Slide 1: Visteon Q2 2024 Earnings
Visteon Q2 2024 Earnings July 25, 2024
Slide 2: Q2 2024 in Review
Q2 2024 in Review Net Sales Adjusted EBITDA Adjusted FCF $1,014 Million $136 Million $28 Million 9% Growth-over-Market(1) 13.4% Margin $181 Million Net Cash Delivered high single-digit growth-over-market DELIVERING EXPANDING EXECUTING ON WINNING DIVERSIFYING ON OUR PRODUCT SIGNIFICANT CUSTOMER GROWT
Slide 3: Q2 2024 Sales Highlights
Q2 2024 Sales Highlights Strong demand for Visteon’s next-generation products driving significant market outperformance Product Sales Highlights Regional GoM Highlights Americas Digital Cockpit Robust outgrowth driven by ramp up of digital clusters ▪ Robust sales growth despite market and electrific
Slide 4: New Business Wins
New Business Wins On track to achieve full-year target of $6+ billion of new business H1 2024 New Business Wins Key Q2 New Business Wins Electrification & Other OLED Display Large curved OLED display for luxury Clusters 17% vehicle platform for a Japanese OEM Displays 57% $3.1B 23% SmartCore™ & Mult
Slide 5: New Product Launches
New Product Launches Successful launches of new products driving growth Key Q2 2024 New Product Launches Toyota Camry Mazda MX-30 Porsche Macan Digital Cluster Center Display Digital Cluster YTD 2024 New Product Launches Summary 41 17 ~60% New Product OEMs with New New Product Launches Product Launc
Slide 6: Market Outlook and Full-Year Visteon Sales
Market Outlook and Full-Year Visteon Sales Forecasting continued growth-over-market despite market headwinds Visteon Customer Production Volume Full year customer production expected to be down 3%(1) due to weaker vehicle demand in the second half China, EV Mix, and Program Delays Unfavorable vehicl
Slide 7: H1 2024 Summary
H1 2024 Summary Continued Momentum with Digital Cockpit Solutions Technology portfolio aligns with key megatrends, including digitalization, connected car, and electrification Delivering Growth-over-Market Despite Industry Challenges Market outperformance in H1 expected to continue in H2 Strong Comm
Slide 8: Q2 2024 Financial Results
Q2 2024 Financial Results July 25, 2024
Slide 9: Q2 2024 Financial Review
Q2 2024 Financial Review Solid quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $1,014 Million $136 Million $28 Million 9% Growth-over-Market(1) 13.4% Margin $181 Million Net Cash Strong demand with y/y sales increasing for digital Record adj. E
Slide 10: Q2 2024 Y/Y Financial Performance
Q2 2024 Y/Y Financial Performance Delivering growth-over-market and expanded profitability (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA +$31 +$46 Growth-over-Market Ramp up of recent product launches and $1,014 higher electrification demand drove 9% GoM $983 $136 Operational P
Slide 11: Balance Sheet and Adjusted Free Cash Flow
Balance Sheet and Adjusted Free Cash Flow Strong balance sheet supported by $181 million net cash position H1 H1 LTM Q2 LTM Capital Allocation (Dollars in millions) 2023 2024 2024 Adjusted EBITDA $189 $238 $483 Earmarked for M&A Trade Working Capital (79) (64) (50) Share 28% 27% Repurchases Cash Tax
Slide 12: Revising 2024 Full-Year Guidance
Revising 2024 Full-Year Guidance Delivering growth-over-market, margin expansion, and cash generation (Dollars in millions unless otherwise noted) Key Assumptions ▪ Global LVP decline of ~2% y/y; customer production down ~3% $3.85B – $3.95B ▪ GoM headwinds from China, EV mix, and program delays ~7%
Slide 13: 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 Cash
Slide 14: Appendix
Visteon’ Appendix July 25, 2024
Slide 15: 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 16: 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 17: 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 non-cash stock-based compensation expense, intangibles amortization and other non- operating costs. 2023 2024 (Dollars in millions) Q
Slide 18: 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 related tax effects and other gains and losses not reflective
Slide 19: 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, net interest expense, equity in net (income) / loss of no
Slide 20: 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 21: 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 YTD Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $1,947 Gross margin $110 $104 $143 $130 $487 $119 $147 $266 Intangibles amortization — — — 1 1 — — — Non-c
Slide 22: Net Engineering
Net Engineering 2023 2024 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 YTD Engineering costs, net Engineering costs, gross ($83) ($91) ($79) ($77) ($330) ($83) ($81) ($164) Recoveries 27 29 25 39 120 23 31 54 Engineering costs, net ($56) ($62) ($54) ($38) ($210) ($60) ($50) ($110) 22
Slide 23: 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 YTD Income Statement Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $1,947 Gross margin 110 104 143 130 487 119 147 266 SG&A 52 52 52 51 207 52 49 101 Net income / (loss) attributable to
Slide 24: Visteon
Visteon