Slide 1: Visteon Q2 2023 Earnings
Visteon Q2 2023 Earnings August 3, 2023
Slide 2: Q2 2023 in Review
Q2 2023 in Review Net Sales Adjusted EBITDA Adjusted FCF $983 Million $90 Million $32 Million 18% Y/Y Growth(1) Includes $15 Million Recall Charge $459 Million Total Cash CONTINUED EXECUTING ON FIRST WIN IN RECORD LEVEL RETURNING MARKET OUT- PRODUCT EV POWER OF NEW CAPITAL TO PERFORMANCE LAUNCHES EL
Slide 3: Continued Product Sales Growth
Continued Product Sales Growth Product sales primarily driven by ramp-up of digital cluster and SmartCore™ programs (Dollars in millions) Q2 Product Sales Growth of +27%(1) Q2 Product Sales Performance Clusters Robust digital cluster growth of ~55% Y/Y driven $983 by ramp-up of launches with GM and
Slide 4: Improving Semiconductor Supply Environment
Improving Semiconductor Supply Environment Easing supply constraints reducing reliance on open market purchases Semiconductor Supply Dynamics Open Market Semiconductor Purchases (Dollars in millions) $100 Overall semiconductor supply improvement with lower number of parts in critical supply Supply d
Slide 5: First Power Electronics Win for Electric Vehicles
First Power Electronics Win for Electric Vehicles Integrated system of battery junction box and battery management system Q2 2023 Award Platform Win for New Single EV Architecture with Luxury European OEM 2026 Expected Start of Production Battery Junction Box $490M Directs power throughout e- powert
Slide 6: New Business Wins
New Business Wins Record second quarter wins put us on track to exceed full-year target Q2 2023 YTD New Business Wins Key Q2 New Business Win Highlights $4.0B 5% Other Digital Cluster 14% Displays Extension of 12.3” digital cluster on trucks $3.1B and SUVs with North American OEM SmartCore™ & 20% In
Slide 7: Q2 New Product Launches
Q2 New Product Launches New model launches to support market outperformance in second half of the year Key Q2 2023 Launches In the Spotlight Integrated cockpit controller for premium touring line coupling display with underlying electronics Mercedes-Benz SUVs Harley Davidson Touring Digital Cluster
Slide 8: Growing Two-Wheeler Market Opportunity
Growing Two-Wheeler Market Opportunity Current serviceable market ~10% of 40-million-unit two-wheeler market Visteon Serviceable Market Segmentation Average Segment Representative Product Representative OEM Content-per-Vehicle Cruiser / Touring ~$350 Cockpit Domain Controller with Telematics Cruiser
Slide 9: Rest of Year Outlook
Rest of Year Outlook Expecting low single-digit full-year global customer vehicle production growth Market Growth-over- New Business Dynamics Market Factors Booking Outlook ➢ Consumer demand has been resilient in ➢ Roll-on of program launches throughout ➢ $4 billion of new business wins in 1st half
Slide 10: Summary
Summary Continued Market Outperformance Delivered 17th consecutive quarter of growth-over-market relative to our customers’ vehicle production Strong Commercial Performance Continued commercial discipline mitigating ongoing semiconductor supply disruption Product Launches Support Continued Growth De
Slide 11: Q2 2023 Financial Results
Q2 2023 Financial Results August 3, 2023
Slide 12: Q2 2023 Financial Review
Q2 2023 Financial Review Strong quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $983 Million $90 Million $32 Million 18% Y/Y Growth(1) Includes $15 Million Recall Charge $459 Million Total Cash Strong year-over-year growth supported by Higher v
Slide 13: Q2 2023 Y/Y Financial Performance
Q2 2023 Y/Y Financial Performance Strong sales growth supported by market outperformance (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA +$195 +$11 Industry Production Growth 12% Y/Y increase in customer production $983 with growth across all regions $848 $15M $909 Growth-Over-Ma
Slide 14: Balance Sheet and Adjusted Free Cash Flow
Balance Sheet and Adjusted Free Cash Flow Maintaining target net cash position after $30 million of share repurchases YTD YTD (Dollars in Millions) 2022 2023 $459 million Provides flexibility and Adjusted EBITDA $150 $189 Cash supports capital allocation Trade Working Capital (138) (79) $348 million
Slide 15: 2023 Full-Year Guidance and Long-Term Targets
2023 Full-Year Guidance and Long-Term Targets On track to achieve 2026 objectives (Dollars in millions unless otherwise noted) 2023 2026 $3.95B – $4.15B $5.5B Base Sales +15% Y/Y $5.4B Base Sales Sales $405 – $445 ~13.5% 10.3 – 10.7% Margin Adj. EBITDA Margin Adj. EBITDA $115 – $165 $260 – $300 ~33%
Slide 16: 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 Stron
Slide 17: Appendix
Visteon’ Appendix August 3, 2023
Slide 18: 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 19: 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 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) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 YTD Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,950 Gross margin $76 $74 $104 $114 $368 $110 $104 $214 Intangibles amortization — — 1 — 1 — — — Stock-b
Slide 24: Net Engineering
Net Engineering 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 YTD Engineering costs, gross ($81) ($81) ($83) ($96) ($341) ($83) ($91) ($174) Recoveries 33 40 25 47 145 27 29 56 Engineering costs, net ($48) ($41) ($58) ($49) ($196) ($56) ($62) ($118) 24
Slide 25: 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 Q2 YTD Income Statement Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,950 Gross margin 76 74 104 114 368 110 104 214 SG&A 44 43 47 54 188 52 52 104 Net income / (loss) attributable to Vi
Slide 26: Recast: Sales Build by Product
Recast: Sales Build by Product Sales by product category • Effective as of the June 30, 2023 10-Q Filing, the Company updated its product lines reporting to better reflect its product portfolio given the emergence of new and growing product lines • The below table provides an overview of sales by pr
Slide 27: Visteon
Visteon