Slide 1: Visteon Q3 2023 Earnings
Visteon Q3 2023 Earnings October 26, 2023
Slide 2: Q3 2023 in Review
Q3 2023 in Review Net Sales Adjusted EBITDA Adjusted FCF $1,014 Million $128 Million $98 Million 9% Y/Y Base Sales Growth(1) Increasing Midpoint of FY Guidance $485 Million Total Cash CONTINUED EXECUTING ON STRONG LEVEL MOMENTUM IN RETURNING MARKET OUT- PRODUCT OF NEW NEXT-GENERATION CAPITAL TO PERF
Slide 3: Product Sales Growth
Product Sales Growth Strong growth-over-market in a flat customer production environment (Dollars in millions) Q3 Base Sales Growth of +9%(1) Q3 Product Sales Performance Clusters $1,026 $1,014 Robust digital cluster growth including ramp-up of Nissan programs and new Mercedes vehicle launches $945
Slide 4: Q3 New Product Launches
Q3 New Product Launches New model launches supporting continued market outperformance Key Q3 2023 Model Launches YTD 2023 Highlights 102 New Product Launches Mercedes EQE Volvo EX30 Honda Two-Wheeler Digital Cluster Cockpit Domain Controller Digital Cluster 62 Digital Cluster and CDC Product Launche
Slide 5: Q3 New Business Wins
Q3 New Business Wins Third quarter momentum keeps us on track to exceed full-year target Q3 2023 YTD New Business Wins Key Q3 New Business Wins $5.8B Digital Cockpit 3% Other $5.0B Cross-platform cockpit domain controller 11% Displays for premium German OEM 20% Clusters Infotainment System and Displ
Slide 6: Visteon's AllGo Connected Services Platform
Visteon’s AllGo Connected Services Platform Gaining momentum with cloud-based user experience products App Store Value Offering Connected Services Suite Android-based Localized App Developer Cloud Services for Deployment and App Store Client Partnerships Ongoing Support Analytics Dashboard Automotiv
Slide 7: YTD Performance and Q4 Outlook
YTD Performance and Q4 Outlook Anticipate resilient performance despite emerging challenges Success of digital products driving Key Drivers sequential growth of base sales Growth-Over-Market $1,014 $1,024(1) Strong launch cadence driving base sales $967 $983 growth despite slower wireless BMS ramp $
Slide 8: Summary
Summary Continued Market Outperformance Delivered 18th consecutive quarter of growth-over-market relative to our customers’ vehicle production Strong Commercial Performance Commercial discipline and cost performance drove adjusted EBITDA margin expansion Product Launches Driving Sales Growth Deliver
Slide 9: Q3 2023 Financial Results
Q3 2023 Financial Results October 26, 2023
Slide 10: Q3 2023 Financial Review
Q3 2023 Financial Review Strong quarter with continued commercial and operational discipline Net Sales Adjusted EBITDA Adjusted FCF $1,014 Million $128 Million $98 Million 9% Y/Y Base Sales Growth(1) 12.6% Margin $144 Million Net Cash Strong base sales growth Y/Y supported by digital Improved ma
Slide 11: Q3 2023 Y/Y Financial Performance
Q3 2023 Y/Y Financial Performance Higher base sales and operational performance driving margin improvement (Dollars in millions) Key Performance Drivers Sales Adjusted EBITDA +$75 +$33 Growth-Over-Market Product sales growth and market outgrowth supported by ramp-up of product launches $1,026 $1,014
Slide 12: Balance Sheet and Adjusted Free Cash Flow
Balance Sheet and Adjusted Free Cash Flow Strong adjusted free cash flow generation of $98 million in Q3 YTD YTD (Dollars in Millions) 2022 2023 $485 million Provides flexibility and Adjusted EBITDA $245 $317 Cash supports capital allocation Trade Working Capital (183) (50) $341 million Cash Taxes (
Slide 13: 2023 Full-Year Guidance
2023 Full-Year Guidance Updating guidance for YTD performance and UAW strike impact(1) (Dollars in millions unless otherwise noted) Key Assumptions $3.950B – $4.025B ▪ Continued growth-over-market driven by product launches Base Sales +14% Y/Y ▪ Midpoint assumes current UAW strike levels until Thank
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 Stron
Slide 15: Appendix
Visteon’ Appendix October 26, 2023
Slide 16: Forward-Looking Information
Forward-Looking Information 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," "inte
Slide 17: 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 18: 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 19: 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 and impairment expense, net interest expense, equity in ne
Slide 20: 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. 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4
Slide 21: 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 22: Reconciliation of Non-GAAP Financial Information (cont'd)
Reconciliation of Non-GAAP Financial Information (cont’d) Adjusted EBITDA Build-up (Dollars in millions) 2022 2023 Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,014 $2,964 Gross margin $76 $74 $104 $114 $368 $110 $104 $143 $357 Intangibles amortization — — 1 —
Slide 23: Net Engineering
Net Engineering 2022 2023 (Dollars in millions) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Engineering costs, net Engineering costs, gross ($81) ($81) ($83) ($96) ($341) ($83) ($91) ($79) ($253) Recoveries 33 40 25 47 145 27 29 25 81 Engineering costs, net ($48) ($41) ($58) ($49) ($196) ($56) ($62) ($54) ($
Slide 24: Financial Results – U.S. GAAP
Financial Results – U.S. GAAP 2022 2023 (Dollars in millions, except per share data) Q1 Q2 Q3 Q4 Full Year Q1 Q2 Q3 YTD Income Statement Sales $818 $848 $1,026 $1,064 $3,756 $967 $983 $1,014 $2,964 Gross margin 76 74 104 114 368 110 104 143 $357 SG&A 44 43 47 54 188 52 52 52 $156 Net income / (loss)
Slide 25: Visteon
Visteon