Visteon Corporation · NASDAQ:VC
Visteon — Deutsche Bank Global Auto Industry Conference 2018
35 slides from Visteon's conference presentation, Jan 16, 2018
Slide 1: Deutsche Bank Global Auto Industry Conference January 2018
Deutsche Bank Global Auto Industry Conference January 2018 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 Tier 1 supplier of automotive cockpit electronics and software delivering a rich, connected cockpit experience for all cars from luxury to entry segments ~$3.1B annual sales 10,000 employees 18 countries 22 manufacturing locations 18 technical centers Tot
Slide 4: Evolution Through Technology Leadership
Evolution Through Technology Leadership From Digital to Autonomous Cockpit Electronics Pure Play Sum of Parts 2012 2015 2018 Exited non-core business to focus on cockpit electronics Established global leadership in cockpit electronics technologies Introduced market-leading autonomous driving control
Slide 5: Transformation of Visteon in Cockpit Electronics
Transformation of Visteon in Cockpit Electronics Products and Technologies From custom products to platforms Innovation and technology leadership Valued technology partner for automotive OEMs Outperforming peers in largest automotive market Disciplined focus on quality and cost efficiencies Company
Slide 6: Approaching Best-in-Class Performance
Approaching Best-in-Class Performance Continued improvement in key financial metrics New Business Wins Adjusted EBITDA Margin China Domestic Sales (Dollars in billions) (Dollars in millions) ~$382 ~11.6% Return on Invested Capital * ROIC based on 9/30/2017 financials. ~17.1% ~$7.0 20% CAGR 28% CAGR
Slide 7: The Next Catalyst
The Next Catalyst From Digital to Autonomous Cockpit Electronics Pure Play Sum of Parts 2012 2015 2018 Exited non-core business to focus on cockpit electronics Established global leadership in cockpit electronics technologies Introduced market-leading autonomous driving controller
Slide 8: Cockpit and ADAS/AD Technology Trends
Cockpit and ADAS/AD Technology Trends L1-L2 ADAS L3-L4 Autonomous 2010 2005 2015 2020 2025 ECU Consolidation Connected Car HMI for Level 3 Autonomous Digital Cockpit
Slide 9: ECU Consolidation in Automotive Electronics
ECU Consolidation in Automotive Electronics Visteon focused on cockpit and ADAS/AD controller solutions Reduces cost, weight and power consumption ECUs in car 30 - 100+ Consolidation of ECUs into domain controllers Leverages silicon and software innovations Today Tomorrow Cockpit Controller ADAS/AD
Slide 10: Next-Gen Vehicle Cockpit Solution
Next-Gen Vehicle Cockpit Solution Visteon leads industry in fast-growing cockpit controller solutions Highly Integrated Cockpit Controller Data Source: Strategy Analytics, September 2017. (Units in millions) Market Growth Rate Exponential Growth of Cockpit Controllers Visteon’s Market Leading Positi
Slide 11: SmartCore Gen Launched at CES 2018
SmartCore™ Gen 2 Launched at CES 2018 Significant opportunity in 2018 with ~$3.5B in pursuit pipeline Support for QNX® hypervisor in addition to Visteon’s hypervisor Integration of Phoenix™ and Android in addition to instrument cluster and HUD domains Support for Renesas, Nvidia, and now Qualcomm CP
Slide 12: Interconnection of Cockpit Electronics and Autonomous Driving
Interconnection of Cockpit Electronics and Autonomous Driving Visteon is uniquely positioned to provide cockpit electronics solutions as the industry transitions to autonomous technology Individual hardkeys, buttons, knobs, digital displays Digital clusters Head-up displays 3-D instrument clusters D
Slide 13: ADAS to Autonomous Roadmap
ADAS to Autonomous Roadmap Autonomous driving technology requires centralized processing of sensor data L3+ System Requirements Forward Driving Side/Rear Parking Adaptive Cruise Control (ACC) Lane Keeping Assist (LKA) Lane Change Assist Cross Traffic Alert Surround View Advanced Emergency Braking Tr
Slide 14: Autonomous Driving Market by Features
Autonomous Driving Market by Features Highway pilot and self-parking are key autonomous features Forward-driving features merge into “highway pilot” for Level 3 Represents largest segment of market by 2025 Combines ACC, lane keep assist, lane change assist and swarm mode using V2X Expect take rates
Slide 15: Rapid Changes in Sensor and Processing Landscape
Rapid Changes in Sensor and Processing Landscape Camera/radar/LiDAR sensors evolving rapidly CPU/GPU capabilities increasing rapidly More data volume forces higher processing power New AI-specific processors expected in near future LiDAR Mechanical to solid state Higher resolution at <$250 Processor
Slide 16: DriveCore Technology Platform
DriveCore™ Technology Platform Scalable and modular computing hardware Software middleware abstracts hardware for AI algorithms PC-based dev toolchain for third-party algorithm and app development From Level 3 to Level 4 Patented advanced thermal management Level 3 Level 4 Perception Actuation Path
Slide 17: L3/L4 Autonomous Driving Ecosystem
L3/L4 Autonomous Driving Ecosystem Visteon’s DriveCore™ fills system integration gap for autonomous driving ecosystem Silicon Sensors HD Map Scalable Computing Hardware and Middleware Car Manufacturers AI Algorithms & Frameworks System Hardware & Software Silicon, Sensors and HD Maps
Slide 18: Leveraging Autonomous Driving Ecosystem
Leveraging Autonomous Driving Ecosystem Disciplined approach to R&D and strategic investments Customer Partnerships Strategic Investments Strategic cooperation agreement Only Tier 1 founder partner Technology Collaborations Establishing an ecosystem with key partners
Slide 19: Evolving Cockpit Experience from Digital to Autonomous
Best-selling digital cluster platform First open app platform for infotainment First cockpit domain controller First autonomous driving controller Evolving Cockpit Experience from Digital to Autonomous Most advanced technology solutions for cockpit and autonomous driving
Slide 20: Capital Deployment Strategy and Financial Guidance
Capital Deployment Strategy and Financial Guidance Deutsche Bank Global Auto Industry Conference
Slide 21: Capital Return Program
Capital Return Program (Dollars in millions) Commitment to Capital Returns 2017 Authorization $400 million Executed $200M in 2017 Intend to enter into OMR/ASR for remainder after year-end filing 2018 Authorization New share repurchase authorization for $500 million to be executed through 2020 Plan t
Slide 22: Reaffirming long-term targets of $4.7B Sales and 14% Adjusted EBITDA margin
Reaffirming long-term targets of $4.7B for Sales and 14% Adjusted EBITDA margin New Business Wins 2017 Deutsche Bank Global Auto Conference On Track to Achieve Long-Term Targets (Dollars in billions) 2018 Update Increased confidence in achieving sales of $4.7B with 14% Adjusted EBITDA margin in 2021
Slide 23: Full-Year 2017 and 2018 Guidance
Full-Year 2017 and 2018 Guidance FY 2017 Updated Guidance FY 2018 Guidance Sales $3,140 - $3,150 $3,175 - $3,275 Adjusted EBITDA $365 - $370 ~11.6% (~11.9% excl. Autonomous R&D) $370 - $380 ~11.7% (~12.1% excl. Autonomous R&D) Adjusted Free Cash Flow $145 - $150 $160 - $180 (Dollars in millions)
Slide 24: Delivering Shareholder Value
Delivering Shareholder Value Technology transformation from digital to autonomous Long-term growth and margin expansion Return enhancement through capital deployment
Slide 25: Appendix
Appendix Deutsche Bank Global Auto Industry Conference
Slide 26: 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 27: 2018 Exchange Rates
2018 Exchange Rates 2018 full-year impact of movements in FX rates Key exchange rate assumptions
Slide 28: 2017 and 2018 Guidance Reconciliation
2017 and 2018 Guidance Reconciliation Adjusted EBITDA (Electronics Product Group)
Slide 29: 2017 and 2018 Guidance Reconciliation (cont'd)
2017 and 2018 Guidance Reconciliation (cont’d) Free Cash Flow and Adjusted Free Cash Flow (Electronics Product Group)
Slide 30: Instrument Cluster Market Overview
Instrument Cluster Market Overview Digital Cluster is the fastest growing segment Market Analysis 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 dis
Slide 31: Center Information Display Market Overview
Center Information Display Market Overview Early engagement and technology solution are differentiation of our “added value” Market Analysis Market Size Market Share (By Revenue) Consumer electronics experience drives demand in automotive (pleasure and aesthetics – OEM design studio/marketing key in
Slide 32: Head-Up Display Market Overview
Head-Up Display Market Overview After creating the CHUD market, we must win WHUD business to become a market leader 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 mai
Slide 33: Audio/Infotainment Market Overview
Audio/Infotainment Market Overview Visteon offering a differentiated platform and business approach to become a competitive player in the largest market segment Market Analysis Market Size Market Share (By Revenue) Largest revenue product line Audio market declines, but remains relevant in emerging
Slide 34: Telematics Market Overview
Telematics Market Overview High growth as more vehicles are connected globally; creating complexity and security concerns Market Analysis Market Size Market Share (By Revenue) Increasing wireless complexity Multiple access and security needs Connected services (FOTA / Vehicle data services) High-spe
Slide 35: Visteon
Visteon’ WAL RAA a
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