Visteon Corporation · NASDAQ:VC
Visteon — Baird Global Industrial Conference 2017
22 slides from Visteon's conference presentation, Nov 7, 2017
Slide 1: Visteon Baird Global Industrial Conference November 2017
Visteon Baird Global Industrial Conference November 2017 Sachin Lawande President and CEO 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 A global leader in automotive cockpit electronics and software (1) Peer group includes average returns of Autoliv, Continental, Delphi and Gentex. Manufacturing locations 22 10,000 Employees 18 Countries Technical centers 18 $3.1B Annual sales (Electronic
Slide 4: A Broad and Diversified Customer Base
A Broad and Diversified Customer Base Global automotive technology company with more than 25 customers worldwide
Slide 5: Industry-Leading Cockpit Electronics Product Portfolio
Industry-Leading Cockpit Electronics Product Portfolio Only pure-play in automotive cockpit electronics Source: Rankings from 2016 ABI Research and IHS Markit. Instrument clusters Head-up displays Displays Infotainment Audio Connectivity Cockpit domain controllers Visteon Market Position Top 5 Conne
Slide 6: Industry in Transformation
Industry in Transformation Cockpit electronics growing faster than underlying vehicle production Cockpit Electronics vs. Global Vehicle Production Cockpit Electronics Global Vehicle Production 9.1% CAGR 2.1% CAGR Projections based on latest IHS Markit data. ~$32B in 2017 Instrument Clusters 22% Audi
Slide 7: Key Trends in Instrument Clusters
Key Trends in Instrument Clusters Visteon leading industry transition toward digital clusters CAGR 2022 2017 27% 6% -10% Hybrid Analog All Digital 95.1M Units 105.7M Units All-digital is fastest-growing segment of clusters All-digital clusters expanding from luxury to mass market vehicles Visteon aw
Slide 8: Key Trends in Audio/Infotainment
Key Trends in Audio/Infotainment Display Audio and Embedded Infotainment offer significant growth opportunity for Visteon 2022 2017 5% 22% -10% 95.1M Units Display Audio Audio Embedded Infotainment 105.7M Units Market trending toward Display Audio systems from traditional audio Visteon’s capabilitie
Slide 9: Visteon's Infotainment Platform for Connected Car
Visteon’s Infotainment Platform for Connected Car Seamless upgrade path from Display Audio to Embedded Infotainment App developer friendly Highly secure Fully upgradeable Automotive Base Components Cyber Security Web Runtime Projection Mode Common API and JavaScript Navi Engine Complete “out-of-the-
Slide 10: ECU Consolidation in Automotive Electronics
ECU Consolidation in Automotive Electronics Visteon offers industry-first cockpit domain controller; will launch AD controller Today Tomorrow Reduces cost, weight, and power consumption ECUs in car 30 - 100+ Consolidation of ECUs into domain controllers Leverages silicon and software innovations
Slide 11: Visteon's Cockpit Domain Controller
Visteon’s Cockpit Domain Controller Market introduction of first SmartCore™ system in early 2018 with European OEM Cluster HUD Infotainment SmartCore™ Cockpit Domain Controller *Source: Roland Berger study, July 2015. 4 SmartCore™ business wins to date $175 Expected per vehicle savings* Integration
Slide 12: Key Trends in Autonomous Driving
Key Trends in Autonomous Driving Perception Sensors Actuation Path Planning HD maps, real-time middleware for algorithms Scalable high performance compute system Vehicle Integration CNN algorithms RL algorithms Radar 24GHz to 76-81GHz 2-D to 3-D Technology Landscape Autonomous Driving Controller Pro
Slide 13: Visteon's DriveCore Technology Platform
Visteon’s DriveCore™ Technology Platform Studio Runtime Compute Communications Framework APIs Complete technology platform Middleware and tools for rapid algorithm development Faster time to market with third-party algorithms From 500 GFLOPS to 20 TFLOPS Advanced thermal management Perception Sensor
Slide 14: Continuing Momentum Toward Best-In-Class Profitability
Continuing Momentum Toward Best-In-Class Profitability (Dollars in Millions) 12.5% 11.9% 10.8% 10.4% 7.7% 8.7% 10.0% 10.7% 12.2% Adjusted EBITDA increased Y/Y every quarter for 11 straight quarters… …guiding to long-term margins reaching 14% while investing in new technologies. Annual Adjusted EBITD
Slide 15: Record YTD New Business Wins and Backlog
Record YTD New Business Wins and Backlog Business accelerating in faster-growing product segments across all regions $18.0B Backlog New Business Wins Note: New business wins represent booked lifetime revenue. $16.5B $14.9B Data source: ‘17 data source: Q3 2017 Earnings deck + C Brown outlook estimat
Slide 16: 2017 Strategic Imperatives
2017 Strategic Imperatives Strengthen Core Business Develop Level 3/4 Autonomous Driving Platform Accelerate China Business Deliver higher sales and improve margins to ~11.5% Drive new business wins to achieve combined ~$12 billion target for 2017/2018 Continued focus on operational excellence Achie
Slide 17: Appendix
Appendix Baird Global Industrial Conference
Slide 18: 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 19: Full-Year 2017 Guidance (Electronics Product Group)
Full-Year 2017 Guidance (Electronics Product Group) FY 2016 Actual Updated FY 2017 Guidance Sales $3.107B $3.12 - $3.16B Adjusted EBITDA $346M 11.1% $360 - $370M ~11.5% Adjusted Free Cash Flow $167M $170 - $180M
Slide 20: 2017 Guidance Reconciliation
2017 Guidance Reconciliation Adjusted EBITDA (Electronics Product Group)
Slide 21: 2017 Guidance Reconciliation (cont'd)
2017 Guidance Reconciliation (cont’d) Free Cash Flow and Adjusted Free Cash Flow (Electronics Product Group) (1) Excludes $82 million of legacy-related cash outflows. (1)
Slide 22: Visteon’
Visteon’ WAL RAA a