Visteon Corporation · NASDAQ:VC
Visteon — Q4 2024 Earnings Presentation
26 slides from Visteon's earnings presentation, Feb 18, 2025
Slide 1: Visteon Q4 & Full-Year 2024 Earnings
Visteon Q4 & Full-Year 2024 Earnings February 18, 2025
Slide 2: Strong FY 2024 Performance
Strong FY 2024 Performance Expanding our leadership in digital cockpit and electrification electronics Robust Net Sales Record Adjusted EBITDA Record Adjusted FCF $3,866 Million $474 Million $300 Million +4% Growth-over-Market(1) 12.3% Margin $307 Million Net Cash SDV AND DISPLAYS AND FOCUS ON BALAN
Slide 3: Product Launches Aligned with Megatrends
Product Launches Aligned with Megatrends SDV, Digitalization, and Electrification trends drive high number of new product launches FY 2024 Product Trends Key Q4 2024 Model Launches SDV Growing in Mid to Upper Segment of Market ICE Vehicle Electric Vehicle Electric Vehicle Higher performance SmartCor
Slide 4: Strong New Business Wins
Strong New Business Wins FY 2024 New Business Wins by Product New Business Win Highlights Building Momentum with Toyota Electrification Growing relationship with largest & Other global car manufacturer 14% Cockpit Win with Maruti Suzuki First win with largest OEM in Indian market with runway for exp
Slide 5: Delivering on Strategic Initiatives in 2024
Delivering on Strategic Initiatives in 2024 ✓ Significant bookings of next-gen large displays and cockpit domain controllers ✓ First win for on-board charger and DC/DC converter expands electrification business Focus on Fast Growing Domains ✓ Bolt-on acquisition of technology companies to broaden Vi
Slide 6: 2025 to 2027 Sales Outlook
2025 to 2027 Sales Outlook Growth driven by progress on strategic initiatives 2025 Sales Outlook Growth in 2026 & 2027 ▪ Customer production expected to decline mid ▪ Global vehicle production based on industry forecast(1) single-digits(1) with modest increase in customer production ▪ Growth-over-ma
Slide 7: Visteon Q4 & Full-Year 2024 Financial Results
Visteon Q4 & Full-Year 2024 Financial Results February 18, 2025
Slide 8: Impressive 5-Year Financial Performance
Impressive 5-Year Financial Performance Delivered higher revenue, expanded margins, and generated significant cash flow (Dollars in millions) Sales Adjusted EBITDA Adjusted Free Cash Flow Recoveries Added Expanded Avg Conversion(1) ~$0.9B +440 bps ~38% $3,954 $3,866 $474 $3,756 $434 $300 $2,945 $348
Slide 9: Q4 2024 Financial Review
Q4 2024 Financial Review Strong finish to the year with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $939 Million $117 Million $165 Million +8% GoM(1) Outside of China 12.5% Margin $307 Million Net Cash Strong demand with y/y sales increasing for Strong
Slide 10: FY 2024 Sales & EBITDA Performance
FY 2024 Sales & EBITDA Performance Expanded margins by 130 bps in a challenging industry environment (Dollars in millions) Record Key Performance Drivers Sales Adjusted EBITDA ($88) +$40 Growth-Over-Market Market outgrowth of 4% (9% outside of China) supported by ramp-up of product launches $3,954 $
Slide 11: Cash Flow and Capital Allocation
Cash Flow and Capital Allocation Generated substantial cash flow from increased profitability and significant working capital inflow FY FY (Dollars in millions) 2023 2024 Capital Expenditures Adjusted EBITDA $434 $474 $137M Investing to support continued organic growth Trade Working Capital (65) 30
Slide 12: 2025 Full-Year Guidance
2025 Full-Year Guidance (Dollars in millions unless otherwise noted) 2025 Key Assumptions ▪ Customer production forecasted to decline mid single-digits $3.65B – $3.85B ▪ Mid to high single-digit growth-over-market driven by product MSD/HSD Growth-over-Market* launches, partially offset by ongoing he
Slide 13: 2027 Targets
2027 Targets Delivering growth and strong financial performance through 2027 (Dollars in millions) Sales Adjusted EBITDA Free Cash Flow 5% CAGR 9% CAGR 10% CAGR ~$4,150 $3,750 ~$550 $465 ~$230 $190 12.4% 13.3% ~40% 40%+ margin margin conv. conv. 2025 2027 2025 2027 2025 2027 • Modest increase in cus
Slide 14: Investment Thesis
Investment Thesis Visteon continues to be a compelling long-term investment opportunity Digital Cockpit Innovative Product Competitive Cost Balanced Capital Electronics Leader Portfolio Structure Allocation Digital cockpit leader for cars, Industry leader in digital clusters Optimizing spend t
Slide 15: Earnings Q&A
Earnings Q&A February 18, 2025
Slide 16: Appendix
Appendix February 18, 2025
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. 2023 2024 (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) 2023 2024 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $980 $939 $3,866 Gross margin $110 $104 $143 $130 $487 $119 $147 $131 $134 $531 Intangibles am
Slide 24: Net Engineering
Net Engineering 2023 2024 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Engineering costs, gross ($83) ($91) ($79) ($77) ($330) ($83) ($81) ($80) ($90) ($334) Recoveries 27 29 25 39 120 23 31 33 56 143 Engineering costs, net ($56) ($62) ($54) ($38) ($210) ($60) ($50) ($47) ($34)
Slide 25: Financial Results – U.S. GAAP
Financial Results – U.S. GAAP 2023 2024 (Dollars in millions, except per share data) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 Q4 Full Year Income Statement Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $980 $939 $3,866 Gross margin 110 104 143 130 487 119 147 131 134 531 SG&A 52 52 52 51 207 52 49 51 55 207
Slide 26: Visteon
29 | Visteon IN MOTION