Visteon Corporation · NASDAQ:VC
Visteon — Investor Day (July 2011)
122 slides from Visteon's investor day presentation, Jul 27, 2011
Slide 1: Visteon Corporation Investor Day
Visteon Corporation Investor Day July 27, 2011
Slide 2: Welcome / Introductions
Investor Day Welcome / Introductions Bill Quigley y Executive Vice President and CFO Page 3
Slide 3: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 4: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 5: Visteon Overview
Investor Day Visteon Overview Don Stebbins y Chairman, CEO and President Page 6
Slide 6: Visteon Overview
Visteon Overview y Leading global automotive supplier of climate, interiors, electronics and lighting products y Global manufacturing and engineering footprint with emphasis on low-cost regions y Strategically positioned to capitalize on emerging markets growth y Streamlined organization with strong
Slide 7: Sales by Geography
2010 Product Sales Consolidated Sales Market Penetration Sales by Segment Electronics Electronics 28% 25% Interiors Climate 42% 44% Climate Interiors 33% 28% $7.3 Billion $10.8 Billion Sales by Geography S. America 7% S. America 5% N. America N. America 13% 17% Asia 40% Asia 56% Europe Europe 26% 36
Slide 8: Repositioning Visteon
Repositioning Visteon (Dollars in Millions) 2005 (Dollars in Millions) 2010 Product Sales $16,586 Product Sales $7,323 Net Income / (Loss) (270) Net Income / (Loss) 1,026 Adjusted EBITDA 207 Adjusted EBITDA 614 Adj. EBITDA Margin 1.2% Adj. EBITDA Margin 8.4% Debt / Adj. EBITDA 9.6x Debt / Adj. EBITD
Slide 9: Regional Contribution
Regional Contribution 2010 Global Production Volumes Visteon Sales Contribution by Region (1) (Units in Millions) 2010 Full Year Q1 2011 2010 Actual Units % Total $7.3B $10.8B $2.0B $2.9B Asia Pacific 34.8 49% Europe 20.9 29 40% 40% 56% 57% N. America 11.9 17 S. America 4.1 6 Total 71.7 100% 36% 39%
Slide 10: Organic Growth
Organic Growth (Dollars in Millions) Backlog (as of 12/31/2010) New Business Wins $700 Q1 2011 Results $304 $237 $360 $172 $280 $150 $60 $47 2011 2012 2013 2011-2013 Q1 2010 Q2 2010 Q3 2010 Q4 2010 Q1 2011 Cum. Region Customer Region Customer NA / EU Other Other / SA 17% NA / EU 19% HMG HMG 21% / SA
Slide 11: Adjusted EBITDA Margin Growth Objective
Adjusted EBITDA Margin Growth Objective 2010 vs. 2014E Objective 10%+ Net Cost 8.4% Performance Structural Cost Volume / Mix Leverage Input Costs 2010 2014 Actual Objective Focused on Driving Double Digit Adjusted EBITDA Margins By 2014 Page 12 Please see important disclosures regarding “Forward Loo
Slide 12: Product Portfolio Aligned with Market Trends
Product Portfolio Aligned with Market Trends Climate Change and Regulatory Environment Macro Changes Customers’ Consumer Experience / Cost Competitiveness Product Differentiation Resulting Manufacturing Fuel Efficiency and Product Consumer Automotive and Reduced Development Experience Trends Emissio
Slide 13: Visteon Solution
Technology Developments by Product Group Climate Electronics Interiors Lighting Enable adoption of HEV Vehicle manufacturers Address the demand for Improved visibility and and EV powertrains by responding to consumer personalization via a suite safety through a unique providing passenger trends for
Slide 14: Moving Forward
Moving Forward y Invest in those product segments where we believe we can achieve market leadership and competitive differentiation to drive above market returns – For product segments and assets that do not meet these criteria, we will seek to maximize value on a thoughtful and disciplined basis y
Slide 15: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 16: Climate Operations
Investor Day Climate Operations Joy Greenway y Product Group President Page 18
Slide 17: Climate Product Group
Climate Product Group Highlights / Advantages Products and Market Positions • #2 market position overall in attractive $32 billion HVAC industry segment with few dominant players Compressor (#4) (#3) • One of two global suppliers with full product portfolio for climate systems • Balanced global prod
Slide 18: Global Climate Market
Global Climate Market (1) Market Share – Global Climate Market Key Market Trends y Regulatory changes, fuel economy and environmental concerns continue to Other Denso drive product development priorities 26.3% 22.7% y Technology shift toward HEV/EVs will provide long-term growth opportunities Modine
Slide 19: Key Product Offerings
Key Product Offerings 2010 Sales VC Market Description ($ in Mil)(1) Position Key Competitors y Electric y Variable swashplate Compressor $400 #3 y Rotary suction swashplate y Fixed scroll y Compact y Center mount HVAC $1,200 #4 y Straight airflow path and flat y Battery chiller and cooler y Radiato
Slide 20: Climate Technical Centers
Climate Technical Centers Van Buren Twp, MI Kerpen Daejeon UNITED STATES GERMANY SOUTH KOREA Hiroshima JAPAN Juarez Nový Jičin MEXICO CZECH REPUBLIC Headcount Profile High Cost 32% Low Major Innovation Center Cost 68% Engineering (Applications, Simultaneous) Global Engineering Coverage for Fast Cust
Slide 21: Climate Manufacturing Locations
Climate Manufacturing Locations Nový Jičin, Hluk, Rychvald Ilava CZECH REP SLOVAKIA Dalian CHINA Daejeon, Charleville Belleville Changchun Pyeongtaek, FRANCE Beijing CANADA Ulsan Jinan KOREA Palmela Chengdu Shorter, AL PORTUGAL Chongqing Juarez (4 Plants) Hiroshima, UNITED Szekesfehervar Bhiwadi MEX
Slide 22: Visteon / HCC Relationship
Visteon / HCC Relationship Traditional Climate President Visteon Customers Traditional HCC Visteon / HCC Operations Customers 70% Ownership since 1986 Global Growth 30% publicly held through the Customers Korea Stock Exchange Functional Efficiencies Purchasing Engineering Manufacturing One Climate L
Slide 23: Climate Asia Pacific Market Leadership
Climate Asia Pacific Market Leadership y Asia Pacific market leader – clearly positioned as #2 2010 Asia Pacific y 17 manufacturing sites Market Share Denso y Fully-integrated global operations Other 26% 34% y Established partnerships – Mazda/Panasonic Japan Climate System (Nanjing) – FAWER Visteon
Slide 24: Climate Emerging Market Strength
Climate Emerging Market Strength BRAZIL Long standing presence in Brazil and Argentina with potential to expand Growing manufacturing presence in Russia to support Ford, Hyundai, RUSSIA and other OEMs, resulting in strong growth and a leading market position Strong # 2 position with full range of cl
Slide 25: Key Climate Platforms
Key Climate Platforms y Hyundai Sonata $250 million N. America, Asia Pacific y Hyundai Elantra/Avante $250 million Asia Pacific, N. America y Ford Focus $240 million Europe, Asia Pacific, S. America, N. America y Ford Fiesta $190 million Europe, S. America, Asia Pacific, North America y Hyundai i30
Slide 26: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capital Expenditures ($M) Capacity Utilization by Region (%) 2010 2010 Full Year 90% Total Spend % of Total 73% 75% Program $95 79% 67% Cost, Quality, Other 20 17% Maintenance 5 4% Total $120 100% N. America Europe Asia Pacific S. America Capacity Utiliza
Slide 27: Technology Drivers
Technology Drivers Green y Electric and hybrid vehicle systems and components y Alternate refrigerant systems, low global warming potential y Renewable and recyclable materials, emission reduction Efficiency y Fuel efficiency y Components, systems y Control strategies Smaller and y Compact design Li
Slide 28: Electrification Contribution to Climate Market
Electrification Contribution to Climate Market Contribution of Added Content to Climate Market Market ($B) 3 Electric Compressor Heat Exchangers, Fluid Transport 2.5 2 1.7 1.6 1.1 1 0.5 0.9 0.3 0.6 0 0.2 2010 2015 2020 Electrification Could Contribute $2.5B to the Climate Market by 2020 Page 30 Sour
Slide 29: Climate Production-Ready Technologies
Climate Production-Ready Technologies Production Ready Macro Trend Addressed Green Consumer e-Compressor* 2010 (HEV/EV) Experience Battery Chiller Green Consumer and Contact Heat 2011 (HEV/EV) Efficiency Experience Exchanger Cold Storage Green Consumer 2011 (Stop-Start) Experience Evaporator Metal S
Slide 30: Climate Technology Pipeline
Climate Technology Pipeline Exhaust Heat V-Flow Thermo Electric Distributed Recovery System Heating and Cooling* Production Ready 2013 2014 2015 2016 2017 2018 2019 2020 Intelligent Cabin A/C and Heat Pump High Efficiency A/C High Voltage, Stacked Air Quality for HEV and EV* System for EV* Cooling M
Slide 31: Innovation
Innovation Highlights/Advantages Advanced Technology Commercialization • Globally aligned, market focused advanced >5 Years technology development • Strong vehicle and system level understanding enabling component excellence 3-5 Years <3 Years • Proven CAD tools and development process • Industry re
Slide 32: Global Climate Market Share Objective
Global Climate Market Share Objective 2010 Market Share(1) 2014 Target Market Share Other Denso All Other 26.3% 22.7% 86% Modine 2.2% Sanden Visteon 3.9% 12.4% Visteon Calsonic 14% 4.9% Delphi Valeo 6.8% Behr 11.7% Traditional Global Growth New Customers Customers Technology 9.1% Hyundai Renault – N
Slide 33: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective 12%+ New Technology 10.2% HEV/EV enablers Halla Synergies CO2 emissions Standardization Comfort Economies of scale Profitable Growth Capacity utilization Volume Growth Low Cost Footprint Commodity Cost Price Pressure 2010 2014 Actual Objective Focused
Slide 34: Climate Summary
Climate Summary Key Strengths y Strong market position – #2 globally y Attractive industry dynamics – few large players y Low cost, global footprint y Strong relationship with strategic customers y Technology for electrified vehicles and new regulations Page 36
Slide 35: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 36: Lighting Operations
Investor Day Lighting Operations Jeff Stevenson y General Manager, Global Lighting Page 39
Slide 37: Lighting Product Line
Lighting Product Line Highlights Products • #6 market position overall in rapidly growing $9.5 billion industry segment • Full product portfolio for exterior lighting systems, including projector and electronics manufacturing Head Lamps Center High Mount Rear Lamps • Balanced global product mix with
Slide 38: Global Lighting Market
Global Lighting Market Market Share – Global Lighting Market Key Market Trends Products / Technologies Koito y Exterior vehicle styling enhancements Other 14% 16% y Continuously evolving legislation and safety requirements ACH 3% y Significant growth of LED content Magna 3% Valeo Ichiko 4% 15% Custo
Slide 39: Lighting Technical Centers
Lighting Technical Centers 7 Global Technical Centers Van Buren Twp, MI Kerpen Nový Jičin Changzhou UNITED STATES GERMANY CZECH REPUBLIC CHINA Headcount Profile High Cost 11% Monterrey Pune Chennai Low MEXICO INDIA INDIA Cost 89% Page 42
Slide 40: Lighting Manufacturing Locations
Lighting Manufacturing Locations 7 Manufacturing Sites Including 2 Non-consolidated Nový Jičin CZECH REPUBLIC Rychvald Changzhou (2 sites) CZECH REPUBLIC CHINA (2 sites) Chongqing CHINA Future Site in 2012 Headcount Profile Monterrey High MEXICO Pune Low Cost INDIA 0% Cost 100% Page 43
Slide 41: Lighting Product Line Offerings
Lighting Product Line Offerings 2010 Sales(1) (2) Key Description ($ in Mil) Competitors Front Lighting y Products include high-tech LED, High- Systems Intensity Discharge (HID) and halogen based head lamps ranging from static positioning to full adaptive forward lighting which can $222 include high
Slide 42: Key Lighting Platforms
Key Lighting Platforms y Ford Focus $59 million Europe / S. America / Asia Pacific y Ford Mondeo $32 million Europe / Asia Pacific y Cadillac CTS $31 million N. America y Chevrolet Malibu $27 million N. America y Chevrolet Camaro $20 million N. America y Land Rover Freelander $16 million Europe y Op
Slide 43: Lighting Value Proposition
Lighting Value Proposition Low Cost Advanced Global Footprint + Technologies = Affordable Technology 100% Low cost manufacturing Delivering the latest 89% Low Cost Engineering technologies, at affordable prices, serving medium to large scale programs Key Growth Opportunities • OEMs need support in m
Slide 44: 2014 Target Market Share
2014 Target Market Share 2010 Market Share 2014 Target Market Share Global Lighting Market Global Lighting Market Other Koito 14% 16% All Others ACH 3% 93% Magna 3% Ichiko 4% Valeo 15% Samlip 4% Visteon 6% Visteon Stanley Magneti 7% 10% Marelli Hella 14% Elements of Growth: 11% y Growing 3X faster t
Slide 45: Near-Term Technology Pipeline
Near-Term Technology Pipeline Production Ready Macro Trend Addressed Innovative Light Styling & 2011 Safety Functionality Guide Rear Lamp LED Daytime Safety Styling & Running Lamp 2012 Functionality Signature Adaptive Front Safety Styling & Lighting System 2010 Functionality (AFS) Fuel Styling & LED
Slide 46: Emerging Technologies
Emerging Technologies AFS Affordable Full LED Headlamp with Automatic Controlled LED with LED Contributors LED Head Lamp Glare Free High Beam Head Lamp Start of Production 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 LED HL (High Beam) Matrix LED Thin Profile OLED Rear Lamps Glare Free Hig
Slide 47: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capital Expenditures ($M) Capacity Utilization by Region (%) 2011 2010 Full Year 88% 85% Total Spend % of Total 75% Maintenance $3.5 14% New Program / Capacity 20.7 86% Total $24.2 100% N. America Europe Asia Pacific High Utilization Rates, Resulting in L
Slide 48: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective 6.5% New 2.6% Technology Vertical and Added Integration Content New Business Wins Commodity Cost Pressure 2010 2014 Actual Objective Focused on Driving 6%+ Gross Margins by 2014 Page 51
Slide 49: Lighting Summary
Lighting Summary Key Strengths y Major product technology trends, strong revenue growth y Attractive global footprint y Full Product Line portfolio y Low cost product development y 100% of all manufacturing in low-cost regions Page 52
Slide 50: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 51: Electronics Operations
Investor Day Electronics Operations Steve Meszaros y Product Group President Page 55
Slide 52: Electronics Product Group
Electronics Product Group Highlights / Advantages Products and Market Positions y Complete coverage of mature and emerging Instrument Audio & markets with efficient, scaled operations Clusters & Infotainment Displays (b) (a) #5 y Integrated global capability leveraging low #3 cost development center
Slide 53: Global Electronics Market
Global Electronics Market Market Share – Cockpit Electronics Market Key Market Trends Continental y Stronger links to consumer electronics 17% Other – Consumer electronics driving new 34% features, alternate media and commoditization Denso – Consumers demanding better user 10% interfaces and connect
Slide 54: Primary Product Offerings
Primary Product Offerings 2010 Total VC Market Description Sales Key Competitors Position ($ in Mil) y Solutions for in-car audio, Audio and entertainment and $580 #5 Infotainment information including navigation (a) y Electronic instruments and Instrument displays providing vehicle, Clusters and $5
Slide 55: Electronics Technical Centers
Electronics Technical Centers 4 Global Technical Centers 10 Regional Customer Centers Van Buren Twp, MI Chelmsford Chennai Shanghai UNITED STATES ENGLAND INDIA CHINA Seoul S KOREA Paris Palmela S. Antipolis Kerpen PORTUGAL FRANCE GERMANY Headcount Profile High Cost 36% Chihuahua Sao Paulo MEXICO BRA
Slide 56: Electronics Manufacturing Locations
Electronics Manufacturing Locations 18 Manufacturing Sites (including 7 unconsolidated) Palmela Székesfehérvár Shanghai Headcount Profile PORTUGAL HUNGARY CHINA High Chongqing (2) Changchun Cost CHINA CHINA 15% Low Cost 85% Seoul S. KOREA Vladimir RUSSIA Hiroshima Rayong JAPAN THAILAND Cadiz Chennai
Slide 57: Electronics Emerging Market Strength
Electronics Emerging Market Strength BRAZIL Long-term market presence. Expanding Manaus plant manufacturing capability, product portfolio and customer base, including entry in 2-wheeler market. RUSSIA Launched Visteon Avtopribor JV in Vladimir in 2010 to meet anticipated market growth opportunity ac
Slide 58: Yanfeng Visteon Electronics (YFVE)
Yanfeng Visteon Electronics (YFVE) China market leader y #1 in audio, #3 in clusters Fully integrated with Visteon’s global operations Changchun TOPPOWER y 70% Visteon ownership (40% direct, 30% indirect) y Integrated commercial engagement with global customers Xuzhou y Shared advanced engineering T
Slide 59: Key Platforms
Key Platforms y Ford Focus, C-Max $274 million Europe, Asia Pacific, N. America y Ford Fiesta $118 million Europe, Asia Pacific, N. America, S. America y Ford Mondeo, S-Max $ 88 million Europe y Nissan Cross Car Connectivity $ 79 million N. America, Asia Pacific y Ford Transit $ 52 million Europe y
Slide 60: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capital Expenditures ($M) Capacity Utilization by Region (%) Consolidated 2011 2010 Full Year 99% Total Spend % of Total 76% 74% New Program $9 38% 62% Cost Saving/Other $7 32% Modernization $7 30% Total $23 100% N.America Europe Asia Pacific S.America 20
Slide 61: Electronics Portfolio Evolution
Electronics Portfolio Evolution All Electronic Products to One Customer Customer Diversification “All Products to All Customers” -- Not Feasible Long-Term -- Product and Market Alignment Focused on Audio/Infotainment & Driver Information Product Segments Page 65
Slide 62: Electronics Value Proposition
Electronics Value Proposition Cockpit Cockpit Electronics Electronics Core Technical Portfolio Portfolio Competencies Global Excellence Systems engineering expertise Key strengths in global Cost-effective platform and in-vehicle integration of programs delivery, emerging solutions for audio, the con
Slide 63: 2014 Target Market Share
2014 Target Market Share 2010 Market Share (1) 2014 Target Market Share Global Cockpit Electronics Market Global Cockpit Electronics Market Continental All Others Other 17% 86% 34% Denso 10% Harman 8% Pioneer 4% Alpine Bosch 4% 7% Delphi 5% Visteon* Visteon* Panasonic 5% 6% 7% Market $20 Billion Mar
Slide 64: Electronics Technology Pipeline
Electronics Technology Pipeline Production Ready Macro Trend Addressed Next Generation Audio Platforms y Increased connectivity and alternative media 2011-2012 offerings Low / Mid Infotainment y Cost-effective infotainment solutions for Platform 2012-2014 emerging markets and entry-level mature mark
Slide 65: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective 10%+ Restructuring 8% Net Cost Performance Cockpit Electronics Vehicle Growth Electronics Exit 2010 2014 Actual Objective Focused on Exceeding 10% Gross Margin by 2014 Page 69
Slide 66: Electronics Summary
Electronics Summary Key Strengths y Complete coverage of mature and emerging markets with efficient, scaled operations y Integrated global development capability leveraging low-cost development centers y Cost-effective platform-driven approach to product portfolio Page 70
Slide 67: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 68: Interiors Operations
Investor Day Interiors Operations Pierre Boulet y General Manager, Interiors Europe and South America Page 73
Slide 69: Interiors Product Group
Interiors Product Group Highlights / Advantages Products and Market Positions • #2 global market position in a ~$43 billion Instrument Door industry segment Panels Panels • Balanced global customer mix with strengths (#2) (#3) in key markets (#1 in Asia, #2 in Europe, #3 in South America) Cockpit •
Slide 70: Global Interiors Market
Global Interiors Market Market Share – Interiors Market Key Market Trends Faurecia y Proliferation of global vehicle programs (incl. SAS) – High volume, global vehicle platforms with Other 21% accelerated deployment in BRIC markets 30% Faurecia y Emerging market growth – China market growth driven b
Slide 71: Product Offerings
Product Offerings 2010 Sales VC Market Description ($ in Mil) Position Key Competitors Instrument y Hard and soft instrument Panels and panels Consoles y Plastic mechanisms y Sliding and fixed $1.8B #2 consoles Door Panels y Hard and soft door and Interior panels and trims Trim y Decorative inserts
Slide 72: Interiors Engineering Centers
Interiors Engineering Centers 2 Global Technical Centers 12 Regional Customer Centers Shanghai (3)/ Berlin Wuhan GERMANY CHINA Harrison Twp, MI. (YFV/DFV) Seoul/Ulsan USA (YFV) KOREA (DY/VIK) Yokohama JAPAN Headcount Profile Chennai/ Rayong High Pune THAILAND Cost 25% INDIA Harnes São Paulo FRANCE L
Slide 73: Interiors Manufacturing Locations
Interiors Manufacturing Locations 42 Manufacturing Sites 13 JIT Assembly Sites BELGIUM GERMANY UK (2) RUSSIA CHINA (21) (R-Tek) (YFV/DFV) US (2) POLAND (YFV) FRANCE (4) SLOVAKIA SPAIN (4) S. KOREA (5) CROATIA MOROCCO (partner) MEXICO (under construction) TURKEY (partner) Headcount Profile PHILIPPINE
Slide 74: Interiors Emerging Market Strength
Interiors Emerging Market Strength BRAZIL #3 market player with improving operational performance and expanding customer base including Ford, VW, GM, PSA, Honda RUSSIA Launched first operation (wholly-owned) in Kaluga to support VW and Renault. Additional growth opportunities with PSA, GM and Nissan
Slide 75: Yanfeng Visteon Interiors (YFV)
Yanfeng Visteon Interiors (YFV) China market leader y #1 in instrument panels, door panels and consoles A key element of Visteon’s ability to serve global customers y 50/50 Visteon/HASCO (SAIC) ownership y Shared advanced engineering and platform development for global customers y Aligned engagement
Slide 76: Key Interiors Platforms (2010)
Key Interiors Platforms (2010) Including Cockpit Revenues* Not Including Cockpit Revenues* y VW Lavida $304 M Asia Pacific y Ford Focus/C-Max/Kuga $153 M Europe, Asia Pacific y Hyundai Avante $232 M Asia Pacific y Peugeot 3008 $98 M Europe y VW Polo $204 M Asia Pacific, Europe y Buick Lacrosse $76 M
Slide 77: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capital Expenditures ($M) Capacity Utilization by Region (%) (Consolidated) 2011 90% 90% 2010 Full Year 74% Total Spend % of Total Modernization $3 10% New Programs/ Capacity $29 90% Total $32 100% Europe Asia Pacific S. America Investment Focused on Grow
Slide 78: Interiors Strategy
Interiors Strategy y Leverage Visteon – Yanfeng Visteon synergies to support global OEM programs, innovation projects and purchasing savings y Improve manufacturing and engineering footprints via restructuring in HCC and continued investments in LCC to maintain leadership in BRIC markets y Increase
Slide 79: Interiors Technologies
Interiors Technologies “Green” Technologies Lower Weight Recyclable Alternative Hybrid TM Natural resins Fibers & Injection VIEPP TM TM Bondtek VLRTM Cost Reduction Process Improvement Injected skins Thin wall injection Leather foam-in-place Co-molded “A” Airbag scoring surface Styling Craftsmanship
Slide 80: 2014 Target Market Share
2014 Target Market Share 2011 Market Share 2014 Target Market Share Global Interiors Market Global Interiors Market Faurecia Other (incl. SAS) 30% 21% All Other a e ci 87% ur Fa S SA Visteon Visteon YFV (incl. /DFV Vist Kasai YFV/DFV) YF e on 2% 12% V /D FV Hanil Visteon 2% Magna Mobis (incl. 5% Cal
Slide 81: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective 8%+ Restructuring 6% Net Cost Performance New Programs Input Costs 2010 2014 Actual Objective Focused on Improving Interiors Gross Margin to Better Than 8% by 2014 Page 86
Slide 82: Summary
Summary Key Strengths y #2 market position in a ~$43 billion industry segment y Balanced global customer mix with strengths in key markets (#1 in Asia, #2 in Europe, #3 in South America) y A leading player in all BRIC markets well positioned to support industry growth Page 87
Slide 83: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 84: Visteon Corporation Investor Day
Visteon Corporation Investor Day July 27, 2011
Slide 85: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 86: Yanfeng Visteon
Investor Day Yanfeng Visteon Bob Pyle y General Manager YFV Page 91
Slide 87: SAIC Organization and Structure -- Present
SAIC Organization and Structure -- Present State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government 100% 服务贸易 Service & Trade 上海汽车 华域汽车 东华公司 SAIC Motor HASCO DongHua • Sales （78.94%） （60.1%） Co.(75%) • Logistics • IT • Car Rental • Functional parts • Financing •
Slide 88: SAIC Organization and Structure -- Proposed
SAIC Organization and Structure -- Proposed State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government 100% 上海汽车 SAIC Motor 服务贸易 Service & Trade • SAIC Motor “pulled up” for direct 华域汽车 东华公司 ownership replacing HASCO DongHua • Sales SAIC Group （60.1%） Co.(75%) • Lo
Slide 89: SAIC Vehicle Companies
SAIC Vehicle Companies 上海汽车 • SAIC Group a strong parent to SAIC Motor support the growth of HASCO Key light vehicle activities: − The largest vehicle producer in China 50% 51% 50.1% 100% − Significant own brand activities (e.g. Roewe) 2010 China Vehicle Market Share 2010 China Passenger Car Market
Slide 90: Yanfeng Visteon Organization
Yanfeng Visteon Organization YFV is 50:50 Joint Venture between Visteon and HASCO 50% YFJCI 50% 1997 Seating (SAIC) Technology Partnerships 60% YFV Electronics 40% 2002 with Global Suppliers 50% YF Key 50% 2004 Interior Partnerships Safety with China OEMs 50% 50% YFPO 2007 Exterior DETC Interiors JV
Slide 91: Five Business Systems
Five Business Systems Interior System Seating System Electronics System Exterior System Safety System • Cockpit • Seats • Driver • Bumpers • Steering • Instrument Panels • Trim Covers Information • Body Trim Wheels • Door Panels • Mechanisms • Entertainment • Rear • Air Bags • Console • Foam Pads •
Slide 92: Market and Sales Summary
Market and Sales Summary Independent Enterprises 6 Major Groups SAIC FAW Dongfeng BAIC Chang’an GAIC Chery BYD Geely Great Wall JAC Volvo SVW FAW-VW DPCA BBAC CA Ford GZ Honda Brilliance Hawtai North Benz 2010 Revenue by Customer SGM FAW-Car DF Nissan BJ Hyundai CA Mazda GZ Toyota FAW 1% Other DYK 1
Slide 93: Product Diversity
Product Diversity 2010 Revenue Tooling 1% Safety 3% Exterior 5% Electronics 8% Interiors 45% Seating 38% Total Revenue $5.3 Billion (Includes Tier 1 Unconsolidated Subsidiaries) Page 98
Slide 94: China Market Share
China Market Share #1 #2 Seats #3 Bumpers Instrument Panels Door Panels Clusters Audio Consoles Steering Wheels Market-Leading Positions in Multiple Products Page 99
Slide 95: YFV Global Presence
YFV Global Presence Symbol Business System Facilities Seating 35 Changchun Shenyang Interiors 27 Baotou Beijing Exteriors 10 Baoding Yantai Yancheng Electronics 6 Xuzhou Nantong Nanjing Yizheng Shi‘yan Hefei Shanghai Safety 1 Chongqing Wuhu Wuhan Shaoxing Chengdu Tooling 1 Taizhou Harrison Township
Slide 96: Export Business
Export Business Export Markets Customers Products Safety System Export Sales 3.2 RMB in Billions USD $473 M Electronics System 1.7 1.4 1.4 1.2 Interior System 0.9 0.8 0.8 0.9 0.4 Seating System 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Supporting Global Customers through Superior Products an
Slide 97: Design Studio
Design Studio Q-e Concept Phoenix Concept Unique Capability to Perform Styling, Design, and Engineering of Interior/Exterior/Electronic Parts for our Customers Page 102
Slide 98: Technical Center Capability
Technical Center Capability Interior System Seating System Electronics System Exterior System Safety System • Full Service Supplier • Globally Integrated • Full Design and • Structure Design • R&D / Product (from Styling to Production) Technical Centers Engineering Capability • CAE Verification Engi
Slide 99: Customer Recognition
Customer Recognition 2010 Best Performance Award 2010 Excellent Supplier Award 2010 Best Cooperation Award 2010 Technology Innovation Award 2010 Best Supplier of Dongfeng Motor 2010 Excellent Supplier Award 2010 Excellent Localization Award 2010 Excellent Launch Award (Grand Cherokee and Durango Pro
Slide 100: Historical Growth
Historical Growth RMB in Billions 31.8 USD $4.7 B 30% 19.4 Compound Annual Growth Rate 13.9 13.7 10.7 7.8 7.0 7.0 4.1 2.2 2.6 1.6 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Successful Partnerships and Products Fuel Strong Growth Page 105
Slide 101: Strategic Initiatives
Strategic Initiatives y Expand customer base with local China OEMs. Continued diversification with select Chinese (and Japanese) OEMs y Support OEM’s growth plans in China and abroad via cooperation with Visteon and other partners y Explore new business segments / product offerings with a focus on “
Slide 102: Global Cooperation Initiatives
Global Cooperation Initiatives GM India – Interiors Global GM - D2XX Program - Interiors Products IP DP • Production planned for Indian JV Console Russia, China, India, GM Halol USA and Korea (CN100/N200) • Design “home room” GM Talegaon (S2) in Germany Visteon/YFV new JV to VC Pune Plant capitalize
Slide 103: Equity in Net Income of Non-Consolidated Affiliates
Equity in Net Income of Non-Consolidated Affiliates y Visteon’s non-consolidated joint ventures’ performance significantly increased in Q1 2011 Q1 2011 equity income of $44 million $14 million Y/Y improvement - 47% y Yanfeng Visteon Automotive Trim Systems (“YFV”) and subsidiaries Q1 2011 perfor
Slide 104: Summary
Summary Resources Great partners, dedicated employees, and superior products provide foundation to be the best automotive product supplier in the world Differentiation Full-capability technical centers for each business, along with unique design center, promote innovation and creativity that enhance
Slide 105: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 106: Panel Q&A
Investor Day Panel Q&A Michael Lewis y Vice President and Treasurer y Director, Investor Relations Page 111
Slide 107: Additional Q&A Panelists
Investor Day Additional Q&A Panelists Bob Pallash y Global Customer Group President Tim Yerdon y Global Director, Innovation and Design Page 112
Slide 108: Q&A
Q&A Page 113
Slide 109: Moving Forward
Moving Forward y Invest in those product segments where we believe we can achieve market leadership and competitive differentiation to drive above market returns – For product segments and assets that do not meet these criteria, we will seek to maximize value on a thoughtful and disciplined basis y
Slide 110: www.visteon.com
SV Visteon: www.visteon.com
Slide 111: Today's Agenda
Today’s Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 112: Technology Review
Investor Day Technology Review Tim Yerdon y Global Director, Innovation and Design Page 117
Slide 113: Innovation at Visteon
Innovation at Visteon Vision Be recognized by our customers as the innovative partner-of-choice for translating their vision into products and services Mission Partner with our customers to co-create products and services that address unmet market needs Promote our product group strengths and cross-
Slide 114: Visteon Innovation and Design Locations
Visteon Innovation and Design Locations Page 119
Slide 115: Research, Development and Innovation
Research, Development and Innovation y Build up-stream relationships with OEMs Climate Climate Adv Adv y Translate market and technology trends into innovative concept solutions y Develop cross-product group technology Interiors Interiors Adv Adv demonstration assets (physical and virtual Corporate
Slide 116: Innovation Driven Concept Development
Innovation Driven Concept Development Envision: FUTURE WEB Futuring FuturingProcess Process Open Innovation Open Innovation Collaboration Collaboration Co-Creation Co-Creation Future driven vision and concepts Innovate: Concept Concept Development Development Process Process Validated products and t
Slide 117: Changes in Automotive Mobility
Changes Message in Automotive Mobility Areas of opportunity ? Autonomous vehicle ? ? X X X X “Life on Board” X X X Sustainability (CO2, weight) X X X X Craftsmanship / Perceived Quality Safety X X X Quality X X X X Cost X X X X Performance X X X X 1980 | 1990 | 2000 | 2010 | 2020 | 2030 | 2040 | 205
Slide 118: Financial Disclosures
Financial Disclosures
Slide 119: 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 120: Use of Non-GAAP Financial Information
Use of Non-GAAP Financial Information Throughout this presentation, the Company has provided information regarding certain non-GAAP financial measures. These measures include “free cash flow” and “Adjusted EBITDA.” Free cash flow represents cash flow from operating activities less capital expenditur
Slide 121: Adjusted EBITDA Reconciliation
Adjusted EBITDA Reconciliation 2005, 2010 (Dollars in Millions) 2005 2010 Net income / (loss) ($270) $1,026 Interest expense, net 132 170 Provision for income taxes 64 150 Depreciation and amortization 595 280 Asset impairments and other (gains) / losses (321) 24 Restructuring and other related cost
Slide 122: www.visteon.com
SV Visteon: www.visteon.com