Slide 1: Visteon Q1 2024 Earnings
Visteon Q1 2024 Earnings April 25, 2024
Slide 2: Q1 2024 in Review
Q1 2024 in Review Net Sales Adjusted EBITDA Adjusted FCF $933 Million $102 Million $34 Million 2% Growth-over-Market(1) 10.9% Margin 33% Conversion Ratio DIGITAL CLUSTERS EXPANDING EXECUTING ON STRONG NEW RETURNING AND SMARTCORE™ OUR PRODUCT BUSINESS CAPITAL TO GROWING PROFITABILITY LAUNCHES WINS SH
Slide 3: Q1 2024 Market and Visteon Sales Dynamics
Q1 2024 Market and Visteon Sales Dynamics Lower customer vehicle production driven by weakness in Europe and Asia North America Europe Asia ➢ Robust OEM production partially offset ➢ Soft consumer demand and phase- ➢ Global OEMs continue to lose market by customer vehicle launch delays out of govern
Slide 4: Q1 2024 Product Sales
Q1 2024 Product Sales Continued momentum with next-generation products (Dollars in millions) Q1 Product Sales Q1 Highlights Digital Clusters $967 Robust digital cluster growth of ~20%, driven by $933 programs with JLR, Ford, and Stellantis SmartCore™ Sales increased ~20% from ramp up of Harley Clust
Slide 5: Q1 2024 New Product Launches
Q1 2024 New Product Launches Launched 26 new products across 14 different OEMs, supporting our growth Key Product Launches In the Spotlight Integrated cockpit controller for commercial vehicle Ford Puma – ICE & HEV Scania Truck – ICE & BEV Digital Cluster, Display, Audio Infotainment SmartCore™ Prem
Slide 6: Q1 2024 New Business Wins
Q1 2024 New Business Wins Wins balanced across digital cockpit products and regions Q1 New Business Wins Key New Business Win Highlights Electrification & Other Digital Cluster 3% 12” digital cluster for multiple vehicles with Japanese OEM 31% Clusters SmartCore™ & Infotainment 38% $1.4B Cockpit Dom
Slide 7: Displays Gaining Momentum
Displays Gaining Momentum More than $400 million of displays wins during the quarter Visteon Value Display Highlights SOP Proposition 8” Rear Seat OLED Monitor First OLED win for for German Luxury OEM Visteon 2026 Vertically Integrated 10” Cross-Carline Display For light commercial vans Platform for
Slide 8: Tunisia Plant Grand Opening
Tunisia Plant Grand Opening Investment to support continued growth for next-generation products in Europe Tunisia Plant Highlights State-of-the-Art Manufacturing Close Proximity to Capacity Expansion for Displays and Electronics European Customers Enabling Future Growth 8
Slide 9: 2024 Market and Visteon Sales Outlook
2024 Market and Visteon Sales Outlook Maintaining full-year guidance after solid start to the year Customer Production Expect full-year decline of ~2%, slightly below initial expectations with potential upside from vehicle incentives in China Electrification Strong start for BMS in Q1 helps de-risk
Slide 10: Summary
Summary Continued Momentum with Digital Cockpit Solutions Technology portfolio aligns with key trends, including connected car, digitalization, and electrification Delivering on Growth-Over-Market Returned to positive growth-over-market in Q1 with anticipated acceleration through rest of 2024 Strong
Slide 11: Q1 2024 Financial Results
Q1 2024 Financial Results April 25, 2024
Slide 12: Q1 2024 Financial Review
Q1 2024 Financial Review Solid quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $933 Million $102 Million $34 Million 2% Growth-over-Market 10.9% Margin $175 Million Net Cash Strong demand for digital clusters, cockpit Strong margin performance
Slide 13: Q1 2024 Y/Y Financial Performance
Q1 2024 Y/Y Financial Performance On track to deliver full-year margin expansion (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA ($34) +70 bps Growth-Over-Market Ramp-up of recent product launches drove $967 2% growth-over-market $933 $102 $99 Customer Production Visteon customer
Slide 14: Q1 2024 Balance Sheet and Adjusted Free Cash Flow
Q1 2024 Balance Sheet and Adjusted Free Cash Flow Net cash position of $175 million and strong cash conversion of 33% Q1 Q1 (Dollars in Millions) 2023 2024 $507 million Provides flexibility and Adjusted EBITDA $99 $102 Cash supports capital allocation Trade Working Capital (77) (11) $332 million Cas
Slide 15: 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 Stron
Slide 16: Appendix
Visteon’ Appendix April 25, 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 net restructuring expense, and related tax effects and other gains and losses no
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, net restructuring expense, net interest expense, equity in net (income)
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 Sales $967 $983 $1,014 $990 $3,954 $933 Gross margin $110 $104 $143 $130 $487 $119 Intangibles amortization — — — 1 1 — Non-cash stock-based compensation 3 4 4
Slide 24: Net Engineering
Net Engineering 2023 2024 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Engineering costs, net Engineering costs, gross ($83) ($91) ($79) ($77) ($330) ($83) Recoveries 27 29 25 39 120 23 Engineering costs, net ($56) ($62) ($54) ($38) ($210) ($60) 24
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 Income Statement Sales $967 $983 $1,014 $990 $3,954 $933 Gross margin 110 104 143 130 487 119 SG&A 52 52 52 51 207 52 Net income / (loss) attributable to Visteon 34 20 66 366 486 42 Earnings
Slide 26: Visteon
Visteon