Visteon Corporation · NASDAQ:VC
Visteon — Q1 2023 Earnings Presentation
25 slides from Visteon's earnings presentation, Apr 27, 2023
Slide 1: Visteon Q1 2023 Earnings
Visteon Q1 2023 Earnings April 27, 2023
Slide 2: Q1 2023 in Review
Q1 2023 in Review Net Sales Adjusted EBITDA Adjusted FCF $967 Million $99 Million ($37) Million 22% Y/Y Growth(1) 10.2% Margin $487 Million Total Cash CONTINUED HIGH NUMBER ROBUST NEW BUILDING WELL POSITIONED MARKET OUT- OF PRODUCT BUSINESS WIN MOMENTUM IN FOR GROWTH PERFORMANCE LAUNCHES ACTIVITY EL
Slide 3: Q1 Industry and Visteon Sales Performance
Q1 Industry and Visteon Sales Performance Strong start to the year with robust consumer demand driving vehicle production Industry Production Factors Visteon Sales Drivers U.S. / Europe Vehicle Production Global Production Volumes Continued demand momentum driving robust Visteon customer vehicle pro
Slide 4: Continued Product Sales Growth
Continued Product Sales Growth Product sales primarily driven by ramp-up of digital cluster and SmartCore™ programs (Dollars in millions) Q1 Product Sales Growth of +20%(1) Q1 Product Sales Outperformance Clusters $967 Robust digital cluster growth of ~35% Y/Y driven by ramp of launches with GM, Vol
Slide 5: Q1 New Business Wins
Q1 New Business Wins First quarter wins put us on track to achieve full-year target Q1 2023 New Business Wins Key Q1 New Business Win Highlights $1.5B SmartCore™ 7% Other Extension of SmartCore™ program on 17% 9% Clusters additional vehicles for Chinese OEM 9% Displays $0.9B 27% SmartCore™ & 31% Inf
Slide 6: Building Momentum in Electrification Business
Building Momentum in Electrification Business Diversification of product and customer portfolio driving growth Ultium Premium Brands Ultium North American Brand Luxury Platform with German OEM Platform with Global OEM European OEM New Win New Win Follow-on Win Follow-on Win Selected to Deliver Proof
Slide 7: Q1 New Product Launches
Q1 New Product Launches Product extensions on additional vehicle models supporting future sales growth Key Q1 2023 Launches GM Heavy Duty Trucks Ford Ranger – South America Geely – Zeekr X CUV Honda e:NP1 - China Digital Cluster Digital Cluster, Audio Infotainment Cockpit Domain Controller Digital C
Slide 8: 2023 Production Outlook
2023 Production Outlook Expecting low single-digit full-year global customer vehicle production growth Supply Chain Near-Term Resiliency Potential Macro Economic Dynamics in Demand Headwinds Remain Semiconductor supply expected to Dealer inventory re-stocking and resiliency High financing rates coup
Slide 9: Summary
Summary Continued Market Outperformance Delivered 16th consecutive quarter of growth-over-market relative to our customers’ vehicle production Strong Operational and Commercial Performance Commercial and cost discipline drove 10.2% EBITDA margin Product Launches Support Continued Growth Delivered 34
Slide 10: Q1 2023 Financial Results
Q1 2023 Financial Results April 27, 2023
Slide 11: Q1 2023 in Review
Q1 2023 in Review Strong start to the year with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $967 Million $99 Million ($37) Million 22% Y/Y Growth(1) 10.2% Margin $487 Million Total Cash Robust year-over-year growth supported by Strong margin progression
Slide 12: Q1 2023 Y/Y Financial Performance
Q1 2023 Y/Y Financial Performance Strong sales growth and Adjusted EBITDA expansion (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA Recoveries Industry Production Growth +$124 +$28 Strong demand in North America and Europe partially offset by slow start in China $967 $99 Growth-O
Slide 13: Q1 2023 Balance Sheet and Adjusted Free Cash Flow
Q1 2023 Balance Sheet and Adjusted Free Cash Flow Strong balance sheet provides ongoing flexibility Q1 Q1 (Dollars in Millions) 2022 2023 $487 million Provides flexibility and Adjusted EBITDA $71 $99 Cash supports capital allocation Trade Working Capital (40) (77) $352 million Cash Taxes (7) (18) No
Slide 14: 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 $487
Slide 15: Appendix
Visteon’ Appendix April 27, 2023
Slide 16: Forward-Looking Information
Forward-Looking Information 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," "inte
Slide 17: 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 18: 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 19: 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 20: 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 21: 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 22: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted EBITDA Build-up 2022 2023 (Do llars in millio ns) Q1 Q2 Q3 Q4 Full Year Q1 Sales $818 $848 $1,026 $1,064 $3,756 $967 Gross margin $76 $74 $104 $114 $368 $110 Intangibles amortization - - 1 - 1 - Stock-based compensation expense 1 3 3
Slide 23: Net Engineering
Net Engineering 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Engineering costs, net Engineering costs, gross ($81) ($81) ($83) ($96) ($341) ($83) Recoveries 33 40 25 47 145 27 Engineering costs, net ($48) ($41) ($58) ($49) ($196) ($56) 23
Slide 24: 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 Income Statement Sales $818 $848 $1,026 $1,064 $3,756 $967 Gross margin 76 74 104 114 368 110 SG&A 44 43 47 54 188 52 Net income / (loss) attributable to Visteon 22 24 44 34 124 34 Earnings
Slide 25: Visteon
Visteon