A Technology-Focused Supplier of Vehicle Cockpit

Visteon Corporation:
A Technology-Focused Supplier of Vehicle Cockpit Electronics
April 2016
Strictly Private and Confidential
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
Visteon Leadership
Executive Management
Board of Directors
Sachin Lawande
President & CEO
Francis M. Scricco
Chairman
Sunil Bilolikar
Matthew Cole
Brett Pynnonen
Product Development
General Counsel
Bill Robertson
Markus Schupfner
Bob Swanston
Interim Chief
Financial Officer
Chief Technology Officer
Quality Director
Operations
& Procurement
Bob Vallance
Customer
Business Groups
Tim Yerdon
Marketing and
Communications
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
Proven Leadership Team Committed to Sustainable Growth and Innovation
Page 3
Visteon’s Transformation: 2000-2016
Yanfeng
Electronics
Consolidation
$18B multi-product
conglomerate supplier
spun off from Ford
JCI Electronics
Acquisition
2013
2014
2015
2016
2012
2009-2010
2006-2008
2005
2000
Signed
agreement
to acquire
Lighting
Restructuring
Interiors
AllGo
Divestiture
Plan
Divestiture
Systems
Transferred 23 U.S.
Chapter 11
Yanfeng Interiors
Global Climate
plants to Ford
Reorganization
Equity Sale
Equity Sale
Visteon Now a $3.25 Billion Technology-Focused Supplier of Cockpit Electronics
Page 4
Acquisition – Automotive Multimedia Systems Supplier
 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
Enables
CarPlay USB HUB
RACE MME
Audio and Video Codecs
ADAS
 Acquisition key to accelerating Visteon’s
innovation of automotive infotainment solutions
that improve the connected driving experience
AllGo Acquisition Adds Greater Scale and Depth
to Visteon's Infotainment Software Capabilities
Page 5
Visteon at a Glance
$3.25B
11,000
18
22
17
Van Buren Township,
Michigan, United States
2015 ANNUAL SALES
EMPLOYEES
COUNTRIES
MANUFACTURING LOCATIONS
TECHNICAL CENTERS
COMPANY HEADQUARTERS
Leading Portfolio and Expertise, Global Footprint, Strong Balance Sheet
Page 6
As of April 2016
A Solid Customer Base
Page 7
2015 Key Product Launches
Acura ILX
Ford Everest/Ranger
Telematics
Mazda 2
Audio Head Unit
Jaguar XJ
Instrument Cluster
Infotainment System, Center
Information Display
Renault Megane
Audio Silver Box,
Instrument Cluster
Honda Pilot
Geely Emgrand
Instrument Cluster
Climate Control Head
SAIC-GM Chevrolet Sail
Infotainment System
BMW 7-Series
Instrument Cluster
Ford Fiesta
Center Information Display
Mercedes Benz Vito
Mahindra W207 SUV
Instrument Cluster
Infotainment
Chevrolet Camaro
Jaguar X760
Instrument Cluster
Instrument Cluster
Infiniti Q30
Ford F-150
Hyundai Tucson
Cockpit Media Input Box
Instrument Cluster
Instrument Cluster
59 Product Launches During 2015, with 17 Launches in Fourth Quarter 2015
Page 8
Full-Year 2015 Highlights – A Strong Year
Electronics product group and corporate costs only
Page 9
Balanced Sales Profile
Visteon Electronics FY 2015 Sales Breakdown
Sales by
Mfg. Region
Sales by
Customer
South
America
2%
GM
7%
Mazda
17%
North America
29%
Asia
37%
Ford
31%
Sales by
Product
37%
38%
Other
15%
Nissan
8%
Telematic Solutions
8%
Honda 4%
Mitsubishi 2%
VW 3%
25%
Renault
Daimler 4% PSA JLR
6%
4% 4%
Sales breakdown based on
Visteon manufacturing
facility region
Audio
Systems
10%
Other Asia 6%
BMW 4%
Europe
32%
Sales breakdown based on
OEM headquarter region
Infotainment
12%
Information Displays
19%
Sales breakdown based on
product
Diverse Product, Regional and Customer Sales Profile
Page 10
Instrument Clusters
36%
New Business Wins – 2015 Full-Year Results
(Dollars in Billions)
Consolidated New Business Wins
Average Annual
$4.3 Billion New Business Wins
Breakdown (FY 2015)
Lifetime Revenue
$1.3
$1.35
Other
Daimler 3% 6%
JLR 4%
PSA 5%
Ford
26%
VW 5%
BMW 5%
China OEMs
7%
GM
15%
Renault /
Mazda 13%
Nissan
11%
Connectivity
& Telematics HUD
2%
1%
Display 10%
$0.6 (1)
Instrument
Cluster
39%
Non-Core
11%
FY 2013
Actual
FY 2014
Actual
FY 2015
Actual
Audio 18%
Memo:
Lifetime Revenue
N/A
N/A
$4.3
Infotainment
19%
Visteon Won $1.35 Billion in New, Rewin, and Extension Business During 2015 –
Equating to $4.3 Billion in Lifetime Revenue
Page 11 (1) Excludes ex-JCI business.
China Full-Year 2015 Highlights
(Dollars and Units in Millions)
Visteon in China Overview
China Production vs. Visteon China Sales
 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
Winning New Business in China
China Production
Volumes (1)
22.9
24.0
FY 2014
FY 2015
Visteon China
Consol. Sales (2)
$683
$579
FY 2014
Visteon 2015
China sales up
18% Y/Y,
significantly
higher than
overall market,
driven by SVAE
acquisition on
July 1, 2014
FY 2015
Long-Term Production Volume Forecast (1)
FY 2015
China New Wins (Annual)
% of Global Visteon Wins
$275
20%
Memo: Lifetime Revenue
$1,075
# of Product Launches
China Product Launches
20
24.0
25.3
26.2
27.3
28.8
2015
2016
2017
2018
2019
We Project Visteon China Sales to Outpace the Overall China Market
(1) Source: IHS Automotive, February 2016 Forecast. Represents light vehicles only.
Page 12 (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.
Please see appendix for important disclosures
regarding “Forward-Looking Information”
China Footprint
Manufacturing Plants
Changchun
China
Xuzhou
Shanghai
Nanjing
Shaoxing
Chongqing
• 10 manufacturing
facilities
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
• 1 customer service
centers
Shanghai x2 *
•Yanfeng Visteon Electronics
•Shanghai Visteon Automotive Electronics
• Engineering
capability at 4
major technical
centers
Xuzhou *
•Jiangsu Toppower Automotive Electronics
Customer Service Centers
• Visteon Asia Pacific Corporate Office (Shanghai)
Page 13
Major Technical Centers
•
•
•
•
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
* All Visteon Asia Pacific operations are either Visteon wholly owned or through joint ventures
Recent Recognition in China
 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
Customers Continue to Recognize Visteon for Our Technologies and Innovations
Page 14
Singularly Focused on Cockpit Electronics
Head-Up Displays
Cockpit Domain Controllers
Audio
Telematics
Infotainment
Information
Displays
Instrument
Clusters
One of the largest cockpit electronics suppliers – and only one focused on electronics
Page 15
Automotive Electronics Satisfaction Drivers
Impact on Satisfaction from In-Vehicle Technology
Aligns with Key Visteon Products
Comfort and Convenience
• Climate Controls
• Customization /
Personalization
• Touch Screen Display
ADAS*
9% Entertainment
and
Connectivity
Comfort and
(Infotainment)
Convenience
29%
26%
Navigation
15%
Navigation
• Factory Installed Navigation
• Smartphone Navigation Vehicle Interface
Infotainment
• Android Auto / Apple CarPlay
• Radio
• Rear Seat Entertainment
Driver
Information
21%
Driver Information
• Head-Up Displays
• Instrument Clusters
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
Page 16
Source: JD Power.
* Advanced Driver Assistance Systems
Key Trends Impacting Auto Electronics
Connected Car
Near-Term
Mid-Term
Long-Term
2015-2020
2020-2025
2025-2030
 75% of new cars connected by
2020
 Embedded 3G/4G connectivity
 Wider acceptance of CarPlay
& Android Auto solutions
 Demand for connected
infotainment solutions
 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
 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
Autonomous Driving
Shared Mobility
Three Key Mega-Trends Expected to Drive Significant Changes in the Automotive Industry
Page 17
Instrument Clusters
Strengths
 Visteon is #3 in the market
 Strong presence in all segments,
including motorcycles
 Wide range of display technologies and
graphics capabilities
2015 Market Share
Denso
17%
Visteon
16%
Conti
26%
Nippon Seiki
10%
Other
6%
Bosch
4%
Page 18
Delphi
5%
Yazaki
6%
Marelli
7%
Head-Up Displays
Strengths
 First to market with combiner HUD in
2009
 Reusable picture generating unit (PGU)
/ kinematics modules
 Augmented reality optical solutions
2015 Market Share
Denso
15%
Conti
19%
Visteon
6%
Bosch
5%
Yazaki
3%
Alps
3%
Pioneer
1%
Nippon Seiki
47%
Page 19
JVC
1%
Information Displays
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
2015 Market Share
Other
23%
Visteon
26%
Valeo 3%
Marelli 3%
Alpine 3%
Kyocera 3%
Conti
15%
Sanyo 4%
Innolux 4%
Page 20
Desay
4% Sharp
5%
Bosch
7%
Infotainment
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
2015 Market Share
Clarion
5%
Conti
4%
Panasonic
3%
TomTom
3%
Marelli
3%
LG
3%
Visteon
3%
Aisin
5%
Other
13%
Mobis
6%
Ford
6%
Denso
7%
Harman
13%
Mitsubishi
7%
Bosch
9%
Page 21
Alpine
10%
SmartCoreTM
Strengths
 Industry-first automotive grade cockpit
domain controller solution
 In-house development of hypervisor
technology
1 2
3 4
 Opportunity to save $175* in total cost
of ownership per vehicle for mid-range
cockpit ECUs
Four Separate Systems
1
2
3
4
Page 22
Infotainment
Instrument Cluster
Head-Up Display (HUD)
Advanced Driver Assistance
Systems (ADAS)
* Source: RolandBerger Consolidation in Vehicle Electronic Architectures, July 2015.
Strategic Imperatives
Strengthen
the Core
Audio
Head-Up Displays
Information Displays
Infotainment
Instrument Clusters
Telematics
Move Selectively to
Adjacent Products
Deliver Cost
Efficiencies
Cockpit Domain
Controllers (SmartCore )
Next Generation Safety
Applications
(e.g. V2X / V2V)
Vehicle Cyber Security
Drive to 12% EBITDA
Margin
Achieve SG&A and
Engineering Efficiencies
Improve Free Cash Flow
Optimize Capital
Structure
TM
Focused on Three Strategic Imperatives –
Strengthen the Core, Move Selectively to Adjacent Products, Deliver Cost Efficiencies
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www.visteon.com
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