $1.3 billion in new and rewin business during 2014 The ex-JCI business has contributed meaningfully to our wins during 2014 – The ex-JCI business was winning limited business pre-integration with Visteon and had a nega
Slide 22: The Future: A World-Class, Innovation Leader
The Future: A World-Class, Innovation Leader The New Visteon Advantage World’s #3 provider of cockpit electronics Broad customer profile Offerings across all major cockpit electronics products Balanced global manufacturing and R&D footprint Market-leading size and scale of R&D resources Visteon is a
Slide 23: 2015 Guidance
2015 Guidance (Excludes Full Year of Climate Product Group) January 2015 Strictly Private and Confidential
Slide 24: 2015 Full-Year Volume Outlook
2015 Full-Year Volume Outlook Visteon Electronics Global Vehicle Production 2015 (Units in Millions) Adj. 2014E Sales (1) 2014E 2015E B/(W) 2014 Europe 36% 20.0 20.4 2.0% Asia 32 44.5 46.7 4.8 North America 29 17.0 17.4 2.4 South America 3 3.8 3.9 0.4 Other - 1.9 2.0 7.9 Total 100% 87.2 90.3 3.6% IH
Slide 25: Exchange Rate Assumptions
Exchange Rate Assumptions 2015E Current Spot vs. Impact on Budget Spot (1) Budget EBITDA $ / Euro $1.28 $1.19 6.9% $ / Euro (Hedged Rate) $1.29 $1.23 4.7% Japanese Yen / $ 106.0 119.8 13.0% Mexican Peso / $ 12.85 14.97 16.5% 2015 FY Impact of Movements in FX Rates FY EBITDA Impact FY 2015E Unit Chan
Slide 26: Strong Backlog
Strong Backlog (Dollars in Millions) 2015-2018 Backlog (ex. Climate Product Group) Visteon defines backlog as new $115 $500 incremental business net of lost business which will launch over the next four years $55 – Visteon has updated its definition of $245 backlog to reflect the next four years, wh
Slide 27: The New Visteon (Post Sale of HVCC)
The New Visteon (Post Sale of HVCC) The New Visteon (Post Sale of HVCC) Visteon Electronics Other Product Group Corporate Costs 2015E financials: 2015E financials: 2015E financials: – Sales: $3.2B – Sales: $100M – Sales: $0 – EBITDA: $280-$300M – EBITDA: $0 – EBITDA: ($45)-($55M) Comprises: Represen
Slide 28: Corporate Cost Savings
Corporate Cost Savings (Dollars in Millions) Visteon Corporate SG&A Costs $7 ($6) Visteon corporate SG&A comprises $4 ($14) $59 $60 costs that are held centrally at Visteon and not billed to the product groups $50 – Largely related to IT, finance, HR, and legal costs as well as incentive compensatio
Slide 29: 2015 Guidance (ex. Climate Product Group)
2015 Guidance (ex. Climate Product Group) (1) 2015 Guidance (Mid-point) Sales $3.3 B Adjusted EBITDA (ex. Eq Inc / NCI) $240 M Adjusted Free Cash Flow $20 M (ex. Investments Primarily Related to Restructuring and IT) 2015 Guidance Other Selected Items: (Mid-point) Depreciation and Amortization $85 M
Slide 30: 2018 Targets (ex. Climate Product Group)
2018 Targets (ex. Climate Product Group) (1) 2015E 2018E Guidance Target 2018 (Mid-point) (Mid-point) vs. 2015 Sales $3.3B $3.7B 16%(2) Memo: Electronics $3.2B $3.7B Adjusted $240M $335M 40% EBITDA Memo: Electronics $290M $375M Memo: Adjusted $20M $105M Free Cash Flow (1) Excludes HVCC Climate as we
Slide 31: 2018 vs. 2015 Adjusted EBITDA Drivers
2018 vs. 2015 Adjusted EBITDA Drivers (ex. Climate) (1) 2018 Adjusted EBITDA Target (Dollars in Millions) $335 $240 Volume / Electronics Corporate Cost New Business Wins Synergies and Other Savings Cost Savings 2015 Adjusted 2018 Adjusted EBITDA EBITDA (ex. Climate) (ex. Climate) Memo: $290M $375M E
Slide 32: Near-Term Objectives
Near-Term Objectives Grow Electronics Business Achieve strong sales growth through launch of $500 million backlog Bolster #3 global electronics market position via continued new business wins Continue to develop world-class electronics (connected car) technology portfolio Deliver Electronics-Related
Slide 33: Appendix
Appendix January 2015 Strictly Private and Confidential
Slide 34: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information Adjusted EBITDA 2013 2014 2014 FY Guidance Implied Q4 2014 2015 FY Guidance 2018 FY Guidance (Dollars in Millions) 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr Low-end High-end Low-end High-end Low-end High-end Mid-point Adjusted
Slide 35: www.visteon.com
www.visteon.com Page 35
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