Visteon Corporation · NASDAQ:VC
Visteon — Deutsche Bank Global Auto Industry Conference 2013
46 slides from Visteon's conference presentation, Jan 14, 2013
Slide 1: Delivering Value
Exhibit 99.1 Our Family of Businesses Halla Visteon Climate Control Electronics Interiors Delivering Value Deutsche Bank Global Auto Industry Conference January 15, 2013 Yanfeng Visteon
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, Adjusted EPS and 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-looking non-GAAP
Slide 4: Today We Will ...
Today We Will … Present Visteon at a glance Review 2012 key accomplishments Provide update on Halla Visteon Climate Control (HVCC) transaction progress Offer additional Yanfeng Visteon insight Discuss 2012 performance Announce 2013 full-year guidance Page 4
Slide 5: Visteon in Summary
Visteon in Summary Overview Key Businesses Climate 2012E Sales Global auto supplier of HVAC Systems climate, electronics and Powertrain Cooling interiors products EV & Hybrid Battery Cooling $4.3 Billion Compressors Worldwide manufacturing / Fluid Transport engineering footprint with Electronics emp
Slide 6: 2012 Achievements
2012 Achievements Announced and implemented strategic plan to create value for stakeholders Initiated $100 million restructuring program to further reduce fixed-cost structure, right-size operations and address underperforming assets Completed several value-creating strategic and financial actions C
Slide 7: 2012 New Business Wins
2012 New Business Wins (Dollars in Millions) Incremental New Re-Wins Lost Business Business Wins $750 $450 ($210) 2012 2012 2012 Interiors Interiors Electronics 5% 15% 13% Interiors Electronics Climate 20% Electronics 35% 60% 48% Climate Climate 37% 67% During 2012, Visteon was Awarded Approximately
Slide 8: Backlog Fuels Visteon Future Growth
Backlog Fuels Visteon Future Growth Visteon Sales and Net Backlog Net backlog: incremental new business net of lost business that will launch during the next three years Incremental new business includes 2012 wins as well as wins recognized in previous years $8.2B Addt’l Net $0.8B 0.4 Total Net $7.4
Slide 9: Fixed-Cost and SG&A Actions – An Update
Fixed-Cost and SG&A Actions – An Update Fixed-Cost and SG&A Reduction Plan Fixed-Costs and SG&A Spend (1) (Dollars in Millions) Visteon announced during its third quarter 2012 earnings call a focused $485 plan to further reduce SG&A and other $430 fixed costs $410 – “Other fixed costs” include $340-
Slide 10: Visteon's Strategic Plan – The Value of Optionality
Visteon’s Strategic Plan – The Value of Optionality 100% 50% 70% 100% 100% Visteon Visteon Visteon Yanfeng Climate Interiors Electronics Visteon 40% Contribute Visteon Climate to HCC for cash Remains non-core 60% Establishes “Halla Visteon Climate Control” Continue to pursue YFV (HVCC) as single con
Slide 11: Halla Visteon Climate Control (HVCC)
Our Family of Businesses Halla Visteon Climate Control Electronics Interiors Halla Visteon Climate Control (HVCC) A Value-Creating Joint Venture Deutsche Bank Global Auto Industry Conference January 15, 2013 Yanfeng Visteon
Slide 12: HVCC Transaction Update
HVCC Transaction Update Pro forma entity name changed to “Halla Visteon Climate Control” Visteon to contribute majority of Visteon Climate business to Halla for cash (small portion of business retained by Visteon) Definitive agreement signed on January 11, 2013 $410 million gross proceeds to Visteon
Slide 13: Expected HVCC Financial Profile
Expected HVCC Financial Profile Overview 2012E Climate Global Market Share (2) Denso 2012E Sales (1) $4.1 Billion Other 23% 24% 2012E EBITDA 9.0% Margin (1) Modine 2% HVCC Sanden 4% 13% Headcount 13,350 Calsonic 5% Consolidated 26 Delphi Valeo Mfg Facilities 7% Behr Unconsolidated 6 12% 10% 2012E Sa
Slide 14: The HVCC Manufacturing Footprint
The HVCC Manufacturing Footprint Nový Ji in, Ilava Hluk, SLOVAKIA Rychvald Dalian CZECH REP CHINA Daejeon, Belleville Charleville Changchun Beijing Pyeongtaek, CANADA FRANCE Jinan Ulsan Juarez (3 Plants) Chengdu S. KOREA Palmela (2) MEXICO Shorter, AL PORTUGAL Chongqing Hiroshima, USA Szekesfehervar
Slide 15: Offer Full Range of Climate Products
Offer Full Range of Climate Products EV & Hybrid Battery Powertrain Cooling Fluid Cooling Transport Compressors HVAC Page 15
Slide 16: Key Technologies Drive Strong Order Book and Awards
Key Technologies Drive Strong Order Book and Awards Strong Backlog Drives Sales $700 Million HVCC 3-year backlog of $700 million – Represents new business, net of lost business Strong backlog, higher volumes and currency impacts drive 7% forecasted 2013E 2014E 2015E 3-Year Backlog sales CAGR through
Slide 17: HVCC Positioned to Fuel Growth
HVCC Positioned to Fuel Growth Clear #2 global Climate player, with 13% market share Customer-focused solutions provider with worldwide presence Leading product and technology portfolio One of only two “full-line” suppliers Low-cost, Asian-centric manufacturing footprint Strong balance sheet and cas
Slide 18: Growth in China and Abroad
Our Family of Businesses Halla Visteon Climate Control Electronics Interiors Growth in China and Abroad Deutsche Bank Global Auto Industry Conference January 15, 2013 Yanfeng Visteon
Slide 19: Yanfeng Visteon (YFV) Today
Yanfeng Visteon (YFV) Today Overview 2011 Sales Breakdown 50% / 50% joint venture between By Product Visteon / HASCO (SAIC) in China, Safety Tooling Exterior 4% 1% established in 1994 6% Electronics 8% One of the largest auto suppliers in Interiors 43% China with five primary businesses – Interiors,
Slide 20: YFV Structure
YFV Structure • 50% / 50% JV between YFJCI 1997 Visteon and HASCO (SAIC) 50% Seating 50% 50% • Technology JVs with YFV international partners Electronics 2002 60% • Interior subsidiaries and YF Key JVs with OEMs to expand 50% 2004 Safety outside of Shanghai YFPO 2007 50% Exterior DETC 20% 12.5% 25%
Slide 21: Five YFV Businesses: Strong Technical Capabilities
Five YFV Businesses: Strong Technical Capabilities Interior System Electronic System Seating System Exterior System Safety System Cockpit Driver Seats Bumpers Steering wheels Instrument panels information Trim covers Body trim Air bags Door panels Entertainment Mechanisms Rear closures Seat belts Co
Slide 22: YFV's Global Footprint
YFV’s Global Footprint Ruesselsheim, Germany Symbol Business System Facilities Michigan, USA Changchun Seating 39 Kalol, India Shenyang Interiors 33 Baotou Dalian Beijing Baoding Yantai Exteriors 14 Xuzhou Yancheng Zhengzhou Yizheng Electronics 7 Nanjing Nantong Shi‘yan Hefei Shanghai Wuhu Safety 2
Slide 23: YFV's Robust Historical Growth
YFV’s Robust Historical Growth YFV Group Total Sales (1) (RMB in Billions) 44.8 40.4 35.5 22.2 15.0 13.7 10.2 6.9 6.9 7.8 4.1 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 27% Sales CAGR Since 2002 Page 23 (1) Non-U.S. GAAP figure. Represents People’s Republic of China GAAP sales.
Slide 24: YFV: Well-Positioned in World's Largest Auto Market
YFV: Well-Positioned in World’s Largest Auto Market (Units in Millions) China Passenger Car Sales Yanfeng Visteon Market Positions in China 20.1 13.2 #1 Seats #2 Instrument panels #3 Consoles Clusters Door panels Audio Steering wheels Bumpers 2012E 2016E Yanfeng Visteon #1 China Auto Supplier 11% Ch
Slide 25: YFV's 2013 Outlook
YFV’s 2013 Outlook 2013 Outlook Sales expected to increase by $1 billion, driven by: Double-digit, year-over-year growth in Interiors, Seating, Exterior and Total Safety, as well as solid growth for Electronics Sales Strong domestic sales, partially offset by weakness in exports Double-Digit Growth
Slide 26: Strategic Initiatives at YFV
Strategic Initiatives at YFV Expand domestic footprint to support growth of core customers Grow customer base with local China OEMs; continued diversification with select Chinese and Japanese OEMs Support OEMs’ growth plans in China and abroad via cooperation with Visteon and other partners Strength
Slide 27: Financially Speaking
Our Family of Businesses Halla Visteon Climate Control Electronics Interiors Financially Speaking Deutsche Bank Global Auto Industry Conference January 15, 2013 Yanfeng Visteon
Slide 28: A Strong Capital Structure
A Strong Capital Structure (Dollars in Millions) Visteon Debt and Cash Visteon Debt Maturity Schedule 9/30/12 $445 6.75% Senior Notes due 2019 $495 (1) Affiliate Debt / Other 100 Total Debt $595 (2) Cash 920 Annual Net Debt ($325) Includes Working $50M Bond Capital Redemption Facility Visteon Levera
Slide 29: 2012 Guidance Update
2012 Guidance Update 2012 Current Guidance Outlook Commentary Sales $6.8 billion Expect full-year sales to be in line with guidance Expect to be at high-end of guidance or slightly above Adjusted $590 - $610 million Q4 benefitted from the timing of several EBITDA commercial claims and engineering re
Slide 30: 2012 Adjusted EBITDA Recast
2012 Adjusted EBITDA Recast (Dollars in Millions) 2012E 2012 Adjusted EBITDA Guidance Midpoint ($590-$610) $600 Exclude: Lighting and R-TEK (30) Y/Y Change Exclude: Non-Cash Equity-Based Compensation Expense +25 in Methodology Add: Non-Controlling Interest from Climate Transaction (10) 2012 Adjusted
Slide 31: 2013 Volume and Currency Outlook
2013 Volume and Currency Outlook 2013 Production Volumes 2013 Exchange Rates (Units in Millions) 2012E 2013E % Growth Visteon Assumptions 2012E 2013E North America Ford 2.8 3.0 6.2% Exchange Rates Hyundai / Kia 0.7 0.7 5.8 All Other 11.7 11.7 (0.1) $ / Euro $1.28 $1.30 Subtotal 15.2 15.4 1.4% Korean
Slide 32: 2013 Guidance
2013 Guidance Sales Adjusted EBITDA $7.3B - $7.5B $620M - $660M $6.8B $575M - $595M (1) Y/Y FX Y/Y FX Impact of Impact of Positive Negative $125M ($15M) 2012E 2013E 2012E Recast 2013E Adjusted EPS Adjusted Free Cash Flow Excl. Restructuring and Transaction-Related Cash $2.96 - $4.19 $100M - $150M $2
Slide 33: Value-Creating Uses of Cash
Value-Creating Uses of Cash Visteon Cash 2013 Actions to Drive Shareholder Value (1) Upsize Share Repurchase Program to $300M $920M Upsized total repurchase authorization to $300 million, to be executed during the next two years (includes $50 million of repurchases in 2012) Focus Restructuring to Ad
Slide 34: Strategic Imperatives
Strategic Imperatives Reduce Focused on achieving lean corporate overhead structure Overhead Plans being finalized and implemented Divest Non-core business Interiors Sale or alternative strategic placement of consolidated business Optimize Address Electronics’ strategy and global position Electronic
Slide 35: Questions and Discussion
Questions and Discussion
Slide 36: Appendix
Our Family of Businesses Halla Visteon Climate Control Electronics Interiors Appendix Deutsche Bank Global Auto Industry Conference January 15, 2013 Yanfeng Visteon
Slide 37: Interiors Product Line
Interiors Product Line Product Line Overview Key Products and Market Positions Consolidated Non-Consolidated 2012E Sales $1.4 billion $7.4 billion 2012E EBITDA ~$32 million N/A Mkt Position #2 (12% Share) Headcount 6,750 24,925 Mfg Facilities 27 90 Equity Income – ~$140 million Note: Includes consol
Slide 38: Electronics Product Line
Electronics Product Line Product Line Overview Key Products and Market Positions Consolidated + Consolidated YFVE Consolidation (1) 2012E Sales $1.2 billion $1.8 billion EBITDA Margin (~6.0% Margin) (~7.6% Margin) Global Mkt #8 (4% Share) #5 (6% Share) Position Headcount 5,900 10,700 Note: Includes
Slide 39: U.S. Pension Funding Status as of December 31, 2012
U.S. Pension Funding Status as of December 31, 2012 (Dollars in Millions) Preliminary Amounts (Estimated) PBO Asset Value Unfunded Actual 12/31/2011 Funded Level (4.87% Discount Rate) $1,480 $1,151 $329 Interest on PBO 70 Stock Contribution (1/9/2012) 73 Cash Contribution 4 Asset Appreciation and In
Slide 40: 2013 Guidance
2013 Guidance 2013 Guidance Product Sales $7.3 B - $7.5 B Adjusted EBITDA $620 M - $660 M Free Cash Flow Free Cash Flow (1) ($75) M - $25 M Adjusted Free Cash Flow $100 M - $150 M (ex. Restructuring and Transaction-Related Cash) Adjusted EPS $2.96 - $4.19 Other Selected Items: 2013 Guidance Deprecia
Slide 41: 2013 Adjusted EBITDA Drivers
2013 Adjusted EBITDA Drivers Adjusted EBITDA Y/Y Change $640M in Methodology $600M $585M ($30M) $25M ($10M) Volume Currency Other Net Cost Lighting Equity- NCI NCI Performance Disc Ops / Based Impact R-TEK Comp of HVCC Expense Transaction 2012 2012 2013 Midpoint Re-cast Midpoint Adjusted EBITDA Impr
Slide 42: Reconciliation of Non-GAAP Financial Information
Reconciliation of Non-GAAP Financial Information Adjusted EBITDA 2011 2012 2012 FY Guidance Provided During Q3 2012 Earnings 2013 FY Guidance (Dollars in Millions) Full Year 1st Qtr 2nd Qtr 3rd Qtr Low-end High-end Low-end High-end Adjusted EBITDA $685 $150 $151 $131 $590 $610 $620 $660 Interest exp
Slide 43: Earnings per Share
Earnings per Share Adjusted EPS 2012 FY Guidance Provided 2011 2012 During Q3 2012 Earnings 2013 FY Guidance (Dollars and Shares in Millions) Full Year 1st Qtr 2nd Qtr 3rd Qtr Low-end High-end Low-end High-end Net income (loss) attributable to Visteon $80 ($29) $75 $15 $85 $105 ($45) $85 Average sha
Slide 44: Adjusted EBITDA Reconciliation by Product Group
Adjusted EBITDA Reconciliation by Product Group 2012 FY PG Guidance Underlying Corporate Guidance Given During Q3 Earnings Call Climate Disc Ops/ Total (Dollars in Millions) Total Retained HVCC Electronics Interiors Elims Visteon Product Sales $4,263 $152 $4,111 $1,243 $1,379 ($105) $6,780 Gross Mar
Slide 45: Electronics – Consolidated + YFVE Reconciliation
Electronics – Consolidated + YFVE Reconciliation 2012 FY Electronics Guidance Underlying Corporate Guidance Given During Q3 Earnings Call Combined Electronics (Dollars in Millions) Electronics YFVE & YFVE (1) Product Sales $1,243 $700 $1,783 Gross Margin $115 $65 $180 Employee Charges / Corp Severan
Slide 46: www.visteon.com
www.visteon.com
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