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Strictly Private and Confidential Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics April 2016
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Page 1: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Strictly Private and Confidential

Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics

April 2016

Page 2: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Our Vision:A top-three cockpit electronics player delivering a rich, connected cockpit experience for every car from luxury to entry.

Our Mission:To be the foremost leader in driver information and connected infotainment solutions that enables a rich driving experience in a safe and convenient manner. We will achieve this through relentless pursuit of excellence in electronics and software technology as well as global execution.

Page 2

Page 3: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Markus SchupfnerChief Technology Officer

Matthew ColeProduct Development

Page 3

Visteon Leadership

Sachin LawandePresident & CEO

Bob SwanstonQuality Director

Sunil BilolikarOperations

& Procurement

Bob VallanceCustomer

Business Groups

Tim YerdonMarketing and

Communications

Francis M. ScriccoChairman

Duncan H. Cocroft Jeffrey D. Jones Sachin Lawande

Joanne M. Maguire Robert J. Manzo David L. Treadwell

Harry J. Wilson Rouzbeh Yassini-Fard George Yuen

Board of Directors

Proven Leadership Team Committed to Sustainable Growth and InnovationProven Leadership Team Committed to Sustainable Growth and Innovation

Bill RobertsonInterim Chief

Financial Officer

Brett PynnonenGeneral Counsel

Executive Management

Page 4: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Visteon’s Transformation: 2000-2016

Page 4

$18B multi-product conglomerate supplier spun off from Ford

Transferred 23 U.S. plants to Ford

Restructuring Plan

Chapter 11 Reorganization

YanfengElectronics

Consolidation

JCI ElectronicsAcquisition

Interiors Divestiture

Global Climate Equity Sale

Visteon Now a $3.25 Billion Technology-Focused Supplier of Cockpit Electronics Visteon Now a $3.25 Billion Technology-Focused Supplier of Cockpit Electronics

LightingDivestiture

Yanfeng Interiors Equity Sale

2000

2005

2006-2008

2009-20102012

2014 20152013

Signed agreement to acquire

AllGo Systems

2016

Page 5: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Visteon signed an agreement to acquire automotive assets of AllGo Embedded Systems Private Ltd., a leading developer of embedded multimedia solutions – closing expected in first half 2016

AllGo background:– Headquartered in Bangalore, India, with sales

presence in the U.S., Asia Pacific and Europe– Comprehensive intellectual property portfolio of

in-vehicle-infotainment, media and connectivity solutions

– Diverse customer base– ~140 employees, vast majority engineers

Acquisition key to accelerating Visteon’s innovation of automotive infotainment solutions that improve the connected driving experience

CarPlay USB HUBRACE MME

Audio and Video CodecsADAS

Acquisition – Automotive Multimedia Systems Supplier

Page 5

AllGo Acquisition Adds Greater Scale and Depthto Visteon's Infotainment Software Capabilities

AllGo Acquisition Adds Greater Scale and Depthto Visteon's Infotainment Software Capabilities

Enables

Page 6: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Visteon at a Glance

Page 6

MANUFACTURING LOCATIONS22

11,000 EMPLOYEES

18 COUNTRIES

TECHNICAL CENTERS17

$3.25B 2015 ANNUAL SALES

As of April 2016

Leading Portfolio and Expertise, Global Footprint, Strong Balance Sheet Leading Portfolio and Expertise, Global Footprint, Strong Balance Sheet

COMPANY HEADQUARTERSVan Buren Township,

Michigan, United States

Page 7: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Page 7

A Solid Customer Base

Page 8: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

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SAIC-GM Chevrolet SailInfotainment System

BMW 7-SeriesInstrument Cluster

Ford FiestaCenter Information Display

Honda PilotInstrument Cluster

Mazda 2Infotainment System, Center

Information Display

Ford F-150Instrument Cluster

Mercedes Benz VitoInstrument Cluster

Mahindra W207 SUVInfotainment

Hyundai TucsonInstrument Cluster

59 Product Launches During 2015, with 17 Launches in Fourth Quarter 201559 Product Launches During 2015, with 17 Launches in Fourth Quarter 2015

Jaguar XJInstrument Cluster

Acura ILXTelematics

Infiniti Q30Cockpit Media Input Box

Ford Everest/RangerAudio Head Unit

Chevrolet CamaroInstrument Cluster

Renault MeganeAudio Silver Box,

Instrument Cluster

Jaguar X760Instrument Cluster

2015 Key Product Launches

Geely EmgrandClimate Control Head

Page 9: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Full-Year 2015 Highlights – A Strong Year

Page 9

Electronics product group and corporate costs only

Page 10: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Balanced Sales Profile

Diverse Product, Regional and Customer Sales ProfileDiverse Product, Regional and Customer Sales Profile

Page 10

Sales breakdown based on Visteon manufacturing

facility region

Sales breakdown based on OEM headquarter region

Sales breakdown based on product

Sales byMfg. Region

Sales byCustomer

Sales byProduct

Visteon Electronics FY 2015 Sales BreakdownVisteon Electronics FY 2015 Sales Breakdown

Asia37%

Europe32%

North America29%

South America

2% Mazda17%

Nissan8%

Honda 4%

Mitsubishi 2%

Other Asia 6%

Renault6%

JLR4%

PSA4%

Daimler 4%

BMW 4%

VW 3%

Ford31%

GM7%

38%

25%

37%

Instrument Clusters36%

Information Displays19%

Infotainment12%

AudioSystems

10%

Telematic Solutions8%

Other15%

Page 11: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Ford26%

GM15%

Mazda 13%Renault / Nissan11%

China OEMs7%

BMW 5%

VW 5%

PSA 5%JLR 4%Daimler 3%

Other6%

Page 11

New Business Wins – 2015 Full-Year Results

Visteon Won $1.35 Billion in New, Rewin, and Extension Business During 2015 –Equating to $4.3 Billion in Lifetime Revenue

Visteon Won $1.35 Billion in New, Rewin, and Extension Business During 2015 –Equating to $4.3 Billion in Lifetime Revenue

Consolidated New Business WinsConsolidated New Business Wins $4.3 Billion New Business Wins Breakdown (FY 2015)

$4.3 Billion New Business Wins Breakdown (FY 2015)

Lifetime Revenue

(Dollars in Billions)

$0.6

$1.3$1.35

FY 2013Actual

FY 2014Actual

FY 2015Actual

Average Annual

Lifetime Revenue $4.3Memo:

N/A N/A

(1)

(1) Excludes ex-JCI business.

Instrument Cluster

39%

Infotainment19%

Audio 18%

Non-Core11%

Display 10%

Connectivity & Telematics

2%HUD1%

Page 12: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Page 12

China Full-Year 2015 Highlights

We Project Visteon China Sales to Outpace the Overall China MarketWe Project Visteon China Sales to Outpace the Overall China Market

Visteon in China OverviewVisteon in China Overview China Production vs. Visteon China SalesChina Production vs. Visteon China Sales

Please see appendix for important disclosures regarding “Forward-Looking Information”

Winning New Business in ChinaWinning New Business in China Long-Term Production Volume Forecast (1)Long-Term Production Volume Forecast (1)

22.9 24.0

FY 2014 FY 2015

(Dollars and Units in Millions)

24.0 25.3 26.2 27.3 28.8

2015 2016 2017 2018 2019

FY 2015

China New Wins (Annual) $275% of Global Visteon Wins 20%

Memo: Lifetime Revenue $1,075

# of Product LaunchesChina Product Launches 20

$579$683

FY 2014 FY 2015

(1) Source: IHS Automotive, February 2016 Forecast. Represents light vehicles only. (2) 2014 includes only two quarters of SVAE sales ($104 million in H2 2014). SVAE was acquired on July 1, 2014 as part of the JCI Electronics acquisition.

Joint Ventures with “Big Four” Chinese manufacturers– SAIC, DongFeng, FAW, ChangAn

~$1.2 billion in total sales in 2015— $683 million consolidated sales

•~$400 million exported to non-China locations•~$300 million of domestic China sales

— ~$500 million of unconsolidated JV sales

2016 China production volumes forecasted to grow 5.4%– 5% change in China market will change Visteon sales

by ~$15 million and EBITDA by ~$4 million

China ProductionVolumes (1)

Visteon China Consol. Sales (2)

Visteon 2015 China sales up

18% Y/Y, significantly higher than

overall market, driven by SVAE acquisition on

July 1, 2014

Page 13: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

China

ShanghaiXuzhou

Changchun

ChongqingShaoxing

Nanjing

China Footprint

• Yanfeng Visteon China Technical Center• Shanghai Visteon Electronics Technology Co., Ltd.• Anyo Pioneer Motor Information Technology Co., Ltd• Yanfeng Visteon Electronics Technology (Nanjing) Co., Ltd

Manufacturing Plants

Major Technical Centers

Page 13

• Visteon Asia Pacific Corporate Office (Shanghai)

Customer Service Centers

• 10 manufacturing facilities

• 1 customer service centers

• Engineering capability at 4 major technical centers

* All Visteon Asia Pacific operations are either Visteon wholly owned or through joint ventures

Changchun x2 * •Changchun FAW Yanfeng Visteon Electronics•Changchun Visteon FAWAY Automotive Electronics

Chongqing x3 *•Yanfeng Visteon (Chongqing) Automotive Electronics Co., Ltd •Chongqing Changan Visteon Engine Control Systems •Visteon Automotive Electronics (Chongqing) Co., Ltd

Shaoxing x2 *•Yanfeng Visteon Betung Automotive Instrumentation•Zhejiang Shaohong Instrument

Shanghai x2 *•Yanfeng Visteon Electronics •Shanghai Visteon Automotive Electronics

Xuzhou *•Jiangsu Toppower Automotive Electronics

Page 14: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Page 14

Recent Recognition in China

Customers Continue to Recognize Visteon for Our Technologies and InnovationsCustomers Continue to Recognize Visteon for Our Technologies and Innovations

Shanghai General Motors’ Excellent Supplier and Service Supplier Awards

Dongfeng Peugeot Citroen Automotive Company Best Supplier Awards

Shanghai Automotive Industry Corporation’s Excellent Innovation Supplier and Excellent Supplier Awards

Chang’an Mazda Automobile’s QC Improvement Achievement & Excellent Supplier Awards

Jiangling Motor Corp Landwind Excellent Supplier Award

FAW Excellent Supplier Award

Page 15: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

InstrumentClusters

Head-Up DisplaysTelematics

Cockpit Domain Controllers

InformationDisplays

AudioInfotainment

Singularly Focused on Cockpit Electronics

Page 15

One of the largest cockpit electronics suppliers – and only one focused on electronics One of the largest cockpit electronics suppliers – and only one focused on electronics

Page 16: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Automotive Electronics Satisfaction Drivers

Page 16 Source: JD Power.

Entertainment and

Connectivity(Infotainment)

29%

DriverInformation

21%Navigation15%

Comfort andConvenience

26%

ADAS* 9%

Infotainment• Android Auto / Apple CarPlay• Radio• Rear Seat Entertainment

Five Key Cockpit Electronics Segments Drive Consumers’ Satisfaction with Vehicles –Visteon is Well Positioned to Deliver Value to Consumers as a Leader in 4 of the 5

Five Key Cockpit Electronics Segments Drive Consumers’ Satisfaction with Vehicles –Visteon is Well Positioned to Deliver Value to Consumers as a Leader in 4 of the 5

Impact on Satisfaction from In-Vehicle TechnologyAligns with Key Visteon Products

* Advanced Driver Assistance Systems

Driver Information• Head-Up Displays• Instrument Clusters

Navigation• Factory Installed Navigation• Smartphone Navigation Vehicle Interface

Comfort and Convenience• Climate Controls• Customization /

Personalization• Touch Screen Display

Page 17: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

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Key Trends Impacting Auto Electronics

Three Key Mega-Trends Expected to Drive Significant Changes in the Automotive IndustryThree Key Mega-Trends Expected to Drive Significant Changes in the Automotive Industry

75% of new cars connected by 2020

Embedded 3G/4G connectivity Wider acceptance of CarPlay

& Android Auto solutions Demand for connected

infotainment solutions

Near-TermNear-Term Mid-TermMid-Term Long-TermLong-Term

100% of new cars connected 4G/5G embedded connectivity Vehicle as mobile application

platform Increased number & quality of

displays Increased number of 3rd party

apps

Seamless connectivity between Car & Cloud

Integrated traffic & vehicle management solutions

Integration with autonomous driving technology

2015-2020 2020-2025 2025-2030

Sensor-specific solutions for ADAS

RADAR/Camera technologies Emerging low-cost LIDAR

sensors V2X technology maturation

Semi-autonomous driving on highways & clearly marked roads

Multi-sensor fusion & computing software platforms

5-10% of new cars capable of semi-autonomous driving

Full autonomous driving technology available

10-20% of new cars capable of autonomous driving

Emerging car sharing & ride sharing services

Car & ride sharing become prevalent

Sharing model starts to impact global vehicle sales

Shared vehicles start to replace owned vehicles

20% of vehicles use shared model

Connected Car

Autonomous Driving

Shared Mobility

Page 18: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Instrument Clusters

Page 18

Strengths Visteon is #3 in the market Strong presence in all segments,

including motorcycles Wide range of display technologies and

graphics capabilities

Conti26%

Denso17%

Visteon16%

Nippon Seiki10%

Marelli 7%Yazaki

6%Delphi

5%

Bosch4%

Other6%

2015 Market Share

Page 19: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Head-Up Displays

Page 19

Strengths First to market with combiner HUD in

2009 Reusable picture generating unit (PGU)

/ kinematics modules Augmented reality optical solutions

Nippon Seiki47%

Conti19%

Denso15% Visteon

6%

Bosch5%

Yazaki3%

Alps3%

Pioneer1%

JVC1%

2015 Market Share

Page 20: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Information Displays

Page 20

2015 Market Share

Strengths Visteon is #1 in the market Design for high-speed interface among

display, touch sensor and vehicle network Thin profile optically bonded flat/curved

lens with multi-touch

Visteon26%

Conti15%

Bosch7%Sharp

5%

Desay4%

Innolux 4%

Sanyo 4%

Kyocera 3%

Alpine 3%

Marelli 3%

Valeo 3%

Other23%

Page 21: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Infotainment

Page 21

Strengths System architecture engineered to

adapt to new consumer electronics features and technology

Deliver connected automotive HMI expertise through a multi-modal interface

Layered end-to-end security

Harman13%

Alpine10%

Bosch9%

Mitsubishi7%

Denso7%

Ford6%

Mobis6%

Aisin5%

Clarion5%

Conti4%

Panasonic3%

TomTom3%

Marelli3%

LG3%

Visteon3%

Other13%

2015 Market Share

Page 22: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

SmartCoreTM

Page 22

Strengths Industry-first automotive grade cockpit

domain controller solution In-house development of hypervisor

technology Opportunity to save $175* in total cost

of ownership per vehicle for mid-range cockpit ECUs

* Source: RolandBerger Consolidation in Vehicle Electronic Architectures, July 2015.

Head-Up Display (HUD)

Advanced Driver Assistance Systems (ADAS)

Infotainment

Instrument Cluster

Four Separate Systems

1234

1 23 4

Page 23: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

Focused on Three Strategic Imperatives –Strengthen the Core, Move Selectively to Adjacent Products, Deliver Cost Efficiencies

Focused on Three Strategic Imperatives –Strengthen the Core, Move Selectively to Adjacent Products, Deliver Cost Efficiencies

Strategic Imperatives

Page 23

AudioHead-Up DisplaysInformation DisplaysInfotainmentInstrument ClustersTelematics

Cockpit DomainControllers (SmartCoreTM)Next Generation Safety

Applications (e.g. V2X / V2V)Vehicle Cyber Security

Drive to 12% EBITDA MarginAchieve SG&A and

Engineering EfficienciesImprove Free Cash FlowOptimize Capital

Structure

Strengthenthe Core

Move Selectively to Adjacent Products

Deliver CostEfficiencies

Page 24: Visteon Corporation: A Technology-Focused Supplier … · Visteon Corporation: A Technology-Focused Supplier of Vehicle Cockpit Electronics ... SAIC-GM Chevrolet Sail Infotainment

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www.visteon.com


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