Visteon Corporation · NASDAQ:VC
Visteon — Deutsche Bank Global Auto Industry Conference 2017
30 slides from Visteon's conference presentation, Jan 10, 2017
Slide 1: Deutsche Bank Global Auto Industry Conference
Deutsche Bank Global Auto Industry Conference January 10, 2017 Exhibit 99.1
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: Visteon today and shareholder value creation
Visteon today and shareholder value creation A global leader in automotive cockpit electronics delivering a rich, connected cockpit experience for all cars from luxury to entry segment Manufacturing locations 22 10,000 Employees 18 Countries Technical centers 18 $3.1B Annual sales (Electronics) Comp
Slide 4: Broadest cockpit electronics portfolio in the industry
Broadest cockpit electronics portfolio in the industry The only pure-play cockpit electronics supplier in the industry Global market share leader across multiple products Debuted the first internet app infotainment platform at CES 2017 First to market with cockpit domain controller Instrument cluste
Slide 5: Strategic imperatives communicated at 2016 DB Conference: status update
Strategic imperatives communicated at 2016 DB Conference Status update Focused and disciplined execution of strategy is accelerating positive results Strengthen the Core Move Selectively to Adjacent Products Deliver Cost Efficiencies Build organization with exceptional talent across variety of disci
Slide 6: Strong growth in China – the world's largest automotive market
Strong growth in China – the world’s largest automotive market Strong position in the world’s largest automotive market Visteon Domestic China Sales 20% sales CAGR in domestic sales from 2015-2017 2017 Drivers and Assumptions Domestic vehicle production volumes forecasted to grow at ~5% Continued sa
Slide 7: Delivering on technology roadmap
Delivering on technology roadmap 2015 Launched domain controller for cockpit 2017 Launched next-generation infotainment 2018 Launch autonomous driving domain controller platform More than 1,100 total visitors (by appointment only) Over 500 visitors, representing 45 vehicle manufacturers More than 10
Slide 8: Visteon 5-year business plan
Visteon 5-year business plan Sales CAGR of 9% outpacing industry production volume growth of 2.4% 16% CAGR (2019-21) 9% CAGR (2016-2021) Visteon Electronics Sales Business Plan Assumptions IHS global production volumes forecasted to grow at 2.4% CAGR from 2016-2021 (reduced from prior plan projectio
Slide 9: Record new business wins driven by technology leadership
Record new business wins driven by technology leadership Electronics only New business wins focused on faster growing markets (Dollars in billions) $5.4 billion consolidated new business wins 11% Increase $16.5 billion current backlog (lifetime) Note: Backlog represents cumulative remaining life-of-
Slide 10: Backlog provides solid foundation for five-year plan
Backlog provides solid foundation for five-year plan 2017-2021 percent sourced sales Note: Backlog represents cumulative remaining life-of-program booked sales. (1) Reflects estimated new business wins needed in 2017 and 2018 to achieve 5-year sales outlook. A portion of these wins would launch by 2
Slide 11: New technology offerings drive higher growth
New technology offerings drive higher growth Instrument clusters Head-up displays Information displays Entry infotainment SmartCore™ Telematics Autonomous driving Visteon Core Products New Offerings Visteon 2016-2021 CAGR vs. Market Phoenix™ infotainment
Slide 12: 2017 strategic imperatives
2017 strategic imperatives Strengthen Core Business Develop Level 3/4 Autonomous Driving Platform Accelerate China Business Deliver higher sales and improve margins to ~11.5% Drive new business wins to achieve combined ~$12 billion target for 2017/2018 Continued focus on operational excellence Achie
Slide 13: Capital Deployment Strategy and Financial Guidance
Capital Deployment Strategy and Financial Guidance Deutsche Bank Global Auto Industry Conference
Slide 14: $3.5 billion of capital returns to shareholders since 2012
$3.5 billion of capital returns to shareholders since 2012… …Committed to future shareholder distributions (Dollars and shares in millions) Represents the dollar weighted average of the average price of shares purchased during the period 2012 through 2015 (adjusted for $43.40 per share special distr
Slide 15: Full-year 2016 and 2017 guidance
Full-year 2016 and 2017 guidance Raising guidance for 2016 with continued margin improvement in 2017 (Electronics product group) FY 2016 Prior Guidance FY 2016 NEW Guidance Sales ~$3.1B ~$3.1B Adjusted EBITDA $325 - 335M $340 - 345M Adjusted EBITDA Margin 10.5% - 10.8% ~11% Adjusted free cash flow $
Slide 16: Reaching long-term margin objective faster than anticipated
Reaching long-term margin objective faster than anticipated Increasing margins through cost leverage and increased software content in new offerings Adjusted EBITDA margin (Electronics Product Group) Raising the company’s long-term Adjusted EBITDA Margin objective from 12% to 14% while investing in
Slide 17: Delivering shareholder value
Delivering shareholder value Long-Term Growth Through Technology Leadership Margin Expansion / Cash Flow Generation Return Enhancement Through Capital Deployment Revenues to grow to $4.7B in 2021 with current backlog and future business wins Leadership in next-gen infotainment and SmartCoreTM domain
Slide 18: Appendix
Appendix Deutsche Bank Global Auto Industry Conference
Slide 19: Use of non-GAAP financial information
Use of non-GAAP financial information Because not all companies use identical calculations, adjusted EBITDA, free cash flow and adjusted 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-looki
Slide 20: 2017 volume and exchange rate assumptions
2017 volume and exchange rate assumptions Global volumes forecasted to increase 1.3% in 2017 2017 full-year impact of movements in FX rates (3) Key exchange rate assumptions 2017 production volumes (1) (2) (1) Source: IHS November 2016 forecast. (2) As of January 9, 2017. (3) Excluding hedges.
Slide 21: 2017 vs. 2016 Y/Y drivers
2017 vs. 2016 Y/Y drivers Volume: IHS global volumes increase 1.3% in 2017 vs. 2016 Key Visteon customers forecasted to grow below overall market Net New Launches: solid net new product launches Currency: unfavorable impact of Chinese RMB and Euro Pricing: in-line with historical levels Volume / Mix
Slide 22: 2016 and 2017 guidance reconciliation
2016 and 2017 guidance reconciliation Adjusted EBITDA (Electronics Product Group)
Slide 23: 2016 and 2017 guidance reconciliation (cont'd)
2016 and 2017 guidance reconciliation (cont’d) Free Cash Flow and Adjusted Free Cash Flow (Electronics Product Group)
Slide 24: Instrument cluster market overview
Instrument cluster market overview Market Analysis Market Size Market Share (By Revenue) Significant increase on “ALL digital” design solutions Architectural changes to function oriented “Domain Controller” Sourcing models separating HW from SW providers Higher display performance (optical, resoluti
Slide 25: Center information display market overview
Center information display market overview Market Analysis Market Size Market Share (By Revenue) Consumer electronics experience drives demand in automotive (pleasure and aesthetics – OEM design studio/marketing key initiators for early engagement) Increase in Display functions (size, sensing, gestu
Slide 26: Head-up display market overview
Head-up display market overview Market Analysis Market Size Market Share (By Revenue) Strong market trend for wider HUD image Strong demand for Augmented Reality HUD from Premium pulled by Autonomous Driving WHUD maintains higher market shares but balanced by CHUD introductions for lower car segment
Slide 27: Audio market overview
Audio market overview Market Analysis Market Size Market Share (By Revenue) Audio market decline as revenue transitions to Entry Infotainment Commodity market with high cost-focus (product price & engineering bill) Does not include a color TFT display – therefore not a good solution for integrating
Slide 28: Infotainment market overview
Infotainment market overview Market Analysis Market Size Market Share (By Revenue) Largest revenue product line Moderate growth rate in Mid / High; large growth in Entry (volume and revenue) Mid/High grows by adding C/D segments; Entry as base Audio replacement Large number of infotainment suppliers
Slide 29: Telematics market overview
Telematics market overview Market Analysis Market Size Market Share (By Revenue) Increasing wireless complexity Multiple access & security needs Connected services (FOTA / Vehicle data services) High-speed vehicle networking (Ethernet) Increasing data volume and speeds European eCall regulation Reve
Slide 30: Visteon
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Visteon — Deutsche Bank Global Auto Industry Conference 2017 on 6ix