Slide 1: Visteon Q3 2024 Earnings
Visteon Q3 2024 Earnings October 24, 2024
Slide 2: Q3 2024 in Review
Q3 2024 in Review Net Sales Adjusted EBITDA Adjusted FCF $980 Million $119 Million $73 Million +6% Growth-over-Market(1) 12.1% Margin $229 Million Net Cash Adj. EBITDA and adj. FCF guidance(2) increased to reflect strong Q3 performance ROBUST GROWTH ACROSS STRONG CADENCE CONTINUING RECORD FINANCIAL
Slide 3: Q3 2024 Sales Highlights
Q3 2024 Sales Highlights GoM of +6% from strong performance in Americas and Rest of Asia partially offset by China Product Sales Highlights Regional GoM Highlights Americas Strong Performance in Digital Robust outgrowth driven by ramp up of recently launched Cockpit excluding China products in flat
Slide 4: High Number of New Product Launches in Q3
High Number of New Product Launches in Q3 Another quarter of strong execution with 30 new product launches Key Q3 2024 Model Launches YTD 2024 Highlights 71 New Product Launches Tata Punch Ford Bronco Sport Lynk & Co 01 Launches by Geography Infotainment & Display Digital Cluster & Audio Infotainmen
Slide 5: On Track to Achieve $6B+ New Business Wins for Full Year
On Track to Achieve $6B+ New Business Wins for Full Year Digital cockpit products more than offsetting weakness in electrification YTD Q3 2024 New Business Wins Key Q3 New Business Wins Electrification & Other Multi-Display Module Curved multi-display system for mass market vehicles in Europe for gl
Slide 6: Q4 and Full-Year Outlook
Q4 and Full-Year Outlook Forecasting year-over-year market outgrowth in all regions except China Americas Sales Growth Continues Double-digit growth-over-market driven by electrification and ramp up of recently launched products New Product Launches Offset Lower Vehicle Production in Europe Q3 produ
Slide 7: Track Record of Driving Growth in Challenging Industry Environment
Track Record of Driving Growth in Challenging Industry Environment Mid-Term Outlook • Modest industry vehicle production growth Semiconductor Shortages • SDV & Edge AI driven digital cockpit technologies COVID-19 China & EV Slowdown • Slow ramp up of electric vehicles 2019 2021 2023 2025 2027 2029 2
Slide 8: YTD 2024 Summary
YTD 2024 Summary Continued Momentum with Digital Cockpit Solutions Technology portfolio aligns with key trends, including connected car, digitalization, and electrification Continued Market Outperformance Delivered another quarter of growth-over-market relative to our customers’ vehicle production S
Slide 9: Q3 2024 Financial Results
Q3 2024 Financial Results October 24, 2024
Slide 10: Q3 2024 Financial Review
Q3 2024 Financial Review Strong quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $980 Million $119 Million $73 Million 6% Growth-over-Market(1) 12.1% Margin $229 Million Net Cash Strong demand with y/y sales increasing for Strong adj. EBITDA per
Slide 11: Q3 2024 Y/Y Financial Performance
Q3 2024 Y/Y Financial Performance Growth-over-market driven by robust demand for digital cockpit and electrification products (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA ($34) ($9) Vehicle Production Lower customer production was offset by growth-over-market of 6% $1,014 $980
Slide 12: Balance Sheet and Adjusted Free Cash Flow
Balance Sheet and Adjusted Free Cash Flow Strong cash generation and net cash position supports balanced capital allocation framework Balanced Capital Allocation YTD YTD (Dollars in millions) 2023 2024 Maintain current levels of capex(1) Adjusted EBITDA $317 $357 Capital to support continued growth
Slide 13: 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) Prior Revised Key Assumptions ▪ LVP decline of ~2% y/y; customer production down ~3% $3.85B – $3.95B $3.85B – $3.90B ▪ GoM driven by strong cadence of pr
Slide 14: 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 15: Earnings Q&A
Earnings Q&A October 24, 2024
Slide 16: Appendix
Visteon’ Appendix October 24, 2024
Slide 17: 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 18: 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 19: 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 stock-based compensation expense, intangibles amortization and other non-operating costs. 2023 2024 (Dollars in millions) Q1 Q2 Q3 Q4
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 expense, net interest expense, equity in net (income) / lo
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) 2023 2024 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $980 $2,927 Gross margin $110 $104 $143 $130 $487 $119 $147 $131 $397 Intangibles amortization — — — 1
Slide 24: Net Engineering
Net Engineering 2023 2024 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Engineering costs, net Engineering costs, gross ($83) ($91) ($79) ($77) ($330) ($83) ($81) ($80) ($244) Recoveries 27 29 25 39 120 23 31 33 87 Engineering costs, net ($56) ($62) ($54) ($38) ($210) ($60) ($50) ($47) ($
Slide 25: 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 Q3 YTD Income Statement Sales $967 $983 $1,014 $990 $3,954 $933 $1,014 $980 $2,927 Gross margin 110 104 143 130 487 119 147 131 397 SG&A 52 52 52 51 207 52 49 51 152 Net income / (loss) a
Slide 26: Visteon
Visteon