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| 8-K - 8-K - VISTEON CORP | d681270d8k.htm |
 Tim Leuliette
February 25, 2014
2014 Investor Day
Exhibit 99.1 |
 Overview
Global auto supplier of climate, electronics and interiors products
Worldwide
manufacturing/engineering
footprint
with
emphasis
on
low-cost
regions
Strategically positioned to capitalize on emerging-market growth
2013 consolidated sales of $7.4 billion
$4.9 Billion
Climate
Interiors
Electronics
Visteon Today
$1.5 Billion
($3.0
Billion
w/
YFVE
Consolidation
and
JCI
Acquisition)
$1.3 Billion
Page 2
2013
Sales
Key Businesses
HVAC Systems
Powertrain Cooling
EV & Hybrid Battery Cooling
Compressors
Fluid Transport
Audio and Infotainment
Information and Controls
Vehicle Electronics
Cockpit Modules
Instrument Panels
Consoles
Door Trim |
 Page 3
Visteon Continues to Deliver Value
Solid financial performance
–
2013 Adjusted EBITDA (including equity income and NCI) of $704 million, up $78
million Y/Y Visteon business drastically simplified and easier to
understand –
Contributed Climate business to Halla in Q1 2013 to create Halla-Visteon
Climate Control (HVCC) –
Announced sale of YFV for net cash proceeds of ~$1.2 billion (pre-tax)
–
Consolidating YFVE, through increased ownership
–
Simplified corporate structure and fixed cost / SG&A reductions
Focused on two world-class, market-leading businesses
–
#2 in Climate, becoming #2 in Driver Information and Controls with acquisition of
JCI electronics –
Two high growth, high margin businesses with industry-leading
technologies Focused on Optimizing Visteon’s Core Business
Portfolio |
 Page 4
10.6%
Climate
Interiors
Electronics
8.3%
1.9%
(1) Represents 2013 sales and Adjusted EBITDA margin (ex. equity income /
NCI). % Margin
(1)
#2 climate player globally
One
of
only
two
“full-line”
suppliers
$680 million backlog
Plans in place to divest
Continue to invest in business
#3 global market position in
information and controls post
JCI acquisition
Full cockpit electronics portfolio
$4.9 Billion
$1.5 Billion
$1.3 Billion
Sales
(1)
Continue to Optimize Our Product Portfolio
Product Portfolio
Focused on Two Highest Margin Products |
 Climate and Electronics (Excluding Interiors and JCI Electronics)
Page 5
Strong Products & Technology Driving Growth
•
At last year’s Deutsche Bank Conference, Visteon disclosed an $800 million
backlog (new
incremental
business
net
of
lost
business
which
will
launch
over
the
next
3
years)
–
99% related to core Climate and Electronics
–
48% of the backlog launched in 2013 (2013 sales projected to be over $500 million
higher than 2012) •
Visteon current three-year backlog for core Climate and Electronics stands at
~$900 million –
$350 million in 2014, $400 million in 2015, $150 million in 2016
Page 5
Strong Three–Year Backlog in Core Climate & Electronics
|
 $149M
$7.4B
$600M
51.1M
135%
2017 Targets: The Investment Premise
Page 6
Sales
Adjusted EBITDA
(2013 Definition)
‘17 vs. ‘13
31%
67%
Wt. Avg. Shares
Outstanding
(3)
(1)
2013
and
2014
exclude
impact
of
Interiors
exit
and
JCI
Electronics
acquisition.
(2)
Excludes
Equity
Income
and
NCI.
(3)
Assumes
$500
million
in
share
repurchases
in
2014.
Assumes
full
$875
million
authorized
program
completed
by
end
of
2015.
Adjusted
Free Cash Flow
(ex. impact of YFV transaction)
21%
2017E
~$350M
~$9.7B
~$1,000M
~40.2M
2013A
(1)
Adjusted
EBITDA
(2014/Peer Definition)
(2)
$704M
Guidance Midpoint
(1)
2014E
$125M
$7.8B
$680M
~45.5M
Includes Interiors
Includes JCI Electronics
x
x
x |
 Page 7
Our Near Term Focus to Achieve 2017 Targets…
Maintain Focus on Core Value-Creating Assets
–
Climate and Electronics businesses are market leaders
–
Both exhibit higher than segment growth
Optimize Electronics
–
Address Electronics’
strategy and global position and integrate JCI Electronics
–
Integrate Yanfeng Electronics non-consolidated operations
Divest Interiors
–
Non-core business
–
Sale or alternative strategic placement of business
Drive Further Overhead Cost Savings
–
Continue to execute fixed cost and SG&A cost reductions
–
Achieve lean corporate overhead structure
Focused on Growing our Core Businesses and Addressing Legacy Issues
Continue to Address Legacy Issues |
 www.visteon.com
*
*
*
* |
 YH
Park Feb. 25, 2014
HVCC Product / Technology Strategy |
 HVCC at a glance -
Video
Page 2 |
 Financial Highlights
Page 3
Financial Highlights
FY 2013 Financial Results
2013 Sales Breakdown
Strong growth profile with $680 million backlog
–
7% sales CAGR between 2014 and 2017
–
China sales now exceed $900 million annually
Strong balance sheet, with net cash position
Stock price up 64% in 2013
(Dollars in Millions)
2013
B/(W)
‘12
Sales
$4,871
+14%
Adjusted
EBITDA
(1)
$514
+21%
% Margin
(1)
10.6%
By Product
By Region
By Customer
(1) Excludes equity income and non-controlling interests. (2)
Multiple customers all under 2% share |
 Positioned for Growth
Clear #2 global climate player, with 13% market share
Leading product and technology portfolio
One of only two “full-line”
suppliers
Customer-focused solutions provider with a worldwide presence
Global manufacturing footprint supporting OEMs
Gaining share in growing markets
Page 4
A World-Class Climate Organization |
 Global Footprint
Page 5
Market
Countries
# of MFG
(%)
Emerging
China
10
South Asia
4
Eastern Europe/Russia
7
Mexico/South America
5
Subtotal
26
74%
35 Manufacturing Facilities and Four Technical
Centers Headquarters:
Daejeon, Korea |
 Automotive Climate Control Systems
Page 6
One of Two Full-Line Systems Providers |
 Fuel Economy
Page 7
A/C System Operation Impacts Fuel Economy |
 Regulations
Page 8
Strict Fuel Economy Standards and Emissions-Related
Regulations * EPA : Environmental Protection Agency
* NHTSA : National Highway Traffic Safety Administration
* CAFE: Corporate Average Fuel Economy
* Legislated by EPA and NHTSA
* Legislated by Chinese and Japanese governments
* Legislated by EU Committee |
   Market Drivers and Trends
Demand increase for
HEV / EV / FC
Alternative refrigerant
systems
R744 and R1234yf
Cabin air quality
Comfort control
Reduced noise, vibration
and harshness (NVH)
High efficiency system for
fuel economy
Engine downsizing
with turbo charger
Weight reduction
Heat recovery
Stop-Start
Page 9
Solutions That Address Market and Industry Demands |
 Products Delivering Value Today
Conventional products to meet
regulations:
–
Direct contribution
Metal Seal Fitting
R744 System
1234yf System
–
Indirect contribution
Variable Compressor
Internal Heat Exchanger (HEX)
Improved Condenser and Evaporator
Page 10
Conventional Market Appreciated Products |
 Thermal Energy Management Solutions
Page 11 |
 HVCC Technology Roadmap
Page 12 |
 HVCC: World-Class, Innovative Product Portfolio
IHX Sub-Cooled Water Cooled Condenser
IHX Sub-Cooled Water Cooled Condenser
Page 13
Mechanism
•
Water cooled condenser provides better cooling
performance, compared to conventional air cooled
condensers
•
IHX cools down again refrigerant that is already cooled
by water cooled condenser
Customer Benefit
•
Compressor power consumption reduced by 20%
Provides additional 1.1 g/mile CO2
credits to customers
•
Integration of IHX with water cooled condenser
World’s first
IHX : Internal Heat Exchanger |
 HVCC: World-Class, Innovative Product Portfolio
High Resolution IR Sensor
Adaptive Temperature Control Using High Resolution IR Sensor
Page 14
Mechanism
The infrared red sensor:
•
Detects a human body separate from cabin with
increased accuracy
•
Analyzes vehicle occupants (e.g., number of passengers,
seating area, height, weight, clothes, body heat, etc.) to
optimize and fully automate the climate control
Customer Benefit
•
Offers customized passenger thermal comfort
•
Improves fuel efficiency 3%
2013 award for excellence in new technology by HMG
IR Sensor : Infrared Sensor |
 HVCC: World-Class, Innovative Product Portfolio
Centrifugal Air Compressor
Centrifugal Air Compressor
Page 15
Mechanism
•
Provides compressed and pressurized air as needed to
the fuel cell stack to create a hydrogen chemical reaction
Customer Benefit
•
17% improvement of performance, compared to screw
type for a 2% fuel efficiency improvement
•
Compact size and weight
•
Operates at high rotating speeds with low noise
Fuel cell: powers fuel cell vehicle |
 Industry Technology Achievements
Page 16
Centrifugal Air
Compressor
Zero Waste Dispense
Compressor Coating
Metal Seal Fitting
Wavy Blade
Fan
Industry Recognition for Innovative Technology Development
|
 Summary
Market-leading and differentiated solutions
Ready to earn maximum U.S. regulation A/C credits
Focused on delivering innovative solutions that are eco-friendly, efficient and
deliver comfort
Above market growth through customer diversification and continuous stream of
new products
Margin performance based on operational efficiency and technical
innovation
Page 17
Automotive Thermal Energy Management Solution Provider
|
 www.visteon.com
*
*
*
* |
 Martin Thall
President Electronics Group
February 25, 2014
Visteon Electronics |
 Our
World Is Changing Page 2 |
 |
 Visteon Electronics: Financial Highlights
Page 4
Visteon Electronics Today
FY 2013 Sales
2013 Pro Forma Sales Breakdown (Post JCI Acquisition)
Strong global market position in cockpit ecosystem, with
above market growth and industry leading technology
2012 to 2017 12% revenue CAGR forms solid foundation
for value creation
YFVE consolidation and acquisition of JCI Electronics
will transform Visteon Electronics to one of three large
consolidators in exploding cockpit ecosystem along with
Conti and Denso
By Product
By Region
By Customer
(1) Excludes equity income and non-controlling interests.
Pro Forma for YFVE
and JCI Acquisition
Visteon as Reported |
 Page 5
Visteon Electronics Competitive Position
Visteon
is
Positioned
to
Be
One
of
the
Major
Forces
in
the
HMI
Conversion
of
the
Vehicle
to
the
“Largest
Mobile
Device
a
Consumer
Will
Ever
Purchase”
Please see important disclosures regarding “Forward Looking
Information” Cockpit Electronics
Combined
22%
Driver Information
Displays
Combined
31%
Instrument Clusters
Combined
19%
Combined
10%
Pro Forma Market Share
Key Visteon Cockpit Electronics Markets |
 Cockpit Electronics Market
Page 6
Infotainment
growth
forecast
shifts
to
entry/mid
systems
(26%
in
2014)
Color Display
Market Value $
16%
CAGR
2014-’17
Connectivity
Devices in
2020 exceed
40M / year.
25%
Heads Up Display
Goes Mainstream
>25%
CAGR
Sources:
Visteon
global
display
and
infotainment
forecast
Feb
2014,
Visteon
consumer
research
Oct
2013,
GSMA/SBD
telematics
forecast
Feb
2014,
Strategy
Analytics
Metrix
forecast
Feb
2014 |
 Page 7
Information and Controls Portfolio
Instrument
Clusters
Climate
Controls
Control
Panels
Displays
LightScape™
|
|
Reconfigurable
High
Resolution
Color
Display
Launched in January 2014
@ CES2014 |
 Page 8
Audio and Infotainment Portfolio
Audio
Head Units
Infotainment
Connectivity
Solutions
Audio
Components
OpenAir™
HMI Command
& Control
Open
Architecture
Access Off-board
content & services
|
|
Launched in January 2014
@ CES2014 |
 Connected Services Market
Page 9
Sources:
Visteon
infotainment
&
connectivity
forecast
Feb
2014,
Cisco
IBSG
practice
Connected
Vehicle
Report,
Frost
and
Sullivan
Connected
Car
Big
data
Webinar
Jan
2014,
Microsoft
Security
Intelligence
Report,
Panda
Security,
Consumer
Reports,
GSMA/SBD
telematics
forecast
Feb
2014,
Strategy
Analytics
Metrix
forecast
Feb
2014
$30B
by
2018 |
 Connected Car Architecture
Mobile
Network
Data Center
Internet
Services
Wi-Fi
& Bluetooth
2G, 3G,
4G/LTE
2G,3G,
4G/LTE
Antenna
Wireless
Gateway
Infotainment &
User Interface
Consumer’s
Smartphone
Cockpit Electronics
Connected Services
Page 10 |
 Connected Car Services
Page 11 |
 Why
Visteon Electronics? Leveraging
strengths
in
Human
Machine
Interfaces
and
Connectivity
with
a
Focus
on
Safety
Page 12 |
 |
 www.visteon.com
*
*
*
*
*
*
* |