Visteon Corporation · NASDAQ:VC
Visteon — Deutsche Bank/Wolfe Global Auto Industry Conference January 2019
27 slides from Visteon's conference presentation, Jan 15, 2019
Slide 1: Deutsche Bank/Wolfe Global Auto Industry Conference January 2019
Deutsche Bank/Wolfe Global Auto Industry Conference January 2019 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: The Transformation of Visteon
The Transformation of Visteon Sum of Parts 2012 Cockpit Electronics Pure Play 2015 Smart Digital Mobile Assistant 2018 Exited non-core business to focus on cockpit electronics Acquired JCI auto electronics Streamlined cockpit electronics products and technologies Launched cockpit domain controller I
Slide 4: Addressing Macro Trends in Automotive
Addressing Macro Trends in Automotive Analog to Digital Market share leader in digital clusters with $2.8B new business wins in 2018 Device & Cloud Connectivity Electric Vehicles ADAS to Autonomous Won $2.3B in new business awards in infotainment in 2018 Leader in cockpit domain controller solutions
Slide 5: Diversified Growth of New Business
Diversified Growth of New Business (Dollars in billions) $4.3B $5.4B $7.0B $6.9B Other Displays Audio Infotainment Other Clusters Digital Clusters $15.2B $21.5B Improved customer and regional diversification New business win growth driven by new digital products Order Backlog by Customer (1) New Bus
Slide 6: Continued Strength in China
Continued Strength in China Visteon China Domestic Sales New Business Wins 12/31/2018 Backlog (1) 6% Y/Y increase in sales driven by product launches $1.1B $2.0B Other Displays Audio Infotainment Other Clusters Digital Clusters New business wins nearly doubled Y/Y Well-positioned with China’s fastes
Slide 7: Cockpit of the Future
Cockpit of the Future Connected Access to cloud data and services Hybrid cloud/edge computing Learning Machine learning based solutions Improved voice and identification features Voice Enabled Conversational cockpit assistant Natural language voice interaction Fully Digital Large, curved digital dis
Slide 8: Visteon Technology Portfolio
Cockpit Domain Controllers Visteon Technology Portfolio Connected Infotainment Autonomous Domain Controllers Next-Gen Cockpit Displays Artificial Intelligence for Cockpit sensor-ux Scalable open autonomous driving solution for Level 2-4 systems Leading cockpit domain controller solution in industry
Slide 9: Display and HMI Innovations
Display and HMI Innovations Glass Lens Camera Backlight Rear Cover LCD Touch Panel Backlight LCD Exploded View Sensor-UX Display Large, Curved, Non-Rectangular & Sensor Integration Handwriting recognition Biometric fingerprint recognition Proximity sensing ~$4 billion market with 16% CAGR from 2018-
Slide 10: Artificial Intelligence for Automotive Cockpit
Artificial Intelligence for Automotive Cockpit Driver Monitoring Voice Assistant Voice recognition and Image Detection based on machine learning approaching human performance Driver Monitoring and In-Cabin Sensing are emerging key safety features Natural language interaction with cockpit systems for
Slide 11: Global Industry Production Outlook
Global Industry Production Outlook Expect growth to continue after 2018 / 2019 transition years 2018 / 2019 Transition Years for the Industry (Units in millions) Emerging market growth largely driven by China, India and Southeast Asia. N. America Europe China Period of Industry Transition Industry G
Slide 12: Looking Through the Cycle
Looking Through the Cycle Long-term fundamentals remain intact # of New Customer Programs Lifetime Revenue ($ in billions) Added 5 New OEMS (Toyota, GAC, Great Wall, Jiangling, Royal Enfield) Supporting larger # of customer programs… …with increased overall value… Autonomous Domain Controllers Next-
Slide 13: Visteon 5-Year Business Plan
Visteon 5-Year Business Plan Sales Original 2021 target of $4.7 billion in sales with 14% margin pushed out by two years (Dollars in billions) Volumes New Business Adjustments Business Plan Assumptions $6.5 billion in new wins per year Includes potential backlog adjustments for OEM product revisions
Slide 14: Capital Deployment Strategy and Financial Guidance
Capital Deployment Strategy and Financial Guidance Deutsche Bank/Wolfe Global Auto Industry Conference
Slide 15: History of Capital Returns
History of Capital Returns Over $4 billion of capital returns since 2012 (Dollars in millions) Remaining repurchase authorization of $400 million to be executed $2,236 Includes $50M buyback in Q4 Net Cash (1) Debt / EBITDA (1) $442 million cash $380 million debt 1.1x Strong Capital Structure $500 (1
Slide 16: EBITDA Margin Walk
EBITDA Margin Walk ~10.9% (40) bps ~10.0% ~14% Margin Guidance 2018 vs. 2019 Path Forward 2023 Guidance Fixed cost leverage Optimized footprint Platform-based technologies Increased customer activity Incremental technology investments (20) bps (20) bps (10) bps ~5% growth in engineering costs from 2
Slide 17: 2019 Guidance
2019 Guidance Sales Adj. EBITDA Adj. FCF FY 2018 Guidance $315-335 $60-80 FY 2019 Guidance $2,900-3,000 $280-310 $80-100 (~10.0% margin) 9.7% - 10.3% (Dollars in millions) $2,970-2,980 $320-330 $90-100 (~10.9% margin) 10.8% - 11.1%
Slide 18: Building the Foundation for Long-term Shareholder Value
Building the Foundation for Long-term Shareholder Value Technology transformation to smart digital mobile assistant Long-term growth and margin expansion Return enhancement through capital deployment
Slide 19: Appendix
Appendix Deutsche Bank/Wolfe Global Auto Industry Conference
Slide 20: 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 21: 2018 and 2019 Guidance Reconciliation Adjusted EBITDA
2018 and 2019 Guidance Reconciliation Adjusted EBITDA
Slide 22: 2018 and 2019 Guidance Reconciliation (cont'd)
2018 and 2019 Guidance Reconciliation (cont’d) Free Cash Flow and Adjusted Free Cash Flow
Slide 23: 2019 Exchange Rate Assumptions
2019 Exchange Rate Assumptions 2019 FY Impact of Movements in FX Rates (2) Key Exchange Rate Assumptions (1) Euro assumed at $1.18 in 2020-2023. (2) Excluding hedges. (1)
Slide 24: Audio / Infotainment Market
Audio / Infotainment Market Infotainment Migration to Android based systems Audio replaced by Display Audio Bigger / multiple displays High interest in hybrid solutions for voice and navigation From Voice Assistants to Smart Assistants Market Growth Rate Visteon’s Market Position CAGR 4.3% Visteon 5
Slide 25: Instrument Cluster Market
Instrument Cluster Market Instrument Clusters 2018-2023 market CAGR of 9.5% for revenue Hybrid (Analog-Digital) remains largest segment – volume and revenue growing at 5% and 8%, respectively Digital segment maintains growth leadership – 25% CAGR both on revenue and volume All-Digital Cluster price
Slide 26: Center Information Display Market
Center Information Display Market Source: Visteon estimates. Information Display Visteon’s Market Position Visteon 12% 2018 $4.4B Integrated digital cockpit trend is driving demand for multiple large displays Next generation of cockpit displays are curved, non-rectangular, and large Newer displays t
Slide 27: Visteon’
Visteon’ WAL RAA a
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