Visteon Corporation · NASDAQ:VC
Visteon — Investor Day (July 2011)
120 slides from Visteon's investor day presentation, Jul 27, 2011
Slide 1: Visteon Corporation Investor Day July 27, 2011
Visteon Corporation Investor Day July 27, 2011
Slide 2: View C-Beyond video
View C-Beyond video at http://www.visteon.com/innovate/c-beyond/index.html
Slide 3: Welcome / Introductions
Investor Day Welcome / Introductions Bill Quigley Executive Vice President and CFO Page 3
Slide 4: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 5: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 6: Visteon Overview
Investor Day Visteon Overview Don Stebbins Chairman, CEO and President Page 6
Slide 7: Visteon Overview
Please see important disclosures regarding "Forward Looking Information" Visteon Overview Leading global automotive supplier of climate, interiors, electronics and lighting products Global manufacturing and engineering footprint with emphasis on low-cost regions Strategically positioned to capitaliz
Slide 8: 2010 Product Sales by Segment and Geography
2010 Product Sales Sales by Segment Climate 44% Interiors 28% Electronics 28% $7.3 Billion Asia 40% Europe 36% N. America 17% S. America 7% $10.8 Billion Electronics 25% Interiors 42% Climate 33% Consolidated Sales Market Penetration $7.3 Billion $10.8 Billion Asia 56% Europe 26% N. America 13% S. A
Slide 9: Repositioning Visteon
Repositioning Visteon (Dollars in Millions) 2005 Product Sales $16,586 Net Income / (Loss) (270) Adjusted EBITDA 207 Adj. EBITDA Margin 1.2% Debt / Adj. EBITDA 9.6x Facilities w/JVs 183 %LCC 40% Customer Sales Regional Sales Asia 12% N. America 61% S. America 3% Other 32% Ford 62% Streamlined and Co
Slide 10: Well Positioned With Global Vehicle Production Levels
Consolidated Sales Market Penetration S. America 0.07 0.05 N. America 0.17 0.13 Europe 0.36 0.26 Asia Pacific 0.4 0.56 2010 Global Production Volumes (Units in Millions) Well Positioned With Global Vehicle Production Levels S. America N. America Europe Asia Pacific $7.3B $10.8B (1) Rebased to 100% t
Slide 11: Organic Growth: New Business Wins and Backlog
Organic Growth 2011 2012 2013 2011-2013 Cum. Booked 60 360 280 700 (Dollars in Millions) Backlog (as of 12/31/2010) Strong Product / Technology Portfolio Continues to Drive New Business Wins Region PSA 7% Other 17% Please see important disclosures regarding "Forward Looking Information" HMG 61% Ford
Slide 12: Adjusted EBITDA Margin Growth Objective
Adjusted EBITDA Margin Growth Objective Focused on Driving Double Digit Adjusted EBITDA Margins By 2014 Please see important disclosures regarding "Forward Looking Information" and "Use of Non-GAAP Financial Information" 2010 vs. 2014E Objective 2010 Volume/Mix Performance Perimeter Net Efficiencies
Slide 13: Product Portfolio Aligned with Market Trends
Product Portfolio Aligned with Market Trends Consumer Experience Fuel Efficiency and Reduced Emissions Manufacturing and Product Development Scale Visteon Advantage Resulting Automotive Trends Macro Changes Global scale with regional adaptations Lower cost components given commonality with multiple
Slide 14: Technology Developments by Product Group
Climate Electronics Interiors Lighting Technology Developments by Product Group Fully integrated compressor, electric motor, power inverter and oil separator to maximize fuel economy, enable battery cooling, and provide air conditioning to electric vehicles Enable adoption of HEV and EV powertrains
Slide 15: Moving Forward
Moving Forward Invest in those product segments where we believe we can achieve market leadership and competitive differentiation to drive above market returns For product segments and assets that do not meet these criteria, we will seek to maximize value on a thoughtful and disciplined basis Fortif
Slide 16: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 17: View climate video
View climate video at http://www.visteon.com/media/multimedia/climate_video.html
Slide 18: Climate Operations
Investor Day Climate Operations Joy Greenway Product Group President Page 18
Slide 19: Climate Product Group
Climate Product Group Products and Market Positions Highlights / Advantages #2 market position overall in attractive $32 billion industry segment with few dominant players One of two global suppliers with full product portfolio for climate systems Balanced global product mix with unique strengths in
Slide 20: Global Climate Market Share and Trends
Denso Visteon Valeo Behr Delphi CK Sanden Modine Other East 0.227 0.124 0.117 0.091 0.068 0.049 0.039 0.022 0.263 Market Share - Global Climate Market(1) Key Market Trends (1) Source: Global Insight 2010. Strong Market Position, Attractive Industry Dynamics Global Climate Market Regulatory changes,
Slide 21: Key Product Offerings
Key Product Offerings #2 Overall Player in the Global Climate Automotive Industry Description 2010 Sales ($ in Mil)(1) VC Market Position Key Competitors Compressor Electric Variable swashplate Rotary suction swashplate Fixed scroll $400 #3 HVAC Compact Center mount Straight airflow path and flat Ba
Slide 22: Climate Technical Centers
Climate Technical Centers Global Engineering Coverage for Fast Customer Response and Quality Execution Juarez MEXICO Major Innovation Center Engineering (Applications, Simultaneous) Headcount Profile Low Cost High Cost 0.68 0.32 Kerpen GERMANY Daejeon SOUTH KOREA Hiroshima JAPAN Van Buren Twp, MI UN
Slide 23: Climate Manufacturing Locations
Climate Manufacturing Locations Unparalleled Low Cost Global Manufacturing Footprint Juarez (4 Plants) MEXICO Sao Paulo BRAZIL Quilmes ARGENTINA Belleville CANADA Shorter, AL UNITED STATES Rio Grande Port Elizabeth, SOUTH AFRICA Visteon Facilities JV Facilities Headcount Profile Low Cost High Cost 0
Slide 24: Visteon / HCC Relationship
Visteon / HCC Relationship Climate President Global Growth Customers Traditional HCC Customers Traditional Visteon Customers Functional Efficiencies Engineering Manufacturing Purchasing Leveraging Strengths One Climate Visteon / HCC Operations 70% Ownership since 1986 30% publicly held through the K
Slide 25: Climate Asia Pacific Market Leadership
Denso Visteon Calsonic Kansei Valeo Delphi Behr Sanden Doowon Other East 26 14 6 5 4 4 4 3 33 Climate Asia Pacific Market Leadership Asia Pacific market leader - clearly positioned as #2 17 manufacturing sites Fully-integrated global operations Established partnerships Mazda/Panasonic Japan Climate
Slide 26: Climate Emerging Market Strength
BRAZIL Long standing presence in Brazil and Argentina with potential to expand RUSSIA Growing manufacturing presence in Russia to support Ford, Hyundai, and other OEMs, resulting in strong growth and a leading market position INDIA Strong # 2 position with full range of climate products. Manufacturi
Slide 27: Key Climate Platforms
Key Climate Platforms Hyundai Sonata $250 million N. America, Asia Pacific Hyundai Elantra/Avante $250 million Asia Pacific, N. America Ford Focus $240 million Europe, Asia Pacific, S. America, N. America Ford Fiesta $190 million Europe, S. America, Asia Pacific, North America Hyundai i30 $160 milli
Slide 28: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization N. America Europe Asia Pacific S. America East 67 73 90 75 Capacity Utilization Remains Strong with Global Standardization and Flexibility Capacity Utilization by Region (%) 2010 Capital Expenditures ($M) 2010 Full Year 2010 Full Year 2010 Full Year Total
Slide 29: Market Trends Driving Opportunities for Advanced Technology
Page 29 Technology Drivers Green Electric and hybrid vehicle systems and components Alternate refrigerant systems, low global warming potential Renewable and recyclable materials, emission reduction Efficiency Fuel efficiency Components, systems Control strategies Smaller and Lighter Compact design
Slide 30: Electrification Contribution to Climate Market
Electrification Contribution to Climate Market Contribution of Added Content to Climate Market 0.182954000000021 0.626087055000071 0.915658678509169 0.342658500000039 1.06061125000012 1.58955901335018 Market ($B) 2 1 0 2020 2.5 0.9 1.6 2015 1.7 0.6 1.1 2010 0.5 0.2 0.3 3 Electric Compressor Heat Exc
Slide 31: Climate Production-Ready Technologies
Climate Production-Ready Technologies Production Ready Macro Trend Addressed e-Compressor* 2010 Battery Chiller and Contact Heat Exchanger 2011 Cold Storage Evaporator 2011 Metal Seal Fitting (MSF) 2011 Straight Airflow Path (SAP) HVAC 2011 U-Flow Exhaust Gas Recirculation (EGR) 2012 Green Efficienc
Slide 32: Climate Technology Pipeline
2013 2014 2015 2016 2017 2018 2020 Production Ready V-Flow A/C and Heat Pump for HEV and EV* Thermo Electric Distributed Heating and Cooling* Climate Technology Pipeline Exhaust Heat Recovery System High Efficiency A/C System for EV* * Governmental funding High Voltage, Stacked Cooling Module for Fu
Slide 33: Innovation Revenue From Advanced Technology
Innovation Revenue From Advanced Technology Highlights/Advantages Efficient Advanced Technology Development Driving Innovative Solutions Advanced Technology Commercialization Intellectual Property Globally aligned, market focused advanced technology development Strong vehicle and system level unders
Slide 34: Global Climate Market Share Objective
Denso Visteon Valeo Behr Delphi CK Sanden Modine Other East 0.227 0.124 0.117 0.091 0.068 0.049 0.039 0.022 0.263 Global Climate Market Share Objective (1) Source: Global Insight 2010. All Other Visteon East 0.86 0.16 All Other 86% 2010 Market Share(1) 2014 Target Market Share Visteon 12.4% Denso 22
Slide 35: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective Focused on Driving 12%+ Gross Margins by 2014 2010 Volume/Mix Performance Perimeter Net Efficiencies 2014E 8.02 13.7 2010 Actual 2014 Objective Profitable Growth Volume Growth Low Cost Footprint 10.2% 12%+ Halla Synergies Standardization Economies of s
Slide 36: Climate Summary
Climate Summary Key Strengths Strong market position - #2 globally Attractive industry dynamics - few large players Low cost, global footprint Strong relationship with strategic customers Technology for electrified vehicles and new regulations
Slide 37: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 38: View lighting video
View lighting video at http://www.visteon.com/media/multimedia/lighting_video.html
Slide 39: Lighting Operations
Investor Day Lighting Operations Jeff Stevenson General Manager, Global Lighting Page 39
Slide 40: Lighting Product Line
Lighting Product Line Lighting Product Line Products Highlights #6 market position overall in rapidly growing $9.5 billion industry segment Full product portfolio for exterior lighting systems, including projector and electronics manufacturing Balanced global product mix with low cost engineering an
Slide 41: Global Lighting Market Share and Trends
Market Share - Global Lighting Market Key Market Trends Source: Global Insight 2010. Increasing Revenue Per Vehicle Global Lighting Market Koito Valeo AL Hella Stanley Visteon Samlip Ichiko Decoma ACH Other 2010 MS 0.16 0.15 0.14 0.11 0.1 0.05 0.04 0.04 0.03 0.03 0.15 Koito 16% Visteon 6% Valeo 15%
Slide 42: Lighting Technical Centers
Lighting Technical Centers 7 Global Technical Centers Van Buren Twp, MI UNITED STATES Chennai INDIA Changzhou CHINA Kerpen GERMANY Novy Ji^in CZECH REPUBLIC Pune INDIA Monterrey MEXICO Headcount Profile Low Cost High Cost 0.89 0.11
Slide 43: Lighting Manufacturing Locations
Lighting Manufacturing Locations 7 Manufacturing Sites Including 2 Non-consolidated Monterrey MEXICO Pune INDIA Changzhou CHINA (2 sites) Novy Ji^in CZECH REPUBLIC (2 sites) Rychvald CZECH REPUBLIC Chongqing CHINA Future Site in 2012 Headcount Profile Low Cost High Cost 1 0
Slide 44: Lighting Product Line Offerings
Lighting Product Line Offerings Description 2010 Sales(1) (2) ($ in Mil) Key Competitors Front Lighting Systems Front Lighting Systems Products include high-tech LED, High-Intensity Discharge (HID) and halogen based head lamps ranging from static positioning to full adaptive forward lighting which c
Slide 45: Key Lighting Platforms
Key Lighting Platforms Key Platforms Represent 44% of 2010 Lighting Product Sales Ford Focus $59 million Europe / S. America / Asia Pacific Ford Mondeo $32 million Europe / Asia Pacific Cadillac CTS $31 million N. America Chevrolet Malibu $27 million N. America Chevrolet Camaro $20 million N. Americ
Slide 46: Lighting Value Proposition
Lighting Value Proposition Key Growth Opportunities OEMs need support in major and emerging markets Increased styling demands on lighting products from OEMs Safety Legislation continues to challenge lighting output and control Low Cost Global Footprint Affordable Technology Delivering the latest tec
Slide 47: 2014 Target Market Share Global Lighting Market
2014 Target Market Share Global Lighting Market Source: Global Insight 2010. Global Lighting Market 2010 Market Share 2014 Target Market Share Koito Valeo AL Hella Stanley Visteon Samlip Ichiko Decoma ACH Other 2010 MS 0.16 0.15 0.14 0.11 0.1 0.06 0.04 0.04 0.03 0.03 0.13 Koito 16% Visteon 6% Valeo
Slide 48: Near-Term Technology Pipeline
Near-Term Technology Pipeline Production Ready Macro Trend Addressed Innovative Light Guide Rear Lamp 2011 LED Daytime Running Lamp Signature 2012 Adaptive Front Lighting System (AFS) 2010 LED Headlamp 2013 Glare Free High Beam 2014 Fuel Efficiency Safety Safety Safety Safety Styling & Functionality
Slide 49: Lighting Emerging Technologies Timeline
Page 49 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Start of Production Glare Free High Beam LED HL (High Beam) AFS with LED Contributors Thin Profile OLED Rear Lamps Emerging Technologies Full LED Headlamp with Glare Free High Beam Affordable LED Head Lamp Matrix LED Head Lamp Automatic
Slide 50: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization N. America Europe Asia Pacific East 75 88 85 High Utilization Rates, Resulting in Lower Cost Per Unit Footprint Capacity Utilization by Region (%) 2011 Capital Expenditures ($M) 2010 Full Year 2010 Full Year 2010 Full Year Total Spend % of Total Maintenan
Slide 51: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective Focused on Driving 6%+ Gross Margins by 2014 2010 Volume/Mix Performance Perimeter Net Efficiencies 2014E 8.02 13.7 2010 Actual 2014 Objective New Business Wins 2.6% 6.5% Vertical Integration New Technology and Added Content Commodity Cost Pressure
Slide 52: Lighting Summary
Lighting Summary Key Strengths Major product technology trends, strong revenue growth Attractive global footprint Full Product Line portfolio Low cost product development 100% of all manufacturing in low-cost regions
Slide 53: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 54: View electronics video
View electronics video at http://www.visteon.com/media/multimedia/electronics_video.html
Slide 55: Electronics Operations
Investor Day Electronics Operations Steve Meszaros Product Group President Page 55
Slide 56: Electronics Product Group
Page 56 Electronics Product Group Highlights / Advantages Complete coverage of mature and emerging markets with efficient, scaled operations Integrated global capability leveraging low cost development centers Cost-effective platform-driven approach to audio and cluster portfolio Total Electronics P
Slide 57: Key Market Trends
Page 57 Key Market Trends Attractive Industry Dynamics with Significant Growth Potential Global Electronics Market * Includes unconsolidated operations Conti Denso Harman Alpine Visteon Panasonic Delphi Bosch Pioneer Other East 17 10 8 7 6 5 5 4 4 34 Stronger links to consumer electronics Consumer e
Slide 58: Primary Product Offerings
Page 58 Primary Product Offerings #5 Overall Player in the Global Cockpit Electronics Automotive Industry Description 2010 Total Sales ($ in Mil) VC Market Position Key Competitors Audio and Infotainment Solutions for in-car audio, entertainment and information including navigation $580 #5 Instrumen
Slide 59: Electronics Technical Centers
Page 59 Electronics Technical Centers 4 Global Technical Centers 10 Regional Customer Centers Chihuahua MEXICO Sao Paulo BRAZIL Palmela PORTUGAL Yokohama Hiroshima JAPAN Kerpen GERMANY Seoul S KOREA Paris S. Antipolis FRANCE Xuzhou CHINA Van Buren Twp, MI UNITED STATES Chelmsford ENGLAND Chennai IND
Slide 60: Electronics Manufacturing Locations
Page 60 Electronics Manufacturing Locations Chihuahua (2) MEXICO Manaus BRAZIL Chennai INDIA Hiroshima JAPAN Rayong THAILAND Seoul S. KOREA Vladimir RUSSIA Cadiz SPAIN Shaoxing CHINA Xuzhou CHINA Palmela PORTUGAL Chongqing (2) CHINA Szekesfehervar HUNGARY Shanghai CHINA Changchun CHINA 18 Manufactur
Slide 61: Electronics Emerging Market Strength
Electronics Emerging Market Strength BRAZIL Long-term market presence. Expanding Manaus plant manufacturing capability, product portfolio and customer base, including entry in 2-wheeler market. RUSSIA Launched Visteon Avtopribor JV in Vladimir in 2010 to meet anticipated market growth opportunity ac
Slide 62: YFV: Integral Part of Visteon's Global Electronics Business
YFVE: An Integral Part of Visteon's Global Electronics Business China market leader #1 in audio, #3 in clusters Fully integrated with Visteon's global operations 70% Visteon ownership (40% direct, 30% indirect) Integrated commercial engagement with global customers Shared advanced engineering and pl
Slide 63: Key Platforms
Page 63 Key Platforms Ford Focus, C-Max $274 million Europe, Asia Pacific, N. America Ford Fiesta $118 million Europe, Asia Pacific, N. America, S. America Ford Mondeo, S-Max $ 88 million Europe Nissan Cross Car Connectivity $ 79 million N. America, Asia Pacific Ford Transit $ 52 million Europe Ford
Slide 64: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capacity Utilization by Region (%) 2011 Capital Expenditures ($M) Consolidated 2010 Full Year 2010 Full Year 2010 Full Year Total Spend % of Total New Program $9 38% Cost Saving/Other $7 32% Modernization $7 30% Total $23 100% N.America Europe Asia Pacifi
Slide 65: Electronics Portfolio Evolution
Electronics Portfolio Evolution "All Products to All Customers" -- Not Feasible Long-Term -- All Electronic Products to One Customer Customer Diversification Product and Market Alignment Focused on Audio/Infotainment & Driver Information Product Segments
Slide 66: Electronics Value Proposition
Electronics Value Proposition Key Growth Opportunities OEMs need support in key growth markets Increasing consumer demand for low and mid-level infotainment solutions Leverage local and low-cost export opportunities in support of global OEMs Core Technical Competencies Global Excellence Key strength
Slide 67: 2014 Target Market Share Cockpit Electronics
xx Visteon All Others East 0.41 0.07 0.52 Page 67 2014 Target Market Share Global Cockpit Electronics Market (1) Source: Visteon Marketing analysis Global Cockpit Electronics Market 2010 Market Share (1) 2014 Target Market Share * Shares include unconsolidated operations Visteon's Cockpit Electronic
Slide 68: Electronics Technology Pipeline
Page 68 Electronics Technology Pipeline Production Ready Macro Trend Addressed Next Generation Audio Platforms 2011-2012 Increased connectivity and alternative media offerings Low / Mid Infotainment Platform 2012-2014 Cost-effective infotainment solutions for emerging markets and entry-level mature
Slide 69: Gross Margin Objective
Page 69 Gross Margin Objective 2010 vs. 2014E Objective Focused on Exceeding 10% Gross Margin by 2014 2010 Volume/Mix Performance Perimeter Net Efficiencies 2014E 8.02 13.7 2010 Actual 2014 Objective Cockpit Electronics Growth 8% 10%+ Net Cost Performance Restructuring Vehicle Electronics Exit
Slide 70: Electronics Summary
Electronics Summary Key Strengths Complete coverage of mature and emerging markets with efficient, scaled operations Integrated global development capability leveraging low-cost development centers Cost-effective platform-driven approach to product portfolio
Slide 71: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 72: View interiors video
View interiors video at http://www.visteon.com/media/multimedia/interiors_video.html
Slide 73: Interiors Operations
Investor Day Interiors Operations Pierre Boulet General Manager, Interiors Europe and South America Page 73
Slide 74: Interiors Product Group
Interiors Product Group VW GM Hyundai Renault Nissan PSA COEMs Ford Other 0.26 0.12 0.12 0.12 0.1 0.09 0.09 0.1 AP EU SA NA 0.71 0.22 0.05 0.02 Products and Market Positions Highlights / Advantages #2 global market position in a ~$43 billion industry segment Balanced global customer mix with strengt
Slide 75: Interiors Market Share and Key Trends
Faurecia (incl. SAS) Visteon (incl. YFV/DFV) Mobis JCI IAC CK Magna Hanil Kasai Others Interiors 0.21 0.12 0.1 0.07 0.07 0.05 0.05 0.02 0.02 0.3 Faurecia SAS Visteon YFV/DFV Market Share - Interiors Market Key Market Trends Dynamic Global Landscape Creating New Opportunities Global Interiors Market
Slide 76: Product Offerings
Product Offerings #2 Player in the Global Interiors Automotive Industry Description 2010 Sales ($ in Mil) VC Market Position Key Competitors Instrument Panels and Consoles Hard and soft instrument panels Plastic mechanisms Sliding and fixed consoles $1.8B #2 Door Panels and Interior Trim Hard and so
Slide 77: Interiors Engineering Centers
Harrison Twp, MI. USA (YFV) Rayong THAILAND Yokohama JAPAN Harnes FRANCE Berlin GERMANY Shanghai (3)/ Wuhan CHINA (YFV/DFV) Seoul/Ulsan KOREA (DY/VIK) Chennai/ Pune INDIA Sao Paulo BRAZIL 2 Global Technical Centers 12 Regional Customer Centers Interiors Engineering Centers Global Development Centers
Slide 78: Interiors Manufacturing Locations
42 Manufacturing Sites 13 JIT Assembly Sites Interiors Manufacturing Locations Leading Manufacturing Presence in Europe and Asia MEXICO US (2) (YFV) BRAZIL (2) ARGENTINA INDIA (2) UK (2) (R-Tek) FRANCE (4) SLOVAKIA GERMANY SPAIN (4) POLAND RUSSIA BELGIUM MOROCCO (under construction) CROATIA (partner
Slide 79: Interiors Emerging Market Strength
Interiors Emerging Market Strength BRAZIL #3 market player with improving operational performance and expanding customer base including Ford, VW, GM, PSA, Honda RUSSIA Launched first operation (wholly-owned) in Kaluga to support VW and Renault. Additional growth opportunities with PSA, GM and Nissan
Slide 80: Yanfeng Visteon Interiors (YFV)
Working Together to Support Global Customer Growth China market leader #1 in instrument panels, door panels and consoles A key element of Visteon's ability to serve global customers 50/50 Visteon/HASCO (SAIC) ownership Shared advanced engineering and platform development for global customers Aligned
Slide 81: Key Interiors Platforms (2010)
Key Interiors Platforms (2010) Including Cockpit Revenues* VW Lavida $304 M Asia Pacific Hyundai Avante $232 M Asia Pacific VW Polo $204 M Asia Pacific, Europe Nissan Frontier/Navarra $184 M Europe, Asia Pacific Skoda Octavia $172 M Asia Pacific Ford Focus/C-Max/Kuga $168 M Europe, Asia Pacific, S.
Slide 82: Capital Expenditure and Capacity Utilization
Capital Expenditure and Capacity Utilization Capacity Utilization by Region (%) 2011 Capital Expenditures ($M) (Consolidated) N. America Europe Asia Pacific S. America East 80 74 90 90 2010 Full Year 2010 Full Year 2010 Full Year Total Spend % of Total Modernization $3 10% New Programs/ Capacity $29
Slide 83: Interiors Strategy
Interiors Strategy Leverage Visteon - Yanfeng Visteon synergies to support global OEM programs, innovation projects and purchasing savings Improve manufacturing and engineering footprints via restructuring in HCC and continued investments in LCC to maintain leadership in BRIC markets Increase consum
Slide 84: Interiors Technologies
Interiors Technologies 2010 2015 Styling Craftsmanship Differentiation Personalization "Green" Technologies Lower Weight Recyclable Cost Reduction Process Improvement Alternative resins Hybrid TM Natural Fibers & Injection VIEPP TM Bondtek TM VLRTM Leather foam-in-place Injected skins Thin wall inje
Slide 85: 2014 Target Market Share Global Interiors Market
Faurecia (incl. SAS) Visteon (incl. YFV/DFV) Mobis JCI IAC CK Magna Hanil Kasai Others Interiors 0.21 0.12 0.1 0.07 0.07 0.05 0.05 0.02 0.02 0.3 Faurecia SAS Visteon YFV/DFV 2014 Target Market Share All Other Visteon (incl. YFV/DFV) East 0.87 0.13 Source: CSM Database July 2011 2011 Market Share 201
Slide 86: Gross Margin Objective
Gross Margin Objective 2010 vs. 2014E Objective Focused on Improving Interiors Gross Margin to Better Than 8% by 2014 2010 Volume/Mix Performance Perimeter Net Efficiencies 2014E 8.02 13.7 2010 Actual 2014 Objective New Programs 6% 8%+ Net Cost Performance Restructuring Input Costs
Slide 87: Summary Key Strengths
Summary Key Strengths #2 market position in a ~$43 billion industry segment Balanced global customer mix with strengths in key markets (#1 in Asia, #2 in Europe, #3 in South America) A leading player in all BRIC markets well positioned to support industry growth
Slide 88: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 89: Visteon Corporation Investor Day July 27, 2011
Visteon Corporation Investor Day July 27, 2011
Slide 90: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 91: Yanfeng Visteon
Investor Day Yanfeng Visteon Bob Pyle General Manager YFV Page 91
Slide 92: SAIC Organization and Structure - Present
State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government 100% Functional parts Interior and exterior trim Electric and electronics Hot worked parts Metal forming and tooling New energy ^^?^ Service & Trade ^^^? other ^^^? SAIC Motor (78.94%) ^^^? HASCO (60.1%) ^^
Slide 93: SAIC Organization and Structure - Proposed
State-owned Assets Supervision and Administration Commission of Shanghai Municipal Government 100% ^^?^ Service & Trade ^^^? other ^^^? HASCO (60.1%) Sales Logistics IT Car Rental Financing SAIC Organization and Structure -- Proposed ^ ^ ^ ? SAIC Motor SAIC Motor "pulled up" for direct ownership rep
Slide 94: SAIC Vehicle Companies
SAIC Vehicle Companies ^ ^ ^ ? SAIC Motor 50% 51% 100% Key light vehicle activities: 50.1% SAIC Group a strong parent to support the growth of HASCO The largest vehicle producer in China Significant own brand activities (e.g. Roewe) 2010 China Vehicle Market Share by OEM-Group ^^?^BeiQiGroup ?^?^Cha
Slide 95: Yanfeng Visteon Organization
Yanfeng Visteon Organization Dongfeng Visteon YFV Beijing 2002 YFV Jinqiao 2006 75% YFV Chongqing 99% 2001 2003 YFV Hefei 2007 80% 80% 2007 50% YFV Tooling 2006 60% 2002 1997 50% 50% 2004 75% 40% YFV Nanjing YFV NJ FEM YFV Runda YFV is 50:50 Joint Venture between Visteon and HASCO (SAIC) Technology
Slide 96: Five Business Systems
Five Business Systems Cockpit Instrument Panels Door Panels Console Interior System Driver Information Entertainment Controls Electronics System Seats Trim Covers Mechanisms Foam Pads Seating System Bumpers Body Trim Rear Closures Fenders Exterior System Steering Wheels Air Bags Seat Belts Safety Sy
Slide 97: Market and Sales Summary
6 Major Groups Independent Enterprises GZ Toyota SGM DF Nissan BJ Hyundai CA Suzuki FAW-Car SGMW DF Honda FAW-Toyota FAW Tianjin Haima DF YD Kia SAC GZ Honda SVW DPCA CA Ford FAW-VW BBAC Dongfeng BAIC Chang'an FAW SAIC GAIC Geely Volvo JAC CA Mazda BAIC Chang'an CA PSA GAC GQ FIAT BQ FOTON Brillianc
Slide 98: 2010 Revenue Product Diversity
2010 Revenue Product Diversity Seating 38% Interiors 45% Electronics 8% Exterior 5% Safety 3% Tooling 1% Total Revenue $5.3 Billion (Includes Tier 1 Unconsolidated Subsidiaries)
Slide 99: China Market Share
China Market Share #1 Seats Instrument Panels Door Panels Audio Consoles Steering Wheels #2 Bumpers #3 Clusters Market-Leading Positions in Multiple Products
Slide 100: YFV Global Presence
Exteriors Interiors Seating Electronics Safety Business System Symbol Facilities Total Tooling 27 10 35 6 1 1 80 Changchun Xuzhou Shaoxing Wuhan Shi'yan Guangzhou Yancheng Liuzhou Shanghai Beijing Shenyang Yantai Yizheng Wuhu Hefei Nanjing Taizhou Nantong Fuzhou Chongqing Chengdu Baotou Baoding Harr
Slide 101: Export Business
Export Markets Products Customers Interior System Electronics System Seating System Safety System Export Sales RMB in Billions USD $473 M Supporting Global Customers through Superior Products and Value Export Business
Slide 102: Design Studio
Q-e Concept Phoenix Concept Unique Capability to Perform Styling, Design, and Engineering of Interior/Exterior/Electronic Parts for our Customers Design Studio
Slide 103: Technical Center Capability
Full Service Supplier (from Styling to Production) System Integration World Class Testing Facilities Globally Integrated Technical Centers Safety Testing Acoustic and NVH Testing Full Design and Engineering Capability Advanced Application Software World Class Testing Facilities Structure Design CAE
Slide 104: Customer Recognition
2010 Best Performance Award 2010 Excellent Supplier Award 2010 Best Cooperation Award 2010 Technology Innovation Award 2010 Best Supplier of Dongfeng Motor 2010 Excellent Supplier Award 2010 Excellent Localization Award 2010 Excellent Launch Award (Grand Cherokee and Durango Programs) Customer Recog
Slide 105: Historical Growth
RMB in Billions 30% Compound Annual Growth Rate USD $4.7 B Historical Growth Successful Partnerships and Products Fuel Strong Growth
Slide 106: Strategic Initiatives
Strategic Initiatives Expand customer base with local China OEMs. Continued diversification with select Chinese (and Japanese) OEMs Support OEM's growth plans in China and abroad via cooperation with Visteon and other partners Explore new business segments / product offerings with a focus on "Green"
Slide 107: Global Cooperation Initiatives
Global Radio - Electronics Global GM - D2XX Program - Interiors Global Sourcing Summary GM Halol (CN100/N200) VC Pune Plant Indian JV GM Talegaon (S2) Products IP DP Console Important and growing trend among OEMs China OEMs increasingly looking to globalize; will need key supplier partners Trend pro
Slide 108: Equity in Net Income of Non-Consolidated Affiliates
Equity in Net Income of Non-Consolidated Affiliates Visteon's non-consolidated joint ventures' performance significantly increased in Q1 2011 Q1 2011 equity income of $44 million $14 million Y/Y improvement - 47% Yanfeng Visteon Automotive Trim Systems ("YFV") and subsidiaries Q1 2011 performance to
Slide 109: Summary
Page 109 Summary Resources Great partners, dedicated employees, and superior products provide foundation to be the best automotive product supplier in the world Differentiation Full-capability technical centers for each business, along with unique design center, promote innovation and creativity tha
Slide 110: Today's Agenda
Today's Agenda Welcome/Introductions Bill Quigley, Executive Vice President and CFO Visteon Overview Don Stebbins, Chairman, CEO and President Climate Operations Joy Greenway, Product Group President Lighting Operations Jeff Stevenson, General Manager, Global Lighting Electronics Operations Steve Me
Slide 111: Panel Q&A
Investor Day Panel Q&A Michael Lewis Vice President and Treasurer Director, Investor Relations Page 111
Slide 112: Additional Q&A Panelists
Bob Pallash Global Customer Group President Investor Day Additional Q&A Panelists Tim Yerdon Global Director, Innovation and Design Page 112
Slide 113: Q&A
Q&A Page 113
Slide 114: Moving Forward
Moving Forward Invest in those product segments where we believe we can achieve market leadership and competitive differentiation to drive above market returns For product segments and assets that do not meet these criteria, we will seek to maximize value on a thoughtful and disciplined basis Fortif
Slide 115: www.visteon.com
www.visteon.com
Slide 116: Financial Disclosures
Financial Disclosures
Slide 117: Forward-Looking Statements
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 uncertainties that could cause our a
Slide 118: Use of Non-GAAP Financial Information
Throughout this presentation, the Company has provided information regarding certain non-GAAP financial measures. These measures include "free cash flow" and "Adjusted EBITDA." Free cash flow represents cash flow from operating activities less capital expenditures. Adjusted EBITDA represents net inc
Slide 119: Adjusted EBITDA Reconciliation 2005, 2010
Adjusted EBITDA Reconciliation 2005, 2010
Slide 120: www.visteon.com
www.visteon.com